SIA Details Expansion Plans

The Indiana Economic Development Corporation offered Subaru of Indiana Automotive, Inc. up to $9,500,000 in conditional tax credits and up to $500,000 in training grants based on the company's job creation plans.

updated: 5/8/2013 12:37:37 PM

[UPDATED] SIA Details Expansion Plans

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 Easterday believes there are enough workers to match the manufacturer's continued growth.

Japan-based Fuji Heavy Industries Ltd. is planning to invest up to $450 million in a massive expansion at its Subaru of Indiana Automotive Inc. plant in Lafayette. The automaker says it will add 900 jobs by 2016 and build the Subaru Impreza at the Tippecanoe County operation. SIA Executive Vice President Tom Easterday says sites in Mexico and Japan were also considered.

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The plant already employs more than 3,600.

May 8, 2013

News Release

LAFAYETTE, Ind. (May 8, 2013) - Governor Mike Pence joined executives from Subaru of Indiana Automotive (SIA), a subsidiary of Japan-based Fuji Heavy Industries, Ltd., today to announce the company's plans to expand its operations and add production of the Subaru Impreza here, creating up to 900 new jobs by the end of 2016.

The company will invest between $400-$450 million to build the Impreza at SIA and expand the plant's production capacity by approximately 100,000 vehicles annually. This will include construction to grow SIA's total footprint on its 832-acre Lafayette campus by more than 500,000 square feet. The project will also involve the installation of new equipment, primarily in the paint and body assembly sections as well as changes to improve overall process flow. Construction is slated to begin this fall and is expected to be completed by the end of 2016.

"We are proud that Indiana will be home to the continued investment of a world-class company like Subaru," said Pence. "With our competitive tax climate, strong workforce and unmatched infrastructure, the world recognizes that the Hoosier State is open for business."

Incorporated in Indiana in 1987, SIA has produced more than 3.9 million vehicles since it began production in 1989. This includes a company record of 271,583 vehicles in its fiscal year that ended on March 31, 2013.

"The success of the Subaru brand can be credited, in part, to the dedication of SIA's highly-skilled associates," said Tom Easterday, executive vice president of SIA. "Our associates are very excited about the opportunity to build the Subaru Impreza at SIA, and will remain committed to the same high level of quality, safety and teamwork that goes into every Subaru built at SIA."

Subaru models currently produced at SIA include the Subaru Outback, Legacy and Tribeca. The Subaru Impreza, which is currently built only at Subaru's Yajima and Main plants in Japan, is powered by Subaru's 4-cyliner, horizontally-opposed BOXER engine and equipped with symmetrical all-wheel drive.

The Indiana Economic Development Corporation offered Subaru of Indiana Automotive, Inc. up to $9,500,000 in conditional tax credits and up to $500,000 in training grants based on the company's job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The city of Lafayette will consider additional property tax abatement at the request of the Greater Lafayette Commerce.

More than 3,600 Hoosiers work at the company's Lafayette campus, with more than 600 workers added in the last four years alone. In 2012, more than half of all Subarus sold in North America were built at SIA. Subaru set its fourth consecutive year of record sales in the U.S. market in 2012.

"A lot of us can remember when it was first announced that Subaru was going to locate in Lafayette and what that would mean for our economy," said Lafayette Mayor Tony Roswarski. "They have far exceeded any of our expectations. And today they will do that again with this announcement which is the largest in our and their history. We are privileged to be a partner with Subaru, their management here and in Japan and every associate on this momentous occasion. I couldn't be more pleased with their continued confidence in our community and look forward to our shared growth and prosperity."

Today's announcement marks SIA's second major expansion in Lafayette in less than a year. In May 2012, the company made plans to invest $75 million to increase SIA's Subaru capacity from 156,000 to 180,000 units annually with no overtime, creating up to 100 new jobs by 2014. As part of the expansion, construction is currently underway on a 52,000 square-foot addition to SIA's body assembly section.

About SIA
Subaru of Indiana Automotive, Inc. (SIA), a subsidiary of Fuji Heavy Industries, Ltd., is the home of North American Subaru production. Models built at the Lafayette, Indiana plant include the Subaru Legacy, Outback and Tribeca. SIA also produces the Toyota Camry under contract with Toyota. SIA employs over 3,600 Associates, and every Associate is committed to quality, safety and environmental stewardship. An industry leader in environmental stewardship, SIA was the first auto assembly plant in America to achieve zero landfill status, and SIA's entire 832- acre site has been designated a Backyard Wildlife Habitat by the National Wildlife Federation. SIA's community outreach programs include providing charitable contributions and corporate sponsorships, hosting charitable events on-site, donating vehicles and vehicle parts to educational institutions and encouraging Associate volunteerism, which supports hundreds of non-profit organizations and schools throughout Indiana annually. SIA was the recipient of the 2012 Governor's Award for Corporate Service. For more information, visit www.subaru-sia.com.

About IEDC
Created in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Mike Pence. Victor Smith serves as the Indiana Secretary of Commerce and Eric Doden is the president of the IEDC.

The IEDC oversees programs enacted by the General Assembly including tax credits, workforce training grants and public infrastructure assistance. All tax credits are performance-based. Therefore, companies must first invest in Indiana through job creation or capital investment before incentives are paid. A company who does not meet its full projections only receives a percentage of the incentives proportional to its actual investment. For more information about IEDC, visit www.iedc.in.gov.


Source: Indiana Economic Development Corp.

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