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Pending contract is good news for
Force Protection -
4/19/08


By TIM CHANDLER, C-T Associate Editor

Force Protection, a builder of bomb resistant vehicles slated to begin operation of a manufacturing facility in Person County, recently received good news.

Last month, despite a wave of negative publicity, Force Protection officials insisted that the company has no plans of shutting down its Person County facility at the intersection of Boston Road and Halifax Road. The building formerly housed Collins & Aikman.

On April 10, Force Protection announced that the Defense Security Cooperation Agency (DSCA) had notified Congress of a pending foreign military sale to the United Kingdom for 157 of the company’s Cougar Category I Mine Resistant Ambush Protected vehicles (MRAPs), along with associated equipment and services.

The total value of the contract, if all options are exercised, will be approximately $125 million, according to a Force Protection news release.

“We are pleased to note the continued interest of the British armed forces in our proven blast protection technology,” Damon Walsh, Force Protection executive vice president for customer relations said. “We will continue to work closely with the U.S. Marine Corps to put the necessary agreements in place that will facilitate a speedy contract award.”

When contacted Friday in Ladson, S.C., where Force Protection is headquartered, Erin Kane, who works in the communications office with the company, said company officials had set no date for production of MRAPs in Person County, however, she added, “It is still our plant and nothing has changed.”

Last month, Person County Economic Development Director Glen Newsome said, “The company has affirmed on several occasions that they plan to continue the project here. It flies in the face of common sense and good logic to suggest otherwise.”

Reached Friday by The Courier-Times, Newsome said, “I think it is fair to say that Roxboro and Person County is still very much in the mix of things.”

When Force Protection first announced plans to locate in Person County, company officials guaranteed 270 well-paying jobs. As of last month, however, the number of employees hovered around 20, however, Pruitt said at the time that the 270 jobs were “still within the realm of possibility.”

Last summer, Force Protection struck a deal with the state for grants totaling approximately $3 million if it met job-creation goals of approximately 65 each year from 2007 through 2010.

Force Protection released information last month that it was notified on March 19 by The NASDAQ Stock Market that the company was not in compliance with a Marketplace Rule as a result of failing to file with the United States Security and Exchange Commission its Annual Report on Form 10-K for the fiscal year ending Dec. 31, 2007. Because of that, Force Protection is subject to having its stock delisted from the NASDAQ Capital Market.

Force Protection has since requested and been granted an oral hearing before the NASDAQ Listing Qualifications Panel to review the NASDAQ staff determination on its continued listing, which will result in NASDAQ providing Force Protection with notice of a hearing at which the panel will consider whether such delisting is appropriate.

Elliott Davis, LLC, the Force Protection’s independent public accounting firm, informed company officials last month that it was immediately resigning its duties.

On Monday, Force Protection announced that Grant Thornton LLP had been obtained as the company’s new independent registered public accounting firm.

“We are very pleased to have retained a nationally recognized and highly capable auditor,” Michael Moody, chairman and CEO of Force Protection said. “As the company takes steps to improve our financial reporting and controls, we look forward to developing a solid working relationship with Grant Thornton.”


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