OSHKOSH, WIS. (January 10, 2003) — Oshkosh Truck Corporation [NYSE: OSK] announced today that it has been selected as the preferred bidder by the United Kingdom Ministry of Defence (MoD) to supply approximately 350 Wheeled Tankers. Oshkosh will now enter into formal contract negotiations with the MoD to finalize contract details. These negotiations are expected to conclude during the first half of calendar 2003. The anticipated order value is approximately $250 million (£160 million) for initial vehicle acquisition and maintenance and support over the next 15 years.
Oshkosh’s proposal was based on its medium truck platform to meet the MoD’s demanding performance requirements for 15,000-liter Tactical Aircraft Refuellers, 20,000-liter Close Support Tankers, and 18,000-liter Close Support Tankers for Water. The new fleet will significantly expand the MoD’s on- and off-road supply capabilities, allowing improved supply of fuel and water to the field. This is crucial to the MoD’s ability to carry out military operations in theaters worldwide.
The other competitor for this program was a team led by Marshall Specialist Vehicles Ltd.
“This is an exciting opportunity for Oshkosh Truck. We are very proud to serve the people of the United Kingdom by supplying this remarkable capability to the Ministry of Defence. Oshkosh’s Wheeled Tanker solution is the highest-performing tactical tanker in the world, ready to take British forces wherever the mission demands. Today, when advanced mobility is critical to mission success, it is essential for logistics support to have the ability to get wherever it is needed. These Wheeled Tankers, combined with our in-country support team and worldwide logistics support network, means the MoD has the full resources of Oshkosh Truck committed to maintaining peak readiness of the fleet,” said Robert G. Bohn, Oshkosh chairman, president and chief executive officer.
Oshkosh’s solution combines high-performance tractors and specialized payload tanker-trailers to provide low risk and excellent value for money. The Oshkosh 6×6 tractor has a 70% off-road mission profile and has already proven itself in the field. It features a conventional cab design to enhance driver safety, ride quality, mobility and maintenance access. With TAK-4™ independent suspension, central tire inflation and all-wheel drive, this model is considered by many to be the most mobile military truck in the world. In addition, Oshkosh’s tractor and tanker-trailer combination is transportable by C-130 aircraft to facilitate quick, efficient deployment to support troops worldwide.
The configurations provide significant parts commonality and integrate commercial off-the-shelf components whenever feasible to reduce costs during the expected 15-year life of the vehicles.
According to Bohn, “These truck-tankers will have unmatched reliability, rugged performance, and parts commonality, which make them an excellent value for money for the MoD. In essence, we have effectively reduced the life-cycle costs associated with military trucks and delivered a vehicle forces can trust to handle the most demanding missions.”
U.K. Industrial Participation
Oshkosh has committed to maximizing UK and European industrial content in its proposal. Oshkosh believes that this program will create approximately 180 new jobs at its Llantrisant, Wales production facility and safeguard another 28 jobs at ABRO (Army Base Repair Organisation).
Oshkosh has aligned itself with high-quality, European partners to fulfill the program requirements.
· ABRO. Through their personnel and facility in Warminster, UK, ABRO will integrate the pumping module into the tanker-trailer chassis. The tractors and tankers will then be coupled together by ABRO. They will also conduct acceptance testing, deliver the vehicles and provide maintenance support. ABRO has extensive experience in similar work with military vehicles and the ability to support the British MoD in the field worldwide.
“ABRO has partnered with Oshkosh on the Wheeled Tanker bid. This is consistent with the Trading Fund’s policy of pursuing innovative business partnerships that will both generate new work for employees, and reduce the cost to the MoD of the services it provides. ABRO is very excited about this opportunity,” said Mike Hayle, chief executive of ABRO.
· Magyar S.A., the leading European manufacturer of stainless steel tankers, will produce the medium-mobility, articulated trailers. Magyar has existing capacity at its Fontaine-Française, France, facilities to produce the tanker trailers.
· Alfons Haar. The company has supplied fluids distribution pumping and piping to the MoD for many years. Alfons Haar’s UK operations will supply the pumping equipment.
Oshkosh Truck Corporation [NYSE: OSK] is a leading manufacturer of specialty trucks and truck bodies for the defense, fire and emergency, concrete placement and refuse hauling markets.
Oshkosh Truck is a Fortune 1000 company with products marketed under the Oshkosh, Pierce, McNeilus, Medtec, Geesink and Norba brand names. The company is headquartered in Oshkosh, Wis., and had annual sales of $1.74 billion in fiscal 2002.
For more information about Oshkosh Truck Corporation, log onto its web site at www.oshkoshtruck.com. # # #
