Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, June 29, 1994 TAG: 9406290128
SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY
SOURCE: By STEPHEN FOSTER STAFF WRITER
DATELINE: CHRISTIANSBURG LENGTH: Medium
In a news conference at the Montgomery County Courthouse, company Chairman Robert Stverak and Board of Supervisors Chairman Larry Linkous signed the contract enabling South Star to purchase 3.21 acres in the Elliston-Lafayette Industrial Park.
``I see we write a lot alike,'' Linkous joked.
The purchase - at $22,470 - means that South Star will be able to build a 20,000-square-foot building and move its operations by December.
``We're looking at expanding our markets,'' Stverak said. ``The site we have is now full ... so we had to go find a spot.'' The company employs 47 people, 33 of whom live in Montgomery County. Stverak said it took in revenues of $2 million to $3 million last year.
It is projecting additional hirings of up to 50 people in the next two years.
``Talk about job creation. ... What we have to do is take some of the work away from our competition out of state and bring some of it here,'' Stverak said.
``We're not moving into a new building to not have it full,'' he said after the news conference.
The building, with about 14,000 square feet of manufacturing space and 4,000-5,000 square feet of storage space, will be about a 250 percent space increase for the company, Stverak said.
The company makes wiring harnesses, cable assemblies, instrument panels and a variety of electrical, mechanical and electronic assemblies. Stverak said the recent expansion announcement of Pulaski's Volvo GM Heavy Truck, one of its customers, was partly a reason for South Star's expansion and relocation. He also cited the Motgomery County employees - ``good labor force, good people'' - as an influencing factor.
South Star and the Montgomery County Department of Economic Development began working toward the agreement in April.
Department Director Don Moore said the fact that the company ``knew what they wanted'' enabled the quick turnaround.
``We're very pleased to have industries such as this move into this county,'' said Dwayne Kittle, chairman of the Montgomery Regional Economic Development Commission.
The county, in providing incentives to lure South Star, agreed to sell the land at $7,000 an acre, discounted from $10,000. The Virginia Department of Transportation will build a new road to the site this summer, and the county will extend water and sewer lines to the property and waive connection fees.
Roanoke Gas Co. has agreed to provide free gas service to the site.
The 16-year-old company considered expanding at its current location, and looked at existing buildings. But ``My wife said, `Why don't you build one like you want?''' Stverak said.
``This turned out to be the better location for all the good reasons,'' he said. As for the company's current location near Dixie Caverns, he said, ``We'll have a building for sale shortly.''
by CNB