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.