Kostal Kontakt System to Open Rochester Hills Facility

Rochester Hills Gains $27 Million Dollar Investment and New Jobs

 The KOSTAL Group, headquartered in Luedenscheid, Germany, announced its plan to invest $27.1 Million to form two new companies, KOSTAL Kontakt Systeme, Inc. and KOSTAL Industrial Electronics, Inc., both to be settled into a 92,000-square-foot facility in Rochester Hills, Michigan.

“We are relocating the existing production of our Connector Systems that support the renewable energy and green energy market,” said KOSTAL Kontakt Systeme´s President and CEO, Mr. Wolfgang Dimmich.

 To capitalize on the growing renewable energy and battery technology market in the United States, KOSTAL, the manufacture of junction boxes and connectors, which are used to connect batteries to hybrid or electric vehicles and for solar panels, will relocate their Germany and Mexico productions to the Rochester Hills facility.

“Michigan is a stepping stone for these specific KOSTAL technologies,” said Dimmich. “Additional products, such as voltage converters for the solar industry, could be manufactured in the United States in the near future as well.”

In addition to their investment, KOSTAL plans to create 247 new jobs, resulting in nearly 400 spin-off jobs in Michigan’s local economy.

“Our economic development strategy focuses on the attraction of alternative energy, and specifically battery technology, states Mayor Bryan Barnett. “To have a company of KOSTAL’s stature locate in the Rochester Hills SmartZone will not only infuse our community with new jobs, but will significantly impact the alternative energy market.”

 Before KOSTAL occupies the building, the facility will undergo renovation to update the mechanical equipment, roof, office area and facade.  The company plans to begin operations at the end of October.

 The KOSTAL Group is an independent, family owned business founded in 1912.  It develops and manufactures technologically advanced electronic and mechatronic products for leading automotive manufacturers, their suppliers and multiple other industries.  KOSTAL is represented in 17 nations with 11,000 employees worldwide.

Established in 1984, the City of Rochester Hills supports more than 200 tech-savvy businesses and offers a complete and diverse community. Voted one of the top 100 best places to live in 2009, the City of Rochester Hills is committed to being the preeminent place to live, work and raise a family. For more information on City Planning and Development, contact Dan Casey, Manager of Economic Planning & Development.

About Tom and Ann Gendich

Founders of Rochester Media. Looking to provide great local news to all people in and around Rochester and Rochester Hills. Send them a note at [email protected].