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Economic Incentives Help Virginia Attract Companies

At a time when many technology industry companies are sending jobs overseas, IBM Corp. is expanding its operations in the Commonwealth of Virginia.



  [ 11/5/2004 ]  By: Tricia Hyland   Related Link...  Print This Article  Reprint/License This Article  

The company will invest $10 million to expand its operations in Fairfax County, creating 1,250 new jobs. The new jobs are part of IBM’s public sector consulting business. Many of the jobs are high-level consulting positions, with an average salary of more than $90,000.

IBM expects to create about 18,800 new jobs in 2004 throughout the world, and that the hires in the United States will be high-value jobs where technological innovation transforms and enlivens business.

A significant portion of the jobs in Virginia will come through IBM’s active college hiring program.

The Virginia Economic Development Partnership (VEDP) worked with the Fairfax County Economic Development Authority to negotiate an incentive package to secure the deal for the Commonwealth.

Fairfax County will receive a $600,000 grant from the Governor’s Opportunity Fund to assist with the project. The Virginia Department of Business Assistance will support the project by providing work force training services.

Virginia is trying to create a business environment where companies in the technology industry can locate and thrive.

It is one of the reasons why IBM decided to stay in the commonwealth.

“Virginia understands that states need to create a fertile environment for innovation that attracts companies and attracts jobs,” said Christopher Caine, vice president of governmental programs for IBM. “Virginia has demonstrated innovative thinking and launched contemporary programs that leverage a first-rate educational system, understand the importance of enhanced homeland security and bolster economic development approaches for the 21st century.”

The state of Virginia has several incentives to help attract and retain companies, including the Governor’s Opportunity Fund, the Virginia Investment Partnership Grant Fund and work force training services administered by the Virginia Department of Business Assistance.

These incentives help put the commonwealth on the short list of many expansion and relocation projects.

Manufacturers in a variety of industries are also siting facilities in Virginia.

MasterBrand Cabinets Inc., the second-largest cabinet manufacturer in North America, will locate a manufacturing facility in Henry County.

The project is the largest economic development announcement in Southside Virginia in more than 30 years.

The new facility is expected to create more than 700 new jobs during the next seven years.

The county is receiving a $1.5 million grant from the Governor’s Opportunity Fund to support the county with the project. The county will match the $1.5 million grant with public and private sector funds.

Henry County also obtained $750,000 in Tobacco Region Opportunity Funds from the Virginia Tobacco Indemnification and Community Revitalization Commission.

MasterBrand Cabinets, a subsidiary of Lincolnshire Ill.,-based Fortune Brands, is also eligible for tax credits based on its location in an enterprise zone.

Glass products manufacturer Guardian Industries Corp. will expand its operations in Galax through a $2.5 million investment in building improvements and equipment.

The Auburn Hills, Mich.,-based company will add a product line called laminated glass, which is mainly used in window applications.

The expansion will create 54 new jobs during the next two years.

VEDP, Virginia’s aCorridor and the city of Galax assisted Guardian with its decision.

The Virginia Department of Business Assistance will provide work force training services.

Galax will receive a $75,000 grant from the Governor’s Opportunity Fund to support the expansion, and the city also obtained $75,000 in Tobacco Region Opportunity Funds.

 



 
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