STIHL Inc., headquarters for US operations of the worldwide STIHL Group, is expanding its Virginia Beach, Virginia, facility with an investment of more than $25 million in a new administration building and other campus improvements. Construction of the state-of-the-art, 80,000-sq.-ft. (7,500-sq.-m.) facility is “part of the company’s commitment to continual investment in infrastructure projects in support of growing US operations,” according to a company release. The new building will combine the Sales & Marketing, Finance & Controlling, Legal, and Customer & Technical Service teams under one roof. It will also house a brand experience and customer welcome center. The groundbreaking is set for early 2018, with a move-in date in 2019.
“STIHL Inc. has enjoyed strong year-over-year growth in our sales as well as our manufacturing operations,” said Bjoern Fischer, president of STIHL Inc. “While the current structure has served us well for the last 40-plus years, the new building will improve administrative operational efficiency allowing us to better serve our network of 9,000 independent servicing dealers and their customers.”
Since its inception in 1974, the Virginia Beach STIHL Inc. facility has grown from a single, 20,000-sq.-ft. (1,860-sq.-m.) rented warehouse, to more than 1 million sq. ft. (93,000 sq. m.) of manufacturing and administration space on more than 150 acres (61 hectares). This growth, according to the company, has been strongly supported by STIHL’s positive, longstanding partnership with the City of Virginia Beach.
“The City of Virginia Beach has been an ideal business partner,” stated Fischer. “For over 40 years the city has continued to create a positive economic environment for manufacturers like STIHL, supporting our continued growth and expansion.”
The Virginia Beach Development Authority has awarded STIHL Inc. an Economic Development Investment Program grant in the amount of $500,000 based on the $20-million capital investment in the administration facility. Additional investments being made are not included in this grant award.