Celanese Corp. is replacing coal-fired boilers with natural gas-fired boilers at its Giles County plant.
Gov. Bob McDonnell and company officials announced the $150 million project Wednesday. The governor said it will create at least 22 full-time jobs and require about 200 construction workers.
The Dallas-based specialty materials and chemical products company manufactures cellulose acetate tow at the 73-year-old Giles County facility. The material is used in cigarette manufacturing.
Virginia Secretary of Commerce and Trade Jim Cheng said the project will reduce the company's carbon footprint and ensure that Giles County retains a valued employer.
The state provided $2 million in economic incentives to the county and the company.