STIHL INC. ANNOUNCES $78.4 MILLION MANUFACTURING EXPANSION
Manufacture of STIHL Guide Bars Creates New Jobs in the U.S.
For Release: December 2005
Press Contacts:
Anita Gambill (757) 486-9151 or
Terry Kelley (757) 340-7425
All other inquiries:
STIHL Incorporated
(757) 486-9100
VIRGINIA BEACH, Va. Power equipment manufacturer STIHL Inc. announced today that it will be expanding operations in Virginia Beach with a capital investment of over $78.4 million. Slated for completion in 2007, the initial two-phased expansion will create in excess of 150 new jobs, which is part of an overall corporate plan to add up to 300 new positions in the next year.
“We are pleased to be able to continue to add jobs here in support of the local and national economies in lieu of outsourcing,” stated Fred Whyte, president of STIHL Inc. “Although we export to over 80 countries, the United States is still the largest single market for our products. Consequently, expanding manufacturing here in Virginia Beach has repeatedly proven to be a sound business decision for STIHL.”
“I met with members of the STIHL management board during a trade trip two years ago, and I am pleased to have an opportunity to announce this expansion and the creation of 150 new jobs before my term as governor ends," Governor Warner said. “This project marks the largest single facility investment in the history of STIHL Incorporated, and it is clear Virginia Beach has provided the company with the tools for success."
In phase one, a new 60,000-square-foot facility on London Bridge Road will house manufacturing operations for STIHL guide bars, which are used on chain saws. This will be the first time that guide bars will be manufactured in the U.S. for STIHL and will represent an investment of over $20 million by the company. In phase two, an investment of more than $58.4 million will expand one warehouse by 88,000 square feet and convert other existing warehouse space into manufacturing for additional crankshaft and machining operations.
“We are extremely proud that STIHL Incorporated is making the largest single manufacturing capital investment in Virginia Beach history,” said Mayor Meyera E. Oberndorf. “For more than 30 years, the City of Virginia Beach has enjoyed an excellent relationship with STIHL and its world-class workforce. Throughout the years, weve witnessed tremendous growth both for STIHL and the City itself. Just three years ago, STIHL expanded by $60.8 million and 200 employees. This further expansion of one of the worlds finest manufacturing operations by $78.4 million in capital investment and 150 new high-paying jobs not only is a testament to Virginia Beachs pro-business attitude and economic development strategy, but it is also critical to the economic vitality of our outstanding community.”
|
Significant increases in demand for STIHL guide bars have led to the new production facility in the U.S. The new Virginia Beach facility will primarily provide guide bars to markets in North and South America.
"STIHL is the only chain saw manufacturer that produces its own guide bars and saw chain,” said Peter Mueller, executive vice president of operations at STIHL Incorporated, “and we are pleased to soon be able to produce guide bars here in the U.S.”
Mueller added, “This latest expansion is one of several recent investments in manufacturing and technological advances to keep pace with consumer demand for our products. The new facility will employ highly automated technology, similar to the automotive industry, in order to meet exacting STIHL standards.”
The highly skilled and dedicated workforce in Virginia Beach and Hampton Roads has often been cited by company officials as a key reason for first locating in Virginia Beach and continuing to expand here. The latest expansion will be carried out in two initial phases from 2005 to 2007 and includes the acquisition of 10 acres. New positions created by the phase one guide bar expansion will include stamping machine operators, maintenance mechanics and tool & die makers, as well as a unit manager and engineers.
STIHL Incorporated began manufacturing at the Virginia Beach facility in 1974 with about 50 employees. Today, the company employs approximately 1,600 people in Virginia Beach and at company-owned branches around the country. The Virginia Beach complex is located in Oceana Industrial Park on over 70 acres with more than 700,000 square feet of manufacturing, warehouse and office space.
About STIHL Inc.
STIHL Inc. manufactures the world’s largest selling brand of chain saws and produces a full line of powerful, lightweight, and versatile handheld outdoor power equipment for homeowners and professional users. STIHL products are sold through servicing power equipment retailers from coast to coast— not mass merchants. For more information or for the name of the closest STIHL retailer call toll free 1-800-GO STIHL (1-800-467-8445) or visit the STIHL Web site at www.stihlusa.com.
For information on job opportunities with STIHL Inc., please go to www.stihlcareers.com. STIHL is an EEO and drug-free work environment.
Back to Press Office
|
