Trailerbodybuilders 12815 San Antonio Economic Development Foundation Navistar

Navistar planning to build $250M facility in San Antonio

Sept. 25, 2019
Navistar plans to spend more than $250 million to build a new manufacturing facility in San Antonio TX.

Navistar, which makes International trucks, plans to spend more than $250 million to build a new manufacturing facility in San Antonio TX, delivering 600 new jobs to the area.

The investment is contingent on finalization of various incentive packages, according to Navistar, which said it expects to break ground on the property later this year and begin production there in approximately 24 months.

“Over the last five years, Navistar has made significant investments to improve our position in the market,” said Troy Clarke, Navistar chairman, president and chief executive officer. “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.”

Navistar said the new plant will have the flexibility to build Class 6-8 vehicles, complementing its existing assembly manufacturing footprint, which includes truck plants in Springfield OH and Escobedo, Mexico. The investment builds on the company’s recently revealed plan to invest $125 million in the Huntsville AL engine plant to produce next-generation, big-bore powertrains developed in the alliance with TRATON.

The commercial vehicle maker announced its plans in conjunction with the San Antonio Economic Development Foundation (SAEDF), which also recently received a commitment from Toyota to invest nearly $400 million in its San Antonio assembly plant.

“San Antonio is winning,” said Ron Nirenberg, mayor of San Antonio, “And we are committed to creating even more opportunity for every citizen to win, too. Navistar is one of the world’s most innovative companies and we share a vision for the future of our region.”

The manufacturing industry currently has a $40 billion annual economic impact on the San Antonio region, according to SAEDF, which expects that number to continue growing with the recent investments.

SAEDF projects the economic impact of the Navistar facility to reach $5.6 billion over 10 years.

“Thousands of people in our county make their living in manufacturing,” said Bexar County Judge Nelson Wolff. “These are the kinds of jobs that not only provide a good living, but can change a family’s circumstances for generations.”

The San Antonio City Council is expected to consider an incentive package for Navistar’s prospective investment in the city Oct 31. SAEDF said Bexar County also is considering an incentive package to assist the company’s growth.

Navistar said the Texas site is situated on a critical corridor, along Interstate 35, which links its southern United States and Mexico supply bases, allowing for significant logistic improvements, and resulting in lower cost and enhanced profitability.

“This investment by Navistar is paramount to Texas’ success in growing our diverse and highly skilled manufacturing workforce,” Texas Gov Greg Abbott said. “The Lone Star State is the new frontier in innovation and I am confident that this partnership will usher in even greater economic prosperity for our state.”

About the Author

Informa Commercial Vehicle Staff