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Oshkosh to Build E-coat Facility

Oshkosh Corporation (NYSE:OSK) announced that it is working with the city of Oshkosh on plans to expand the company’s manufacturing facilities in Oshkosh, Wis., with a new 150,000-square-foot electrocoat (E-coat) painting facility in support of production of the U.S. Army’s Family of Medium Tactical Vehicles (FMTV).

The company plans to break ground on the new E-coat facility in December, with startup beginning late summer 2010.

Oshkosh Corporation and the city 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.

“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. 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,” said Robert G. Bohn, Oshkosh Corporation chairman and chief executive officer. “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.”

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. The FMTV is a series of up to 23 variants and 17 different models, ranging from 2.5-ton to 5-ton payloads. Production for initial test vehicles is planned for mid-2010, followed by full production in 2011.

While the contract is currently on hold pending protests, Oshkosh believes the award should be upheld and is continuing plans to meet the customer’s needs. The facility is planned to be used for the painting, coating and finishing of FMTV vehicles and parts and could also be able to support Oshkosh’s other product lines for its customers.

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