German auto parts maker revamps Salem GE plant

Most everyone in the Roanoke Valley either worked at the former General Electric Co. facility in Salem or knew someone who had, says Renée Turk, the city’s mayor.

“On some level, it meant a lot to the entire community,” she says of the manufacturing plant, which opened in 1955.

After employing more than 3,000 workers at its peak, General Electric closed the facility, which made power conversion controls, in 2019, citing a decline in orders. But 1501 Roanoke Blvd. is once again bustling — for now, with construction workers.

In March, Gov. Glenn Youngkin announced that German auto parts manufacturer STS Group AG plans to establish its North American headquarters in the former GE building. Executives plan to hire 119 full-time employees and invest $32 million in the new facility.

Turk is proud the prominent building will once again be used for “manufacturing some great parts right here in Salem.”

STS Group develops, manufactures and supplies vehicle interior and exterior parts made from plastic or composite materials. The parts produced will go to Volvo Trucks in Pulaski County as well as to other facilities, according to Youngkin’s office. The company declined to offer details other than to say STS Group AG “will supply existing customers both for trucks and cars.”

STS Group AG will lease approximately 200,000 square feet of existing space at the former GE facility, which Wisconsin-based Phoenix Investors purchased in 2022 for $11.4 million. The German auto parts maker is also building a 32,000-square-foot addition to accommodate hydraulic presses.

That leaves about 300,000 square feet available for other industrial and office use, according to Tommy Miller, director of economic development for Salem. “We really want to market that heavy and continue to see how we can creatively reuse portions of the building,” he says.

In March, STS Group was preparing to install machinery at the facility. The first prototypes of “exterior components” will come off the line by the end of 2023, with production beginning in 2024, company spokesperson Frédéric Thébaud told Virginia Business. He declined to specify the type of product the company will be making.

In 2021, STS Group AG announced plans to build its $39 million manufacturing facility at Progress Park in Wythe County. Rising construction costs, however, prompted STS Group to instead look for an existing building, which led the company to Salem.