Hi-Lex Controls will be making a huge plant expansion of it's Hudson plant in the near future. The $20 million project will mean a plant expansion of 70,000 square feet and add an estimated 162 jobs -- double the current work force -- to the company's Hudson plant. Construction is hoped to begin in October. It was announced earlier this summer that Hi-Lex was planning an expansion, but where was in question. Hudson and an Ohio location were under consideration by the company. Within the past month it was felt that Hudson would be the likely location, if the Michigan Economic Development Corporation (MEDC) would award a grant clearing the way for the plant. The final piece went into the puzzle Tuesday at a meeting of the Michigan Economic Growth Authority, attended by Hi-Lex officials, along with Interim Hudson City Manager Kim Murphy and Lenawee Tomorrow director David Munson, among others.  As a result, the state awarded Hi-Lex  a Single Business Tax credit valued at more than $1.2 million over seven years and a $120,000 Economic Development Job Training grant to help win the company’s investment. This money will be shared with a smaller expansion of the company's Litchfield plant. Murphy told the Hudson City Council Tuesday evening that as a result, the city will also be the recipient of a $1 million state Community Development Block Grant for the purpose of installing a half million gallon elevated water tank in the industrial park, a key to the development. In addition, the Hudson Local Development Finance Authority (LDFA), which is funded from the capture of increased tax revenues at the Industrial Park, has committed a total of $300,000 to the project. $122,000 will go to the water tank, and $175,000 will be spent to extend lighting and road improvements to a point 525 feet south of the current road ends. The LDFA and the Michigan Department of Transportation will also work to improve highway signage in the area. "There are no funds being committed from the General Fund or from the City Income Tax," Murphy commented to the Council. 

Earlier this month, Council approved a  $438,655 Industrial Facilities Tax Abatement on a total taxable value of $82,444,912 over 12 years, one of the keys to the decision to locate the plant here.

"Hi-Lex Controls is pleased that the MEDC and our local communities have partnered again with us to ensure that current jobs will stay in Michigan, and more importantly, bring new jobs into Michigan,” Hi-Lex Controls Director of Finance John Flack said. “We believe that Tier one automotive suppliers can be competitive in Michigan when business, state and local governments work together for the common cause of maintaining and creating jobs. These continuing partnerships will help ensure a bright employment future in Michigan.” Hi-Lex Controls was founded in 1989. The U.S. parent, TSK of America, is owned by Hi-Lex Corporation, a global company based in Takarazuka City, Japan. Hi-Lex Controls currently employs approximately 650 at its Hudson and Litchfield facilities. The company also employs more than 80 engineers and sales staff at its technical center in Troy. 

“Today’s announcement is a tangible result of the strong partnership between local communities and the MEDC,” Lenawee Chamber for Economic Development President and CEO David Munson said. “The MEDC helped attract TSK (a subsidiary of Nippon Cable System) to Michigan many years ago. The Michigan company changed its name to Hi-Lex and has been so successful here that the parent company and its worldwide operations are now also known as Hi-Lex.” Plans call for the plant floor to be expanded, with additional shipping and receiving docks at a cost of $4.9 million. $15,704,220 in new equipment will manufacture automotive window regulators. The expansion will be the third module line at Hudson and will be used in Dodge Ram pickups. The module and control system will be attached to Plexiglas in Hudson and shipped to the manufacturing facility in Toledo where it can be attached to the truck during assembly. "This will be great for the community and all Hi-Lex employees, along with all future employees," said Hi-Lex plant director Annette Frederick.

Murphy said that there had been a great deal of work done by city staff over the past month to clear the way for the project.

Councilman Jim Steele commented that this was a big feather in the caps of Murphy, former City Manager Bruce Van Wieren, city staff, Munson and many others.
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