Service Center Metals: From Greenfield Startup to National Aluminum Extrusion Leader at SouthPoint Business Park
Service Center Metals launched in 2002 as a greenfield aluminum extrusion startup in Prince George County, Virginia. The Hollingsworth Companies backed the company as one of its first equity investors and its real estate partner at SouthPoint Business Park. Within ten years, SCM had become a national industry leader.
At a glance
| Client | Service Center Metals |
|---|---|
| Industry | Aluminum extrusion (rod, bar, shapes, tubing) |
| Location | SouthPoint Business Park, Prince George County, VA |
| Founded | 2002, operations began 2003 |
| Hollingsworth role | First round equity investor, board member, real estate partner |
| Buildings developed | Three buildings, grown through four expansions from 77,500 SF in 2003 to 426,000 SF, all later purchased by SCM |
| Campus | 30 acre campus at SouthPoint Business Park |
| Outcome | National industry leader within 10 years; 247 employees and roughly $225 million in annual revenue by 2019; $101.7 million expansion announced in 2021 creating 94 new jobs |
Who is Service Center Metals?
Service Center Metals is an aluminum extrusion manufacturer based in Prince George County, Virginia, producing rod, bar, shapes, and tubing for service centers across the country.
Founded in 2002 by a team led by President and CEO Scott Kelley, SCM began operations in 2003 and grew into one of the most efficient extruders in North America. The company is vertically integrated, operating extrusion presses alongside a Compact Remelt billet casting operation that recycles aluminum scrap into new billet.
What did Service Center Metals need at startup?
As a pre-revenue greenfield startup, SCM needed three things at once: capital, a site that could support heavy manufacturing, and a partner willing to move at startup speed.
Greenfield manufacturing startups face a chicken and egg problem. Lenders and landlords want operating history. Startups cannot build operating history without a plant. Most developers walk away from that profile. Hollingsworth leaned in, delivering SCM's first building, 77,500 square feet at 5850 Quality Way in SouthPoint Business Park, completed in 2003 and designed from the start to expand to nearly double that footprint.
How did The Hollingsworth Companies help?
Hollingsworth committed on both sides of the balance sheet: Joe Hollingsworth invested as one of SCM's first equity investors and served on its board, while the company provided SCM's home at SouthPoint Business Park in Prince George County.
That combination is rare in industrial real estate. A partner with equity in the tenant's success does not behave like a typical landlord. Joe Hollingsworth served as a board member and advisor on strategic planning and direction as the company scaled.
On the real estate side, Hollingsworth developed three buildings for SCM at SouthPoint Business Park as the company grew: 77,500 square feet in 2003, another 76,490 square feet in 2005, and a 271,819 square foot building at 6000 Quality Drive. Each was designed with expansion in mind, and SCM ultimately purchased all three. More than 425,000 square feet, from a standing start.
What were the results?
Within ten years of its greenfield start, Service Center Metals had become a national industry leader in aluminum extrusion, and it has kept growing since.
By 2019, the company that started as a business plan and a graded pad employed 247 people and generated roughly $225 million in annual revenue, and its campus had grown through four expansions from 77,500 square feet to 426,000 square feet, including the world's largest horizontal casting operation. In 2021, SCM announced a $101.7 million expansion in Prince George County expected to create 94 new jobs, including a new extrusion plant and a Compact Remelt billet casting operation. Two decades in, SCM is one of the anchors of Virginia's manufacturing economy.
Joe Hollingsworth participated as one of our first equity investors. In addition, Joe Hollingsworth has served as a board member and leading advisor for strategic planning and direction.
From greenfield startup to becoming a national industry leader 10 years later, Hollingsworth continues to play an invaluable role in Service Center Metals growth and success.
It was an absolute pleasure investing in and developing for Service Center Metals and supporting their efforts to become the world's most efficient aluminum extruder.
Service Center Metals' tremendous growth and expansion has contributed to our employment opportunities, tax base, and community pride.
Frequently asked questions
What kind of company is Service Center Metals?
Service Center Metals is an aluminum extrusion manufacturer in Prince George County, Virginia. It produces rod, bar, shapes, and tubing, and operates a billet casting plant that recycles aluminum scrap.
What was The Hollingsworth Companies' role with Service Center Metals?
Hollingsworth was one of SCM's first equity investors, and Joe Hollingsworth served as a board member and strategic advisor. Hollingsworth also developed three buildings for SCM at SouthPoint Business Park in Prince George County, Virginia, totaling more than 425,000 square feet, all of which SCM later purchased.
Can a tenant eventually own a building Hollingsworth develops?
It has happened. Service Center Metals purchased all three of the buildings Hollingsworth developed for it at SouthPoint Business Park. Hollingsworth is a long term holder by default, but the SCM relationship shows what a decades-long partnership can look like.
Does Hollingsworth work with pre-revenue or startup manufacturers?
Yes. SCM is the proof. Hollingsworth is family owned and makes its own decisions, so it can back a well funded startup on speed and structure that institutional landlords typically cannot.
Where is SouthPoint Business Park in Virginia?
SouthPoint Business Park is located in Prince George County, Virginia, in the Richmond / Petersburg region.