MATT GENTRY The Roanoke Times

The Intermet plant on West Main Street in Radford was bought by Virginia Casting Industries.

RADFORD -- A dormant city foundry could be running "in a matter of weeks," the president of the company that bought the former Intermet Foundry said.

Virginia Casting Industries will invest $9.1 million and employ up to 300 people in a ductile iron components manufacturing operation at the site, state officials announced Tuesday morning.

"We want to try to move as quickly as possible," said Dan Minor, president of VCI. "We would like to be able to get this facility ready to run in a matter of weeks and get people back in there."

To close in bankruptcy court, VCI was required to buy the entire 180-acre site -- including both the New River Foundry and Radford Foundry -- in Radford and the former Archer Creek Foundry in Campbell County.

Intermet's holdings in Radford were valued at more than $11.5 million in a 2008 assessment.

For now, plans call for the reopening of only the New River Foundry building.

Minor wouldn't divulge what VCI paid for the Radford foundries, calling it confidential. Paperwork filed May 5 in the Radford Circuit Court clerk's office shows a transfer of $126,000 to Intermet for the property, which Minor said didn't tell the whole story.

VCI is a new company owned by the majority owners of Michigan-based Cadillac Casting.

Virginia Casting Industries anticipates hiring 91 employees in the first year of operation, building to 300 employees over three years, Minor said.

Employees will earn about $39,300 per year, a news release from the city stated. Minor said he was not prepared to discuss employee benefits further.

The average manufacturing wage for Radford is $37,739, City Manager David Ridpath said.

Employees from the team that ran the Intermet New River Foundry have been hired by VCI to begin reopening the building, Minor said.

"This is great news for the city," Radford Mayor Tom Starnes said. "I've looked forward to having them arrive and start putting employees back to work."

Production at the foundry, once it begins, will benefit the city's revenue base, Starnes said. Intermet was the city's largest user of water and electricity, and Starnes said the city lost between $1 million and $1.5 million in annual revenues when the plant closed.

Starnes said he expects there to be a high volume of water and electricity use when production begins at VCI.

It is unknown how much water and electricity VCI will use for its operation, city economic development Director Basil Edwards said.

Gov. Bob McDonnell has approved a $600,000 grant from the Governor's Opportunity Fund. That money hinges on the company's investments in the property over the next three years, including equipment for the property, Ridpath said. The terms of the agreement have not been released because it remains unsigned.

There are no matching incentives from the city save the usual electricity rates given to all high-volume users, Ridpath said. VCI did not approach the city for any incentives.

In August 2008, Intermet filed for Chapter 11 bankruptcy in Delaware.

In December, Intermet closed the New River Foundry, its remaining operation in Radford, and laid off its last 76 workers. The company closed the neighboring Radford Foundry in 2003.

The plant's former work force was represented by the United Steelworkers Local 9336, with a past contract that expired Dec. 31.

Eddie Lowery, the Roanoke-based subdistrict director for the United Steelworkers International, said he had no comment on whether the union will try to organize the VCI work force.

When asked about his position on unions, Minor said, "It's my personal philosophy that if you treat employees with respect and dignity, I don't believe its necessary."

VCI has not yet made a decision on the fate of the Archer Creek Foundry, Minor said. The company is contacting former customers of that foundry to see if they would be interested in moving their products back, he said.

"If they are not willing to move product back to that plant, we'll have to see what we'll do with that site," Minor said.

Staff writer Jeff Sturgeon contributed to this report.