Rolls-Royce To Spend $600M Updating Indy Plant

Oct 5, 2015

Credit the.urbanophile / https://www.flickr.com/photos/urbanophile/8557789591

Rolls-Royce North America has announced a new $600 million investment project in Indiana.

President and CEO Marion Blakey says the aerospace industry leader will spend years modernizing its manufacturing operations on Indianapolis’ southwest side.

“I think it’s going to be over the next four or five years to get it done,” Blakey says. “It takes a while to rebuild, especially because you’ve got to keep the production lines going and continue to make engines all while this is going on.”

Blakey says it's the largest investment by Rolls-Royce in the U.S. since the company bought the former Allison Engine Company in 1995.

Blakey says the modernization will enable Rolls to become more competitive in the industry.

“Maintaining old, inefficient, really World War II facilities is incredibly tough on the environment, certainly on Rolls Royce’s bottom line and it’s been holding us back in terms of being really competitive,” Blakey says.

Company officials say simply maintaining the existing facility would cost $180 million.

Much like new investment in West Lafayette’s Purdue Research Park, however, the Indianapolis changes won't create any new jobs.