Navistar has announced it will build a US$250-million truck manufacturing facility in Texas. 

“Over the past 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.”

The new manufacturing plant will have the flexibility to build class 6-8 vehicles, complementing Navistar‘s existing assembly manufacturing footprint, which includes truck assembly plants in Springfield, Ohio and Escobedo, Mexico. The investment will bring approximately 600 jobs to the San Antonio area. 

The new investment builds on Navistar’s recently announced plans to invest US$125 million in the Huntsville, Alabama engine plant to produce next-generation, big-bore powertrains developed as part of the alliance with TRATON.

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

Navistar plans to break ground on the property later this year and anticipates production to begin approximately 24 months later.