New engine plant to build 'big-bore' diesels for trucks

International Truck and Engine Corp. will assemble its new "big-bore" truck diesel engines at a new 300,000-square-foot plant near its existing Huntsville plant - International Diesel of Alabama LLC.

The plant is at Jetplex Industrial Park near Huntsville International Airport.

The engines will serve the Class 8 heavy-duty truck market, the largest commercial truck segment in North America.

"Huntsville, Alabama, is going to be the home of the new big-bore engines," said Jack Allen, president of International Truck and Engine's Engine Group, in announcing the project Wednesday afternoon.

About 175 employees are expected to work at the new Huntsville plant, where full production will begin in the spring of 2008.

The company isn't disclosing its investment cost in its new facility, which will be built about a quarter of a mile northwest of the existing plant.

"We don't make decisions like this lightly," said Allen, adding that the company carefully evaluated all of its options for plant locations.

Huntsville was selected because of its strong work force and the track record here of building high-quality engines at a competitive cost, said Dan Ustian, president and CEO of Navistar International Corp., the parent company of International Truck and Engine, in a prepared release.

Gov. Bob Riley also gave credit to the dedication of workers at the Huntsville plant, saying, "It is because of you." Riley said Ustian told him in a recent telephone conversation that the Huntsville plant is "38 percent more cost effective and efficient" than International's other engine plant in Indianapolis.

The employees' "dedication, commitment and get 'er done attitude is why we're assembled here today," said Donna Miller, the plant manager of International Diesel of Alabama LLC, a wholly owned subsidiary of International Truck and Engine Corp.

The company "chose a great location with great people to make a great product," said Jacob Thomas, vice president of the Big Bore Diesel Engines Business Unit.

The project is "another example that when we work together, we make this a better community and make this state a stronger state," said U.S. Rep. Bud Cramer. He, Riley and Brooks Kracke, the director of Jetplex Industrial Park, traveled to Chicago earlier this year to discuss the Huntsville location with Ustian and International executives. Kracke has been working with company officials on the new facility for this last year.

The engines to be produced at the assembly-only operation here will be the largest in International's MaxxForce family of commercial-truck diesel engines.

"There's a lot of buzz about this in the industry," said Thomas. "I have never seen as much anticipation and excitement about a product before" among dealers, customers and competitors.

"International has been a great partner for us," said Jeff Sikes, the chairman of the Huntsville-Madison County Airport Authority board of directors, which oversees the operations of the airport, industrial park and the International Intermodal Center. "We're excited that the industrial park is the location for the company's newest, technologically advanced product."

The 700,000-square-foot International Diesel plant, on James Record Road to the east of the airport, started production in 2002 and builds engines for International trucks and for Ford trucks and vans.

Miller said that since operations in Huntsville began in 2002, more than 375,000 V-6 and V-8 diesel engines have been built at the plant.

That plant has 575 full-time and temporary employees.

Asked about the prospects of finding qualified employees in an area with low unemployment, Allen said, "Our experience has been, if you provide the right work environment ... and pay fair and competitive wages, the people will come."

Riley said the state's incentive package includes about $29 million in tax abatements provided by state law.