Atlas Twp.-A local company recently landed part of a $6.8-million defense contract to build assembly equipment for U.S. Army smoke grenade production.
Township-based Burton Industries Inc., 6202 S. State Road, will build the conveyer system, essentially an assembly line, for the Pine Bluff Arsenal in southeast Arkansas for the U.S. Department of Defense. The award was announced Oct. 15 at a Genesee Regional Chamber of Commerce Partners for Progress event at Burton Industries.
Greg Johnson, vice president and sales manager of Burton Industries, said they started working on the government job in mid-February and were notified of the new defense contract in early October.
‘We are very encouraged by this decision and hope this will spell more contract work down the road,? he said.
Burton Industries, Inc. has been in business locally since 1966 and now occupies a 52,000 square foot building just north of Perry Road on M-15.
Johnson added that no grenades or live ammunition will be kept on the township site.
‘We anticipate the project will be completed in about 18 months. There are no guarantees, but we hope to have about six laid-off employees called back to work. Over the last few years we, like other businesses, had a slowdown due to the economy. That’s why we have diversified over the past few years to seek non-automotive-related business,? he added.
The government contract is not the first for Burton. Industries, said Johnson. Over the past few years they have received several smaller jobs, most less than $10,000. The contract will be shared with other companies, with $5 million going to Burton Industries.
Also key, said Johnson, is the support of Atlas Township Supervisor Shirley Kautman-Jones and other local officials who recently voted to provide tax breaks to support Burton Industries? future growth. The tax abatement which must next be approved by the Michigan Economic Development Corporation will be for 15 years.
‘Hopefully they can create some new jobs or hire back employees that were laid off,? said Jones.
Burton Industries will begin designing and manufacturing the assembly equipment in early 2010.