Oshkosh Corp. [OSK] yesterday announced it is working with the city of Oshkosh on plans to expand the company’s manufacturing facilities in Oshkosh, Wis.
Oshkosh Corp. and the city of Oshkosh have been in good faith discussions since April 2009 on assistance from the city through the creation of a new tax increment financing (TIF) district.
The TIF is pending approval by the Oshkosh Common Council and has the support of the city of Oshkosh and its partners, Chamco Inc., the Oshkosh Chamber of Commerce, the Oshkosh Area Economic Development Corporation and Winnebago County.
Plans center on a new 150,000-square-foot electrocoat (E-coat) painting facility in support of production of the Army’s Family of Medium Tactical Vehicles (FMTV). The company plans to break ground on the new E-coat facility in December, with start up beginning late summer 2010.
“We look forward to working with the city and the state as we move forward on this project, which was outlined in our original proposal to our customer,” Robert Bohn, Oshkosh Corp. chairman and CEO, said in a statement. “It is so important to have support from our community as we continue to build the products that protect the men and women in our military forces. This new, state-of-the-art E-coat facility will complement our industry-leading manufacturing capabilities, and has the potential to significantly increase our operations and further secure our place as a premier manufacturer in the community.”
BAE Systems, currently producing the FMTV, has two electrostatic E-coat stations at its Sealy, Texas facility, one for large components, and one for small components, a company spokesman told Defense Daily. E-Coat is a requirement to build FMTV and is at the heart of its corrosion protection.
Oshkosh was awarded the FMTV five-year requirements contract in August 2009 for the production of up to 23,000 vehicles and trailers, as well as support services and training. The first delivery order is for $280.9 million for the production and delivery of 2,568 trucks and trailers.
FMTV production for initial test vehicles is planned for mid-2010, followed by full production in 2011.
The FMTV contract is on hold while the Government Accountability Office (GAO) considers protests by BAE Systems and Navistar International (Defense Daily, Nov. 19). GAO is expected to reach a decision by Dec. 14.
Oshkosh believes the award should be upheld and is continuing plans to meet the customer’s needs, a company statement said. Plans for the facility are to use it for the painting, coating and finishing of FMTV vehicles and parts and it could also be able to support Oshkosh’s other product lines for its customers.