Traverse City Record-Eagle

Business

March 6, 2014

Cadillac manufacturer to make pallets

CADILLAC — A northern Michigan business will benefit from a $133 million contract with the United States Air Force.

AAR, an international aerospace and defense contractor, secured the February deal with the Air Force to produce and repair of cargo pallets. A news release from the company said AAR’s Mobility Systems, based in Cadillac, will manufacture and maintain the lightweight balsa wood pallet products.

“It’s work we’ve done in the past and we are glad to be selected again,” said Kathleen Cantillon, global director of communications for AAR. “The work is definitely being done in Cadillac.”

The Air Force contract has a two-year base period value of $133 million and an estimated value of $323 million over five years, according to the company. The company also secured a separate $13.8 million contract in late February to produce the same product for the United Kingdom Ministry of Defence.

It’s not clear yet whether new jobs will be created or if existing staff at the Cadillac plant will complete the manufacturing.

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