Navistar, which has an engine plant in Huntsville, will expand its operations here with the addition of a gear box and engine manufacturing facility.

The Huntsville City Council approved an agreement with the company for the $125 million plant that will create some 145 jobs. Navistar employs 126 workers at its diesel engine plant near Huntsville International Airport. The new facility will be adjacent to the engine plant.

“The Huntsville facility is an important part of Navistar’s manufacturing footprint, and we look forward to the new opportunities this investment allows,” said Lyndi McMillan, Navistar’s director of business communications. “This proposed expansion would increase the company’s capacity to continue to build its International A26 engine as well as produce its next-generation big-bore diesel engines in Alabama.”

Construction is expected to start next year with completion scheduled for December 2021. It will begin operations by the end of September 2022, according to the agreement.