Piedmont Propulsion doubles space at Smith Reynolds Airport

Oct. 19, 2012

Oct. 18--The doubling of operational space at Smith Reynolds Airport is projected to spur a major growth spurt for Piedmont Propulsion Systems LLC.

Piedmont confirmed Thursday it has completed its move into a 66,772-square-foot operation at 4400-4401 Lansing Drive.

Piedmont is an aircraft maintenance and repair company. It was founded in the late 1940s by Tom Davis, founder of Piedmont Aviation Inc., and served as Piedmont Aviation's propeller shop.

The company specializes in servicing aircraft for regional airlines, corporations, the military and general aviation, with customers including US Airways and FedEx.

Piedmont pledged in January it would create 25 jobs and spend up to $2 million on capital investments over five years. It already had 31 full- and four part-time employees.

"We're already one of the largest propeller shops in the country, if not the world," said Sammy Oakley, Piedmont's general manager.

"Our new facility will further improve our excellent turn times, while maintaining the highest level of quality for our customers. This expansion will enable us to pick up more business, particularly with next-generation technology for turboprops and helicopters."

For example, Oakley said the company has begun work on the propeller system for the Bombardier De Havilland Q400 turboprop.

The average annual wage for the new jobs would be $34,304, according to the governor's office.

Oakley said the company has hired five employees since committing to the expansion. "Now that we're in the new building, we will plan to hire more as we determine which equipment to buy based upon customer demand," Oakley said.

Oakley said the company particularly is looking for job candidates who have skills in working with fiberglass and composites. He said it has hired people who were trained in handling those materials at Forsyth Technical Community College. The company is working with the local N.C. Division of Employment Security office on the hiring process.

In exchange for the expansion commitment, Piedmont has been made eligible for up to $52,500 in local performance-based incentives over five years and a $50,000 grant from the One North Carolina Fund.

The company is subject to an incentive clawback provision that includes a 100 percent payback if it ceases operations at the Lansing Drive facility within two years.

Piedmont Propulsion is one of three primary subsidiaries owned by First Aviation Services Inc. of Westport, Conn.

According to the city incentive proposal, Piedmont had sales of $9.7 million and a profit of $620,000 in 2010. It had sales of nearly $7.8 million and profit of nearly $1.1 million through the first 10 months of 2011.

Tom McKim, chairman of Forsyth County Airport Commission, said having Piedmont in the Lansing facility not only provides what he hopes will be a stable tenant, but also frees up space at 3817 N. Liberty St. for a potential Piedmont Aviation Components expansion.

Airport director Mark Davidson said Piedmont Propulsion is paying $161,648 a year in rent. The rent goes up with consumer price index increases after three years. The airport commission has signed a 10-year lease with Piedmont that contains three additional 10-year options.

The airport has agreed to spend up to $400,000 on building improvements. Part of those expenditures will be paid through a $75,000 unsecured grant/loan from DataMax in which for every $2 paid an additional $1 would be forgiven. Winston-Salem City Council approved the company's request for a $100,000 loan at a 3.5 percent interest rate to help with buying equipment and machinery.

Davidson said the airport "is elated" with the Piedmont Propulsion expansion considering the Lansing building -- a former USAir landing gear building -- had been empty since 2005.

Davidson said he is encouraged by the resurgence in activity at the airport, also counting the recent major maintenance contract signed by NS Aviation LLC with United Airlines.

"The success of these and many other tenants have allowed the airport commission to generate funds to continue operating and invest in several capital improvements at the Airport," Davidson said. "Landside facilities are being upgraded, and there are several airfield infrastructure projects are under design."

Copyright 2012 - Winston-Salem Journal, N.C.