Demand for its line of reusable and collapsible pallet containers has led Perstorp Xytec Inc. to set up a plant in Detroit's Empowerment Zone. The company plans to rehabilitate a 52,000-square-foot building in the zone, an 18-square mile area in central Detroit that is the focus of programs for industrial redevelopment.
The company makes a wide range of industrial containers, including the Xytec-brand high density polyethylene collaps-ible containers used extensively in automotive and other industrial settings to bear assembly line parts. The plantwill include manufacturing, warehousing and distribution space, as well as a container washing and repair line. The Detroit plant will allow the Tacoma, Wash., company to move production nearer to some of its automotive and industrial customers.
``Quite a bit of work needs to be done on the site, and there are several buildings on the property which need to be torn down,'' said Jennie Culver, a spokeswoman for Perstorp Xytec. ``It would be fair to say it will be at least six months before the plant would be close to complete, if not more.''
Working with the Michigan Jobs Commission and the Detroit Economic Growth Corp., the company is eligible for labor training tax incentives, property tax rebates and capital access opportunities through local financial institutions for locating in the empowerment area. The company received site selection and acquisition help, regulatory approvals, infrastructure upgrades and assistance with employee recruitment and training.
Besides the Detroit development, the company recently installed a 750-ton Wilmington structural foam molding machine at its Tacoma manufacturing facility. The machine is the eighth at the Tacoma site.
Together, the improvements will increase the company's capacity by about 60 percent, though Culver declined to give current capacities or an overall project cost. Perstorp is the first out-of-state company to locate in the empowerment zone.