Oshkosh Corp. is seeking a $3.5 million to $5 million in tax incremental financing (TIF) to expand its manufacturing facilities in Oshkosh, where it hopes to develop a new 150,000-square-foot electrocoat painting facility. If approved, the company would paint its family of medium tactical vehicles (FMTV) it is building for the U.S. Army in the facility.
The TIF request is the first time that Oshkosh Corp. has asked the city for financial assistance, a company spokesperson said.
Oshkosh was awarded a five year contract to build FMTVs in August, which calls 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.
The contract is expected to save about 550 to 600 jobs in Oshkosh and another approximate 600 jobs in Pennsylvania, according to Ann Stawski, vice president of marketing communications with Oshkosh Corp.
The company hopes to break ground on the new facility in December.
“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 Corp. chairman and CEO. “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.”