WARRENVILLE, Ill. (Sept. 8, 2010) — Navistar, Inc., Chairman, President and CEO Dan Ustian announced that the company will be moving to Lisle, Ill., at the former Alcatel-Lucent East campus on Warrenville Road, and credited Illinois Gov. Pat Quinn and Attorney General Lisa Madigan with clearing a path for the company to retain or create nearly 3,000 permanent jobs over the next several years along with more than 400 construction jobs.
The company will invest $110 million dollars in the 1.2 million-square-foot Lisle headquarters, which will include executive management, business operations and product development. Core features of the technology center once envisioned for the Lisle campus will move, possibly to the Melrose Park facility as part of a contemplated $80 million investment. Another approximately $15 million will be invested in a new parts facility, the location of which is still being finalized, but will be in the Northern Illinois area. Combined, Navistar will be investing $205 million in Illinois.
“Governor Quinn and Attorney General Madigan showed great leadership in working with Navistar and the community to make it possible for us to move into this world-class campus and to create economic opportunities for the whole region,” said Ustian. “We appreciate them standing up for us.”
On May 25, citing delays and potential legal challenges from a small group of opponents of the Lisle headquarters project, Navistar ceased participating in the Lisle Planning and Zoning process. In response to the news, as dozens of communities from around the country contacted Navistar to lure the company to move their headquarters to their locales, Gov. Quinn and Attorney General Madigan met with Navistar executives to offer assistance to keep Navistar in Illinois.
The governor’s staff and assistant attorneys general also met with the opponents of the project and their lawyer to explore ending the dispute. Gov. Quinn, meanwhile, directed the Department of Commerce and Economic Opportunity to work with Navistar on a package of incentives including the EDGE program which provides tax credits for firms creating/retaining jobs and making significant capital investments. In all, the Quinn administration committed an investment package of up to nearly $65 million.
“Navistar knows that there is no better place to expand its operations than Illinois, and we tailored a targeted investment package to meet the company’s needs and keep thousands of people working,” said Governor Quinn. “By being innovative and aggressive, we’re seeing significant investment in Illinois, which is creating more jobs and moving our economic recovery forward.”
Ustian thanked Mayor David Brummel of Warrenville, where the company’s current headquarters is located, for being a great partner for business. Ustian said, in addition to Quinn and Madigan, several key local officials provided critical support to the project.
“I thank DuPage County Board Chairman Bob Schillerstrom and Lisle Mayor Joseph Broda for their tireless efforts to secure Navistar’s world headquarters for DuPage County and Illinois from the very beginning. We also thank DuPage County Forest Preserve President Dewey Pierotti for working hard to make this day possible,” Ustian said. “Economic development support is more than just incentive tax credits, it is creating a welcoming attitude from the top, through every level of government and the business community. Our announcement today is an example of how it can work.”
Ustian said the new campus will be a customer showplace that highlights the company’s new integrated product development capabilities. Navistar is a leader in developing commercial trucks, buses and diesel engines that meet tough emissions standards across the globe. In addition, the company is at the forefront of new commercial vehicle technology. Among the cutting edge products that will be developed at the campus are hybrid and electric vehicles and military vehicles, which save the lives of U.S. Troops in Iraq and Afghanistan.
Most importantly, the employees who will stay and grow in Lisle, DuPage County and the Chicagoland region are involved in the community. Navistar has been lauded for its relationships with many local and national charities. Navistar employees have supported Junior Achievement, The DuPage Children’s Museum, March of Dimes, Operation Support Our Troops; provided aid to earthquake ravaged Haiti; established a curriculum for inner-city high school students interested in diesel technology, and helped many other people in need at home and abroad.
“We give back to the community,” Ustian said. “It is who we are and we look forward to contributing to our community for many years to come.”
Navistar International Corporation (NYSE: NAV) is a holding company whose subsidiaries and affiliates produce International® brand commercial and military trucks, MaxxForce® brand diesel engines, IC Bus™ brand school and commercial buses, Monaco® RV brands of recreational vehicles, and Workhorse® brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine service parts. Another affiliate offers financing services. Additional information is available at www.Navistar.com/newsroom.
Media Contact: Jillane Kleinschmidt, 630-753-2462
Investor contact: Heather Kos, 630-753-2406
Web site: www.Navistar.com/newsroom