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Bombardier Aerospace will expand its footprint in Wichita.
The Bombardier Learjet site will soon add a paint facility, customer delivery center, production flight test facility and expanded production hangars for the final assembly of the Learjet 85 midsize jet.
The new jet will be the largest, fastest, longest-range Learjet aircraft to date.
Governor Mark Parkinson's office said the governor finalized the agreement with senior executives from the company at the Farnborough International Airshow in England last week.
Parkinson said Kansas was at risk of losing the plane-maker to other states.
"At the air show, I would go into a meeting with one of our employers and when I would walk out, there would be a line of governors from other states trying to take our employers away."
Company leaders wouldn't say who they were being courted by, but Parkinson said competition is coming from other southern states, China and Mexico.
Parkinson joined Bombardier Business Aircraft President Steve Ridolfi, and Bombardier Vice President and General Manager David Coleal at an unveiling event Friday morning in Wichita. City, state and county leaders also attended.
The new deal includes creating 600 new jobs for Wichita's production of the Lear-85 and a promise that no current projects will be moved out of state. In exchange, the company gets $27 million in incentives from the state.
The Bombardier Learjet facility is to the northwest of Mid-Continent Airport.
The Learjet 85 is on track to be in service by 2013. It will be the largest jet ever produced by the company.