kitron.JPG Todd Berkey
Discussion
June 4, 2010
Big deals Showcased
Local companies land $160 million in contracts
Randy Griffith The Tribune-Democrat
JOHNSTOWN — A new international company is coming to Johnstown and a local company
will start work on a $20 million deal subcontracting for a defense industry giant that has not sent
work here in the past.
Those were two of the big announcements Friday morning at Showcase for Commerce press
conference.
New, competitively secured government contracts, potentially worth more than $160 million for
local companies, were announced Friday by local companies.
Kitron ASA, will establish a local manufacturing facility in 23,000 square feet of space in
Johnstown Business Park on JARI Drive, company Vice President Roger Hayland announced. It
will become the second Norway-based company to establish its first American facility in
Richland Township, following Kongsberg Defense Corp., which opened up shop in 2005 in the
same Johnstown Area Regional Industries park.
Meanwhile, JWF Defense System announced a new $20 million contract making armor
components for the latest generation of military High Mobility Multipurpose Wheeled Vehicle,
Humvee, manufactured by AM General a limited liability corporation tracing its roots the the
original Jeep-creator, Willys-Overland Motors, Inc.
“We had a couple great announcements this morning,” JARI President Linda R. Thomson said.
“AM General has really not done work in our area before. (JWF) is a local company that has
really attracted and competitively received work from AM General. That is a great opportunity
for our region.”
Concurrent Technologies Corp. has received four new contracts, totalling up to $58 million,
Edward J. Sheehan, president and chief executive officer, announced during the press
conference.
The largest contract, expected to reach $46 million, taps into CTC‟s experience in developing
and fine tuning robotics technology.
Working with Naval Surface Warfare Center in Crane, Ind., CTC is developing robotic
technology to be used in remote-controlled vehicles and other ground equipment.
“We take our capabilities to make them better,” Sheehan said. “Lighter, faster, better
performance: That is really the key to these unmanned systems.”
Robotic equipment can complete numerous missions in war zones, keeping troops out of harm‟s
way, he said.
In a development outside the realm of defense contracting, CTC received a $10 million
Department of Commerce contract to provide International Organization for Standardization-
approved education for foreign company leaders participating in a U.S. government training
program.
“These companies want to develop products that meet international standards,” program manager
Kamal Gella said. “This training gives them a to-do list to set up the processes so they can pass
the (international organization‟s) standards.”
Finally, two more CTC contracts totalling $3.5 million will develop systems to protect energy
grids at Army installations and allow continued operation in the event of regional power grid
interruptions.
Windber‟s API Defense Inc. announced a $2.5 million contract with Raytheon Space and
Airborne Systems to provide electronics for laser rangefinders, target acquisition equipment and
thermal imaging systems for armored vehicles.
The company, which purchased assets of Kuchera Industries and its affiliates in January, also
announced a $760,000 order for electrical components from Northrop Grumman Electronic
Systems.
But API‟s biggest news was not tied to individual contracts. The company announced it is
transferring a significant amount of its manufacturing business to Windber from facilities in New
York, New Jersey and Illinois.
Interviews and hiring have already begun. Company Vice President Carl Sax said he expects to
have 30 workers trained on new equipment being brought to Windber and Alum Bank facilities
from the other states. Up to 100 jobs could be added in the next couple years.
“This is new technology for the Johnstown area,” Sax said. “None of this has ever been done
here.”
The company spent almost $1 million upgrading the local plants, Sax noted.
“This is going to be our center of excellence for manufacturing,” said Steve Pudles, chief
executive officer.
Pudles credited the late Rep. John Murtha and local leaders for creating a business-friendly
environment.
“We are really blessed to be here in Johnstown,” Pudles said.
L. Robert Kimball & Associates of Ebensburg announced $2 million in contracts to develop
communications systems allowing federal, state and local authorities to collaborate during crises.
The Wyoming Valley Integrated Command Operations Program northeastern Pennsylvania and
the Regional Integrated Command Center in Southwestern Pennsylvania are each developing a
regional system.
Three Wire Systems LLC of Ebensburg‟s $85,000 contract was the smallest announced.
The Department of Agriculture project to help develop “virtual world” training rooms that
simulate real life will also help connect with Air Force, Homeland Security the State
Department.
JWF Defense System‟s second big announcement previewed a promising collaboration with J&J
Truck Bodies and Trailers of Somerset.
The division of Somerset Welding and Steel built four heavy lift trailers for the military. The
low-slung flat bed trailers are mounted with cranes used to lift disabled military equipment and
quickly remove it from war zones, protecting troops and saving tax dollars, JWF President
William Polacek said.
“They look like a „low boy‟ on steroids,” Polacek said.
The Defense Department liked the equipment so well, it wants 100 and has accepted proposals
for a contract.
But J&J was not familiar with the contract procurement process and was not equipped to fill an
order for 100, Polacek said.
“We helped them with the language barrier in the defense arena,” Polacek said, noting that
JWF will also help fulfill the contract, if it is awarded locally.