International maker of elevator accessories picks Orangeburg County for new plant

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.”