$1B contract for vehicles boosts Plasan
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Plasan North American in Bennington is getting a boost from a Department of Defense order for specially armored all-terrain vehicles. The company produces the armor for the vehicles. Photo Provided |
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By PATRICK McARDLE STAFF WRITER - Published: July 2, 2009
BENNINGTON — Plasan North America officials are expecting as many as 200 to 300 new jobs in Bennington over time after the Department of Defense awarded a $1.05 billion contract for a vehicle with the company's armor system.
The contract was awarded to Oshkosh Corp. of Wisconsin for 2,224 specially-armored all-terrain vehicles. In a press release, Sen. Patrick Leahy, D-Vt., said the Department of Defense had indicated the contract could "eventually reach $3 billion for more than 5,000 vehicles."
Bruce Evey, general manager of Plasan North American, said they had information that the order could eventually grow to 10,000 vehicles with additional work needed to produce spare parts and components for the vehicles, which are expected to be deployed in Afghanistan.
The Bennington manufacturer, whose parent company is based in Israel, has already begun the process of hiring an estimated 80 additional employees to meet the needs of the contract, according to Evey.
Plasan has two plants in Bennington, Plasan Carbon Composites on Shields Drive, which manufactures parts for auto makers, and Plasan North America, the armor manufacturing plant, on Bowen Road.
While the company has kept business steady at the Bowen Road site, about 90 layoffs at the Shields Drive site were announced in January. Evey said the people affected by the layoffs would have first priority for the new positions.
Oshkosh and Plasan have already produced versions of these vehicles, identified by the military as mine-resistant, ambush-protected vehicles or MRAP.
The new vehicles, described by Leahy as smaller versions of military vehicles already in use in Iraq and Afghanistan, were designed to be able to navigate dirt roads and treacherous terrain in areas like Afghanistan.
Leahy, who visited troops stationed in Iraq and Afghanistan about a month ago, said that was important to him.
"The best thing about this, of course, it means getting equipment to our troops that they really need," he said.
According to Leahy, several of the Vermont soldiers he met told him of their need for armored vehicles. As a member of the Senate Appropriations Committee and its Defense Subcommittee, Leahy was in a position to help, adding $1.9 billion to the supplemental war spending bill in May to speed up the development and deployment of the vehicles known as M-ATVs.
As a bonus, Leahy added, the contract will "put a lot of Vermonters to work in an area that could really use jobs."
Leahy, who visited Plasan in Bennington in 2007, said he wasn't surprised to see they were part of the winning bid because the company has "demonstrated they make the best."
Evey said Plasan was ready to begin work on the contract. The company has already supplied Oshkosh with components for the first 20 M-ATVs, he said.
"We've been working on this with the military for the last four months, creating prototypes, doing ballistics tests, making changes to the design specifications. We know the need is urgent," he said.
The company had created cutting edge, advanced designs in armor that helped win the defense contract, Evey said.
Gov. James Douglas also sent out a notice of congratulations to Plasan, pointing out that Vermont agencies like the Economic Progress Council and the Economic Development Authority helped attract the manufacturer to Bennington.
Plasan North America in Bennington employs about 120 people.
patrick.mcardle@rutlandherald.com
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