Companies that manufacture lithium-ion batteries will get a charge out of the newest addition to Fort Custer Industrial Park.
Toda North America is weeks away from powering up a state-of-the-art automated facility that will produce a powder used in these batteries. A group of 25 employees will occupy a portion of the 60,000-square-foot building that sits on an 18-acre parcel at 4750 W. Dickman Road.
"There are a number of battery plants going up in areas of the state such as Holland and the Midland-Dow area," says Robert White, manager of the Toda plant. "Our product is going to go into the product they make."
Location was a major consideration when officials with Toda were mulling their options.
Karl Dehn, president and chief executive officer of Battle Creek Unlimited, the lead economic development agency for the area, says state officials in Michigan developed a strong marketing effort to pursue companies working on battery components and battery-related components.
"When the finalist site selections were made by Toda it came down to Michigan and South Carolina," Dehn says. "In the end I think it helped that Battle Creek has been successful in accommodating and supporting Japanese companies and investments in infrastructure necessary to support those companies and the families of those employed by these companies."
Fort Custer Industrial Park also had an available site and infrastructure in place to facilitate the Toda plant. The
Michigan Economic Development Corp. also put together a strong incentive package for Toda.
Toda's Battle Creek plant cost more than $70 million and is a joint venture between Toda Kogyo Corp. and
Itochu Corp. The company was awarded $35 million from the United States Department of Energy because of the technology they possess.
"They were looking at North America in general as an expansion opportunity," Dehn says. "They are a world leader in this particular area and that was the reason they were awarded the funding."
White says the establishment of the new facility will allow company officials with Toda Japan to concentrate their efforts on markets in Europe and Asia.
"This is an important manufacturing investment in our quest to maintain our global leadership as the premier supplier of battery materials around the world, and now as a key local supply chain partner to the rapidly growing U.S. battery industry," says Tadashi Kubota, managing director of Toda Kogyo Group.
Dehn says Michigan's ability to capture a large part of the national battery manufacturing industry was a major selling point for Toda officials.
"The tradeoff is that they're close to the raw materials and suppliers they need in addition to the end customers," Dehn says.
Among Toda's potential customers is a Canadian-based company that is planning to acquire property just east of downtown Battle Creek where it will produce and assemble batteries to be used in alternative-energy related industries. That company --
Next Alternative -- is expected to bring 110 new jobs to the community.
The dry chemical powder produced by Toda will constitute about 40 percent of the total weight of the batteries it goes into. A team of chemists working in a laboratory at the plant will conduct extensive quality control checks before the bulk powder substance is shipped to customers.
Although the powder could also be used in electronics such as laptops, cellphones and power tools, that alone would not sustain the company's newest facility: the manufacture of electric and hybrid vehicles is really what will drive sales.
Batteries designed for these vehicles are expected to provide 100,000 miles of service before being replaced.
"Not all battery technologies are the same," says Tamara Hendricks, human resources manager for Toda. "Batteries containing the material we produce will have the best life and best charge."
An estimated 4,000 tons of the powder will be produced each year at the Battle Creek plant. By 2013, each production line will be running 24 hours a day and the total number of employees is expected to increase to 60 to keep pace with the 24/7 production schedule.
Hendricks says she was very impressed with the caliber of individuals who applied for positions with Toda. She and other company officials had a difficult time deciding who to hire because there were so many qualified applicants.
"We are establishing a new culture for this company," White says, "one where safety and quality are top priorities. We have a very much integrated team approach."
Hendricks says she anticipates the continued development of an inclusive work culture with a team of individuals who bring a diversity of life experiences.
"We will be offering opportunities for employees to benefit from the different cultures," she says.
Toda is the 17th Japanese company to settle in the Fort Custer Industrial Park. Officials with Battle Creek Unlimited estimate that these companies employ about 5,200 of the 9,000 employees working for companies located in Fort Custer.
As the technology involved in the production of electric and hybrid vehicles evolves, the manufacturers of these vehicles will be looking to the battery industry for improvements in the charging life and the maintaining of speed.
"In an automotive manufacturing company you don't just make the part go through quality validation, you've got to prove it," White says. "Initially this means proving the quality and the consistency of the product."
Jane C. Parikh is a freelance reporter and writer with more than 20 years of experience. She also is the owner of In So Many Words based in Battle Creek.
Photos by
Erik Holladay Robert White, Toda America Plant Manager, stands outside the new Toda America plant in Battle Creek, Mich. The plant will produce a powder used in lithium-ion batteries.
The plant, located in the Fort Custer Industrial Park, is nearly ready to start manufacturing.
Robert White, Toda America Plant Manager
.