Virginia Beach Department of Economic Development

STIHL Inc. Plans $25 Million Expansion in Virginia Beach

October 17, 2017

U.S. Headquarters will expand to 80,000 Square Feet

Governor Terry McAuliffe announced that STIHL Inc., headquarters for U.S. operations of the worldwide STIHL Group, will expand with an investment in excess of $25 million in Virginia Beach. Currently, STIHL Inc. occupies more than one million square feet of industrial space on 150 acres in the Lynnhaven corridor. The U.S. headquarters opened in Virginia Beach in 1974.

"STIHL Inc. has been an important corporate partner to Virginia Beach and the Commonwealth for over 40 years, and it is a powerful testament to our talent pipeline and competitive business climate for this global company to again reinvest in Virginia," said Governor McAuliffe.

Construction of the state-of-the-art, 80,000-square-foot administration facility is part of the company's commitment to growing U.S. operations in Virginia Beach. The new building will combine the Finance & Controlling, Sales & Marketing, Legal and Customer & Technical Service teams under one roof, as well as add a new museum and brand experience center. This expansion from the existing 21,000-square-foot administration building will allow STIHL Inc. to comfortably continue its anticipated growth at its Virginia Beach facility. In addition, STIHL Inc. will relocate and improve its outdoor demonstration area, allowing dealer groups, employees and visitors to experience STIHL Inc. equipment and receive hands-on training in appropriate use of outdoor power equipment.

"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+ 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."

As part of this project, STIHL Inc. will improve traffic flow and security at the main entrance gate, creating individual lanes for employees, visitors and trucks, and update the entry guard house with a coordinating design. A separate right-hand turn lane will be added from Avenger Drive to improve traffic flow. Employees affected by the construction will be provided temporary office and work space at the International Industrial Center that is adjacent to the campus. The anticipated completion date is late 2019.

"STIHL Inc. has continually grown in Virginia Beach and has also continually improved its facilities on campus," said Virginia Beach Economic Development Director Warren D. Harris. "The expansion retains more than 80 full-time positions, and we are all extremely proud that STIHL Inc. leads our region in advanced manufacturing and technology."

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.

"The City of Virginia Beach has been an ideal business partner," said 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."

Over the last 20 years, Virginia Beach has awarded STIHL Inc. $1.41million in grants, which has leveraged $167,680,000 million in new capital investment.

STIHL Inc.'s economic impact includes:

Employ 1,900 people in Virginia Beach
Utilize 345 Virginia-based suppliers
Support more than 200 local charities
Expanded presence in the Lynnhaven corridor by more than one million square feet in the last 11 years, including improvements to International Industrial Center (formerly Lillian Vernon) for non-STIHL tenants, bringing additional business to the city

STIHL Inc. manufactures the number one selling brand of gasoline-powered handheld outdoor power equipment in America,* as well as the number one selling brand of chain saws in the world. STIHL is also the number one selling brand of gasoline-powered handheld outdoor power equipment among U.S. landscape professionals.** STIHL products are sold through servicing power equipment retailers from coast to coast – not big box stores. Located in Virginia Beach, Virginia, STIHL Inc., the headquarters for U.S. operations for the worldwide STIHL Group, exports to over 90 countries around the world; and the majority of STIHL products sold in America are also built in America.*** STIHL products sold through U.S. STIHL dealers are for distribution in the United States only. For more information or for the name of a local STIHL retailer, call toll free 1-800-GO STIHL (1-800-467-8445), visit STIHLusa.com or text your zip code to 78445.

*"Number one selling brand" is based on syndicated Irwin Broh Research as well as independent consumer research of 2009-2016 U.S. sales and market share data for the gasoline-powered handheld outdoor power equipment category combined sales to consumers and commercial landscapers. **"Number one selling" claim based on 2007-2016 syndicated Irwin Broh Research of the U.S. professional landscaper market. ***A majority of STIHL gasoline-powered units sold in the United States are built in the United States from domestic and foreign parts and components.

The mission of the Virginia Beach Department of Economic Development is to attract and retain national and international businesses to stimulate capital investment and create jobs. Virginia Beach is the most populous city in Virginia with a population of 450,000, and it is the 37^th largest in the United States. The Department of Economic Development received re-accreditation through the International Economic Development Council in 2016 and is one of only 50 economic development organizations in the world to have this recognition. Most recently, Virginia Beach was named America's #1 best big city to live in by wallethub.com. For more information, visit www.yesvirginiabeach.com.