Sign of the times: Ford plant to become renewable-energy center

Wednesday, November 18, 2009

By: Daniel Duggan

In a move seen as symbolic of the region's rebirth with a more diversified economy, the 320-acre site in Wixom once used to build cars for Ford Motor Co. will be an energy park focused on production of renewable electrical energy storage systems.

A joint venture between Austin, Texas-based Xtreme Power Inc. and Santa Barbara, Calif.-based Clairvoyant Energy plans to purchase the 4.7 million-square-foot manufacturing space and redevelop it as a new energy park.

The irony of a car factory that had produced some former gas-guzzlers turned into a green energy production park is not lost on Clairvoyant CEO David Hardee.

“It's the ultimate irony; I love it,” he said.

The 50-year-old building will house manufacturing of Xtreme's large-scale power systems and Clairvoyant's solar panels.

Clairvoyant and Xtreme plan a total capital investment of $475.4 million and the creation of 2,500 direct jobs over the next five years, according to a briefing memo prepared by the Michigan Economic Development Corp.

Hardee expects the real estate deal to close in the second quarter of next year.

Clairvoyant plans to create up to four solar panel manufacturing lines at the energy park, with a capital investment of $857 million over four phases, and is expected to create 751 jobs over five years.

Once completed, Clairvoyant will have the capacity to produce more than 2.5 million solar panels a year at the Wixom site, potentially replacing the need for one large coal plant every year.

Xtreme will focus on large-scale systems to store power generated by windmills, solar panels and other technologies.

Redevelopment work is expected to start next year, with manufacturing to be under way by 2011. The companies are looking for tenants to fill the 2.4 million square feet of manufacturing space not being used by the joint venture. Hardee said leases will likely start being signed next year.

The deal was the result of a nine-month negotiation involving Clairvoyant, Xtreme and Ford Motor Co., facilitated by the MEDC.

Hardee said Michigan made sense based on both the involvement of the MEDC and the facility itself.

The Wixom Assembly Plant was one of Ford's largest and oldest manufacturing sites, producing 6.6 million vehicles during its 50 years of operation. 

Production began in 1957 when Wixom became Lincoln Division's new national headquarters and the sole producer of all vehicles for the Lincoln Division. Over the years, Wixom Assembly produced the Lincoln Continental, Town Car, LS, Mark VI, VII and VIII, as well as the Ford Thunderbird and Ford GT. 

At its height, more than 5,000 workers were employed at the plant. The Wixom plant employed approximately 1,000 workers when it closed in 2007.

“The facility has such good bones,” Hardee said. “It puts us one year closer to going to market because the heavy-duty infrastructure is already there.”

 

 

FUTURE OF MICHIGAN

Top Economic Investments in Michigan, 2008-2009

Data provided by the Michigan Economic Development Corp., based on companies receiving MEGA/brownfield incentives in 2008 and 2009, and Crain's list of 2009 Largest Construction Projects. Following are the project descriptions, investments and locations.

• Clairvoyant Energy Solar Panel Manufacturing Inc. + Xtreme Power Inc.: Renewable-energy park on site of Ford Wixom Assembly Plant; $1.33 billion; Wixom

• Hemlock Semiconductor Corp.: Expansion of silicon manufacturing facility; $1 billion; Thomas Township

• University of Michigan: C.S. Mott Children's and Women's Hospital $754 million; Ann Arbor

• Chrysler: Trenton Engine Plant; $730 million; Trenton

• Severstal North America Inc.: Rehabilitate, expand steel facilities; $700 million; Dearborn

• KD ABG MI L.L.C.: Facility for lithium polymer batteries; $665 million; Midland

• A123 Systems: Lithium-ion battery plant, $626 million; Livonia

• Michigan State University: National Superconducting Cyclotron Lab; $550 million; East Lansing

• United Solar Ovonic L.L.C.: Solar panel manufacturing facility; $440 million; Battle Creek

• Beaumont Hospital: Troy site expansion; $420 million; Troy

• Walker Orchard Land Partners Redevelopment Project: Orchard Park development; Cabela's anchor; $400 million; Wyoming

• Henry Ford Health System: Henry Ford West Bloomfield Hospital; $360 million; West Bloomfield Twp.

• MPI Research Inc.: Renovation of former Pfizer buildings; $330 million; Kalamazoo/Mattawan

• McLaren Health Care Corp.: McLaren Health Village; $300 million; Independence Twp.

• General Motors Co.: Powertrain expansion Phase II; $285 million;

Pontiac

• St. Joseph Mercy Hospital: Renovation of hospital; $258 million; Superior Township

• Suniva Inc.: Solar panel manufacturing plant; $250 million; Thomas Township

• Compact Power Inc.: New battery plant for Volt; $244 million; TBD*

• University of Michigan: Michigan Stadium expansion; $226 million; Ann Arbor

• Johnson Controls-Saft Advanced Power Solutions L.L.C.: Hybrid vehicle battery plant; $220 million; Holland

• Phoenix Development Partners L.L.C.: Accident Fund headquarters; $182 million; Lansing

• General Electric Co.: Renewable energy R&D center at Visteon village; $175 million; Van Buren Township

• Henry Ford Hospital: Detroit hospital expansion; $154 million; Detroit

• Unity Studios Inc.: Film production center; $146 million; Allen Park

• College for Creative Studies: Argonaut Building renovation; $145 million; Detroit

• Pinnacle Race Course/Post It Stables Inc.: Horse-racing track; $142 million; Huron Township

• University of Michigan: Kellogg Eye Center and Brehm Diabetes Center; $132 million; Ann Arbor

• Continental Dairy Products Inc.: Dairy processing plant at former Delphi facility; $103 million; Coopersville

• Auburn Financial Center: Office and commercial complex; $100 million; Auburn Hills

• Wonderstruck Studios L.L.C.: Detroit Center Studios, an animation studio at former MGM Grand building; $85.9 million; Detroit

• Farmers Group Inc.: New office and print distribution center; $84.4 million; Caledonia

• City Center Two Project L.L.C.: Mixed-use downtown development; $84 million; East Lansing

• Kaiser Aluminum Fabricated Products L.L.C.: Billet casting and extrusion facility; $80 million; Kalamazoo

• Motown Motion Pictures L.L.C.: Raleigh Michigan Studios, a film production facility; $70.7 million; Pontiac

• Redico L.L.C.: Dearborn Town Center $68 million; Dearborn

• Roskam Baking Co.: Contract food facility in former Steelcase plant; $60.5 million; Kentwood

• Livonia Market Place: Shopping center at former Livonia Mall; $60 million; Livonia

• Eberspaecher North America Inc.: Renovation of after-treatment system assembly plant; $60 million; Brighton

• BAE Land Systems and Armaments L.P.: New research and development facility at former TRW plant; $58.4 million; Sterling Heights

*The two locations in consideration are Holland and St. Clair.

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