Magna International Inc. and LAN Manufacturing Group LLC has formed a new joint venture to open a seating plant. They will use the former site of Sakhti Automotive Group in southwest of Detroit. Moreover, the new plant will create around 390 new job opportunities.

Magna-LAN Joint Venture

Magna is a Canadian automotive supply giant and LAN Manufacturing is a minority supplier. The new venture will have a capital investment of $18.1 million at the Bedrock-owned industrial site. The seating plant will make seats for Ford Motor Co. trucks and SUV’s. The company is expecting to start production at the existing 296,000 square foot building in second quarter of 2023. The lease with the joint venture company LM Manufacturing will start in May for the facility.

“Thanks to Bedrock we have a great place to call home for our joint venture. It’s exciting to think about the opportunities the joint venture can deliver, especially creating new jobs in the Detroit area.” Sylvester Hester, president and CEO of LM Manufacturing stated in a statement.

Redemption after Sakhti’s Failure

Bedrock acquired the former Sakthi Industrial Campus in September 2020. They have expanded the industrial footprint since then. Sakthi closed the plant in 2019. Their former CEO was in a legal trouble. The company supplied knuckle and steering arms at the plant just five years before folding. Sakthi’s failure was a considerable blow for the city and Mayor Mike Duggan. The Mayor was highly optimistic of Sakhti’s success at the time of groundbreaking ceremony. However, the Manga-LAN expansion plans are signaling a revival of the site.

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    “This announcement is the latest sign of the resurgence of Detroit’s auto manufacturing industry and expanding opportunity for Detroiters. We are fortunate to have this team come together to re-occupy the former Sakthi campus, bringing nearly 400 jobs to an area of the city that needs them and making the hiring of Detroit residents a priority”. Detroit’s mayor Duggan said in a Bedrock news release.

    Michigan Business Development Program

    The project is supported by a $2 million Michigan Business Development Program grant from the state. MEDC officials said the grant was needed to convince the company to open the plant in Detroit as they were also looking for other options. Moreover, the jobs will pay an average of $900 per week plus benefits.

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