Official says plant to send back funds

Eds: ADDS details.

YODER, Kan. (AP) -- An aerospace interiors company has decided not to move forward with its expansion plans and has offered to pay back local government incentives.

Hutchinson/Reno County Chamber of Commerce President Dave Kerr said Friday he received a call two weeks ago from Decrane Aerospace/Precision Pattern Interiors, which makes aircraft interiors for business jets.

PPI leaders told Kerr that because of the severe downturn in the general aviation market, they were going to delay their plans to move into the former Collins Industries building. They had spent $400,000 refurbishing the plant in order to expand. The building is in the Yoder Industrial Park.

They also said they would return the $25,000 in incentive money PPI had received from four local government entities -- Reno County and the cities of Hutchinson, South Hutchinson and Haven. The money was intended to help the company move into the new plant.

Those refunded incentives have either already been sent or will be sent this week, Kerr said.

"It's disappointing but understandable with the downturn in the corporate aircraft business," said Hutchinson City Manager John Deardoff. "It certainly was a very promising company and we were excited to be a part of their growth at the Yoder Industrial Park, but due to the economy, certain things like this happen."

He said they would discuss restarting the incentives when the economy rebounds.

The renovation of the Yoder facility is complete, but for now, that facility will sit empty. PPI intends to move into the facility once the market picks back up, Kerr said.

In the meantime, PPI will bus 15 Yoder employees to the main plant in Wichita to maintain the core skills those employees have acquired.

"This is one of the most organized, best-to-work-with companies that we've ever dealt with," Kerr said. "We think very highly of Precision Pattern and we're going to be ready to welcome them back to Yoder when the market expands."

------

Information from: The Hutchinson News, http://www.hutchnews.com