Heinz brand a coup for Pee Dee

Another Fortune 500 company is moving into the Pee Dee with the arrival of H.J. Heinz Co.

“From one perspective, any time you have a nationally known company, it gives rise to the area,” said Jeff McKay, executive director of the North Eastern Strategic Alliance. “It makes people wonder why they chose the area.

“I honestly believe it will put an antenna up to other companies that may consider coming to the area,” he said. “The bottom line is that a person is going to come to the area because they believe it’s going to make them money.”

Some think the new facility will raise Florence County’s national profile while adding something new to the Pee Dee’s economic portfolio.

BIG INDUSTRY, BIG INVESTMENTS

Here are some major investments companies have made in Florence County:

H.J. Heinz Co. (2008)
Expected investment: $105 million
Expected jobs: 350

Roche Carolina — Florence (1995)
Investment through Dec. 31, 2006: $616 million
Current jobs: 308

Nan Ya — Lake City (1996)
Investment through Dec. 31, 2006: $200 million*
Current jobs: 860

Honda Manufacturing of South Carolina Inc.— Timmonsville (1998)
Committed investment: $25 million
Actual investment through Dec. 31, 2006: $130 million
Committed jobs: 490 (currently 1,625)

QVC — Florence (2006**)
- Committed investment: $74 million
- Committed jobs: about 600 (currently 200)

Johnson Controls — Florence (2006**)
Committed investment: $35 million
Committed jobs: 200 (currently 150)

*Does not include investment prior to fee-in-lieu-of-tax agreement date
**Property not placed into service until 2007

— SOURCE: Florence County Finance Department

“The fact that they are bringing in product manufacturing makes for a good mix to go aside all the distribution in the area,” said Dr. Joe Aniello, executive director of the Francis Marion University Donald E. Kelley Small Business Institute. “An economic base is best when diversified and, in order to maintain strong economic growth, going forward, you don’t want everything to be the same.”

Aniello said the expansion could bring a similar industry to the area looking for a successful place to invest.

“To sustain growth over a long period of time, you need that vertical and horizontal integration,” he said. “Everyone has to eat, and it’s a really good blue-chip company and product line to have.”

Dr. Donald Schunk, a research economist at Coastal Carolina University in Conway, said the announcement shows that manufacturing is still prominent in the region.

“(This development) speaks to a few different things,” Schunk said. “The fact that they are expanding in Florence with a $100 million investment, that’s a pretty sizeable figure, and part of the explanation is because of the good transportation in the area.”

Schunk said highway access, along with much land available near highways, are two reasons companies like Heinz are drawn to this part of the Southeast.

The Heinz facility is expected to create 350 jobs, to include full- and part-time positions.

Connie Ford, Florence area director of the S.C. Employment Security Commission, said it’s welcome news.

“The Pee Dee area has experienced closures and layoffs in the past few years, so this announcement will be welcome news for workers,” she said. “The company will have a strong labor pool to choose from.”

The latest unemployment figures released in mid-May showed Florence County tied with Spartanburg County for the state’s No. 28 unemployment spot. Florence County’s unemployment rate decreased from 5.8 percent in March to 5.7 percent in April.

“Florence County had over 3,000 people in April that were unemployed,” Ford said. “Three hundred jobs will make a positive impact on people who are unemployed and those seeking better jobs.”

The 225,000-square-foot facility that will be situated on 49 acres in Pee Dee Electric Cooperative’s Touchstone Energy Commerce City, near Interstate 95 and S.C. 327, also would bring suppliers closer to their demand.

“Suppliers are going to want to be closer to the end that uses the products,” McKay said, “especially with transportation costs and things like that. This could lead to some other aspects of the production of the products being done locally, as well.

“You really just never know what could come of such an expansion.”