Powertrain components supplier Dana is planning to invest about $70m in a new axle manufacturing facility in Toledo, Ohio, US.
The company aims to expand a recently built 100,000 square foot facility on the property to about 300,000 square feet and to employ over 300 associates by 2020.
The plant will be built on the site of the former Willys-Overland Motors facility, where the original Jeep was assembled.
Apart from its partnership with the Jeep brand, the expanded Toledo facility will support axle assembly for another unpecified global automaker.
Dana president and CEO James Kamsickas said: "Dana has remained committed to metropolitan Toledo, its home for nearly 90 years.
"In 2015, we strengthened our commitment to the area by consolidating numerous satellite offices in the region into our expanded World Headquarters and Technology Center in Maumee.
"The investment in this new manufacturing facility is another substantial example of Dana's commitment to the city and our community."
Starting in late 2017, the company aims to assemble improved versions of its Dana 30 and Dana 44 axles, which will provide increased power density and performance in a smaller package. Future axle programs and assembly lines are also possible.
Dana also received financial assistance from the State of Ohio, Lucas County, City of Toledo, Port Authority and First Energy. The location decision is subject to state approvals and financial incentives, which Dana expects to be secured later this month.
Dana light vehicle driveline technologies president Bob Pyle said: "Our Toledo facility will integrate Dana's best global manufacturing practices and advanced operating systems.
"The plant's products, which will feature Dana's latest axle technologies - along with its close proximity to our customers and our World Headquarters and Maumee Technology Center - will benefit our customers, employees, and shareholders."
