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Johnson Controls-Saft Announces Project to Build lithium-ion Hybrid Battery Plant in Michigan

Posted on: Tuesday, 14 April 2009, 13:18 CDT

MILWAUKEE, Wisconsin, April 14 /PRNewswire-FirstCall/ -- Johnson Controls-Saft today announced a project to build its first U.S. cell manufacturing facility for lithium-ion batteries for hybrid and electric vehicles. Subject to final State and local incentives, the company will use an existing Johnson Controls facility at its site in Holland, Michigan. In this project, estimated to cost $220m, Johnson Controls-Saft will receive a combination of tax credits and incentives from the state of Michigan totaling $148.5 million. The company also plans to apply for a grant through the federal American Recovery and Reinvestment Act (ARRA) in May.

"Battery technology is strategically important to the future of the U.S. automotive industry and the economy at large," said Alex Molinaroli, president of Power Solutions for Johnson Controls. "Our first U.S. plant will bring jobs to Michigan, and many additional jobs through suppliers and the businesses these employees will support as the clean vehicle market develops. It is a key element of our broader strategy and commitment to the hybrid vehicle industry in North America."

Johnson Controls-Saft is a leading global provider of hybrid battery systems. The company opened the world's first lithium-ion manufacturing facility for hybrid electric vehicles in 2008 in Nersac, France, where it is currently in production for the Mercedes S-Class hybrid, which will be available to consumers later this year. Additionally, Johnson Controls-Saft will supply the lithium-ion hybrid battery system for the BMW 7 Series ActiveHybrid available in 2010, Azure Dynamic's BalanceTM Hybrid Electric for commercial vehicles available in 2010, and Ford's first plug-in hybrid electric vehicle available in 2012.

"This Michigan facility will allow us to serve our strategic global customers, and specifically the production contracts we have with Ford and Azure Dynamics. It will also allow us to serve other important customers as the hybrid and electric vehicle industry continues to gain a foothold in the United States," said Mary Ann Wright, who leads the Johnson Controls-Saft joint venture and is vice president.

"Ford is pleased that Johnson Controls-Saft has been selected by the State of Michigan to receive incentives," said Susan Cischke, group vice president Sustainability, Environment and Safety Engineering for Ford Motor Company. "They are well positioned to become a key manufacturer of advanced lithium-ion batteries for electrified vehicles. We have partnered with Johnson Controls-Saft to supply the lithium-ion batteries for our plug-in electric vehicle coming in 2012, as part of our overall electrification strategy. We see this as an important step to building a domestic advanced battery industry."

"We are delighted to receive this support from the state of Michigan" says John Searle Chairman of Saft's management board. "It is an important step in Johnson Controls' Saft's continuing commitment to build a manufacturing infrastructure for hybrid and electric vehicles in the United States. With our demonstrated track record and the endorsement from strategic customers such as Ford and Azure Dynamics.this facility will be ready to meet demand as the US market for clean vehicles develops, also driven by the US government's stimulus package."

About Johnson Controls-Saft

Johnson Controls-Saft is a joint venture that has brought together Johnson Controls -- the world's leading supplier of automotive batteries and a company deeply experienced in integrated automotive systems solutions -- with Saft, an advanced energy storage solutions provider with extensive Li-ion battery expertise.

About Saft

Saft (Euronext: Saft) is a world specialist in the design and manufacture of high-tech batteries for industry. Saft batteries are used in high performance applications such as industrial infrastructure and processes, transportation, space and defense. Saft is the world's leading manufacturer of nickel-cadmium batteries for industrial applications and of primary lithium batteries for a wide range of end markets. The group is also the European leader for specialized advanced technologies for the defense and space industries. With approximately 4,000 employees worldwide, Saft is present in 18 countries. Its 15 manufacturing sites and extensive sales network enable the group to serve its customers worldwide. Saft is listed in the SBF 120 index on the Paris Stock Market. For more information, visit Saft at http://www.saftbatteries.com

About Johnson Controls

Johnson Controls (NYSE: JCI) is the global leader that brings ingenuity to the places where people live, work and travel. By integrating technologies, products and services, we create smart environments that redefine the relationships between people and their surroundings. Our team of 140,000 employees creates a more comfortable, safe and sustainable world through our products and services for more than 200 million vehicles, 12 million homes and one million commercial buildings. Our commitment to sustainability drives our environmental stewardship, good corporate citizenship in our workplaces and communities, and the products and services we provide to customers.

SOURCE Saft

Source: PR Newswire

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