Rolls-Royce (IW 1000/193) is investing nearly $600 million to modernize its manufacturing operations in Indianapolis, the company announced on Oct. 5.
This investment – the largest by Rolls-Royce in the U.S. since the company bought the former Allison Engine Company in 1995 – will include a major renovation of the existing facilities. Upgrades will include new manufacturing and assembly operations that will match standards already present in many other Rolls-Royce facilities in Indiana and globally.
“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, CEO, 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. The company employs 4,000 people in Indianapolis, with 1,050 working in production and nearly 1,400 engineers
Engines designed, assembled and tested at Rolls-Royce in Indianapolis power U.S. Department of Defense aircraft, civil helicopters, regional and business jets, and power systems for U.S. Naval vessels. These include the F-35B Lightning II; C-130J Super Hercules; V-22 Osprey; Global Hawk and Triton UAVs; various commercial helicopters and the new naval Ship-to-Shore Connector program. Also at this location is an advanced aerospace technology research and design unit which is known as LibertyWorks.
The five-year modernization plans will also consolidate operations and significantly reduce utility costs.
“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 will receive approximately $35 million in State and City incentives. They include conditional tax credits and a skills enhancement grant. Rolls-Royce and the City have agreed to amend Rolls-Royce’s existing real and personal property tax abatement agreement. All of these incentives apply to the facility investment and technology development that will be incorporated into future Rolls-Royce products.