THE CANADIAN PRESS

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SUNRISE, Fla. - Protective Products of America, Inc. (PPA:TSX), a maker of ceramic armour products for military and law-enforcement customers, is cutting its workforce by one-quarter as it awaits a major contract.

Formerly known as Ceramic Protection of Calgary, PPA announced Thursday from its Florida headquarters that most of the staff reduction will affect an unspecified number of contract workers.

PPA said it expects to be able to ramp up production quickly once contracts are awarded.

The company said it was reducing its overhead in order to better in response to the extension of the proposal acceptance period for the U.S. Army's Improved Outer Tactical Vest program.

"Over the last couple of years we have taken numerous actions to turn the company around, and we are very proud of the progress we have made," said Stephen Giordanella, PPA's chief executive officer.

"This action is consistent with management's philosophy of running the business, which is to take advantage of every opportunity to cut costs and focus on the future growth of the company."

The company, which originated in Calgary as a maker of ceramic products used in the oil and gas industry, eventually moved its head office to Sunrise and closed its Canadian manufacturing.

Its shares continue to trade in Canada and closed Thursday at 65 cents, up seven cents on the Toronto Stock Exchange, prior to the announcement.