CHANUTE — Orizon Aerostructures, which manufactures components for several global aircraft firms, is coming to Chanute.
The deal — projected to bring up to 150 jobs to the community — was clinched Monday when Chanute city commissioners approved an incentive package valued at $2.6 million.
Orizon will move into the former Hitchhiker plant near the Martin and Osa Johnson Airport, with plans to build its own 70,000-square-foot facility soon thereafter. Construction is expected to start later this year.
Orizon Aerostructures was previously known as Kansas City, Mo.,-based Tech Industries.
“We have parts that we have to be shipping out of Chanute before the sun sets on this year,” said Charlie Newell, chief executive officer of Tech Industries, according to the Chanute Tribune. “Chanute was the right choice for us because of its proximity to our existing facilities, the ability to assist with our hiring and training needs, and the proven mechanical aptitude and work ethic of the people in southeast Kansas.”
The company will begin the hiring process by July 31, the Kansas City Star reported.
Matthew Godinez, executive director of the Chanute Regional Development Authority, told the Star Chanute competed against 48 other communities in the area — including Iola — to serve as Orizon’s home.
Orizon manufactures parts and subassemblies for commercial aerospace, military fixed wing, rotorcraft, missile/ground support and general aviation manufacturers and suppliers. Its customers include Boeing Defense, GE, General Dynamics, GKN, Lockheed Martin, Lycoming and Northrop Grumman. Godinez also announced Tuesday that Orizon had won the contract to build the cockpit/pilot portions of the F-35 stealth fighter.
Orizon has operations in North Kansas City, Mo., and Grove and Owasso, Okla.
The company’s investment is pegged at about $65 million, the Tribune reported. The company plans to spend $25 million over five years on capital improvements, and $40 million on payroll.
MUCH OF THE debate at Monday’s Chanute City Commission meeting, according to the Tribune, focused on how the city would pay for improvements this year, including extending water and sewer infrastructure to the new plant.
The development agreement ordinance allows the city to issue general obligation bonds, the Tribune reported. It wasn’t immediately clear if the bonds would be paid off with property tax or utility rate increases.
Orizon plans to apply for a Community Development Block Grant.
Chanute City Manager Jeff Cantrell said a worst-case scenario without the grant, would be a total city investment of about $4 to $5 million.
Part of the issue, according to the Tribune, is possible relocation of a railroad track south of the airport runway, which could cost $1.9 million.
ORIZON would be Chanute’s second aircraft supplier. Chanute also is home to a plant operated by Wichita’s Spirit AeroSystems.
