John Deere broke ground on its new distribution center in Lowell on 234 acres near the Illinois and Indiana border.

The 1.2 million-square-foot warehouse and distribution center is expected to create 150 jobs. It will cost $125 million.

“This new facility is an investment in customer expectations around world-class product support through parts availability for our U.S.-based ag, turf, construction, forestry, mining and turf customers,” said Denver Caldwell, vice president, aftermarket and customer support, in a press release. “Indiana's strong workforce and central location make it an ideal choice for expansion.”

The site was chosen for its proximity to Interstate 65.

“Our state's location as the Crossroads of America makes it the ideal destination for companies of all sizes to serve customers across the U.S. and around the world,” said Gov. Mike Braun, in a press release. “John Deere’s expansion to Indiana is a testament to our business-first environment, our robust manufacturing sector, and our strong pipeline of skilled talent.”

Coldwell Banker Commercial Realty previously reported the sale of the property.

The Indiana facility is part of John Deere's $20 billion commitment to investing in U.S.-based manufacturing during the next 10 years.

“John Deere's new facility in Lake County will contribute to the county’s overall economic development and provide economic opportunities for both the county and its residents,” said Lake County Councilwoman Christine Cid, D-5th. “Once the facility is complete, it will provide good-paying jobs. We welcome developments along the Interstate 65 corridor, such as John Deere, that help contribute to a more resilient commercial tax base throughout the county.”

The Indiana Economic Development Corp. offered $2.5 million in tax credits as an incentive to build here. The credits will be paid once the facility is build and employees are hired.

John Deere also is building a $70 million factory in Kernersville, North Carolina. Excavators that were made in Japan will be built there.

“Our investment in these new facilities underscores John Deere's dedication to strengthening the backbone of American industry and supporting local economies,” said John May, chairman and chief executive officer of John Deere. “We believe in building America, and these projects represent our intent to continue driving innovation and job creation in the United States.”

John Deere based in Moline, Illinois, was founded in 1837.