Search
 

New $35-Mil Plant Will Ease Auto Supplier Costs

CHESTERFIELD, MI-Ogura Clutch Co. of Japan will use the new 176,000-sf facility to handle the raw material it needs to handle specialized welding, brakes and clutches.

By Robert Carr | Updated on October 22, 2001

CHESTERFIELD, MI-A company that creates special welds and metal forges for the automotive industry is expanding into Chesterfield Township in order to stay competitive. The new 176,000-sf plant will handle the raw material for Madison Heights-based Huron Precision Parts Corp., which does precision welding and forging for Ogura Clutch Co. of Japan. Huron is a division of Ogura.

Zaki Bekheet, director of manufacturing, engineering and special projects for the company, says the downturn in the economy requires the company create its own supply routes. “This plant is going to provide room for our raw materials for Ogura’s consumption. We’d rather buy our raw material from the inside, through vertical integration,” Bekheet tells GlobeSt.com.

“Right now the pressure is very high by the automotive companies for suppliers to cut costs and make concessions. There’s no other way for us to survive without buying from ourselves,” Bekheet says. Detroit area automotive companies have posted decreased earnings for the third quarter and have told suppliers that orders will be slowing down.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.