Rolls-Royce Plans Nearly $600 Million Upgrade To Its Indianapolis, Indiana, Operations-Research Hub
Rolls-Royce’s investment will be used to modernize and upgrade its Indianapolis operations, enabling the company to become more competitive within the growing aerospace industry. The upgrades will reduce costs by replacing outdated infrastructure and equipment, which date back to World War II, and will reduce utility costs by eliminating unused space and consolidating operations. This investment will include a major renovation of the existing Plant 8 at Tibbs Avenue and Raymond Street and installation of new equipment. Renovations are expected to begin immediately.
“Our new facility will be a state-of-the-art manufacturing center that combines modern production systems and machinery with a highly skilled workforce,” said Marion Blakey, president and chief executive officer of Rolls-Royce North America. “This investment ensures that we can increase our competitiveness in the market, which will benefit both our customers and Rolls-Royce.”
“We want to express our sincere appreciation to the state of Indiana, the city of Indianapolis, the UAW and our employees for helping us make this investment in our future possible,” said Phil Burkholder, President of Rolls-Royce Defense Aerospace, North America.
Rolls-Royce recently announced plans to be the first partner in the recently-established Purdue Research Park Aerospace District – an Indiana Certified Technology Park – in West Lafayette. The new 40,000-square-foot facility will house a research and development team for Rolls-Royce, providing greater opportunities for the company to conduct collaborative research with the university while training and recruiting future talent in engineering and aviation.
“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,” said Governor Pence. “This global company had a world of options to consider when evaluating plans for future growth, but Rolls-Royce narrowed in on the state of Indiana for this investment because we offer the business-friendly climate, workforce and strategic university partnerships needed to remain competitive and to succeed in the aerospace and defense industry.”
For 100 years, Rolls-Royce and its predecessor companies have been engineering, designing and manufacturing advanced technology in Indiana. Engines designed, assembled and tested here power U.S. Department of Defense aircraft, civil helicopters, regional and business jets and power systems for U.S. Naval Vessels, including the F-35B Lighting II, C-130J Hercules, V-22 Osprey, Global Hawk UAV, various commercial helicopters and the new naval Ship-to-Shore Connector program. Rolls-Royce also operates an advanced aerospace technology research and design unit in Indianapolis, which is known as LibertyWorks.
The Indiana Economic Development Corporation offered Rolls-Royce up to $17,000,000 in conditional tax credits and up to $1,425,000 in training grants based on the company’s committed investment. During the 2015 session of the General Assembly, the Indiana legislature allowed the IEDC to compete effectively with incentives for this project. In addition, the city of Indianapolis will consider additional incentives at the request of Develop Indy, a business unit of the Indy Chamber.
“During our long relationship with Rolls-Royce, the UAW has always been committed to being part of the solution for our next century of innovation at our manufacturing operations,” said Frank Poynter, bargaining unit chairman of UAW Local 933 in Indianapolis. “This investment, coupled with the most skillful women and men in the world, enables us to be competitive on a global level for decades to come.”
“Indianapolis has emerged as a global competitor in technology and advanced manufacturing, and Rolls-Royce has played an important role in that growth,” said Indianapolis Mayor Greg Ballard. “This is an internationally-renowned company that could have chosen to invest anywhere on the map, and I am very proud that they selected Indianapolis. I look forward to our community’s continued partnership with Rolls-Royce as they engage our talented workforce and use their upgraded facility the bar in aerospace technology.”
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