DTN News: German Firm Retools As U.S. Military Contractor

DTN News: German Firm Retools As U.S. Military Contractor *Source: DTN News / BY Greg Gardnerfree Press Business Writer (NSI News Source Info) Auburn Hills, Michigan - February 22, 2010: There is still a demand for huge off-road vehicles that chew up and spit out everything in their path, but it's coming from the U.S. Army rather than suburban commandos, and there's a good chance it could lead to about 200 jobs in Michigan by the end of this year.

EDAG, a Germany-based company with automotive and defense operations in Auburn Hills, is coordinating a complex proposal to produce a new generation of mine-clearing vehicles that could save the lives of American soldiers. These brawny, weapon-munching machines would be able to dig up and detonate more land mines safely and faster than the Defense Department's current technology. "The more of our soldiers who get to come home healthy, the happier we are," said Matt Remenar, manager of EDAG's aerospace and defense business. EDAG is teaming with Lambda of Auburn Hills, RWF Bron of Woodstock, Ontario, Armtrac, a British company, and an unidentified U.S. manufacturer, which chose to remain anonymous until the contract is awarded. A decision is expected by the middle of this year. If EDAG's team wins, production could begin by the end of this year at a plant in Lansing. First-year production will be 30 vehicles. In addition to about 150 production jobs, EDAG CEO Volker Amelung said about 50 engineers and other professionals would be hired to support them. Because the bidding process is classified, EDAG can't release photos of the vehicle. But envision a large construction vehicle. Instead of a shovel or backhoe, it is outfitted with 20- or 30-foot-long arms with spiky tongs at the end. These arms churn up ground ahead of the vehicle, including mines, which can be disarmed or detonated. The explosions will not inflict significant damage to the vehicle or its occupants. More than 26,000 people are killed each year by more than 110 million land mines in the ground around the world, most leftover from wars in Vietnam, Iraq, Lebanon, Jordan and parts of Africa, according to the World Health Organization. About 2.5 million new land mines are laid each year.

EDAG diversified into defense contracting less than three years ago because its traditional business of making factory automation equipment for automakers and their suppliers was headed for a rough spot.

Because it is a German company, EDAG's first challenge was to comply with the Defense Department's International Traffic in Arms Regulations. That is a set of rules and practices meant to ensure that information and material pertaining to defense and military related technologies may only be shared with U.S. citizens unless authorization from the Department of State is received. Beyond the area mine clearance proposal, EDAG has developed a portable medical-aid facility that can be deployed to help first responders to natural disasters such as the Haitian earthquake or nuclear, biological or chemical weapon attacks. Amelung said the portable clinics can be used to triage patients according to the severity of their injuries or radiation exposure. They can even be used to administer the appropriate antidotes. "This would enable military and first-responder teams to not only treat mass casualties more efficiently, but it would provide the ability to decontaminate and deliver medical care," he said. Contact GREG GARDNER: 313-222-8762 or ggardner@freepress.com