GALAX, VA – Upholstered furniture manufacturer Albany Industries will invest $2.5 million in a new operation in Galax, VA, creating 335 new jobs. 

"Galax is an ideal location for us to serve our Northeast markets," said Albany Industries president Richie McLarty. "This is a pro-business community with a workforce that's a perfect match for our needs."

Albany Industries is headquartered in New Albany, MS. Founded in 1995, the company currently employs more than 450 people in a 500,000-square-foot manufacturing facility. In 2009, 100 percent of Albany Industries’ stock was acquired by an ESOP trust.

The Galax plant was last operated by Vaughan Furniture Co., which ceased operations there in 2008, laying off 275.

"This project brings 335 new jobs to a city of 7,000 people," said Virginia Governor Bob McDonnell. "The company will revitalize a vacant property that formerly served as the B.C. Vaughan manufacturing facility."

The Virginia Economic Development Partnership worked with the City Council of Galax and Virginia's Corridor to secure the project. Governor McDonnell approved a $300,000 grant from the Governor's Opportunity Fund to assist Galax with the project. The Virginia Tobacco Indemnification and Community Revitalization Commission approved $680,000 in Tobacco Region Opportunity Funds for the project. The Virginia Department of Business Assistance will provide funding and services to support the company's recruitment, training and retraining activities.

The furniture plant opening follows a bevy of reports on a revival of U.S. wood manufacturing. The Boston Consulting Group recently forecast furniture as among seven sectors that could create 2 to 3 million jobs as manufacturing returns to the U.S.