Starsprings to invest $3.7 million to establish first U.S. manufacturing operation
Governor Terry McAuliffe announced today that Starsprings, a privately-held spring and spring-unit manufacturer based in Sweden, will invest $3.7 million to establish its first U.S. manufacturing operation in Henry County. The company will supply mattress units used in long-distance trucking. Virginia successfully competed against North Carolina and Pennsylvania for the project, which will create 68 new jobs.
Speaking about today's announcement, Governor McAuliffe said, "This win is a great example of the kind of project we are trying to attract as we build a new Virginia economy. When an international company chooses Virginia as its entry point into the U.S. market, it is a strong testament to the competitiveness that sets the Commonwealth apart and the major companies here that attract suppliers. We are proud to add Starsprings to our corporate roster, and welcome 68 new, much-needed manufacturing jobs to Henry County."
"Starsprings is another international manufacturing business that has decided to establish operations in Virginia as a result of its assessment of our outstanding talent, infrastructure and great quality of life," said Secretary of Commerce and Trade Maurice Jones. "We continue to attract companies from all over the globe, and the creation of new jobs in the manufacturing sector is great news for Henry County, the region and the Commonwealth as a whole."
Starsprings, headquartered in Herrljunga, Sweden, is the leading manufacturer in Scandinavia of spring units for excellent bed and seat comfort, with operations in Sweden, Brazil, and Poland. The company was started in 1918 and began manufacturing springs for the bedding industry in 1937. Starsprings also develops mattresses and other components used in heavy trucks.
"Some current Starsprings customers have operations in the eastern U.S., and for that reason we see good potential in being present to maintain a high service level and continue to grow in the global marketplace," said NilsEric Stjerna, CEO of Starsprings. "Starsprings chose Virginia to establish the new operation because the strategic position will keep us close to our major customers, and we have received excellent support from Virginia Economic Development Partnership and the Martinsville-Henry County Economic Development Corporation during the entire evaluation period."
The Virginia Economic Development Partnership worked with the Martinsville-Henry County Economic Development Corporation to secure the project for Virginia. Governor McAuliffe approved a $100,000 grant from the Governor's Opportunity Fund to assist Henry County with the project. The Virginia Tobacco Region Revitalization Commission approved $220,000 in Tobacco Region Opportunity Funds. The company is eligible to receive state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development. Starsprings will also receive benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program. Funding and services to support the company's employee training activities will be provided through the Virginia Jobs Investment Program.
"Henry County is thrilled to welcome Starsprings to the community," said Henry County Board of Supervisors Jim Adams. "This is a terrific way to kick off 2016."
"The Tobacco Commission welcomes Starsprings to Henry County," said Delegate Danny Marshall, a Commissioner of the Virginia Tobacco Region Revitalization Commission. "We are pleased to provide $220,000 in Tobacco Region Opportunity Funds to help establish 68 new jobs for the region. It will be a great partnership—pairing an experienced, successful manufacturer from Sweden with the experienced, enthusiastic manufacturing workers from Southside Virginia. It's a win-win."
"Starsprings made a strategic decision to establish is first U.S. manufacturing operation in Virginia, and The Port of Virginia, among other factors, played a role in the final determination," said John F. Reinhart, CEO and executive director of the Virginia Port Authority. "Companies want to be near a logistics hub, they want available, skilled labor and want to be in a positive business environment. It is these kinds of investments that are helping to drive the New Virginia Economy."
Since the beginning of the McAuliffe administration, 561 economic development deals have been closed in Virginia with more than $9.27 billion in capital investment, which is more than any previous governor in the first 24 months in office.