New Flyer of America Inc. announced that it is investing approximately $28 million for capital equipment and building preparations to establish a new part fabrication facility in Shepherdsville, Ky.

The 300,000-square-foot facility will fabricate parts for the manufacture of New Flyer transit buses, MCI motorcoaches, and spare parts for NFI Parts. Production is expected to commence during the second quarter of 2018 and, once fully operational by December 2019, the facility expects to employ up to 550 people.

The new facility, situated in Bullitt County, will be supported by tax incentives through the Kentucky Business Investment program. New Flyer will also receive resources from the Kentucky Skills Network.

The Shepherdsville facility will also provide additional U.S. content to assist in complying with the increased Buy America requirements under the 2015 FAST Act.

NFI Group currently employs 176 people at Parts Distribution Centers in Louisville and Hebron in Kentucky.