INDIANAPOLIS — Allison Transmission plans to invest more than $400 million in an expansion project that will create more than 300 new jobs through 2020.
State, city and company officials on Friday broke ground on its new Innovation Center in Indianapolis.
"Allison Transmission has deep roots in Indiana, and I couldn't be more excited about the company's continued commitment to driving innovation right here at home in the heart of the heartland," Gov. Eric Holcomb said. "The increased investment we're celebrating today makes Allison, our state and our people well-positioned for future growth. I'm confident that as a global player in Indiana's high-tech success, Allison will continue to lead the way and provide more quality career opportunities for future generations of Hoosiers."
Among the updates for the expansion project are a new Vehicle Environmental Test facility in Indianapolis, building the new Innovation Center and expanding its core business.
The VET, expected to be operational by 2020, will include two environmental chambers capable of simulating temperature extremes, altitude and on-road conditions that will allow testing for regulatory compliance, on-board diagnostic development and performance improvements for vehicle optimization.
The Innovation Center, which is expected to be finished in 2021, is part of the company's commitment to developing advancements for alternative fuel and electric vehicles.
"The concepts being generated and simulated in this state-of-the-art facility will allow us to bring new technology and products to market more efficiently and faster that add value to our customers, partners and suppliers," David Graziosi, president and CEO of Allison Tranmission, said. "All of this was made possible because of a great partnership with the state of Indiana, city of Indianapolis and town of Speedway."
Allison Transmission employs more 2,900 people worldwide, including approximately 2,600 in Indiana.
Among the 300 new jobs being created are positions in engineering, purchasing and marketing, sales and service.
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"Allison Transmission has been a global leader in innovation, advanced manufacturing and technology for more than 100 years," Indianapolis Mayor Joe Hogsett said. "This expansion further solidifies the imprint Allison has made on Indianapolis — and will continue to make for generations to come — attracting top talent for good-paying jobs right here on the west side of our city."
The Indiana Economic Development Corporation offered the company up to $7 million in conditional tax credits and up to $50,000 in conditional training grants based on the company's plans to expand and invest in innovation in Indiana. The tax credits are performance-based, which means until people are hired, the company is not eligible to claim incentives.