LAFAYETTE, Ind. (AP) — Subaru says it plans to spend $140 million on expanding an Indiana factory where it expects to add some 1,200 jobs in the next two years.

Company officials announced plans on Monday for its factory in Lafayette, where it builds the Subaru Outback SUVs and Legacy sedans. The plant is Subaru’s only assembly factory outside Japan.

Subaru of Indiana Automotive vice president Tom Easterday says the project will allow the factory to boost production to meet growing demand.

The Lafayette factory now has about 3,800 workers and produces about 300,000 vehicles a year. Subaru says it plans to boost production by nearly 100,000 vehicles a year.