Michigan’s Economic Development Corporation (MEDC) says its Strategic Fund (MSF) will provide a US$1.5m incentive to Sakthi Automotive Group to establish a new facility in Detroit.
The MEDC claims the grant will generate up to US$18.6m in private investment and add up to 183 new jobs.
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“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 place to do business,” said MEDC president and CEO, Michael Finney.
“This new investment shows Michigan’s competitive business climate and workforce capabilities mean real opportunities for leading edge companies.”
Sakthi proposes to invest the US$18.6m to purchase and upgrade an existing vacant building in Detroit, creating up to 183 new jobs as a result of the project, with Michigan chosen against a competing site in South Carolina.
The City of Detroit has offered support in the form of a 12-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 M Manickam.
Signed into law by Governor Rick Snyder in December, the Michigan Business Development Programme, provides grants, loans and other economic assistance to qualified businesses which make investments or create jobs in Michigan, with preference given to companies that need additional assistance for deal-closing and 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, as well as net-positive return to the State.
Business retention and retail projects are not eligible for consideration of the incentives.
The Michigan Business Development Programme replaces the State’s previous MEGA programme, that was a feature of the Michigan Business Tax, which was eliminated through business tax restructuring legislation approved and signed into law by Snyder in May, 2011.
Sakthi Automotive Group is a division of the Sakthi Group,a supplier of safety-critical automotive components including steering knuckles, control arms, brake drums, brake discs, hubs, brake callipers and carriers.
