August 2006 OFB



August 2006 OFB

FOR IMMEDIATE RELEASE
August 2, 2006

CONTACT: Lara Ramsburg, (304) 558-2000

Governor Releases August"Open for Business" Report

The August 2006 report highlights recent progress in West Virginia economic development, with projects and related announcements that help create and maintain jobs and business opportunities in the Mountain State.
  • STATE DEVELOPMENT NEWS
  • LOCAL DEVELOPMENT NEWS
  • CORPORATE NEWS
  • TOURISM NEWS
  • NEW DEVELOPMENT LOANS
  • WEST VIRGINIA: IN THE NEWS

    Huntington: One of the country's largest ports

    In its Spring 2006 issue, Southern Business & Development magazine lists Huntington, W.Va., as the sixth-largest U.S. port by cargo volume. The ranking was gleaned from the U.S. Department of Transportation's Bureau of Transportation statistics for the article on southern ports. Huntington is among company such as Houston, New York/New Jersey, New Orleans and Long Beach, Calif.

    Business Climate Update

    STATE DEVELOPMENT NEWS

    State provides $41 million for modern water and sewer service
    The state Infrastructure and Jobs Development Council in July provided more than $41 million for 26 public water and sewer service projects across the state. The West Virginia Legislature this year added an extra $14 million to the infrastructure council’s budget.

    The council has distributed more than $2.5 billion for 600 public works projects and 100 economic development projects since 1994.

    State closes fiscal year the strongest since 1970s, without tax increases
    West Virginia closed its fiscal year June 30 with about $300 million more in general revenue than expected and did not rely on tax increases to do such. State law dictates that half of any surplus goes into a special reserve fund to accommodate potential future budget deficits.

    Most of the remaining surplus goes toward state retirement programs, which for years have been underfunded. With this year’s boost, Gov. Joe Manchin and lawmakers will have put an extra $900 million into the pension funds since 2005. Manchin said the revenue boost is further proof that West Virginia’s business climate is changing.

    State Small Business Development Center helps 100-plus clients in July
    The West Virginia Small Business Development Center (SDBC) provided more than 2,700 hours of counseling to 112 clients last month, helping to create or retain 77 jobs. The SDBC has provided more than 10,000 hours of counseling to 1,600 clients since last October, helping to create or retain almost 900 jobs. SDBC staff trained 133 people at 20 events in July and trained more than 3,000 people this fiscal year. Out of eight loans totaling nearly $1.8 million approved in June, three were Small Business Administration loans totaling nearly $420,000. Out of 143 loans totaling $24.5 million approved year-to-date, 69 are SBA loans totaling $11.8 million. New customer satisfaction was 100 percent in July and for the year.

    New shell building at Wayne County industrial park to bring 50 new jobs
    At its July meeting, the Infrastructure and Jobs Development Council (IJDC) approved an economic development loan of up to $660,000, with West Virginia Economic Development Authority funding of $682,000 and private financing of $560,000, to build a 40,000-square-foot shell building at the Prichard Industrial Park (Wayne County). The project will allow for the creation of 50 new jobs in steel fabrication and distribution, with projections to expand the shell building and increase employees within three years.

    The IJDC also approved a $55,000 loan to the Wyoming County Economic Development Authority to fund the Intermediary Relending Program, which makes West Virginia more competitive in securing federal USDA-RD funds for small businesses.

    West Virginia showcases its specialty food makers at New York show
    The West Virginia Development Office joined the West Virginia Department of Agriculture and West Virginia State University in early July to sponsor a West Virginia Pavilion at the 52nd Summer Fancy Food Show in New York. Seven companies from across the state exhibited and provided samples of their products for the show, which attracted 24,000 attendees and 2,200 exhibitors.

    This is the second year the two state agencies have sponsored the pavilion and the largest contingent from the state ever to attend such a show. Companies that participated included Blue Smoke Salsa of Ansted; Custard Stand Food Products of Webster Springs; DeFluri's Fine Chocolates of Martinsburg; East Meets West dba Lui Lui of Vienna; Poochie's Choice of Morgantown; Thistledew Farm dba West's Best Products of Proctor; and Uncle Bunk's of Sisterville. Vita Specialty Foods of Inwood also exhibited in the international section of the show.

    West Virginia displays its aerospace pedigree at U.K. airshow
    Officials from the West Virginia Development Office, the West Virginia High Technology Consortium Foundation and the Mid-Atlantic Aerospace Complex sponsored an exhibit at the Farnborough International Airshow in England on July 17-23. The exhibit showcased West Virginia as a lucrative location for aerospace-related industry and promoted the products of five participating West Virginia companies: Azimuth, FMW Composite Systems, Innovative Response Technologies, FCX Systems, and PowerSonix.

    More than 1,480 companies from 35 countries exhibited at Farnborough, one of the world’s largest aerospace industry events.

    Local, state development officials learn how to attract automakers
    West Virginia Development Office joined local economic development representatives from the Charleston Area Alliance, Corridor G Regional Development Authority, HADCO, Lincoln Economic Development Authority and the Putnam County Development Authority at the Southern Economic Development Council (SEDC) Automotive/Logistics Seminar July 24-26, 2006 in Louisville, Ky. Attendees said they learned more about the growth of automotive supplier and distribution/logistics sectors and explored successful marketing strategies of southern states.

    Speakers included experts from leading site selection firms and industry representatives from world-class automotive manufacturers and suppliers.

    Corridor H construction clears another hurdle with $50 million contract
    Gov. Joe Manchin in late July announced the awarding of the second-largest highways contract in the history of the state Division of Highways – a five-mile segment of Corridor H in Hardy County. This segment reaches the Grant County line and is another major step toward the growth and development of West Virginia’s business and tourism infrastructure. About 61 miles of the highway are finished and 61 of the remaining 71 miles are in various planning phases.

    When complete, the four-lane Corridor H will provide quick and easy access to interstate highways in Virginia that connect to metropolitan Washington. The route traverses some of the most dramatic and beautiful scenery in the East and was made possible through funding established by U.S. Sen. Robert C. Byrd.

    Small Business center launches entrepreneurial training program
    The West Virginia Small Business Development Center (WVSDBC) this month launches a statewide NxLeveL training program to help small business owners start, grow and manage their businesses. WVSBDC Director Conley Salyer said the program works best in rural states and has proven to increase sales for small businesses that have participated an average of 28 percent.

    More information is available at www.sbdcwv.org or by calling 1-888-982-7232.

    LOCAL DEVELOPMENT NEWS

    Business booming at Beckley airport park
    More and more businesses are growing or relocating to Beckley’s Raleigh County Memorial Airport industrial park, according to airport officials. W.C. Hydraulics is expanding its workforce of 40 and recently moved from a 15,000-square foot facility to a 55,000-square-foot operation at the airport.

    Three major out-of-state companies moved into the airport park. A medical clinic and a child care development center soon will be on-site for employees who work at the industrial center.

    Airport Manager Tom Cochran said in addition to the industrial park growth, they are building two new taxiway sections on the airport’s primary runway to improve safety and speed access for smaller aircraft, as well as renovating the main terminal. He said commercial flight enplanements are up 34 percent over last year.

    Developer gets go-ahead for 1,600-home development in Eastern Panhandle
    The Berkeley County Planning Commission in early July approved the plat for the first phase of The Villages at Rolling Hills, a 1,600-home subdivision on 361 acres that likely will be the largest such development in the county. The developer plans to donate 20 acres within the project for a high school, five acres for an emergency services station and a community center with tennis courts.

    CORPORATE NEWS

    Martinsburg aircraft company continues to add jobs
    Texas-based Sino Swearingen Aircraft Corp. Chief Financial Officer Kelly Simmons said payroll at its Martinsburg facility had risen to 260 employees by early July, an increase of nearly 40 percent. That’s on track with the company’s plan to employ 400 by the end of next year.

    Sino recently announced an expansion of its production facility in San Antonio, which should increase need for more workers in Martinsburg as planes roll off the assembly line there. Bill Walkup, manager of the Eastern West Virginia Regional Airport park that houses Sino’s West Virginia operation, said the company has a lease on an additional 30 acres of land ready for future additions.

    Greenbrier ‘bunker’ literally open for business and tourism
    White Sulphur Springs’ five-diamond Greenbrier Resort in July reopened the Cold War-era congressional relocation “bunker” to hotel guest tours after a two-year renovation that converted former emergency dormitories to high-security data and document storage “white space” for lease to corporations.

    The concrete-walled, blast door-equipped underground compound is ideal for secure data storage, said Larry Mazey of CSX Intellectual Property Inc., which operates the storage facility. Mazey said seven companies are on the waiting list for the sold-out space.

    As for tourists, the $30 public tours begin Aug. 20. A new museum-quality interpretive center preserves some of the former government relocation facility’s bunks, medical and communication equipment, photographs and now-declassified documents that tell the story of the Cold War and the facility’s purpose.

    United Bank declares stockholder dividends for 33rd straight year
    United Bankshares Inc. has declared a third-quarter dividend of 27 cents per share, a 4 percent increase over the 26 cents paid out in the same quarter a year ago. United said it is the 33rd consecutive year of dividend increases.

    United Bankshares is the largest bank holding company headquartered in West Virginia. The company has $6.7 billion in assets and operates 90 full-service offices in West Virginia, Virginia, Maryland, Ohio and Washington, D.C.

    Five state projects among top 100 investments in the South this year
    Five West Virginia projects were among the largest corporate investments in the South, according to Southern Business & Development magazine’s annual ranking of the top 100 corporate job and investment announcements. AEP’s $1 billion investment in its John Amos plant in Putnam County was fifth on the list. Other investments by International Coal, Mountain State Carbon, Toyota and BPB NA will total an additional $580 million and create 900 jobs in West Virginia.

    According to the magazine, major corporate announcements are the best measure of a state’s or market's willingness and ability to accommodate companies. The annual Top 100 ranking gives critical insight into areas of the region that could become a home for companies.

    United Hospital Center breaks ground on $278 million Bridgeport facility
    Gov. Joe Manchin joined officials from United Hospital Center to break ground on a 289-bed, $278 million hospital in Bridgeport, which is expected to open in fall 2009. The nearly 700,000-square-foot hospital will be more than a third larger than the current Clarksburg hospital and create nearly 600 construction jobs.

    “It’s a big day for West Virginia and north-central West Virginia,” Manchin said. “With the growth that is going on here, people need quality health care.”

    Construction set to begin on Mineral County hospital
    Construction is set to begin on the new Potomac Valley Hospital in Keyser after officials broke ground for the 48,000-square foot facility that will replace the existing 25-bed hospital built in 1931. While the floor size will remain about the same as the existing facility, the new hospital in Keyser will provide higher levels of care to the community, said Harold McBee Jr., the hospital’s sole proprietor.

    The hospital should be complete within 14 to 18 months, McBee said. Community leaders are working to find a use for the existing building. Mineral County commissioners earlier this year approved a Tax Increment Financing district to cover construction costs for highway and utilities leading to the hospital.

    International Coal Group opens its Putnam County headquarters
    West Virginia’s eighth-largest coal company in July moved from a leased building in Ashland, Ky., to a new $8 million headquarters building just off I-64 in Putnam County near Scott Depot. ICG President and CEO Ben Hatfield said the company moved to West Virginia to be more centralized among its operations, and it plans to expand at the corporate and operations levels.

    The company has five mines in West Virginia and plans to have five more by 2010. A Beckley facility set to operate in 2007 will bring about 100 jobs next year and 200 by 2008. “We’ve allowed for some significant growth,” Hatfield said. “This company has a strong development plan over the next five years.”

    Auto parts maker celebrates expansion and 10 years in West Virginia
    Diamond Electric, which makes automotive ignition coils for Toyota, Chrysler and Ford, on July 31 celebrated its 10th anniversary in West Virginia and its third major expansion since it opened in 1997. Since it started with five workers, the company has grown from a 30,000-square-foot facility and one automaker customer to nearly 200 employees, three major carmakers and a 112,000-square-foot facility.

    David Bagnall, Diamond’s director of community relations, said the company likes to locate in smaller communities such as Eleanor. “Absolutely the best move and best decision our company has made is to locate in West Virginia. Our work force is excellent and we’ve had a really low turnover rate, which is so important in manufacturing.”

    Pennsylvania engineering firm opens Wheeling office
    C.M.E. Engineering of Pennsylvania opened a Wheeling office in the Heritage Port Business Center. The company, which will start with five area professionals, hopes to expand to about 25 Wheeling workers, said C.M.E.’s Wheeling project director Farley Wood. The company mainly works in the mining industry, but also has expertise in environmental engineering and sees opportunities for developing abandoned industrial sites for other uses, Wood said.

    TOURISM NEWS

    New River Gorge Bridge named among country’s top 10 structures
    Roads and Bridges magazine named West Virginia’s New River Gorge Bridge one of its 10 Top All-Time Bridges, “a look at some of the most-heralded monuments to design, engineering and construction technique ever built.”

    West Virginia’s U.S. 19 masterpiece was listed among heavyweights such as the Brooklyn Bridge and the Golden Gate Bridge. In 2005, the New River Gorge Bridge was the featured image on West Virginia’s commemorative quarter. It is the longest single-span arch bridge in the Western Hemisphere and the second-highest in the United States.

    Rafting company uses innovative, environmentally friendly sewage system in its expansion West Virginia’s Class VI whitewater rafting outfitter, along with state environmental protection officials dedicated a high-tech environmentally friendly wastewater treatment facility that allowed the outfitter to build new cabins without disturbing surrounding woodland. Typically, decentralized wastewater facilities for such projects require large amounts of open land for septic tanks and leach beds, but this new system incorporates special filters and ultraviolet light to clean the water.

    “It’s inspiring to see successful businesses like Class VI whose leadership weighed development against the environment and both sides managed to win,” said DEP Secretary Stephanie Timmermeyer.

    NEW DEVELOPMENT LOANS

    Economic Development Authority approves $3 million in loans

    • FMW Composite Systems will receive a $1.5 million loan to purchase a shell building in the Preston County Industrial Park. FMW produces titanium matrix composites (TMC), an engineered material system that uses silicon carbide fiber in a titanium matrix to match the strength and stiffness of steel at half the weight. The Preston County facility will be the manufacturing site for TMC. Current employment: 46; after one year: 55; after three years: 78.
    • Hughes Supply Co. will receive a $400,000 loan to acquire a six-acre Raleigh County site on which a 12,900-square-foot office building and a 4,160-square-foot showroom is situated. Hughes Supply Co. is a manufacturer of electrical and communication products for the mining industry. The company operates out of Morgantown, Beckley and Pax, and this project will consolidate the Beckley and Pax facilities into one location. Current employment: 24; after one year: 28; after three years: 36.
    • Hammack Enterprises received final approval of an amended $720,000 loan application to finance a 48,000-square-foot building on 1.6 acres in Nitro, Putnam County. Hammack acquired the pipe and valve machining and fabricating operation of McJunkin Corp. The original project was the financing of a 36,000-square-foot building. Current employment: 40; after one year: 42; after three years: 47.
    • S.J. Morse Co. received preliminary approval for a $299,475 loan to expand its existing Hampshire County facility by financing a 4,800-square-foot metal building, and to purchase and install new, specialized machinery. S.J. Morse Company incorporated in 1979 and has been at its current location in Capon Bridge since 1987. Current employment: 17; after one year: 19; after three years: 24.

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