Subaru to add 350 jobs, $158M expansion of Lafayette plant

Construction will begin this summer.

Posted: Feb 26, 2020 10:07 AM
Updated: Feb 26, 2020 12:28 PM

LAFAYETTE, Ind. (WLFI) — Subaru of Indiana Automotive announced Wednesday the plant will construct a new $158 million service parts facility and a transmission assembly shop. In total, the project will generate 350 new jobs.

Construction will begin this summer. According to a news release, the service parts facility will be a stand-alone building and the transmission assembly shop will be added on to the existing plant. 

“We’re proud to continue investing in Indiana,” said Scott Brand, senior vice president of administration and quality. “We also appreciate the tremendous support these plans have received from the state, Tippecanoe County and the city of Lafayette.”

More than 6,000 employees work at the Lafayette manufacturing plant, the only one outside of Asia. The Ascent, Impreza, Legacy and Outback are all produced at the facility off State Road 38.

“Our production levels have tripled over the past 10 years,” said Brand. “These new projects are exciting growth opportunities to help us meet increasing customer demand.”

"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."

Pending approval, the Indiana Economic Development Corporation will offer SIA up to $2.65 million in conditional tax credits from the Hoosier Business Investment 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. Accoding to a news release, these tax credits are performance-based. The city of Lafayette and Tippecanoe County will offer additional incentives.

The new investments are among several that have been made since the plant originally opened. According to the news release, the company invested $140 million to support production of the three-row, crossover Subaru Ascent. In December, a $4.2 million Technical Training Center opened on its campus. It includes a simulated factory floor and provides associates with the skills needed for lifelong careers in advanced manufacturing. 

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