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General Motors Corp. said Tuesday it will spend $63 million on a casting plant to produce cylinder heads for 3.6-liter, high-feature V-6 engines used in the GMC Acadia, Saturn Outlook and Buick Enclave models.

About 130 hourly employees at the Saginaw facility will be retained with the investment, the automaker said.

The investment will cover renovations at the GM Powertrain Saginaw Metal Casting Operations plant and installation of new equipment for a semi-permanent mold process that involves a water cooling procedure, GM said.

The Saginaw plant, GM's largest aluminum-producing facility, also produces engine blocks and cylinder heads used in V-6 and V-8 engines powering sport utility vehicles and trucks including the Chevrolet Trailblazer and GMC Sierra. It employs 924 hourly and 167 salaried workers and has an annual payroll of $100 million.

Construction is to begin in spring 2009 and be completed in January 2011.

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