FOR IMMEDIATE RELEASE
May 3, 2023
Leading power transformer manufacturer to invest $30.2 million to increase capacity in the City of Lynchburg, creating 149 new jobs
LYNCHBURG—Governor Glenn Youngkin today announced that Delta Star, Inc., the largest, American-owned medium transformer manufacturer in the United States and the premier manufacturer of mobile transformers in North America, will invest $30.2 million to expand its manufacturing and headquarters operation in the City of Lynchburg to service its mobile transformers and increase production capacity. To accommodate the expansion, the company will move its headquarters and office functions to a new 80,000-square-foot facility adjacent to the manufacturing plant located at 3550 Mayflower Drive. Virginia successfully competed with California and Pennsylvania for the project, which will create 149 new jobs.
“Supporting the growth and expansion of our City’s companies, especially growing jobs in strategic markets, is the number one priority of our economic development efforts in the City of Lynchburg,” said John Stone, Chair of the Economic Development Authority of the City of Lynchburg. “The City of Lynchburg, with our partner the Lynchburg Regional Business Alliance, and our citizens, are stronger because employers like Delta Star, headquartered in our City, choose to grow here. We are immensely proud to support their investment in the City of Lynchburg.”
Founded in 1908, Delta Star is an employee-owned company, recognized as an industry leader in pursuit of continuously improving the performance, delivery, and reliability of power to meet the energy needs of the future. Delta Star established its Lynchburg facility in 1962, and eventually moved its corporate headquarters to the plant. The company’s more than 915 employees are committed to providing peace of mind through reliably connecting people in communities throughout North America to one of life’s most basic needs – electricity. The Lynchburg facility employs more than 460.
“Delta Star has a proven track record of success and longevity in the City of Lynchburg, through which we have built a strong partnership to support and further local investment,” said Marjette Upshur, Director of Economic Development & Tourism. “We are thrilled to be able to support this major expansion with Delta Star, by investing in a new 80,000 square-foot production facility and new equipment, creating 149 new jobs in the City of Lynchburg.”
The Virginia Economic Development Partnership worked with the City of Lynchburg and the Lynchburg Regional Business Alliance to secure the project for Virginia. Governor Youngkin approved an $850,000 grant from the Commonwealth’s Opportunity Fund to assist the City of Lynchburg with the project. Delta Star is eligible to receive state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development.
“I am thrilled that Delta Star has chosen Lynchburg for their expansion,” said City of Lynchburg Mayor Stephanie T. Reed. “Employers that choose to invest in the City of Lynchburg signify that the City is business-friendly, workforce-ready, and eager to partner to grow our already strong business climate. Delta Star is a valued corporate citizen in the City of Lynchburg and we look forward to many more prosperous years of partnership.”
Support for Delta Star’s job creation will be provided through the Virginia Talent Accelerator Program, a workforce initiative created by VEDP in collaboration with the Virginia Community College System and other higher education partners, with funding support from the Governor’s administration and the Virginia General Assembly. Launched in 2019, the program accelerates new facility start-ups through the direct delivery of recruitment and training services that are fully customized to a company’s unique products, processes, equipment, standards, and culture. All program services are provided at no cost to qualified new and expanding companies as an incentive for job creation.
The project will invest $30,150,000 ($15 million for building improvements, $5.3 million for machinery and tools, and $9 million in furniture, fixtures & equipment and $850,000 for private land improvement) for an 80,000-square-foot building expansion within 36 months. The project will create 149 new jobs while retaining 460, with an average annual salary of $67,450 (with benefits).
The Economic Development Authority has informally agreed to match the Commonwealth’s investment through their Capital Investment and Job Creation program. Funds will be formally approved and encumbered through a performance agreement, based on verified investments.
To see the full press release from Governor Youngkin’s office click HERE.
Office of Economic Development & Tourism