Coast Composites Inc., an Irvine-based maker of molds for airplane parts, is more than doubling its space with a big Santa Ana lease and plans to add more than a hundred workers in the next few years.
The company is leasing 114,000 square feet of industrial space on South Lyon Street near the Costa Mesa (55) Freeway. Coast plans to keep its 78,000-square-foot facility near Bake Parkway in the Irvine Spectrum.
“We have been planning to expand for the past two years,” President Jerry Anthony said. “The new site is going to allow us to substantially increase our growth.”
Coast’s eight-year lease is valued at $8 million. The company had looked elsewhere in Orange County, as well as in Long Beach and Corona, said Jeff Cannon of tenant representative firm Studley Inc.
“I’m excited about the deal because it says that there is still an opportunity to manufacture and be profitable in Orange County,” Cannon said.
Cannon and associate Tim Schramm represented Coast in the lease. Landlord ProLogis of Denver represented itself.
About 45 of Coast’s 122 employees are set to work in Santa Ana. The company plans to add more than 150 manufacturing jobs with an expected doubling in sales in the next four years, Anthony said.
Coast, a unit of Britain’s Hampson Industries PLC, counts yearly sales of $40 million.
The company’s welding and forming units are expected to move to Santa Ana, which should be up and running by December.
All of the company’s manufacturing is slated to move to Santa Ana, except for some specialty milling machines that will remain in Irvine, Anthony said.
Powerwave Subleased
Powerwave Technologies Inc., the Santa Ana-based maker of wireless tower gear, had been subleasing the building, which is near its headquarters.
Coast, which is spending $3 million in electrical wiring, cranes and office furniture, initially plans to take half of the one-story building with an eye toward taking it all by 2011.
Italian marble importer Trend USA is subleasing the rest of the space for five years.
Coast needed high ceilings, outside storage space and proximity to the Irvine office, Anthony said.
The building is in a state enterprise zone, where employers get tax breaks on hiring and investment.
Coast makes large molds to produce carbon fiber and resin parts used in commercial and military aircraft. Customers include Raytheon Co., Northrop Grumman Corp., Boeing Co., Lockheed Martin Corp. and Airbus SAS.
Boeing Top Customer
Commercial plane makers have driven growth recently as they seek lighter materials to boost fuel efficiency, Anthony said.
Boeing is Coast’s No. 1 customer, Anthony said. The company supplies molds for Boeing’s upcoming 787-9 Dreamliners.
