December 21, 1998

Lila White
(804) 692-3110

Rudy Sauberlich
Mehler Engineered Products
(704) 365-5425
Jill Lawrence
(804) 371-0049
Governor Gilmore Announces 105 New Jobs for Henry County
-Mehler will locate U.S. headquarters in Henry County, $16.5 million investment -

Henry County - Governor Jim Gilmore today announced that Mehler AG, a German manufacturer of technical textiles, will invest $16.5 million in a manufacturing facility in Henry County. As a first step, Mehler Engineered Products, a subsidiary company of Mehler AG, will produce textile reinforcement products primarily used in the automotive industry. The company plans to initially hire 50 people and create a total of 105 new jobs over the next three years. The facility will serve as the U.S. headquarters for Mehler.

"We are pleased to welcome this international manufacturer to Virginia," said Governor Gilmore. "Mehler will create many job opportunities for the people of Henry County as the company locates their U.S. headquarters here. This announcement is a testament to Virginia's growing economy."

Mehler Engineered Products is a subsidiary of Mehler AG, which is based in Fulda, Germany. Mehler AG has annual sales of over $400 million. The Mehler facility will be located in the 77,000-square foot Henry County shell building on a 28-acre site in the Patriot Centre. The company will produce engineered textiles for industrial and technical applications, including cord for automobile and industrial belts and hose yarn for power steering hoses, air conditioning hoses and industrial hydraulic hoses.

"In Virginia, Mehler will develop, manufacture and market sophisticated technical products for the U.S. market," said Johann Peschek, president of Mehler AG. "Virginia offers a healthy and positive business climate with an excellent infrastructure. Taxes and production costs, especially labor and energy, are moderate and competitive. The education level of its workforce is high."

"Mehler is the largest manufacturer of reinforced textiles for the rubber industry in Europe," said Secretary of Commerce and Trade Barry E. DuVal. "This respected company will join other German automotive parts manufacturers in Virginia such as Siemens Automotive, VDO North America and BBA Friction."

The Virginia Economic Development Partnership, the Patrick Henry Development Council and Henry County assisted the company with its decision. The Virginia Department of Business Assistance will provide workforce training services.

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