Richmond - Governor Terry McAuliffe announced today (June 18) at the Virginia State Capitol that Shandong Tranlin Paper Co., Ltd., a leading Chinese pulp and paper company will invest $2 billion over five years to establish its first U.S. advanced-manufacturing operation in Chesterfield County.
The investment represents the largest Chinese investment and job creation project in Virginia history and is the largest Chinese greenfield economic development project in the United States. Virginia successfully competed against several other states for the project, which will create 2,000 new jobs by 2020.
"An investment of this magnitude, with the creation of 2,000 new jobs by 2020…shows how Virginia is leading the way in attracting innovative businesses to the Commonwealth," McAuliffe said. "Advanced manufacturing jobs are the heart of a strong and growing 21 century economy, and this investment symbolizes the economic recovery taking place across the nation, and will be transformational for the economy of Chesterfield County and the surrounding region. The opportunity to welcome a leading, global company's first U.S. manufacturing operation and simultaneously strengthen Virginia's relationship with China is invaluable."
The Tranlin operation in Chesterfield County represents a project of historic proportions for Virginia, said Maurice Jones, Virginia Secretary of Commerce and Trade.
"This global pulp and paper company is a national leading R&D Center for straw-based pulp and paper in China, among many other awards for innovation and invention, and will enter the U.S. market with its new paper and fertilizer manufacturing facility," Jones said. The new 850-acre campus offers the potential for Tranlin to eventually produce its full product lines and continue to grow its operation and customer base while using Virginia's natural resources."
Based on the agricultural supply chain opportunities associated with the project, the economic benefit to farmers in this region alone could exceed $50 million per year once the project is complete and operating at full capacity, said Todd Haymore, Virginia Secretary of Agriculture and Forestry.
Tranlin's new manufacturing facility in the paper and fertilizer sectors will be located on an 850-acre campus in the James River Industrial Center. Based on analysis performed by the U.S. Department of Agriculture, the Virginia Department of Agriculture and Consumer Services, and Virginia Tech Cooperative Extension, the economic benefits of this operation will be felt throughout the agriculture sector, from new demand for agricultural equipment, to new jobs for direct and indirect agricultural jobs.
In addition, this project will help preserve farmland by providing farmers a new opportunity to derive additional economic return from their land and equipment, creating positive economic pressure to maintain it in farming use. The harvest of straw in the spring and corn stalks in the fall for use by Tranlin will be two new cash crops for Virginia producers, in addition to other fibrous products from the surrounding area. From an environmental standpoint, the harvest of these agricultural residuals is compatible with the Chesapeake Bay-friendly no-till crop production practices these producers are already using. In addition, Tranlin prides itself on a process that leads to an environmentally friendly effluent, resulting in the discharge of quality, clean water.
Founded in 1976 and based in Liaocheng, China, Shandong Tranlin Paper Co., Ltd., formerly known as Shandong Tralin Paper Co., Ltd., is centered on the pulp and paper industry, with an annual productivity of 400,000 tons of refined pulp, 700,000 tons of machine-made paper, 400,000 tons of organic fertilizers, and 2.4 billion food and medical packaging boxes. The products are sold in more than 30 provinces, municipalities and autonomous regions of China, and some products have been exported to the United States, Europe, Japan and South Korea.
"We are pleased that Virginia and Chesterfield County will be the site of our first U.S. advanced manufacturing operation," said Mr. Hongfa Li, chairman and president, Shandong Tranlin Paper Co., Ltd. "Virginia has abundant resources of agricultural stalks, power and water supply, manpower, and a strong transportation system -- all necessary tools that guarantee Tranlin's future development. More importantly, the Virginia team's flexibility, patience, teamwork, cooperation, and above all, passion for foreign investment, factored into our decision."