Polaris Industries will spend $1.75 million to expand its engine assembly plant in Osceola, Wis., in a move that will create 60 new jobs and retain 200 old jobs.

Wisconsin Gov. Scott Walker announced the expansion Friday, and noted that the state will provide $234,000 in tax credits in order to help Polaris with the expansion.

In a statement, Walker said, “We applaud Polaris for its decision to expand its Wisconsin operations.”

The expansion is a significant turn around from May 2010, when Polaris announced that it planned to close or sell the plant by 2012 and move some operations to Mexico.

Instead, Polaris stepped up its building of motorcycle engines there. That move, plus the rollout of the newly relaunched Indian motorcycle, helped keep 200 jobs at that plant.

With the expansion, Polaris will add 60 more.

Polaris President Morgan Bennett said in a statement “Polaris is thrilled to be expanding our facilities in Osceola and bringing additional jobs to the community.”

Polaris also has factories in Roseau and Wyoming, Minn., Spirit Lake, Iowa, and Monterrey, Mexico. In addition to motorcycles, the Medina-based company makes all-terrain vehicles and snowmobiles.