Auto manufacturer plans to move 250 jobs to Ypsilanti's ex-Visteon plant by July
The northeast portion of the former of the former Visteon Plant located at the intersection of Spring Street and Grove Road would be the first segment reactivated.
Tom Perkins | For AnnArbor.com
The company that bought the former Visteon Plant in Ypsilanti is hoping to move 250 to 300 employees to the site by July after renovations to the 35-acre property.
The Ypsilanti Planning Commission has approved the first phase of a three-phase site plan that will allow Taylor-based Angstrom USA to start operations at the facility it purchased from Ford-controlled Automotive Components Holdings in 2009 for $2 million.
Angstrom, a global precision tube manufacturer, builds precision needle bearing assemblies, driveshaft assemblies and other tubular assemblies for auto companies. The company plans to consolidate its operations at the Ypsilanti site.
According to an overview of the site plan, the company could add up to 1,000 jobs by 2012. City Planner Teresa Gillottisaid that final figure depends on Angstrom's growth. Angstrom officials declined to comment.
The facility is located south of downtown between I-94 and Spring Street. The site plan calls for improvements to start at the property's northernmost building.
The first phase of the parcel’s three-phase renovation will include incremental reactivation of several buildings and the construction of an atrium to connect two buildings that will function as Angstrom's entrance.
"They're actually transforming it in a lot of ways from a standard industrial plant to a corporate headquarters," Gillotti said. "They're really trying to do a nice job and cleaning up the site.
"It's a big investment and it's exciting," she said. "It shows a commitment on their part."
All three phases could be completed by 2015, and the city will approve a new site plan before each phase. Gillotti said there currently is no timeline on when Angstrom would reactviate the other two parcels comprising the property. That also depends on the company's growth.
Angstrom purchased the building from ACH after it acquired the facility from Visteon in 2005. Visteon and Ford established ACH as a holding company for Visteon's less profitable operations.
In 2008, city records listed the state equalized value of the Ypsilanti property at $9,290,300, meaning the true cash value would be upwards of $18.4 million before the facility closed that year. The listing price was $7.25 million, a price that translated to $7.24 per square foot, and city records show a sale price of $2 million.
As part of the purchase agreement, ACH demolished roughly 250,000 square feet of the 1 million square foot building on the property’s southwest corner throughout early 2010. That area, which used to hold a power plant, will now include parking and landscaping, Gillotti said.
Angstrom has a separate contract with Ford Environmental Quality to remediate the site’s soil and groundwater. Parts of that work is expected to take another four years.
"It's nice that Angstrom has that deal," Gillotti said. "Ford has done a lot of work on the site. They're reorienting it so Angstrom can do everything they need on it."
Comments
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Mon, Feb 21, 2011 : 7:14 a.m.
"....at the facility it purchased from Ford-controlled Automotive Components Holdings in 2009 for $2 million." And how much are Ypsilanti home-owners now on-the-hook for the failed Water Street project? Similar size properties, and Ypsi is now stuck with a "$30 MILLION dollar bill." The disparity in prices leads one to ask, misfeasance, malfeasance, or just plain stupidity????
blahblahblah
Sun, Feb 20, 2011 : 6:23 p.m.
Great news! That site offers the company good visibility along I-94 too. Just wondering however where these transfered jobs are coming from? Will these be new jobs for the state of MI or just transfers from another part of the state?
Craig Lounsbury
Sun, Feb 20, 2011 : 7:06 p.m.
according to their web-site complete with what I think is one of the grammatical errors they say: "Personnel: Over 35 non union work force with 8 Engineers" So who are the other 215-265 workers that will get them to 250-300?
Tom Perkins
Sun, Feb 20, 2011 : 6:54 p.m.
Initially they are transferring their employees from Taylor.
John B.
Sun, Feb 20, 2011 : 4:53 p.m.
I think the property value / Tax numbers show why municipalities don't want to lose major facilities (like this one was)! A property was being taxed based on a perceived value of $18 Million. Then it was listed for $7.25 Million, and purchased for $2 Million. Even that selling price required Ford to tear down part of the facility and agree to some other future soil and water remediation work there. If the new owner paid $2 Million for the property, then I assume the current market value for Taxation (or any other) purpose is $2 Million. How could it be larger? As they improve the property, that will increase, but it's still a big reduction from the prior 'value.'
Craig Lounsbury
Sun, Feb 20, 2011 : 2:46 p.m.
"In 2008, city records listed the state equalized value of the Ypsilanti property at $9,290,300, meaning the true cash value would be upwards of $18.4 million before the facility closed that year. The listing price was $7.25 million... city records show a sale price of $2 million." Why do I smell trouble brewing? Once upon a time that was a Ford plant running 3 shifts a day 6-7 days a week and I would imagine a major contributor to the City tax coffers. I hope the City and Angstrom USA can reach a mutual agreement on a fair tax value.
snoopdog
Sun, Feb 20, 2011 : 2:40 p.m.
Fantastic news, a major win win for Ypsi and Angstrom USA. Good Day
Lovaduck
Sun, Feb 20, 2011 : 8:11 p.m.
I agree. That poor city and Township has been suffering so long!
Craig Lounsbury
Sun, Feb 20, 2011 : 2:08 p.m.
I grew up in Ypsilanti and wish the best for this venture. But reading through the Angstrom USA website I can only hope they are better at making and selling parts than they are at what seems to be in-house web design. Their web site is frighteningly amateurish and appears to be riddled with punctuation and capitalization errors. I will say, I was not an English major when I was in school many years ago. So, I will defer to our experts to either confirm, or refute what I think I see.
Craig Lounsbury
Sun, Feb 20, 2011 : 3:40 p.m.
I may be nitpicking l but it looks like a web-site a dog groomer or a lawn mowing services might throw together. The difference is, these folks are manufacturing precision components for complex machines in, presumably, multi million dollar contracts. I think it would be in their own best interest to spring for an error free professional web-site.
ILJ
Sun, Feb 20, 2011 : 2:23 p.m.
Yikes! You're right, that Web site does not inspire a lot of confidence in the company. Super duper amateurish.
Edward Vielmetti
Sun, Feb 20, 2011 : 1:46 p.m.
@mac - from <a href="http://www.angstrom-usa.com/" rel='nofollow'>http://www.angstrom-usa.com/</a> "Founded in 1999, Angstrom currently supplies Driveshaft tubes, Stabilizer bars, Structural tubes, Spacers, Cyclinder tubing, Fuel and Exhaust transport tube applications to virtually all OEMS as Tier-1 and Tier-2."
braggslaw
Sun, Feb 20, 2011 : 1:42 p.m.
Great for the region. It sounds like they are a metal extrusion company. "Angstrom, a global precision tube manufacturer, builds precision needle bearing assemblies, driveshaft assemblies and other tubular assemblies for auto companies. The company plans to consolidate its operations at the Ypsilanti site. "
dading dont delete me bro
Sun, Feb 20, 2011 : 1:19 p.m.
sweet! thought they were supposed to be in there already?!?
mac
Sun, Feb 20, 2011 : 12:56 p.m.
Nice article and 250 jobs is a great boom for Ypsi. I would like to know what Angstrom is. nothing in the article tells me what they manufacture?, are they a tier 1,2,3 supplier? Is this still automotively related. I don't work in manufacturing so maybe this is common knowledge for most but I googled Angstrom and they are involved in everything from pharmaceutics to hydrogen cell technology.
Tony Dearing
Sun, Feb 20, 2011 : 2:03 p.m.
mac, the article includes a ling to the Angstrom website and here's a link to an earlier story that has some information about the company and its purchase of this plant: <a href="http://www.annarbor.com/business-review/ypsilantis-former-visteon-plant-sold/">http://www.annarbor.com/business-review/ypsilantis-former-visteon-plant-sold/</a>