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Heavy-duty trucks are a key part of Navistar's business.

Heavy-duty trucks are a key part of Navistar's business.(Navistar)

Commercial truck maker Navistar will build a new $250 million manufacturing facility in Texas as part of the Illinois-based company's four-year plan to grow its market share.

The investment, which is contingent on incentive approvals, will create about 600 new jobs in the San Antonio area, the company said Thursday. The state is providing a $2.27 million grant to Navistar from its Texas Enterprise Fund.

Navistar's investment means more than $1 billion in new projects have been announced in recent weeks for the fast-growing San Antonio region. Earlier this week, Toyota said it will spend $391 million on technology upgrades at its Tundra and Tacoma truck plant in San Antonio to go along with a new $400 million factory being built by one of its suppliers in nearby Cibolo.

"Over the last five years, Navistar has made significant investments to improve our position in the market," Navistar CEO Troy Clarke said in a statement. "This investment will ... improve quality, lower costs and provide capacity to support anticipated industry growth."

The new plant will produce a variety of heavy-duty vehicles to support Navistar's existing truck assembly plants in Springfield, Ohio, and Escobedo, Mexico, the company said. Navistar also recently announced plans to invest $125 million in its Huntsville, Ala., engine plant to build next-generation powertrains.

The Texas site is on Interstate 35's transportation corridor, which links Navistar's southern U.S. and Mexico supply bases. Commercial real estate firm JLL worked with Navistar to find the site. The company said the location will help reduce costs and improve logistics.

Bexar County commissioner Nelson Wolff said Navistar's decision validates the region's role in advanced manufacturing.

"The county has, for many years, been touting the strength of our Texas-Mexico region as a platform for vehicle production," Wolff said in a statement. "Navistar's decision ... is just the latest affirmation that our community is uniquely situated to host world-class companies in advanced manufacturing industries."

Gov. Greg Abbott said the state's efforts to create a diverse and skilled manufacturing workforce are paying off. "The Lone Star State is the new frontier in innovation," he said.

Navistar plans to break ground later this year and expects to begin production in two years.

As part of an investor presentation Thursday, Navistar said it expects to produce up to 365,000 trucks and buses this year. It estimates its revenue will be between $10 billion and $10.5 billion.

City and county leaders will vote in October and November on incentives for the plant, according to the San Antonio Economic Development Foundation.

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