Key Safety Systems Inc. plans to expand its headquarters in Sterling Heights, Mich., and hire 50 employees.
The automotive seatbelt and safety systems supplier is expected to invest $1.5 million in the expansion, which includes building upgrades such as HVAC improvements and a new parking lot, according to a Michigan Economic Development Corp. memo.
The project is supported by a $200,000 performance-based grant from the Michigan Strategic Fund.
Key Safety, which was acquired by China's Ningbo Joyson Electronic Corp. for $920 million in June, is a bidder for troubled airbag supplier Takata Corp. It has in-house plastics production for components within both its airbag and seatbelt for the global auto industry.
Other suitors for Takata, the Tokyo-based supplier of seatbelts and airbags include Daicel, a Japanese manufacturer of airbag inflators that's jointly bidding with private equity firm Bain Capital; Urbana, Ill.-based supplier Flex 'N Gate and Swedish airbag maker Autoliv Inc., according to Bloomberg reports and a source familiar with the matter.
Takata, whose subsidiary TK Holdings Inc. is in Auburn Hills, Mich., is floundering under the biggest recall in automotive history. As many as 100 million vehicles worldwide may ultimately be recalled due to faulty Takata airbag inflators linked to 16 deaths and more than 100 injuries. The airbag inflators reportedly can explode, shooting shrapnel into the vehicle's interior.
In September, Takata succeeded in selling its Pontiac, Mich.-based interiors subsidiary, Irvin Automotive Inc., to Redford Township-based Piston Group for $175 million. Irvin produces multiple interior parts using plastics.