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Posted on Tue, Dec 22, 2009 : 6:05 a.m.

Buyer of ex-Visteon factory in Ypsilanti will use site for manufacturing

By Paula Gardner

A new wave of skilled automotive manufacturing will move into Ypsilanti's former Visteon factory sometime in 2010 after its new owner - precision tubing manufacturer Angstrom USA - renovates what today is a 1 million-square-foot building.

"Initially we have a plan to redevelop the site," said Nagesh Palakurthi, president and CEO of the private company based in Taylor. "We'll bring it up to 2010 style and usability."


The former Ypsilanti Visteon plant is shown in this file photo.

His ultimate goal, Palakurthi said, is to consolidate his company's manufacturing operations and move some of Angstrom's 400 global jobs to the Ypsilanti property.

There's also room for future growth as grants or other incentives become available, Palakurthi added.

"A good portion of the building will be used pretty quickly," he said.

The purchase was finalized Friday, officials told Monday. The seller, Automotive Components Holdings, is a Ford Motor Co.-controlled holding company that started the sales process after the Ypsilanti plant closing was announced in 2005. ACH was charged with shuttering and selling the plant, which Visteon had operated for five years.

Palakurthi declined to disclose the purchase price, but said he'd been considering the building for at least a year. He also looked at up to 30 other properties in the region as he weighed buying a new facility.

"It's a manufacturing building with very good visibility on I-94," he said. "It's a good site, and there's a good workforce available there."

ACH officials said parts of the factory date back to the 1880s, with much of it rising up piecemeal over the years as it operated under various owners, including Ford.

Before the plant closed, employees made starter motors and ignition coils. Under Angstrom, employees will build highly engineered specialty tubing for customers that include Ford, Toyota and Chrysler.

Palakurthi said an architect is working on a plan to bring more uniformity to the building, with some new construction possible in the existing footprint. ACH will demolish about 250,000 square feet as part of the deal, and that work will begin in January.

Changes will be most visible by improvements planned to the building along the I-94 frontage, Palakurthi said.

"It's going to become a standard, high-tech looking building," he said.

Despite the downturn in the automotive sector, Angstrom is experiencing growth, Palakurthi said.

Its financial stability lets the company take advantage of the opportunity to buy the building, he added.

"It's the right thing to do at the right time," Palakurthi said. "We'd like to grow (in Michigan) if it's feasible."

Paula Gardner is business director of She can be reached by email.



Thu, Dec 24, 2009 : 3:43 a.m.

I'm an employee of Angstrom, from Ypsi, and I currently work at the Taylor facility. Angstrom has close ties with Ford. In fact, Angstrom bought several machines from the Ypsi plant when it closed. I operate one of the machines as well. Our current facility is just too small, and it was welcome news that we are moving to Ypsi. BTW, I used to work at the Ypsi plant, when it was Ford. Nagesh (the CEO) is a good man, and a savvy business man as well. I look forward to 'coming back home' where Ypsi needs some good news!


Wed, Dec 23, 2009 : 2:59 p.m.

This sounds like good news. I am a Ypsilanti twp. resident and worked in the auto industry for close to 20 yrs. But never for the big 3. I think unions are great i was a member of local 782 and 157 and we were dedicated on our job's. Please keep up on this and keep up the good job A2 new's

Janelle Baranowski

Wed, Dec 23, 2009 : 10:33 a.m.

Could you please add some more information on how this came about? It sounds like the company was planning to move to Michigan regardless. Was this because of proximity to the Big Three? Tax incentives? Trained workforce? What made Michigan more attractive than other states? Also, did the MDLEG/MEGA play any role in this? Or any other economic development organization (such as Spark?) Also, it states that they want to consolidate 400 global jobs at this location. How many of these jobs will be filled internally, vs. from the local community? What types (if any) of jobs will be filled by the local community? Palakurthi states, "We'd like to grow (in Michigan) if it's feasible." What does he mean by this?


Tue, Dec 22, 2009 : 10:57 p.m.

What great news for our community. It is great that we will have more jobs moving in to the area and that the building will be used. Thanks for the story!

Gary Lillie

Tue, Dec 22, 2009 : 10:45 p.m.

@jeepgurl. Yes, kill the golden goose. The owner of American Axle just announced he is "consolidating' his Detroit operation to South Carolina. Reasons are, 1) Unions, and 2) absenteeism. On any given day he has 20-30% workers absent, forcing him to shut down a line. On Mondays and Fridays it can be 50% - and the unions protect the workers by threatening strikes. In fact they were pretty proud of one that shut down GM plants earlier this year. That' a pretty common story.


Tue, Dec 22, 2009 : 6:09 p.m.

Wonderful news for our Ypsilanti community. I hope this company prospers and finds great success here! Welcome Angstrom!

Blue Eyes

Tue, Dec 22, 2009 : 3:44 p.m.

Merry Christmas Ypsi! This is the best news I've heard for the area in months and if anyone deserves it, it's Ypsi.

dading dont delete me bro

Tue, Dec 22, 2009 : 2:12 p.m.

let's hope these additional jobs come from ypsilanti!


Tue, Dec 22, 2009 : 10:25 a.m.

Killing golden geese?? Unions? Wow.....


Tue, Dec 22, 2009 : 9:51 a.m.

good news. sounds like a PLAN!


Tue, Dec 22, 2009 : 9:38 a.m.

This is welcomed news. As a resident of Ypsilanti Township, our subdivisions (along with the taxes, etc.) have been deeply affected by the loss of manufacturing jobs. Hopefully this signals an upturn.

Theresa Taylor

Tue, Dec 22, 2009 : 9:06 a.m.

GREAT NEWS!!!! Thanks for the update, Paula!


Tue, Dec 22, 2009 : 8:28 a.m.

This is HUGE!!!! What a win for Ypsilanti and the state of Michigan. What a break for Ypsi residents and taxpayers. Hopefully the new employees will not try and unionize the company and kill the golden goose. Sad that there are 14 comments about saving "public art" in A2 and only 3 comments in regards to this issue?


Tue, Dec 22, 2009 : 7:48 a.m.

I'm glad the facility will live on. Best of luck to them.


Tue, Dec 22, 2009 : 7:08 a.m.

400 jobs for Ypsi, sounds good to me!