id-Atlantic states are off to a running start at the midpoint of 2003 with new biotech projects, distribution centers, headquarters relocations and knowledge economy companies leading the way with new facilities and expansions in Virginia, Pennsylvania, Maryland and Delaware. Proximity to the nation's capital is also driving firms specializing in security products to the metropolitan Washington, D.C., area.

Virginia Lighting Up First Half of '03

The largest cigarette maker in the U.S. is moving its corporate headquarters from New York City to Richmond over the next year. Philip Morris USA, the U.S. tobacco subsidiary of the Altria Group, says it will save US$60 million annually by moving south.
        "This move will help to streamline our business operations, increase efficiencies and delivery significant cost savings in the long run," says Michael E. Szymanczyk, chairman and CEO of Philip Morris USA. The company will move gradually, anticipating completion by June 2004.
        Philip Morris will occupy office space owned by the University of Richmond that is the former home of the Reynolds Metal Co. The move will bring 450 jobs to Richmond.
        In addition, Philip Morris, already with 6,800 employees in the region, plans to invest more than $300 million in its Richmond manufacturing facility.
        Philip Morris USA qualifies for a $25-million performance-based grant from the Virginia Investment Partnership (VIP) Program, which offers financial assistance to existing Virginia companies proposing significant expansion projects. The company also qualified for additional tax credits through the Virginia Dept. of Housing & Community Development because the site is in a newly expanded enterprise zone jointly occupied by the City of Richmond and Henrico County.

Virginia Gov. Mark Warner (left) and Professor Rolf Krebs, chairman of Boehringer Ingelheim Corp., talk at the company's German headquarters. The company will spend $260 million over the next eight years to expand its operations in Petersburg, Va.

        In what state officials are billing as the largest single investment in Petersburg history, Boehringer Ingelheim Corp. of Ingelheim, Germany, will invest up to $260 million over the next eight years at its subsidiary, Boehringer Ingelheim Chemicals. The expansion ties to product milestones that could also boost employment by 165. Boehringer Ingelheim Chemicals produces active pharmaceutical ingredients for its parent company and for other pharmaceutical companies worldwide.
        "This expansion adds to our site another world-class active pharmaceutical ingredient manufacturing facility," says Dr. Anthony J. Corso, president and COO of Boehringer Ingelheim Chemicals.
        Gov. Mark. R. Warner approved a $1.75-million grant from the Governor's Opportunity Fund. Boehringer Ingelheim ranks among the 20 leading pharmaceutical corporations in the world and posted sales of $7.2 billion in 2002.
        Continuing with the pharmaceutical theme, Grayson County, in Southwest Virginia, will be the site of a marketing call center and distribution facility for newly formed Harvest Pharmaceuticals. The company will make a $3.3 million investment.
        In Chesapeake, Visteon Corp. opened a 73,000-sq.-ft. (6,781-sq.-m.) manufacturing and assembly facility to support the manufacture of the new Ford F-150 pickup truck. The plant, which will employ 75, will manufacture plastic fuel tanks and fuel delivery systems to be sent to Ford's factory in nearby Norfolk.
        "Locating in Chesapeake will allow us to efficiently deliver the highest quality products while enabling us to contribute to the economic vitality of the local communities," says Tom Burke, vice president of North America & Asia Manufacturing Operations for Visteon.