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Tag: manufacturing

Speyside Bourbon Cooperage to create 40 jobs in Pittsylvania

Speyside Bourbon Cooperage will invest $16.85 million to build a new stave mill in Pittsylvania County’s Brosville Industrial Park, Gov. Glenn Youngkin announced last week. 

A U.S. subsidiary of a French company, Speyside Bourbon Cooperage produces staves, or strips of wood, from American White Oak, which are used to make the company’s bourbon barrels.

Pittsylvania County’s stave mill will supply Speyside’s Smyth County cooperage (a facility where workers make barrels). The stave mill is expected to create 40 new jobs and will source 40% of its timber from Virginia landowners, according to the news release. 

Speyside Bourbon Cooperage is a division of Speyside Cooperage, which was founded in 1947 in Scotland. In 2008, the Tonnellerie François Frères Group bought Speyside Cooperage. In the U.S., Speyside has cooperage locations in Shepherdsville, Kentucky; Jackson, Ohio; and Smyth County, Virginia. The Virginia facility opened in 2020.  Additionally, Speyside Bourbon Cooperage opened a stave mill in Bath County in Millboro in 2018 and invested $114,000 in an expansion the following year. In 2020, Speyside opened another stave mill in Glade Spring in Washington County. 

“We never thought we would have four sites in the state, but once we started working here, it became clear that Virginia is the perfect partner for us.” Darren Whitmer, president and general manager of Speyside Bourbon Cooperage, stated in the news release. 

The Virginia Department of Agriculture and Consumer Services worked with Pittsylvania County, the Pittsylvania County Industrial Development Authority and the Southern Virginia Regional Alliance to win the project. 

Gov. Youngkin approved a $250,000 grant from the Governor’s Agriculture and Forestry Industries Development Fund, which Pittsylvania County will match using local funds, according to the news release.  

“The manufacture of high-quality oak staves by Speyside Bourbon Cooperage leverages one of Pittsylvania County’s historic economic drivers – forestry and agriculture – and allows us to operationalize our renewable white oak resource at a much higher level. Also, the construction of this facility will complete the development of the Brosville Industrial Park, providing a clear indication that economic growth remains strong in this area,” Dr. Joey Faucette, chair of the county’s Industrial Development Authority, stated in the news release.

Reports: Novo Nordisk in talks to buy Petersburg Ampac plant

Two South Korean media outlets have reported that the South Korean owner of Ampac Fine Chemicals may sell its manufacturing plant in Petersburg to Novo Nordisk, the Danish global pharmaceutical company.

Sources told The Korea Economic Daily that the Seoul-based manufacturing conglomerate SK Group, which purchased Ampac in 2018 for a reported $576 million, is in “final-stage talks” to sell the 600,000-square-foot plant for $216 million to Novo Nordisk, with the deal possibly completed by the end of August, according to a June 25 article.

The Korea Herald reported June 26 that the potential sale could be part of a push on the Danish drugmaker’s part to increase production of its popular weight-loss drugs Wegovy and Ozempic. In late June, Novo Nordisk announced plans to invest $4.1 billion to build a second manufacturing facility in Clayton, North Carolina, adding 1,000 jobs.

A U.S. spokesperson for Novo Nordisk said Wednesday that the company has not yet announced any plans in Petersburg.

“SK Pharmteco does not discuss potential business transactions, whether rumored or confirmed,” Audrey Greenberg, the company’s chief marketing and communications officer, said in a statement Thursday. “However, we are constantly exploring strategic opportunities to strengthen our leading position as a CDMO. Our commitment lies in expanding our capabilities in small molecule APIs, cell and gene therapies, and analytical services. By doing so, we aim to offer our clients a broader range of solutions and, ultimately, improve patients’ lives worldwide.”

SK Pharmteco is SK Group’s contract drug-making subsidiary, with contract development and manufacturing organization (CDMO) plants in California, Texas and Virginia. In 2018, SK Holdings purchased California-based Ampac Fine Chemicals, then owned by H.I.G. Capital, a private equity firm. H.I.G. had owned the company since 2014 and was responsible for acquiring the Petersburg plant reportedly under consideration for sale to Novo Nordisk. In 2019, SK Group consolidated Ampac Fine Chemicals with its biotech divisions in South Korea and Ireland to form SK Pharmteco.

Ampac, founded in 1945, arrived in Petersburg in 2019, restarting a former pharmaceutical plant that had been closed for five years. Between 2020 and 2022, Ampac doubled production capacity and tripled its employee base to 150 workers. Currently, the company has three production buildings and 16 manufacturing lines making active pharmaceutical ingredients in Petersburg.

Ampac’s presence was a draw for other pharmaceutical companies — notably Phlow and Civica Rx — now with facilities in Petersburg. Civica, a Utah-based nonprofit generic drugmaker, is set to begin producing medications for general and local anesthesia, pain management and antibacterial therapies created with ingredients produced by Ampac and Phlow by late 2024. The three companies, along with Virginia Commonwealth University’s Medicines for All Institute, are partners on a federally funded $354 million contract to reduce U.S. dependence on foreign supply chains and promote domestic medication production. The contract, awarded in May 2020, finished its initial four-year phase in May, and is now in the first of six potential one-year renewal options.

In 2022, the 16-partner Alliance for Building Better Medicine, which includes the three pharma companies, won a $52.9 million Build Back Better Regional Challenge grant from the U.S. Commerce Department’s Economic Development Administration to address the national need for domestically produced drugs. In October 2023, the EDA designated the Richmond-Petersburg metropolitan statistical area an Advanced Pharmaceutical Manufacturing Tech Hub, qualifying it to apply for additional funding, but the region missed out on $502 million in federal grants announced in July.

$681M subsea cable plant coming to Chesapeake

A U.S. subsidiary of a South Korean cable manufacturer plans to build a $681 million subsea cable manufacturing plant in Chesapeake, the company announced Tuesday. The project is expected to create 338 jobs.

LS GreenLink USA’s Chesapeake subsea cable factory will be built at the Deep Water Terminal Site in Chesapeake, a 96-acre property located near the Port of Virginia and adjacent to the southern branch of the Elizabeth River. The plant will be approximately 750,000 square feet and will produce high-voltage, direct-current submarine cables used for offshore wind farms — the first such facility in the United States.

“LS GreenLink’s investment in Virginia will showcase the commonwealth as a leader in offshore wind industry manufacturing,” Youngkin said in a statement. “LS GreenLink has recognized that Virginia has the skilled talent, world-class logistics location and business environment that will allow it to serve its growing global customers for submarine power cables.”

A subsidiary of Anyang, South Korea-based LS Cable & System, LS GreenLink USA was awarded $99 million in advanced energy project tax credits by the U.S. Department of Energy in April, and Gov. Glenn Youngkin approved a $13.2 million grant from the Commonwealth’s Opportunity Fund to assist the City of Chesapeake with the project.

To secure the project, the Virginia Economic Development Partnership worked with Chesapeake, the Hampton Roads Alliance and the Virginia Maritime Association. In addition to the state’s $13.2 million grant and federal funding, LS GreenLink is eligible to receive state benefits from the Port of Virginia Economic and Infrastructure Development Zone grant program, and the Virginia Talent Accelerator Program will support job training for the company at no charge.

“This state-of-the-art facility represents our commitment to pushing the boundaries of technology and engineering,” said Bon-Kyu Koo, president and CEO of LS Cable & System. “This facility will not only enhance our capability to meet the growing global demands for submarine power cables, but will also position us at the forefront of the industry.”

Subsea telecommunications cables have become a burgeoning industry in Hampton Roads. Virginia Beach is one of a few East Coast landing spots for subsea high-speed internet transmission cables, with a data center and cable landing station where subsea telecommunications cables MAREA, BRUSA and DUNANT connect Virginia to points in Europe and South America.

The announcement comes as Dominion Energy has begun installing monopiles — wind turbine foundation posts — 27 miles off the coast of Virginia Beach to construct its $9.8 billion, 176-turbine Coastal Virginia Offshore Wind (CVOW) project, which is anticipated to be finished by the end of 2026. On Monday, Dominion announced its plans to buy a 40,000-acre lease off North Carolina’s Outer Banks for $160 million from Avangrid, a sustainable energy company.

Residents of Sandbridge, a beach community south of Virginia Beach, have opposed Avangrid’s plan to bring transmission cables ashore there, and the process has been delayed.

Simmons Equipment announces $8.5M expansion into Russell County

Simmons Equipment, a specialty mining equipment manufacturer based in Tazewell County, plans to expand into neighboring Russell County, Gov. Glenn Youngkin announced Monday.

The company expects to invest $8.5 million into converting two buildings in Lebanon, an investment set to create 75 jobs, the governor’s office said. Founded in Tazewell in 2005, Simmons produces soft rock mining equipment, including scoops, haulers and longwall support vehicles. According to the news release, the expansion will allow the company to grow its product line. The Virginia Economic Development Partnership worked with Russell County and the Virginia Coalfield Economic Development Authority to secure the project, which Virginia competed with Tennessee and West Virginia to land.

Simmons plans to also retain its Tazewell facilities, the governor’s announcement said. Youngkin approved a $270,000 grant from the Commonwealth’s Opportunity Fund for Russell County, and VCEDA approved a $187,500 to the company for workforce development and a $500,000 loan to the county’s industrial development authority for facility improvements. Simmons is also eligible to receive incentives from the Major Business Facility Job Tax Credit for full-time jobs created.

The new locations in Lebanon will be at 219 Joe Gillespie Drive, the former Polycap facility, and 200 Haber Drive, and the company plans to move in phases over the next two quarters of the year, a spokesman said. Simmons currently employs 107 people in Tazewell.

“We are thrilled to be expanding our operations into Russell County,” President and CEO Matt Simmons said in a statement. “Our business has been growing into new markets worldwide, and this additional manufacturing capacity will allow us to aggressively pursue those opportunities. After an extensive search, we are excited to continue our growth here in Southwest Virginia. We were highly impressed with the efforts of the Russell County Industrial Development Authority, the Virginia Coalfield Economic Development Authority and the Commonwealth of Virginia to support us in this exciting endeavor. We look forward to being part of the growing business community in Russell County.”

Hitachi Energy plans $26M expansion in Halifax County

Hitachi Energy plans to invest $26 million into expanding its South Boston facility, that manufactures transformers, a move expected to create about 100 jobs, according to a news release the company shared with a few stakeholders in the Southern Virginia region in June. 

In April, Hitachi announced plans to invest over $1.5 billion to increase global transformer production by 2027. The investment will span Europe, the Americas and Asia, and will include around $180 million to build a transformer factory in Finland, “a key location for clean technology development for renewables and industrial electrification,” according to a news release.

Hitachi’s expansion at the South Boston facility will expand capacity for producing distribution transformers, according to the release, which was dated June 18.

“This expansion underscores our commitment to serving our customers’ evolving needs while also strengthening the local economy,” Steve McKinney, managing director of Hitachi’s transformer business in North America, stated in the announcement.

The $26 million investment will pay for new equipment, upgrades and other production-line improvements at the South Boston facility, which currently has 585 employees, according to Kurt Steinert, Hitachi’s head of external communications in North America.

In 2022, Hitachi announced a $37 million investment to expand its South Boston operation, a project expected to create 165 jobs.

With that expansion, Hitachi planned to add 26,000 square feet to the South Boston facility’s power transformer factory, which is 90,000 square feet.

That work is “still underway,” Steinert explained in a statement to Virginia Business, “but we are still in line with our plan in terms of the expansion in square footage and jobs.”

The South Boston facility’s distribution transformer factory is 517,000 square feet.

Distribution transformers provide stepped-down voltages to consumers. Typically, power transformers are used to transmit high voltages and are used in generating stations.

The new positions created at the South Boston facility, which has been in operation since 1968, will be in skilled manufacturing, engineering and administration.

Hitachi did not receive “specific incentives” from the state government to expand in South Boston, according to Steinert.

When asked why Hitachi decided to limit spreading the news to a few stakeholders in the immediate community, Steinert wrote, “it’s mainly a question of timing, and whether we might couple this with other news related to our manufacturing footprint in North America in future.”

A spokesperson for the Virginia Economic Development Partnership said the authority did not assist with Hitachi’s June 18 expansion announcement. She did not immediately respond to a request for comment about the expansion.

Requests for comment from Kristy Johnson, executive director of the Industrial Development Authority of Halifax County, and Scott Simpson, county administrator for Halifax County, were not immediately returned Tuesday.

With headquarters in Switzerland, Hitachi Energy employs more than 40,000 workers in 90 countries. 

 

 

 

 

MARGARET SHAIA 

Margaret Shaia trained as an accountant, but says she had zero interest in being “a bean counter who sits in an office all day. I wanted to know what the numbers were saying.”  

That curiosity led her to a series of jobs at Virginia manufacturing companies, where she became involved not just in financial oversight but got onto the floor to see how to better manage and improve operations. In her 16-year tenure at Richmond’s AMF Bakery Systems, for example, Shaia helped double revenues and transform the company into a global leader in industrial baking equipment. 

Since 2019, Shaia has been CEO and co-owner of ASC, where, she says, she has put to use “everything I’ve done, times 500.”

Under her leadership, ASC, which builds enclosures for power generation equipment for facilities such as data centers, has undergone exponential growth. Revenues have expanded sixfold, she says, and ASC has added 235,000 square feet of manufacturing space. 

Shaia is proud ASC has been able to provide a career track for its employees, many of whom
are immigrants from the Philippines. These workers have been able to develop skills that lead
to higher wages, and that increased earning power has allowed many of them to buy houses and bring their families to this country. 

“I work long hours,” Shaia says, “but, end of the day, I am helping the community by giving people the opportunity to improve their lives.” 

RELATED STORY: 2024 Virginia Women in Leadership Awards

Liebherr to expand Newport News-Hampton facility

Newport News-based Liebherr Mining Equipment will invest $72.3 million to expand a plant at the border of Newport News and Hampton, creating an estimated 175 jobs, Gov. Glenn Youngkin announced Tuesday.

“We thank Liebherr, an international leader in mining equipment manufacturing, for its commitment to the commonwealth of Virginia,” Youngkin said in a statement. “Liebherr has recognized that Virginia is strategically located to serve as its global production headquarters for mining trucks and service customers within the United States and across the world.”

Founded in 1949, Liebherr Group is a family-owned technology and equipment producer. Founded in 1995, Liebherr Mining Equipment Newport News Co. has more than 550 employees. It manufactures industrial-scale mining trucks used to transport material at open-cast mining operations. The trucks are partly assembled, tested and certified at the plant, and complete assembly occurs at the mine.

“We are excited to expand our mining equipment facility in Newport News … to better support Liebherr Mining customers around the world,” Cort Reiser, managing director of Liebherr Mining Equipment Newport News Co., said in a statement. “We’re thankful for the partnerships with the cities of Hampton and Newport News and the Commonwealth of Virginia that have greatly enriched our operations and enabled Liebherr to bring 175 new jobs and investment to the region.”

The Virginia Economic Development Partnership worked with Newport News and Hampton to secure the project. Youngkin approved a $1.5 million grant from the Commonwealth’s Opportunity Fund to assist the cities. Liebherr Mining Equipment is eligible to receive benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant program. 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.

Condair invests $57.2M on new Chesterfield County plant

Switzerland-based Condair Group, a manufacturer of commercial and industrial humidification systems, will invest $57.2 million to establish a new production facility in Chesterfield County that is expected to create 180 jobs, Gov. Glenn Youngkin announced Tuesday. 

The company will convert a pre-existing warehouse facility on 1410 Willis Road into a manufacturing facility, according to Horace Wynn, chief operating officer for Condair’s North American operations. The 400,000-square-foot plant is expected to open in early 2025, the governor’s news release said. 

Initially, workers at the Chesterfield County facility will focus on manufacturing products to to assist with large-scale industrial cooling needs of the data center industry, Wynn wrote in a statement to Virginia Business. 

“However, as we build out the facility, other Condair products may be manufactured and assembled at this location as well,” he stated.

“The establishment of the Richmond site will not only bolster our production capabilities but also facilitate closer engagement with our clients, particularly in the data center sector,” Oliver Zimmermann, CEO of Condair, said in a statement. “Together with our existing sites in Racine, Wisconsin, and Ottawa, Canada, we are fortifying the Condair network to better serve our clientele across the continent.”

Condair found “the strength of the Richmond available workforce” appealing “along with the proximity to multiple data center locations for both current and future partnerships,” according to Wynn.  

Condair will find international neighbors in the Richmond region. In 2023, Netherlands-based ISO Group, which automates labor-intensive tasks in the horticultural industry, announced it would establish its first U.S. assembly and distribution facility in Chesterfield County. Also last year, the Weidmüller Group, which is based in Germany, unveiled plans for a $16.4 million expansion in Chesterfield County. The Lego Group, based in Denmark, expects to begin production at its $1 billion Chesterfield manufacturing facility in 2027. 

“When an international brand like Condair makes the decision to locate in Virginia the positive ripple-effects of economic investment, job creation and cargo growth are felt throughout the Commonwealth,” Stephen A. Edwards, CEO and executive director of the Virginia Port Authority, stated in the release. “The Port of Virginia will be among the beneficiaries of Condair’s location in Chesterfield County, which is not far from Richmond Marine Terminal.”

Founded in Switzerland in 1948, Condair has production sites in Europe, North America and China, as well as sales and service organizations in 23 countries. Its major customers include Amazon Web Services and Microsoft. 

Condair plans to transfer its current production operations from Center, Texas, to Richmond by 2026, according to a news release distributed by the company. The Virginia Economic Development Partnership worked with Chesterfield County and the Greater Richmond Partnership to secure the project for the commonwealth. Virginia competed against South Carolina for the project.

Youngkin approved a $700,000 grant from the Commonwealth’s Opportunity Fund to assist Chesterfield County with the project. Additionally, Condair is eligible to receive state benefits from the Major Business Facility Job Tax Credit for new, full-time jobs created, as well as benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program.  

The Virginia Talent Accelerator Program, a program created by the VEDP that provides recruitment and training services, will support Condair’s job creation.

Carry-On Trailer expands Westmoreland operation

Georgia-based Carry-On Trailer, a leading manufacturer of steel and utility trailers, will invest $9.2 million to increase capacity at its facility in Westmoreland County, Gov. Glenn Youngkin announced Tuesday. The project is expected to create 60 jobs.

To meet increasing customer demand in the northeast, Carry-On Trailer plans to upgrade to a powder coat paint system at the Montross facility. Previously, the company used “a liquid process,” according to Braden Edwards, general manager at Carry-On Trailer.

“It’s been a great system for us,” he said. “But the powder coat process is just an upgraded process [that offers a] better quality of paint to extend the life of the trailer.”

Carry-On Trailer offers utility, cargo, aluminum, dump, equipment and specialty trailers along with a replacement parts program.

Of the company’s seven manufacturing facilities, three have moved or are moving to the powder coat paint system. Edwards expect the other four will adopt the system in coming years.

In 2018, Carry-On Trailer invested $1.6 million to expand its Montross facility, which was built in 2004. That project created 42 jobs.

“Carry-On Trailer is one of the Northern Neck’s largest and valuable private employers and its economic impact is regional and statewide,” Jerry W. Davis, executive director of the Northern Neck Planning District Commission, said in a statement.

In addition to the Montross facility, Carry-On Trailer has a manufacturing operation about thirty minutes away in Callao, which was built in the late 1990s, according to Edwards. Together, the two operations employ about 175 employees.

Founded in Hague, not far from Montross, in 1996, Carry-On Trailer moved its headquarters to Lavonia, Georgia around 2006, Edwards said

The Virginia Economic Development Partnership worked with Westmoreland County and the Northern Neck Planning District Commission to secure the project, which Georgia and Pennsylvania also competed to win.

Carry-On Trailer will receive support with job creation through the Virginia Jobs Investment Program, a state-funded program which provides services and funding to support employee recruitment and training. The company is also eligible to receive benefits from the Port of Virginia Economic and Infrastructure Grant Program.

In 2018, Rappahannock Community College opened the Westmoreland Workforce Training Center which offers welding training.

“It’s right across the street from our plant,” Edwards says. “It’s a nice marriage between our facility and their facility. Their trainees can come over and see what we have.”

Fed’s Fifth District shows modest economic growth

The economy in the Federal Reserve’s Fifth District (a multistate region including Virginia, North Carolina, South Carolina, West Virginia and Maryland) grew modestly in recent weeks, according to the latest edition of the Federal Reserve’s Beige Book, released May 29.

Published eight times per year, the Beige Book is based on anecdotal information about economic conditions gathered from the nation’s 12 Federal Reserve Banks. It is compiled from reports by bank and branch directors, as well as information gathered from business contacts, economists, market experts and other sources. The May release is an update from the Fed’s April 17 report.

Here’s what the most recent Beige Book edition revealed about the direction the economy is taking:

Employment in the Fifth District grew moderately over the last reporting period. The availability of labor varied between industries. One seasonal outdoor recreational company reported it hadn’t been able to recruit some candidates because of the area’s lack of affordable housing. Many respondents listed a need for “quality” workers, and companies continued to increase wages and offer bonuses as part of their recruitment and retention efforts.

Price growth increased slightly this period, although the year-over-year rate remained moderate, according to the Fed. The growth in prices received by service providers remained high at around 4%, while manufacturers had a roughly 2.5% increase in prices received. Input and labor costs continued to rise for businesses in both sectors. In some cases, customers pushed back on additional price increases, so input costs increased faster than prices businesses received. Companies expected growth in prices received to moderate over the next six months.

Fifth District manufacturing activity was unchanged in recent weeks. Several firms cited increased pressure on margins because of global competition, and future market uncertainty has made several businesses uneasy. One textile company’s clients said they were not making long-term strategic decisions, which makes it difficult for the company to plan for the rest of the year.

Virginia and South Carolina ports reported to the Fed moderate to strong — up to double-digit — increases in imports, beyond the volume they picked up from diverted Baltimore cargo. Exports of commodities like textiles and apparel rose, while exports of agricultural goods flattened or decreased. Freight rates increased, and ocean carriers continued to add surcharges and fees for distance and hazards to compensate.

Inland ports had strong demand for rail transport, continuing the record levels seen this year. Auto, auto part, and agricultural equipment and tools manufacturers have preferred rail because of its lower carbon emissions and supply chain reliability, according to the Fed. Trucking volume in the Fifth District was up slightly, but spot rates continued to “spiral downward” because of oversaturation.

Consumer spending on retail and travel increased moderately this reporting period. Although sales were up, some retailers reported tighter profit margins caused by rising input costs that they weren’t able to completely pass along to customers. New vehicle sales declined slightly.

Restaurant and leisure travel picked up, largely from customers with discretionary income, while low- to moderate-income consumers pulled back on spending or trading down in the goods they bought.

Fifth District residential real estate activity picked up modestly in the past few weeks. Total closed sales increased. The total supply of homes for sale increased as more came onto the market, but supply remained below pre-pandemic levels. Average sales prices rose modestly, and homes sold at a slightly faster rate — particularly low- and mid-priced homes. New construction grew in areas with population growth.

Commercial real estate activity increased slightly. Retail leasing picked up; vacancy rates stayed low, and new inventory was absorbed quickly. Leasing for Class A office buildings increased slightly, but leasing for Class B and C properties declined. Leasing and absorption in new multifamily buildings were strong. Construction of existing projects continued, but developers said few new projects were greenlit because high interest rates and the continued high prices of material and labor made it difficult for deals to be financially viable.

Fifth District financial institutions continued to see a “modest softening” of loan demand, mainly in their commercial real estate and business loan portfolios. Most cited higher interest rates as the reason for softening demand. Deposit levels declined modestly, and competition continued for available balances. Loan delinquency rates remained stable.

Nonfinancial service providers reported that demand for their services and their revenues continued to be stable. Firms noted higher interest rates as a limiting factor for new capital expenditures, and some noted inflation and election-year politics as limiting factors for business expansion and for confidence in the economy. Wages and workforce issues continued to be less of a challenge and to modestly stabilize.