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Subaru of Indiana Automotive Invests $75 Million On Plant Expansion In Lafayette, Indiana

Area Development Online News Desk (05/17/2012)
Subaru of Indiana Automotive, a subsidiary of Japan-based Fuji Heavy Industries, Ltd., plans to invest $75 million over the next two years to expand its automotive production in Lafayette, Indiana creating an estimated 100 jobs.

The auto manufacturer said it plans to increase production capacity at its assemble plant, located 5500 State Road 38 East, in order to meet the strong consumer demand for the Subaru Outback and Legacy. Construction on a 52,000 square-foot expansion to Subaru of Indiana body assembly section is expected to begin this summer. The new capacity expansion will enable Subaru to build 180,000 vehicles, compared to the current limit of 156,000 units.

"We are proud but not surprised. Each time I have visited with Subaru leadership they have stressed how pleased they are with the performance and productivity of SIA," said Gov. Mitch Daniels.

"The expansion of SIA's capacity is necessary to meet the growing demand for Subaru vehicles in the North American market," said Tom Easterday, executive vice president of SIA. "The success of the Subaru of Indiana-built Legacy and Outback is the result of innovative design focused on the needs of our customers, a strong reputation for quality and reliability and consistently achieving top safety ratings. At SIA, we have very dedicated associates who do a great job building exceptional quality into every vehicle."

Approximately 3,600 Hoosiers work at the company's 832-acre Lafayette campus, with more than 600 workers added in the last three years. In 2011, more than half of all Subarus sold in North America were built at SIA.

As part of an incentive package, Indiana Economic Development Corporation offered Subaru up to $950,000 in conditional tax credits and up to $50,000 in training grants based on the company's job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The city of Lafayette will also consider additional property tax abatement at the request of the Greater Lafayette Commerce.

"News like this is every city's dream, every mayor's wish. SIA's continuing investments in its facility, its associates and our community strengthen Lafayette, Tippecanoe County and the entire region," said Lafayette Mayor Tony Roswarski. "From the families of associates to local suppliers and the many nonprofits SIA supports, the benefits of today's announcement extend well beyond the manufacturing floor. Those who work at SIA have found more than jobs. They've found careers."

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