Rolls-Royce plans to invest around $600m in modernising manufacturing operations at its Indianapolis facility.
Part of the monies will be dedicated to technology research.
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Considered to be one of Rolls-Royce’s largest investments in the US, the upgrade will involve bringing new manufacturing and assembly processes to the site.
The Indianapolis factory has been operational for 100 years and the renovation will affect the entire site.
Under the investment agreement, Rolls-Royce will receive around $35m in state and city incentives, such as conditional tax credits and a skills enhancement grant through the Indiana Economic Development Corporation (IEDC).
Both Rolls-Royce and the City of Indianapolis have agreed in principle to amend the company’s current real and personal property tax abatement record, with final approval pending from the Metropolitan Development Commission.
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By GlobalDataRolls-Royce North America president and CEO Marion Blakey said: "Our new facility will be a state-of-the-art manufacturing centre that combines modern production systems and machinery with a highly skilled workforce.
"This investment ensures that we can increase our competitiveness in the market, which will benefit both our customers and Rolls-Royce."
Indiana Governor Mike Pence said: "Indiana leads the nation in advanced manufacturing, and Rolls-Royce has been an integral part of our state’s industry for the past 100 years.
"As the company evaluates its future and looks to remain competitive across the globe, Rolls-Royce is choosing the State of Indiana for this investment because we offer the business-friendly climate needed to succeed."
Rolls-Royce employs 4,000 people at its Indianapolis facility to design and produce engines for military and commercial aircraft, as well as marine propulsion systems.
It invested around $40m in equipment and improvements at the Indianapolis facilities in 2013.
Image: Workers at the Rolls-Royce manufacturing facility in Indianapolis, US. Photo: courtsey of Rolls-Royce.
