The Italian company, which makes filtration equipment, is expanding its operation in the region and said the deal would create 125 jobs at its Tredegar and Llantrisant plants over the next two years. The grant will also ensure a further 134 posts will be secured at Llantrisant.
The news came as a shot in the arm for the Welsh automotive industry amidst the gloom surrounding the MG Rover collapse.
Around 200 jobs have already been lost at Welsh firms after the car maker fell into administration in April.
Just under half of the investment comes from the Welsh Assembly Government, which gave the company £3.75m in regional selective assistance to install new equipment and improve efficiency in its twin plants. Sogefi itself provided the rest.
Emanuele Bosio, managing director of Sogefi, said the workforce at both sites had been a strong factor in convincing the company to invest.
“These attributes have influenced the decision to make this major investment in south Wales.” said Bosio.
Rhodri Morgan, first minister of the National Assembly for Wales, said Sogefi was a “blue chip multi-national with global reach” and that it was a “feather in the cap” for Wales that it had opted to invest £8m in the plants in Tredegar and Llantrisant.
“These two plants have always delivered for Sogefi. Now Sogefi is returning the favour and I am pleased we are able to assist,” Morgan said.
Sogefi runs another factory in Nottingham, and claims to produce equipment for two thirds of the UK's car parc.