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Oshkosh Corp. to spend $155M to make postal vehicles

DETROIT (AP) — Oshkosh Defense will make new delivery vehicles for the U.S. Postal Service in Spartanburg, South Carolina, creating 1,000 new jobs.

The Wisconsin company on Tuesday said that it will reconfigure a warehouse with features needed to do large-scale manufacturing. Parts-supply companies are expected to create more jobs nearby.

Oshkosh Corp. is expected to spend $155 million to prepare its warehouse to build the new postal service vehicles, according to a Tuesday news release from South Carolina Gov. Henry McMaster. South Carolina’s Spartanburg County is contributing $9 million in incentives for the project. The state of South Carolina is also providing an undisclosed amount of tax credits for job creation.

Milwaukee Mayor Tom Barrett and Milwaukee Common Council President Chevy Johnson previously pitched the city’s Century City Business Park as a potential site for the manufacturing facility.

In February, Oshkosh Defense won the multi-billion-dollar contract to build the Postal Service’s next generation delivery vehicle. The company will build 50,000 to 165,000 van-like vehicles during the next 10 years, replacing a fleet that is up to three-decades old.

Some of the vehicles will be powered by batteries, while others will have internal combustion engines. The exact mix has not been decided yet.

Production in Spartanburg is expected to begin in the summer of 2023, the company said Tuesday. Oshkosh Defense, which mainly builds military vehicles, is a wholly owned subsidiary of the Oshkosh Corporation.

– Nate Beck of The Daily Reporter contributed to this report

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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