The Virginian-Pilot
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VIRGINIA BEACH
A German manufacturer plans to spend $35.5 million to expand its Virginia Beach production facility and hire 80 new workers, Gov. Bob McDonnell will announce today.
IMS:Gear Virginia Inc. has signed a lease for a 111,000-square-foot building that is under construction on Progress Lane. It will more than double the amount of space the company uses to produce metal and plastic gear assemblies used in automatic seats for automobiles.
"This significant investment will allow for a larger facility and an additional manufacturing line to support a growing customer base," McDonnell said in a news release. "The company continues to be a strong corporate partner to the commonwealth and a key component of the automotive industry niche that is present in Virginia."
The manufacturer, a subsidiary of IMS:Gear GmbH, based in Donaueschingen, Germany, has been in Virginia Beach for 11 years and currently operates in a 40,000-square-foot building on Seahawk Circle.
It plans to move to the new building by August, said Scott Hall, a business development coordinator in the city's economic development department.
The new jobs will pay an average annual salary of $48,000, city officials said.
IMS:Gear will be hiring manufacturing line operators, individuals with experience operating and maintaining automated production equipment, and mechanical engineers, said Guenter Weissenseel, the company's local president.
Virginia Beach officials, including Mayor Will Sessoms and economic development director Warren Harris, visited with executives from the company in Germany on an economic development trip in October.
"The company had a very attractive opportunity to take this expansion out of Virginia, but because of the quality of our local workforce and the overall positive business environment that exists in Virginia Beach, the City was able to provide a viable option for them," Sessoms said in a news release.
All told, the company stands to receive nearly $1 million in state and local economic development incentive grants.
As part of the expansion, IMS:Gear will receive a $200,000 grant from the Governor's Opportunity Fund and a $300,000 grant from the Virginia Investment Partnership to help with the expansion, officials said. The company is applying for workforce training assistance from the Virginia Jobs Investment Program.
On Jan. 17, the Virginia Beach Development Authority also will consider whether to approve a $480,000 city economic development grant, officials said.
The company looked at relocating to Georgia, but those grants helped persuade it to remain in Virginia, Weissenseel said. IMS:Gear also didn't want to lose its current workforce, he added.
"I'm impressed how the city cares about the different people... and how they support us to be here," he said.
Josh Brown, (757) 446-2318, josh.brown@pilotonline.com
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this is how to do a deal...good news
This is the kind of deal that is a won win for all. Just think think you could do 30 of these deals for the proce of the hotel project being kicked about. And light rail had NO impact on this decision..Imagine that! Many will claim credit with this investment but it comes down to some basic principles.....My guess is there is another German company and that sets a comfort level for these folks...good deal offered by the city....ok schools....good beach living to draw the german engineers to want to work here.....the US is becoming CHEAP living for the europe folks...
As I work in Europe 6 months a year there is a great potential for more of this investment....Virginia Beach has the best chance to get this business.
Why only governmental "incentives"?
In other counties, particularly European and Asian ones, people have no compunctions about explicit financial alliances between government and commercial enterprises. Which is certainly a boon for both, particularly when a great idea needs funding for development. Why wouldn't similar pragmatic alliances advantage our own economy, all political and economic dogma aside?
This is great news
Being from VA living in GA now I'm kinda torn with GA losing out on an opportunity to help the economy here which will affect me more directly but I gotta love it to see my home getting this. People may frown on the grants given to sway this company but lets be real about it. Engineering jobs are far and few between out here and rather than being conservative about everything it's necessary to invest/take a risk in order to be rewarded. Without risk we wouldn't have acheived all the things that made America great. I for one applaud the effort and hope more localities follow suit to bring those jobs back from overseas and get America back working.
We (taxpayers) paid them $1 million to expand.
"All told, the company stands to receive nearly $1 million in state and local economic development incentive grants."
I realize it has become necessary to sweeten the pot for businesses to come, stay, or expand in your area, but, geez, a million bucks here, a million bucks there ... soon you're talking about some real money.
Channelling Evertt Dirkson
I think if the Senator were alive today it would be a billion here, a trillion over there...
Wage Competition in VB Manfg Jobs?
Can this really be true --- Stihl announces an expansion last week, with new jobs paying $45,000+, and now this, with new jobs at $48,000+?
I've made my last snide comment about Beach retail t-shirt and restaurant jobs --- we've turned the corner, it seems. Hopefully we've reached the critical mass needed for the community to begin developing a reputation for quality manufacturing workers. We're on our way!
And they are both German companies. Hmmmmm.....
Is it their design to enslave the population of VB???
Good news
Alright Engineering grads, go get 'em!
consider whether to approve a $480,000
If this is a done deal, why would they consider doing this? Who will it benefit – the city or the people approving the grant?
I just hope
That Tollbooth Bob doesn't try to set one up in every parking lot of the site.