Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, December 20, 1994 TAG: 9412200076
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: GREG EDWARDS STAFF WRITER
DATELINE: LENGTH: Long
Plant Manager Bill Johnson made the announcement at the company's plant in the Roanoke Centre for Industry and Technology, where there were two other announcements concerning industrial development.
John W. Moticha Jr., vice president of operations for the Orvis Co. Inc., a mail-order retailer of sport clothing and fly-fishing equipment, announced it will buy 10 acres in the park for the second expansion of its distribution warehouse. Although plans for the expansion are not complete, the addition of space to the warehouse is "a foregone conclusion," Moticha said.
Additionally, Roanoke officials said that the city will begin work after Jan. 1 on a second phase of development of the park.
The industrial area has no available building sites, but the city acquired 140 adjacent acres in 1990 for $2 million. The first step toward developing that land will involve grading at a 19-acre site immediately west of Vitramon.
The Vitramon expansion will increase the plant's floor space by 19 percent and space in the front end of the plant where the initial work on the capacitors is done by 50 percent. The work, which began recently, is being done by J.M. Turner Construction Co. of Roanoke, which built the last expansion.
The company, which has been in Roanoke since 1987, completed a $21 million expansion of its original plant just a year ago. Vitramon's total capital investment in Roanoke will rise to $55 million with the latest addition, Johnson said.
Staffing and equipping of the 1993 expansion is 75 percent complete, he said. The company is filling 75 to 80 new jobs, not including the jobs the newest addition will create. The net effect will be a total work force of 580 when all the hiring is done. Average pay at the plant is roughly $7 an hour.
Once the expansion announced Monday is complete, the plant's production will increase from 40 million to 75 million capacitors per week, Johnson said.
The Roanoke Vitramon plant sells primarily in North America. The big three U.S. automakers are among its biggest customers. The plant is the top supplier to Ford Motor Co. and Chrysler Corp., Johnson said. The capacitors store and regulate current in electronic circuits to control various equipment on cars.
The plant expansion announced Monday will allow Vitramon to produce capacitors that will be exported to northern Israel for packaging to help a new company plant there get off the ground, Johnson said.
The Vitramon expansion is being paid for by Vishay Intertechnology Inc. of Malvern, Pa., which bought Vitramon in July for $184 million. Vishay had sales last year of $856 million.
The city redevelopment and housing authority will contribute to the expansion, providing $150,000 for Vitramon to expand its parking lot.
Orvis is experiencing a 30 percent increase in its annual sales, Moticha said. Although postal rate increases could slow the growth of Orvis' catalog sales, the company expects its retail and dealer business to accelerate, he said.
The company is just buying 10 additional acres at this point, Moticha said, adding "It's a foregone conclusion we're going to have another major expansion."
Orvis opened a 135,000-square-foot warehouse in the Roanoke industrial park in spring 1987 and recently completed a 100,000-square-foot addition. The company had almost doubled its inventory this year to keep its customers happy, Moticha said.
Employment at the Orvis warehouse during this holiday season is roughly 700. At other times, employment averages 500, up from 400 in 1990. Moticha said he expects employment to grow by as much as 15 percent per year.
The city's plans for the initial work on Phase II of the park will create a 19-acre developable site and also provide more space for Vitramon to expand, said Phil Sparks, the city's acting director of economic development. The work will involve leveling a hill and moving 215,000 cubic yards of dirt, some of which will go to both the Vitramon and Orvis properties to help fill areas for future expansion.
The goal is to provide a ready site for development because, in many cases, businesses do not want to wait for up to four months for a site to be graded, City Manager Bob Herbert said. Sewer lines already have been extended into the Phase II area and water is within 1,000 feet. A new water holding tank will be ready by February and should increase water pressure to existing businesses as well as serve new businesses.
Businesses in the park employ 2,000 people and generate more than $1 million a year in revenue for the city, Herbert said.
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