Auto supplier Plastic Omnium plans $170M hydrogen investment in Michigan

A subsidiary of French automotive supplier Compagnie Plastic Omnium plans to invest up to $171 million at a pair of sites in Michigan to support a large award from an automaker.

The company is looking into a site in near Flint, Mich., for a 200,000-square-foot plant to produce hydrogen storage systems, according to a briefing memo from the Michigan Economic Development Corp.

Prior to full-scale production, the company aims to lease a 50,000-square-foot existing building for a test lab capable of validating the hydrogen storage systems for road use. The location of that plant is yet to be determined.

The name of the customer and description of the vehicle were not provided. Crain's Detroit Business, an affiliate of Automotive News, inquired with the company for more information.

The operation, expected to support 40,000 vehicles annually by 2027, will create 175 jobs, paying an average wage of $1,710 per week plus benefits, according to the memo.

The project is being supported by a $5 million performance-based grant from the MEDC and a 15-year 100 percent SESA Exemption valued at $2.4 million.

The Michigan Strategic Fund board on Tuesday approved the incentives, which will help offset "the cost disadvantage of locating the project in Michigan" compared to competing sites including Ohio, Indiana and Canada. The grant will address costs associated with acquiring the land in Genesee County and establishing a power supply.

"This project aligns with the MEDC's strategic focus area of supporting a business in the target industry of mobility and automotive manufacturing and builds on the state's work to position itself as the global leader in the future of mobility," the briefing memo said.

Plastic Omnium, based in Levallois, France, ranks No. 30 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $9.7 billion in 2022.