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LG Chem to build $300M plant near Holland
3/12/2010
By JOSEPH SZCZESNY
Of The Oakland PressTroy-based LG Chem/Compact Power Inc. plans to build a new $300 million plant near Holland in western Michigan.
Jae Ham, senior vice president of LG Chem, said Friday that the groundbreaking for the 650,000-square-foot facility is now scheduled for this summer.
LG Chem estimates that more than 400 jobs could be created by 2013 and many of the people will be hired and trained in advance of the plant being operational.
The new plant will be financed in part from a $151.4 million grant the company received from the U.S. Department of Energy as part of the Recovery Act Award for Electric Drive Vehicle Battery and Component Manufacturing Initiative. LG Chem also will make a $151.5 million investment in the facility.
“LG Chem’s selection of Holland to house the company’s battery cell facility was a balanced decision based on the city’s excellent infrastructure and proven, quality workforce,” Ham said.
“What’s more, LG Chem was impressed with Holland’s outstanding determination and sincere effort and commitment to be at the forefront of the new green energy economy that will result in Michigan becoming the leader in the electric vehicle industry,” Ham added.
The plant will be operated by LG Chem’s North American subsidiary and at its peak, the plant is expected to produce enough cells for 50,000 to 200,000 vehicle battery packs.
Until then, GM is expected to use power cells made by LG Chem in South Korea. The cells, however, will be integrated into battery packs assembled at the new manufacturing plant GM opened in January off I-75 in Brownstown Township.
“Thanks to a bold vision and aggressive strategy, Michigan is now the leader of the U.S. advanced-battery industry,” Gov. Jennifer Granholm said.
“We thank LG Chem for its commitment to our state, and we are proud to partner with the company, the city of Holland and the Obama administration to grow a new industry and new jobs here,” she said.
Granholm said an incentive package from the state — which included a $100 million advanced battery cell tax credit, a 15-year job-creation tax credit worth $25.2 million, a Renaissance Zone designation and job-training assistance — helped Michigan seal the deal and win the new battery cell facility over competing national and international sites.
With revenue of $13.6 billion in 2009, LG Chem Ltd. is Korea’s largest chemical and rechargeable battery maker in terms of both size and performance.
Compact Power Inc. is a North American subsidiary of LG Chem and was organized in 2000 with the goal of becoming the supplier of choice for lithium-ion battery technology to the automotive industry.
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