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Building momentum

New industries make Hampton Roads home

//February 27, 2023//

Building momentum

New industries make Hampton Roads home

// February 27, 2023//

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From olive oil to space rockets, 2022 saw a variety of companies seeking to invest — or reinvest — in the Hampton Roads region and Eastern Virginia.

That kind of diversity of industries augurs well for the region’s economy, says Vinod Agarwal, professor of economics at Old Dominion University’s Strome College of Business. “In the past, when I looked at many of the announcements, they’re all related to defense, directly or indirectly,” says Agarwal. “This year, we find lots of variation. Defense is an asset, but we can’t just lean on it alone.”

If there was a theme to 2022, says Suffolk Deputy City Manager Kevin Hughes, it was “industrial development with, like, 30 exclamation marks behind it.”

Norfolk saw steady economic growth in 2022, much of it built on state-level relationships, says the city’s interim director of economic development, Sean Washington. And Chesapeake worked to secure more sites for future business investment, according to Chesapeake Director of Economic Development Steven Wright.

Last year was a year for building momentum, says Hampton Roads Alliance President and CEO Doug Smith. Investments leaned into the region’s target industries, including food and beverage, manufacturing and logistics. But at its core, Hampton Roads is a maritime economy, Smith says, which makes the potential exciting for adjacent and emerging industries like offshore wind.

Chesapeake

Celadon Development Corp., a joint venture from Kamine Development Corp. and Nicollet Industries LLC, aims to bring green technology and 210 jobs to a 100-acre site on the west side of the Elizabeth River, but it could be up to two years before ground is broken on the proposed $267 million, 335,000-square-foot facility, Wright says. Celadon will recycle mixed paper and old corrugated cardboard into a reusable and exportable fiber sheet to supply middle-market paper manufacturers in China.

Perdue Agribusiness’ $59 million renovation and expansion in South Norfolk represents a significant equipment investment, Wright says. Modernized facilities will increase production of high protein soybean meal, soybean oil and hulls, providing a greater market for local soybean farmers and strengthening Virginia agribusiness.

Meanwhile, construction is expected to be finished this year on Wisconsin-based defense contractor Fairbanks Morse Defense’s 45,000-square-foot Chesapeake facility. Specializing in naval power and propulsion systems, the company is relocating its Norfolk operations. The $13 million investment, adding 50 jobs, will build a campus that expands its service capabilities and training opportunities.

And Tokyo-based Nakano Warehouse & Transportation Corp. is expected to open its $14 million East Coast logistics center at Greenbrier North Commerce Park in the third quarter of this year, bringing 25 jobs.

Newport News

Canadian seafood processing company High Liner Foods USA announced in June 2022 it will spend more than $30 million over the next four years modernizing facilities and adding 30 positions to its existing 230 jobs there.

Oakland Industrial Park will see new activity with announcements from Italian olive oil manufacturer Certified Origins USA Inc. investing $25 million and creating 30 jobs; Canadian home goods manufacturer and wholesaler Mercana Furniture and Décor investing $8.5 million and creating 26 jobs; and tech company Mühlbauer Inc. investing $9 million and creating 34 jobs.

Norfolk

During his 2022 State of the City address, Norfolk Mayor Kenny Alexander announced that Fairfax-based defense contractor WR Systems Ltd., which replaces and repairs naval navigation systems, plans an expansion that includes a light assembly lab and adding several hundred positions to its existing 320 jobs in Norfolk.

A $100 million project aiming to turn the Norfolk Southern Corp.-owned site at Lambert’s Point into Fairwinds Landing, a maritime operations and logistics center to support the local offshore wind, defense and transportation industries, got a boost in August 2022 when The Miller Group signed a lease for the 122-acre property.

And the clock on the Pamunkey Indian Tribe’s forthcoming $500 million HeadWaters Resort & Casino reset after regulatory issues resulted in developers shifting their plans for a 45,000-square-foot temporary casino. Instead of opening inside Norfolk’s Harbor Park baseball stadium as originally planned, the temporary casino will be located in the stadium parking lot, on a portion of the site where the permanent casino will be built. The temporary facility could be up and running this year, Washington says. The permanent resort casino is expected to open in 2024, with plans to generate 2,500 permanent jobs.

Also last year in Norfolk, Embody Inc., a medical device company developing novel collagen-based technology for soft tissue injury and repair, announced a $5 million, 10,000-square-foot expansion of its headquarters, along with 92 new hires.

Portsmouth

Speaking of casinos, the $340 million, 250,000-square-foot Rivers Casino Portsmouth opened Jan. 23, with thousands of patrons coming by to get a glimpse of the first permanent casino to open in Virginia.

The casino, which expects to generate $16.3 million in tax revenue annually, had hired more than 1,100 of its planned 1,300 permanent workers as of December 2022. Rivers Casino Portsmouth’s estimated annual payroll will be $62 million.

With casinos being exempt from Virginia’s indoor smoking laws, some patrons initially complained about cigarette smoke, prompting Rivers Casino Portsmouth to adjust its smoking policy and designate half of its 90,000-square-foot main gaming floor as nonsmoking.

The casino’s offerings include restaurants, 1,446 slot machines, 57 game tables and a sportsbook with a 12-foot-by-62-foot-wide viewing wall that can simultaneously display dozens of televised sports events. The casino also has a 25,000-square-foot multipurpose event space.

Suffolk

Home improvement retailer Lowe’s Cos. Inc. expects to open a $75 million coastal distribution center at the 932-acre Virginia Port Logistics Park by the end of this year, creating 100 jobs. The Mooresville, North Carolina-based Fortune 500 company’s facility will receive imported goods through the Port of Virginia to supply regional distribution facilities and help supply the 69 Lowe’s locations across the state.

Last June, Italian coffee company Massimo Zanetti Beverage USA announced it would invest $29.1 million and create 79 jobs as it consolidates and expands operations at its Wilroy Industrial Park roasting facility. The company is relocating its current roasting operations from New Jersey to Suffolk in an expected two-year transition.

Birdsong Peanuts, a more than century- old peanut processing company, is modernizing its existing shelling facility to the tune of $25 million. Updates include refurbishing and automating production lines. The facility is expected to be fully operational by this spring.

And California-based flooring, counter-top, wall tile and hardscaping products supplier M S International Inc. (MSI) plans to invest $61.6 million establishing its East Coast distribution facility, creating 80 jobs. The 548,000-square-foot facility will be at Westport Commerce Park, a 247-acre master-planned industrial park located on Route 58.

Virginia Beach

In August 2022, Virginia Beach-based DroneUp LLC held a news conference in Richmond with Gov. Glenn Youngkin, announcing that the aerial drone company is adding 655 jobs as part of a $27 million expansion. (See related story.)

And a few months later, German chainsaw and outdoor power equipment manufacturer Stihl Inc. announced a $49 million expansion, adding 26,000 square feet to its 60,000-square-foot facility. Stihl, which established its U.S. headquarters in Virginia Beach in 1974, plans to increase its capacity to manufacture chainsaw guide bars by a third, creating 15 jobs.

Eastern Shore

Virginia could be inching closer to having its own Florida-like space coast on the Eastern Shore, according to David Bowles, executive director of the Virginia Institute for Spaceflight & Autonomy at Old Dominion University.

In January, California-based Rocket Lab USA Inc. made its first launch from U.S. soil at Virginia Space’s Mid-Atlantic Regional Spaceport, successfully deploying three satellites into low Earth orbit for Herndon-based satellite analytics company HawkEye 360. The mission is the first of three planned with HawkEye 360 through 2024.

Rocket Lab broke ground in April 2022 on a launch pad and 250,000-square-foot manufacturing facility for Rocket Lab’s Neutron reusable rocket, which will be built adjacent to the NASA Wallops Flight Facility in Accomack County. Rocket Lab is expected to ultimately create 250 jobs at the facility.

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