RICHMOND - Governor Bob McDonnell announced today that The Hornschuch Group, a leading producer and marketer of highly technical films, will invest $28.3 million to expand its O’Sullivan Films operation in Winchester. The Hornschuch Group acquired O’Sullivan Films in March 2010. The project will create 174 new jobs in the Winchester area.

Governor McDonnell met with officials at The Hornschuch Group in Germany during his European Marketing Trip in July.

“O’Sullivan Films has a rich history in Winchester and The Hornschuch Group’s acquisition of the company will allow that tradition of success to continue,” said Governor McDonnell. “It is gratifying that this announcement is an outgrowth of the meeting with Hornschuch officials during my recent marketing trip to Europe. Through the expansion of O’Sullivan Films, Hornschuch will be able to further impact the North American market.”

“This announcement is great testament to the international ties that Virginia maintains in the global marketplace,” said Jim Cheng, Virginia Secretary of Commerce and Trade. “The project is mutually beneficial in that both Hornschuch and O’Sullivan can expand their presence in the U.S. I was pleased to be a part of this meeting in Germany and look forward to the company’s future success.”

Hornschuch is a leading producer and marketer of highly technical films, foils and artificial leather for the home decoration, fashion, furniture, automotive and construction related markets through its well known brands d-c-fix and Skai. The headquarters and manufacturing are located in Weissbach, Germany, with 800 employees and more than 80 representatives worldwide. Hornschuch was founded in 1898. The current management team has more than 10 years entrepreneurial experience in several MBO’s and sold the majority stake of the company to Barclays Private Equity in 2008. Hornschuch has developed a strong track record of growth and product innovations over the last several years.

O’Sullivan Films is a recognized leader in the production and commercialization of polymer films and finishing film technologies serving the building products, consumer, healthcare and automotive markets. It employs 375 people at its facilities in Winchester, Virginia. O’Sullivan has been in existence for over 114 years.

Rolf Gemmersdoerfer, Chairman of the Hornschuch Group, said, "We knew that Virginia was a great place in which to do business. Our acquisition of O’Sullivan Films is a testimonial to that effect. Governor McDonnell’s visit to our facility in July was very helpful. When a Governor of a U.S. state takes the time to meet prospective investors in Europe, it sends the message that Virginia is willing to develop a working relationship with companies that will benefit the citizens of Virginia. Our people worked relentlessly in the last four months to make this project a reality. We are excited that we are now bringing this expansion to fruition."

Denis Belzile, President and CEO of O'Sullivan Film, agreed, stating that "The visit by Governor McDonnell to Hornschuch was important. The Governor's office has been nothing but cooperative throughout the process. In addition, the City of Winchester and the Winchester-Frederick County EDC were excellent partners as we worked our way through this investment. We are also pleased to live and work in a state that is pro-business, and we are very proud to be part of the great community of Winchester."

The Virginia Economic Development Partnership worked with the City of Winchester to secure the project for Virginia. Governor McDonnell approved a $300,000 grant from the Governor’s Opportunity Fund to assist Winchester with the project. Governor McDonnell also approved $500,000 in performance-based grants from the Virginia Investment Partnership (VIP) program, an incentive available to existing Virginia companies. The Virginia Department of Business Assistance will provide training assistance through the Virginia Jobs Investment Program.

"The city of Winchester is very excited about this project,” said Winchester City Council President Jeff Buettner. “O’Sullivan Films has been a major employer and a manufacturing leader in our city since 1932. With this expansion, their future looks brighter than ever. This investment in Winchester and the 174 jobs that will be created speaks volume about the business climate and the workforce in our community."

Press Contact(s)

Stacey Johnson (804) 225-4260
Denis Belzile O’Sullivan Films