Virginia

Iluka Resources Plans Mineral Sands Mining Development in VA

Perth, Australia-based mining company Iluka Resources (ASX: ILU) announced a proposed mineral sands mining development in Dinwiddie County, Virginia.

Iluka Resources mining operations in Virginia

Iluka Resources mining operations in Virginia (photo – iluka.com)

The company will initially be investing $67 million on machinery and equipment for the mining and concentration facilities.

To-date, the company has already invested $20 million on the project, and subsequent development costs are likely to push the total project cost up to $120 million.

Iluka’s project will create 86 new jobs with a total payroll impact of $34 million over the next 11 years. It will also create 490 construction jobs.

Iluka already has two mining operations in Virginia, located in Brink and Concord. The mined material is currently moved to a separation plant in Stony Creek which produces minerals such as zircon.

The proposed plant in Dinwiddie County includes mining and concentration facilities to produce zircon and titanium. Virginia zircon is apparently highly sought by high-end sanitary-ware and ceramic tile manufacturers.

Governor McDonnell said that Iluka had been a valuable employer for the last 16 years, and their new decision to add a new sands mine and invest in new equipment was a testament to the abundance of natural resources and infrastructure available.

Iluka also had mines in Florida and Georgia, but ceased those operations in 2005 and 2006 respectively. The company has since been evaluating new mineral sands deposits in Aurelian Springs, North Carolina and Dinwiddie County, Virginia for development.

Company officials indicated they were able to move ahead with the Dinwiddie County site first because of Virginia’s business-friendly environment.Matthew Blackwell, president and general manager, U.S. Operations, Iluka Resources, said that they appreciated the fast and thorough responses provided by officials and regulatory agencies while the company was considering the project.

The Virginia Economic Development Partnership (VEDP) worked with local officials in Dinwiddie County to secure the project. The company has been offered a $300,000 grant under the Virginia Investment Partnership program, along with another $525,000 from the Virginia Tobacco Commission.

The Virginia Department of Business Assistance will additionally provide Iluka with funding and support for recruitment and workforce training.

Gun Maker Relocations Limited by Region

A few days ago, Fort Collins, Colorado-based HiViz Shooting Systems announced that it was relocating to Laramie, Wyoming. This is actually one of the first relocations announced in what is likely to be a major gun manufacturing industry realignment, but still provides a pretty clear picture of what’s going to happen.

HiViz Shooting Systems

HiViz Shooting Systems (photo – hivizsights.com)

Colorado is one of the few states that has passed new gun control legislation after the Newtown shootings, along with Maryland and Connecticut itself.

HiViz CEO Phil Howe said the company selected Laramie because of Wyoming’s strong support for gun manufacturers and Laramie’s close proximity to their current facility in Fort Collins, which is just across the state line in Colorado.

Howe added that the fine people at the Laramie Economic Development Corporation (LEDC) and the Wyoming Business Council had worked hard to accommodate their needs and made them feel welcome.

In Maryland, Beretta USA is a major employer with 400 employees and a factory in Accokeek. The company warned state legislators they would relocate if proposed gun control legislation was approved.

Beretta is now being actively wooed by many economic development agencies and state officials. Maine Gov. Paul LePage even wrote an op-ed exhorting Beretta to “Come to Maine.” But it’s Virginia that has the best chance to secure the Beretta relocation because of its proximity to their existing plant and favorable policies for gun makers, same as the CO to WY relocation of HiViz.

In fact, Jeffrey Reh, general counsel for Beretta, specifically mentioned Virginia when he warned MD lawmakers that the last time Maryland had passed tougher gun control laws, the company had moved its warehouse to Fredericksburg, VA, which is again only an hour away from Beretta’s plant in Accokeek, MD.

Texas has scored a couple of gun company relocations including California-based Shield Tactical and Oregon-based Colt Competition, a licensee of Colt which makes competition shooting rifles. But these relocations are more about Texas’ general ability to draw companies from other states, rather than a strategic move by a gun-maker due to adverse legislation.

The main relocation battle, so to speak, is raging in Connecticut where gun makers have a combined impact of $1.3 billion on the state economy and are being heavily courted by many states.

Bristol, CT-based PTR Industries has announced its intention to relocate outside the state, while Southport, CT-based Sturm Ruger has indicated that it will not be relocating.

Michael Fifer, president and CEO of Sturm Ruger, told stockholders the company had a good setup in the state and there was no reason to disrupt it. He even announced an expansion of their facilities to add 18 new jobs.

The Hartford, CT-based Colt Manufacturing Company has not issued any public statements or comments recently about relocating, although they did threaten to do so during a gun control legislation hearing last year before Newtown.

North Haven, CT-based Mossberg & Sons has likewise not made any public statements recently about moving out.

One of the possible reasons that the relocation buzz for gun-makers in Connecticut has been so muted so far is that unlike HiViz and Beretta, they have no easy option a short stroll away that will allow their business and supplier network to continue undisrupted.

MD Congressional Delegation Makes a Pitch for FBI HQ Relocation

The pitched battle between Virginia, Maryland and the District of Columbia to secure the new FBI headquarters entered a new stage after the entire Maryland congressional delegation sent the agency heads of the FBI and GSA letters asking them to select a viable site in Prince George’s County, MD as the future home of the FBI.

FBI headquarters

FBI headquarters (photo – fbi.gov)

This FBI headquarters relocation project has been in the works for a long time now.

The FBI and GSA had decided that modernizing or demolishing and replacing the current J. Edgar Hoover Building headquarters was not feasible, and they decided the FBI and its 11,000 employees in the D.C. area should be consolidated into a single new location.

The initial plan was to sell the Hoover building and use the sale proceeds and savings from consolidation to pay for the lease of the new headquarters.

A site would be chosen, and a developer would be given the contract to build the facility and lease it to the FBI. The new site would have to be within 2.5 miles of the D.C. beltway, and no more than two miles from a metro station.

This was back in Dec 2011, and there have been quite a few new developments since then. For starters, the GSA has decided that instead of selling the Hoover Building, they should simply hand it over to the chosen developer as an exchange deal in return for a new state-of-the-art complex.

This system neatly cuts through a lot of bureaucratic red tape involved in the buying and selling of federal properties. It disposes of the GSA’s excess real estate inventory while simultaneously leveraging the property to create savings for governmental agencies. This approach has been championed at the GSA by Acting Administrator Dan Tangherlini.

The GSA put out an RFI (request for information) for this proposal, and received 35 bids from developers interested in the swap.

In their letter to Tangherlini, the Maryland congressional delegation said they applaud the RFI issued by the GSA.

They added that “We strongly encourage GSA to choose a site in Prince George’s County Maryland. We understand that competition for this facility will be fierce among the region’s jurisdictions, but we firmly believe that an honest analysis of the cost of operations, security, convenience of location for staff, transportation options, and the promotion of regional equity in federal facility distribution should make Maryland the choice location for the FBI.”

The letter notes that a full 43 percent of FBI employees reside in Maryland, while Virginia has 33 percent and Washington D.C. only 17 percent.  They claim that moving the headquarters to Maryland would make it more convenient for a majority of employees, save on transportation costs, and would boost employee morale.

They also added that Maryland’s wealth of cybersecurity companies and contractors makes it a strategic location for the FBI, and would provide the agency greater access to experts working on cybersecurity R&D and applications.

Utah, Virginia Team up to Offer East-West U.S. Expansions

Companies entering the U.S. or expanding their presence often have to deal with choosing a location on one coast without completely giving up on the other one. That may not be a problem for much longer, if Utah and Virginia have their way.

Welcome to California sign

Welcome to California sign (photo – Twam/wikipedia)

Utah Governor Gary Herbert and Virginia Governor Bob McDonnell are undertaking a joint trip to California, where they will be co-marketing Utah and Virginia to companies looking at expanding in the United States.

This does have shades of the recent campaign undertaken by Texas to entice California companies, but CA Gov. Jerry Brown is in China on a trade mission and unable to provide free publicity to interlopers with a colorful remark.

The only official California response so far has been from Riley Ray Robbins, deputy director of Go-Biz, the California Governor’s Office of Business and Economic Development, who thanked the governors for their “double-occupancy contribution” to the Golden State’s tourism industry.

But the real news here is about the joint effort by the two states, which is an original concept since it works specifically because of their vast geographical separation. Virginia officials apparently cooked up the idea of teaming up with Utah to offer an East-West expansion strategy so that they can jointly provide more options for companies looking to expand in either the Mountain West or on the East Coast.

They choose Utah as a partner for this effort because the governors have gotten to know each other, and Utah and Virginia are the top two states for doing business, as per the annual Forbes rankings.

Governor McDonnell, talking about the 16-day economic development trip he is undertaking to California and Asia starting April 10, 2013, said in a statement issued by his office that “we will have the unique opportunity to partner with Utah and get in front of California-based companies looking to expand their national footprint.”

In California, the two governors will be jointly hosting a luncheon and receptions. They have arranged their schedules to make room for joint stops in San Francisco, Silicon Valley and Orange County. After the California trip (April 10-12), Gov McDonnell will head for China (April 14-22) and Japan (April 23-25).

Virginia is promoting its agriculture and tourism industries during this three-leg trip, and the Governor is accompanied by senior officials from the Virginia Tourism Corporation, the Virginia Economic Development Partnership (VEDP) and the Virginia Department of Agriculture and Consumer Services, among others.

Irish Food Company Greencore Selects Stafford, VA for Expansion

Dublin, Ireland-based Greencore Group plc announced that it has chosen its food processing facility in Stafford County, Virginia for an expansion that will create 350 new jobs.

Greencore

Greencore (photo – greencore.com)

Greencore plans to invest $5. 75 million for the Fredericksburg area expansion, which will boost its existing workforce of 250 at the Stafford plant to 600.

The new positions are mostly line jobs expected to have average annual wages of about $29,000.

Todd Haymore, Virginia Secretary of Agriculture and Forestry, said that Greencore’s expansion was not just about creating jobs at the facility, but would also help boost local agricultural production.

“Greencore will be served well by expanding in Virginia and sourcing more high-quality Virginia grown products, such as cabbage, peppers, and other commodities from our outstanding family farmers,” added Haymore.

Liam McClennon, CEO for Greencore USA, also cited the availability of quality ingredients and agricultural products used in their manufacturing process.  McClennon said they also took into consideration the existing skilled workforce at the Stafford plant and a suitable talent pool for further recruitment.

State officials held meetings last year with Greencore executives at their U.S. headquarters in Massachusetts. Gov. Bob McDonnell additionally met with the parent company officials in Dublin, Ireland in July 2012 when he was there on a marketing trip.

Virginia successfully competed with several other Greencore plants on the east coast for the expansion, which Greencore is investing on to fulfill a major new foodservice company contract.

The Virginia Economic Development Partnership (VEDP) and officials from Stafford County worked to secure the project. Greencore has been approved for a $75,000 grant from the state’s Agriculture and Forestry Industries Development Fund. Greencore has also been approved for $154,000 in training grants under the Virginia Jobs Investment Program.

The Stafford Opportunity Fund matched it with $75,000 in local incentives. Bob Thomas, vice chairman of the Stafford Board of Supervisors, said they were proud of efforts undertaken to diversify their tax base. Thomas said Greencore adds to that diversity and has helped put Stafford on the global map to compete for opportunities in the international market.

Greencore has 22 manufacturing plants in the U.K. and the U.S. All put together, they have 11,000 employees in Ireland, the U.S. and the U.K. Danvers, MA-based Greencore USA has more than 1,000 employees in six facilities.

Macerata Selects Danville, VA for Custom Wheels Manufacturing

Macerata Wheels, LLC has chosen Danville, Virginia for its custom wheels manufacturing plant and distribution center.

Danville, VA

Danville, VA (photo – discoverdanville.com)

The project will create 101 new jobs and calls for an investment of $8 million over the next three years.

Currently, custom wheel rims are made in China and shipped to the U.S. with long wait times after ordering.

Macerata Wheels, which already has a retail outlet presence in North Carolina’s research triangle, plans to manufacture custom wheel rims and other automobile accessories in the U.S. itself.

“The market for custom wheels has experienced steady growth over the last few decades, and that trend has held true even in periods of economic recession.” said Mike Farless, president of Macerata Wheels. “It is time that we made our own wheels in the United States, and not be totally dependent on imported products.”

This deal has been in the works since Sept 2012, when the Danville Office of Economic Development (DOED) got a tip from a common friend in Cary, NC that the principals of a certain company in the Raleigh-Durham area were scouting sites in South Carolina for a manufacturing plant.

DOED staff visited the company’s office in North Carolina, and Macerata principals responded by visiting Danville. They were very interested in the prospect of getting their machinists trained at Danville Community College’s Precision Machining Lab.

“Programs like this one at Danville Community College persuade companies to choose Danville,” said Jeremy Stratton, director of DOED. “They give us one more tool to successfully recruit companies and create jobs.”

The deal was ultimately secured with the help of a $600,000 grant from the Virginia Tobacco Commission. The Industrial Development Authority (IDA) is helping out by obtaining the chosen site – a former warehouse in Danville close to the college, and providing it to the company on a lease purchase agreement.

The renovations will be completed in the next couple of months, allowing the company to begin operations immediately afterwards. Macerata will begin hiring staff next month itself.

Red Sun Farms Selects Dublin, VA for $30M Greenhouse Project

Michoacán, Mexico-based Red Sun Farms, a producer of high-quality hydroponic vegetables, announced that it will invest $30 million to establish its first U.S. greenhouse production operation in Dublin, Virginia.

Red Sun Farms

Red Sun Farms (photo – agricolaelrosal.com)

The company will erect climate controlled greenhouses on 45 acres of land in the New River Valley Commerce Park in Dublin to grow vegetables, creating 205 new jobs within five years.

Dublin, Pulaski County and the Virginia successfully competed against Tennessee for the project.

“This game-changing project has been in the works for a long time, and it is gratifying to see it come to fruition today,” said VA Governor Bob McDonnell. “Red Sun Farms uses extremely high-tech equipment to provide a continuous supply of the best organic greenhouse produced vegetables, and after much research determined that Pulaski County is the ideal spot for its first U.S. production center.”

Gov. McDonnell added that Virginia offers optimal climatic conditions for greenhouse operations, a central location providing convenient access to east coast markets, and a top-notch workforce ready for this new opportunity.

To secure the project, the Virginia Economic Development Partnership (VEDP) worked with Pulaski County, the New River Valley Economic Development Alliance, Roanoke Regional Partnership, and the NRV Commerce Park Participation Committee of Virginia’s First Regional Industrial Facility Authority.

A $350,000 grant was approved from the Governor’s Opportunity Fund to assist Pulaski County with the project. Another $100,000 grant was offered from the Governor’s Agriculture and Forestry Industries Development Fund.

The company is also eligible to receive state benefits from the Virginia Enterprise Zone Program, and the Virginia Department of Business Assistance will provide funding and services to support the company’s recruitment, training and retraining activities.

Another positive out of the deal is that Red Sun Farms is now the first tenant of the New River Valley Commerce Park, an industrial site in Pulaski County spread over more than 1000 acres less than four miles from I-81 and just 30 minutes from Virginia Tech.

“We are extremely excited to begin construction on our new greenhouse facility in Dublin, Virginia,” said Carlos Visconti, COO of JemD Farms and Thierry Legros, managing director of Red Sun Farms. “Being able to provide quality, safe, and now, locally grown greenhouse produce to our retail partners and consumers is a great accomplishment for our team. We thank the Governor and the local authorities for their support and assistance to make this project a reality.”

Unilever Selects Suffolk, VA Lipton Tea Plant For $96.2M Expansion

Virginia Governor Bob McDonnell announced that Unilever has selected its Lipton Tea manufacturing plant in the City of Suffolk, VA for a $96.2 million investment for facility upgrades and the purchase of new production machinery.

Lipton Tea

Lipton Tea (photo – unileverusa.com)

Suffolk successfully competed against Kentucky, North Carolina and South Carolina for the project, which ensures that the Suffolk Lipton plant will remain the largest tea processing facility in the United States.

“As the largest tea production facility in the U.S., this operation is crucial to the prosperity of the company and employs nearly 300 in Hampton Roads,” said Gov. McDonnell. “This expansion and machinery upgrade ensures the continued success of the Lipton plant for years to come, and is a major win for Virginia and Suffolk.”

Jim Cheng, Virginia Secretary of Commerce and Trade, noted that the Suffolk plant’s proximity to the Port of Virginia influenced the location decision for this investment, as the company imports loose tea through the port from various countries.

That, and the fact that Governor McDonnell approved a $1 million performance-based grant from the Virginia Investment Partnership program, an incentive available to existing Virginia companies.

“Unilever is enormously proud of the heritage of Lipton, its employees in Suffolk and the wide range of quality teas we produce at this historic factory,” said Kees Kruythoff, president of Unilever North America. “We are grateful for the support of Governor McDonnell, Mayor Johnson, Secretary Cheng and the 300 employees who work tirelessly to produce the world’s largest tea brand for the North American market.”

The City of Suffolk is providing additional local incentives. No details were provided about the exact nature of the incentives or any new jobs being created as a result of the expansion project.

“Lipton has been a part of Suffolk for 58 years, and I am absolutely thrilled and overflowing with pride that Unilever and Lipton will reinvest in Suffolk and remain a vital member of our community,” said Suffolk Mayor Linda T. Johnson. “Their decision to stay and reinvest in this facility is a testament to our commitment to keep Virginia and Suffolk an inviting location for business investment and expansion.”

Unilever employs more than 12,000 people across North America and generated over $10 billion in sales in 2012.

Sequestration Impact Hits Economic Development Projects

At the end of the working day on March 1, 2013, the sequester – $85 billion in automatic spending cuts for this year alone, will go into effect. If Congress does not work out an alternate deficit-cutting deal, the sequestration deal that automatically gets triggered calls for $1.2 trillion in spending cuts from 2013-2021.

Sequestration

Sequestration (photo – house.gov)

The White House put out a fact sheet which specifically mentions the impact on the U.S. Economic Development Administration (EDA).

“The Economic Development Administration’s (EDA) ability to leverage private sector resources to support projects that spur local job creation would be restricted, likely resulting in more than 1,000 fewer jobs created than expected and leaving approximately $50million in private sector investment untapped.”

This would just be for 2013, and the impact on everything from the education to defense, aviation and R&D sectors is similarly going to be huge (estimated 750,000 jobs lost in 2013). But it’s a phased process so most of the pain won’t be felt immediately.

However, the perceived and indirect impacts are already being felt, with economic development projects put on hold for various reasons associated with the sequestration.

In Dothan, Alabama, the local chamber cancelled an economic development announcement planned for Friday. AL Gov. Robert Bentley was scheduled to announce a new employer setting up shop at Dothan Regional Airport. The employer apparently asked for a postponement due to worries over the impact of the sequestration on FAA’s control tower.

As per the White House statement, the FAA would be forced to undergo a funding cut of more than $600 million, which means nearly 47,000 employees would be furloughed for approximately one day per pay period, with a maximum of two days per pay period.

Furthermore, TSA would need to initiate a hiring freeze for all transportation security officer positions in March, eliminate overtime, and furlough its 50,000 officers for up to seven days. All this would in turn mean slower air traffic, causing delays and disruptions for travelers.

In Spotsylvania County, Virginia, the local economic development director said that some companies have put off hiring and investment decisions until they get a better idea of how the sequester changes the rules.

The director of the Fredericksburg Department of Economic Development and Tourism said that one manufacturer has put a project on hold, and another business in the city is holding off on an expansion decision. The City of Fredericksburg and Spotsylvania County are heavily dependent on federal contractors in and around Marine Corps Base Quantico.

You can see the full state-by-state impact of the sequester here, categorized by sectors including education, job-search assistance and defense spending.

Microsoft Selects Virginia for $348M Data Center Expansion

Virginia Governor Bob McDonnell today announced that Microsoft Corp. will invest $348 million to expand its modular data center site in Mecklenburg County.

Microsoft data center

Microsoft data center (photo – microsoft.com)

The expansion project, which involves the construction of two additional facilities on its existing data center campus near Boydton, will create 30 new jobs.

“In 2010 we were confident that Microsoft’s plans to establish one of its most advanced data centers in Mecklenburg County would be a transformational project. This second expansion within 16 months of the previous one is a great testament to Microsoft’s success and commitment to Virginia,” said Gov. McDonnell.

Microsoft’s original project in Boydton, which was announced in 2010, involved an investment of up to $499 million and 50 new jobs. In 2011, the company decided to add one facility on the same site with an additional investment of $150 million. The two projects were under construction at the same time.

With this latest $348 million investment, Microsoft’s total investment on this data center campus is now $997 million.

“The company continues to grow its cloud operations, representing a total of nearly one billion dollars in capital investment. The Commonwealth is one of the most active data center markets in the country, and Microsoft’s rapid development helps continue to establish us an industry leader,” added Gov. McDonnell.

The Virginia Economic Development Partnership (VEDP) worked with Mecklenburg County to secure the project for Virginia. Governor McDonnell approved a $200,000 grant from the Governor’s Opportunity Fund to assist Mecklenburg County with the project.

“We appreciate the strong working relationship with the State of Virginia and the County of Mecklenburg,” said Christian Belady, general manager of Microsoft Data Center Services. “These facilities showcase state-of-the-art designs developed from our latest technology and infrastructure research that continues to minimize water, energy use, and building costs, while increasing computing capacity, software capabilities, and server utilization.”

The Virginia Tobacco Indemnification and Community Revitalization Commission (TICRC) approved $2 million in Tobacco Region Opportunity Funds for the project.

“The Tobacco Commission was established to help those counties that had economies dependent on tobacco revitalize themselves for a strong future,” said Senator Frank Ruff, who is also TICRC vice chairman. “I am glad that Mecklenburg County was selected for Microsoft’s investment for its expansion. Southern Virginia offers many assets to companies wishing to expand or re-locate. Microsoft’s decision today is proof of that.”

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