Salem, VA – May 2023.
A large manufacturing development project continues to progress as the City of Salem Economic Development Authority (EDA) recently closed on a Federally Taxable Revenue Bond, Series 2023. The process was organized by Davenport & Company this spring and Ridge View Bank was selected to provide the financing to the Authority and the City.
Proceeds from the 2023 Bond will be used to provide a loan to STS Group AG and pay the costs of issuance associated with the bond. STS Group will establish its North American headquarters and manufacturing operation in the former General Electric building in the City of Salem. From its new facility, the company will supply commercial truck assembly parts to Volvo Trucks in Pulaski County as well as other truck and automotive facilities throughout the Midwest and Southeastern U.S. Markets.
“This is a major development for the City of Salem,” said City Manager Jay Taliaferro. "When looking for the right structure for financing something of this magnitude, it’s important to be aligned with partners who understand the situation and can determine the best ways to make the unique details come together. With the help we received from our financial advisor, that’s exactly what we got when we selected Ridge View Bank.”
Ridge View Bank recently opened its first SMART Center in Salem, just a few miles from the site the STS Group selected.
“We were thrilled to work with Davenport, Salem’s leadership, the EDA, and others involved with this project to create a solution that will work for everyone,” said Carrie McConnell, President of Ridge View Bank. “For us, it’s about helping the region grow and building relationships with the key people and entities who have a vision for what it takes to fit these critical pieces together in the best ways economically.”
The former GE building has significant importance to the City of Salem and the surrounding community as it began operations in 1955 and stayed in use until GE closed the facility in 2019. STS Group is investing $32 million in the facility, upfitting 200,000 square feet, and constructing a 32,000-square-foot addition. This work will revive the building and return it to productive use. The project is expected to create 119 new jobs, which will have a major positive impact on the community.
“To be competitive we need to create good jobs,” said Mr. Taliaferro. “Completing the project will help us do just that and we’re thrilled about closing on this 2023 Bond with Ridge View Bank to make things work for everyone. There is so much happening in our city. It’s an exciting time to be here and this project is significant for everyone involved.”
“We couldn’t be prouder to have participated in this transforming project,” said Ms. McConnell. “It certainly hits close to home. Working with everyone in government in Salem, the STS Group, and my team was meaningful, and we expect this work to have a lasting impact on the region.”