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ROANOKE, Va. (AP) — Gov. Jim Gilmore used his highly publicized State of the Commonwealth address to announce a truck plant expansion that will create 1,277 jobs in southwest Virginia. But there's an expensive catch.

Mr. Gilmore wants the state to provide Volvo Trucks North America with $50 million worth of financial incentives for expanding its Pulaski County truck plant, Deputy Commerce and Trade Secretary Joshua Lief said Thursday.

Gilmore announced the $148 million expansion plan and a new state economic development incentives program targeted at existing businesses during his annual address to the General Assembly on

ednesday night.

The Volvo announcement is "just a terrific bonus for Southwest Virginia," said Del. Tom Jackson, D-Hillsville.

Mr. Gilmore went to the Volvo plant five months ago to ask company president Marc Gustafson what the state could do to help existing manufacturers grow. He came away with the idea for the "Virginia Investment Partnership."

The program will encourage Virginia manufacturers to add production capacity, utilize state-of-the-art technology, modernize assembly processes and hire new workers," Gilmore told House and Senate members.

nder the draft legislation, an existing company would qualify for the incentives program if it invests at least $25 million to expand production or modernize and stabilize existing employment.

he state would provide cash grants ranging from 10 percent to 35 percent of the amount of state tax revenue provided by the expansion or the purchases made during modernization.