December 10, 2004

Ellen Qualls
(804) 786-2211, x2379

Don Struminger
Virginia Linen Service Inc.
(804) 732-3315
Jill Vaughan
(804) 371-0049
-Governor Warner announces $8 million investment and 55 new jobs in Southside Virginia-

RICHMOND - Governor Mark R. Warner today announced that Southern Textile Service, Inc. and RD Group/2 LLC are investing $8 million to locate a linen processing facility in Mecklenburg County. Southern Textile Service, Inc. is a newly formed company associated with Virginia Linen Service, Inc., a 71-year-old linen and uniform rental service company. The new company will hire 55 new employees for the new 50,000-square-foot facility, which will be built in the Interstate Industrial Park in South Hill. Virginia successfully competed with Delaware and North Carolina for the project.

“Economic development is our top priority, and the work done at the local level to gain and maintain positive relationships with the business community is crucial to creating job opportunities in the Commonwealth,” Governor Warner said. “I am proud that Virginia Linen Service, which already has established a great reputation and shown a longstanding commitment to Virginia, continues to thrive here at home.”

Founded in 1934, Virginia Linen Service, Inc. is a third-generation, family-owned Virginia company. Virginia Linen Service, headquartered in Petersburg, Va., and its affiliated companies provide linen and uniform rental service to hospitals, healthcare clinics, restaurants, hotels, retail stores, barber/beauty salons, and various other businesses in a market area that stretches from Virginia Beach to Central Ohio, to Philadelphia, to Greensboro, N.C.

The new Southern Textile Service, Inc. high-tech facility is designed to be energy efficient, reducing the use of water and waste products while processing reusable textiles and thus saving valuable natural resources. The company also has affiliated Virginia operations in Charlottesville, Bedford, Norfolk and Franconia.

Donald L. Struminger, Chairman of the Board and Managing Partner for the project, indicated that “the Mecklenburg County location was selected, not only because of an excellent work force and geographic location at the intersection of I-85 and Route 58, but because of the professionalism and welcoming attitude shown by the Mayor of the Town of South Hill, Earl Horne, the Town Manager, John Stockton, and the Director of Economic Development for Mecklenburg County, Randolph Jones, and other community relations staff members. Regardless of the advantage of modern technology, the cooperative attitude of the community can make the difference between success and failure of a project.”

The Virginia Economic Development Partnership worked together with Mecklenburg County to facilitate the company’s decision to locate in Mecklenburg County. Governor Warner approved a $100,000 grant from the Governor’s Opportunity Fund to assist Mecklenburg County with the project. The Virginia Tobacco Indemnification and Community Revitalization Commission approved $90,000 in Tobacco Region Opportunity Funds to support Mecklenburg County with the project. The company also is eligible to receive tax credits from the Virginia Department of Housing and Community Development because it is locating in an enterprise zone. The Virginia Department of Business Assistance will provide training through its Workforce Services Program.

“We are very pleased that Southern Textile Service has chosen to locate in the Interstate Industrial Park in South Hill,” said Evans D. Tanner Jr., Chairman of the Mecklenburg County Board of Supervisors. “We are extremely happy to have such a distinguished Virginia company in our county.”


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