Gas-powered handheld outdoor power equipment maker Stihl Inc. will add 53,256 square feet of manufacturing capacity to an existing building at its headquarters in Virginia Beach, VA, U.S. The expansion, scheduled for completion in spring 2012, represents a capital investment of $10.3 million and the creation of 52 new jobs.
The capital investment includes $4.6 million in new machinery and tools to accommodate growth in its blow molding operation and double its blow molding capabilities. This enhancement will enable it to manufacture additional blow molded components on-site, expand line-winding operations for trimmers, and relocate welding operations.
A. Stihl Maschinenfabrik was founded by Andreas Stihl in Stuttgart, Germany in 1926 and is today Andreas Stihl AG & Co. KG. The U.S. business, Stihl, Inc., was founded in Virginia Beach in 1972. The Virginia Beach location currently has 1900 employees, working under 1 million square feet of building space on a 90-acre campus.
"Our Virginia Beach workforce has proven its ability to meet the demands of our customers, both here and overseas,” said Peter Mueller, executive vice president. “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.”
The Virginia Beach Development Authority awarded Stihl Inc. an Economic Development Investment Program grant of $100,000 based on the capital investment and number of full-time jobs created.
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