Source: Sherman Publications

MSP to expand thanks to Honda contract

by CJ Carnacchio

October 03, 2012

Some good economic news is finally on the horizon for Oxford Township as one of its existing industrial facilities will be expanding, meaning additional tax revenue for the municipality and more jobs for those seeking employment.

Plans are in the works for a 6,000-square-foot addition to MSP Industries (45 W. Oakwood Rd.), owned by the Detroit-based American Axle & Manufacturing (AAM), according to a source close to the situation who did not wish to be identified.

This source indicated the addition will allow MSP Industries to begin manufacturing automotive components for Honda and hire up to 30 skilled trades workers.

Some existing equipment at MSP Industries will be moved into this addition so as to free up floor space inside the plant for production of parts for Honda.

“(The parts are) going to be used in two cars and they were extremely excited about that because the two cars are big sellers for Honda,” the source said.

No plans for the facility addition have been submitted to the township for its approval at this time.

Chris Son, a spokesman for AAM, confirmed that AAM will be doing some additional work for Honda, but he could not divulge any specifics about the future situation at MSP Industries.

“It’s our first award with Honda, so it’s definitely an important contract for us,” Son said. “Honda, for AAM, is a key customer that will help us continue to diversify our business.

“We haven’t really talked about the specifics as it relates to additional capacity requirements associated with adding a new program. We have mentioned that we have a new program award with Honda. That’s the extent that we’ve commented on it.”

“We don’t typically comment too much about it one, in terms of the timing and two, in terms of the facility that it’s going to be loaded into until we actually get into the launch,” he explained. “The launch is not around the corner, so it would be premature for me to get into the specific details . . . It’s planned to be launched within our 2012 to 2014 new business backlog, so it’s not this year. It’s more than likely in (the) 2013-2014 time frame.”

Son said he can confirm that “there will be additional capacity requirements associated with the Honda program.”

“Putting new business in MSP does more than likely require additional capacity or an expansion there,” he said.

“As it relates to the number of additional associates (i.e. workers) required, I do not have confirmation of that,” Son noted.

Son did release information regarding exactly what AAM is going to be manufacturing for Honda.

It will be forging fixed and slide pulley components “for a future passenger car program,” he said.

According to the AAM website, these types of components are used as part of a continuously variable transmission.