Rolls-Royce Plans $600M Indy Investment

Posted: Updated:
Rolls-Royce says renovations will begin immediately. Rolls-Royce says renovations will begin immediately.
INDIANAPOLIS -

Rolls-Royce has unveiled plans for a massive investment in Indianapolis. The aircraft engine maker plans to spend nearly $600 million to modernize its Indianapolis operations, which date back to World War II. The company says the upgrades will reduce costs by replacing outdated infrastructure as well as eliminating unused space and consolidating operations. Rolls-Royce North America Chief Executive Officer Marion Blakey says the investment will create a state-of-the-art manufacturing center and allow the company to "become more competitive within the growing aerospace industry."

Rolls-Royce says renovations will begin immediately. The effort includes replacing equipment and infrastructure that the company says dates back to World War II. The manufacturer says the investment is its largest in the United States since buying the former Allison Engine Co. in 1995. The Indiana Economic Development Corp. says the project is one of the largest it has ever announced.

The IEDC offered Rolls-Royce nearly $18.5 million in conditional tax credits and training grants based on the company's planned investment. Earlier this year, the company pushed for the Indiana General Assembly to update the Hoosier Business Investment credit. The organization says the move allowed the state to "compete effectively" for the project.

The project received substantial interest from locations in the U.S. and around the world. "Rolls-Royce is a global aerospace company and really could have made this nearly $600 million investment anywhere in the world," said Governor Mike Pence. "Two years ago, I remember being at a Rolls-Royce board meeting in England and I was seated across the table from the governor of Virginia…this was very competitive."

The project marks the second major investment for Rolls-Royce in recent weeks. The company announced last month that it would become the first tenant in the recently-established Purdue Research Park Aerospace District in West Lafayette. The facility will be built and owned by the Purdue Research Foundation.

Rolls-Royce's investment marks the latest sign of momentum in Indiana's aerospace and defense sector. The IEDC says companies including Raytheon, BAE Systems and Alcoa have announced plans to invest more than $900 million and create more than 1,200 jobs in Indiana in the coming years.

Rolls-Royce North America Chief Executive Officer Marion Blakey says the company chose Indianapolis despite pressure to invest elsewhere.
  • Perspectives

    • Encourage New College Graduates to Explore Careers Locally

      Summertime is my favorite time of year, with all of the outdoor events, concerts and activities in and around Indianapolis. Summer is also a pivotal time of year for thousands of Indiana college graduates as they look forward to moving into the next phase of their adult lives. For many college graduates, the next step after graduation is starting a career. Many graduates from Indiana colleges and universities have also grown up in Indiana. Now they want a change. Perhaps the lure of...

    More

Events



  • Most Popular Stories

    • (photo courtesy of Taylor University)

      Taylor University President to Resign

      The president of Taylor University is stepping down. The university's board of trustees says Paul Lowell Haines has resigned from the position and will leave the Upland campus August 15. A specific reason for Haines' resignation was not given, however the Board Chair Paige Cunningham noted the move was "neither solicited nor encouraged" by the board. Haines graduated from Taylor in 1975. He later held various positions at the university including vice president for...

    • Plans for the land-based casino were announced in November 2015.

      Hoosier Casino Parents Announce Major Merger

      The Nevada-based parents of several Indiana casinos have announced plans to merge. Eldorado Resorts Inc. (Nasdaq: ERI) says it will acquire the outstanding shares of Caesars Entertainment Corp. (Nasdaq: CZR) in a deal valued at more than $17 billion. Eldorado owns the Tropicana Evansville casino, while Caesars owns the Horseshoe casinos in Hammond and Harrison County, as well as Indiana Grand Racing & Casino in Shelbyville and Hoosier Park Racing & Casino in Anderson.

    • Indy to Host National League of Cities Meeting

      Hundreds of Leading Mayors, Councilmembers from Across America Convene in Indianapolis for National League of Cities Meeting Indianapolis will host nearly 300 mayors, councilmembers and other local leaders from across the country for the National League of Cities 2019 Summer Board & Leadership Meeting.

    • (photo courtesy of Dan McGowan)

      New OCRA Pilot Focuses on Quality of Life Mentorship

      A new pilot program from the Indiana Office of Community and Rural Affairs aims to boost quality of life collaboration. The Peer program will match two Hoosier communities with one serving as a mentor to the other to help address the challenges associated with putting a quality of life initiative into action. OCRA says the goal of the program is for local leadership to gather best practices and the tools "to advance an innovative vision."

    • Franciscan Health Details Data Breach

      Mishawaka-based Franciscan Health is providing details of a data breach. The health system says an internal investigation found one of its employees accessed the protected health information of about 2,200 patients "without a business reason."  Franciscan says the vast majority of the affected medical records was limited to demographic information such as name, address, email address, date of birth, phone number, gender, race/ethnicity, the last four digits of...