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VIRGINIA BEACH, Va. – Governor Mark Warner recently announced that Stihl Inc. will expand its operations in Virginia Beach. Through a $60.8 million investment, the company will create 200 new jobs. Stihl's investment includes the construction of a 228,000-square foot addition to its U.S. headquarters in the Oceana West Corporate Park. Virginia successfully competed with Brazil, China and Germany for the project.
"Stihl is a worldwide manufacturer, exporting its outdoor power equipment from Virginia Beach to more than 70 countries," Warner explained. "I applaud this decision by Stihl to increase its manufacturing investments, create more jobs in Virginia and keep more jobs in the United States."
Stihl manufactures chain saws and portable, hand-held, cut-off machines, as well as a complete line of outdoor power equipment for homeowners and professional users. The company began manufacturing at the Virginia Beach facility in 1974 with about 50 employees. The manufacturing area was expanded in 1983 and again in 1990 to its current size. In October 1996, Stihl opened a new 50,000-square-foot warehouse facility to house finished goods for worldwide distribution. The expansion will be carried out in three phases over the next two years and includes the purchase of 14.34 acres. New positions created will be in the areas of manufacturing, engineering, quality assurance and marketing.
"Since arriving here more than 25 years ago, Stihl Inc. has constantly pursued the most innovative manufacturing methods possible. Our expansions and manufacturing investments are driven by our need to keep pace with growing customer demand for our products around the world. The highly skilled and dedicated workforce in Virginia Beach and Hampton Roads has been key to successfully keeping pace with this demand," noted Peter K. Mueller, executive vice president of operations at Stihl Inc.
Warner approved a $500,000 grant from the Governor's Opportunity Fund to assist Virginia Beach with the project. Stihl Inc. qualifies for a performance-based grant from the Virginia Investment Partnership program. The VIP program offers financial assistance to existing companies proposing significant expansion projects.
"Stihl is one of the oldest and certainly the largest manufacturer in the city," noted Virginia Beach Mayor Meyera E. Oberndorf. "In fact, the company's nearly 30-year history here is almost as long as the city's. That means we've practically grown up together, and what a phenomenally successful journey it's been for us both. Today's announcement is highly significant for our city and our state, not only for the investment and well-paying jobs involved, but also because of its timing. In these challenging economic times, it is remarkable that Stihl has decided to continue expanding in our city with a project of this magnitude. We will do our best to help keep the future bright for Stihl and for our citizens."