Liaoyang Ningfeng Woodenware Co Ltd, a Chinese furniture maker based in Liaoyang City, has chosen the state of Virginia to be home for its first US factory, partly due to the state's furniture-making history.
The family-owned Chinese furniture company said it will invest more than US$2 million to launch its first US plant in Smyth County, Virginia. The firm has chosen a shuttered furniture plant in the county as site for its New Ridge LLC factory.
The factory will produce solid wood bathroom furniture for Swedish furniture giant IKEA. The furniture will then be sold to IKEA stores worldwide.
It will also manufacture furniture parts that will be shipped and sold in China and will also supply customers in Europe and the US with finished products.
The plant is expected to generate 125 jobs, said Roy Dahlquist, managing director for Asia for the Virginia Economic Development Partnership that worked closely with the county and the state to secure the project.
More than the 125 jobs, Dahlquist said residents in Smyth County are happy that the industry is returning to some of its roots. A year ago, two cabinet makers closed two plants in Smyth, resulting to about 300 layoffs.
The project, he said will surely replace the jobs that were lost when the two other furniture firms shut down.
Former Virginia Governor Bob McDonnell said the arrival of Liaoyang Ningfeng Woodenware, through its subsidiary, the New Ridge LLC, in the state is tremendous news for an area that is still recovering economically.
He said the New Ridge is a great addition to Virginia's strong wood products industry. Virginia competed with the states of Kentucky, Tennessee and West Virginia for the said investment.
"Successfully competing against the other three states is a great testament to the opportunity the company sees in the state and region," McDonnell said.