Sumitomo Drive Technologies to Automate Warehouse and Distribution Center in Chesapeake

RICHMOND, VA — The Virginia Economic Development Partnership today announced that Sumitomo Drive Technologies, a global power transmission manufacturer, will invest $9.3 million to automate a warehouse and distribution center in the City of Chesapeake. The company will retrain 42 employees, the majority of whom will be retrained to operate the new automated warehouse.

"This $9.3 million investment in our distribution center is more than just automation—it’s a bold step toward the future,” said Sumitomo Drive Technologies Vice President and Chief Operating Officer Tony Barlett. “We’re transforming how we operate by embracing advanced automation that will dramatically improve efficiency, speed, and service for our customers. But let’s be clear—this isn’t just an automation play. It’s a people play,” Barlett added. “We’re equipping our team with new tools and opportunities to grow alongside this technology. It’s about building a smarter operation and investing in our workforce. That’s how we stay ahead—by innovating, adapting, and betting on our incredible people.”

Sumitomo Drive Technologies, a brand of Sumitomo Machinery Corporation of America, manufactures power transmission and control products for a variety of applications serving customers in food and beverage, parcel handling, automotive and mining. The company’s headquarters facility in Chesapeake, Virginia, broke ground in April 1988 and continues to supply Cyclo, BuddyBox, Hyponic and Paramax products to customers across the United States.

Sumitomo has maxed out its warehouse space at 4200 Holland Boulevard. The installation and implementation of an automated storage and retrieval system will consolidate 27,000 square feet of inventory to 7,000 square feet. Sumitomo also will transition from using forklifts to automated guide vehicles to help manage all inventory.

The Virginia Economic Development Partnership worked with Chesapeake Economic Development and the Hampton Roads Economic Development Alliance to secure the project for Virginia.

“We have been fortunate to have Sumitomo Drive Technologies be a part of the Chesapeake business community for over 30 years,” said City of Chesapeake Mayor Rick West. “Chesapeake is excited to see Sumitomo Drive Technologies continue to grow and modernize their facility.”

"Congratulations to Sumitomo Drive Technologies on the exciting expansion in Chesapeake,” said Hampton Roads Alliance President and CEO Douglas L. Smith. “As a valued investor in the Alliance, Sumitomo Drive Technologies exemplifies the strength and innovation that define our region’s advanced manufacturing sector. The company’s continued growth is a powerful testament to the vital role of foreign direct investment in driving economic opportunity and global competitiveness across Hampton Roads. We are proud to support Sumitomo Drive Technologies and look forward to their continued success in our region."

Sumitomo Drive Technologies graduated from the Virginia Leaders in Export Trade Program in January 2019, and the company has participated in a number of Trade programs since, including their current participation in Trade’s Supply Chain Optimization Program. VALET assists Virginia exporters that have firmly established their domestic operations and are committed to international exporting as a growth strategy.

VEDP will support the company’s employee retraining through the Virginia Jobs Investment Program, which provides consultative services and funding to companies creating new jobs or upskilling their existing workforce to support employee recruitment and training activities. As a business incentive supporting economic development, VJIP reduces the human resource costs of new and expanding companies. VJIP is state funded, demonstrating Virginia’s commitment to enhancing job opportunities for citizens.