Delta Star Inc. will invest $35 million to expand its operations in Lynchburg, creating 300 jobs, officials said Thursday.
The Lynchburg-based company makes power transformers and substations for the electric grid. It describes itself as “the largest, American-owned medium transformer manufacturer in North America.”
Delta Star President and CEO Jason Greene said in a news release that the expansion will “help address the global demand for energy solutions that prioritize both reliability and sustainability.”
“This investment will not only increase our manufacturing capacity but also allow us to continue advancing our technological capabilities to meet the evolving needs of the energy sector,” Greene said.
The expansion announced Thursday marks Delta Star’s second major Lynchburg investment in less than two years.
In May 2023, Delta Star announced it would invest $30 million and create 149 jobs. By June 2024, it had hired 155 new employees, and by fall 2024, it had completed a 108,000-square-foot expansion that added a metal fabrication facility and new corporate headquarters, the company says on its website.
Delta Star now operates out of 308,000 square feet total in Lynchburg, and the latest expansion will add 80,000, said company spokesperson Asa Keimig. The company will break ground this fall and anticipates completion by the end of 2026.
Delta Star currently employs about 434 people in Lynchburg out of more than 1,200 companywide. The 300 new jobs will be added over four years; most will be manufacturing jobs, but some will be in engineering and operational support roles, Keimig said.
Founded in 1908 in Chicago, Delta Star opened its Lynchburg plant in 1962 and later moved its corporate headquarters there, according to a news release from Gov. Glenn Youngkin’s office.
The company also has facilities in California and Quebec.
The city, the Virginia Economic Development Partnership and the Lynchburg Regional Business Alliance worked together to secure the investment for Virginia.
Youngkin approved a $2.3 million state grant to help Lynchburg with the project.
“Delta Star’s expansion in Lynchburg will not only create high-quality jobs but also strengthen the infrastructure that powers our communities and businesses,” Del. Wendell Walker, R-Lynchburg, said in the governor’s release.