General Motors Co. plans to open a new supplier park in Arlington, Texas, a move expected create 850 new jobs in the U.S., some of which will replace positions in foreign GM facilities.

The supplier park will have two industrial manufacturing and warehouse buildings. Covering over 1.2 million square feet, GM said the operation will have 1,250 total employees; roughly 600 of the new positions created will replace work currently done outside of the U.S., according to a statement.

“Through strong supplier and community relations, we’re able create new supplier parks to generate significant benefits to our manufacturing operations and the communities in which we operate,” Steve Kiefer, GM senior vice president of global purchasing and supply chain, said in a statement. “This new supplier park will create improved logistics efficiency and coordination, while also bringing significant employment opportunities to Arlington.”

GM’s Arlington Assembly plant builds the Chevrolet Tahoe and Suburban SUVs as well as the GMC Yukon, Yukon XL and Cadillac Escalade. GM said placing supplier parts near plants save money by reducing transportation costs and boosting communications.

“General Motors has been a part of the American Dream in Arlington from the beginning,” said Arlington Mayor Jeff Williams in a statement. “In fact, the opening of the assembly plant in Arlington in 1954 was one of the key igniters of our city’s incredible population and economic growth. And now, more than 60 years later, GM continues to be a critical foundation of Arlington’s economy.”

Twitter: @Ian_Thibodeau