Menominee-based company Enstrom Helicopter Corp. was recently acquired by the MidTex Aviation of Texas, and will now re-open as Enstrom Aerospace Industries.
“This is a unique opportunity to acquire unique assets and put capable people back to work in an exciting industry,” Kevin Griffin, principal of MidTex Aviation, said in a press release.
Valued at $10.5 million, the acquisition covering "aircraft, parts, tooling, materials, drawings, factory facilities and airport lease," will now include a broader range of engineering services and aircraft manufacturing, as well as other equipment. The sale was approved by the Western Michigan Bankruptcy Court.
“I think the sale process was successful. It produced a buyer who’s intending to resume operations in Menominee. It’s a good outcome for the debtor. It’s a good outcome for the former employees, and it’s a good outcome for the city,” attorney Thomas Radom of Butzel Long, who represented Enstrom Helicopter, said.
The new establishment will be funded entirely by MidTex Aviation of Texas. The team in charge of the launch plans to work with the Federal Aviation Administration on new aerospace to launch several aerospace projects to develop Electronic Vertical Take-off and Landing (eVTOL) aircraft, military equipment, among other air mobility products.
Enstrom will contribute its own supply of parts and service, except manufacturing piston-powered F28F and 280FX helicopters and the turbine-powered 480B. According to EH Extra, some of Enstrom’s currently laid-off employees will soon be rehired.
“There appears to be a good-faith effort to bring back employees,” Radom said. "The employees’ know-how could be valuable to the new owner."
Before landing in the hands of Chinese firm Chongqing General Aviation Industry Group Co., Enstrom was originally founded in 1959 by mining engineer Rudy Enstrom. The last of several acquisitions made by Chongqing took place in 2013 as it acted on plans to expand the brand.
“All I know is the company wasn’t able to generate a profit for a number of years and lost money. The Chinese had put a substantial amount of money into the company to keep it afloat. The Chinese reached a point where they didn’t want to put any more money into it,” Radom said. “They would have needed more money, they would have had to revamp their technology to compete with state-of-the-art helicopters produced.”
After building a staff of 200 during several years of operation, the firm, last based in Michigan, ceased operations after declaring bankruptcy in January following three years of financial and operational hardships, EH Extra reports.
“The industry has been down during COVID," company President Matt Francour told the EagleHerald. "We’ve basically just been trying to survive. The company was losing money."