yee@trident.arc.nasa.gov (Peter E. Yee) (03/29/89)
Sarah Keegan
Headquarters, Washington, D.C. March 28, 1989
RELEASE: 89-40
FINANCING ARRANGED FOR AMMONIUM PERCHLORATE PLANT
Western Electrochemical Company, Cedar City, Utah, has
finalized arrangements for private financing through Security
Pacific Bank Washington, Seattle, for construction of an ammonium
perchlorate (AP) production plant to be located in Cedar City.
Western Electrochemical Company is a subsidiary of Pacific
Engineering and Production Company (PEPCON) and an AP
subcontractor to Morton Thiokol Inc., manufacturer of the Space
Shuttle solid rocket motor. Construction of the Cedar City plant
is underway and production is expected to begin in the summer of
1989. Western Electrochemical plans to repay the privately
financed capital investment in the new plant within 7 years.
AP is an oxidizing chemical used in virtually all solid
propellant rocket motors, including the Space Shuttle's solid
rocket motor. NASA and the Department of Defense have agreed to
combined purchases of 20 million pounds a year of AP for 7 years
from Western Electrochemical Company.