Sakthi Automotive Group USA Inc. is planning a $31.9 million expansion of its plant in Detroit.
The project, which is supported by a $3.5 million performance-based grant from the state of Michigan, is expected to create 350 new jobs, the state's business development agency said this week in a statement.
Sakthi, a subsidiary of India conglomerate Sakthi Group, is expanding to produce aluminum castings. Sakthi plans to shift 90 percent of its aluminum castings work, which is currently done oversees, to its Detroit plant.
The city of Detroit also is planning to recommend a tax exemption for the expansion, as well as a property tax abatement.
The auto supplier received a $1.5 million grant in 2012 to establish the Detroit location, which is a former ArvinMeritor plant. The state will make the final payout for that grant in June, the state said.
Sakthi acquired the plant for $7.6 million, according to commercial real estate website CoStar.
Separate from the current expansion, Sakthi plans to reuse several other vacant buildings near its Detroit site, including the purchase of a former high school through a joint venture, the state development agency said in a memo.