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LG to Open Auto Parts Plant in Michigan for Electric Car Parts

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LG Electronics said Tuesday it will spend $25 million to open a U.S. plant for manufacturing electric vehicle components.

The 250,000-square-foot building is located in Hazel Park, Michigan, a suburb of Detroit. When it opens next year, the plant will create at least 292 jobs in Hazel Park and an expanded research and development center in nearby Troy.

The Michigan government is providing a four-year, $2.9 million capital grant for the project.

“LG’s initiative to develop and produce world-class EV components in the United States represents a key pillar of our strategy to be the best technology partner to U.S. automakers,” said Ken Chang, head of the LG Vehicle Components North American Business Center.

LG said vehicle components are the company’s fastest-growing business. Auto-related revenue jumped 43% year-over-year to $1.5 billion during the first half of 2017, driven by LG’s supplier agreement with General Motors (GM) for the new Chevrolet Bolt electric vehicle.

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