May 01, 2008

Gordon Hickey
(804) 225-4260

Rhonda Bunn
Canon Virginia, Inc.
Christie Miller
(804) 545-5805
-Canon to invest more than $600 million in Hampton Roads subsidiaries-

RICHMOND - Governor Timothy M. Kaine today announced that Canon Virginia Inc. will invest a total of more than $600 million in its Newport News operations and its Industrial Resource Technologies Inc. (IRT) subsidiary’s facilities in Gloucester County, the first of several expansions planned as part of Canon Virginia’s “Vision for the Future” program. Canon Virginia is a subsidiary of Canon U.S.A. Inc.

Canon Virginia’s investment will be used to expand its operations in Newport News, including the construction of a new state-of-the-art manufacturing facility, and repair and refurbishing operations for select Canon products, which involve the planned creation of more than 1,000 new jobs. In addition, Canon will invest to expand its IRT subsidiary, owned by Canon Virginia and Canon U.S.A., in Gloucester County. IRT recycles toner cartridges and reclaims cartridge materials, reflecting Canon’s focus on environmental management. This part of the expansion plans is expected to create additional jobs.

“Canon’s planned total investment and creation of more than 1,000 jobs is spectacular news for Virginia,” said Governor Kaine. “Canon Virginia has been a significant corporate partner to Newport News and the Commonwealth for 23 years and employs nearly 1,500 Virginians. A key driver of the expansion decision was the development of a workforce pipeline to recruit and train the many new employees, and the Virginia Community College System stepped up to the plate to provide a solution for Canon in the Hampton Roads region.”

Canon U.S.A. Inc. delivers consumer, business-to-business, and industrial imaging solutions. Its parent company, Japan-based Canon Inc. (NYSE:CAJ), a top patent holder of technology, ranking third overall in the U.S. in 2007, with global revenues of $39.3 billion, is listed as one of Fortune's Most Admired Companies in America and is on the 2007 BusinessWeek list of “Top 100 Brands.”

Headquartered in Newport News, Canon Virginia Inc. serves as the lead manufacturing support center for Canon U.S.A. Canon Virginia uses world-renowned production systems and extensive technical and manufacturing expertise to offer manufacturing solutions, including injection mold tools, metal and plastic parts, product manufacturing and reverse manufacturing.

“We are excited about this tremendous opportunity to grow and expand our operations in Virginia,” said Mr. Takayoshi Hanagata, President and CEO of Canon Virginia Inc. and Industrial Resource Technologies Inc. “We appreciate the outstanding support of our many partners at the Commonwealth of Virginia, the City of Newport News and Gloucester County who are assisting in making our vision for growth in Virginia a reality. The Virginia Peninsula and Gloucester communities have provided strong support to our operations and we are proud to call the Hampton Roads region home. We look forward with much anticipation to a very bright future in Virginia.”

The Virginia Economic Development Partnership worked with the City of Newport News, the Newport News Economic Development Authority, Gloucester County, Gloucester County Economic Development Authority, the Virginia Community College System and Thomas Nelson Community College to secure both projects for Virginia.

Governor Kaine approved $1.5 million from the Governor’s Opportunity Fund to assist Newport News with the Canon Virginia project. Governor Kaine also approved a $20 million Major Eligible Employer grant. Through the Major Eligible Employer grant program, the Commonwealth may provide a grant to an existing Virginia company that makes a new capital investment of at least $100 million and creates at least 1,000 jobs.

The company will be eligible to receive state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development. The City of Newport News is applying for a grant from the Transportation Partnership Opportunity Fund through the Virginia Department of Transportation to assist with transportation improvements.

For the IRT project, Governor Kaine approved a $500,000 performance-based grant from the Virginia Investment Partnership program, an incentive available to existing Virginia companies.

The Virginia Department of Business Assistance will provide training assistance for both projects through the Virginia Jobs Investment Program.

“I am extremely pleased to see this project come to Canon Virginia in Newport News,” said Newport News Mayor Joe Frank. “I would like to thank Canon Inc. for its continued confidence and investment in the City of Newport News. This is the most significant economic development project in our City for the past two decades. The City and Canon have maintained a close relationship since the company first chose to locate in Newport News. We remain a premier location for advanced manufacturing as evidenced by this announcement today. On this proud day, we are reminded that Newport News and Virginia’s Hampton Roads region are vibrant places where people want to live, work and raise a family. We look forward to Canon Virginia’s continued success and to the many benefits that its success will confer on the City of Newport News.”

“This is a great day for the Canon family, the Commonwealth, Newport News and Gloucester,” said Gloucester County Board of Supervisors Chairperson Teresa Altemus. “The expansions at Canon Virginia and Industrial Resource Technologies are vital additions to the Hampton Roads region. Canon USA and Canon Virginia’s capital and workforce investment in Industrial Resource Technologies is tremendously exciting news for our Gloucester community. Recently celebrating its tenth year of operation, IRT has been a major catalyst for development in the Gloucester Business Park and we thank all parties who worked so tirelessly to make this possible.”

The Virginia Community College System and Thomas Nelson Community College (TNCC) are stepping forward to lead a training alliance that will deliver 880 world class technicians and supervisors over three years.

“This is an incredible partnership that will connect highly-desired employees with highly-desired jobs, benefitting the entire community,” said Dr. Glenn DuBois, Chancellor of Virginia's Community Colleges. “By creating this pipeline, we are connecting people who have retired from the military, advanced technology students and others seeking a new opportunity with a college curriculum that has been explicitly designed to meet Canon's demanding job specifications.”

The hiring pipeline will be modeled after the Southeast Virginia Advanced Manufacturing Pipeline led by TNCC that in three years has placed more than 3,500 skilled workers in jobs with some 60 companies in Hampton Roads, working in collaboration with the region’s workforce boards, one stop centers, and community colleges.


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