Virginia�s Roanoke Valley Earns Reputation as Automotive Hot Spot

Plant Expansions, Nearby Research Help Region Score "America�s 50 Hottest Cities" Distinction

ROANOKE, Va.  (April 2, 2007) – Draw a line from Virginia’s Roanoke Valley to any major automaker in the U.S. and you’ll understand why the region has emerged as an automotive manufacturing mecca. Located in virtual center of the “golden triangle”—within a day’s drive of Michigan, Kentucky, and South Carolina—the Roanoke Valley is ideally positioned along the I-81 corridor in western Virginia that is now home to nearly 30 Tier 1 and Tier 2 automotive and transportation parts manufacturers, as well as the nation’s top test bed for automotive research at Virginia Tech.

Named one of “America’s 50 Hottest Cities” for 2007 by Expansion Management magazine, the Roanoke area’s manufacturing employment leapt by 7.4 percent for the year ending with the first quarter of 2006, fueled by expansions in the automotive and transportation sector. Five of the region’s top automotive companies have expanded in the last four years, investing more than $90 million in the region’s economy.

Among the lead players on Roanoke Valley’s automotive scene:

• JTEKT Automotive Virginia (formerly Koyo Steering), whose parent company’s merger with Toshida Machine Works, Ltd. in 2006 made it one of the world’s largest manufacturers of steering assemblies and bearings. JTEKT Automotive Virginia ’s electronic power steering system, used in many fuel efficient vehicles, including Chevy Cobalt and HHR, the Pontiac Solstice, and Saturn’s SKY, VUE and ION, increases gas mileage, is more responsive, installs faster at the assembly line, and is environmentally friendly than old hydraulic models.

Dynax America Corporation recently completed an $11.7 million expansion that added 52 new jobs to area rolls to the 278 people at its Botetourt County plant, where it manufactures clutch discs, driven plates, clutch packs, and torque converter pistons for automatic transmissions of popular Mazda, Nissan and Ford models.

• Altec Industries Inc., which acquired 14 additional acres of land to expand its manufacturing and final assembly facility in Botetourt County. The $3 million expansion added 100 new jobs at the company, which assembles bucket trucks and digger derricks for the utility, telecommunications and tree-care industries.

These newest companies join an already established transportation cluster that includes:

• Yokohama Tire, one of the nation’s top manufacturers of tires for passenger vehicles, SUVs, and light trucks.
• Virginia Forge Co., producer of steel forgings used in the wheel hub structure automobiles and light trucks which recently completed a $36 million expansion that doubled its production capacity.
• Metalsa Roanoke, manufacturer of heavy truck frame rails and supplier to Volvo trucks
• South Star Corporation, producer of automotive wiring harnesses.
• Cardinal Rubber & Seal, Inc., producer of hydraulic, rubber and plastic hoses, belting and packing materials.

Pairing rapid industrial growth with the research and development capabilities of the Virginia Tech has resulted in one-stop shopping for east coast automakers. The Virginia Tech Transportation Institute and the Smart Road, a full-scale research facility for pavement research and evaluation of Intelligent Transportation Systems (ITS) concepts, technologies, and products, combine to offer much of the nation’s top field research for the industry.

“A combination of factors has resulted in dramatic growth in the automotive sector in the past five years,” said Anne D. Piedmont, communication director for the Roanoke Valley Economic Development Partnership, the region’s industrial marketing and recruitment agency.  “Our location gives us easy access to all major east coast markets, we have the right package of trained workforce and R&D, and Virginia believes in business.”  A right-to-work state, Virginia’s incentive packages, favorable tax rates and reasonable utilities contribute to the area’s allure, says Piedmont.

The growth of the transportation industry here builds on the Roanoke Valley’s long history as a transportation center.  For decades Roanoke served as the headquarters of the N&W Railway and was the hub of five of its mainline routes.  The powerful locomotives that transported passengers and goods were built in the massive Roanoke shops that continue to support a strong rail presence.

“What made the Roanoke Valley attractive to the railroad is the same reason it’s attractive to Tier 1 and Tier 2 auto-parts suppliers:  our location and the availability of the infrastructure needed to support this industry,” said Piedmont.

The Roanoke Valley Economic Development Partnership markets the counties of Alleghany, Botetourt, Craig, Franklin, and Roanoke; the cities of Covington, Roanoke, and Salem, and the Town of Vinton to new and expanding industry.  Since its inception in 1983, the Partnership has assisted expansions and locations representing more than $1.2 billion in new investment and more than 13,400 direct new jobs.