Navistar, a leading maker of commercial trucks and buses, announced it will be making a capital investment of more than $250 million to build a new manufacturing facility in the state of Texas. The investment, which is contingent on finalization of various incentive packages, will bring approximately 600 jobs to the San Antonio area.
"Over the last 5 years, Navistar has made significant investments to improve our position in the market," says Troy Clarke, Navistar chairman, President and Chief Executive Officer. "This investment will create a benchmark assembly facility to improve quality, lower costs and provide capacity to support anticipated industry growth, as well as market share gains."
The new manufacturing plant will have the flexibility to build Class 6-8 vehicles, complementing Navistar's existing assembly manufacturing footprint, which includes truck assembly plants in Springfield, OH, and Escobedo, Mexico. The new investment builds on Navistar's recently announced plans to invest $125 million in the Huntsville, AL, engine plant to produce next-generation, big-bore powertrains developed as part of the alliance with TRATON.
The Texas site is located on a critical corridor, along Interstate 35, which links Navistar's southern United States and Mexico supply bases, allowing for significant logistic improvements, resulting in lower cost and enhanced profitability.
"This investment by Navistar is paramount to Texas' success in growing our diverse and highly skilled manufacturing workforce," says Governor Abbott. "The Lone Star State is the new frontier in innovation and I am confident that this partnership will usher in even greater economic prosperity for our state."
"We are so proud to have a company like Navistar, a leader in vehicle innovation, in San Antonio," says Mayor Ron Nirenberg. "It shows that our strategy to grow our advanced manufacturing sector is working."
"The county has, for many years, been touting the strength of our Texas-Mexico region as a platform for vehicle production," says Judge Nelson Wolff. "Navistar's decision to locate their newest facility here is just the latest affirmation that our community is uniquely situated to host world-class companies in advanced manufacturing industries. We are thrilled to have them in Bexar County."
Navistar plans to break ground on the property later this year and anticipates production to begin approximately 24 months later.