Germany-based STS Group AG, a leading global system supplier of interior and exterior parts for commercial vehicles, will invest $39 million to establish its first U.S. manufacturing operation at Progress Park in Wythe County, Virginia. The project is expected to create 120 new jobs.
The new facility, operating as subsidiary 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.
“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. “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. We received a warm welcome and extensive support from both the Virginia Economic Development Partnership and the Joint Industrial Development Authority of Wythe County during our site selection process. The genuine and creative effort from the Wythe County team in helping us obtain necessary financial support to start up this new facility played a key role in selecting Wythe County as the home for our first U.S. plant. We like the pro-business environment we see in the greater Wytheville area and we are confident in our choice. We look forward to contributing to the region’s economy and to the community’s well-being.”
The Virginia Economic Development Partnership (VEDP) worked with Wythe County and the Joint Industrial Development Authority (JIDA) 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.
Support for STS Group North America’s job creation will be provided through the Virginia Talent Accelerator Program, a workforce initiative created by VEDP in collaboration with the Virginia Community College System and other higher education partners, with funding support from the Northam Administration and the Virginia General Assembly.
“We are excited that Virginia stood out as the prime location for STS Group’s U.S. operations and are confident the company will benefit from our business-friendly environment and market access,” said Secretary of Commerce and Trade Brian Ball. “This region of the Commonwealth has a thriving automotive cluster that has the positive ripple effect of attracting global suppliers like STS. We are grateful for this investment in Southwest Virginia and the creation of 120 manufacturing jobs in Wythe County.”
STS Group AG, headquartered in Hallbergmoos, Germany, develops, manufactures, and supplies products and solutions for components made of plastic or composite material (“hard trim products”) for the automobile and trucking industries.
“We are excited that STS Group will be joining our strong automotive sector here at the crossroads of Southwest Virginia,” said David A. Kause, Chairman of the Joint Industrial Development Authority of Wythe County. “The Joint IDA worked extensively with the company, our partners at the state and local level, and those in the private sector to help bring this manufacturing project to fruition. We thank everyone for the teamwork that exemplifies the best of economic development.”