Local officials optimistic area will reap dividends from Volvo plant

Local economic development officials say Volvo Car Corporation’s plans to bring up to 4,000 jobs to the region by 2030 is a potential boon for the area.

“The eyes of the world are on us,” Orangeburg County Development Commission Chairman Kenneth Middleton said. “Unquestionably, this raises the probability of new plant placement in the Orangeburg County market.”

Volvo Car Corporation has chosen adjacent Berkeley County for its first manufacturing facility in the Western Hemisphere.

The new $500 million plant will be located on a portion of the Camp Hall site in the northwestern portion of the county. The site is about 20 miles from Interstate 95 and the Orangeburg County line and about 35 miles from Santee’s 1,322-acre Jafza Magna Park.

Construction will begin in early fall 2015 with the first vehicles to roll off the assembly line in 2018. The facility will have an annual production capacity of approximately 100,000 cars.

Gregg Robinson, Orangeburg County Development Commission executive director, said the proximity of the Volvo site to Holly Hill, which will be located at Exit 177 off of Interstate 26, is about a 10-mile drive.

“This puts the Global Logistics Triangle in a ‘honey hole’ of suppliers,” Robinson said. “This elevates every aspect of economic development, the attention to workforce and what we have to do to be ready to take training to the next level of generations of workers for Volvo.”

The GLT is a county trademarked designation consisting of the area near Interstate 95/I-26 and U.S. 301 near Santee.

Robinson said Orangeburg County is ideal for automotive suppliers with the availability of 3,000 acres and eight industrial parks.

“We have been putting money where our mouth is. This is truly an exciting opportunity for I-95 and the proximity of Holly Hill, Bowman, Santee, Vance and Eutawville,” he said, noting such an economic development announcement is one that can “transform” a community. “We have already had phone calls. Our activity has been very high.”

He said Volvo could mean more residential, dining and retail development.

In fact, Robinson said he spent much of Monday morning meeting with an automotive supplier he says has Orangeburg County at the top of its list of potential locations. He declined to comment on the name of the company.

“God is good,” Orangeburg County Council Chairman Johnnie Wright said. “This will open up a whole new, different dynamic for the county. Being in such close proximity of something of that magnitude will have a great impact on us.”

An economic impact analysis compiled by Dr. Frank Hefner at the College of Charleston estimates that, for an initial 2,000 in direct jobs, more than 8,000 total jobs would be created as a result. Operating with 2,000 employees, the plant would contribute approximately $4.8 billion in total economic output on an annual basis, according to Hefner.

When asked if Orangeburg County was ever on Volvo’s list of potentials locations and, if so, why the county was not selected, Robinson said population density was one factor.

He said demographic data show population density within a 30-minute (drive) radius of Orangeburg at about 200,000 people compared to 750,000 within a 45-minute radius.

Middleton said while Orangeburg County did not “make the short list” for Volvo’s desired location, it matches up “perfectly well” for spin-off opportunities.

“There are very few mega-parks available in the country, much less in the state,” Middleton said, referring to the Santee Jafza Magna Park. “We should get spin-off suppliers that would be within 10 to 15 minutes away (from the Volvo plant site). Over time, that will have the greater impact.”

Middleton said the county already has one example of how large a manufacturer – Boeing in North Charleston – can benefit it. GKN Aerospace and Sigmatex have made their home in the county, partly because of Boeing.

Wright, whose council district is in the eastern part of Orangeburg County and closest to the where the Volvo plant will be built, says many of his constituents already drive to Charleston for work. Berkeley County is even closer than Charleston.

“We are so close (that) any other suppliers or anybody that is coming to supply that kind of plant will be looking for properties less expensive than in Dorchester County,” Wright said, adding the county has Jafza Magna Park, the John Matthews Jr. Industrial Park and adequate infrastructure in place.

“I think 2015-2016 will be a better time,” he said. “We have to stay positive for our time to come.”

State Sen. John Matthews Jr. says Volvo’s announcement is the “largest investment that has ever been made in District 39.”

“I really believe this can be a game-changer, especially for lower Orangeburg around the Holly Hill and Eutawville area,” Matthews said. “Normally, the job search is 35 miles, which will take in all of eastern Orangeburg County.”

Matthews said Volvo has a proven track record of producing “quality jobs” and of productivity.

“One of our big problems is to improve per capita income, and paying this investment and paying the wages they are going to pay, it will improve the quality of life for families and for children,” the senator said.

He said the John Matthews Jr. Industrial Park, named for him near the interchange of U.S. 301 and U.S. 176, would be ideal as a location for Volvo suppliers.

“It would be a great place to put a supplier,” Matthews said, noting that while a 75,000-square-foot speculative building is being constructed, there needs to be more. “Four out of five industries want an existing building. It is an issue council is beginning to address. I think they will continue to do that.”

Middleton said the Orangeburg County Development Commission is looking for investors, both public and private, for speculative building construction.

“The wise money says it may be time,” he said.

Currently, the county has less than 100,000 square feet of building space.

“We need to build another one (speculative building) at the Orangeburg County/City Industrial Park, if not two,” Robinson said.

Wright said Orangeburg County “is doing all we can” to help provide the available product or building space for potential new companies.

“We have a lot of irons in the fire,” he said, noting the county is paying down the number of debts from the infrastructure it has put in place to help attract more industries. He said with a larger labor pool potential and tax base, future infrastructure debt should be more quickly paid down.

Wright is also optimistic that the interest of private partners will increase when they see the expansion of Boeing and Volvo.

Pat Black, Calhoun County Development Commission executive director, said the Volvo plant will be less than 40 miles from Calhoun County and will provide the county with opportunities to attract suppliers.

“There is plenty of room for automotive support and supplier companies,” Black said, noting the impact of Volvo could have ripple effects much like BMW, Boeing and Starbucks. “All suppliers cannot open at the front gate of the plant.”

He added, “Suppliers can cut transportation costs because Interstate 26 and U.S. Highway 176 are major traffic arteries that connect Calhoun County to the Volvo site. The opportunity is there if we seek it out.”

Black said Calhoun County residents will have an opportunity to “work at a world-class automobile plant” while continuing to enjoy “the rural amenities” of the county.

“County lines don’t matter anymore,” he said. “People commute.”

For more information on open positions and the application and training process, visit the readySC portal at www.readysc.org/Volvo/.

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