GKN lands $16 million contract

March 25, 2008

Donna Sparks
Tribune Managing Editor
Tallassee Tribune

GKN will soon see more employees and possible expansion after a new agreement with Honda Aircraft Inc., out of North Carolina to build tooling and make five prototypes for the company that will amount to a $16 million contract.

The announcement was made in the form of a resolution presented by Attorney Roy Goldfinger, representing GKN Aerospace, to the Tallassee Industrial Development Board during its regular meeting March 11.

“This project is growing out of the major expansion that GKN underwent two years ago,” Goldfinger told the board. “The main office in Great Britain thought it would be best to have this particular project considered as a separate one.”

According to Goldfinger, the project is a very large one, and the abatements have started to run and will expire in 10 years.

“This is a multi-level project,” Goldfinger pointed out. “Phase one will involve the acquisition of the equipment to be able to make the prototypes for Honda Aircraft.”

The beginning of the project will only increase GKN’s number of employees to 20, but if the project is successful, it could mean more employees hired and more expansion at the Tallassee facility, Goldfinger told the board.

“GKN will agree to make the tooling on Honda’s behalf and will be responsible for the sales tax for the abatements,” Goldfinger stated.

Ultimately Goldfinger will be returning to the IDB with an agreement.

“The project is happening quickly and we want to have it approved as soon as possible and have the abatements approved,” he said. “We are very hopeful this project at GKN will generate more jobs for the area.”

The IDB unanimously approved the resolution.

Eric Basinger, director of the Elmore County Economic Development Authority, was present for the announcement and was pleased with what it will mean for the county as a whole.

“GKN Tallassee has major roles in the production of parts for some of the most innovative aircraft in the world,” Basinger stressed. “Whether it is for defense or commercial, GKN has a major part. But the selling point for us is GKN has facilities all over the world, and they continue to use the Elmore County area to locate (their expansions).”