Day & Zimmermann Inc. will remain open and possibly expand while the Red River Redevelopment Authority will be able to develop an industrial park, according to an agreement approved by the Army Thursday.

“I’m very pleased at the agreement they’ve reached, it gets exactly what we wanted,” said U.S. Rep. Ralph Hall, R-Texas. “The local people have the land to protect for the growth of the future, and Day & Zimmermann have their jobs.”

Negotiations have been ongoing for three years about almost 20,000 acres at Red River Army Depot and Lone Star Army Ammunition Plant. Both ...