LIVONIA (WWJ) – A big business move will mean job cuts at a metro Detroit-based manufacturer.
A123 Systems, a maker of lithium-ion batteries, announced Monday that it will build a new $40 million headquarters complex in Novi. The new campus will include an engineering center, manufacturing plant and lab.
A123 plans to move its employees to Novi from leased space in Livonia and Romulus next year. The company says the consolidation will lead to the loss of about 200 manufacturing jobs in those cities.
“We are making a commitment to a continued significant presence in Michigan, in proximity to the skilled and experienced talent here,” said Jason Forcier, Chief Executive Officer of A123 Systems, in a statement.
“This new complex meets future needs by becoming our epicenter of engineering. It will allow us to grow our engineering workforce and bring testing inside, that has previously been done outside the company. In addition to our corporate staff and our engineering group, we will maintain manufacturing capability for systems assembly to meet the demands of the U.S. marketplace as they continue to evolve.”
The company expects to begin construction in the third quarter of 2017 and begin to move into the new Novi complex by the end of 2018.