Spartan Chassis, Inc., a subsidiary of Spartan Motors, Inc., announced the purchase of two additional manufacturing facilities near its headquarters in Charlotte, Mich.
The facilities, which total 200,000 square feet, will help Spartan meet anticipated increased demand from its military customers to supply and integrate key chassis components for Mine Resistant Ambush Protected (MRAP) vehicles. The added capacity will also free production space at Spartan's other facilities for increased fire truck and motorhome chassis production.
"These plant acquisitions will allow us to again expand our overall capacity to meet the increased order demand we are experiencing from our military customers," said Richard Schalter, president of Spartan Chassis. "As we continue to receive new contracts and increase production of existing products, these new facilities, along with the two that we acquired earlier this year, will provide us with the space we need to expand our military integration capabilities while simultaneously increasing our production for existing products."
Spartan Motors reported it plans to spend $4.5 million to purchase and renovate the buildings. One of the facilities is already operational. The second building is expected to be ready by the end of the year.
"These capacity additions make it possible for Spartan Chassis to continue to improve efficiency and allow us to better specialize and focus production within a facility whether it be an RV, fire truck or specialty vehicle chassis," said John Sztykiel, president and CEO of Spartan Motors. "This reflects the current strength of our business as well as the significant potential we see for our proven products. The combination of added capacity and improved efficiency are critical as we focus on becoming the premier manufacturer of specialty vehicles and chassis in North America."
Spartan Chassis has been awarded several sub-contract orders for chassis integration for MRAP vehicles. Spartan's orders have totaled more than $130 million spanning three major MRAP OEM suppliers over the last three months.
MRAP vehicles are designed to protect their occupants from a combination of mines, rocket-propelled grenades, or RPGs, and improvised explosive devices, or IEDs, through their V-shaped hull, raised chassis and improved armor. According to U.S. government reports, roadside bombs and IEDs account for 70 percent of U.S. deaths and injuries in Iraq.