A German company will establish its North American headquarters and manufacturing operation in the former General Electric building in Salem.
STS Group AG previously announced an investment in a greenfield project in Wythe County. However, 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.
The project represents a $32 million investment and is expected to create 119 new jobs.
STS Group AG said 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.
The company will upfit approximately 200,000 square feet of the existing space and construct a 32,000 square-foot addition.
“When STS Group’s business needs changed, Virginia quickly pivoted to an alternate solution to ensure we retained the project in the Commonwealth,” said Governor Glenn Youngkin. “I am pleased that the former General Electric building in the City of Salem could meet the company’s needs, representing 119 new jobs for hardworking Virginians and a vacant facility’s return to productive use. Collaboration, innovation, and solutions are Virginia trademarks, and we are proud to officially add STS Group to the Commonwealth’s corporate roster.”
The GE facility in Salem had been vacant since 2019.
“The GE facility 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,” said Secretary of Commerce and Trade Caren Merrick.
STS Group AG, headquartered in Hagen, Germany, develops, manufactures, and supplies products and solutions for components made of plastic or composite material for the automobile and trucking industries.
STS Group’s customer base includes a number of major automobile and commercial vehicle producers. The company operates 12 plants in four countries on three continents, with production facilities in its key regional markets of Europe, China and the Americas.
The Virginia Economic Development Partnership worked with the City of Salem and the Roanoke Regional Partnership to secure the project for Virginia.
Governor Youngkin also 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, with funding support from the Governor’s administration and the Virginia General Assembly.
Launched in 2019, the talent 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.
STS Group AG to establish first U.S. location in Wythe County, creating 120 new jobs