$30M already spent on tactical-vehicle plant, Lockheed says

Lockheed Martin has already spent $30 million on a vehicle factory in south Arkansas and plans to spend $125 million more.

And even if Lockheed Martin doesn't win a contract to build a next-generation military vehicle, the company will make use of the Camden facility, company officials said Tuesday during a 30-minute online presentation for reporters.

"We have a lot of possibilities in the near future ... or even immediately if the selection is not Lockheed Martin, which I don't believe is going to be the case," said Randy O'Neal, vice president of production operations for Lockheed Martin Missiles and Fire Control. "We already have growth here. We have lots of opportunities to use the facility. It was set up in a very simple manner. It's re-configurable."

Officials spoke from the floor of the proposed joint light tactical vehicle factory in Calhoun County, a few miles northeast of Camden, where in the background workers were performing pre-production tasks in the 300,000-square-foot plant.

On Friday, Gov. Asa Hutchinson signed a bill authorizing an $87.1 million bond issue for Lockheed Martin to bolster the company's bid for a U.S. Defense Department contract to build the vehicles, which are designed to better protect troops from roadside bombs. The joint light tactical vehicle will replace the military's Humvee.

State officials say the Lockheed Martin contract would help preserve 556 existing jobs and create an additional 589 positions.

Lockheed Martin officials say they're confident they'll ultimately build the vehicle.

Company officials touted their vehicle's four-cylinder engine, made by Indiana-based Cummins Inc.; the transmission, built by Indiana-based Allison Transmission; the suspension system, created by Michigan-based Meritor; and the combination starter-generator, manufactured by New York-based L-3 Communications.

The Lockheed Martin joint light tactical vehicle will not have an alternator, which produces electricity on most motorized vehicles. Scott Green, vice president of ground vehicles for Lockheed Martin, said using a starter-generator as opposed to an alternator would provide greater power-generation capabilities.

The company has said the fuel efficiency of the 4.5-liter, four-cylinder diesel engine combined with the extra power generation would set the vehicle apart from the competition. The Humvee's engine is much larger and has double the cylinders.

"What the customer is really trying to do is put in the survivability of a much larger vehicle [and] keep the mobility and the agility of a smaller tactical vehicle," Green said.

Lockheed Martin is competing with Indiana-based AM General and Wisconsin-based Oshkosh Defense to build the vehicles.

AM General, which makes the Humvee, says it delivers "the necessary experience and DNA to the JLTV program." If awarded the contract, AM General will manufacture its own engine, which allows for greater customization, the company says.

Oshkosh Defense is touting its "97 years of vehicle production" experience. It now builds a variety of medium and heavy tactical vehicles, including trucks and tankers. The company says its suspension is battle-proven and its use of advanced materials will best protect the vehicles' occupants.

John Kent, a Lockheed Martin spokesman, acknowledged that other companies had played up their experience building tactical vehicles.

But the company's Camden operations already build vehicles, including the terminal high altitude area defense launcher and communications/fire control vehicle, he said. The system is designed to intercept ballistic missiles.

During the presentation, O'Neal said other sites were considered, but south Arkansas was the obvious choice.

"Camden had the history of process performance that matched all the process needs to produce the vehicle," he said. "They're very conscious about the work they do. They understand their purpose for coming to work."

Metro on 06/03/2015

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