State Grant Will Help Create 3,000 Jobs In North Texas
Vought Aircraft Industries says it's
in line to receive a $35 million grant from the Texas Enterprise
Fund, which is administered by Texas Gov. Rick Perry's office. In
addition to the grant, Vought will work with the governor's office,
the General Land Office and several other Texas state agencies to
facilitate the creation of 3,000 new jobs in Texas by the end of
2009.
"Today, our company takes a new direction, and we see this Texas
Enterprise Fund grant as the first step of a larger plan that, when
combined with our own capital resources, will allow Vought to
modernize our facilities and position ourselves for the future,"
said Vought's President and Chief Executive Officer Tom Risley.
"With the commitment of $35 million in Texas Enterprise Fund
dollars, we are doing our part to leverage a major economic
expansion by a valuable Texas employer that will bring 3,000 jobs
to Texas, attract additional employers to our state, and provide
the revenue we need to sustain important public investments in
areas like education and health care," said Governor Rick
Perry.
"Governor Perry, Speaker Craddick
and I recognized the enormous economic impact that an investment in
Vought Aircraft would have on our state economy. By choosing to
invest in Vought, we're bringing good jobs to Texas, and laying the
groundwork for additional job growth and investment in our state
economy," said Lieutenant Governor David Dewhurst.
Although not finalized, plans for the Vought manufacturing
facility in North Texas include resolving our long-term occupancy
at the existing Dallas Jefferson Street facility following
expiration of the current lease in 2006. The solution includes
investment tools at the disposal of the Texas General Land Office,
which are expected to allow Vought to solidify a long-term lease
agreement in addition to modernization and renovation of the
current facilities. State and local authorities are also committed
to providing appropriate economic development incentives.
"The prolonged and dramatic downturn in the airline industry has
been extremely challenging. We, as a company, have taken a hard
look at our long-term business plan in order to remain competitive.
Eliminating excess facility costs and plant modernization are two
areas of focus for Vought as a company," said Risley.
In connection with the modernization of the Dallas facility,
Vought intends to move work from its Stuart (FL). and Nashville
(TN) facilities to its Dallas site. The Stuart facility has been
under tremendous economic pressure for sometime as a result of the
falling demand in the airline industry. This pressure has
intensified with the recently announced slowdown by Boeing on the
767 Tanker program. The Nashville facility contains over 2 million
square feet, a large portion of which is not used. Operations at
these facilities will transition to the Dallas site, avoiding the
costs required to modernize and maintain those sites going
forward.
Work at the two facilities will be
transitioned to the Dallas location gradually over the next 18 to
36 months. Currently, Nashville and Stuart employ approximately
1,000 and 375 people, respectively, in manufacturing, clerical,
professional and management positions. Vought intends to offer all
employees in these operations the opportunity to transfer to Dallas
with accompanying relocation benefits. For Nashville's represented
employees, Vought understands that it has certain bargaining
obligations with the IAM&AW, and will fully comply with those
obligations. Employees at the affected facilities will be provided
a schedule of the transition to Dallas, once the plans have been
refined. Employees choosing not to move will receive completion
bonuses and a severance package.
"While dealing with these types of issues is never easy, we feel
that these plans are necessary to ensure that Vought is
well-positioned, both now and in the future, to better meet the
needs of our customers, the current industry environment and to be
prepared for opportunities for growth," concluded Risley.
Some programs that Vought will establish in Dallas will require
air delivery of large structures. Runway availability is a key
element of the consolidation plan. The City of Dallas and the State
of Texas plan to reopen the Hensley Field runway that is located
next to the company's Dallas site. The runway could be used by
Vought as a private industrial airfield to meet these new program
requirements.
In addition to creating more manufacturing jobs in the North
Texas region, Vought intends to create new engineering and design
opportunities. The positions would be facilitated through a
strategic relationship with the University of Texas at Arlington
(UTA). Together, Vought and UTA plan to establish an engineering
research program through which UTA students will collaborate with
engineering teams at Vought on grant proposals and research and
development projects.