By Noelle Edwards
nedwards@salisburypost.com
Freightliner confirmed this week it plans to reconfigure its Cleveland manufacturing plant to produce military vehicles.
The announcement came amidst news the company, Daimler Trucks North America, would keep open a Portland plant it previously planned to close.
“We recently received a large military vehicle order from the U.S. Army’s Tank Automotive Command and expect more to follow,” Roger Nielson, the company’s chief operating officer, said in a press release.
The company said earlier this year it would close the plant in Oregon and was looking to outfit another plant for production of military vehicles, pending an expected contract with the U.S. Army. The Cleveland plant was a strong possibility for the military production, company spokeswoman Amy Sills said in a statement in July.
The Rowan County Board of Commissioners in July approved an incentive package to try to bring military truck production to the area. The five-year agreement would have the county rebating 75 percent of county taxes due on new investment.
The incentive is based on $16 million worth of investment by Freightliner. Robert Van Geons, executive director of the Salisbury-Rowan Economic Development Commission, said if the company were to invest less, the incentive would be prorated accordingly.
The incentive also requires 695 jobs at the current Freightliner facility to be maintained, and Van Geons said there is a “strong expectation” if the truck industry stays strong Freightliner will continue to invest in the Cleveland plant.
“We hope we get the jobs and maintain the jobs,” Carl Ford, Board of Commissioners chairman, said.
Van Geons didn’t want to speak too specifically about the company’s plans for the Cleveland plant so as not to jeopardize any potential agreements.
He did say he doesn’t view the company’s decision to keep the Portland plant open as having a positive or negative impact on the military work that could be done in Cleveland.