German sink manufacturer Schock GmbH has formally bowed out of its previous commitment to establish its North American headquarters in Henry County, a project that was expected to create 355 jobs and an $85 million investment.
Henry County announced this following its decision to approve a $1 million appropriation to repurchase the facility that would have housed the company. County supervisors voted to repurchase the building at their Tuesday meeting.
The action represents the end of Schock’s plan to establish a plant at Henry County’s Patriot Centre, a deal that was struck in 2021.
“This is primarily a business decision on part of the company,” board of supervisors Chairperson Jim Adams said in a news release. “The county did its due diligence on this project and ensured safeguards were in place to protect the economic interests of our citizens.”
The partnership between the company and Henry County came with an investment promise of $85 million that included improvements to the 95,500-square-foot facility it was to operate in. To date, the company has invested $750,000, contributing to the building’s $5 million valuation, according to information provided by the county.
While Schock was offered a few incentives based on employment and investment milestones, they never came about because the company halted the project, according to Henry County spokesperson Brandon Martin. Schock is, however, on the hook for about $45,000 in taxes owed during the years the building was under its ownership.
Building ownership will revert to the Henry County Industrial Development Authority, which owned the property prior to the 2021 deal. The IDA will work with the Martinsville-Henry County Economic Development Corporation to market the facility to other prospective buyers.
IDA Chairman Len Dillon offered no comment Wednesday, saying he would like to discuss the matter with his fellow board members.
Henry County beat out possible locations in North Carolina, Florida and other states, and the deal was touted by Gov. Ralph Northam as proof of Virginia’s ability to attract companies. At the time, Schock North America CEO Marc Nover praised Virginia as a welcoming home for companies located abroad.
“This region offers a well-qualified and dedicated workforce,” Nover said in 2021.
The building reclamation does not necessarily end the private-public relationship between Henry County and the German firm.
“Henry County remains our top choice for investment,” Ivo Huhmann, Schock’s chief financial officer, said in Tuesday’s news release. “Its strategic location, coupled with the robust support from a county known for its business prowess, makes it an ideal choice. Regrettably, the recent economic downturn and subsequent financial challenges have necessitated the reduction of costs and exposures across our company. While it is unfortunate that we are unable to proceed as planned at this time, we maintain a strong connection to Martinsville and Henry County.”
