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Virginia: Matchmaker, Matchmaker, Make me a (Expansion) Match

It's a never-ending love story between businesses and Virginia.

  [ 5/1/2000 ]  By: Rachael Hedgcoth, Associate Editor   Print This Article  Reprint/License This Article  E-mail This Article To A Friend  
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While people near and far have long heard the familiar state phrase, "Virginia is for Lovers," there's now a new state mantra making the rounds - "Virginia is for Business." This is the message that the state of Virginia is extending to companies in its new marketing campaign.

However, as evidenced by the state's continual mode of business activity, it is clear that businesses have been hearing this call for some time.

Creative Memories develops in Richmond

Richmond's design was the perfect match for The Antioch Co., which will open a $7.5 million manufacturing and distribution facility this fall for its subsidiary, Creative Memories.

The new facility will be the site of 40 new jobs by the end of 2002 for the international company that offers photo-safe scrapbook albums, supplies and hands-on workshops.

The Greater Richmond-Chesterfield County area was chosen because of its amenities, including proximity to international shipping hubs, according to Ole Dan, vice president of operations for Creative Memories.

"The presence of an international airport and deep-water port access were critical to our decision," said Dan.

Creative Memories has over 45,000 consultants around the world who instruct people on how to organize photos and memorabilia, chronicle family history, and create meaningful family albums.

The new facility will support about 20,000 consultants in the eastern United States as well as businesses in the UK, Germany and other European countries.

A three-shift operation at the 121,000 square foot facility will produce more than 40,000 items in 10,000 packages daily.

Proximity to customers helps companies meet growth goals

In the southern section of Virginia, near Farmville in Prince Edward County, SMI Steel Products announced in March that it would open its third facility in the state.

The new manufacturing facility, which is expected to be operational by September of 2000, will be the catalyst for 150 new jobs.

Proximity to supplier and customer markets was a key lure for the company, which will manufacture steel beams for building construction.

"This region has much to offer: proximity to a wide flange beam supplier that recently became operational in Virginia, transportation links to major markets, and good people with a solid work ethic," said Marvin Selig, chairman of the CMC Steel Group, parent company of SMI Steel.

The company will also receive work force training services from the state.

For Sysco Foodservices Inc., meeting the needs of its customer base called for a major growth spurt. As a result, the company announced in February that it would build a 285,000 square foot operations and distribution center in Suffolk.

A second phase to the facility will unfold within the next five years, spurring on the plant size to a total of 500,000 square feet.

"We are very excited about the growth opportunities this will provide for our employees, our suppliers and our customers," said John Hall, president and CEO of Sysco. "Hampton Roads is an excellent logistical choice, as well as a superb food and entertainment market, which is the industry we serve."

Road is straight and narrow for auto companies

As in much of the Southeast, Virginia has become a magnet for automotive industry activity. In July of '99, a groundbreaking ceremony was held for a $148 million expansion of Volvo Trucks North America Inc., in Pulaski County, in southwest Virginia.

The three-year project is anticipated to result in 1,277 new full-time jobs. About 600 jobs have already been created and, as the project progresses, another 677 will be filled.

The expansion is designed to increase the facility's production of commercial trucks by 66 percent, to 50,000 units annually.

Volvo is also one of the first companies to participate in the Virginia Investment Partnership (VIP) program, which helps Virginia-based manufacturers expand through economic grants and tax credits or incentives.

Volvo officials anticipate that over a 10-year period almost $60 million in performance-based incentives will be available to support expansion efforts as well as the hiring and training of personnel.

Companies procure support from local work force

Virginia's work force has always been one of the state's greatest assets. Currently, over 350,000 students are educated in 85 institutions of higher learning.

Additionally, workers at several Virginia manufacturing facilities have been recognized for having the highest production levels of any other facility within their organizations.

For Blue Ridge Technology Inc., a manufacturer of environmentally safe paints and inks, the work force was a major attraction when it selected Henry County, near the southwestern city of Martinsville, for a new facility.

The company will employ 40 people initially in a 30,000 square foot facility, and plans call for up to 100 employees by the end of 2000.

"We selected Henry County because of the area's quality work force," said Al Mersberg, president of Blue Ridge. "Other factors included a very favorable business climate, an excellent facility in which to locate, and Patrick Henry Community College's training and support."

College training and technical assistance was also a plus for Tower Automotive, which announced in March that it will construct a second manufacturing plant in Botetourt County, in southwest Virginia.

"The Roanoke Valley site was selected because it is pro-business with an excellent transportation network, work force readiness and high quality of life," said Dale Hemberger, business unit leader of Tower Automotive. "We are impressed with the technical support offered to us by Virginia Western Community College, the potential of the new Greenfield Education and Training Center, and Virginia Tech."

Construction on the 250,000 square foot facility is expected to get underway later this spring, with production slated to begin during the first quarter in 2002.

Success is no stranger to all walks of business in Virginia

A variety of businesses contribute to the overall vitality of Virginia's business climate. There is not a spot around the state that is not boasting some kind of growth.

Virginia Beach is home to a shining example of phenomenal growth. Geico Direct, which set up shop over the last two years in the area, is continuing on its growth streak.

In September of '99, the company announced it would hire 400 additional employees for its Virginia Beach facility, where it already houses 1,300.

The site contains sales, service and claims teams to handle the business generated in Virginia and North Carolina. Geico is the second largest direct marketer of auto insurance in the United States.









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