VA: Continental to Invest $150M to Expand, Add 500 Jobs in Newport News
27 Aug, 2014
Governor Terry McAuliffe announced Continental, a leading international automotive supplier, will invest approximately $150 million to expand its operation in the City of Newport News. The investment will start up turbocharger production and increase production of Continental’s gasoline high pressure injector, fuel rail and pump assembly lines. This is the first time Continental plans to produce turbochargers in the U.S. Virginia successfully competed against Mexico for the project, which will create approximately 500 new jobs.
Speaking about the announcement, Governor McAuliffe said, “Outcompeting other states and countries for high-tech manufacturing projects is key to building a new Virginia economy. Continental has been an outstanding corporate partner to the City of Newport News for more than 40 years, and I am eager to help the company expand further to capitalize on Virginia’s outstanding business climate, our world class workforce and the unrivaled access to global markets that Newport News offers through the Port of Virginia. We thank the company for this significant investment and the creation of hundreds of new jobs in Newport News.”
“This level of investment demonstrates Continental’s solid commitment to Newport News and Virginia, and the future longevity of the operation,” said Maurice Jones, Virginia Secretary of Commerce and Trade. “This project and the hundreds of new jobs represent great progress in our efforts to diversify Virginia’s economy and create jobs of the future.”
Continental is one of the world’s leading automotive suppliers. As a provider of brake systems; systems and components for powertrains and chassis; instrumentation; infotainment solutions; vehicle electronics; tires; and technical elastomers; Continental contributes to enhanced driving safety and global climate protection. Continental is also an expert partner in networked automobile communication.
“As one of Continental’s global Lead Plants and Centers of Expertise for powertrain technology, the Newport News manufacturing facility is an essential part of our overall business strategy as we look to grow business here and leverage some of the region’s best talent,” said Jeff Klei, President, Continental North America. “Thanks to the generous support of state and local officials, we are pleased to make an investment that plans to introduce the assembly of turbochargers to North America and increase our overall production of powertrain technologies in Newport News.”
The Virginia Economic Development Partnership worked with the City of Newport News and the Port of Virginia to secure the project for Virginia. Governor McAuliffe approved a $2 million grant from the Governor’s Opportunity Fund to assist Newport News with the project. The Governor also approved a $4 million performance-based grant from the Virginia Investment Partnership program, an incentive available to existing Virginia companies. The company will receive benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program. Additional funding and services to support the company’s employee training activities will be provided through the Virginia Jobs Investment Program. The company is eligible to participate in the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development, and will also be eligible for Sales and Use Tax exemptions on manufacturing equipment.
“We are delighted that Continental, an international powerhouse of innovation, has decided to expand its operation in Newport News,” said McKinley L. Price, DDS, Mayor of the City of Newport News. “Continental’s investment will serve to drive our regional workforce, just as the company’s fuel injection systems propel the engines of its customers around the globe.”
“We’re proud of the City’s long-standing relationship with Continental,” said Florence G. Kingston, Director of Development, City of Newport News. “The company’s trust in our continually-evolving, tech-savvy workforce and our ability to foster a superior business environment prove that Newport News continues to be a destination for advanced manufacturing.”
“This announcement speaks to Virginia’s ability to compete in the global marketplace and create a significant number of jobs as a result,” said John Reinhart, CEO and Executive Director of the Virginia Port Authority. “We are always pleased when a Virginia-based company and current Port customer chooses to reinvest in Virginia and does so, in part, because of the benefits it gets by moving its cargo across the Port of Virginia. We welcome the opportunity to partner with Continental on this expansion by serving as its international trade gateway and by providing funding through the Port of Virginia Economic and Infrastructure Development Grant Program and the Virginia Port Tax Credits.”
Since the beginning of the McAuliffe Administration, 157 economic development deals have been closed in Virginia that will create over 13,806 jobs and over $4.2 billion in capital investment.