Rolls-Royce Holdings Plc is investing close to $600 million in the company's facilities in Indianapolis to ensure that Indiana remains a leader in the aerospace industry for decades to come, according to a press release issued by Rolls-Royce.
The investment is for the modernization of the manufacturing operations and to conduct technology research.
Rolls-Royce said in the press release that the investment, its largest in the U.S., will include major renovations of its existing facilities at Tibbs Avenue and Raymond Street.
The manufacturing and assembly operations will be upgraded to match the advanced standards that are already present in other facilities of Rolls-Royce in Indiana and around the world.
Rolls-Royce's five-year modernization plan will enable the company to become more competitive, according to the press release.
The plan will also consolidate operations and reduce its utility costs.
Marion Blakely, the president and CEO of Rolls-Royce North America, said in the press release that the investment will benefit both the company and its customers.
"Our new facility will be a state-of-the-art manufacturing center that combines modern production systems and machinery with a highly skilled workforce," Blakely said. "This investment ensures that we can increase our competitiveness in the market."
Rolls-Royce adds in the press release that the State of Indiana, the City of Indianapolis, and the United Auto Workers Union (UAW) made the investment possible.
Times Union adds that Rolls-Royce announced in February that it had won a $442 million contract from the military for its Indianapolis plant.
The plant will build lift-fan systems for the military's F-35B fighter jet, which will allow it to hover and land vertically like a helicopter.
Rolls-Royce employs 4,000 people in Indianapolis, according to the Times Union.
This includes about 1,050 production workers and close to 1,400 engineers.
Rolls-Royce said in the press release that they will receive $35 million in state and city incentives as part of the investment agreement.
The agreement also includes conditional tax credits and a skills enhancement grant through the Indiana Economic Development Corporation.
Rolls-Royce and the city also agreed in principle to amend the company's existing real and personal property tax abatement agreement, according to the press release.
A final approval is pending before the Metropolitan Development Commission.
