Gov. Abigail Spanberger signed legislation on Monday that solidifies deals aimed at bringing large-scale manufacturers into Southside Virginia.
The bills signed by Spanberger include incentives packages for Avio USA, a rocket motor manufacturer, in Pittsylvania County and Hitachi Energy, an energy equipment manufacturer, in Halifax County. Those incentives packages are slated to cost the state a maximum of $6 million annually and $4.6 million annually, respectively. The bills were patroned by state Sen. Louise Lucas, D-Portsmouth, and Del. Luke Torian, D-Prince William County. Both lawmakers chair their chamber’s finance committee.
In exchange, Avio USA is expected to make a capital investment of at least $537.5 million as well as create and maintain at least 1,546 new full-time jobs at the proposed Pittsylvania County site. Hitachi Energy is expected to make a capital investment of at least $457.1 million as well as create and maintain at least 825 new full-time jobs at the proposed Halifax County site.
“From my very first day in office, I have been working to create a stable business environment so companies can hire, expand, and continue to invest in our Commonwealth,” Spanberger said in a statement. “Attracting new businesses and jobs to Virginia is a core focus of my administration — and I’m proud of the hundreds of millions of dollars in investment we have already announced this year. I look forward to continuing to work with legislators, local communities, and business leaders as we make clear that Virginia is the top state in the nation to grow or start a business.”
Avio USA is the second-largest economic development deal in Southside Virginia history, topped only by the 2024 announcement that Microporous, a lithium-battery separator manufacturer, would invest $1.3 billion at the Southern Virginia Megasite at Berry Hill and create just over 2,000 jobs.
Avio, which was founded in 1912, designs, manufactures and maintains commercial and military propulsion systems. It’s based in Colleferro, Italy, near Rome.
Wages at the Pittsylvania County factory could be around $81,400, which is significantly more than the county’s average wage of about $49,000, Jason El Koubi, president and CEO of the Virginia Economic Development Partnership, said in February.
The facility is slated to open with several hundred employees by 2028, El Koubi said, with the rest of the jobs coming after that.
Hitachi Energy said its expansion in Halifax County will make South Boston the biggest manufacturing site for large power transformers in the United States. The electrical grid components are seen as critical for meeting the rising U.S. demand for electricity, driven largely by data centers and AI.
Zurich, Switzerland-based Hitachi Energy makes a variety of electrical equipment for customers in the utility, data center and transportation sectors, among others. It employs 50,000 people across 60 countries.
Construction on the new South Boston transformer manufacturing facility should be operational by 2028, Hitachi spokesperson Kurt Steinert said in September.
Jobs created will include roles in engineering, advanced manufacturing and operations, the company said.
Hitachi Energy broke ground on its South Boston transformer facility in 1967. Today, it employs 670 people there. In Virginia, it also has facilities in Atkins and Bland.
These bill-signings kick off a busy week of gubernatorial action. Monday is the deadline for the governor to act on bills passed by the General Assembly, either by signing them, vetoing them or sending them back with amendments. The legislature reconvenes April 22 to act on any amendments and goes into special session on April 23 to deal with the state budget.
Staff writers Grace Mamon and Matt Busse contributed to this report.
