A Prince George County-based aluminum extrusions manufacturer has announced that it will expand its operations to meet the increasing demand of the customers. Service Center Metals, specialised in the sale and distribution of soft aluminum extrusions, is likely to invest $101.7 million for the expansion, which in turn will create around 94 new jobs. The announcement was made on Tuesday, September 14, by the company and the office of the governor.
In order to carry out the expansion process, the company will be building two new facilities, namely aluminum extrusion plant and a remel plant. The aluminum extrusion plant will be 91,000 square foot and the remel plant will be of 170,000 square foot. This expansion will add the third aluminum extrusion press.
According to Scott Kelly, the co-founder, president and CEO of Service Center Metals, “This is the largest individual expansion that we’ve ever done in terms of additional capacity as well as the capital invested. We are currently operating 24 hours a day, seven days a week, and we can sell every pound we can make. We’re sold out through the end of the year. I wish we had the equipment right now. Business is good.”
Service Center Metals is the manufacturer of aluminum products like rods, bars, tubing used for machinery, transportation, equipment industry and transportation. It also sells aluminum extrusions to the other metal service centers. Service Center Metals has around 250 workers in their team.
Scott Kelly further stated, “Construction on the two buildings should begin later this year. The remelt plant should be operational in the fourth quarter of 2022 and the extrusion plant should be ready in the first quarter of 2023.”
According to Ralph Northom, 73rd Governor of the Commonwealth of Virginia, “Service Center Metals has experienced tremendous success in Prince George County over the past two decades, and an investment of this magnitude is extremely significant for the region. The advanced manufacturing sector is strong in Virginia.”
Ralph Northom also approved a grant of $350,000 from the Opportunity Fund of the Common Wealth to help Prince George with his project. Not only this, Ralph also approved another performance based grant from the Virgina Investment Performance Grant of $900,000.
Ralph Northom further added, “The Company recently completed a 90,000-square-foot expansion to accommodate increased productivity, logistics, safety and some fabrication.”
Service Center Metals located in South Point Business Park off Interstate 295 covers 500,000 square feet on its 30-acre campus. But due to shortage of space, the company has decided to expand its campus in the nearby Crosspointe office park.
According to Scott Kelly, in January 2018, then Government Terry McAuliffe made an announcement during his final common wealth speech that Service Center Metal was planning to expand their manufacturing operations. Around $45.2 million was planned for the expansion.
He further stated that, “This is a bigger expansion than what was even announced back then.
Service Center Metal was founded by Scott Kelly in 2002 along with Randy Wesis and Chip Dollins.
SCM Industries LLC, the affiliate of Richmond-based Riverstone Group in 2019 July, bought a majority state in Service Center Metals.
Responses
