Governor McDonnell Announces $45 Million Investment in Amherst County

RICHMOND - Governor Bob McDonnell announced today that Greif (NYSE: GEF, GEF.B), a world leader in industrial packaging products and services, will invest $45 million in its operation in Amherst County. The plant upgrade includes technology improvements which will deliver significant reduction in energy consumed to produce paper products.

Speaking about today’s announcement, Governor McDonnell said, “This significant investment is a tremendous win for Amherst County and the Commonwealth. Greif’s plant has been in continuous operation since 1975 and employs nearly 300 Virginians. Investing $45 million in technology upgrades secures the mill’s competitiveness in the containerboard market, and thus secures the future of the operation and its employees for years to come.”

“Greif has thrived in Amherst County for nearly 40 years,” said Jim Cheng, Virginia Secretary of Commerce and Trade. “The proximity and abundance of Virginia’s raw material supply is an important factor, as is the trained workforce and convenient access to the company’s customer base. This investment is significant for the region, and the upgraded equipment will reduce the energy consumed in the manufacture of Greif’s products.”

Headquartered in Delaware, Ohio, Greif (NYSE: GEF, GEF.B) produces steel, plastic, fiber, flexible and corrugated containers, packaging accessories and containerboard, and provides blending, filling and packaging services for a wide range of industries. The company also manages acreage in the United States. With more than 200 operating locations in more than 50 countries, Greif is positioned to serve global as well as regional customers.

“Investing in our Virginia mill operation is a sound business decision,” said Mitch Heishman, Technical Manager, Greif. “Our state and local officials have been a pleasure to work with.”

The Virginia Economic Development Partnership worked with the Amherst County Economic Development Authority to secure the project for Virginia. Governor McDonnell approved a $350,000 performance-based grant from the Virginia Investment Partnership program, an incentive available to existing Virginia companies.

“This huge investment by Greif is wonderful news for Amherst County,” said Robert Curd, Chairman of the Amherst County Board of Supervisors, and Don Manley, Chairman of the Amherst County Economic Development Authority. “The upgraded facility will position one of our most important businesses for decades to come, helping to insure the strength of the local economy as well as the community leadership roles of the company and its employees. Of course, the contribution to the local tax base is important to the delivery of County services. Amherst County is pleased to have been able to support this corporate decision through the local business incentive program.”