BAE Systems plans to shut its armoured-vehicle facility in Texas next year. This will be the third of the company’s US facilities to shut in just over a year.
The Wall Street Journal reports that the Texas plant is located at Sealy, west of Houston. The company expects that all 325 workers at the facility will lose their jobs. Over the past year, BAE Systems has already cut over 1,000 jobs at the plant.
BAE Systems and its partner Lockheed Martin are hoping to win a contract to produce a replacement for thousands of Humvees used by the U.S. military.
The program is known as the Joint Light Tactical Vehicle, or JLTV program. Prospective contractors are delivering prototypes and it is expected that the full contract will be awarded in 2015 or 2016.
Given that BAE Systems is to close its Texas plant, work on the Humvee replacement project will be done at facility in Camden, Arkansas which is operated by Lockheed Martin.
According to Lockheed, by carrying out the work in Camden it will be able to make savings and offer the U.S. Army and Marine Corps an affordable vehicle.
The Army wants to assemble a fleet of 50,000 JLTVs over 20 years, while the Marines anticipate purchasing about 5,500 trucks.