JR Automation breaks ground on $72.8M global headquarters

ZEELAND — The sun was shining and moods were bright Wednesday as West Michigan manufacturing titan JR Automation broke ground on its new $72.8 million global headquarters that will be based in Zeeland.

The ground-breaking ceremony marked the official start of construction on the 286,000-square-foot facility, which will bring together approximately 350 employees from several West Michigan locations — representing a part of the company's 2,000-plus global workforce.

Read More: Zeeland chosen as new headquarters for global robotics giant JR Automation

The new facility will serve as a hub for the company, consolidating three existing Michigan locations into one state-of-the-art campus. 

It is designed to increase efficiency and collaboration for the company's approximately 941 Michigan-based employees and provide an opportunity for co-location with employees from its parent company, Hitachi. 

"The plan is to exit three of those [facilities] and then bring everybody in those teams under one roof," said Dave DeGraaf, president and CEO and general manager of Hitachi’s Automation Division.

"Any time we can remove barriers for team collaboration — so it'll be a meeting, a walk, or a drive — it just improves the type of collaborative environment that we're in," he said.

Room to grow

The new headquarters, which will transition from the current Holland headquarters facility, will feature both office space and manufacturing capabilities, and is expected to bring 150 new jobs to the community.

"Moving towards Zeeland gives us further reach in the Grand Rapids area, so our geographic radius, if you will, of bringing people to work here will improve," DeGraaf said.

He said the company worked with state and local officials to ensure the company was able to remain in West Michigan and continue to grow.

"Obviously, when we go into a project like this, we need to make sure from a business standpoint that we're maximizing value for shareholders as well," DeGraaf said. "The state of Michigan did a great job. We're really thankful for what they were able to do and provide us, and then stay here in West Michigan."

A boost for local manufacturing

Zeeland's selection as the new global headquarters is a major endorsement of the area's economic strategy, Mayor Kevin Klynstra previously told ONN. The city was chosen over a location in South Carolina, where JR Automation has an existing facility with space to grow. 

“We are very proud to welcome JR Automation to the city of Zeeland. To have them pick our community is an honor. We have been known to be a business-friendly community for many years, and we have given many tax abatements out to industrial and commercial businesses over the years,” Klynstra said. “We hope to have a long and successful relationship with JR Automation.”

Beyond the direct jobs and investment, the project also has a ripple effect on the local economy, he said. The move will free up existing industrial space in nearby Holland, providing room for other growing companies, Klynstra said. 

DeGraaf said the economic outlook for the manufacturing sector is improving, with more customers moving towards automation.

"A lot of these projects are significant in size," he said. "This gives us the ability to do these automation lines under one roof. Sometimes we have to put them into multiple facilities. We got one project right now that is actually on three different shop floors that we're developing, so this gives us the ability to put that all under one roof for our customers."

The company aims to create a “sustainable” building, which will include solar panels, native prairie landscaping to promote biodiversity and a goal to have its baseline operations powered entirely by renewable energy, according to company reports. The 45-acre campus will also feature public walking and biking paths.

Klynstra said the headquarters will be a draw for skilled workers and new business, solidifying Zeeland's role in the global automation industry.

Amanda Murray, vice president of business solutions for Lakeshore Advantage, said the local community will benefit as well.

"This expansion not only highlights our strength in smart manufacturing, but also strengthens the opportunities available for local families and reinforces the Lakeshore as a thriving place to live and work,” she said. 

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JR Automation is a global company that provides automated manufacturing and distribution solutions for various industries, including automotive, aerospace, life sciences and electronics, according to its website. 

The company designs, builds and integrates custom robotic systems and other advanced technologies to help manufacturers increase efficiency, speed and flexibility in their operations. With over 2,000 employees and more than 20 facilities across North America, Europe and Asia, JR Automation was acquired by Japanese multinational conglomerate Hitachi in 2019.

Hitachi is one of the world's leading providers of digital innovation and sustainable solutions, focusing on digital systems, energy, mobility and healthcare sectors.

"JR Automation operates across multiple facilities in the Holland area, and establishing our headquarters in Zeeland supports our continued growth and operational needs," said Christine Powers, JR Automation's director of marketing and communications. "Working closely with our project partners, we identified land that could accommodate the scale of our vision while minimizing impact to our team members’ commutes."

— Heather VanDyke covers northern Ottawa County for the Ottawa News Network. Contact her at hvandyke@ottawanewsnetwork.org. Sarah Leach is the executive editor of the Ottawa News Network. Contact her at sleach@ottawanewsnetwork.org. Follow her on Twitter @ONNLeach.