The Port of Wilmington is the second largest U.S. seaport of entry for new Volkswagen and Audi automobiles on the East Coast and receives up to 100,000 new cars annually.

Under the terms of the agreement, Volkswagen anticipates adding another 23 acres to its present facility. At 90 acres of land under lease, Volkswagen will continue as the port’s largest tenant.

The signing of the extended lease with Diamond State Port Corp., which operates the port, represents the longest contract that Volkswagen has signed with the state.

“When we combine the highly skilled work force with the commitment from Delaware to continue to support our growth needs at the Port of Wilmington, we believe we made an excellent decision,” said Greg Smith, a spokesman for Volkswagen of America.

Two years ago, a newly constructed state-of-the-art auto berth was opened at the Port of Wilmington.

The project, which was constructed to improve port’s automobile-handling capabilities, was instrumental in retaining Volkswagen’s business at the port, and it gives the port a competitive advantage in attracting additional business to the state.

“The Port of Wilmington has the infrastructure and ocean and trucking access we need today, and its new auto berth was a factor because it will enable our transportation team to achieve increased efficiencies during unloading operations,” Smith said.

Also along the Wilmington riverfront, AAA Mid-Atlantic broke ground on its new headquarters.

The facility, which will be 157,235 square feet, is expected to be complete next year. The company is relocating its headquarters from Philadelphia. It is also relocating an operations center from Maryland to a facility in Newark.

The relocations will bring 750 new jobs to Delaware and are expected to add more than $100 million a year to the state’s economy.

The Delaware sites were picked for their central location, lower total business costs, a competitive tax structure and favorable incentives, said Allen J. DeWalle, president and CEO of AAA Mid-Atlantic.

In return for locating in Delaware, AAA Mid-Atlantic will receive a $6 million performance-based strategic grant from the state. The company will also receive about $1 million in incentives from the city of Wilmington.

INVISTA is also making its headquarters in Delaware. The company will relocate two of its operations, INVISTA Apparel and INVISTA Performance Fiber, to the state.

Delaware competed with sites in four countries and five other states for the facilities, which will be located in New Castle County.

INVISTA will also retain 350 staff and functional positions already located in the state.

“Essentially, we determined that Wilmington, of the many sites considered, would give us a cost-competitive location in a stable, business-friendly state,” said Bill Ghitis, president of INVISTA Apparel. “From this site, we are close to the fashion capital of New York City, accessible to air and rail for regional and global access, and able to work in a desirable setting that will allow our employees to enjoy a good quality of life.”

Wal-Mart, Agilent Expand DC Facilities

Wal-Mart Stores Inc. opened a regional distribution center (DC) in Smyrna, adding 1,000 jobs to Delaware’s work force.

Wal-Mart will use the 1.2 million square foot facility to stock all of its retail locations within a 200-mile radius. The DC represents an investment of about $50 million by the company.

The state, in a collaborative effort with officials from the city of Smyrna, had worked with Wal-Mart since December 2000 to attract the DC to its current site.

Agilent Technologies, a diversified technology company, has expanded its New Castle DC and service parts depot to 100,000 square feet, adding 50 new employees.

The parts depot replaces a similar facility on the West Coast. Agilent has a strong existing business presence in Delaware. Including the company’s research and development, marketing and manufacturing site in Little Falls, manufacturing operation in Newport, and the expanded New Castle DC, the number of employees has grown to about 900.

The poultry industry also plays an important role in Delaware’s economy. Allen Family Foods, a fixture in the state’s poultry industry for decades, expanded its Harbeson facility, creating about 175 new jobs.

The expansion will allow the company to transition from bulk-pack ice products to retail-ready products.

The expansion represents a $20 million capital investment by Allen Family Foods.

“Our Delaware facility was our first choice for this expansion because Allen Family Foods wanted to add this significant number of new jobs to Delaware,” said Charles C. Allen III, president and CEO of the company.

The company will receive a strategic fund grant, which can be applied to construction costs.

Another company decided to expand in Delaware, rather than relocate to neighboring Maryland.

Baltimore Aircoil Co., which specializes in refrigeration, air conditioning, industrial, process and power generation cooling, expanded its plant in Milford by 50,000 square feet and added 125 manufacturing jobs.

The $2.3 million project consolidates all of the company’s East Coast manufacturing operations in Milford.

The company was considering both Milford and Baltimore for the expansion. A competitive incentive package provided by the Delaware Economic Development Office (DEDO) helped win the project.

DEDO offered Baltimore Aircoil a strategic fund grant of $2,500 per job for up to 125 jobs.

DEDO also worked with Baltimore Aircoil in 2000 to facilitate lean manufacturing training, which helped significantly increase plant productivity.