Britain’s Rolls-Royce on Monday said it will invest $584 million as part of a five-year to modernize its manufacturing operations in Indianapolis where it primarily does defense business.
The investment, the largest in the United States by Rolls-Royce since it acquired the former Allison Engine Company in 1995, will be used to replace outdated facilities and accelerate the introduction of new and advanced manufacturing methods.
“Our new facility will be a state-of-the-art manufacturing center that combines modern production systems and machinery with a highly skilled workforce,” Marion Blakey, president and CEO of Rolls-Royce North America, said in a statement. “This investment ensures that we can increase our competitiveness in the market, which will benefit both our customers and Rolls-Royce.”
The facility is Rolls-Royce’s largest in the United States.
The agreement to invest in the facility includes receipt of about $35 million in state and city incentives, Rolls-Royce said. The incentives include tax credits, a skills enhancement grant, and amendment of the company’s real and personal property tax abatement agreement.