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Sakthi Expands Detroit Plant

In August 2015, Sakthi Automotive Group announced it was planning a $31.9 million expansion of its Detroit plant. The project is expected to create 350 new jobs, according to the Michigan Economic Development Corp. Sakthi, a subsidiary of India conglomerate Sakthi Group, is expanding to produce aluminum castings. The company plans to shift 90 percent of its aluminum castings work, currently done overseas, to its Detroit plant. The project is supported by a $3.5 million performance-based grant from the Michigan Strategic Fund. Additionally, DEGC provided assistance, recommending a Renaissance Zone tax exemption, a property tax abatement and workforce development programs.

DEGC has been working with Sakthi since 2012, when the company first considered bringing $25 million in investment and 170 new jobs to Detroit to manufacturing safety critical automotive components. That same year, Sakthi acquired the plant housing its Detroit location, which is a former ArvinMeritor plant. DEGC also assisted Sakthi in the relocation to its location on West Fort Street, which created 480 additional new jobs.

Sakthi estimates by the year 2020 the company will have invested nearly $70 million in southwest Detroit. In addition to these investments, Sakthi is dedicated to the Detroit community. Chairman Mahalingum Manickam and CEO Lalit Verma hire Detroit residents, training them in advanced manufacturing and supporting the basic needs of residents such as healthy food and childcare.