ATESTEO North America, Inc.

The City of East Lansing is in receipt of a request from ATESTEO North America, Inc. to provide financial assistance to locate a significant R&D operation in East Lansing. This request was discussed by the East Lansing City Council on April 19, 2022. The meeting materials as well as a video of the discussion is available here.

Project Description

ATESTEO, as part of the IHO Group, was started in 1986 to provide testing services for drivetrains. The company began serving the mobility industry in 2008 and provides testing services for hybrid and fully electrified automotive drivetrains and components. IHO Group employs approximately 750 technical staff in Germany, China and Japan and operates more than 160 test benches worldwide. IHO Group supports practically all automotive Original Equipment Manufacturers (OEM), tier-one suppliers and engineering providers globally. Now, ATESTEO North America, Inc. was established in 2022 to better serve existing customers and future customers in the U.S. market. 

The company is contemplating three different states for its new facility to better serve existing and future customers, and will be the first U.S. operation and North American headquarters. The U.S. launch will result in the creation of up to 46 paid positions in the first 4-5 operational years, consisting mostly of engineering talent, paying an average wage of $1,335 per week plus benefits. The company plans to establish a facility that will be approximately 35,000 square-feet (an increase from approximately 28,000 square-feet), where it will install test benches that will be used to test drivetrain systems and components. For the Michigan building under consideration, which falls in East Lansing's jurisdiction, the company expects the project to require approximately $700,000 of real property improvements over three years, in addition to more than $26 million in personal property investment over the first five years.

Summary of Project Attributes

  • Long-term lease in a 35,000 square-feet building located at 3400 West Road
  • Investing approximately $700,000 in real property (building) improvements
  • Investing approximately $26 million in personal property (machinery, equipment, etc.) in the first five years
  • Approximately $16 million in the first year
  • Adding 46 new jobs within initial three years of operations
  • Average salary of $69,000+ ($33+ hourly) plus benefits
  • Positions primarily engineers, technicians, mechanics and electricians 

Summary of Financial Incentive Requests

  • Establish an Industrial Development District per Public Act (P.A.) 198
  • Approve a 10-year Industrial Facilities Tax Exemption per P.A. 198
  • Approve a 10-year New Personal Property Tax Exemption per P.A. 328

Documents & Other Resources

P.A. 328: New Personal Property Tax Exemption

  1. Application for Exemption of Personal Property Tax (PDF)
  2. Public hearing on the P.A. 328 application
  3. Operations & Legal Descriptions (PDF)
  4. DRAFT New Personal Property Exemption Agreement
  5. Resolution to Approve a P.A. 328 Personal Property Tax Exemption Application

P.A. 198: Industrial Development District

  1. Application for Exemption of Personal Property Tax
  2. Public hearing to establish an Industrial Development District
  3. Public hearing on the P.A. 198 application
  4. Resolution to establish the West Road Industrial Development District
  5. Resolution to approve a P.A. 198 Real Property Tax Exemptions Application 
  6. Triple Net Lease Agreement (Draft)
  7. Project Memo for IDD District (PDF)
  8. Operations and Legal Description (PDF)
  9. 198 Written Agreement

Financial Analysis

Preliminary Financial Analysis (PDF)