MAG Industries Ltd. has moved its entire manufacturing and research and development from Tyrone to West Virginia, due to a more amenable political environment, according to company President Grant Martin.

The transferred operations include all those related to the firm’s hemp-derived cannabinoid products and to its MAG-owned and produced brands — representing about half the company’s business — and has led to 25 layoffs in Tyrone.

A statement from Martin states: “MAG Industries has moved its entire Manufacturing and R&D unit to West Virginia. This includes all of MAG’s hemp-derived cannabinoid products and MAG-owned/produced brands.

“We will continue to operate the Tyrone facility to distribute other manufacturers’ brands of vape, tobacco and similar products to our retailers throughout PA. However, given that our production of MAG-owned brands — primarily hemp-derived cannabinoids — accounts for about half of our business, we unfortunately had to lay off about 25 people in Pennsylvania last week.

“Those jobs are immediately being replaced in West Virginia, and we will be fully operational at our new West Virginia site by end of this week. Also, we expect to expand in WV not just in production and warehousing, but also professional office jobs relating to our manufacturing (like IT, marketing, sales, and HR), which likely would have been in Pennsylvania.

“The reason for the relocation of this unit is that the legal and political environment in West Virginia is far more friendly to innovative small businesses and entrepreneurs like us.

“West Virginia (like TN, KY, and FL) recently passed consumer safety regulations for hemp-derived products, such as age restrictions, lab testing requirements, and product registration mandates.

“In these states, the governments saw the huge opportunity for small businesses to compete in this new industry, once it was legalized by the federal 2018 Farm Bill. Also, these states appropriately recognized the urgency of implementing sensible consumer-safety standards, so that irresponsible sellers don’t hurt consumers, and so legitimate businesses like MAG and the thousands of retailers who operate in those states are protected.

“Unfortunately, Pennsylvania lawmakers did not act quick enough, despite our very vocal lobbying efforts over the past year, including meetings with lawmakers like Senator Judy Ward and Representative Jim Gregory. Although we were applauded for our contributions to the local economy, there was no willingness to openly support our local business or to advance any safety regulations for our local consumers.

“Representative Dan Frankel (chair of the House Health Committee) is supportive and had intended to introduce a consumer-protection bill (similar to those passed in WV, KY, TN, and FL). However, the pace is very slow, and the division and hostility within the current PA General Assembly have made it virtually impossible to get anything done legislatively.

“Now, a handful of local district attorneys have decided to take matters into their own hands, bringing aggressive enforcement actions based on a misinterpretation of Pennsylvania law.

“Small businesses, entrepreneurs, mom-and-pop shops, and hemp consumers all over the state are being treated like criminals for selling mild cannabis products. Meanwhile, Zen Leaf — a billion-dollar, Blackrock-backed conglomerate from out-of-state — sells immense amounts of highly-potent marijuana at the busiest intersection in Altoona (subject only to a very loose “medical card” requirement, which anyone can very easily get).

“We hope that our elected officials in Pennsylvania will see the harm that their inaction is causing their constituents.

“If Pennsylvania gets its priorities straight and helps its residents succeed instead of big, out-of-state business, we will help pioneer this new industry in Pennsylvania.

“Until then, we are sending the vast majority of our investment, innovation and growth, down South, where small businesses and consumers are the priority.”