Opinion ID: 1248183
Heading Depth: 1
Heading Rank: 1

Heading: Activities Constituting Manufacturing

Text: To constitute manufacturing, the activity must [transform] the new material into an article or a product of substantially different character. Solite Corp. v. King George Co., 220 Va. 661, 663, 261 S.E.2d 535, 536 (1980). Because the public policy of Virginia is to encourage manufacturing in the Commonwealth, this definition should be applied liberally. See Prentice v. City of Richmond, 197 Va. 724, 726, 90 S.E.2d 839, 840-41 (1956); Morris & Co. v. Commonwealth, 116 Va. 912, 920-21, 83 S.E. 408, 411 (1914). In the present case, the County concedes that BBPE performs some manufacturing. As previously noted, however, the primary area of factual dispute is whether certain rebuilding work should be characterized as repair or as manufacturing. The trial court found as a matter of fact that BBPE's rebuilding work constitutes manufacturing. Consequently, the court's judgment shall not be set aside unless it appears from the evidence that such judgment is plainly wrong or without evidence to support it. Code § 8.01-680. BBPE's evidence establishes that its rebuilding activities primarily consist of processing blocks of raw metal or bars of raw copper into finished, machined components that were used to replace ruined or damaged parts in the equipment being repaired. Clearly, BBPE's fabrication of replacement components was a transformation of new material into an article or a product of substantially different character. Solite, 220 Va. at 663, 261 S.E.2d at 536. We conclude, therefore, that the evidence is sufficient to support the trial court's finding that BBPE's rebuilding activities constitute manufacturing. [5]