The company, which makes accessories ranging from air conditioners to sanitation systems for the RV market, will invest a combined $10 million to increase production capacity at its Elkhart and LaGrange manufacturing operations, according to the Indiana Economic Development Corp.

The investment includes more than $6.8 million to move the company’s refrigerator manufacturing operations from Sweden to Elkhart, creating 241 new jobs, and $3 million to move production from a plant in Mexico—which was lost to a fire in April—to Dometic's LaGrange facility, where it will increase manufacturing capacity of retractable RV awnings. The move to LaGrange will create 116 new jobs, according to the state.

“We’ve never had a doubt. RVs will be back. Elkhart will be back, and will resume its place as a major center of economic strength for our state,” Indiana Gov. Mitch Daniels said.

The company employs 60 associates at its Elkhart operations and plans to begin hiring assembly, welding, maintenance and management associates immediately as the facility is prepared for production launch later in the fall.

“Our growth is a direct result of our product quality and the dedication of our associates,” said Doug Whyte, president of Dometic. “This new RV refrigerator factory in Elkhart allows us to serve over 70% of our customers located within a 50-mile radius.”

Dometic, which originally was founded in 1958 as a division of Electrolux, now has operations in 10 countries and employs more than 4,200 associates. In addition to refrigerators, the company manufactures retractable awnings, climate-control systems and sanitation systems for the RV, automobile, heavy truck and marine markets.

The Indiana Economic Development Corp. offered Dometic up to $1.1 million in performance-based tax credits and up to $320,000 in training grants across the two projects based on the company’s job creation plans. The city of Elkhart approved additional property tax abatement for the project at the request of the Elkhart County Economic Development Corp. The town of LaGrange will consider additional property tax abatement.

Things Looking Up in Elkhart?

Including the Dometic announcement, projects announced for Elkhart County so far this year are expected to create more than 2,000 jobs, according to the Indiana Economic Development Corp. That includes Electric Motors Corp., a manufacturer of electric-power drive systems for heavy trucks, which will partner with RV manufacturer Gulf Stream Coach to invest more than $80 million to establish manufacturing operations in nearby Wakarusa. The partnership holds the potential to create more than 1,600 new jobs.

In a busy week for Elkhart, President Obama visited Navistar International Corp. to announce that Navistar will receive a $39 million grant to manufacture electric trucks, which the company reports will ultimately will create or save hundreds of jobs when full-scale manufacturing at the site commences.

Overall, seven projects in Indiana will receive grants totaling more than $400 million, according to the White House. The applications from the companies and from one university engaged in this technology research anticipate that these awards will create or save thousands of jobs.

The grants are part of $2.4 billion in stimulus funding for 48 new advanced battery and electric-drive projects, which Obama announced in Elkhart this week.