German auto parts maker to build $38M Wythe County factory

German auto parts manufacturer STS Group AG will invest $39 million to establish its first U.S. manufacturing operation in Wythe County’s Progress Park industrial park, creating 120 jobs, Virginia Gov. Ralph Northam announced Thursday.

Located near Wytheville, the new facility, operating as a subsidiary of STS Group North America, will supply Volvo Trucks in Pulaski County and other truck and automotive facilities throughout the Midwest and southeastern U.S. markets. Virginia successfully competed with North Carolina for the project.

“The presence of STS Group North America in Wythe County will go a long way toward strengthening Virginia’s growing automotive manufacturing sector,” said Northam in a statement. “This is just the latest example of an international company selecting our commonwealth as the ideal location to do business, thanks to our competitive operating costs, world-class workforce, and outstanding quality of life.”

Headquartered in Hallbergmoos, Germany, STS Group AG develops, manufactures, and supplies products and solutions for components made of plastic or composite material (“hard trim products”) for the automobile and trucking industries. STS Group’s customer base includes a number of major automobile and commercial vehicle producers. The company operates 12 plants in four countries on three continents, with production facilities in its key regional markets of Europe, China and the Americas.

“As a leading system supplier for plastic and composite components for the automotive industry, we make strategic location decisions to better serve our customers,” said Mathieu Purrey, CEO of STS Group AG, in a statement. “At the crossroads of Interstates 81 and 77, Progress Park in Wythe County is strategically located close to several facilities of our key global customers.”

The Virginia Economic Development Partnership worked with Wythe County and the Joint Industrial Development Authority of Wythe County to secure the project for Virginia. Governor Northam approved a $500,000 grant from the Commonwealth’s Opportunity Fund to assist Wythe County with the project. The Virginia Tobacco Region Revitalization Commission approved $80,000 from the Tobacco Region Opportunity Fund for the project. The company is also eligible to receive state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development.

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