Subaru of America plans to invest $18 million to build and equip a regional distribution center in Lebanon, potentially tripling the scope of its Boone County operations.
The automaker is expected to break ground this month on a 715,000-square-foot facility at Prologis Park Lebanon, a 56-acre undeveloped property east of Interstate 65. It could expand to 900,000 square feet if the company’s sales growth continues.
Subaru now has 80 employees in 300,000 square feet of leased space in Whitestown, said Bryan Brackemyre, executive director of the Boone County Economic Development Corp.
As many as 20 positions may be added at the new parts distribution center when construction is complete next spring.
The Lebanon City Council approved a 10-year property tax abatement for the project in February.
Earlier this month, Subaru of Indiana Automotive announced plans to spend at least $400 million to expand its manufacturing operation in Lafayette, adding 900 workers there over the next three years.
Subaru's U.S. sales have doubled in the past five years, to 357,600 in 2012. More than half of all Subarus sold in North America last year were built in Lafayette, according to the company.
The new distribution center will support the Lafayette manufacturing plant as well as Subaru retailers, said Gary Palanjian, Subaru of America’s vice president of parts and service.
“Subaru has been setting sales records for the past five years, and we are structuring our operations to reflect that,” Palanjian said in a news release.