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Tag: Scott County

Manufacturer plans $5M expansion in Scott County

VFP, a manufacturer of enclosures used to protect critical infrastructure, will invest $5 million to expand its Scott County facility, a move expected to create 50 jobs, Gov. Glenn Youngkin announced Monday. 

The expansion will allow VFP to respond to a growing data center market. 

“Virginia’s robust data center industry relies on manufacturers like VFP, and those synergies have created a robust ecosystem of partners and suppliers,” Youngkin stated in a news release.  

Founded in 1965 in Roanoke County, VFP began manufacturing products in Scott County in 1997. It currently employs 350 workers at its campus in Duffield, according to Scott File, its president and CEO. 

A man wearing a blue blazer.
Scott File is president and CEO of VFP. Photo courtesy VFP

Workers at the employee-owned company, manufacture a variety of products using materials ranging from heavyweight concrete to lightweight flexible metal. VFP shelters are used primarily by utility providers, municipalities, data centers and broadband providers. The products are used on all seven continents. 

 “Since relocating to Scott County over 25 years ago, VFP has experienced continued growth across all market sectors,” Scott File, president and CEO of VFP, stated in the release. “VFP attributes this success to the loyalty and talent of our employee-owners who share the common goal of supplying industry-leading, quality products and services to our valued customers.”

In 2008, VFP participated in the Virginia Leaders in Export Trade Program, an international business acceleration program offered by the Virginia Economic Development Partnership. It’s also part of the VEDP’s Supply Chain Optimization Program, which helps companies evaluate their supply chain management and import processes. 

The VEDP worked with Scott County to secure the project for Virginia, which competed with Louisiana and Missouri. 

Youngkin approved a $75,000 grant from the Commonwealth’s Opportunity Fund to assist Scott County with this project. Support for VFP job creation will be provided through the Virginia Talent Accelerator Program. The program, created by VEDP in collaboration with higher education partners, offers recruitment and training services at no cost to the company.

SWVA projects recommended for $10.6M in federal funds

Eight Southwest Virginia economic development projects totaling $10.6 million have been recommended for federal funding under Virginia’s Abandoned Mine Land Economic Revitalization grant program, Gov. Glenn Youngkin and U.S. Rep. Morgan Griffith announced Friday.

Referred to the federal Office of Surface Mining and Reclamation Enforcement for approval, the projects include $2.347 million to develop a 23.5 acre build-ready pad at the Chip Mill Industrial Site in Dickenson County; $2 million to leverage previously mined properties to support the Energy DELTA Lab in Wise County; and another $2 million to create campsites and connector trails at Devil’s Bathtub in Wise and Scott counties.

Under the Biden administration’s Bipartisan Infrastructure Law, Virginia already expects to receive $22.7 million in federal funds to reclaim abandoned mine lands during the next 15 years. The Abandoned Mine Land Economic Revitalization, or AMLER, grant program is separate from that in that it seeks to advance economic development opportunities from the development and repurposing of abandoned mine lands. Virginia was one of nine states and tribal programs picked by Congress to receive $10 million in fiscal 2020 under the program. Will Clear, deputy director of the state’s Department of Energy, told Virginia Business that the commonwealth is slated to receive $13 million in federal funds for fiscal 2023.

Other projects recommended for funding include:

  • $525,000 to expand manufacturing at medical supplier Bird Dog Distributors, in Dickenson County;
  • $750,000 to create a sporting complex on abandoned mine land in Dickenson County, including archery, rifle/pistol and shotgun shooting ranges;
  • $1.6 million to create a pad-ready housing development site in Wise County;
  • $500,000 for the expansion of Maine Five Distributors LLC’s sewing operations in Buchanan County; and
  • $925,000 for workforce center upgrades and program expansion of Mountain Empire Community College’s Center for Workforce and Innovation of Appalachia in Wise County.

“These projects selected support our goals of immediate job creation and the development of new business-ready sites that will be the fuel that drives new business investment in these Southwest Virginia communities,” Youngkin said in a statement. “There is great innovation in these proposals that will make Virginia the best place to live, work and raise a family.”

Clear told Virginia Business Friday that he expects a response from the federal mine office on the funding in the first or second quarters of 2023.

SWVA initiative seeks to attract remote workers

Project Fuse, a regional cooperative initiative to make Southwest Virginia the location of choice for remote employment, launched Friday with the release of a playbook to attract businesses.

“The global business community seeks options for both attracting the employees they want and managing their operating costs,” Will Payne, managing partner of Coalfield Strategies LLC and campaign lead for InvestSWVA, said in a statement. “Companies need rural community partners who can help them with teleworking and remote working, as Project Fuse explains.”

The Lonesome Pine Regional Industrial Facilities Authority (LPRIF) commissioned the playbook — developed over the last four months — with support from the state’s GO Virginia economic development initiative and the U.S. Economic Development Administration. InvestSWVA brought project members together.

“The global pandemic accelerated more than a workplace shift and the remote work opportunity,” Duane Miller, executive director of the LENOWISCO Planning District Commission, chief sponsor of the project, said in a statement. “It has opened a new door into diversifying our economy in Virginia’s Southwest. Given the quality of life we can offer and the support our economic development teams can provide to companies, we commissioned a look into how to match our assets to the opportunity.”

The report includes case studies like Rochester, New York-based medical records company eHealth Technologies Inc.’s establishment of a hub location in Duffield in 2020. Company management has reported lower turnover and higher levels of satisfaction among its area employees in the area. The partnership between Mountain Empire Community College and eHealth Technologies that provides the company tailored training processes also contributed to the location’s success, according to the report.

The study identified four opportunities for LPRIFA localities, which include the city of Norton and the counties of Dickenson, Lee, Scott and Wise.

  1. Employers are offering support for living remotely and using coworking spaces.
  2. Companies’ real estate needs have changed.
  3. Customer service via teleworkers is growing in sophistication and pay scales.
  4. Companies are looking for partnerships with communities to find and retain quality employees as they compete in a tight labor market.

To take advantage of these opportunities, localities need to meet several conditions: ubiquitous internet connectivity and reliable transportation networks; downtown office buildings with meeting space; affordable, diverse housing options in walkable areas; and an established network with academic partners.

As part of meeting those conditions, localities need to develop their downtowns and deliver universal internet connectivity ahead of schedule, the playbook states.

InvestSWVA is a public-private business research, attraction and marketing campaign launched under the umbrella of the Virginia Tobacco Revitalization Commission, which was created by the General Assembly in 1999 to promote economic growth and development in formerly tobacco-dependent communities.

Roanoke biz to create 30 jobs in Scott County

Roanoke-based VFP Inc. will invest $7.2 million to expand in Scott County, creating 30 jobs, Gov. Ralph Northam announced Monday.

The expansion will allow VFP to produce larger concrete shelters.

“Great workers live in Southwest Virginia, and companies like VFP recognize that,” Northam said in a statement. “Virginia is advancing manufacturing across the commonwealth, and we thank VFP for expanding in Scott County.”

Founded in 1965, VFP develops customized enclosures to protect critical infrastructure for telecommunications, public safety radio, data centers and utility projects. Products include concrete and metal shelters, secure modular data centers, utility control houses and Fiber To The Home huts. Its customers include utilities, municipalities, broadband providers and Fortune 500 companies.

“Since relocating our manufacturing facilities to Scott County in the 1990s, we have continued to grow,” VFP President Scott File said in a statement. “This is largely due to the loyalty and support from our valued employees. VFP is grateful to be located in Scott County with an available workforce and local talent that can meet our vast manufacturing needs. We owe special thanks for the continued support and assistance received over the years from local, regional and state agencies.”

The Virginia Economic Development Partnership worked with Scott County and the Virginia Coalfield Economic Development Authority, for which Virginia competed with Missouri and Oklahoma. Northam approved a $100,000 grant from the Commonwealth’s Opportunity Fund. VFP is eligible to receive state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development. The VEDP’s Virginia Jobs Investment program will provide funding to support employee recruitment and training activities. The Virginia Coalfield Economic Development Authority approved a $100,000 grant to the Scott County Economic Development Authority to assist VFP with workforce development and training.

Tempur Sealy to invest $16.7M in Scott County manufacturing facility

Bedding product designer, manufacturer and distributor Tempur Sealy International Inc. will invest $16.7 million to expand its Scott County operation, creating 25 jobs, Gov. Ralph Northam announced Thursday.

“Southwest Virginia has been an ideal base of operations for Tempur Sealy for nearly 20 years because of the region’s proximity to major interstates and access to the company’s customer base,” Northam said in a statement. “As one of the largest employers in the area, this expansion will allow the company to increase production capacity to ensure the future viability of its Scott County plant.”

Headquartered in Lexington, Kentucky, Tempur Sealy operates two manufacturing facilities in Albuquerque, New Mexico, and Scott County employing more than 5,000 people in the U.S. Virginia competed with New Mexico for the project. The company employs 300 people at its Duffield facility, which opened in 2001.

“As our manufacturing sector continues to thrive, Virginia’s commitment to job training and providing a skilled workforce pipeline ensures our valued businesses have the talent they need to grow,” Secretary of Commerce and Trade Brian Ball said in a statement. The expansion is expected to be completed by 2022.

The Virginia Economic Development Partnership worked with Scott County and the Virginia Coalfield Economic Development Authority (VCEDA) to secure the project for Virginia. Northam approved a $110,000 Commonwealth’s Opportunity Fund grant to help Scott County with the project. The company is eligible for Virginia Enterprise Zone Program benefits. The Virginia Jobs Investment Program will provide training activity support and funding.

 

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SW Va. aims to attract data centers via regional tax pact

As part of an effort to entice data centers to locate in the region, Southwest Virginia leaders announced Tuesday a joint agreement to set what will be Virginia’s lowest regional property tax rate on data center equipment.

The localities comprising the Lonesome Pine Regional Industrial Facilities Authority — Dickenson, Lee, Scott and Wise counties and Norton  — have entered into an agreement to each establish a tax rate of 24 cents per $100 on data center equipment. By comparison, Henrico County slashed its data center equipment tax rate to 40 cents on every $100 in March 2017 in order to attract the $1.75 billion Facebook data center, which opened last year at the county’s White Oak Technology Park in Sandston. At the time, Henrico’s was the lowest such tax rate in the state.

Now, through its Project Oasis initiative, the region hopes to leverage the area’s underground water in former coal mines to provide free geothermal cooling as a significant savings tool for data centers, which typically rack up high HVAC utility and maintenance bills to keep equipment from overheating. The block tax rate is intended as an additional incentive to the region’s offer of available and cheap land, geothermal cooling and workforce readiness and development.

According to the October 2020 Project Oasis study commissioned by InvestSWVA, the region is well-positioned for data centers. The study states that one large data center could result in more than 2,000 jobs and $50 million in annual economic activity for the region.

That same study states that six sites in the area have met the general criteria to locate a large, 36-megawatt hyperscale data center, and that four additional sites could be suitable for a smaller data center of up to 10 megawatts. Two sites have geothermal cooling opportunities through the utilization of 51-degree water contained in pools on the mining properties. One additional site has underground space that provides a consistent 55-degree temperature.

Tuesday’s announcement builds upon the Virginia General Assembly’s passage last week of Senate Bill 1423, which reduces the job creation requirement necessary for data centers to qualify for the retail sales and use tax exemption in a distressed locality from 25 to 10 jobs. The bill also lowers the new capital investment threshold from $150 million to $70 million.

Speaking during a virtual news conference Tuesday, Del. Terry Kilgore, R-Gate City, said that these new incentives will help attract more data centers like the existing Mineral Gap Data Center Campus in Wise, where Ashburn-based DP Facilities has a highly secure data center for government and health care clients. “We’re not reinventing the wheel,” Kilgore said. “We’re just building on our success.”

Kilgore and other regional leaders participating in the news conference said that while the reduced income tax rate would help attract data centers, localities will still reap the benefit of real estate taxes. Project Oasis’ projected model data center would involve a $464.1 million economic development investment, with an equipment cost of $201.6 million and a building cost of $262.5 million.

As for a potential local workforce, R. Kent Hill, managing principal of Richmond-based OnPoint Development Strategies, said that students from Mountain Empire Community College in Big Stone Gap are trained with adaptable skill sets that could be utilized by data center employers.

“If we were to get a large data center to select [a site] in the region, they would have a custom-tailored workforce or training program that would hit the road fairly quickly,” Hill said, noting that some data centers jobs have six-figure salaries.

Hill added that each of the sites under consideration has been examined for viability, including for power and connectivity capabilities. Fiber-optic internet either already exists at the locations or could be extended “fairly easily.”

As for the block tax rate agreed to by the localities, final action will take place this spring when they formally adopt the terms of the memorandum of understanding through their annual budgetary process.

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eHealth Technologies creating 160 jobs in Scott County

eHealth Technologies Inc., a provider of medical record and image retrieval and clinical intelligence services, is investing $375,000 to establish a customer support center in Scott County that will create 160 jobs, Virginia Gov. Ralph Northam announced Thursday.

Based in Rochester, New York, eHealth Technologies is a wholly owned subsidiary of Fairfax County-based private equity firm Aldrich Capital Partners, which acquired the company in 2019. eHealth Technologies serves more than half of the nation’s top 100 hospitals. Its health system clients in Virginia include UVA Health, VCU Health and Inova Health System. The company’s eHealth Connect platform directly provides a patient’s external records, images, and pathology slides to health care providers, which, according to eHealth Technologies, can reduce a patient’s wait time for critical care from weeks down to days.

The average annual pay at the customer support center will be $36,500, and eHealth Technologies is working closely with the Scott County Economic Development Authority to locate a site for the facility, according to Will Payne, director of InvestSWVA, a public-private economic development marketing organization for Southwest Virginia that has been working since November 2019 with eHealth Technologies to land the project.

“The growth of telehealth during the pandemic has created an increased demand for companies like eHealth Technologies that provide innovative solutions to streamline health information and enhance patient care,” Northam said in a statement. “Southwest Virginia is proactively working with its higher education partners to equip the workforce with 21st century skills, and this announcement is a reflection of that progress. We thank eHealth Technologies for creating 160 new jobs in Scott County, and stand ready to support their success as they work to deliver much-needed services to hospital systems and health care organizations across the nation.”

“This expansion in Southwest Virginia is the right next step in our strategic growth plan,” eHealth Technologies CEO Jeff Markin said. “We appreciate the support received from the Virginia Tobacco Region Revitalization Commission-backed InvestSWVA team, and we are excited to grow our partnerships around the commonwealth of Virginia. This Scott County expansion will enable eHealth Technologies to strengthen our focus on helping the clinicians we serve get seamless access to the health care information they need — when they need it — for the benefit of patients receiving critical care.”

Mirza Baig, founding partner of Aldrich Capital Partners, said in a statement, “During strategic planning sessions with the executive team at eHealth Technologies, we identified the need to open a new office location to support our ambitious growth goals. We evaluated numerous options and are proud to announce Southwest Virginia will be home to our fourth … site in the state. After investments in Richmond-based Paymerang and Hampton Roads-based Decisions.com, we are looking forward to building multiple, world-class teams in Virginia.”

The Virginia Economic Development Partnership worked with Scott County, InvestSWVA, Mountain Empire Community College and the Virginia Tobacco Region Revitalization Commission to secure the project for Virginia. Northam approved a $626,500 incentive grant for the project from the Commonwealth’s Opportunity Fund. The Virginia Tobacco Region Revitalization Commission approved $94,000 for the project and eHealth Technologies also is eligible to receive state benefits from the Virginia Enterprise Zone Program, which is administered by the state Department of Housing and Community Development.

“Project Navigator proves that taking a disruptive approach to economic development results in strategic wins,” Payne said. “Our InvestSWVA team is proud to partner with eHealth Technologies and Aldrich Capital Partners, because they see great value in Southwest Virginia’s workforce and our region’s ability to help them grow.”

InvestSWVA brought Mountain Empire Community College into discussions with eHealth Technologies to ensure that the company would have a pipeline of health information management graduates for the customer support center.

“eHealth Technologies will be a game changer for talent development in Southwest Virginia,” said Kris Westover, president of Mountain Empire Community College. “MECC has a successful track record of preparing the region’s workforce for careers in health information management, and we are proud to partner with eHealth Technologies on developing a well-trained workforce that will ensure the highest level of customer service and, ultimately, patient care.”