Ashland Inc., a Covington, Ky.-based specialty chemicals company, plans to invest $39 million to improve and expand its Hopewell, Va., facility.
The expansion, which is just getting underway, will accommodate new equipment to increase Ashland's production capabilities.
The expansion will preserve 200 jobs and create 15 new jobs, according to the state.
Virginia successfully competed against the company's facilities in Europe and China for the project.
"Virginia acted quickly and encouraged this Fortune 500 company to grow its Hopewell facility," Gov. Bob McDonnell said. "The facility, acquired by Ashland from Hercules Inc. in 2008, has operated in the community since 1912, and we are pleased that it will continue as a mainstay of the local economy."
The Virginia Economic Development Partnership worked with the city of Hopewell and Virginia's Gateway Region to prepare a proposal and negotiate an incentive package to secure the project for Virginia. McDonnell approved a $250,000 performance-based grant from the Virginia Investment Partnership program, an incentive available to existing Virginia companies.
The company also may be eligible to receive state benefits from the Virginia Enterprise Zone Program, according to the state.
Through its Virginia Jobs Investment Program, the Virginia Department of Business Assistance will provide funding and services to support the company's recruitment and training activities.