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Subaru plans major expansion in Lafayette

(photo courtesy of Subaru of Indiana Automotive)

LAFAYETTE, Ind. (Inside INdiana Business) — Subaru of Indiana Automotive in Lafayette has announced plans for a major expansion. The automaker says it will invest $158 million to diversify its manufacturing operations and create up to 350 jobs by the end of 2023. The 4.7 million-square-foot facility, which is Subaru’s only assembly plant in the U.S., produces the Legacy, Impreza, Outback and Ascent models, and employs more than 6,000 people in Tippecanoe County.

The Indiana Economic Development Corp. says SIA will build a new service parts facility on the 820-acre campus and expand its plant to add a transmission assembly shop. SIA says it is currently hiring for production positions at the plant.

“We’re proud to continue investing in Indiana,” Scott Brand, senior vice president of administration and quality at SIA, said in a news release. “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.”

The expansion comes more than two years after SIA announced plans to invest $140 million to support the production of the Subaru Ascent and create up to 200 jobs. Late last year, SIA opened its $4.7 million Technical Training Center on the campus as well.

The IEDC plans to offer SIA up to nearly $2.3 million in conditional tax credits and up to $350,000 in training grants, which the company will not be eligible to claim until Hoosier workers are hired for the new jobs. The incentives must still be approved by the IEDC Board of Directors. 

The city of Lafayette and Tippecanoe County plan to 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.”

SIA produces about 410,000 vehicles annually. The automaker has invested more than $2.2 billion in the plant since 1986.