With the loss of a major Army contract, AAR Summa in Cullman has announced a massive layoff of 213 local positions — totaling the brunt of the area plant’s workforce.

The company has manufactured the U.S. Army MK 1077 Flat Rack transportation device for more than 15 years, growing to employ nearly 250 people in the Cullman area. Company officials have now learned its only major bid will not be renewed. Instead, the Army has opted to contract with a Canadian company for a similar transport product.

Employees at Summa were notified today, and phased layoffs are expected to begin June 25. The manufacturing shutdown is scheduled to be complete by the end of July. The economic impact from the layoffs is estimated at approximately $44.5 million.

The company has been working for several months to learn if they would even be eligible to bid for their product, due to a new initiative to limit the bid to businesses with less than approximately 300 employees. Though Summa fits that requirement locally, the company is now owned by the international firm AAR, which employs thousands worldwide.

“We’ve been faced with the potential that we would not get a chance to bid on the project, and we’ve been waiting on a report the Army was supposed to be issuing,” AAR Summa Government Affairs spokesperson Christine Wayne said. “We met with the Army on March 27, and the Army indicated they would not be purchasing any flat racks. We were told they’re going with a different but similar product called the Enhanced Container Handling Unit (ECHU), manufactured by a Canadian company.”

Though the current work order is set to expire in July, Wayne said the company is seeking out additional work from other companies, in the hopes of keeping the manufacturing arm open in some capacity.

“Our hope is that in the meantime, we can get more answers, and hopefully have a chance to bid on the ECHU, or another Army product,” she said. “We’re still seeking potential new customers for the flatrack, or something similar we could manufacture, and doing whatever we can to save jobs in Cullman.”

Assuming the layoffs move ahead, Wayne said an administrative office will remain in Cullman to continue filing bids and searching for new contracts. The future of the company’s manufacturing facility is also up in the air, and Wayne said a final decision on that front will depend on if new contracts can be found.

“We really hope to stay in the Cullman community,” Wayne said. “We have a great workforce, our employees are wonderful, and if we’re able to get some work we’ll be looking right here in Cullman to re-hire.”

Wayne commended the efforts of U.S. Congressman Robert Aderholt (AL-04), who has helped broker meetings and worked with the company for several months in an effort to keep it open.

Aderholt said he was very disappointed with the news, but hopes the facility can find another use that will preserve jobs.

“After learning the Army said they no longer had a need for flatracks being made by AAR/Summa in Cullman, I challenged their position. The Army informed me that between their current supply of flatracks and the draw down in Iraq and Afghanistan, there isn’t an additional demand for flatracks over the next three years,” he said in a statement. “While I am greatly disappointed in the Army’s decision, I believe AAR and its Cullman employees can compete anywhere, with anyone. I feel confident the Alabama Development Office and the Cullman Economic Development Agency will help to market this exceptional facility for new business opportunities.”

Cullman Economic Development Agency Director Peggy Smith said the layoffs will be a huge blow to the local economy. But, she said the statewide effort to save the plant was encouraging, and shows the resolve of state and local officials to protect area industries.

“We were all hopeful that the strong community effort would make it possible to save the Cullman operation and its 200 jobs. Summa has been a part of the Cullman community for many years and we are disappointed with the news and especially concerned for the employees and their families,” she said. “We are especially grateful to Congressman Aderholt and his staff, who personally arranged and attended numerous meetings on behalf of Summa. We thank him for his efforts as well as our state legislative delegation, and city and county officials for the local stance they took in trying to keep this from happening … Everyone is trying to get the word out that we have qualified employees that are looking for employment. We want to do everything we can to help them find new jobs as quickly as possible.”

* Trent Moore can be reached by e-mail at trentm@cullmantimes.com, or by telephone at 734-2131, ext. 220.