Rolls-Royce completes $1B Indiana investment
Rolls-Royce has finished a $1 billion investment in its Indiana manufacturing operations, the company's largest U.S. Investment to date.
Rolls-Royce has completed a $1 billion investment in its Indiana manufacturing and testing facilities. The decade-long project, the company's largest U.S. Investment to date, supports major defense contracts including a $2.6 billion deal to build engines for the U.S. Air Force's B-52 bomber fleet. You can see related production timelines on our fixtures page.
According to a report by Manufacturing Dive, the effort began as a $600 million modernization program focused on technology and equipment upgrades, which concluded in 2021. A subsequent $400 million phase expanded full engine-test capabilities in Indianapolis and West Lafayette.
Investment Phases and Defense Focus
The investment was structured in two distinct phases. The initial $600 million phase started in 2015 and focused on replacing outdated World War II-era equipment with modern manufacturing technology. This phase also involved removing inefficient buildings as part of the company's net-zero carbon goals.
The later $400 million expansion was added after Rolls-Royce won a $2.6 billion Air Force contract in September 2021. This contract is to manufacture more than 600 F130 engines for the B-52 bomber fleet. The new funding expanded full engine-test capabilities specifically to support this and other U.S. Defense contracts.
Adam Riddle, president of defense and CEO of Rolls-Royce North America, linked the investment directly to defense output. "This billion-dollar investment is about more than buildings and test cells." Riddle said in a statement.
Factory Upgrades and Production Timeline
The company continued building engines in Indianapolis throughout the renovations, upgrades, and new construction. The campus now houses new test cells, control rooms, and other upgrades for testing modern, gas turbine engines manufactured on site.
More Rolls-Royce defense engines are built in Indianapolis than anywhere else in the world, according to the company. Over 3,500 people work at the site, including union-backed workers. For more details on the workforce, refer to our squad data.
The production schedule for the new B-52 engines is now set. The first lot of operational B-52s fitted with the new F130 engines is expected to be delivered by the end of 2028. The modification of the entire B-52 fleet is scheduled for completion by 2035.
State Support and Broader Context
Indiana Governor Mike Braun stated the investment supports future job growth and bolsters the state's position as a major manufacturing and defense hub. The Indiana Economic Development Corporation offered conditional incentives based on the initial investment.
| Incentive Type | Conditional Value |
|---|---|
| Tax Credits | Up to $17 million |
| Training Grants | Up to $1.43 million |
It is not clear whether Rolls-Royce received additional incentives for the full $1 billion project.
The investment concluded as the U.S. Air Force navigates broader aircraft and engine production delays. A Government Accountability Office report last month indicated challenges are likely to continue as B-52 engine production begins with what it described as "little to no developmental flight testing." This approach has reportedly raised costs by $3 billion and delayed initial operational capability by over 15 months.
The Indianapolis campus tests and builds engines for U.S. Air Force, Army, and Navy aircraft, including B-52 bombers and refueling drones.
