New Flyer of America Inc. will create up to 550 full-time jobs as it invests $40 million to lease and upgrade a facility for bus parts fabrication in Shepherdsville, Kentucky.

A US subsidiary of New Flyer Industries Inc. (NFI Group), New Flyer of America will build out a 300,000-square-foot facility in Shepherdsville. The $40 million investment includes $28 million for equipment and building preparations and $12 million across a 10-year lease. Company leaders expect to begin work this month and be in full operation by the end of 2019.

The operation will support the company’s efforts to boost in-house production of components, which allows New Flyer to create jobs, increase competitiveness and improve its production processes. The facility will provide fabrication and parts to support all three NFI Group business entities: New Flyer, MCI and NFI PartsTM.

“We are proud to invest in jobs, infrastructure, innovation and manufacturing,” said Paul Soubry, CEO of NFI Group. “By developing our insourcing initiatives, we build on a solid foundation to further create jobs, increase competitiveness and support more sustainable and reliable manufacturing and operations processes. We are proud to expand our presence in the State of Kentucky.”

“New Flyer’s decision to locate in Kentucky further distinguishes the commonwealth as a top location for engineering and advanced manufacturing in the US,” Governor Matt Bevin said. “The significant number of jobs coming to Shepherdsville and surrounding communities through this investment will be a major economic driver for years to come. We thank New Flyer for selecting Kentucky and congratulate officials and residents of Bullitt County on this major announcement.”

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) during a special meeting in November preliminarily approved the company for up to $8.5 million in tax incentives through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.