German manufacturer to locate its North American headquarters in the former General Electric building in Salem
SALEM, VA – Representing $32 million in investment, STS Group AG, a leading global supplier of interior and exterior parts for commercial and personal vehicles, will establish its North American headquarters in the City of Salem in the former General Electric building, adding 119 jobs to the region.
The facility will be operated as subsidiary, STS Group North America, and its presence contributes to the region’s strong automotive manufacturing cluster. The new facility will supply commercial truck assembly operations and automotive facilities throughout the Midwest and Southeastern U.S. markets. STS Group AG is working with Phoenix Group, the owner of the former General Electric building, to upfit roughly 200,000 square feet of the existing space and to construct a 32,000-square-foot addition on the north end of the building.
“Salem is a perfect base for STS Group to start its footprint in the USA, following existing customers locally and extending the customer portfolio,” stated Alberto Buniato, CEO of STS Group. “On top of a perfect existing location in a suitable industrial cluster, we were delighted to find a very attentive and helpful support with the City of Salem, with Roanoke Regional Partnership, and with Virginia Economic Development Partnership.”
“We welcome STS to Salem and Virginia’s Blue Ridge Region, and I am confident this high-tech facility and its new locally trained workforce will prove to be the perfect fit for the area and a thriving success for years to come,” said Mayor Renée F. Turk. “It took an exceptional commitment and a great deal of innovative thinking from the City of Salem, regional, and state economic development staff members and leaders to make this venture a reality.”
“We are excited to have the opportunity to work with STS Group and to welcome this company to our diverse automotive manufacturing cluster,” said John Hull, executive director of the Roanoke Regional Partnership. “STS Group effectively adds a new product to the regional supply chain related to automotive and heavy truck manufacturing and further solidifies the regional value proposition for auto-related manufacturing.”
STS Group AG, headquartered in Hagen, Germany, represents the seventh foreign-owned company and fifth nation in the Salem manufacturing community. The company, founded in 2013, has 14 manufacturing facilities in four countries and three continents.
STS Group worked with City of Salem, Roanoke Regional Partnership, and Virginia Economic Development Partnership (VEDP) in support of the project. The company will receive local assistance with financing, and Governor Youngkin approved a $500,000 grant from the Commonwealth’s Opportunity Fund to assist the City of Salem with the project. In addition to the initial job creation and investment, the Roanoke Regional Partnership projects an annual economic impact of $66 million in the Roanoke Region from the project, adding an additional 61 indirect and induced jobs.
An investment in a greenfield project in Wythe County had been previously announced. Faced with escalating costs of construction, company officials reevaluated the project and identified an existing building to serve the project’s needs. Communication was established with Wythe County officials to ensure state and local interests were maintained during the transition. The City of Salem and Roanoke Regional Partnership worked closely with company officials, VEDP, and with Phoenix Group, who was represented by Colliers, to retain the investment in Virginia and to secure it for the Roanoke Region and City of Salem.
Support for STS Group North America’s job creation will be provided through the Virginia Talent Accelerator Program, a workforce initiative created by VEDP in collaboration with the Virginia Community College System and other higher education partners, with funding support from the Governor’s administration and the Virginia General Assembly. Launched in 2019, the program accelerates new facility start-ups through the direct delivery of recruitment and training services that are fully customized to a company’s unique products, processes, equipment, standards, and culture. All program services are provided at no cost to qualified new and expanding companies as an incentive for job creation. STS Group is already hiring for the Salem plant, and interested applicants can visit https://www.adlerpelzer.com/career to view open positions and apply.
STS Group AG, www.sts.group (ISIN: DE000A1TNU68), is a leading system supplier to the automotive industry. It employs more than 1,500 people worldwide and generated sales of 235 million EUR in 2021. STS Group (“STS”) produces and develops injection molding and components made of composite materials (Sheet Molding Compound – SMC), such as solid and flexible vehicle and aerodynamic trim, entire interior systems, as well as lightweight construction and battery components for electric vehicles. STS is considered as a technology leader in the manufacture of plastic injection molding and components made of composite materials. STS has a large global footprint with 14 plants in three continents. The customer portfolio comprises leading international manufacturers of commercial vehicles, passenger cars, and electric vehicles.
ABOUT ROANOKE REGIONAL PARTNERSHIP
The Roanoke Regional Partnership, founded in 1983, is the public-private economic development marketing and strategy organization supported by Alleghany, Botetourt, Franklin, and Roanoke Counties, the Cities of Covington, Roanoke, and Salem, and the town of Vinton as well as more than 200 businesses. The organization has worked with its partners to create more than 19,000 primary jobs and $19 billion in investment by attracting companies such as Orvis, Altec, McAirlaids, Bimbo Bakeries, Cardinal Glass, Balchem, Eldor, Mack Trucks, Traditional Medicinals, Constellation Brands and others to the region.