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Service Center Metals Expands Its Extrusion Operations Under New Ownership

aluminum billet - Service Center Metals is expanding its casthouse and extrusion operations

Service Center Metals is investing $100 million to expand its casting and extrusion operations in Prince George County, Virginia. The facilities will increase production capacity to meet customer demand, as well as create 94 new jobs.

“Our next expansion will be the largest in our history, adding significant capacity to both our billet casting and extrusion operations that will further satisfy our customers’ needs,” said Scott Kelley, president and CEO of Service Center Metals. “Virginia’s excellent business climate, including its business-friendly regulatory environment, and access to a world-class workforce, was significant in our site selection process. As the saying goes, ‘there’s no place like home,’ and we’re proud and excited to be expanding in Virginia.”

Service Center Metals began its operations in Prince George County in 2003 and has since evolved into a vertically integrated aluminum billet and extrusion company, manufacturing rod, bars, shapes, and tubing. From its two plants on its 30-acre campus in South Point Business Park, the company ships to metal service centers across the U.S. Its flagship extrusion plant has two state-of-the-art presses. In addition, the company operates a compact remelt plant with scrap recycling and horizontal billet casting capabilities for the production of aluminum billet.

With this new investment, Service Center Metals will establish two new facilities — an aluminum extrusion plant and a compact remelt plant. These new operations will be constructed to mirror the existing South Point Business Park plant.

The expansion project is receiving significant support from local government entities. The Virginia Economic Development Partnership worked with Prince George County to secure the project for Virginia, and Governor Ralf S. Northam approved a $350,000 grant from the Commonwealth’s Opportunity Fund to assist Prince George County with the project. In addition, the governor also approved a performance-based grant of $900,000 from the Virginia Investment Performance Grant, an incentive that encourages continued capital investment by existing Virginia companies. Funding and services to support the company’s employee training activities will also be provided through the Virginia Jobs Investment Program.

“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,” said Northam. “The advanced manufacturing sector is strong in Virginia and has played an important role in helping the Commonwealth achieve the Best State for Business title. We look forward to the expansion of Service Center Metals and its continued success in the Commonwealth.”

New Ownership Structure

SCM Industries, LLC (SCM Industries), an investment entity affiliated with The Riverstone Group in Richmond, Virginia, has acquired the majority ownership position in Service Center Metals.

“We believe SCM Industries is the ideal partner for Service Center Metals and the fact they’re local makes this partnership all the more special,” said Kelley. “For both our employees and customers, remaining independent and keeping our ‘Can Do’ company culture intact was an absolute requirement. With SCM Industries, we know that will happen. We’re also very excited that SCM Industries is clearly committed to help us aggressively pursue our growth plans, several of which are already underway.”

A partner at SCM Industries stated, “We are pleased to have the opportunity to invest in one of the area’s outstanding companies. The SCM management team and employees exemplify true entrepreneurial success. We look forward to assisting them as they expand capacity and strengthen their leadership position in the aluminum extrusion market.”

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