THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Sunday, October 22, 1995               TAG: 9510220058
SECTION: LOCAL                    PAGE: B2   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: RICHMOND                           LENGTH: Medium:   53 lines

HIGH-TECH FIRM EXAMINES TWO VA. SITES, AND SITES IN OTHER STATES, PAPER REPORTS SOURCES SAID ONE IS A STATE-OWNED TRACT IN HENRICO COUNTY.

A company planning to build a $1.5 billion manufacturing complex is considering at least two sites in Virginia, according to news reports.

The high-tech corporate prospect also is considering two other states for its expansion project, the Richmond Times-Dispatch reported Saturday. The plant would be similar to those that Motorola Inc. and a joint venture of IBM and Toshiba Corp. plan to build in Virginia.

State and county officials declined to talk about even the existence of such a deal.

``Quite honestly, I cannot talk publicly about economic prospects,'' said Morgan Stewart, state Economic Development Department spokesman. ``That is all I can say.''

Gov. George F. Allen chastised the paper, saying its information was incomplete. The paper said it was certain its story was accurate.

Sources told the newspaper that one of the Virginia sites is a 200- to 300-acre, state-owned tract in Henrico County, east of Richmond International Airport.

The plant would cover 1 million square feet, the sources said.

The plant would have an annual payroll of $75 million, the sources said. One source said the company could provide tax revenue of $12 million to $15 million a year to the county.

Sources also told the newspaper that part of the deal would involve guarantees by the county to provide water, sewer and road improvements.

Henrico would have to spend up to $9 million to extend water and sewer lines and $1.7 million for road improvements at the site, a source said.

If Virginia lands the high-tech development, it would be another feather in the cap of Republican Gov. Allen, who touts the state as the emerging ``Silicon Dominion.'' Most American manufacturers of computer chips have plants in California, Oregon, Washington or Texas.

Last month, Motorola officially announced plans to build a $3 billion semiconductor manufacturing complex in Goochland County, about 17 miles east of Richmond. Motorola plans eventually to employ up to 5,000 people making computer chips.

IBM and Toshiba also recently announced plans to jointly build a $1.2 billion computer chip plant in Manassas. IBM already owns a vacant plant in the area.

The new project is expected to create up to 4,000 jobs. by CNB