Spartan Chassis adds manufacturing capacity to meet increased military demand

Oct. 19, 2007

Spartan Chassis, Inc., a subsidiary of Spartan Motors, Inc. (www.spartanmotors.com), has purchased two 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.

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 and improvised explosive devices through their V-shaped hull, raised chassis and improved armor. According to U.S. government reports, roadside bombs and improvised explosive devices account for 70 percent of U.S. deaths and injuries in Iraq.

Spartan Chassis, Inc., a subsidiary of Spartan Motors, Inc., is a developer and manufacturer of custom chassis for recreational vehicles, fire trucks and specialty vehicles. Spartan Motors, which also manufactures emergency rescue vehicles under the brand names of Crimson Fire, Crimson Fire Aerials and Road Rescue, reported sales of $445 million in 2006 and is focused on becoming the premier manufacturer of specialty vehicles and chassis in North America.