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$10M Biochar plant opens in Waverly

Restoration Bioproducts’ executives and employees gathered with state and local officials Wednesday to celebrate the opening of the company’s Sussex County biochar production facility.

Through a thermal decomposition process known as pyrolysis, the facility heats waste wood to high temperatures in an environment without oxygen to transform the material into syngas — a combustible gas that can be used for fuel —  and biochar, a charcoal-like substance commonly used to improve soil health, as an animal food additive, and as an odor absorber.

It’s no accident that Restoration Bioproducts’ executives chose to build the facility next door to Wood Fuel Developers, a wood pellet manufacturer, in the town of Waverly. Initially, the Restoration Bioproducts’ plant will rely exclusively on wood waste from its neighbor as a front-end fuel for the system. Later, the company will need to source waste wood from other Virginia operations, according to senior partner Andy Raines.

Restoration Bioproducts, which has its headquarters in Lynchburg, has hired a manager and seven employees to work at the Waverly plant, which cost nearly $10 million to build. 

Initially, Restoration Bioproducts leaders estimated they’d be able to build the plant for $5.8 million, but supply chain issues and inflation raised costs. “We were able to scramble around and raise the extra capital through our funding partners, but it did slow us down a bit,” Raines said. 

Early estimates calculated that 18 months would be needed to build the plant. It ended up taking over two years.

To build next to Wood Fuel Developers, Restoration Bioproducts also had to figure out how to design the plant to fit on a site that’s a little over an acre. 

“Normally, we would sort of spread ourselves out on, say, a 7-, 8- [or] maybe even a 10-acre site,” Raines said. Instead, the company decided to build up instead of out. Restoration Bioproducts’ Sussex County plant is 2,500 square feet and stands 60 feet tall, according to Raines.

Currently, the biochar plant is in a commissioning period, “when you turn everything on and see how it runs,” he explained. 

Sometime in 2025, Raines added, the goal is for the facility to operate 24 hours a day, seven days a week.  

​​“There’s an advantage from an efficiency standpoint and from a carbon impact standpoint to leave it at temperature and leave it running,” Raines said. 

As production ramps up, more employees will be hired. “That’ll move us up to about 15 jobs,” Raines said. 

Another goal is for the plant to eventually be fueled by its own syngas. “As we heat the wood, the gasses are pushed out of that wood, and we recirculate that to run the facility,” Raines explained.

Restoration Bioproducts plans to sell biochar produced at the plant for agricultural use. Biochar can improve soil’s fertility, yield and water retention. “We’re big believers in helping to heal the soil,” Raines said. 

Additionally, the biochar plant provided an opportunity to companies looking to offset their emissions. Converting wood to biochar removes carbon dioxide from the atmosphere.

Restoration Bioproducts worked with Carbon Streaming in Canada to sell carbon removal credits that will be generated by the work at the Waverly plant. In September 2023, the carbon credit streaming and royalty company announced it had made a deal with Microsoft to buy credits generated at the Restoration Bioproducts’ plant. 

“They stepped in early and said, ‘Great, great project. We’d love to have those credits,’ and they’ve spoken for those,” Raines said of Microsoft. 

The Waverly facility is expected to deliver up to 10,000 metric tons of carbon dioxide removal credits per year, according to Carbon Streaming. 

 

Hooker CEO talks layoffs, other takeaways from Q2 earnings report

This story is republished with permission from Furniture Today.

Martinsville-based Hooker Furnishings reported $95.1 million in consolidated net sales for the second quarter last week, a 2.8% drop from last year. It marked the second consecutive quarterly loss for the company, at $3.1 million.

Other than the usual sales figures, there were a few notable things brought up in the report and on the subsequent earnings call. One was that the company announced layoffs. CEO Jeremy Hoff didn’t reveal how many layoffs there were at first, but said they would result in annual savings of around $6 million, and that around $3 million in severance expenses will be shown next quarter.

Hoff gave more information this week, saying that there were 44 layoffs in total, representing 4% of the company’s total workforce. Twenty-four of those were in the form of early retirement packages.

“We did a more expensive option of offering early retirement in order to pull forward people who were going to retire anyway,” he told Furniture Today. “It helped us save jobs and I’m proud of how we did that.”

“Workforce reduction decisions like this are rare for our company and were incredibly difficult for us, as we’re acutely aware of the impact it will have on affected employees,” he said on the earnings call.

The layoffs will help expedite the company’s goal of saving $10 million in fixed costs in the second half of this fiscal year. Around $5 million in savings is expected to come by the end of the fiscal year, split between the third and fourth quarters. Other than layoffs, reductions will come from the consolidation of certain operations, including reducing the company’s Savannah, Georgia, warehouse footprint by half, restructuring the BOBO business into the Hooker Branded business, and eliminating BOBO’s retail store and separate warehouse, among other measures.

“Our first objective was to go to every cost center we have throughout the company and try to find any non-personnel, non-strategic cost that we could eliminate,” Hoff said on the earnings call. “Once we were through that exercise, we went to personnel as well. But even there, we focused on not eliminating strategic costs to execute our organic growth strategy that’s in place. I will tell you that when we say we’re confident we will surpass the $10 million, we’re very confident that we will surpass the $10 million.”

The bleeding slowed from last quarter

Despite the $3.1 million loss, the company’s loss in the first quarter was higher at $5.2 million. Sales fell 23.2% last quarter, compared to this quarter’s 2.8% decline. Sales were also $1.5 million higher than last quarter. A negative margin of 3.3% this quarter was an improvement over last quarter’s negative 5.5%.

Home Meridian gains

Hooker’s Home Meridian segment has suffered the past several years. In 2023, the company opted to exit the unprofitable Accentrics Home business, resulting in a $34 million non-cash charge and short-term revenue losses. But now, light seems to be appearing at the end of the tunnel.

Net sales increased by $1.6 million, or 5.6%, from last year in the segment, primarily driven by strong performance in its hospitality division. Last quarter, sales had fallen by $15.5 million. This marked the first year-over-year quarterly sales increase for the segment in two years.

“All metrics are up for HMI,” Hoff told Furniture Today. “For three years now we have seen straight improvement.”

The segment still reported a loss though, but at less than $1 million. The loss was lower than previous losses ($3.4 million last quarter and $3.3 million last year). Gross margin was 19.5%, one of the highest levels seen since the acquisition of the business in 2016, the company said.

“We believe we have reached the point at HMI where we have a significant path to profitability that is sustainable for the foreseeable future as demand normalizes in the home furnishings industry,” said Paul Huckfeldt, chief financial officer, on the earnings call.

When the business does improve, the margin goal for the segment is around 20%.

“And to stress, we haven’t raised prices,” Hoff said. “We’ve simply been able to exit businesses that were dragging that number down.

“Now it’s just a matter of growing sales,” Huckfeldt added.

Pump, valve manufacturer to expand in Henrico

KSB USA/North America, a Henrico County-based pump and industrial valve supplier, will invest $25 million to more than double the square footage of its facility there, a project expected to create 32 jobs, Gov. Glenn Youngkin announced Thursday.

As part of the expansion, KSB will add another loading dock office space and update its shipping and receiving area, as well as employee common areas.

“KSB’s expansion of its Henrico County facility is just the latest example of the resurgence of manufacturing in Virginia,” Youngkin said in a statement. “The Greater Richmond region offers the skilled workforce to support KSB’s continued growth, and we thank them for their investment in Virginia.”

A subsidiary of Germany-based KSB Group, KSB USA/North America has operated in Henrico since 1988. The company manufactures pumps, valves and mixers and provides spare parts and services, which include testing, automation and distribution services at the Henrico facility. Through a network of representatives and distributors, KSB serves varying industries, including energy, chemicals and petrochemicals, amusement parks, food and beverage processing and others.

“With initiatives like service efficiency consulting, regional sales and distribution, and expanded operations, today’s groundbreaking of our Henrico County facility will lead to positioning KSB as a market leader in several strategic target segments in the USA,” Luis Maturana, regional executive officer for KSB North America, said in a statement. “This state-of-the-art site, featuring an expanded warehouse, workshop and sustainable infrastructure, is an investment in our future as a market leader.”

The Virginia Economic Development Partnership worked with Henrico County to secure the project for Virginia. VEDP will support the company’s employee training through the Virginia Jobs Investment Program, a three-year incentive program that provides cash grant reimbursements for associated human resources costs after a company has had new employees on the payroll for at least 90 days.

BWX Technologies names Nuclear Operations Group head

BWX Technologies has tapped Gary D. Camper to be president of BWXT Nuclear Operations Group, according to a Tuesday announcement.

Based in Lynchburg, Camper will lead more than 5,000 employees at five sites across four states, all of whom are manufacturing nuclear reactor components and fuel for U.S. Navy submarines and aircraft carriers.

Camper has worked for four decades at BWXT, according to a company spokesperson. Previously, he served as vice president of contracts and procurement and as chief operating officer of the Nuclear Operations Group.

“Gary’s unparalleled knowledge of our business and customers positions him well to lead us into the future,” Kevin McCoy, president of BWXT Government Operations, stated in a news release.

Camper earned a bachelor’s degree in engineering from Old Dominion University. He sits on the industrial advisory board of the ODU engineering department and is co-chair of the executive committee for the Accelerated Training in Defense Manufacturing program in Danville.

Ranking No. 999 on the 2024 Fortune 1000 list, BWXT has roughly 7,800 employees and 14 major operating sites across the United States, Canada and the United Kingdom.

Virginia 500: The 2024-25 Power List

Who are Virginia’s most powerful and influential leaders in business, government, politics and education this year? Find out in the fifth annual edition of the Virginia 500: The 2024-25 Power List.

Read more about how we assembled the Virginia 500 from our editor

Executives are listed in alphabetical order by industry.

Below you will find links to each of the 21 categories featuring the state’s top leaders this year:

2024 Virginia 500: Manufacturing

DOUG BASSETT

PRESIDENT, VAUGHAN-BASSETT FURNITURE, GALAX

 

 


BRADFORD ‘BRAD’ BEAUCHAMP

PRESIDENT AND CEO, CARPENTER, RICHMOND

 

 


MANMEET S. BHATIA

PRESIDENT AND CEO, TMEIC CORP. AMERICAS, ROANOKE

 

 


HOWARD BROADFOOT

PRESIDENT AND CEO, ELECTRO-MECHANICAL, BRISTOL

 

 


ESTER CODINA

MANAGING DIRECTOR, ALFA LAVAL U.S. SALES; CLUSTER PRESIDENT, NORTH AMERICA, ALFA LAVAL, RICHMOND

 

 


ROB COLLIER

PRESIDENT, CHEMTREAT, GLEN ALLEN

 

 


M. SCOTT CULBRETH

PRESIDENT AND CEO, AMERICAN WOODMARK, WINCHESTER

 

 


BRYAN FAIRBANKS

PRESIDENT AND CEO, TREX CO., WINCHESTER

 

 


KAI FRIEDRICH

MANAGING DIRECTOR, LIEBHERR USA, NEWPORT NEWS

 

 


WILLIAM F. ‘BILLY’ GIFFORD JR.

CEO, ALTRIA GROUP, HENRICO COUNTY

 

 


ANDY GIRVIN

OPERATIONAL EXCELLENCE LEADER AND HOPEWELL PLANT MANAGER, ADVANSIX, HOPEWELL

 

 


THOMAS E. ‘TEDDY’ GOTTWALD

CHAIRMAN AND CEO, NEWMARKET, RICHMOND

 

 


TOM HAYES

PRESIDENT, U.S. DIVISION, SWEDISH MATCH, RICHMOND

 

 


JEREMY R. HOFF

CEO, HOOKER FURNISHINGS, MARTINSVILLE

 

 


FREDRIK HÖGBERG

PRESIDENT, VOLVO PENTA NORTH AMERICA, CHESAPEAKE

 

 


PRABHAT JAIN

CEO, VIRGINIA TRANSFORMER, ROANOKE

 

 


JONATHAN JENKINS

PRESIDENT, CULPEPER WOOD PRESERVERS, CULPEPER

 

 


CHRIS KEFFER

PRESIDENT AND CEO, STIHL INC., VIRGINIA BEACH

 

 


SCOTT KEOGH

PRESIDENT AND CEO, SCOUT MOTORS, TYSONS

 

 


KOEN KNIPPENBERG

SENIOR VICE PRESIDENT, GROUP TRUCK OPERATIONS NORTH AMERICA, VOLVO GROUP, RADFORD

 

 


DAVID LEDESMA

SPRUANCE PLANT MANAGER, DUPONT SPECIALTY PRODUCTS USA, CHESTERFIELD COUNTY

 

 


CHARLES ‘CHARLIE’ LUCK IV

PRESIDENT AND CEO, LUCK COS., MANAKIN-SABOT

 

 


JON MOORE

PRESIDENT AND CEO, PHILIP MORRIS USA, HENRICO COUNTY

 

 


G. DAVID OAKLEY JR.

PRESIDENT AND CEO, STRONGWELL, BRISTOL

 

 


BRIAN D. PALIOTTI

PRESIDENT, AFTON CHEMICAL, RICHMOND

 

 


JOHN PARKINSON

CEO, DRAKE EXTRUSION, RIDGEWAY

 

 


ANTHONY ‘TONY’ ROBINSON

PRESIDENT AND CEO, FRAMATOME INC., LYNCHBURG

 

 


ASHLEY B. SMITH

CHAIRMAN, PRESIDENT AND CEO, SMITH-MIDLAND, MIDLAND

 

 


ROBERT H. SPILMAN JR.

CEO AND CHAIRMAN, BASSETT FURNITURE INDUSTRIES, BASSETT

 

 


JOHN M. STEITZ

PRESIDENT AND CEO, TREDEGAR, CHESTERFIELD COUNTY

 

 


GREGORY H. TREPP

CEO, HAMILTON BEACH BRANDS HOLDING, GLEN ALLEN

 

 


ROB WERGE

PRESIDENT AND CEO, CADENCE, STAUNTON

 

 


NEIL D. WILKIN JR.

CHAIRMAN, PRESIDENT AND CEO, OPTICAL CABLE, ROANOKE

 

 


 

Martinsville industrial property sells for $2.35M

An entity connected to Time Equities, a New York diversified investment, development, asset and property management and alternative energy company, purchased a 99,500-square-foot industrial building in Martinsville currently leased by Atlas Molded Products on Aug. 14 for $2.35 million, according to real estate records and a Cushman & Wakefield | Thalhimer news release. 

Time Equities will use the facility at 445 Industrial Park Drive, which sits on 6.8 acres, as an investment, according to Barry Ward, first vice president at Thalhimer.

Tri-State Foam Products began manufacturing expanded polystyrene for commercial building industries at 445 Industrial Park Dr. in 1984, according to Thalhimer leasing materials. “That product has been made in that building for a very long time,” said Ward. 

In 2012, what was then Atlas EPS, a division of Georgia-based Atlas Roofing Corp., purchased Tri-State Foam Products, according to the company’s website. In 2019, Atlas Roofing Corp. changed the name of its EPS division to Atlas Molded Products.

“It’s a strategic location for Atlas, for sure, and [Time Equities] felt really good about the purchase because of Atlas historical work in the market,” said Ward. 

Ward and Clay Taylor of Cushman & Wakefield | Thalhimer handled negotiations on behalf of the seller, EJS Co., an entity with a Florida address. Price Gutshall of Cushman & Wakefield | Thalhimer represented the purchaser.

South Asian yogurt manufacturer to open Frederick County facility

Desi Fresh Foods, a producer of Indian-style spoonable and drinkable yogurt products, is opening a new manufacturing facility in Frederick County, creating 56 jobs, Gov. Glenn Youngkin announced Friday. 

The New York-based company will “invest a significant amount of money to open a new manufacturing facility,” according to a news release. Desi Fresh Foods and the Virginia Economic Development Partnership did not immediately return a request for comment on what amount company officials expect to spend.

The company is also committed to sourcing “a significant amount” of dairy ingredients from farmers in Virginia, according to the release. 

Patrick Barker, executive director of the Frederick County Economic Development Authority, said the Desi Fresh Foods facility will be located at Stonewall Industrial Park in Winchester.

“After an exhaustive search, we are thrilled to be opening our new facility in Northern Virginia,” Larry LaPorta, CEO of Desi Fresh Foods, said in a statement. “This move will not only allow us to streamline operations and increase production, but give us access to quality, essential ingredients that will help foster the growth of Desi Fresh Foods in the future and set us up for long-term success.” 

When Desi yogurt products were first created, according to the company’s website, if you visited an Indian grocery store in the United States, you would only find American style and brands of yogurt, which prompted the creation of Desi’s dahi, or South Asian yogurt. 

In 2018, Illinois’ Raymundo’s Food Group, a portfolio company of Florida’s AUA Private Equity Partners, purchased Desi Natural Dahi assets from Derle Farms, a New York milk and yogurt distributor. In 2023,  ICV Partners, a Miami- and Atlanta-based private investment firm, purchased Desi Natural and related assets from Raymundo’s Food Group.

Desi Fresh Foods’ product line also includes Desi Natural Paneer and Desi Natural Lassi and Yogurt Drinks.

The Virginia Economic Development Partnership and the Virginia Department of Agriculture and Consumer Services worked with the Frederick County Economic Development Authority to secure the project for Virginia, which competed with Delaware, New Jersey, Pennsylvania and West Virginia.

Youngkin approved a $150,000 grant from the Commonwealth’s Opportunity Fund and a $150,000 grant from the Governor’s Agriculture and Forestry Industries Development Fund to assist Frederick County with this project.  

Support for Desi Fresh Foods’ job creation will also be provided through the Virginia Talent Accelerator Program, a discretionary incentive program that provides free customizable workforce recruiting and training services for eligible businesses locating or expanding in Virginia

Top Five August 2024

The five most popular daily news stories on VirginiaBusiness.com from June 12 to July 12 included news of Republican Gov. Glenn Youngkin’s appointees now holding a majority on the governing boards of Virginia’s state colleges and universities.

1   |   Youngkin peppers university boards with GOP power players

New members included some conservative movers and shakers, such as Marc Short, former chief of staff to Vice President Mike Pence. (June 28)

2   |   $681M subsea cable plant coming to Chesapeake

LS GreenLink USA, the U.S. subsidiary of a South Korean cable manufacturer, is expected to create 338 jobs. (July 9)

3   |   Condair invests $57.2 million on Chesterfield County plant

The Swiss commercial and industrial humidification systems manufacturer, plans to hire 180 workers for a factory slated to open in 2025. (June 18)

4   |   Dominion Energy to buy N.C. offshore wind lease for $160M

Dominion Energy Virginia is purchasing the Kitty Hawk North Wind lease from Connecticut energy company Avangrid. (July 8)

5   |   State delays choosing Shenandoah medical marijuana provider

As 40 applicants vie for the lucrative license to be the sole pharmaceutical cannabis distributor for the Shenandoah Valley, Charlottesville and Fredericksburg, the state Cannabis Control Authority delayed the selection, saying staff need more time to review. (June 26)

Micron expects to expand Manassas facility soon

Bolstered by hundreds of millions of dollars in state and federal funding, semiconductor manufacturing in Northern Virginia soon will be expanding.

In May, Idaho-based Micron Technology applied for federal funding through the 2022 CHIPS and Science Act, which allocated more than $52 billion in subsidies for domestic companies researching and manufacturing semiconductors, to expand its Manassas plant. Micron manufactures dynamic random-access memory (DRAM) chips for automobiles at its Manassas facility.

The expansion will move its existing DRAM manufacturing from Taiwan to Virginia and will nearly double the workforce at the plant, which already employs 1,230 people.

That follows closely with the intended impact of the CHIPS Act. In 2021, the United States manufactured roughly 14% of semiconductors worldwide but consumed 34%, according to a White House statement. This imbalance became evident in 2020, when the pandemic interrupted supply chains, creating shortages of automobiles, household appliances and other electronics.

While Micron’s application is working its way through the process, U.S. Sen. Mark Warner, who co-authored the CHIPS Act, says the federal subsidy will be significant.

“I am optimistic it will be a multi-hundred-million-dollar investment,” Warner says.

That will be on top of a yet-undisclosed amount of funding from the state government, much of which came in a repackaging of a 2018 $70 million incentive bundle. Virginia’s Major Employment Investment Project Review Commission unanimously approved the funding in a closed-door meeting in May, the Richmond Times-Dispatch reported.

Micron plans to invest $3 billion in the expansion by 2030.

“Gov. Youngkin is working with federal partners to ensure Micron’s application is as competitive as possible to bring this project to fruition in Virginia,” says Macaulay Porter, a spokesperson for the governor. “Micron’s proposed expansion marks an unparalleled opportunity for Virginia … to demonstrate leadership in key semiconductor memory technologies.”

The state’s involvement helps Micron’s case with its CHIPS Act application, Warner says, and will prove important in keeping the burgeoning business at the forefront of Virginia’s economy.

“We’ve seen historically that if a company doesn’t continue to invest … technology will pass them by,” Warner says. “So, this CHIPS funding is extremely important.”

The timeline is not clear for when the federal review process will wrap up, nor has Micron designated a timeline for the expansion.