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Yesterday, Illinois Gov. Pat Quinn announced a $12 million state business investment package for Nippon Sharyo U.S.A. Inc. to help support the company’s $35 million investment to establish a rail-car manufacturing facility in Rochelle, Ill.

The rail-car builder plans to construct a 4,000-square-foot manufacturing plant and relocate its U.S. headquarters to Rochelle from Arlington Heights, Ill. The new facility will enable Nippon Sharyo to meet the Federal Railroad Administration’s Buy America requirements and compete for contracts to assemble high-speed rail cars.

In addition to the business investment package, the Illinois Department of Transportation will provide $5 million to help fund the construction of a rail spur from BNSF Railway Co.’s mainline to the new factory.

In August, Metra awarded Nippon Sharyo a $585 million contract to build its next generation of passenger-rail cars. The commuter-rail agency plans to purchase 160 cars from Nippon Sharyo during the next five years.