An Omaha-based company has won tax incentives to start an ammunition re-manufacturing operation in leased space at the Lake City Army Ammunition Plant.
American Marksman plans to buy ammunition that Lake City makes for the U.S. Department of Defense but which fails to meet federal specifications. Orbital ATK, which operates the plant, currently destroys that rejected product.
The new operation will take apart the rejected pieces and reassemble ammunition for the commercial market, American Marksman chief executive Tom Schmidt said.
Missouri granted tax credits to help the Omaha company train as many as 65 employees, Schmidt said. He said the company also is seeking assistance for its plans to renovate Building 4 at the Lake City plant where American Marksman will work. He said the renovation is a $35 million project.
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The state did not indicate the total amount of incentives in its announcement of the agreement with American Marksman. The Missouri Department of Economic Development lists similar agreements with other employers in the state, including Pfizer, Boeing and Cushman & Wakefield.
No decision has been made on the request for renovation assistance, Schmidt said.
Earning the training tax credits requires American Marksman to meet minimum wage and benefit levels and employment levels, Schmidt said.
Missouri also helped find job applicants for the American Marksman operation.
“Missouri really rolled out the red carpet,” Schmidt said.
The tax incentive agreement allows current ATK employees to apply for the American Marksman jobs.
“We’d love to have them come work with us,” Schmidt said, acknowledging his is a smaller company and that many ATK employees have long tenure at the Lake City operation.
Schmidt said American Marksman has interviewed 30 applicants, including some former ATK employees.
American Marksman currently recycles spent ammunition pieces, sells ammunition components to other manufacturers and sells assembled ammunition mostly as a supplier to other companies.