Navistar International Corp. on Tuesday, Sept. 27, announced that it intends to sign a lease agreement for a manufacturing facility in Northwest Alabama that would further enhance the company’s manufacturing strategy. The company intends to lease a manufacturing facility in the community of Barton, Ala., from The Retirement Systems of Alabama.
Navistar, which would take possession of the facility on Jan. 1, 2012, says it intends to finalize its initial operating and product plans for the facility in the coming months, and expects to disclose those details by yearend. The Barton facility would become Navistar’s third manufacturing plant in the state; the company opened an engine plant in Huntsville in 2002 and expanded with a second engine plant there in 2008.
Navistar says it believes Alabama has proven to be a great place for the company to grow its business and intends to maximize the facility’s underutilized fabrication equipment and other assets to cost-effectively expand manufacturing capabilities and options in North America. The company says it hopes to capture synergies and efficiencies given the close proximity to its two engine plants in Huntsville.
Navistar says local and state government agencies and officials were instrumental in making this an attractive opportunity. The company would retain the existing work force and operations. The company would be eligible to qualify for certain state and local incentives based on achieving certain employment levels and other requirements.