CHARLOTTE, Mich. (AP) - Spartan Chassis Inc., a subsidiary of Spartan Motors Inc., said Monday it bought two manufacturing facilities in Michigan to meet demand from its military customers to supply chassis for a vital military vehicle.
The chassis will be used for the Mine-Resistant Ambush Protected Vehicles, or MRAP, currently used in operations in Iraq. The vehicles protect U.S. soldiers from mines, rocket-propelled grenades and improvised explosive devices.
A joint-military program led by the U.S. Marine Corps is seeking to double the size of its new armored vehicle program to meet short-term combat needs. The Marines and Army want to buy 7,774 MRAP vehicles expected to cost $8.4 billion.
Spartan Chassis, which makes frames and components for vehicles, said it will spend $8 million to purchase and renovate the two plants which are located near its headquarters in Charlotte, Mich.
Shares of Spartan rose 35 cents to $26 in aftermarket trading, after closing up 15 cents at $25.65 on the Nasdaq Stock Market.
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