Shakti Automotive setting up plant in Detroit with an investment of $ 18.6 million

April 28, 2012 - PRLog -- The Coimbatore-based auto components major receives $1.5 million incentive as part of the Michigan Business Development Programme to set up a plant in Detroit, quoting a MEDC statement, Crain's Detroit Business reported adding that the company was touting up to 183 jobs and $ 18.6 million investment.

"Sakthi Automotive is responding to the global automobile manufacturing and assembly core, which is still the critical mass of the state of Michigan," the company said in an email response.

Also quoting AP, the report said Sakthi Automotive is contemplating on opening operations by 2014 in a now vaccant, 3000,000 square feet building in Southwest Detroit. The company has not firmed up the building as the negotiations are still going on, the report said.

An estimated 120 skilled and semi-skilled workforce will make up the bulk of the new jobs, with most hiring being done in 2013 and 2014, noted the report.

Sakthi Automotive Group supplies safety components including steering knuckles, control arms, brake drums, brake discs and hubs. It is part of the Sakthi Group, from Tamil Nadu, a $1.2 billion industrial conglomerate based in South India. The company expects a 12-year tax abatement from Detroit, with the approval of the City Council, to help offset its investment costs. Sakthi Automotive also considered sites in North Carolina but decided a couple of weeks ago to settle in Michigan, the report pointed out.

The decision was based on an array of factors, said Sakthi spokesman Thomas Brian. "The three Detroit automakers, the existence of a regional casting plant, financial incentives from the state and the proximity of a skilled workforce. Sakthi Automotive is responding to the global automotive manufacturing and assembly core, which is still the critical mass of the state of Michigan", Brian wrote in an email. Later in a phone call, he said, 'Most of our customers we are working on are in Michigan'. For a full report, visit http://automotivehorizon.sulekha.com/shakti-automotive-se...