NORFOLK, Va. (WAVY) – Bauer Compressors will invest $7.4 million to expand its operation in Norfolk and will add 47 new jobs in the city, Gov. Glenn Youngkin announced Wednesday.

Bauer Compressors, a subsidiary of Munich, Germany-based Bauer Kompressoren Group, will increase capacity to produce more hydrogen and natural gas compressors to meet what is said to be a growing demand.

The Virginia Economic Development Partnership worked with the city and the Hampton Roads Alliance to secure the project for Virginia, and the governor approved a $50,000 grant from the Commonwealth’s Opportunity Fund to help Norfolk with the project. The company is eligible to get state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development.

Funding and services for the company’s employee training activities will come through the Virginia Jobs Investment Program.

The governor’s office said Virginia successfully competed with Ohio and South Carolina for the project.

“Bauer’s long-term success in the city of Norfolk reinforces the Commonwealth’s strong foundation for job growth and the company’s continued confidence in our pro-business climate, infrastructure, and workforce,” Youngkin said in a statement. “The expansion of global industry leaders like BAUER strengthens the local and regional economies and Virginia’s advanced manufacturing sector, which continues to be a pillar in communities across the Commonwealth.”

Secretary of Commerce and Trade Caren Merrick said the company’s decision to expand its U.S. headquarters and manufacturing operation in the city “highlights the competitive advantage that Virginia offers international companies seeking growth in U.S. markets.”

Merrick said Norfolk’s proximity to the Port of Virginia, along with the region’s workforce, helped the city’s cause.

Bauer President Tony Bayat said the company is excited to continue a long-standing partnership with the city and state.

“The favorable business climate, easy access to the port and room to grow make Norfolk an ideal location for us,” Bayat said. “We are thankful for the efforts of the Virginia Economic Development Partnership, the city of Norfolk, the Hampton Roads Alliance and Governor Youngkin.”

Norfolk Mayor Kenny Alexander said the city is proud to be home to an innovator in the design and manufacturing industry.

“Bauer’s expansion and success is proof that manufacturing companies are in demand and thriving within our city,” Alexander said. “We are grateful to Bauer Compressors Inc. for continuing to invest in Norfolk.”

The Hampton Roads Alliance, Sen. Lionell Spruill and Del. Angelia Williams Graves also expressed their support for the company’s Norfolk expansion.

Bauer specializes in the high-pressure breathing air, GSA/military breathing air, industrial air and gas, plastics technology, natural gas and inert gas compression markets.