Stihl Inc. to expand Va. Beach site, hire 52 new workers

VIRGINIA BEACH

Power tool manufacturer Stihl Inc. plans to spend $10.3 million to build an expansion at its U.S. headquarters and hire 52 new workers, city officials are set to announce today.

The expansion would allow the German company to double its manufacturing capacity for "blow-molded" plastic products, such as tubes used for blowers and fuel tanks.

"Our Virginia Beach workforce has proven its ability to meet the demands of our customers, both here and overseas," said Peter Mueller, the company's executive vice president, in a news release. "Because of the manufacturing-friendly environment in Virginia Beach, we are able to compete domestically and globally, ultimately allowing us to continue to expand our operations here."

Mueller and Stihl's national president, Fred Whyte, were in Germany on Monday, attending meetings at Stihl's worldwide headquarters, spokesman Terry Kelley said.

Stihl last month began construction of the more than 53,000-square-foot addition to its accessories building off International Parkway, said Lorraine Wagner, director of manufacturing. The existing building produces accessories such as cutting heads for trimmers.

The addition is expected to be completed by the middle ofnext year, Wagner said.

Stihl will spend approximately $4.9 million to build the facility on land now used for parking, $4.6 million on machinery and $800,000 for other equipment, city officials said.

The company, which already employs nearly 1,900 workers at the site, will begin hiring new workers in the first half of next year, Wagner said. The new workers will earn an average salary of $45,000 a year, city officials said.

The Virginia Beach plant produces more tools than any other Stihl plant in the world.

The privately held company does not publicize how many tools it produces. But Whyte has said sales of U.S.-made equipment, which is marketed worldwide, top $1 billion annually.

The company has applied for a $100,000 city economic development grant connected to its capital spending and new jobs. The Virginia Beach Development Authority is expected to vote today on the application.

Virginia Beach officials, including Mayor Will Sessoms and economic development director Warren Harris, visited with Stihl executives in Germany on an economic development trip in October.

Harris said the company revealed its expansion plans during that trip.

"It's a reaffirmation that Virginia Beach still can be very competitive at the attraction of high-performance manufacturing," Harris said. "Folks often talk about manufacturing going away, but we have this example of a reinvestment in manufacturing in Virginia Beach."

In a statement, Sessoms added: "Our ongoing relationship with Stihl continues to pay dividends for our community in terms of new jobs and added tax revenue."

Josh Brown, (757) 446-2318, josh.brown@pilotonline.com

Philip Walzer, (757) 222-3864,phil.walzer@pilotonline.com