Plasan thrives despite downturn
NEAL P. GOSWAMI

Tuesday March 16, 2010
BENNINGTON -- From the small Kibbutz Sasa in northern Israel to a new business cluster in Southern Vermont, Plasan has rapidly grown as a U.S. defense contractor in the past several years.
   Traditionally founded as social and economic cooperatives based on agriculture, many Kibbutzim, like Sasa, have centered around high-tech industries in more recent years. The 200-member Kibbutz Sasa founded Plasan about 20 years ago, said Azriel Biberstein, the chief financial officer of Plasan and general manager of Plasan North America, who himself joined the company about five years ago. About 60 members of the Kibbutz work directly for the company, including CEO Daniel Ziv, he said.
Bought automotive division
   Plasan purchased the automotive division of Vermont Composites in 2006, now known as Plasan Carbon Composites, after a nationwide search for a place to lay down roots. Vermont was chosen because the company "liked the environment," Biberstein said. "Definitely, the company grew very fast," Biberstein, said Monday in a meeting with Vermont House Speaker Shap Smith and other state lawmakers.
   The composite company first operated in the same building as Plasan North America, a separate entity that manufactures military armor. Both are owned by the Israeli parent company. The two U.S. subsidiaries are now in separate buildings, with Plasan North America having expanded into two structures on Bowen Road, one of which is in the process of being outfitted with 4,500 square feet of office space. There are also two separate management teams in place, Biberstein said.
   Another Plasan subsidiary in France supplies European nations with military armor. After forming in Israel, the company soon focused on armor, Biberstein said. "At that time, converting to armor was more like a vision because we didn’t know exactly what armor will be," he said.
   That vision has paid off for Plasan to the tune of hundreds of millions of dollars in contracts to build armor for the U.S. military. It’s paid off for the Bennington area, too, which has seen about 200 new jobs, mostly manufacturing positions, come to the area since Plasan arrived in 2006.
   The success of Plasan North America is due largely to its work with Osh Kosh Corp., a Wisconsin-based defense company that is the primary contractor for a new armored vehicle the Army is using in Afghanistan. The military has ordered more than 8,000 of the specialized trucks, and Plasan is supplying Osh Kosh with the armor for each one.
   The success of Plasan has had a positive ancillary impact on the area. For example, Plasan has boosted a small local firm that paints most of the armor the company produces. "We’re growing quite a bit here in Bennington, and we’re supporting growing, actually, the area," said Dalton Blackwell, vice president of Plasan North America. The company hopes to find more local suppliers and subcontractors when it hosts an open house next month, Blackwell said, because most of the company’s existing contacts are spread around the country. "We’re looking to see if we can move some of this work to the Vermont area," he said. "We’re looking for any subcontractors that we can utilize more in the local area."
Predicts growth
   Asked by lawmakers Monday where the company will be in a decade, Biberstein predicted further growth. "Absolutely larger, but that’s a wish right now," he said.
"We are looking for more business. You can see what we have done here, getting a new facility," he said of the company’s acquisition of a second property on Bowen Road last fall. "We spent $7 million in equipment, including the facility. So, definitely, it’s not to maintain, it’s to grow."
   Expansion will require the company to acquire more capabilities, however, Biberstein said, and certainly a new spate of engineers. The company has had little success finding engineers locally with the requisite skills, he said. "One of the things we are lacking very much is engineers," Biberstein said. "Right now, we are more dependent on Plasan Israel for their engineers. Every time we have a problem, we have to fly them in here. If we can get more talent from around here, from Vermont, from (Rensselaer Polytechnic Institute), from wherever it is, then that would be very helpful for us." Plasan has started the process of recruiting new engineers, according to Biberstein.
"There are so many manufacturers that can do the same thing we are doing. If you do the engineering ... that is your uniqueness," he said. "Anybody can buy an autoclave. It’s not state-of-the-art work. Really, the issue is the talent behind the work."
   In the meantime, Plasan North American and Plasan Carbon Composites are staying put in Vermont. Despite complaints from some politicians and businesses, Plasan is happy with the state’s business policies, Biberstein said. "We like the area," he said. "We adjusted to the area. The state is very supportive. We can’t complain."

Contact Neal P. Goswami at ngoswami@benningtonbanner.com