CHARLOTTE, Mich., April 9, 2007 /PRNewswire via COMTEX News Network/ — Spartan Chassis, Inc., a
subsidiary of Spartan Motors, Inc. (Nasdaq: SPAR), announced the purchase of
two manufacturing facilities near its headquarters in Charlotte, Mich.
The facilities, which total 80,000 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, while also creating capacity at Spartan’s other facilities for fire
truck and motorhome chassis production.
“We are growing our overall capacity to meet the sustained demand we are
seeing for our specialty chassis products,” said Richard Schalter, president
of Spartan Chassis. “Along with our newly constructed 107,000-square-foot
fire truck cab and chassis facility, the new facilities will allow us to grow
market share for existing products, while also introducing new products.”
Spartan Motors reported it plans to spend $8 million to purchase and
renovate the facilities, and expects the two recently purchased facilities to
be operational in the third quarter of 2007.
“Our recent capacity additions are improving efficiency at Spartan
Chassis, as we can better specialize and focus production within a facility on
just RV, fire truck or specialty vehicle products,” said John Sztykiel,
president and CEO of Spartan Motors. “Overall, the dynamic of added capacity
and efficiency will help us grow as we focus on becoming the premier
manufacturer of specialty vehicles and chassis in North America.”
The 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.
Spartan Chassis, Inc., a subsidiary of Spartan Motors, Inc.
(Nasdaq: SPAR), is a leading 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.
This release contains forward-looking statements, including, without
limitation, statements concerning our business, future plans and objectives
and the performance of our products. These forward-looking statements involve
certain risks and uncertainties that ultimately may not prove to be accurate.
Actual results and future events could differ materially from those
anticipated in such statements. Technical complications may arise that could
prevent the prompt implementation of the plans outlined above. The company
cautions that these forward-looking statements are further qualified by other
factors including, but not limited to, those set forth in the company’s Annual
Report on Form 10-K filing and other filings with the United States Securities
and Exchange Commission (available at http://www.sec.gov). Government
contracts and subcontracts typically involve long payment and purchase cycles,
competitive bidding, qualification requirements, delays or changes in funding,
extensive specification development and changes, price negotiations and
milestone requirements. An announced award of a governmental contract is not
equivalent to a finalized executed contract and does not assure that orders
will be issued and filled. Government agencies also often retain some portion
of fees payable upon completion of a project and collection of contract fees
may be delayed for long periods, which can negatively impact both prime
contractors and subcontractors. The company undertakes no obligation to
publicly update or revise any statements in this release, whether as a result
of new information, future events or otherwise, except as required by law.
SOURCE Spartan Chassis, Inc.
Karen Hildebrant of Spartan Chassis, Inc., +1-517-543-6400, ext. 3111; or Ryan McGrath or Jeff Lambert, +1-616-233-0500, of Lambert, Edwards & Associates
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