The aircraft design company that won a million-dollar federal subcontract in November has chosen a Spanish Fork site for its factory.
The City Council on Wednesday approved supporting Winding Technologies in its issuing of industrial development revenue bonds to finance repairs and renovations to its new home, the old Kirby building."The money will allow them to fix up the building and get it into working order," said Clyde Swenson, city treasurer. "They need to make a few changes before they can start working on their contracts." Swenson said the large size of the building and the site's proximity to railroad lines were big selling points. The trains will make it easy to transport materials in and out, he said.
Swenson said Winding Technology had several production and design contracts, but the largest is to build door air deflectors for the Air Force's new jumbo cargo plane, the C-17.
The air deflecting panel is extended as a windbreaker when paratroopers jump from the plane. Without the special panel, winds could flip divers head over heels or slam them back into the aircraft.
The panels are made of a resin and epoxy material that is lighter and stronger than metals previously used for construction, company officials have said.
If the government exercises all of its options, Winding Technologies could manufacture as many as 40 panels for each of the next 10 years. That would increase the worth of the contract, awarded by McDonnell Douglas last November, to $6 million.
To Spanish Fork, the deal will mean a stronger economic base. Since it is a wholesale rather than retail business, there will be no direct gains from sales tax, but the business will pay property tax on the site and will hire approximately 20 workers. Building repairs and groundskeeping will also beautify the north end of town, where the Kirby building has stood vacant for several years.
Swenson said the city's sponsoring the application for bonding may help Winding Technologies get state funding at a low interest rate. The sponsorship will not put any financial obligation on the city or its residents, he said.
"The deal is pretty much set," Swenson said. "The company has earnest money. Spanish Fork and Winding Technologies definitely feel like they can sew it up."