Sakthi Automotive to Invest $31.8 Million in Detroit Facility

Sakthi Automotive Group USA, Inc., a division of the Sakthi Group, is planning a major expansion to its North American manufacturing operation in the city of Detroit to add aluminum casting production capabilities. The investment will be at least $31.8 million and create 350 jobs.

In 2012, Sakthi Automotive received a $1.5 million Michigan Business Development Program grant to establish its first manufacturing operation in Detroit. The new expansion into the production of lightweight aluminum castings will support the fuel efficiency initiatives of global auto OEMs. According to Crain’s Detroit Business, Sakthi plans to shift 90% of its aluminum casting production to Detroit.

The expansion is expected to include the acquisition and renovation of several buildings near the company’s existing facility that will be used for manufacturing, machining, advanced worker training and employee wellness programs. The project has been awarded a $3.5 million performance-based grant from the Michigan Economic Development Corporation (MEDC). MEDC and the city of Detroit also will recommend the approval of a Michigan Strategic Fund-designated Renaissance Zone for the expansion at a later date. The city has also offered support to the project in the form of a proposed property tax abatement.

Sakthi Group is one of the fastest growing business groups in South India and is a major supplier to automotive OEMs of safety critical automotive components including steering knuckles, control arms, brake drums, brake discs, hubs, brake calipers and carriers.

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