As published in Toledo Business Journal - October 1, 2016

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Innovation wins new jobs in Adrian

Growth leads to $23M+ plant expansion

Inteva Products, a large employer headquartered in Michigan, will add over a quarter more employees to its workforce and expand operations at its manufacturing facility in Adrian.

Innovation wins OEM contracts

The expansion will take place over the next few years to support new OEM automotive program contracts recently awarded to Inteva for interior components and systems.

According to the company, Inteva has utilized innovation, advanced technology, and strategic positioning to win new business.

The Tier 1 auto supplier has focused on high-value design to develop and produce components, modules, and systems that improve efficiency and product quality and that reduce costs for its OEM auto manufacturer customers.

Instead of assembling hundreds of individual parts as a chassis rolls down the production line, auto manufacturers want to work with Tier 1 suppliers who can provide modules and systems that are delivered already assembled, easily sequenced with other components and modules, and often in a just-in-time approach. They are awarding new contracts to the suppliers that can meet their stringent requirements in this area.

Inteva’s focus on the design and development of modules and systems and its successful use of innovation and technology has been aimed at this critical need in the industry.

In addition, in its automotive interior systems business, Inteva has been successful in offering customers innovative materials and production processes that also reduce the environmental impact at customer facilities.

The company has also employed a strategic service approach involving its interior systems business that includes close design development work with its customers and systems integration support. Inteva also provides supply chain management capabilities that bring important benefits as part of this strategic service approach.

Inteva’s success has resulted in new business and growth and a resultant need for expansion.

Economic development support

To assist the company’s growth, the Michigan Strategic Fund (MSF) board approved a $1.27 million economic-assistance incentive to assist the auto supplier to renovate its current facility and add up to 127 new jobs in Adrian. This comes in the form of a performance-based Michigan Business Development Program grant. As part of the updates, Inteva will invest $23.3 million in new equipment and machinery at the plant, according to information provided by Kathleen Achtenberg, Michigan Economic Development Corporation (MEDC).

“To compete in today’s economy, we must build strategic partnerships like this one with Inteva,” said Adrian Mayor Jim Berryman. “This agreement between the Michigan Strategic Fund and Inteva preserves jobs in Adrian and Lenawee County, and sends a message that Michigan is serious about maintaining its reputation as a great place to do business.

New jobs

“Currently, Inteva employs 474 people at the Adrian site and 331 at its headquarters in Troy. The new jobs in Adrian may add approximately 27% more workers at the site with an initial 77 jobs created in the near future. As part of the agreement, the City of Adrian will host a job fair to attract prospective employees.

The majority of the new jobs will be located at Inteva’s 980,000-square-foot manufacturing facility in Adrian, Michigan. The Adrian facility manufactures instrument panels, door modules, door trim panels, and other interior parts. New technical and professional positions will be added at the Inteva World Headquarters in Troy, Michigan to support the new contracts.

“We are pleased that we are able to bring this new business to Michigan,” said Inteva CEO and president Lon Offenbacher. “Further growing the size of our Michigan workforce, while significantly upgrading our facilities, is not only an investment in the future of our company but an investment in the future talent in this state. We are grateful to the MEDC for its support.”

Corporate growth

Inteva has more than doubled its Michigan workforce over time. When it was founded in 2008, the company had fewer than 400 employees in the state. Today, the global supplier employs more than 800 Michigan men and women.

Inteva makes products for a range of customers, including top-tier automotive manufacturers. In addition to supplying the auto industry, the company provides highly engineered components and systems to the defense, consumer, and other markets. 

“Inteva is among those essential businesses in Michigan that provide excellent products and have grown along with the State’s manufacturing and automotive industries,” said Steve Arwood, MEDC CEO.

On behalf of the MSF, the MEDC administers programs and performs due diligence on grants, loans, collateral agreements, and approved funds. In addition, the MEDC is the State’s chief marketing agency engaged in business attraction and retention efforts.

Collaboration

“This project is a reflection of the high level of collaboration and teamwork with all our partners, including the City of Adrian, MEDC, Michigan Works! (SE), and Consumers Energy in winning this successful outcome for our community and our State,” said Lenawee Now executive director, Jim Van Doren.

“From the old Fisher Body plant to the Inteva plant today, Adrian automotive plants have contributed to our region, our State, and our country’s success,” said Senator Dale Zorn, who represents Michigan’s 17th Senate district, which includes Adrian.

“This incentive and the overall expansion project illustrate the investment people are making in Adrian, and I applaud the local leaders and Inteva officials for working together to make this project a reality,” he said.

“Consumers Energy worked to provide solutions to Inteva Products’ energy needs as it considered updating its building, and we are pleased by Inteva’s decision,” said Garrick Rochow, senior vice president for distribution and customer operations. “We are committed to Michigan’s economic future and look forward to working with other employers that plan to locate or expand in our state.”

Inteva employs over 15,000 team members in 18 countries. Inteva World Headquarters is in Troy, Michigan.