Ahsan Choudhuri speaks at a news conference on Friday in the Blue Flame Building in Downtown.

El Paso community leaders announced Friday a $40 million grant for aerospace industry developments.

From left: city Rep. Peter Svarzbein, El Paso Mayor Oscar Leeser and El Paso County Judge Ricardo Samaniego

After years of efforts, the region is taking the next step toward building major infrastructure for the aerospace and defense industries.

On Friday, at the top of the Blue Flame Building in Downtown, community leaders gathered to announce that the region was awarded $40 million from the federal Build Back Better Regional Challenge – a $1 billion grant program from the Economic Development Administration, a branch of the Commerce Department.

“UTEP has been building this for the last 20 years,” said Ahsan Choudhuri, associate vice president of UTEP’s Aerospace Center. “Now we’re using that research we’ve created over the last two decades and deploying it to create El Paso’s economy.”

El Paso was one of 21 winners selected from a pool of 529 applicants. They were announced by President Joe Biden on a video call during the news conference.

Friday’s announcement featured a number of the region’s political leaders, including U.S. Rep. Veronica Escobar, state Rep. César Blanco, Mayor Oscar Leeser and El Paso County Judge Ricardo Samaniego.

“It could be a potential of a billion-dollar industry, and we need to make sure we don’t sit on our laurels and say we’ve got it,” Samaniego said. “We have to make it happen. We have things that have potential but have also been structured already.”

Partners included in the grant award are UTEP, the city of El Paso, El Paso County, El Paso Chamber, Rio Grande Council of Governments and Workforce Solutions Borderplex.

There’s a lot packed into the $40 million grant. About $25 million will go to the city towards building an Advanced Manufacturing District next to El Paso International Airport.

The industrial park would start as a 200,000-square-foot facility where El Paso manufacturers can relocate and gain access to increased technology and security. Choudhuri said the goal is to eventually grow that facility to 3 million square feet.

Tommy Gonzalez, El Paso’s city manager, said the city is contributing about $1.8 million toward the facility and is one of many partners in the aerospace initiative.

“We want to be on the cutting edge in order to lead the way in this part of the country. I think it’s natural with what El Paso’s history in manufacturing is,” Gonzalez said. “It’s going to bring us back, but in a big way. We feel like it’s key to high-paying jobs.”

About $15 million will be allocated toward UTEP’s efforts to build an Aerospace and Defense Innovation Network for Manufacturers, which will build capacity for existing small- and medium-sized manufacturers in the region.

Choudhuri said UTEP has already begun working with manufacturers that specialize in precision machinery, machine automation and robotics. He said the grant will help some of them move into the planned airport industrial park.

Email El Paso Inc. reporter Sara Sanchez at sesanchez@elpasoinc.com or call 915-534-4422.

Email El Paso Inc. reporter Luis Rios at lrios@elpasoinc.com or call 915-534-442 ext. 132.