Posted on: Monday, April 30th, 2012 at 4:02 pm
The Michigan Economic Development Corporation announced that the Michigan Strategic Fund will provide a $1.5 million Michigan Business Development Program incentive to Sakthi Automotive Group for the establishment of a new facility in Detroit, a project that will generate up to $18.6 million in new private investment and add up to 183 new jobs.
“Sakthi Automotive is a global leader in the automotive supply chain and this decision to locate its first North American facility in Detroit demonstrates Michigan’s strong advantages as a great place to do business,” said MEDC President and CEO Michael A. Finney. “This new investment shows Michigan’s highly competitive business climate and tremendous workforce capabilities mean real opportunities for leading edge companies.”
Sakthi Automotive Group is a division of the Sakthi Group, one of the fastest growing business groups in South India. A major supplier of safety critical automotive components including steering knuckles, control arms, brake drums, brake discs, hubs, brake calipers and carriers, Sakthi Automotive has received a $1.5 million Michigan Business Development Program incentive to locate its first North American facility in the City of Detroit. Sakthi proposes to invest up to $18.6 million to purchase and upgrade an existing vacant building in Detroit, creating up to 183 new jobs as a result of the project. Michigan was chosen over a competing site in South Carolina. The City of Detroit has offered support in the form of a12 year tax abatement to the project.
“Michigan has proven to be a progressive and strong partner for Sakthi and Sakthi’s end customers,” said Sakthi Chairman Dr. M. Manickam. “Sakthi and Sakthi’s end customers share mutually beneficial plans to continue to provide world-class, progressively designed vehicles and vehicles subsystems together as Michigan remains famous to the entire world of car performance enthusiasts and value-conscious customers alike.”
Signed into law by Governor Rick Snyder in December, the Michigan Business Development Program provides grants, loans and other economic assistance to qualified businesses that make investments or create jobs in Michigan, with preference given to businesses that need additional assistance for deal-closing and for second stage gap financing.
The MSF will consider a number of factors in making these awards, including: out-of-state competition, private investment in the project, business diversification opportunities, near-term job creation, wage and benefit levels of the new jobs, and net-positive return to the state. Business retention and retail projects are not eligible for consideration of these incentives.
The Michigan Business Development Program replaces the state’s previous MEGA program that was a feature of the Michigan Business Tax that was eliminated under business tax restructuring legislation approved and signed into law by Snyder in May 2011. The Michigan Business Development Program and Michigan Community Revitalization Program are MEDC Business Attraction and Economic Gardening programs, supported by the MSF state general fund appropriation.