The BAE Systems facility in Sealy, which has served as an important production site for U.S. military tactical vehicles since 1990, is scheduled to close before July 2014.
"The company greatly appreciates the hard work and dedication of the entire workforce in Sealy," said Erwin Bieber, president of BAE Systems Land & Armaments sector. "We explored every possible option to maintain the viability of the facility, but the decline in U.S. defense spending has made it necessary for us to continue rationalizing our business base. This was a difficult decision, but it in no way reflects upon the hard work and commitment of the employees. We will do all we can to assist them during this difficult transition."
BAE Systems announced a significant reduction in staff at the facility in September. Combined with the closure announcement, more than 300 employees that currently support military production will be affected by the closure. Most of the employees at the Sealy facility will be released from the company between November and the end of June 2014.
The company will honor its customer commitments and will begin the process to complete or transition existing program work to other BAE Systems facilities.
BAE Systems will continue its role as a member of the Lockheed Martin JLTV team and provide the armored cabs, protection solutions and manufacturing expertise, along with other services that support the team to provide soldiers and Marines with the best JLTV offering at the least possible cost.
With the acquisition of Armor Holdings, Inc. in 2007, BAE Systems entered the military production business.