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Neoplan USA Reports Manufacturing Plant Shutdown

Date

December 5, 2005

Article

Acknowledging a lack of orders and ongoing financial difficulties, Neoplan USA has announced that it will shut down its bus manufacturing facility in Lamar, Colo., on or about Jan. 13, 2006. All Neoplan parts will remain available through Neopart, which will continue to operate as a stand-alone parts business in Honeybrook, Pa.

In a Nov. 15 statement to all employees, company President and Chief Executive Officer John Russell said staff reductions would begin immediately and would continue through the middle of January as work at the Lamar facility is completed.

"By the middle of December, most production work in the plant will have ended, and we will be focused on activities essentially to 'mothball' the plant in a way that it could be re-started with minimal disruption," he stated.

Neoplan USA has operated the Lamar plant since 1981, and moved its headquarters and design center from Lamar to Denver in 2004 as the culmination of an ongoing revamping of the management team over the previous two years. The reduction in force also affects employees in the Denver offices, according to Russell.

Russell noted that the final orders coming out of the Lamar plant include 25 60-foot articulated buses for Pittsburgh's Port Authority of Allegheny County; 85 articulated buses for New Jersey Transit Corporation; and two contracts with Boston's Massachusetts Bay Transportation Authority, for 202 40-foot low floor buses and 32 60-foot articulated dual-mode diesel-electric buses for use in the Big Dig project. Russell noted that the Big Dig contract is not yet completed; he explained that all production has been completed in Lamar on the MBTA dual-mode buses, but that Neoplan will complete integration of power systems in the last 14 vehicles in the order at its Boston facility by the end of February.

Date Added

1/30/2006

Date Edited

1/30/2006

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