Governor McDonnell Announces 84 New Jobs in Clarke County Following Meeting with Parent Company in Gutersloh, Germany

GUTERSLOH, GERMANY - Governor Bob McDonnell today announced that Berryville Graphics, an affiliate of German-owned Bertelsmann AG, Europe’s largest media company, will invest $10.6 million to consolidate its book printing operations at its manufacturing facility and headquarters in the Town of Berryville in Clarke County. The Governor made the announcement following a meeting with Bertelsmann AG CEO Thomas Rabe in Gutersloh during his Europe Marketing Mission. The project will create 84 new jobs and save 81 jobs for Virginia. Virginia successfully competed against Kentucky for the project.

Speaking about today’s announcement, Governor McDonnell said, “Today is a gratifying day for our job-creation efforts. Berryville Graphics is one of the largest, fully automated book manufacturers in the U. S. and is a part of Europe’s largest media company. Today, during my 10-day marketing mission to Europe, I had the opportunity to meet with Bertelsmann’s CEO personally to close this important deal for Virginia. Berryville Graphics has thrived in Clarke County since 1956, and with this significant investment will keep its operations in the Commonwealth and create 84 new jobs.”

“Building new relationships and strengthening existing partnerships with European companies is the focus of the Governor’s marketing mission, and this project is a tremendous result,” said Jim Cheng, Virginia Secretary of Commerce and Trade. “Berryville Graphics and Bertelsmann AG are important corporate partners to Virginia, and today we further solidified this bond. The Town of Berryville in Clarke County has been the ideal business environment in which the company has thrived, and I congratulate all involved on this great investment and new jobs.

Berryville Graphics (BVG), part of Bertelsmann AG, a worldwide corporation with expertise in entertainment, publishing, printing and distribution, is one of the largest, fully automated, hardcover and softcover book manufacturers in the United States. A leader in book manufacturing, BVG maintains a steadfast commitment to exceptional quality, superior customer service, and a network of workable solutions. All jobs that enter BVG are analyzed in advance to determine the best-suited technology for that particular project. From digital composition and print-on-demand to full pre-press and printing capabilities, BVG has the right system - and the expertise - to manufacture a wide range of hardcover and softcover book products. BVG produces nearly 120 million books each year at its manufacturing facility in Berryville, Virginia.

“The book industry has faced many challenges over recent years, forcing us to review existing capacity and ultimately, reduce the number of physical locations,” said Dave Liess, President & Chief Executive Officer of Berryville Graphics and Coral Graphic Services. “While this was not an easy decision, the excitement and partnership shown by both the State of Virginia and Clarke County has reinforced our belief that Berryville is the right place to invest. I would like to thank everyone involved in making this expansion possible and we look forward to many more successful years in Virginia.”

The Virginia Economic Development Partnership worked with the Town of Berryville and Clarke County to secure the project for Virginia. Delegate Joe May also assisted with the project. Governor McDonnell approved a $200,000 performance-based grant from the Governor’s Opportunity Fund to assist the Town of Berryville and Clarke County. Through its Virginia Jobs Investment Program, the Virginia Department of Business Assistance will provide funding and services to support the company’s recruitment, training and retraining activities.

“Berryville Graphics has significantly enriched the community for many years, not only in terms of job creation and retention, but also by their regular payment of property taxes and consistent generosity to community groups,” said Michael Hobert, Chairman of Clarke County Board of Supervisors. “We want this valued partnership to endure. Our aim is to encourage Berryville Graphics’ continued growth in Berryville and Clarke County. We also believe this collaboration will bring about increased productivity, helping to keep Berryville Graphics competitive, and leading to the hiring of even more workers who will contribute to the economic life of the community.”

“We are pleased and gratified that we have the opportunity to partner with Governor McDonnell, Berryville Graphics, and the County of Clarke to help create jobs and economic growth in Berryville,” said Berryville Mayor Wilson L. Kirby. “Berryville Graphics has been an asset to our community for over 25 years and we look forward to the company's continued growth and success in the future.”

Since taking office, the governor has led five international job creation and economic development marketing missions that have resulted in greater exports from Virginia to countries around the world, as well as new businesses ventures coming to the Commonwealth. The governor has worked directly with foreign purchasers and a number of the Commonwealth's agribusinesses during prior missions to help secure well over $200 million in new agricultural exports, including soybeans and wine shipments to China, beef cattle to Canada, and wine, seafood, and specialty foods to the European Union. While on his 2010 European mission he met with officials with The Hornschuch Group, a leading producer and marketer of highly technical films, and helped close a lucrative economic development deal that led to the company investing $28.3 million to expand its O’Sullivan Films operation in Winchester. The project will create 174 new jobs in the Winchester area. In 2011, Governor McDonnell led a job creation and economic development marketing mission to Japan, China and South Korea. The mission has already resulted in a number of economic development deals. Additionally, Governor McDonnell has attended both the Farnborough and Paris Airshows to promote and secure partnerships with the Commonwealth Center for Advanced Manufacturing.