TERRE HAUTE - Chicago-based GATX Corp. (NYSE: GATX) has announced plans to expand its operation in Terre Haute into a full-scale Midwest maintenance hub. The global railcar leasing company will invest $38.5 million into the project, which will create up to 59 jobs by 2020. 

The Indiana Economic Development Corp. the expansion will allow GATX to complete more railcar maintenance in-house. The company will upgrade its 104-acre location, making the facility its only full-scale service center in the Midwest.

The company has more than 121,000 railcars in its North American fleet. Renovations are expected to begin this year and GATX says it will add up to 30 railcar maintenance spots, increasing the company's ability to service up to 1,100 railcars each year.

The project will also include new finishing and interior lining operations, new rail infrastructure and an expansion of the company's administrative offices.

"The combination of Indiana’s location, rail network and skilled labor provide the right elements to pursue growth at our Terre Haute, Indiana, operations," said James Chapman, vice president of GATX’s North American service centers. "The Midwest has the maintenance demand to support the growth and expanding our operations in Indiana would increase our support for our customers. Our Terre Haute operations have partnered with local high schools, local job fairs and have had success finding skilled labor within the community. This makes Indiana an attractive place to grow."

GATX currently employs 35 workers at the Terre Haute location as well as its mobile maintenance unit in Crown Point. The IEDC is offering GATX up to $400,000 in conditional tax credits. Additional incentives will be considered by the city of Terre Haute.