Axiom Engineered Systems, LLC, located in the old Keihin Michigan Manufacturing facility in Capac, could see its first hires at the beginning of next year, with plans to eventually create up to 200 new jobs.

Larry Watkins, senior manager of U.S. operations for Axiom, said the automotive part manufacturer took possession of the facility on July 1, and have been making updates and additions to the buildings, such as adding overhead cranes and other equipment.

Watkins said the first press and other equipment will be brought in the fourth quarter of this year, and production is projected to begin in the first quarter of 2023, which runs from January to March.

By the end of 2023, there should be as many as 100 employees, with production running five to six days a week and three shifts, Watkins said. By 2024, the facility is projected to have as many as 200 employees.

Watkins said the company plans to hire 90 to 95% of its employees from local communities. Axiom is also committed to 90% of its workforce making $25 an hour or more, Watkins said.

"We're willing to pay extra to make sure that we get qualified employees that will be dependable and provides us with our expectations," Watkins said.

Dan Casey, CEO of the Economic Development Alliance of St. Clair County, said while the labor market is tight and there is competition among manufacturers in St. Clair County for labor, Axiom's commitment to wages that are on the high end of the manufacturing sector will give them an advantage to help fill their positions.

The plant is also located on the western edge of the county, and can draw from population centers in St. Clair County, to the west in Lapeer County, or north in Sanilac County, Casey said.

The majority of Axiom's employees will be semi-skilled machine operators, but the company will also have a variety of skilled positions in shipping, logistics and quality control. Watkins said Axiom is open to a wide variety of applicants and will ensure employees receive the proper training for their roles.

The facility will manufacture custom injection-molding car parts. It will be a large tonnage facility with customers such as Stellantis, Volkswagen, Chrysler and Tesla, Watkins said.

This will be the Canadian company's first plant in the U.S. Watkins said most of the product the company makes in Ontario goes to customers in the U.S., so it makes sense for the company to expand where its customers are located.

Watkins said the company chose Capac because of the incentives offered by the village and because the old Keihin facility has the potential to double in size. Axiom plans to add another 150,000 square feet in the long-term future, Watkins said.

Capac Village Manager Travis Youatt said Axiom's promise of providing good-paying jobs will be a major economic benefit to the rural village of Capac and the surrounding community.

"Those are livable wages, which is crucial, and Axiom has stated that they're looking to hire within our community," Youatt said. "So, the village of Capac will be drastically impacted in a positive way."

Youatt said the village of Capac's tax abatement was necessary to attract Axiom to the area, as the village faces stiff competition from other municipalities' incentives.

Kristy Jones, director of business and community development for the St. Clair County EDA, said if approved, Axiom would pay taxes based on today's tax assessment for a period of 12 years, rather than what the value of the property will be after improvements are made to the property.

“The rate that they’re paying right now is what they’ll pay for the next 12 years,” Jones said.

After the incentive program ends, the property will be reassessed and the company will pay taxes on the real value of the property.

Jones said the abatement must still be approved by the Village of Capac, after which it must receive approval from the Michigan State Tax Commission and the Michigan Economic Development Corporation.

According to the abatement, the company will make an initial investment in the property of $1,807,680 by July 2024.

In order to retain the tax benefits, Axiom also agrees to remain in operation while the abatement is in effect and achieve its projected job creation and investment in the facility, which includes the creation of at least 98 jobs with two years of the completion of the facility. If Axiom breaches the terms of the abatement, the village can modify or withdraw the company's tax benefits, according to the abatement.

The abatement will be discussed and will be up for approval by the Capac village council at its next meeting at 7 p.m. Sept. 19 at the American Legion hall next to the library, 115 North Main St., Capac.

Jones said incentives such as tax abatements are commonly used by municipalities to attract business and hold those businesses accountable to their projected investments and job creation.

"It’s just another tool in our toolbox from the state of Michigan to bring our business here," Jones said.

Contact Laura Fitzgerald at (810) 941-7072 or lfitzgeral@gannett.com.