Flameco of Ogden has won a three-year contract worth $1.88 million to manufacture components for McDonnell Douglas Corp.'s MD-11 commercial airliner.
The contract carries a a two-year renewal option, said Russ Behrmann, spokesman for the Utah Department of Community and Economic Development.Behrmann said Flameco will manufacture titanium sidewall panels for the aircraft's J-box assembly, located in the aft end of airplane about its engine mount.
Last August, the manufacturing plant won a $24 milion contract to manufacture titanium-based hot and cold air ducts for the MD-80 and MD-11 aircraft. The three-year contract also carries a renewal option.
The MD-11 is a long-range, wide body aircraft that utilizes three jet engines. The MD-80 is a twin-jet aircraft primarily used for short to medium length trips.
The $10 million Industrial Assistance Fund established by the Utah Legislature to bolster economic development played a role in landing the two contracts, Behrmann said.
The fund provides low-interest loans to qualifying companies interested in locating in Utah or expanding their Utah operations. If a company generates enough Utah contracts, payroll or related economic, the loans are not repaid in cash. Instead, the businesses are granted credits against the loans.
"It is something that would count toward credits in the IAF (Industrial Assistance Fund)," said Behrmann of the latest Flame-co contract.
Two Utah legislators have introduced bill to pump more money into the fund but neither has yet passed.
Flameco produces advanced precision fabrications and assemblies for jet aircraft engines. It was purchased in 1989 by Barnes Group, based in Bristol, Conn.