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Germany's STS Group setting up its first US manufacturing facility

20 Apr '21

4 min read

Pic: STS GROUP

STS Group, a system supplier of interior and exterior parts for commercial vehicles, is setting up its first US manufacturing facility in Wythe County’s Progress Park with an investment of $39 million. The facility will supply Volvo Trucks in Pulaski County and other truck and automotive facilities throughout the Midwest and Southeastern US markets.

The new facility will operate as operating as subsidiary STS Group North America. Virginia successfully competed with North Carolina for the project, which will create 120 new jobs.

“The presence of STS Group North America in Wythe County will go a long way toward strengthening Virginia’s growing automotive manufacturing sector,” said Governor Ralph Northam. “This is just the latest example of an international company selecting our Commonwealth as the ideal location to do business, thanks to our competitive operating costs, world-class workforce, and outstanding quality of life. We thank STS for creating new jobs and investing in Southwest Virginia and look forward to building a strong partnership in the years to come.”

STS Group, headquartered in Hallbergmoos, Germany, develops, manufactures, and supplies products and solutions for components made of plastic or composite material (hard trim products) 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.

“We are excited that Virginia stood out as the prime location for STS Group’s US operations and are confident the company will benefit from our business-friendly environment and market access,” said secretary of commerce and trade Brian Ball. “This region of the Commonwealth has a thriving automotive cluster that has the positive ripple effect of attracting global suppliers like STS. We are grateful for this investment in Southwest Virginia and the creation of 120 manufacturing jobs in Wythe County.”

“As a leading system supplier for plastic and composite components for the automotive industry, we make strategic location decisions to better serve our customers,” said Mathieu Purrey, CEO of STS Group. “At the crossroads of Interstates 81 and 77, Progress Park in Wythe County is strategically located close to several facilities of our key global customers. We received a warm welcome and extensive support from both the Virginia Economic Development Partnership and the Joint Industrial Development Authority of Wythe County during our site selection process. The genuine and creative effort from the Wythe County team in helping us obtain necessary financial support to start up this new facility played a key role in selecting Wythe County as the home for our first US plant. We like the pro-business environment we see in the greater Wytheville area and we are confident in our choice. We look forward to contributing to the region’s economy and to the community’s well-being.”

The Virginia Economic Development Partnership (VEDP) worked with Wythe County and the Joint Industrial Development Authority (JIDA) of Wythe County to secure the project for Virginia. Northam approved a $500,000 grant from the Commonwealth’s Opportunity Fund to assist Wythe County with the project. The Virginia Tobacco Region Revitalisation Commission approved $80,000 from the Tobacco Region Opportunity Fund for the project. The company is also eligible to receive state benefits from the Virginia Enterprise Zone Programme, administered by the Virginia Department of Housing and Community Development.

Support for STS Group North America’s job creation will be provided through the Virginia Talent Accelerator Programme, a workforce initiative created by VEDP in collaboration with the Virginia Community College System and other higher education partners, with funding support from the Northam Administration and the Virginia General Assembly. Launched in 2019, the programme accelerates new facility start-ups through the direct delivery of recruitment and training services that are fully customised to a company’s unique products, processes, equipment, standards, and culture. All programme services are provided at no cost to qualified new and expanding companies as an incentive for job creation.

Fibre2Fashion News Desk (SV)