Knapheide part of $231M contract

January 15, 2009

By Rodney Hart

Knapheide Manufacturing Co. of Quincy is partnering with a suburban Chicago company on a $231 million Canadian Department of National Defense contract.

Navistar Defense of Warrenville landed the contract last fall and has contracted with Knapheide Manufacturing to build parts for 1,300 beds for troop transport trucks. Click here for the press release from Navistar.

Knapheide Manufacturing has 800 employees in Quincy, most at the Westphalia Strasse plant off North 24th Street.

Bo Knapheide, vice president of fleet and industrial products for Knapheide Manufacturing, said the contract "comes at a wonderful time" because the company's core business has been soft due to a weak national economy.

"This is new for us, getting into the military market," Knapheide said.

Navistar is a major military contract player worldwide, and the Quincy company could be involved with other deals, Knapheide said.

Knapheide Manufacturing will build parts for six different beds. The parts will be shipped to Canada and assembled for Canadian military commercial off the shelf trucks (MILCOTS).

"We have actually begun building the prototype units, and purchasing has been gathering all the parts, so it's well under way," Knapheide said.

Navistar Defense President Archie Massicotte said in a press release the company is seeking to expand its worldwide presence, and this is the company's first military contract with Canada.

"While our militarized commercial off the shelf trucks are built to help effectively perform various missions, our existing Canadian dealer network will provide quick parts and maintenance support for domestic missions," Massicotte said.

Optional upgrades and additional military components will let Canada further tailor its vehicles for domestic mission use, Navistar said. Under the multi-year contract, additional equipment such as augers and cranes will be provided by Navistar.

Massicotte said about 600 units of the MILCOTS order will be delivered during fiscal year 2009, with the remaining units to be delivered in fiscal year 2010.

Since 2004, Navistar has won contracts to provide more than 7,000 units to U.S. allies such as Israel, Taiwan and the United Kingdom.

Navistar Defense is an affiliate of Navistar International Corporation, a holding company whose subsidiaries and affiliates produce commercial and military trucks, diesel engines, school and commercial buses, and chassis for motor homes and step vans.

It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine parts and service.