(THREE RIVERS) – American Axle & Manufacturing will be doing some major facility upgrades and capital improvements to their Three Rivers plant.

Governor Gretchen Whitmer and the Michigan Strategic Fund Board announced that American Axle has received approval for a five year, 100% State Essential Services Assessment exemption. It’s an estimated value of up to $978,960.

Tolga Oal, President of Driveline AAM says these investments are necessary to ensure plant infrastructure and advanced manufacturing processes remain competitive, while supporting the highly skilled workforce to meet the strict requirements of their OEM customers.

Oal says they appreciate knowing that when they’re making multi-year investments in physical and human capital, they’re doing so in a location where they can count on partnerships that are necessary to sustain and grow the Three Rivers facility to compete successfully in this dynamic, ever-changing industry.

American Axle is the largest employer of union workers in St. Joseph County. Overall, the company’s undertaking will invest up to $132.9 million in Three Rivers, preserving jobs in Michigan, and ensure the facility can remain competitive and sustainable for the long-term.

Jonas Peterson, CEO of Southwest Michigan First says the investment American Axle is making in its Three Rivers facility is an incredible win for Southwest Michigan. He says the commitment will position the plant and community for long-term success.