Subaru of Indiana Automotive Inc. in Lafayette says increased demand is sparking massive expansion plans. The company says it will invest $140 million to increase production and add more than 1,200 jobs by 2017. SIA says the move will ultimately increase capacity by 100,000 units per year and bring its work force to around 5,000. The project marks the latest example of momentum for the automaker. In 2013, the company announced a $400 million expansion involving a new paint shop and upgrades to its engine assembly and stamping operations.
The Lafayette SIA plant is the automaker’s only production facility outside Japan. It produces the Subaru Outback, Legacy and Toyota Camry. It currently employs about 3,800 workers and produces about 300,000 vehicles per year.
SIA Executive Vice President Tom Easterday says the move will have a ripple effect throughout Indiana. The company has 28 direct suppliers in the state and many more indirect suppliers that he says "will grow right along with us."
The news comes days after Governor Mike Pence returned from an economic development mission to Japan.The trip included an announcement from Magnolia Automotive Services LLC, a subsidiary of Toyota Tsusho Corp. The automotive industry supplier is planning to invest $4.4 million into a new operation at the River Ridge Commerce Center and create more than two dozen jobs. The state is home to more than 250 Japanese business facilities that employ more than 52,000 workers.
The Indiana Economic Development Corp. offered SIA nearly $8 million in conditional tax credits and training grants based on its job creation plans. The city of Lafayette and Tippecanoe County will also consider incentives.
SIA Executive Vice President Tom Easterday says dozens of suppliers in Indiana will “grow right along with us.”