Chinese injection molding toolmaker and molder Wellmei Holding Co. Ltd. plans to invest $1.9 million and create 71 jobs by establishing its first North American manufacturing operation in Troy, Mich.
The subsidiary, Wellmei U.S. Inc., plans to lease 20,000 square feet to 40,000 square feet of space to accommodate production of molds as it builds plastic injection molding lines to serve the automotive and medical industries, according to a Michigan Economic Development Corp. memo.
The Dec. 15 memo also states that the company also is negotiating for a site in Ohio rather than Michigan.
The state did not immediately identify the location of the Wellmei plant. The city of Troy will not offer a property tax abatement as part of the project, but the state is supporting the effort with a $355,000 performance-based grant through the Michigan Strategic Fund.
Dongguan, China-based Wellmei specializes in inject mold tooling for the auto and appliance industries, with molding production for mold tryouts. It wasn't immediately clear if the Michigan site would solely do mold making or molding. It has about 500 employees.
The expansion is required due to growing sales in North America, and to circumvent tariffs the U.S. has placed in the import of Chinese products.
Under President Donald Trump, the U.S. has installed tariffs on $250 billion worth of Chinese goods and Beijing responded with its own levies on $110 billion worth of U.S. goods. However, late last year, the countries agreed to a temporary ceasefire on new escalations if they can broker a trade deal by March.