Dive Brief:
- Rolls-Royce has completed a $1 billion investment in Indiana, enhancing its manufacturing and testing facilities for aircraft engines.
- This follows a $600 million modernization program completed in 2021, focused on upgrading technology and equipment, and an additional $400 million phase to expand engine-testing capabilities.
- The investment marks Rolls-Royce’s largest in the U.S. to date, supported by Indiana Gov. Mike Braun, and aims to bolster job growth and enhance Indiana’s status as a manufacturing and defense hub. The Indianapolis campus is crucial for engines used in U.S. military aircraft.
Dive Insight:
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The investment was partially motivated by a $2.6 billion Air Force contract for manufacturing over 600 engines for the B-52 bomber fleet.
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Rolls-Royce has continued engine production in Indianapolis throughout the renovations and upgrades, with the first operational B-52s expected by 2028.
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President Adam Riddle emphasized that this investment is essential for meeting U.S. national security needs and advancing the company’s goals.
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The initial $600 million phase initiated in 2015 aimed at replacing outdated equipment and aligning with net-zero carbon goals.
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The expanded investment responds to ongoing production delays with the B-52 engines, which have increased costs substantially, as noted by the Government Accountability Office.
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More than 3,500 workers, including union members, are employed at the Indianapolis facility, which leads global production of Rolls-Royce defense engines.
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The Indiana Economic Development Corporation previously supported Rolls-Royce with conditional tax credits and training grants, but further incentives related to the full project remain unspecified.
