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News Room

KIHOMAC’s Expansion to Boost Utah’s Aerospace Industry

August 13 2015 - 11:41 am

Press Release
For Immediate Release

August 13, 2015

Michael Sullivan, GOED Communications Director

Scot Merrihew, Chief Operating Officer

KIHOMAC’s Expansion to Boost Utah’s Aerospace Industry
Expansion will grow company’s aerospace support capabilities

SALT LAKE CITY, UTAH—KIHOMAC, along with the Governor’s Office of Economic Development (GOED) Board, announced today that KIHOMAC will consolidate and expand its aerospace composite and metal manufacturing operations in Utah, generating up to 70 new advanced jobs.

Utah’s aerospace community provides composites and manufacturing support to many world-leading aerospace companies, developing parts and technologies for everything from the F-16 to the Boeing 787. KIHOMAC’s rapid prototyping and production of aerospace metal and composite assemblies have thrived within the state’s robust aerospace sector.

“Utah is a world leader in aerospace and defense,” said Val Hale, executive director of GOED. “High quality companies like KIHOMAC bolster that reputation and our ability to provide world class products to the aerospace industry.”

KIHOMAC provides engineering, reverse engineering, prototyping, manufacturing and composite manufacturing to multiple aerospace companies and government entities. It currently contracts with Air Force, Navy and Marine Corps customers at Hill Air Force Base in Utah and across the country. The expansion will combine and streamline all operations and services into one Utah location, allowing the company to produce everything from A-10 flight control surfaces and F-16 vertical stabilizers to Navy hovercraft rudder assemblies. New positions will include composites engineers, program managers, skilled technicians, quality control inspectors, machinists and more.

“We are very excited with the plan to expand our Utah operations,” said Ki Ho Kang, president and CEO of KIHOMAC. “The state of Utah and city of Layton have been great partners. With a business friendly environment and the availability of a skilled and dedicated workforce, they have enabled the company to grow and invest back into the local community.”

KIHOMAC has indicated that its expansion will be creating up to 70 jobs in the next five years. The total wages, including medical benefits, in aggregate are expected to exceed 125 percent of the county wage. The projected new state wages over the life of the agreement are expected to be $14,916,129. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $816,362 over five years. The expansion will include a 125,000 square foot facility and represents more than $10 million in new capital investment by the company, in addition to the $5 million already invested in the existing equipment and facilities

“KIHOMAC has been a significant part of Utah’s aerospace industry for years, and we are excited to see them continue to grow in the state,” said Jeff Edwards, president and CEO of the Economic Development Corporation of Utah.

As part of the contract with KIHOMAC, the GOED Board of Directors has approved up to a maximum tax credit of $122,454 in the form of post-performance Economic Development Tax Increment Finance (EDTIF) tax credit rebate, which is 15 percent of the new state taxes KIHOMAC will pay over the five-year life of the agreement. Each year as KIHOMAC meets the criteria in its contract with the state, it will earn a portion of the total tax credit rebate.


About the Utah Governor’s Office of Economic Development (GOED)

The Governor’s Office of Economic Development (GOED) charter is based on Governor Gary Herbert’s commitment to economic development statewide. Utah’s economic development vision is that Utah will lead the nation as the best performing economy and be recognized as a premier global business environment and tourist destination. The mandate for this office is to provide rich business resources for the creation, growth and recruitment of companies to Utah and to increase tourism and film production in the state. GOED accomplishes this mission through the administration of programs that are based around targeted industries or “economic clusters” that demonstrate the best potential for development. GOED utilizes state resources and private sector contracts to fulfill its mission.  For more information please contact:  Michael Sullivan, 801-538-8811 or


Since our founding in 2003, KIHOMAC has established an outstanding track record of support for the requirements of our US Government customers, as evidenced by our portfolio of “Exceptional” rater Contractor Performance Assessment Reporting System reports. Now, with over 250 employees, we have expanded our capabilities to include systems engineering services, reverse manufacturing and custom fabrication, engineering analyses, and sustainment solutions for aerospace vehicles.  Our ISO 9001:2008 and AS9100C certified prototype engineering and fabrication capability addresses customer manufacturing needs that require high engineering content and specialty manufacturing equipment. The center is optimized to cover all elements of the design, manufacturing, fabrication and assembly value stream for the low-rate-high-mix sector. This is essential for producing high tolerance tooling and high quality metal and composite parts.