Brent Snavely

Detroit Free Press

Flex-N-Gate owner Shahid Khan said today his company will invest $95 million to build a new plant in Detroit that will supply parts to Ford that will initially create about 400 jobs.

The company, which has grown rapidly in recent years through acquisitions and new contracts, said the investment in Detroit could double in the coming years and eventually has the potential of leading to 750 new jobs.

The Michigan Strategic Fund on Tuesday approved a $3.5-million performance-based grant to help Flex-N-Gate open the plant.

Related:How Detroit landed $95 million Flex-N-Gate deal

“Building a new plant from the ground up within the Detroit city limits will be a milestone moment for Flex-N-Gate, made possible thanks to our partnership and collaboration with Ford, the City of Detroit and the State of Michigan," Khan said in a statement.

Khan is scheduled to make the announcement this morning in Detroit at the 186-acre I-94 Industrial Park located near I-94 and I-75. Flex-N-Gate will build its plant on a 30-acre site at the industrial park that is located at approximately 7000 Georgia St., at Helen Street, southwest of the Coleman A. Young International Airport, the former Detroit City Airport.

“We couldn’t do this alone,” Khan said in a statement. “Their collective support and vision to convert a neglected urban area into a manufacturing center that will create hundreds of new, sustainable and well-paying jobs here in Detroit has been nothing short of spectacular."

Detroit Mayor Mike Duggan praised the announcement.

“Nothing is more important to our city than creating jobs for Detroiters,” Duggan said. “The fact that Flex-N-Gate has committed to such a strong local hiring and contracting plan shows the company’s deep level of commitment to being a partner with the community.”

Khan, a Pakistani-born immigrant, is widely recognized as an American success story. Khan came to the U.S. at age 16 to attend the University of Illinois at Urbana-Champaign.

Khan ranks as the 72nd wealthiest American with an estimated net worth of $6.5 billion, according to Forbes. He also owns the Jacksonville Jaguars and Fulham Football Club, a soccer franchise in London he purchased for about $300 million.

He made his fortune largely from Flex-N-Gate, an automotive supplier he began working for after graduating from college with an engineering degree.

Flex-N-Gate acquired part of struggling automotive supplier Meridian Automotive in 2009 and purchased Sandusky Lighting, a former division of Visteon, in 2012. At first, Visteon Lighting only had contracts with Ford. Now, Flex-N-Gate is gaining business from other automakers.

Flex-N-Gate was incorporated in 1956 and is headquartered in Urbana, Ill. Flex-N-Gate provides product engineering, project management, testing, stamping, welding, molding, painting, plating, assembly and shipping. Flex-N-Gate has 48 manufacturing and nine product development and engineering facilities throughout the U.S., Canada, Argentina, Brazil, Mexico, China, and Spain.

Its product line includes large body and chassis structural assemblies, bumper and fascia systems, brackets, receiver hitches and interior plastic panels and pillars.

Flex-N-Gate's annual sales have increased from $2.5 billion in 2006 to $4.9 billion in 2015. This year, Khan said, sales should top $6.5 billion.

Contact Brent Snavely: 313-222-6512 or bsnavely@freepress.com. Follow him on Twitter @BrentSnavely.