Technology investments drive jobs to Sterling Heights

 

By Terry Oparka

C & G Staff Writer

     In an effort to provide the automotive industry with leading-edge technology, three local companies plan to invest more than $3 million for new equipment at their Sterling Heights facilities, which will bring 18 new jobs to the city.

     The Sterling Heights City Council unanimously approved $132,000 in tax abatements to U.S. Farathane Corp., Richcoat, and Acra Grinding.

     Tim Richardson, president of Richcoat, said he planned to install $677,000 worth of equipment that will chemically harden aluminum spool valves for the new six-speed transmission for Ford Motor Company. Richardson told the council that the equipment would serve a two-fold purpose: to clean air for his employees working inside the plant and to clean the air before it’s discharged into the atmosphere.

     City Assessor Matt Schmidt said the total tax abatement for Richcoat was $28,385 over six years and would result in an additional $6,315 on city tax rolls.

     Acra Grinding plans to invest almost $2 million in three centerless grinding machines to manufacture spool valves for the new six-speed Ford transmission, which will then be treated by Richcoat. Acra Grinding received a total tax abatement of $79,968 over six years and will result in an additional $17,790 in city tax revenue.

     Although U.S. Farathane Corp. qualified for a six-year abatement — based on $576,000 investment in a new 500-ton Platen machine and material handling robot to produce a two-piece windshield wiper enclosure for the 2006 Chevy Impala — the lease on the current facility is up in five years, so the company must request an abatement for an additional year after a new lease on the Sterling Heights facility is signed, said Sterling Heights Councilman Richard Bracci.

     The council granted U.S. Farathane a five-year total tax abatement of $23,807, which will generate an additional $5,296 in city taxes.

     The investments will result in four new jobs at U.S. Farathane, eight at Acra Grinding, and six at Richcoat.

     You can reach Terry Oparka at toparka@candgnews.com