Fortune 200 automotive supply company Adient announced Wednesday that it would be moving its corporate headquarters to the Marquette Building in downtown Detroit’s historic financial district. Adient was recently created as an independent offshoot of Johnson Controls, a multinational technology corporation based in Milwaukee, Wis.
The company will bring 500 jobs to the city, 100 of which will be newly created after the completion of the move, according to a press release. Adient plans to invest $98 million in Detroit in total, $75 million of which will be directed toward the acquisition and renovation of the Marquette Building.
The Marquette building renovation process is expected to last 24 months.
In a press release, Steve Arwood, Michigan Economic Development Corporation CEO, said Adient will be moving to a city that has both a long history with the automotive industry and an active role in shaping its future.
“Adient’s decision to locate its operational headquarters in Detroit is both strategic and symbolic,” the press release read. “We welcome Adient and appreciate their long-term commitment to the economic viability of Detroit and to being a key player in the automotive industry in Michigan.”
Adient is already involved in several other areas of Michigan. It currently has research and development operations in Plymouth and serves as the corporate sponsor of one University of Michigan undergraduate design project for a upcoming multidisciplinary design expo.
The team, composed of four mechanical engineering students, will work with Adient to design a mechanical closure for an automotive seat track. Engineering senior Mallik Guduguntla, a member of the team, said he thinks the inflow of companies into Detroit and Michigan in general provides a strong boost in development efforts and ability to grow.
“I’m really glad companies are continuing to invest and grow Detroit into the powerful city it once was,” he said. “Bringing corporate headquarters and jobs back to Detroit will improve infrastructure, restaurants and residential options. Entering college five years ago, I never thought of living in Detroit but now it may be happening.”
Due to its choice to move to Detroit, the company will receive about $2 million from the Michigan Business Development Program to invest in new job creation. The MBDP is part of the Michigan Economic Development Corporation, which provides grants or loans to businesses for projects that will generate new jobs or investment.
Adient’s operation in Detroit is expected to earn the city approximately $17.2 million in net income and property tax over the next 12 years. The company will be the fourth Fortune 500 company to have their headquarters located in the city, and is the first to move into Detroit since 2003.
The seating supply company evaluated 40 different locations in and outside of Michigan before choosing to settle in Detroit. Detroit Mayor Mike Duggan noted in a press release that this decision indicates a positive trend in economic growth due to the influx of businesses.
“Adient’s decision to choose Detroit from among a large field of competitors to base its global headquarters is another major vote of confidence in where we are headed as a city,” he said.