Chrysler Group has celebrated the start of construction of a new paint shop at its Sterling Heights, Michigan, assembly plant (SHAP). Last October, Chrysler announced an $850m investment in SHAP and two local stamping plants.

Expected to be completed by the end of 2012, the 500,000 sq ft paint shop signifies a turning point for a plant whose future was uncertain two years ago.

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“SHAP was scheduled to close by the end of 2010 as part of the court-approved reorganisation of Chrysler,” said Chrysler Group’s head of assembly operations Fred Goedtel. “But now, 24 months later, we are celebrating a remarkable success story. A story that can be written thanks to the collaboration of industry, government and labour.

“With a new paint shop and the commitment of more than 2,300 employees, this plant is poised for a bright future producing the next generation of Chrysler Group products,” added Goedtel.

In addition to SHAP, some of the $850m will also be invested in the two area stamping plants in Sterling Heights and Warren.