Rolls-Royce is set to invest $600m in a bid to modernise its manufacturing operations at its Indianapolis facility and to carry out technology research.

The investment is aimed at replacing outdated facilities and also to introduce new and advanced manufacturing methods.

Moreover, the new development marks the largest investment by the company in Indianapolis since its original purchase from former Allison Engine Company in 1995.

Rolls-Royce North America president and CEO Marion Blakey said: "Our new facility will be a state-of-the-art manufacturing centre that combines modern production systems and machinery with a highly skilled workforce.

"This investment ensures that we can increase our competitiveness in the market, which will benefit both our customers and Rolls-Royce."

Under the new investment, the five-year modernisation plan will cover new manufacturing and assembly operations that meets the advanced standards already present in many other company facilities.

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In addition, the new initiative is aimed at consolidating operations and significantly reducing utility costs.

Rolls-Royce’s Indianapolis facility is engaged in the design and production of engines for a wide range of military and commercial aircraft as well as marine propulsion systems.

"This investment ensures that we can increase our competitiveness in the market, which will benefit both our customers and Rolls-Royce"

According to the company, the investment was made possible by the State of Indiana, the City of Indianapolis and the United Auto Workers (UAW) union.

Indianapolis Mayor Greg Ballard said: "Indianapolis has emerged as a global competitor in technology and advanced manufacturing, and Rolls-Royce has played an important role in that growth.

"This is an internationally-renowned company that could have chosen to invest anywhere on the map, and I am very proud that they selected Indianapolis."

Rolls-Royce will receive around $35m in State and City incentives, including conditional tax credits and a skills enhancement grant through the Indiana Economic Development Corporation (IEDC).

Image: Team member Richard Wilson prepares Rolls-Royce’s AE 3007 jet engine for testing at the company’s manufacturing facilities in Indianapolis. Photo: courtesy of Business Wire.