Rezoning opens door to AJM expansion

Sunday Times Newspapers

SOUTHGATE — The final paperwork and preliminary planning appears complete, and construction work is expected to soon begin on the long-awaited expansion of AJM Packaging Co., with more development to follow.

The planning commission and city council recently cleared the way for further expansion by AJM, to include relocation of its world headquarters.

The Southgate City Council approved on April 18 the rezoning of five parcels in the vicinity of Northline and Allen roads; the proposed AJM headquarters will be built on 16.2 acres rezoned for commercial use.

“This allows for future expansion which could include their world headquarters,” Southgate Mayor Joseph Kuspa said.

The manufacturer will soon begin previously approved plans to expand its production facility on Reeck Road by 50,000 square feet, bringing 100 new jobs to the area with expectations of more to follow.

Kuspa said that Bloomfield Hills-based AJM is expected to invest more than $28 million in property and personnel for the project. The company manufacturers paper products and considered moving its operations to New Jersey before reaching an agreement with Southgate officials and the Michigan Economic Development Corporation.

Commercial development by AJM joins recent projects including a new Wal-Mart at Eureka adn Dix-Toledo roads, and the continuation of the $1.5 million Eureka Road corridor project managed by the Downtown Development Authority, including a streetscape project.

“We’ve been very aggressive in promoting Southgate to local businesses,” Kuspa said.

(James Mitchell can be reached at