A military and aviation engineering and manufacturing company will build a second facility in Layton, creating 177 jobs over the next seven years.
Virginia-based Kihomac Inc. is a veteran-owned small business that focuses on aerospace engineering, reverse manufacturing, custom fabrication and lifecycle support for military and commercial aviation.
The $36.2 million, 78,000-square-foot expansion project at Layton’s East Gate business park was announced after the company received a tax credit incentive from the Governor’s Office of Economic Development board at its September meeting.
“Utah has been an important part of Kihomac’s growth for many years, and we continue to see tremendous opportunity to expand our capabilities here,” Adam Grimm, company president and COO, said in a prepared statement.
“The state provides an exceptional combination of a highly skilled aerospace and defense workforce, proximity to key customers and partners, and a business environment that supports continued investment. This expansion will allow us to grow our engineering and advanced manufacturing capabilities, create high-quality jobs, and increase our capacity to deliver innovative, mission-critical solutions to our customers. We appreciate the support of the state, Davis County, Layton City and our economic development partners as we continue investing in Kihomac’s people, capabilities and future in Utah.”
Founded in 2003, Kihomac provides engineering, advanced manufacturing, reverse-engineering, sustainment and lifecycle support solutions across the aerospace and defense sectors. With more than 400 employees, Kihomac supports customers across the full system lifecycle — from engineering and reengineering aging systems to manufacturing complex components and assemblies and developing platform upgrades. The company’s capabilities help improve aircraft availability, extend the service life of critical weapon systems, strengthen the defense industrial base, and ensure platforms remain mission-ready as operational requirements evolve.
The company’s core competency is extending U.S. investments in major aerospace weapon systems through complete lifecycle support. Kihomac develops solutions for aging weapon systems by reverse-engineering and reengineering then manufacturing systems and assemblies to keep weapon systems mission-ready.
The company has over 400 employees at six facilities and offices, including those in Texas, Oklahoma, Utah, Georgia, Maryland and Virginia. Its website indicates it supports 26 military weapons systems.
The company’s subsidiaries include TCB Composite LLC in Layton. It designs, prototypes and produces composite aerospace products at its 142,000-square-foot composite center, which includes offices; conference rooms; and a production floor with machinery, tools and instruments.
The company was approved for a state incentive in 2015 tied to the creation of 70 high-paying jobs in a $9 million project in Layton. The incentive was for up to $212,525 over five years.
Ki Ho Kang, the company’s CEO, told the GOED board that that 140,000-square-foot project actually created 120 jobs.
“That facility for us has been responsible for about $300 million worth of revenue over the last 10 years, and we believe the expansion is going to help us even to further and better our work,” he said.
The company, he said, has had several military contract wins this year “and we currently have $200 million in manufacturing backlog, and we would like to do that, as much as we can, in Utah.”
The state incentive is in the form of a tax credit of up to about $1.55 million over seven years. The project is expected to generate new total wages of nearly $85 million over seven years, with the new jobs paying an average of $93,199. New state tax revenue during that time is projected at over $5.7 million.
The expansion project involved GOED, the Economic Development Corporation of Utah, Layton City, Davis County and R&O Construction.
Layton Mayor Joy Petro commended Kang for being “such a great community partner.”
“I want to make sure that we continue to have him there and to help him with anything he needs, because he has been a fabulous partner, not only in Layton but throughout the county…and also the state,” Petro told the GOED board. “I think there’s no doubt in my mind that this is a win for all of us.”
“Because of what he’s done and the environment he’s built at East Gate, it’s allowed other people to expand and come to us,” said Alex Leonardi, Davis County economic development director. “So, it’s not just beneficial for Layton and for David County, but it’s also beneficial for Utah and the United States Air Force.”
“Utah’s aerospace and defense sector is a key component of our long-term economic plan,” Jefferson Moss, GOED commissioner, said in a prepared statement. “Kihomac’s growth in Davis County highlights our commitment to supporting high-tech manufacturing, ensuring a strong supply chain, and delivering mission-critical capabilities for national defense. Their investment opens up skilled engineering and fabrication jobs that support our statewide economic goals.”
“We’re excited to see Kihomac continue to grow and invest in Utah,” said Ryan Starks, executive director of EDCUtah. “Layton City and Davis County have demonstrated a strong commitment to supporting Utah’s aerospace industry and creating an environment where companies like Kihomac can thrive. We’re thrilled to see Kihomac choose to expand in Utah and look forward to the new opportunities this investment will create for the community and our state.”
GOEO does not provide upfront cash incentives. Each year that an incentivized company meets the obligations in its contract with GOEO, it will qualify to receive a portion of the new, additional state taxes the company paid to the state.
