Stihl plans to invest $49 million to expand its chain saw guide bar manufacturing facility in Virginia Beach, Virginia.
"For nearly 50 years, the City of Virginia Beach has created an ideal environment for Stihl to continue to grow our business and offer meaningful careers to over 2,500 current employees in Hampton Roads," said Terry Horan, president of Stihl Inc.
The expansion will add 26,000 square feet of space to an existing building, totaling 86,000 square feet upon completion, said the company.
"We are incredibly proud to be able to continue to expand our Virginia Beach-based manufacturing operations to fulfill the increased demands of our more than 10,000 loyal Stihl dealers nationwide and their customers," said Horan.
The project is also expected to create 15 new jobs with an average annual wage of $60,000 to $100,000.
The Virginia Beach Development Authority (VBDA) voted to award Stihl an Economic Development Incentive Program (EDIP) grant of $500,000 for the expansion based on job creation and retention, said the firm.
In addition to increasing its footprint in Virginia Beach, Stihl said it plans to invest in equipment and add highly skilled positions to its team, including maintenance mechatronic technicians, process engineers, tool and die makers, project coordinators, and machine operators.
“We are thrilled that Stihl, a valued member of our business community, continues to invest in Virginia Beach,” said Patrick Duhaney, city manager of Virginia Beach.
The new project will allow for a third chain saw guide bar production line to be added, increasing production capacity.