Joint Venture Between Johnson Controls and Epsilon Gears Up to Build Seat Systems
11 June 1999
Joint Venture Between Johnson Controls and Epsilon Gears Up to Build Seat Systems for 2000 Cadillac DeVille
Minority-owned Bridgewater Interiors operation
has major supply contract with General Motors
PLYMOUTH, Mich., June 10 -- Officials from Johnson Controls
, General Motors, Epsilon, LLC and the City of Detroit had good
cause for celebration at a ribbon-cutting ceremony this morning in Detroit's
Empowerment Zone.
They were marking the launch of a new Bridgewater Interiors, LLC plant, an
operation that has gained one of the largest-ever automotive supply contracts
awarded to a minority-owned firm. The plant -- a joint-venture operation of
Johnson Controls and Epsilon -- officially will begin production of seating
systems for model-year 2000 Cadillac DeVille cars early next month. A five-
year supply contract between General Motors and Bridgewater is worth an
estimated $900 million.
With the company's new facility -- a 125,000-square-foot plant at 4617
Fort Street in Detroit -- 230 new jobs have been created in the city. The
employees will build vehicle seats for "just-in-time" delivery to Cadillac's
Hamtramck, Michigan assembly operation.
Attending today's ceremony were Dennis Archer, mayor of Detroit; Harold
Kutner, GM vice president and group executive for Worldwide Purchasing and
North American Production Control and Logistics; James Keyes, chairman and
chief executive officer of Johnson Controls; William F. Pickard, chairman and
CEO of Regal Plastics; Ron Hall, chairman of Bridgewater Interiors; and other
local officials and company executives.
Hall and Pickard are the principals of Epsilon, LLC.
Bridgewater Interiors is seeking official certification as a minority
business enterprise from the Michigan Minority Business Development Council, a
statewide organization that supports minority businesses.
"We're pleased to have joined with Epsilon in creating Bridgewater
Interiors, and we look forward to contributing to the success of a great
General Motors vehicle -- the Cadillac DeVille," said Keyes. "Johnson Controls
is committed to supporting and developing minority enterprises, creating jobs
and opportunities, and revitalizing Detroit."
On behalf of Bridgewater Interiors, Hall thanked General Motors and
Johnson Controls for their minority business development efforts and for
helping make the joint venture a reality.
"The economic health of the Detroit community -- and including minority
businesses in the overall success of the automotive industry are very
important matters," said Hall. "Clearly, the industry's major players are
making significant progress in these areas, as reflected in the creation of
Bridgewater Interiors."
Construction on the new Bridgewater Interiors plant began in April 1998
and was completed last fall. Since that time, employees have been recruited,
hired and trained. Final preparations now are being made for a July 1999
production start-up.
The plant location has two special designations. It is within the city's
Empowerment Zone, as defined by the federal government. In addition, the Fort
Street location lies inside one of Michigan's 11 newly created Renaissance
Zones.
Detroit's Empowerment Zone -- an area targeted for federally supported
urban revitalization -- is designed to create jobs, strengthen families and
rebuild neighborhoods. The city is eligible for federal grants to improve the
quality of life in the Empowerment Zone, and to offer tax breaks and other
incentives to promote business development.
Renaissance Zones -- created by the state legislature in 1997 -- are tax-
free development districts designed to encourage business development in
distressed urban and rural areas.
The Plymouth, Michigan-based automotive operations of Johnson Controls
will supply interior products for more than 22 million vehicles in 1998 and
achieved US$9.3 billion in sales for the 1998 fiscal year.
Johnson Controls, Inc. is a global market leader in automotive systems and
facility management and control. In the automotive market, it is a major
supplier of seating and interior systems, and batteries. For non-residential
facilities, Johnson Controls provides building control systems and services,
energy management and integrated facility management. Johnson Controls,
founded in 1885, has headquarters in Milwaukee, Wisconsin. Its sales for 1998
totaled US$12.6 billion.
/NOTE TO EDITORS: For access to other Johnson Controls news releases and
additional company information, visit the company's site on the World Wide Web
at http://www.johnsoncontrols.com./
/CONTACT: Dave Roznowski of Johnson Controls, 734-254-5632/
/Company News On-Call: http://www.prnewswire.com/comp/473547.html or fax,
800-758-5804, ext. 473547/