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The Governor of Virginia said it well, “Service Center Metals is a real Virginia success story.”
Founded in 2002 by seasoned aluminum industry executives, Service Center Metals (SCM) supplies extruded aluminum rod, bar, standard shapes and tubing to the distribution market. Company president and CEO R. Scott Kelley aimed to become the industry’s most efficient, low-cost producer of extrusions within its niche. The goal, he said, was to combine quality products with exceptional customer service and support, creating a showcase organization for modern manufacturing processes and industry efficiencies.
After looking at facilities in North Carolina, Tennessee and Virginia, Service Center Metals found its home in Virginia’s Gateway Region, investing $13 million and creating 100 jobs.
“We chose this Prince George County site because of the Hollingsworth Companies’ SouthPoint Industrial Park site and its outstanding access to major interstate highways, as well as the existing base of experienced aluminum industry talent in the region,” Kelley said.
Construction on Service Center Metal’s new 78,000 square-foot state of the art aluminum extrusion facility began in October 2002 and was completed in July 2003. The company began hiring for the facility in May 2003 and quickly found the strong workforce they were counting on in Virginia’s Gateway Region.
At a job fair held at John Tyler Community College, the company received more than 500 applicants for the initial 30 job openings. Several of their employees are graduates of John Tyler’s technical training programs and many others are former Reynolds Metal employees.
The strong applicant base and well trained workforce have been great assets for Service Center Metals, but they weren’t the Gateway Region’s only selling points.
“We’ve gotten various levels of assistance from the state and from the region here,” Kelley said. “From financial assistance with subordinated loans, tax credits. We’re in an industrial development zone, so we’ve gotten a lot of benefits there, and we’re able to get additional help with the expansion on the financial side as well.”
In April 2005, Virginia’s Governor Mark R. Warner announced Service Center Metals was investing $28 million to expand and upgrade its facility in Prince George County.
“With the aid of financing provided by the Department of Business Assistance for the initial start-up, this company was able to get off the ground,” Warner said. “SCM’s transition from start-up to profitability in just seven months is testament to the power of public/private cooperation in the Commonwealth.”
Charles Townes, Sr., President of Virginia’s Gateway Region, explained, “Service Center Metals could open a facility anywhere. They looked at sites in California and Tennessee as well, but at the end of the day, Virginia’s Gateway Region made good business sense for the company. We are excited about Service Center Metals’ decision to locate in the Gateway Region and look forward to future growth of the company.”
Kelley said location was critical. The company wanted to be in a right-to-work state with low unionization levels, and they needed to be in a location that made sense logistically. With shipments from Florida to New England and a strong market in the Midwest, SCM knew the Gateway Region has proved its value from a logistics and cost standpoint. The company is able to reach most their customers with a day’s drive, and the Region provides excellent transportation infrastructure, including easy access to three major interstate highways (I-64, 85 and 95).
All of the Gateway Region’s assets have played a part in helping Service Center Metals to fulfill its founders’ dreams of being the industry’s best. Kelley was recently recognized as the Ernst & Young Emerging Entrepreneur of the Year for 2005 in Virginia – yet another indicator of Service Center Metals’ success.