Navistar announced today it will be making a capital investment of more than $250 million to build a new manufacturing facility in San Antonio. The investment is contingent on finalization of various incentive packages.
“Over the last five years, Navistar has made significant investments to improve our position in the market,” says Troy Clarke, Navistar chairman, president and CEO. “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, Ohio, and Escobedo, Mexico, the company says. The new investment builds on Navistar’s recently announced plans to invest $125 million in the Huntsville, Ala., engine plant to produce next-generation, big-bore powertrains developed as part of the alliance with Traton.
The Texas site is located 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, Navistar says.
Navistar plans to break ground on the property later this year and anticipates production to begin approximately 24 months later.