By Samantha Smith
Over the past few years, West Virginia’s leaders have been working to create an inviting business environment to attract new companies and create much-needed jobs in the state. Now, thanks to several pro-growth measures, a variety of big-name businesses have announced new facilities and expansions in the Mountain State.
West Virginia has a rich history of attracting global companies. Over the years, corporate titans such as Amazon, Macy’s and Procter & Gamble have set up major operations around the Mountain State, creating thousands of jobs and diversifying the economy. West Virginia has many advantages that attract small companies—which make up more than 98 percent of businesses in the state—as well as major corporations. Those advantages include pro-growth tax reforms, workers’ compensation savings, a low cost of doing business, a quality labor force and a prime location.
Pro-Growth Tax Reforms
One of those advantages was the state’s elimination of its business franchise tax in 2015, saving taxpayers more than $450 million from the first reduction to the final elimination. The state’s corporate net income tax rate was reduced to 6.5 percent in 2014, helping corporations realize more than $53 million per year in net annual tax savings. West Virginia also removed approximately $180 million of business tax burden in Fiscal Year 2014 and more than $660 million over the past eight years. More importantly, West Virginia has not added any new business taxes in the last 20 years.
Workers’ Compensation Savings
Thanks to aggressive pro-business legislation, West Virginia has some of the lowest workers’ compensation rates in the country. In fact, the state recently announced another reduction in workers’ compensation rates, which has collectively saved employers more than $352 million since the fund was privatized in 2006. The workers’ compensation program continues to reduce rates, saving West Virginia employers tens of millions of dollars. Businesses are able to save more, which means they can invest more in their companies and employees.
Low Cost of Doing Business
The Mountain State also has a low cost of doing business and a track record of fiscal responsibility. West Virginia’s cost of doing business is among the lowest in the country and ranked seventh best in the cost of doing business category on CNBC’s America’s Top States for Business 2015 list.
Quality Labor Force
West Virginia workers offer a high work ethic and low turnover rate. Additionally, the Mountain State offers business and industry the opportunity to partner with the community and technical college system to develop specialized education and training programs. Over the last decade, West Virginia’s community and technical colleges have created nearly 150 new customer training programs, many in partnership with local companies and business investors.
Prime Location
Located in the heart of Appalachia, West Virginia offers access to major metropolitan areas, including New York City, Baltimore, Pittsburgh, Charlotte, Raleigh, Columbus, Chicago, Lexington, Atlanta and Washington, DC—without the big city inconveniences. West Virginia’s location puts business and industry within an eight-hour driving distance to half of the U.S. population and a third of the Canadian market. This prime location, coupled with the state’s connections, makes global access easy in West Virginia.
Big Wins for West Virginia
Since the start of 2017, more than $1.5 billion has been invested in the state’s economy through business attraction and expansion. During this same period, more than 4,771 jobs were created or retained.
Among those investments, the Mountain State achieved some commendable successes, specifically in the energy and manufacturing sectors. West Virginia has been able to attract global leaders such as ROCKWOOL and US Methanol. The West Virginia Development Office has also built on its successes with the retention and continued expansions of Addivant, Armacell, Hino Motors Manufacturing USA and Solvay Technology Solutions.
Bidell Gas Compression
First U.S. Manufacturing Operation
At the beginning of February 2017, Bidell Gas Compression decided to make Weirton, WV, the home of its first manufacturing operation in the U.S. Bidell, a subsidiary of the Canadian company Total Energy Services Inc., chose the Mountain State because of its central location to the Marcellus and Utica shales’ regional market. The company will fabricate, sell, lease and service natural gas compression equipment to customers operating throughout North America and the world. The operation will employ around 60 people in highly skilled manufacturing jobs this year and up to 131 by 2019.
Addivant
Multimillion-Dollar Expansion
Near the end of July 2017, Addivant celebrated the completion of a multimillion-dollar expansion of its manufacturing facility in Morgantown, WV. Addivant is a leading global supplier of antioxidants, intermediates and inhibitors; polymer modifiers; and UV stabilizer solutions. This expansion allowed the company to triple the production of the liquid phosphite antioxidant WESTON 705. Addivant’s leadership team decided this expansion should take place at its Morgantown facility because of the already existing partnership with state and local officials and the very technical workforce that had already been developed on-site. That expansion added 15 new jobs to the company’s existing workforce.
ROCKWOOL
New $150 Million Manufacturing Facility
In July 2017, ROCKWOOL announced plans to build a $150 million, 463,000-square-foot manufacturing facility on an estimated 130 acres on the Jefferson Orchards site in Jefferson County. ROCKWOOL is the world’s largest producer of stone wool products. The West Virginia facility will be the second facility ROCKWOOL has opened in the U.S. The Jefferson County plant will produce stone wool insulation for building insulation and customized solutions for industrial applications, acoustic ceilings and other applications. ROCKWOOL chose the West Virginia location due to its access to market and logistics, being located conveniently off I-81. An official groundbreaking ceremony took place in October, and construction is expected to be completed by early 2020. Upon completion, the plant will create up to 150 jobs with positions ranging from management to the production line.
US Methanol
New $85 Million Methanol Production Facility
September 2017 brought more big wins for economic development expansion in the Mountain State. US Methanol broke ground for its new $85 million methanol production facility in Institute in Kanawha County. The company is in the process of disassembling its existing plant in Brazil and will reassemble it in West Virginia. The Liberty One plant will convert natural gas into methanol. US Methanol found the Institute site appealing because of nearby access to barge shipping lanes and rail and truck transportation. The site is near prospective customers such as manufacturers The Chemours Company and Dow Chemical Company. Liberty One is expected to start production this summer and produce approximately 200,000 metric tons of methanol a year. This project will create 55 full-time jobs.
Hino Motors Manufacturing USA
Relocation and $100 Million Expansion
Also in September, Hino Motors Manufacturing USA, a titan in medium-duty commercial truck production, announced plans to expand its truck manufacturing and assembly operations. The company will relocate its operations from its current site in Williamstown, WV, to the former Coldwater Creek facility in Mineral Wells. West Virginia has maintained a positive working relationship with Hino since its first investment in the Mountain State, which dates back to 2007. The company’s leadership touted West Virginia’s workforce and the already developed site as the reason it chose to make another major investment here. The new operation represents a total investment of approximately $100 million. The expansion will create an estimated 250 new jobs by early 2020. The plant in Williamstown currently employs 295 workers.
Solvay Technology Solutions
$70 Million Manufacturing Facility Expansion
October brought the announcement of Solvay Technology Solutions’ commitment to doubling its manufacturing facility at Willow Island in Pleasants County. Solvay is a global multi-specialty chemical company with a history that dates back to 1863. Solvay chose West Virginia over sites in Tennessee, China and France because of the existing investment and strong workforce in the region. This $70 million investment will create as many as 40 new jobs over the next two years. Construction is currently underway and will be completed by mid-2019.
Armacell
Manufacturing Expansion
In November, Armacell announced plans to expand its manufacturing capabilities at its Roane County plant. The expanded production capability will allow Armacell to support its East Coast client base from Spencer, WV. Armacell is a global leader in flexible foam for the equipment insulation market and a leading provider of engineered foams. The company proudly chose to expand in Roane County because of its dedicated workforce. As an added bonus, Spencer had a site to meet the company’s growth needs. The expansion will create 20 new jobs.
As the world around us continues to evolve, West Virginia is working hard to build a more diverse economy. The needs of small businesses and corporations of all sizes remain a priority for the state’s leaders. The West Virginia Development Office works hard to make the process of locating or expanding businesses in West Virginia as seamless as possible.
