April 14, 2003

Ellen Qualls

Jim McCrone
Carbone Kirkwood LLC
(434) 395-8200
Jill Lawrence
(804) 371-0049
-Governor Warner announces Carbone Kirkwood expansion-

PRINCE EDWARD COUNTY - Governor Mark R. Warner today announced that Carbone Kirkwood LLC will expand its existing operations in Prince Edward County. Through a $2.7 million investment, the company will create 65 new jobs at its facility on Industrial Park Road. Virginia successfully competed with Ohio and Mexico for the expansion. Governor Warner and Jim McCrone, President of Carbone Kirkwood LLC, made the announcement at an event this afternoon.

“Carbone Kirkwood is the largest manufacturing employer in Prince Edward County,” said Governor Warner. “While we aggressively work to attract new businesses to the Commonwealth, a significant amount of the state’s job growth is generated from existing business expansion. I am pleased that Carbone Kirkwood will provide more jobs to the people of this region.”

Carbone Kirkwood LLC, a newly established joint venture involving the carbon product divisions of Kirkwood Industries and Carbone of America, is the country’s largest supplier of carbon brushes for automobile motors. Carbone of America was established in Prince Edward County in 1991 when it purchased Stackpole Corporation, which had been in operation in the County since 1967. Carbone Kirkwood is a full-service supplier of brush products for major motor manufacturers in the USA, Canada and Mexico. The R&D activity in Farmville is staffed by engineers trained in Germany, Japan, France and Virginia. Since 1991, $15 million has been invested in the facility’s state-of-the-art manufacturing equipment. Carbone of America earned the prestigious QS-9000 certification of its Quality Assurance system in 1997.

“Current economic conditions – low car sales, steadily decreasing prices and increased costs – make consolidation of manufacturing operations in Mexico, Ohio and Virginia a requirement for profitability. Although relocating Cleveland production to Virginia was far from the least costly option, the lower risk associated with the established skills and experience of the Farmville team was the deciding factor,” said Jim McCrone, President of Carbone Kirkwood LLC. The relocation of production is scheduled to start in May, with completion before the end of 2003.

Governor Warner approved a $167,500 grant from the Governor’s Opportunity Fund to assist Prince Edward County with the project. Additionally, the county obtained $250,000 in Tobacco Region Opportunity Funds from the Virginia Tobacco Indemnification and Community Revitalization Commission. The Virginia Economic Development Partnership, Virginia’s Heartland and Prince Edward County assisted Carbone Kirkwood with its decision to expand in Virginia. The company is also eligible for further tax credits based on its location in an enterprise zone. The Virginia Department of Business Assistance will provide workforce training services.

“Carbone has been an important and long-standing member of the Prince Edward-Farmville community,” said William G. Fore, Jr., Chairman of the Prince Edward County Board of Supervisors. “We consider it a privilege to have been chosen for the expansion of this joint venture, and we look forward to supporting the continued success of Carbone Kirkwood LLC.”


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