OTO Melara Ribbon Cutting

The following is an article published in the Troy Record on Friday, June 17th, 2011, by Danielle Sanzone.

http://www.troyrecord.com/articles/2011/06/17/news/doc4dfaf31cc1b5a499267261.txt?viewmode=fullstory

WATERVLIET — For the first time in about half of a century, the Watervliet Arsenal will once again play a part in repairing and, eventually, manufacturing U.S. Naval weapons.

This is because its newest tenant, Oto Melara North America, Inc., the American subsidiary of the Italian company owned by Finmeccanica, moved in at the beginning of the month. The new business enables the Arsenal to further increase its domestic and, possibly, international weapons production.

At the ribbon cutting for the newest tenant of Building 120, Mike Newell, vice president of supply chain and logistics operations with Oto Melara North America, Inc., said between 15 and 25 jobs could be created and moved to the area within the next 18 months.

The U.S. company formed in 2004. Its national headquarters are in Washington D.C. with other locations in Florida and Pennsylvania. The company is in the midst of a move and transitioning from the Philadelphia-area location.

Oto Melara’s international counterpart has more than 100 years of experience in weapons manufacturing. Newell pointed out that this weapons tradition is similar to the Arsenal’s history.

“We have a global reach with a local impact,” he said.

The now-local company will initially start out by conducting maintenance and component repairs on guns, but manufacturing is expected to start in early 2012, said Newell.

While currently utilizing about 5,000 square feet of space for repairs and administrative purposes, manufacturing will require using a large section of the Arsenal’s historic Big Gun Shop in Building 110.

“This is where they built the Navy guns before,” said Arsenal Commander Col. Mark Migaleddi. The Arsenal made 16-inch guns up until the 1940s and then made other Naval guns in the 1950s. “We’ve scoped out the area in the building and there is enough room.”

He added, “The downstream effects are far-reaching.”

Some of the guns that the company currently manufactures in other locations have as many as 39,000 pieces, said Newell.

Oto Melara has a contract to build an unidentified gun for the U.S. Navy which will eventually occur at the Arsenal, he noted.

“The Arsenal is a big part of the Watervliet community so we like to see it flourish,” said Mayor Mike Manning, who was also in the U.S. Navy Reserves from 1988 until 1996.

Oto Melara’s Italian conglomerate, which has locations in Italy and Spain, makes about 300 million Euros annually in revenue, said CFO Matthew Kranz.

“It’s encouraging to look at the breadth of businesses the Arsenal has been attracting,” said Arsenal Business and Technology Partnership president Peter Gannon referring to the nano technology and military businesses.

The guns being repaired are currently being transported by trucks but the business says they eventually plan to utilize the Port of Albany and other local resources.