CHARLESTON — Applied Technology and Management of Charleston has been chosen to spearhead the first phase of Jafza International’s development of a 1,300-acre logistics, distribution and manufacturing center in Orangeburg.

The engineering, design and consulting firm will be responsible for overall management of the project, including overseeing the letting of contracts, making onsite engineering and planning decisions and coordinating the initial buildout of the site. It also will work with officials from Dubai-based Jafza and government agencies on planning and implementing support infrastructure.

ATM is partially owned by the government of Dubai through a development firm called Island Global Yachts, in which the royal family of Dubai holds a large equity stake. The company has locations in South Carolina, Georgia, Florida, Rhode Island and Dubai.

Tony Maglione, ATM’s vice president and manager of the Jafza Orangeburg Project, said the company has established a project-specific e-mail address This e-mail address is being protected from spam bots, you need JavaScript enabled to view it , so that interested parties can inquire about contracting opportunities related to the project.

Additional information about Jafza’s plans for Orangeburg can also be found at ATM’s Web site.

These kinds of projects don’t come along very often, and it presents us with a fun challenge, Maglione said. We’re really excited about it.

Maglione said he doesn’t anticipate expanding the current staff of 27 in ATM’s Charleston office.

ATM performed preliminary site work on the Orangeburg site for Jafza late last year. At the site, ATM looked at wetlands on the property and, together with Jafza officials, determined that the best approach would be to leave the wetlands as they are and install wooden bridges and walkways to incorporate natural areas into walking trails and recreation areas.

Nevertheless, Maglione said, ATM’s selection came after several other firms with management and engineering expertise were vetted.

We won this contract fair and square, he said.

Located near the town of Santee in Orangeburg County, Jafza International’s logistics park is projected to create 8,000 to 10,000 jobs over the next decade and attract private investment of about $1.2 billion.

Patricia Salley, Melvin Smoak, Gregg Robinson, Dr. David Longshore and Rebecca Battle –Bryant

T&D Staff Report

Four Orangeburg County leaders graduated Nov. 9 from the South Carolina Economic Developers’ School.

They are Melvin Smoak, Orangeburg Consolidated School District Five superintendent, Dr. David Longshore, Orangeburg County Consolidated School District 3 superintendent, Rebecca Battle-Bryant, Orangeburg-Calhoun Technical College’s dean of continuing education and Orangeburg County Development Commission Community Development Manager Patricia Salley.

“In the ever-changing global economy, the only resource that is really rooted in a nation and the ultimate source of its wealth — is its people,” Orangeburg County Development Commission Chair Jeannine Kees said. “To compete and win, our work force must be well-educated, well-trained and highly skilled. We salute all our SCEDS graduates for their commitment to Orangeburg County.”

SCEDS consists of four two-day sessions each year which cover different aspects of economic development.

Graduates must attend all sessions and are tested after each session.

Those who complete and pass the examinations receive ce.jpgication.

Battle-Bryant said the experience was ‘a great experience’ and ‘very challenging’ but also rewarding.

She said the class learned the process of economic development from how to develop and industrial park, to what is involved in building a new speculative building to downtown revitalization efforts.

“It allowed you to get a framework of what economic development is and how to apply that Orangeburg and Calhoun County,” Battle-Bryant said.

She said the course even required tests and a final examination with a final project to initialize and complete a downtown revitalization project recommendation for Bamberg.

The proposal and the intent is to bring it before the Bamberg City Council in the near future.

The South Carolina Economic Development Association offers scholarships to SCEDS at the College of Charleston. Scholarships help offset registration, travel and meals.

SCEDS is a training program under the partnership of the South Carolina Department of Commerce, the SCEDA and the Tate Center for Entrepreneurship at the College of Charleston.

The purpose of the SCEDS is to educate those who support economic development professionals in their communities.

Orangeburg County Chamber of Commerce President David Coleman said the commitment it takes to complete the SCEDS program shows that those individuals locally who graduated are a valuable county asset.

“It is gratifying that we have so many individuals in Orangeburg County who are interested in the county’s economic development and are willing to make the effort that the program requires.”

Representatives from Jafza International met with members of Orangeburg County Council and the Orangeburg County Development Commission on Tuesday to sign a letter of intent and discuss plans for potential development of land the company purchased within the Global Logistics Triangle. Orangeburg County Development Commission Director Gregg Robinson said the events of Tuesday are part of a series of steps in the Jafza plans. From left are Robinson, Orangeburg County Development Commission Chairwoman Jeannine Kees, Orangeburg County Council Chairman Harry Wimberly, Jafza International Managing Director Chuck Heath and former South Carolina Gov. Jim Hodges, who is serving as an adviser to Jafza. (CHRISTPHER HUFF/T&D)

ISSUE: Jafza’s logistics center

OUR VIEW: Project is key for firm to expand into U.S.

How Jafza International came to choose Orangeburg County for its logitics center is an intriguing story — nearly as interesting as the big company’s plans for land in Santee.

The Times and Democrat has reported extensively on plans for the big distribution center that could include hundreds of companies and thousands of jobs. We’ve tracked the story of the land. We’ve told the story of the company’s solid international reputation. This week, we learned more.

When a leading figure from the company visited Orangeburg and spoke about the project, he reinforced what we know about location. Orangeburg County has it. He made clear that the Orangeburg County Development Commission and local leaders were crucial in the choice. And he sought to allay fears the project could have negative impact in Santee.

“This is a showcase project,” Jafza’s Managing Director Chuck Heath said. “We’ll do a lot of things in this project that we may not do in other facilities.”

The idea is to make Santee more than a trucking center, with nearly half of the 1,300 acres owned by Jafza being devoted to open spaces. Most of the remaining acreage will be warehousing and support businesses from food establishments to repair centers. Land across Interstate 95 may become recreation facilities.

Heath is convincing, offering an enthusiastic view based on his experience and global perspective.

Heath joined Dubai World-owned Jafza more than two decades ago and has been a key player in projects such as the massive Jebel Ali Zone in Dubai.

Jebel Ali, covering about 35,000 acres, is considered among the fastest-growing free trade zone operations in the world. About 6,500 international companies are operating there.

Orangeburg won’t be that big, but from an international business perspective, it could become equally important. Heath contends the Southeastern United States is to become the key entry point for commerce in the United States, replacing the West Coast. Savannah and Charleston are the top ports in the equation, he said. A logistics center serving them makes sense.

The ports have only so much room to grow in proximity to shipping terminals. Orangeburg is an initial site but is not the lone answer to the load. Jafza sees the Santee project as an entry point into the United States. There could be more locations, even in South Carolina and certainly in the Southeast.

This is a company with a global view, one that has enjoyed major success. International business wants to be associated with Jafza — from shipping firms to major companies such as Sony.

Jafza will put Orangeburg County and its Global Logistics Triangle on the international map. And while Heath and company are trying to maintain perspective on expectations here, it’s hard to resist being anxious about the possibilities for the county becoming a major center for international commerce.

Bill Lewis, company president and general manager of Monteferro America, talks about why his company chose to locate in the Orangeburg area as Orangeburg County Development Commission executive director Gregg Robinson, background at right, listens Tuesday at the OCDC offices. An international manufacturer of elevator guide rails, Monteferro Americais an international joint venture between Gerdau Ameristeel MRM of Canada and Monteferro S.P.A. of Italy. The company will break ground on a 42,000-square foot facility in the Orangeburg County/City Industrial Park to house manufacturing operations of the steel guide rails and other elevator accessories. (CHRISTOPHER HUFF/T&D)

An international manufacturer of elevator guide rails announced Tuesday it will locate in Orangeburg County.

Monteferro America, an international joint venture between Gerdau Ameristeel MRM of Canada and Monteferro S.P.A. of Italy, will break ground on a 42,000-square-foot facility in the Orangeburg County/City Industrial Park. The company will manufacture steel guide rails and other elevator accessories.

Groundbreaking will occur in about a month, with the company projecting to be operational by the end of May 2008.

“We believe we have picked the most promising site in which Monteferro can flourish,” said Bill Lewis, company president and general manager. “Logistics is a huge, huge portion of our business. It is one of the real reasons why we are coming here.”

The company will initially invest $3.32 million in the manufacturing operation and create 25 jobs over a five-year period with projections to possibly expand in the future, Monteferro produces and supplies elevator guide rails and hoist-way accessories for guide rail installation to customers globally.

The company will locate near Quality Model Plastics.

The firm will be looking for a general manager. It will employ three or four people in the shipping area and 13 people in the processing plant, Lewis said.

The company’s accessory business makes up about $3.5 million annually, with Lewis noting the Orangeburg expansion could mean growth of three to four times.

Lewis said the company is looking to partner with an industry in the sheet-metal-fabrication business to assist in production.

The company has global and manufacturing facilities in Italy, Canada, the Czech Republic, China, Brazil and Hong Kong.

Monteferro employs about 120 in North America and thousands globally.

Orangeburg County Development Commission Executive Director Gregg Robinson said the project would not have come to Orangeburg County without a “team approach” from all parties involved locally and on the state level.

“This adds another opportunity and another arrow in the quiver of Orangeburg County,” Robinson said. “This is another international flag. Welcome to being our fabric in the community.”

Providing attendees a “did you know,” Robinson noted that elevators move the equivalent of the world’s population every 72 hours.

“The next time you are in a residential or commercial building, a rail station, an airport or even a school and ride the elevator and escalator, who knows that product could have come right here from Orangeburg County.”

Monteferro looked at the eastern United States for about two years before settling on Orangeburg County.

Other areas considered were Savannah and Brunswick, Ga., and Jacksonville, Fla.

Lewis said the move was spawned by company growth of 70 percent in the last three years. “We cannot produce enough rails in our existing facility to service the market.

Lewis said about 75 percent of the company’s market is east of the Mississippi and the company has about 90 percent of the entire business in the United States. “We said it makes more sense to put a processing plant somewhere in the East Coast, import rail and do the value-added manufacturing of them in this location,” Lewis said.

Currently, the company transports its product from Manitoba, Canada, with a transportation cost of 12 cents a pound.

“Logistically that is a huge, huge saving if we could ship out of South Carolina,” Lewis said.

Lewis cited four reasons for the company choosing Orangeburg.

* A port to import from both Europe and China.

* Access to a roadway that traverses the entire East Coast.

* An attractive economic package that allowed the company to spend money and get a return in a short time.

* An adequate work force.

Lewis said the port, highways and employees are all in place in the area.

“The main reason we came to South Carolina and in particular to Orangeburg is because of the economic environment,” Lewis said. “It was a pretty easy decision to say we wanted to be a part of this area. We look forward to working in the community.”

Orangeburg County Council Chairman Harry Wimberly thanked Monteferro for giving the county a “new lift,” referring to the elevator industry.

Lewis jokingly said, “It has its ups and downs.”

Wimberly, a farmer, said he has been called off the farm more and more recently to welcome new industry.

“We strived for that effort for years,” Wimberly said. “We have reached some goals we have intended to accomplish by making economic development one of our main priorities. We wish you a very prosperous time in Orangeburg County.”

Rick Veres, Monteferro regional vice president of sales, and Fernando Bueno, controller of Monteferro America, the parent company of Monteferro USA, were in attendance at the announcement.

Orangeburg Mayor Paul Miller said the city looks forward to working with Monteferro.

“We want you to feel like you will be a part of our community,” Miller said, offering the city’s assistance to help the company feel at home.

As a token of appreciation, Miller presented Lewis a downtown brick with a city of Orangeburg medallion insignia.

OCDC Chairperson Jeannine Kees said Monteferro will be another international flag and component added to the county.

“We are pleased to welcome Monteferro as the newest member of the industrial community and we look forward to a long and prosperous partnership,” Kees said in a prepared statement issued by the OCDC. “Their selection of Orangeburg County marks the commitment of our continued growth.”

Robinson echoed Miller’s comments that Orangeburg will elp make Monteferro a success.

“International investment is a significant part of Orangeburg County and we will continue to grow that portion of our portfolio,” Robinson said. “This is a great venue for us to offer the world. We are excited for Monteferro.”

Robinson presented company officials a print of the state and a state flag.

Monteferro’s announcement also received statewide praise.

Secretary of Commerce Joe Taylor touted the company’s international presence and experience in producing elevator guide rails.

“The company is an innovative leader in its industry and a welcomed addition to South Carolina’s business community,” Taylor said. “Thanks to the team effort of state and local officials, Orangeburg County will benefit from this investment in the years ahead.”

The Post and Courier

Workers at Allied Air Enterprises stamp out pieces of steel that will become heating and cooling units in Orangeburg County/City Industrial Park Monday.

ORANGEBURG — Each day in Orangeburg County, several shifts of workers turn pieces of thin steel plating into sleek air heating and cooling units. Another produces thousands of feet of insulated underground cable for electric utilities.

Over at Husqvarna Home Products, employees assemble about 2,000 lawn mowers for distribution to homes across the country at the peak of the season.

The manufacturing sector is growing in Orangeburg, South Carolina’s second-largest county by size, just inland from Dorchester County. In the past 12 years, dozens of companies have opened industrial facilities where employees make all kinds of goods or handle imports for other employers around the Southeast.

Officials now hope to build on that to lower the largely rural county’s 10 percent unemployment rate, the sixth highest in the state as of July.

They say they’re making headway, thanks to the proximity to several major interstate highways, the availability of reasonably priced land and relatively easy access to the Port of Charleston. And they don’t foresee an end to the activity anytime soon.

In recent weeks, the area has been in the international spotlight after numerous but unconfirmed reports noted that a United Arab Emirates-based company is considering a massive $600 million to $700 million industrial park development near Lake Marion.

“It’s been a very exciting time here to see the area attract this amount of attention,” said Bill Clark, county administrator.

On notice
Located about 70 miles from Charleston, the county’s emergence as an industrial destination began to take hold around 1995, when council members called a public meeting about the area’s economic future, Clark said. More than 100 people attended the forum, which was held in a warehouse that recently had been vacated by a window treatment company.

Residents called for better jobs, and the business community felt the biggest economic lure was the undeveloped area where I-26 and I-95 intersect. So politicians proposed a penny increase on the local sales tax to invest in assets that would attract employers, such as industrial parks, better roads, and new water and sewer lines.

Residents approved, and when the tax was set to expire in 2004, they voted to extend it.”It sent a notice … to the outside world that county residents have embraced the concepts of economic development,” Clark said.

Over the years, the county’s improving infrastructure and expanding portfolio of industrial parks have drawn mostly manufacturers. A smaller number use their warehouse

space to break down and redistribute imported containerized goods to companies throughout the Southeast.

Over the past five years, the area has attracted 170 business expansions or new industries that have invested more than $625 million and created nearly 3,400 jobs, according to the Orangeburg County Development Commission.

Meanwhile, executives and site consultants who are scouring the country for a favorable place to expand have been checking out the area more frequently. Last year, the commission estimated it played host to nearly 100 such visits.

In recent years, much of the economic growth in Orangeburg has been concentrated in an area known as the Global Logistics Triangle, bordered by interstates 26 and 95 and U.S. Highway 301. About 2,000 acres in and around that site have been identified as ripe for development, said Gregg Robinson, a former state Commerce Department official who is now the development commission’s executive director.

But Robinson said the proximity to I-26 and I-95 isn’t the only calling card. Also coming into play, he said, are interstates 77 and 20, which link the Midlands with Charlotte and Atlanta.

Real estate costs are another factor. Property is much cheaper in Orangeburg than in the Charleston area, where pressures from residential developers have driven up land prices. For example, the starting per-acre rate for commercial property along I-26 around Jedburg is about $50,000. A similar parcel can be had for $22,000 less than an hour’s drive inland.

The interest in Orangeburg is “pretty simple” to explain, said Thomas Buist, an industrial real estate broker with Grubb & Ellis/Barkley Fraser.

“It’s location, price and the port expansion,” Buist said.

That’s not to say Orangeburg will overshadow Charleston anytime soon. Despite the higher real estate costs near the coast, some warehouse operators feel they need to be as close to the port as possible. As a result, the market in Charleston still is going strong from the Clements Ferry Road corridor to the red-hot Jedburg corridor. But Buist noted that manufacturers usually have more flexibility and don’t need to be as close to a port.

Bob Barrineau, an industrial broker with Charleston-based CB/Richard Ellis Carmody, said the growing industrial base up the interstate doesn’t pose a major threat to Charleston even though they compete directly for new businesses and jobs.

“If anything, I think it helps add more depth to our market,” he said.

Taking action
About 8,200 of the roughly 41,200 employed workers in Orangeburg County earn their living in the industrial sector, with some making products that consumers take for granted, such as galvanized highway rail guards or automotive disc brakes. At the Sara Lee Bakery, workers whip up about 56 million loaves of bread each year, according to the company.

Still, the county has one of the highest unemployment rates in the state, with more than 4,000 out of work in July, according to the most recent figures from the state Employment Security Commission.

Robinson said many residents are underemployed, meaning they could qualify for better jobs if those jobs were available.

He and other officials predict the employment base in Orangeburg will continue to expand. One of the driving factors is the $600 million shipping terminal that the State Ports Authority is getting ready to build on the former Navy base in North Charleston to relieve congestion at its other yards. It is expected to open in 2012.

About 25 percent of Orangeburg companies, such as treated-lumber exporter Cox Wood Industries, already rely on the port, Robinson estimated.

Ahead of the new terminal, the county is taking measures to make itself more alluring as a business destination. For example, it’s installing infrastructure that can support future industrial parks, and a new freshwater-treatment plant is set to open next spring.

Also, county leaders recently approved construction of a 150,000-square-foot warehouse that should be completed by mid-2008. The speculative $4.5 million building will help the county court companies that are pressed for space immediately, said Robinson, who estimated that there’s less than 200,000 square feet of industrial space in the county available for lease or purchase.

In addition, a study is under way to evaluate the best place to build an industrial park in the western section of the county.

Meanwhile, at least one private developer is eyeing Orangeburg, though its plans have not been finalized. Charleston-based Carolina Linkages Inc., or CaroLinks, proposed about a year ago to build an industrial park on 1,000 acres in the Santee area near Lake Marion. But Jafza International, a company owned by the United Arab Emirates and based in Dubai, reportedly is considering that site as well, as part of a larger project.

CaroLinks spokesman Alan Capper declined to comment.

Neither proposal sits well with a vocal group of nearby residents who are opposed to a large-scale industrial development in their community.

“We don’t see that being compatible with the tourism and recreation goals of the Santee area and our giant asset of the lake … regardless if it’s CaroLinks or Dubai or whomever,” said Don Antal, a member of the Friends of Santee Cooper Lakes who lives just outside Santee.

Robinson also said he couldn’t comment specifically on the CaroLinks or Jafza project, but he said the Orangeburg region is continuing to draw interest.

“We have a lot of attention from companies that are looking to invest in the Global Logistics Triangle,” he said. “If there aren’t, then something’s wrong.”