The VEDP worked with Hanover County and The Port of Virginia to secure the project for Virginia. The company is eligible to receive benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program.
“SanMar’s strategic decision to locate in Virginia holds real value for the company, The Port of Virginia, and the Commonwealth,” said Stephen A. Edwards, CEO and executive director of the Virginia Port Authority. “The Hanover County location gives SanMar easy access to Richmond Marine Terminal, which is an important, growing, inland logistics center on I-95. The port benefits because of an increase in volume, and then the job creation and investment has benefits that reach across Virginia. We are excited about the opportunities of having SanMar as a port user and are looking forward to a very productive, long-lasting relationship.”
STS Group AG To Establish HQ, Manufacturing In Salem
In the City of Salem, Germany-based STS Group AG will establish its North American headquarters and manufacturing operation in a former General Electric building, representing a $32 million investment. Operating as STS Group North America, the new facility will supply commercial truck assembly operations by Volvo Trucks in Pulaski County as well as other truck and automotive facilities throughout the Midwest and Southeastern U.S. markets. The company will upfit approximately 200,000 square feet of the existing space and construct a 32,000-square-foot addition. The project will create 119 new jobs.
“Salem is a perfect base for STS Group to start its footprint in the USA, following existing customers locally and extending the customer portfolio,” said Alberto Buniato, CEO of STS Group. “On top of a perfect existing location in a suitable industrial cluster, we were delighted to find very attentive and helpful support from the City of Salem, Roanoke Regional Partnership, and Virginia Economic Development Partnership.”
STS Group AG previously announced an investment in a new greenfield project in Wythe County in April 2021. Due to changing market conditions and rising construction costs for a new building, the company reevaluated the project and identified the existing facility in Salem to proceed in Virginia.
“It was a priority to keep STS Group’s planned operation in the Commonwealth, boosting our automotive manufacturing sector and foreign direct investment,” said Secretary of Commerce and Trade Caren Merrick. “The GE facility has remained vacant since 2019 and will now be revived as a North American headquarters and manufacturing operation that complements the booming automotive cluster in the Roanoke region—a tremendous win for the City of Salem, the Commonwealth of Virginia, and STS Group.”
“We are excited to have the opportunity to work with STS Group and to welcome this company to our diverse automotive manufacturing cluster,” said John Hull, executive director of the Roanoke Regional Partnership. “STS Group effectively adds a new product to the regional supply chain related to automotive and heavy truck manufacturing and further solidifies the regional value proposition for auto-related manufacturing.”
The VEDP worked with the City of Salem and the Roanoke Regional Partnership to secure the project for Virginia. Gov. Youngkin approved a $500,000 grant from the Commonwealth’s Opportunity Fund to assist the City of Salem with the project.
Support for STS Group’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. The program accelerates new facility start-ups through the direct delivery of recruitment and training services that are fully customized to a company’s unique products, processes, equipment, standards, and culture. All program services are provided at no cost to qualified new and expanding companies as an incentive for job creation.