ACO Distribution & Warehousing Inc. Thursday afternoon celebrated the opening of its warehousing operations in the former Velcorex Inc. and Greenwood Mills facility on Rowesville Road.

"We have been through a lot of humps to get to this part. It has not been easy," ACO vice president of sales Russell Arnold told state and local officials gathered at the Orangeburg County Development Commission headquarters for the press conference. "To find one (a building) with rail service is very scarce. We finally found one here in Orangeburg."

And, for the family-owned distribution and warehousing operation, rail access is key.

"What we plan on doing is operating an inland port facility," said Arnold, adding that the company looks to support domestic products and conduct an import and export operation.

ACO plans to invest $3.7 million and bring 14 jobs within two years. Job wages will be higher than the county's average wage rate of $12 an hour. The former Velcorex building, which closed in July 2005, will provide 388,000 square feet of warehousing space.

ACO will have 12 loading docks, more than 100 acres of container storage and access to the Norfolk Southern Rail Service line with a rail spur. The rail spur, which ACO plans to extend within the next 90 days, will have an overhang and dock for easier shipping.

The entire 172-acre property is fenced.

Russell is joined by brother Randy, vice president of operations, and father Rod as the partners in the business.

"We are really proud to be here in Orangeburg County," said Randy Arnold, noting that the area's trademark Global Logistics Triangle and interstate access as reasons for locating in Orangeburg. "Rail, distribution and warehousing services with excellent access to the market is what we offer out of this new facility."

The company will offer general merchandise storage, shipping and receiving, import/export services, stretch and shrink wrap services, inventory control and other inventory-related functions.

Short-term and long-term lease options will be available.

ACO will also cross-dock cargo from transportation modes including truck and rail.

As ACO attracts more customers, Russell Arnold said there is opportunity for growth to house additional storage or parking space.

Tapping into this potential, ACO plans to expand its facility, extend the existing rail track and construct an unloading dock with a building enclosure of approximately 15,400 square feet.

When asked what the ideal customer would be for ACO, Arnold said, "Right now, anybody," to a chorus of laughter.

On a more serious note, Arnold said a company that is currently doing all their storage, shipping and handling and packaging would benefit from ACO's services. ACO would cover all such services.

He said currently there several customers who have already quoted warehouse space. Contractual arrangements are currently being considered, he said.

Arnold said entering the warehouse distribution business has been a five-year process. The company has been in the paper storage and paper manufacturing business, and its growth has required the need for additional warehouse space.

In addition to Orangeburg, ACO looked locating in Yemasee, where it has some property. The company also looked in the St. George area and in Georgia for property.

"There are not any existing buildings available anywhere in the Southeast that we are aware of,' Arnold said. "The rail is worth the cost of the building."

Orangeburg County Development Commission Executive Director Gregg Robinson said ACO's impact will be felt beyond Orangeburg.

"ACO will give us the ability to recruit even additional companies that benefit from our area," Robinson said. "This is an ideal location for Fortune 500 companies and other private sector ventures to take advantage of warehousing and close proximity to the port of Charleston."

"This facility is not just 14 jobs, but this facility has the ability to bring a significant impact to our region," he continued. "And every small project ... is very important because these are the future gazelles of the community."

OCDC chairperson Jeannine Kees expressed her pleasure that outside companies have heard Orangeburg's song.

"We have been talking a lot of times about how Orangeburg County is the perfect spot for distribution, and I think this says what we have thought. We now have proof of that, and someone else has seen it,"

Orangeburg County Council Chairman Harry Wimberly praised ACO for transforming a vacant building for its purposes.

"We hope for much success," Wimberly said. "My hope is for a long and prosperous endeavor as they enhance the quality of life in Orangeburg County."

ACO's arrival to Orangeburg also received statewide praise.

Hal Stone, South Carolina Department of Commerce senior project manager of global business development, said the former Greenwood Mills building has always been a crown jewel in the area waiting to be seized.

"This just goes to show you that you always have something somebody is looking for," Stone said. "If you market it enough and hang in there long enough, somebody will come along and want it."

Stone presented the Arnold family a state flag to fly at the facility.

"It has been a long time since a flag has flown at that building," he said.

"Today's announcement is further evidence that the strengths of our economy are producing results," South Carolina Commerce Secretary Joe Taylor said. "Our state's business-friendly climate, quality infrastructure and access to markets make the Palmetto state a great place to live and work."

George Bullwinkel Jr., Central South Carolina Alliance chairman, expressed excitement about ACO's arrival.

"It's exciting to see an unoccupied building being up-fitted for this project," Bullwinkel said. "Our goal is to attract companies that will improve the standard of living for the people of Central South Carolina."

For more information about ACO, call 803-534-1927.

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 online at TheTandD.com.

A building with a storied past

ACO Distribution & Warehousing will occupy one of the facilities formerly occupied by the Orangeburg textile giant Greenwood Mills.

Greenwood Mills closed two of its plants in 1988, putting more than 700 people out of work.

Built in 1969, the Edisto Plant was purchased by Greenwood in 1973 from M. Lowenstein and Sons. The plant closed in August 1988 as part of a phase-out of Greenwood's print finishing division.

The Liner Plant, bought by Greenwood from Monsanto Corp. in 1968, was closed in September as part of a major restructuring of the company. Officials attributed the closing to "continuing deterioration of the finished goods market."

The Liner plant was vacant for a good portion of 15 years before being purchased by Atlanta-based Southern Sales and Marketing Group Inc.

The company began shipping and distributing operations of its Southern Patio products at the facility about four years ago.

The Edisto Plant was purchased from Greenwood Mills in 1989 by Fashion Fabrics, a rayon-printing subsidiary of the international corporation Dolfus-Meig and Co.

Fashion Fabrics printed materials for companies such as Liz Claiborne, Carol Little and Banana Republic. Fashion Fabrics then changed its name to DMC Prints Inc. in an effort to better align itself with its parent company.

In 1999, DMC Prints Inc. closed its fabric printing operations, yet maintained its finishing and dyeing procedures.

Societe Anonyme d'Industrie Cotenniere was founded in Mulhouse, Alsace, France in 1828, with a specialty in cotton trade and threads. In 1970, SAIC grew and launched the sportswear market and the Velcorex brand. The company then became SAIC Velcorex.

In 2003, Velcorex developed a production platform in South Asia.

In June 2005, Velcorex closed its dyeing and finishing plant.

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