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Drone manufacturer
seeks state funding

The firm would like to set up
in Hawaii to produce unmanned
aircraft for the military


The company behind a solar-powered plane that set altitude records off Kauai is seeking $30 million in state financing to build unmanned aircraft in Hawaii.

California-based AeroVironment Inc., which launched the Helios "flying wing" to 96,500 feet in 2001 in conjunction with NASA, also builds smaller unmanned aircraft for use by the military. The company hopes to expand production to Hawaii.

"We've been trying to get our products in Hawaii for several years," said Matt Kobayashi, AeroVironment's business development and operations manager in Hawaii.

AeroVironment's Pointer unmanned aircraft is used by the Army and Marines for reconnaissance. It is smaller than Northrup Grumman Corp.'s Predator, the unmanned craft known for firing missiles at suspected al-Qaida hideouts and caravans in Afghanistan.

The 10-pound, glider-like Pointer, with its 8-foot, 4-inch wingspan, has been in service with Special Operations units since 1989. It is powered by an electric motor, and its on-board camera transmits real-time video to a pilot and observer on the ground.

The Pointer is one of four unmanned aircraft AeroVironment hopes to produce in Hawaii, Kobayashi said. The Army and Marines also use two of the others the company wants to manufacture here.

"We have a big backlog of small UAVs," Kobayashi said.

AeroVironment is eyeing the hangars at Kalaeloa as a possible location to build a design and manufacturing facility.

But it needs to attract federal funding to support the operation, Kobayashi said. To do that, it needs to show a commitment to build the facility. And it needs to show that commitment by the end of April.

So the company is asking the state to finance the design and infrastructure of the facility through $30 million in special-purpose revenue bonds.

The company would be reliant upon federal funding to pay off the bonds, Kobayashi said.

Rep. Tulsi Gabbard-Tamayo (D, Waipahu-Ewa) and eight other representatives, both Democratic and Republican, have introduced a bill (HB 1753) to approve the bond issue. The House Committee on Economic Development & Business Concerns heard the bill Monday and is recommending it pass to the Finance Committee.

"I think it's worth further discussion," said committee Chairman Brian Schatz (D, Tantalus-Makiki).

If AeroVironment is not able to attract federal government participation, it will not be able to use the bond issue.

The company said it could expand its manufacturing operation in Simi Valley to meet the demand. It could also build new facilities in other states, he said, but Hawaii remains its first choice.

"I really want to build an industry here," Kobayashi said. "I want to build AeroVironment Hawaii to be the gateway to Asia."

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