COST OF TANK PLANT

Bay of Plenty Beacon, Volume 2, Issue 229, 23 October 1940, Page 3

COST OF TANK PLANT

FACTORY WILL BE BUILT IN CITY FOR BRITISH AND U.S. ORDERS 5,000 BIG MACHINES TO COST a;}, 500,000 dollars ! . By Clifford A. Prevost (Free Press Washington Bureau) Washington, August 15. The Chrysler Corp. to-day was awarded a contract for 53,500,000 dollars for construction of a plant in the Detroit area and production of approximately 5000 tanks for the United States Army and the British Government. This "\Vas the second largest order yet placed by the War Department. It is exceeded only by an 82,000, 000 dollars order for plant expansion and equipment which has been awarded to the Wright Brotimers Airplane Corp. of Cincinnati. Another Plant Planned. Still another tank plant will be constructed in the Detroit area, it was reliably reported. This plant will, in ail probability, be opeiatcd by the General Motors Corp. H will, however, be financed by the Government. While there has been feverish activity on the part of Detroit real estate operators on the Government land, deals, it was established to-night that the site for the'new tank plant has already been purchased, or is at least under option. It is a 113 acre plot. The exact location has not been announced. / The plant is expected to start mass production in 13 months. Delivery dates on the tank order . were not announced.

The Government will pay the Chrysler Corp; 20,000,000" dollars for the plant and equipment. The plant alone will cost 16,000,000 and will turn out tanks costing 33,500,000. The Government will reimburse Chrysler for all costs, and title will be held by the Government. Chrysler to Lease Plant. Upon completion of the plant the Chrysler Corp. will lease it at 1. dollar a year and will operate and maintain it as a tank factory, producing tanks for the United States, and British Governments at a fixed price. No accurate details are available as to the number of tanks the British will take. This plant will employ more than 5000 men. It will be one of the largest industrial plants in Michigan with a tloor area of 800,000 square feet. The Chrysler Corp. will have charge of producing the largest tanks ever manufactured in this country. Most of them will be between 25 and 30 tons, it was said. Options are now being taken for sites upon which to construct the second tank plant. No announcement will be made as to its location until such time as the Government has obtained the required land. Negotiations are not being made directly by the Army or the Defence Commission. Private firms are ob-« taining the options, it was learned.