The Times and Democrat - World-class company' calls South Carolina home

CHRISTOPHER HUFF/T&D Lennox executives join local and state government and economic officials in breaking ground for Lennox International's expansion project Thursday at the Orangeburg County/City Industrial Park.

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World-class company' calls South Carolina home

Allied Air celebrates expansion of Orangeburg operations

By GENE ZALESKI, T&D Staff Writer
Thursday, June 22, 2006

n sweltering heat, climate-control giant Lennox International Inc. officially announced and broke ground Thursday afternoon on its Allied Air Enterprises expansion in Orangeburg and the state.

Company, state and local economic development and political leaders descended upon the Orangeburg County/City Industrial Park located on U.S. 301 near Interstate 26 in a celebratory mood.

"We are building the future here," said Bob McDonough, president and chief operating officer of Lennox International Worldwide Heating & Cooling. "We have decided to do this because of the great experience we have had working here for the last six years. Simply put, South Carolina is a critical part of our company's future."

With the sights and sounds of bulldozers moving dirt in the background, McDonough said Allied's expansion means a "major growth opportunity."

"We will continue to invest in this business, in this community," he said. "We look forward to providing a lot of long-term jobs and opportunities for families here."

Allied Air announced it will consolidate manufacturing and distribution operations into its existing Orangeburg and Blackville manufacturing facilities. A total of about 200 full-time jobs will be created at the two plants in the consolidation, most of which will be full-time and hired locally.

Lennox officials said the employment breakdown between the two facilities is not yet clear.

The company expects to add a gas furnace line to its existing Orangeburg facility in July. The company's Magic-Pak combination heating/cooling product line is expected to begin production in Orangeburg in August, with another line being added in October.

Also, the company will construct an $11 million, 238,000-square-foot warehouse addition in Orangeburg County. The facility is expected to reach completion by the first quarter of 2007.

The additions will bring Allied Air's total square footage in Orangeburg County to about 775,000 square feet. The expansion will bring the entire park's square footage to over 1 million and employees to more than 1,000.

The company's Blackville plant will house the oil furnace line.

"We've made a large investment in South Carolina over the past six years, but this move now means 100 percent of our businesses will be located here," said Dan Seaman, vice president and general manager of Allied. "South Carolina will be our manufacturing and our headquarters home."

Joking about the hot and humid conditions, Seaman said when shipping Allied products, he would like to send the Orangeburg heat as well.

"It would be awfully good for business," Seaman said.

To help attract Allied Air, Orangeburg County will be providing various incentives, though development officials say the incentive package is not yet complete and was not ready for release Thursday.

As part of the consolidation, the company will close its operations in Bellevue, Ohio, affecting approximately 400 jobs there. Company officials say the lines will be moved from Bellevue in a phased process to minimize disruptions to customers.

About 150 salaried positions were at the Bellevue plant, which the company will close by the end of the first quarter of 2007.

Employment in Orangeburg will include assembly positions, press and machining operations, maintenance, plant supervision and support staff. Salaries will be competitive, say company officials.

"We're adding new jobs throughout the rest of 2006 and have already begun recruiting, hiring and training," said Steve Wolfe, human resources director.

"Some people here may have the perception Allied has been concerned more with temporary hiring in South Carolina," he said. "By consolidating all our operations here, we are definitely focused on full-time local career opportunities to help support our current and future growth."

In addition, as many as 120 people could be employed at the company's new Lexington/Columbia facility, which will house its administrative and research and development offices.

More than 22,000 square feet of office space and 40,000 square feet of R&D space, including test laboratories, will be housed in a facility at the CAE industrial park near the Columbia airport.

The facility is expected to be completed by the end of 2006.

The consolidation, including capital investment, will cost approximately $30 million to complete.

Orangeburg County Development Commission Executive Director Gregg Robinson touted Allied Air's investment in Orangeburg and the state as symbolizing its intent to make Orangeburg and South Carolina its home.

"This has a lot to say about what Orangeburg County can do when it comes together with its city," Robinson said. "It is very important to note that this is both a county and city industrial park. The state of South Carolina has Orangeburg County close to its heart when it allows for industrial growth. We have created very fertile soil for companies to be successful and make a profit in Orangeburg County."

Lennox initially cut the ribbon for its Allied Air Enterprises Inc. plant in 2000, becoming the first tenant of the OC/CIP. The Allied Air facility employs about 350 people.

Since its arrival to Orangeburg County, Allied Air has contributed between $212,000 and $274,000 annually to the county in taxes.

About 400 are employed at Excel Comfort Systems in Barnwell County. Several manufacturing lines were transferred from Bellevue to the Blackville plant between 2000 and 2002.

The company says the consolidation will mean charges of approximately $20 million pretax, or approximately $13 million after-tax, and will lead to estimated annual savings of approximately $12 million pretax beginning in 2007.

Local praise

"We are here celebrating the growth of one of our family," said Jeannine Kees, OCDC chairwoman. "We agree with you that Orangeburg County is a great place to live, work and play. Today, we are here to celebrate that."

Orangeburg County Council Chairman John Rickenbacker said the "sleeping giant" of Orangeburg County economic development is up, dressed and running into the future.

"We love you, we want you to stay here forever," Rickenbacker told company officials. "We are looking forward toward a tremendous future. This is just the tip of the iceberg. This is a dream team at work. We know what we are trying to do and that is to enhance the quality of life in Orangeburg County."

Orangeburg Mayor Paul Miller recalled the initial groundbreaking ceremony for Allied Air about six years ago and how far the company has come over the years.

"This is a wonderful thing for our community, to have a company with the class of Allied Air to come here and to continue help us fill up this industrial park," Miller said.

"I have always told people that Orangeburg County is a good place to work, a good place to live, but it is also a good place to make money," said Sen. John Matthews, D-Bowman. "This shows you what can be done when a team works together and is focused on the issues in building opportunity in our county."

State praise

Michael Briggs, president and chief executive officer of the Central South Carolina Alliance, cited Orangeburg's county "spirit and attitude" in helping bring economic development to the area.

"Allied Air is a world-class company," he said. "This is an All-American County. That is a good match. Companies do not build new buildings or hire new employees where they are not succeeding. They are here because it works."

Former OCDC Executive Director Hal Johnson, who was in attendance and one of the players in bringing Allied Air to Orangeburg County six years ago, compared Allied's growth to seeing a child grow.

"You remember the first days of the speculative building," Johnson said. "The first time we showed Allied Air ... the entrance road was still dirt. From that day we knew we had somebody interested in a community showing an investment in itself."

"This double announcement of new job creation and investment is another step in our efforts to raise income levels and create job opportunities for South Carolinians," Gov. Mark Sanford said. "We remain committed to continue growing our economy through bettering the soil conditions for business creation in our state."

Secretary of Commerce Joe Taylor praised OCDC officials for making the groundbreaking possible.

"It's a special day in our state when a company announces simultaneously it plans to expand an existing manufacturing facility and relocate R&D facility to the area," Taylor said. "Allied Air's news today just further demonstrates our strengths as a prime location to meet all its business needs."

Allied manufactures and markets the Armstrong Air, Ducane, AirEase, Magic-Pak and Concord brands of air conditioning and heating equipment, sold primarily through wholesale distribution to HVAC, plumbing and other dealers and contractors.

Lennox's Worldwide Heating and Cooling business segment reported over $2.2 billion in net sales worldwide in 2005.

Lennox International Inc. operates in more than 100 countries. Its stock is traded on the New York Stock Exchange under the symbol "LII".

T&D Staff Writer Gene Zaleski can be reached by e-mail at gzaleski@timesanddemocrat.com or by phone at 803-533-5551. Discuss this and other stories on-line at TheTandD.com.

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