aCorridor Headlines

1. Alpha Natural Resources approves Massey merger
   Creating global leader in metallurgical coal supply.
2. American Mine Research begins expansion
   Bland County company will be able to create 10 new jobs.
3. New company begins operations in Bristol
   Start-up WireTough Cylinders to make compressed natural gas cylinders for vehicles.
4. Food City buys JMH building for headquarters
   Company to invest $20.4 million; create/retain 375 jobs.
5. Heartwood Artisan Center now open
   Cultural resources from 19 county, 4 city region
6. Johnston Memorial Hospital opens
   First 'green' hospital in Southwest Virginia
7. From My Perspective...
   An update from Executive Director Tom Elliott.
8. around the aCorridor...
   Financing approved to buy acreage for Wildwood Commerce Park. ABB Bland recognized for safety efforts.

Alpha Natural Resources completes Massey Energy Co. acquisition

Alpha Natural Resources is currently headquartered in Stone Mill Business Park in Abingdon. The company expects to move into a newly constructed facility in Bristol, Va. later this year.

On June 1, Alpha Natural Resources, announced that it had completed its acquisition of Massey Energy Company, creating a premier coal company in the U.S. and a global leader in metallurgical coal supply. Alpha Natural Resources now controls the second largest coal reserve base in the U.S. with approximately five billion tons in the major coal basins of Central and Northern Appalachia, the Illinois Basin and the Powder River Basin. Alpha's diversified assets now include approximately 150 coal mines and 40 preparation plants. Pro forma revenues of $6.9 billion in 2010 also rank Alpha second among U.S. coal suppliers.

"Alpha is now a global industry leader. This combination significantly enhances Alpha's industry position through the inclusion of complementary mining assets and a combined workforce that is 14,000 people strong," said Kevin Crutchfield, Alpha Natural Resources' chief executive officer. "We are now twice the people, with twice the energy, powering the world."

American Mine Research holds groundbreaking for expansion

Senator Phillip Puckett and Linda DiYoria, members of the Virginia Tobacco Commission, present an $800,000 grant check from the Tobacco Commission to Bob Graf, left, President of American Mine Research, and David Graf, Manager of Business Development for AMR, for the company's expansion project. Senator Pucket represents Virginia's 38th Senatorial District and DiYorio is also a member of the Wythe Joint Industrial Development Authority.

 American Mine Research Inc., joined together with the Virginia Tobacco Indemnifaction and Community Revitalization Commission, the County of Bland, and the Bland County Economic Development Authority to host a ground breaking ceremony June 16 for a major expansion project at AMR’s facility in Rocky Gap. The commission’s $800,000 grant along with AMR’s $800,000 match will bring 10 new mechanical and engineering jobs to the area and will help AMR meet the demand for the company’s present product lines as well as its new Mine Net Mesh system — a new generation of wireless communications and monitoring for underground coal mining, accordiing to an article in the Bluefield Daily Telegraph.

David Graf, manager of business development at AMR, said that the new wireless communications AMR has developed allows coal miners to communicate with each other via text messages. In addition to improving communications, AMR is developing other products that will improve safety as well as productivity, according to Graf.

Start-up to manufacture compressed natural gas cylinders for vehicles

Dr. Amit Prakash, President of WireTough Cylinders, talks about his company at the announcement in Washington County June 1. From left, are Russell Owens, Chairman, Washington County IDA; Sen. Phillip Puckett; Ed Rogers, Executive Director, Southwest Clean Energy Research & Development Center; Sen. William Wampler; Del. Joe Johnson; Dr. Prakash; Darcio Giovanetti; Chet Zinnanatti, Plant Manager; and Dulcie Mumpower, Chairman of the Washington County Board of Supervisors.

A new company announced June 1 it was coming to the Bristol-Washington County Industrial Park. WireTough Cylinders LLC, a startup company that manufactures compressed natural gas cylinders for the automotive industry (primarily delivery fleets, work trucks, garbage trucks, school bus fleets), plans to create 18 full-time jobs and $1.6 million in new private investment over 36 months. The company has secured a lease for a section of the building of Zenith Fuel Systems LLC on Industrial Park Road, Bristol, VA and will be receiving a grant from Washington County for $38,000 to assist with start up costs.

In late 2010, the Virginia Tobacco Indemnification and Community Revitalization Commission approved the funding of research and development for WireTough Cylinders allowing them to begin the pilot project operations in Southwest Virginia and to achieve the needed regulatory approval. The company has intellectual property from a pending patent application for the production of a cutting edge cylinder style. Additionally, the general type of cylinder they are producing is of a type with very little domestic competition.

Food City announces its purchase of hospital building for headquarters

Food City announces it plans to purchase the now vacated Johnston Memorial Hospital in Abingdon for its corporate headquarters. On the lawn of the former JMH facility are, from left, Ed Morgan, Mayor of Abingdon; Dulcie Mumpower, Chairperson of the Washington County Board of Supervisors; Senator William Wampler Jr.; Sean McMurray, CEO of Johnston Memorial Hospital; Steve Smith, Food City CEO; Senator Phillip Puckett; Otey Dudley, Chairman, JMH Board of Trustees; Delegate Terry Kilgore; and Delegate Joe Johnson.

The Virginia Tobacco Commission, Washington County Board of Supervisors and the Town Council of Abingdon, Virginia announced June 3 that Food City will locate its new corporate offices at the recently vacated Johnston Memorial Hospital site in Abingdon. Food City currently operates 106 retail supermarkets in Kentucky, Virginia and Tennessee and employs over 13,000 associates company-wide. For Abingdon and Washington County, this project involves the retention of the 350 existing corporate employees, as well as 25 new employees needed to operate the company’s state-of-the-art data center. Food City anticipates a capital investment of $20.4 million dollars at the JMH Hospital property.

Food City, a presence in the Abingdon area for over 35 years, has seen tremendous growth in the last 10 years, not only at its distribution center in Washington County, but throughout its chain of supermarkets. This growth prompted the necessity of the relocation as the company rapidly outgrew its facility on Trigg Street in Abingdon and the company began to actively evaluate potential locations.

“We are pleased to be able to maintain our headquarters in the Town of Abingdon and Washington County”, says Steven C. Smith, Food City President and CEO. “We are extremely grateful for the support of this community, the Town, County, Tobacco Commission and our legislators, without whom none of this would be possible. Johnston Memorial Hospital has helped us acquire a location that will accommodate our corporate growth for years to come.”

Heartwood Artisan Center opens

Heartwood: Southwest Virginia's Artisan Gateway is now open just off Exit 14 I-81 in Abingdon. The artisan center is open seven days a week.

Heartwood: Southwest Virginia’s Artisan Gateway opened to the public June 15, and a grand opening with Gov. Bob McDonnell was held July 23. Located just off I-81 at Exit 14 in Abingdon, adjacent to the Virginia Highlands Community College campus, the center is described as an economic development initiative seven years in the making. The 30,000-square-foot facility will serve as a destination for travelers to explore the rich natural resources and cultural, musical and artisan heritage distinctive to the 19 county, four city region.

“This is an important economic development initiative for all of Southwest Virginia. Heartwood is expected to draw more than 270,000 visitors annually and generate more than $28 million in revenue for the region,” said Todd Christensen, executive director, Southwest Virginia Cultural Heritage Commission, the organizing body for Heartwood. “We are very excited for members of the public to experience all that Heartwood has to offer.”

Heartwood is open seven days a week. For hours and more information, visit www.heartwoodvirginia.org.

New Johnston Memorial Hospital now open in Abingdon

The new Johnston Memorial Hospital, the region's first "green" hospital, opened July 16. The facility is located adjacent to a cancer center and medical office building on Lee Highway (U.S. Rt. 11) between Exit 19 and Exit 22 of I-81.

On July 16, Johnston Memorial Hospital moved into a new $132 million medical center which connects to a cancer center and medical office building. The new facility features many natural elements such as stone, large windows with picturesque views , earth tone décor, wood finishes, healing garden, and a five-story atrium. The patient rooms, which are large and all private, include modern yet comfortable furnishings. In addition, the new JMH, a Mountain States Health Alliance facility, is Southwest Virginia's first "green" hospital - built and operated in an environmental friendly way. Johnston Memorial Hospital is focused on being an environmentally sustainable facility and follows the U.S. Green Building Councils' LEED - Leadership in Energy and Environmental Design guidelines.

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From my     perspective...

Tom Elliott     

Executive Director

2011 Year-to-Date Report Card

• 2 Expansions, 85 Jobs, $24.7 Million capital investment

• 1 New Industry, 18 Jobs, $1.6 Million capital investment

• A Total of 3 Announcements, 103 Jobs, $26.3 Million capital investment

First of all, congratulations to Washington County for adding Food City and Wiretough Cylinders to this report card. That’s good news in a year that’s been slower than expected thus far. Although we’ve seen a slight up tick in new prospect activity recently, most of it still remains in the form of “RFI’s” – Requests for Information on sites and buildings. We still need to see more prospects out here “kicking tires”.

As many of you know, the aCorridor is focusing a great deal of its marketing efforts on the site consultant community. Site consultants are now involved in almost every significant project that we compete for, and we must increase their awareness of the aCorridor region, our product, and our advantages to their clients. I recently attended two conferences that provided excellent opportunities to meet and learn from some leading site consultants and am continuing to follow up with these contacts.

Although they are usually known as site selection consultants, it was interesting to hear several of them refer to themselves as site elimination consultants. It’s a tough game, and everyone’s fighting to make their short list of finalists for projects. As we continue to build relationships and learn from these key players, we intend to increase our chances of being THE finalist in the future.

around the aCorridor...

Carroll County, the City of Galax and Grayson County held a regional meeting of their governing boards in March, along with with the Blue Ridge Crossroads Economic Development Authority, to approve the moral obligation and support necessary to purchase 167 acres that will become the Wildwood Commerce Park. The localities approved financing up to $5.5 million for the land acquisition. As the managing entity for the Park, BRCEDA subsequently approved a financing offer from the National Bank, based in Blacksburg. These regional actions conclude the funding necessary to acquire and initially develop the Wildwood Commerce Park. In 2010, the Virginia Tobacco Commission provided a $1 million site acquisition grant and followed up with a $3.8 million mega-site grant award in January 2011. The Appalachian Regional Commission has also reserved $500,000 for water and sewer development. Wildwood is located adjacent to Exit 19 of I-77 in Carroll County. To further the project of creating a regional commerce park, the localities and BRCEDA entered into a partnership and revenue sharing agreement in September 2010. The initial phase of the site development will yield a 50-acre graded pad with an access road, water, sewer, and fiber. Engineering for electricity will also be completed in the initial phase of the site development. Natural gas service is also available. Wildwood is currently listed with the Virginia Economic Development Partnership’s available sites. The next step in marketing Wildwood to companies to locate at the Park includes refining a target industry analysis. The Virginia Economic Development Partnership and Virginia’s a-Corridor are working with BRCEDA to accomplish this component.

ABB Bland is flying a special flag at its facility these days, the result of the company's stellar achievements in safety. Only 55 industry sites across the commonwealth are fortunate enough to hoist this special one-star flag and only 2,300 across the entire nation.
The flag is in recognition of ABB receiving the Virginia Voluntary Protection Program’s Star rating for going above and beyond in the area of workplace safety, according to an article in the Wytheville News Enterprise. ABB Bland is the second ABB site in the country to receive the award since the program began 30 years ago.
In order to achieve this rating, ABB Bland has spent the past three years going through a rigorous process of tightening the mechanical safety of the workplace, creating programs that encourage safe practices, undergoing a state audit and shifting the mindset of the employees so safety is their top priority at all times. “Our journey starts here with the raising of the flag,” said John Caldwell, ABB’s safety program coordinator and leader of the VPP employee safety team, to a crowd full of politicians, state and county officials, company leaders and beaming employees in May. It was Caldwell’s idea to motivate ABB to become Star certified. Before coming to ABB in 2006, Caldwell had worked in Wytheville at Morton Powder Coating, bringing it to Star status, too, he said. ABB has invested almost $2 million in this safety campaign. Milford Stern, VPP coordinator with the Virginia Department of Labor, was quoted in the news article, describing the initiative as“employee-driven.” “It’s about feeling ownership for their safety,” Stern said.

The Virginia Department of Transportation (VDOT) recently awarded 4 highway contracts valued at approximately $3.5 million for the Bristol District, two affecting aCorridor companies or projects. The Bristol District consists of 12 counties in southwestern Virginia: Washington, Smyth, Lee, Scott, Russell, Buchanan, Tazewell, Bland, Wise, Dickenson, Grayson, and Wythe. The project awards include: a $1.1 million contract was awarded to W-L Construction, Inc., Chilhowie, to pave various routes in Buchanan County; and Elk Knob, Inc., Pennington Gap, received a $398,635 contract to repair the Route 663 (Bishop Thomas Lane) bridge in Wythe County located over Interstate 81 near Exit 67.

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