Toyota Technical Center, a division of Toyota Motor Engineering & Manufacturing North America, has announced it is investing $28 million in two Ann Arbor, Mich., facilities towards the development of powertrain operations.

The areas of calibration, design and evaluation on new engine and transmission will more readily be possible with these new developments, said Simon Nagata, president of Toyota Motor Engineering & Manufacturing North America.

“An expansion of this magnitude takes good teamwork with local partnerships,” Nagata said. “Our friends at Michigan Economic Development Corporation, Ann Arbor SPARK and Ann Arbor Township have been at the table with us to make this expansion possible.”

Michigan Gov. Rick Snyder said: “Toyota is a global leader in the automotive industry and its growth in Michigan is welcome news for all of us. Toyota’s commitment strongly signals that Michigan offers an improved climate for increased business investment. We welcome this very positive decision.”

Ann Arbor Township Supervisor Mike Moran noted the township’s 36-year relationship with Toyota. “We are pleased to assist Toyota,” Moran said, “to transition the Technical Center into this new use, and look forward to at least another 36 years together.”

Paul Krutko, president of Ann Arbor SPARK, said: “Toyota chose to locate and take root here because of local resources, specifically the deep pool of engineering and technical talent. Ann Arbor SPARK, working with its partners at the local and state level, is committed to attracting leaders like Toyota to the region, and offering them the wide range of support to grow their businesses here.”