Japanese automaker Subaru has announced plan to invest $140m in its Indiana plant in the US to boost its production capacity by 100,000 units per year.
The plant currently produces 300,000 units. The investment will be made by Subaru of Indiana Automotive (SIA), the wholly-owned subsidiary of Japan-based Fuji Heavy Industries.
The Indiana facility is the lone plant that the company has outside its home country Japan, and it plans to upgrade its existing campus at 5500 State Road 38 East with new machinery and equipment to support the expansion.
The plant is expected to build Subaru Outback, Subaru Legacy and Toyota Camry vehicles, which is likely to meet the growing demand for Subaru vehicles in North America.
Expansion of the facility is expected to create 1,204 new jobs by 2017 adding more to the present 3,800 worker force it presently has.
SIA executive vice president Tom Easterday said: "SIA associates do an outstanding job of building superior quality into every vehicle, which has helped propel the Subaru brand to tremendous success in the North American market.
"The substantial increase in production volume at SIA will also result in new jobs and investment by many of our suppliers across Indiana. We greatly appreciate the support of state and local government for this significant economic development project."
The announcement is in line with the revelation made by Subaru CEO Yasuyuki Yoshinaga, who said that the company would start production of a seven-seat SUV at the Lafayette plant after 2017, which will be sold in the North American market.
The Indiana plant is undergoing a $400m expansion, which includes a new paint shop, expansion of the engine assembly, and stamping sections for the production of Subaru Impreza, which is set to be produced by the end of 2016.
The Indiana Economic Development Corporation is also providing SIA up to $7,650,000 in conditional tax credits and up to $250,000 in training grants based on the company's job creation plans.
Image: Subaru Outback is produced in the Indiana plant. Photo: courtesy of Subaru.