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Area Development - Site Selection, Facility Planning and Workforce Development

Japan-Based Subaru of Indiana Automotive Expands Lafayette, Indiana, Plant Operations

02/27/2020
Subaru of Indiana Automotive, a subsidiary of Tokyo, Japan-based Subaru Corporation, plans to invest $158 million and diversify its manufacturing operations in Lafayette, Indiana. To support its growth, the company plans to create up to 350 new jobs by the end of 2023.

Today’s news comes just over two years after SIA announced plans to invest $140 million in its 4.7 million-square-foot plant to support production of the three-row, crossover Subaru Ascent, adding up to 200 new jobs. Now, the company is investing in its 820-acre campus again, with plans to construct a new service parts facility and expand its plant to add a transmission assembly shop. Since 1986, SIA has invested more than $2.2 billion in its Indiana operations, increasing its annual production to 410,000 vehicles.

The company, which is Subaru Corporation’s only U.S. assembly plant, employs more than 6,000 associates to support production and meet consumer demand for the Subaru Legacy, Impreza, Outback and Ascent models in Indiana.

“We’re proud to continue investing in Indiana,” said Scott Brand, senior vice president of administration and quality at SIA. “We also appreciate the tremendous support these plans have received from the state, Tippecanoe County and the city of Lafayette. Our production levels have tripled over the past 10 years. These new projects are exciting growth opportunities to help us meet increasing customer demand.”

In 2019, SIA also opened a $4.2 million Technical Training Center on its campus. The facility, which includes a simulated factory floor, provides associates with the skills needed for life-long careers in advanced manufacturing. Additionally, a rooftop solar array provides more than half the power needed to operate the facility, while also helping cut its carbon emissions by 47%.

Pending approval from the Indiana Economic Development Corporation (IEDC) board of directors, the IEDC will offer SIA up to $2.65 million in conditional tax credits from the Hoosier Business Investment (HBI) tax credit program based on the company’s planned capital investment in Indiana, and up to $350,000 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 and Tippecanoe County will offer additional incentives.

"Today marks another important day in the relationship between SIA, Greater Lafayette and the state of Indiana," said Lafayette Mayor Tony Roswarski. "This significant investment represents the deep friendship, professional relationship and trust that we all share with each other. This investment will create new opportunities and new beginnings. It speaks well of the tremendous workforce of SIA and the confidence to find new associates to carry on that tradition of excellence. It shows confidence in local and state government to work together and in our local quality of life initiatives to make this a great place for people to live, work and play. We sincerely thank the SIA administration for making this investment and we are committed to making it successful."

"Indiana has long been a national leader in manufacturing because world-class companies like Subaru continue to choose to grow and diversify their operations here in the Hoosier state," Governor Eric J. Holcomb said. "For nearly 35 years, Subaru has been an important partner in supporting Indiana's economy and creating great career opportunities in the community. With this latest commitment, I'm even more confident they’ll continue to play a key role in keeping Indiana on a path to success for generations to come."

SIA is one of more than 324 Japanese business establishments in Indiana that together employ more than 67,000 Hoosiers. Among all U.S. states, Indiana has the largest amount of Japanese investment per capita and is one of only two states that is home to three Japanese automotive original equipment manufacturer (OEM) companies.

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