DETROIT -- Johnson Controls Inc. spinoff and soon-to-be new public company Adient Ltd. is doubling down in the Detroit area.
The world's largest automotive seating supplier will transition its operational headquarters from Milwaukee to metro Detroit in the coming months, said CEO Bruce McDonald. Adient is tax domiciled in Dublin, Ireland, but the majority of its C-suite will be based in this area.
McDonald and his team will be located in a new office that the supplier is expected to secure in the next two months. Up to 600 employees will be housed in the new office location, including 100 new hires in legal, accounting, audit and treasury, McDonald said.
JCI's automotive seating business has been based in Milwaukee since 1985.
Adient is also renovating its Plymouth offices on Halyard and Sheldon roads, which house about 1,000 employees, McDonald said.
It will list on the New York Stock Exchange under the ticker ADNT on Monday, Oct. 31.
The company is projecting revenue of $16.8 billion to $17 billion for the fiscal year, which started Oct. 1, and adjusted net income of $850 million to $900 million. By domiciling in Ireland, Adient is expected to save millions in taxes with an effective tax rate of 10 percent to 12 percent.
McDonald said spinning off from JCI frees up Adient to reinvest in its seating business and interiors joint ventures, which had lower margins than JCI's building HVAC and automotive battery units.
"... the other businesses were higher margin businesses, so it made sense to take a dollar of capital out of automotive and put into those other two businesses," McDonald said. "(Historically), the growth engine for JCI was the auto business. The company only constrained it in the last few years. We took the oxygen away. The board of directors and leadership team recognized ... JCI was no longer the best owner of that business."
Since announcing the spinoff last year, Adient has worked to grow its contracts and has secured a $5 billion backlog, which is expected to boost revenue in 2019.
"We're No. 1 (auto seating supplier) by a long shot," McDonald said. "We should be the envy of the industry with our customer mix and we're well-positioned with our strengths."