Battery producer BorgWarner made two announcements of significant expansions to its manufacturing facilities in South Carolina and its home state of Michigan.
BorgWarner announced it will invest $42 million in the expansion of its Seneca, South Carolina facility. In addition to upgrading existing factory capacity, the investment will help fund the expansion of 3 GWh of new battery pack production lines.
The company expects to add 122 new jobs across production, technical support, manufacturing, engineering, maintenance, and supporting function roles over a three-year span as a result of the investment. Expansion projects are slated to begin in Q2 2023, with expected completion in the first half of 2024.
The battery producer said it worked closely with the State of South Carolina and Oconee County for approval of the expansion. Volker Weng, vice president and general manager, said the expansion moves the company closer to its goal of enabling lower-emissions transportation.
On the same day as the South Carolina announcement, BorgWarner released a report that said it will invest $20 million to expand the capabilities of three of its existing Michigan facilities, while also adding a new electric vehicle service center. An additional 186 jobs are expected to be created as a result of the investment.
The Michigan Economic Development Corporation granted the company $1.86 million for the project via its business development program.
BorgWarner said the project will accelerate development, manufacturing and testing of EV products and EV charging infrastructure. This includes battery modules and packs, DC fast chargers, and microgrid control and operations devices.
The investment will be split across the three facilities. An Auburn Hills facility will add new electrification labs that will house testing equipment and new research and development areas. The Dearborn facility will expand its footprint by about 7,000 square feet, adding a DC fast charging wing. The new enhancements are expected to double the facility’s production and enable a second shift schedule.
“On top of creating more pathway jobs in the community … we intend to use the grant to expand BorgWarner’s manufacturing capability and presence, enhance volume capacity and grow our cross-functional departments,” said Frédéric Lissalde, president and chief executive office, BorgWarner Inc.
BorgWarner posted a full year 2022 net sales of $1.5 billion, with an adjusted operating margin of 10.1%. It expects earnings to range $1.6 to $1.75 billion in 2023, with a similar adjusted operating margin.
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