$200 million contract stays in the Upper Peninsula

A huge contact will be staying in the Upper Peninsula thanks to an agreement between Oldenburg Group Incorporated and Marinette Marine and Austal USA.

The agreement will have Oldenburg, which has facilities in Kingsford and Iron River, supplying key material handling systems for the U.S. Navy's Littoral Combat Ship program. Both Marinette Marine, which employs many people from Menominee, and Austal USA, based in Mobile, Ala., have contracts for 10 LCS ships and both will receive materials from Oldenburg. The total value of the contracts for Oldenburg is expected to exceed $200 million over the life of the program.

Oldenburg will design and build cranes, launch and recovery systems, lift platforms and hatch covers for both team's LCS ships, which are highly maneuverable and flexible ships designed to operate in shallow coastal waters.

"We are quite pleased that Congress and the Navy have moved forward with procurement of the Littoral Combat Ships, and proud that both the Austal and (Marinette Marine) teams have chosen us to supply mission-critical equipment," says Tim Nerenz, executive vice president for Oldenburg. "These contracts will support the continued expansion of our operations and the creation of new job opportunities in Wisconsin and Upper Michigan."

Engineering, purchasing and contract administration functions for the LCS program will be performed in Oldenburg's new technology and administration building, currently under construction in Kinsford. Production of component systems will be performed at the company's facilities in Iron River and Rhinelander, Wis.

In total, the Navy hopes to build 55 to 60 LCS ships, which additional orders from foreign military sales possible.

Writer: Sam Eggleston
Source: Tim Nerenz, Oldenburg Group Incorportated