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Service Center Metals to create 58 new jobs, expand manufacturing operation in Prince George County

Service Center Metals (SCM), a manufacturer of aluminum extrusions, will invest $45.2 million to expand manufacturing capabilities at its headquarters operation in the SouthPoint Business Park in Prince George County. Virginia successfully competed against Indiana for the project, which will create 58 new jobs. Today’s announcement brings the announced economic development project investment total for the McAuliffe Administration to more than $20 billion, the most ever during a governor’s four-year term, with more than 1,103 projects.

“As a homegrown Virginia company, Service Center Metals is now one of the fastest-growing manufacturers in the Commonwealth and a prime example of the success entrepreneurs can achieve here,” said Governor McAuliffe, announcing this project during his final State of the Commonwealth address. “Despite facing challenges during the recession, SCM has rebounded and demonstrated resilience and commitment to its 200 employees and the region time and again. We are honored that this corporate partner has again chosen to reinvest in Prince George County and the Commonwealth, and I am proud to have a hand in bringing a record $20 billion in capital investment to the Commonwealth during my term working to diversify and build the new Virginia economy.”

Service Center Metals was founded in 2002 by Scott Kelley (CEO), Randy Weis and Chip Dollins, three former Reynolds Metals Co. executives, and started operations in July 2003 in Prince George, Virginia. Unlike bigger competitors, the company deals exclusively with service centers, which resell the products to manufacturers. In 2013, the company celebrated both 10 years of production and over 600 million pounds of customer shipments. In 2014, SCM started down the path of vertical integration with the start-up of the first phase of its Compact Remelt Plant. Phase 2 of the Compact Remelt Plant began production in early 2017, producing all of its own billet needs and providing a new revenue stream for the company through billet sales to other extruders. Today, SCM employs 200 employees and has an annual revenue in excess of $145 million, shipping products to U.S. and Canadian markets. SCM remains a privately-held company, with both of its plants located in Prince George, Virginia, and has been ISO-9001 certified since 2005.

“This is an exciting win for Prince George County and Virginia, and we congratulate Service Center Metals on another impressive expansion,” said Secretary of Commerce and Trade Todd Haymore. “The advanced manufacturing sector continues to gain momentum in the Commonwealth, thanks to major industry players like SCM, and every day we are adding to the roster of nearly 6,000 manufacturers and over 242,000 workers. I’m grateful for the company’s investment and confidence in Virginia.”

“We’re delighted to be expanding our business for the fourth time in our 16-year history here in the Commonwealth of Virginia,” said Scott Kelley, SCM’s President & CEO. “While we seriously considered building this expansion in Indiana, the incentive package offered by the Commonwealth and Prince George County convinced us to say ‘yes’ to Virginia once again. Here at Service Center Metals, our company motto is ‘Can Do.’ It exemplifies SCM’s culture—one where anything is possible with focus, hard work and determination. In our view, when it comes to helping entrepreneurs start and grow and their companies, our state and local governments clearly have a strong pro-business, ‘Can Do’ approach as well.”

The Virginia Economic Development Partnership worked with Prince George County and Virginia’s Gateway Region to secure the project for Virginia. Governor McAuliffe approved a $200,000 Commonwealth’s Opportunity Fund to assist the county with the project. The Governor also approved a $400,000 performance-based grant from the Virginia Investment Partnership program, an incentive available to existing companies. Service Center Metals is eligible to receive state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development. Funding services to support the company’s employee training activities will be provided through the Virginia Jobs Investment Program.

Alan R. Carmichael, Chairman, Prince George County Board of Supervisors stated, “I am proud to announce another expansion to one of our most successful and homegrown companies, Service Center Metals. This investment will provide 58 new jobs for our community. The expansion also confirms that Prince George County has created the environment for new and existing businesses to thrive and prosper.”

“The expansion of Service Center Metals in Prince George County has not only provided a steady boost for economic growth in our region, but proves to be a strong employer in our area that supports our communities’ hard working families,” said Senator Roslyn Dance. “I look forward to the continued success of the company and the development of our manufacturing opportunities in Prince George County.”

“The investment by Service Center Metals highlights the diverse resources that Prince George County has to offer to both new and growing businesses. These advanced manufacturing jobs are a testament to the future economic success of the County and the Commonwealth” said Delegate Emily Brewer.  “I wish Service Center Metals continued success in the many years to come in Prince George County.”

 
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