LEE COUNTY ECONOMIC DEVELOPMENT CORPORATION Southern Base of the Research Triangle Region NEWS RELEASE FOR IMMEDIATE RELEASE Thursday, November 14, 2002 Contacts: Bob Heuts, Director Jane Haber, Administrative Assistant 919-774-8439 (phone) 919-775-5410 (fax) info@lcedc.com (e-mail) Media Web: http://www.lcedc.com/media/ This release: http://www.lcedc.com/media/releases/nr111402.txt STATIC CONTROL ANNOUNCES NEW WORLDWIDE DISTRIBUTION CENTER AFTER PURCHASING EATON BUILDING SANFORD -- Static Control Components Inc. has announced plans for a new state-of-the-art, worldwide distribution center, after recently purchasing an industrial plant formerly occupied by the Eaton Corp. According to manufacturing manager Bill Manning, Static Control has already signed contracts to purchase the 93,000-square-foot building on Lee Avenue in the Jonesboro section of Sanford. Closing is scheduled for later this month. The distribution center could be operating as early as the end of the first quarter of next year, Manning said, after Static Control's own construction, electrical and plumbing crews renovate the facility. When finished, the center will distribute more than 4,000 products produced by Static Control's Imaging Supplies Division -- including toner and laser printer toner cartridge components -- using the latest barcoding and warehouse management system. The technology allows much of the warehousing inventory control process to be done automatically. As finished products enter the plant in boxes for distribution, container barcodes are scanned into a computer and boxes are assigned locations automatically and moved into storage racks. When products are needed to fill a customer order, the computerized management system determines which boxes should be retrieved and notifies associates where they are located in the warehouse. The result: Static Control associates can verify orders and calculate freight costs for customers immediately when the order is received, and customers receive quicker and more accurate service. Tracking the location and status of each box instantly in a computerized system also allows immediate access to the status of each order and exact amount of inventory on hand. All Static Control imaging customers worldwide will be served by the new center, whether products are shipped directly to the consumer from Sanford or supplied through one of the company's satellite or affiliated distribution facilities. Ed Swartz, president and chief executive officer, said the new distribution center is needed for Static Control to continue its steady growth. Even in the last two years, with a depressed national economy, Static has enjoyed double-digit growth each year. Growth also has been good for the entire community. Bob Heuts, director of the Lee County Economic Development Corp., said what Static Control has accomplished is remarkable. "Growing like they have in a soft economy is almost unbelievable," Heuts said. "In the process, they have expanded their payroll, helping local families, and enhanced the community through business taxes. Their success been good for the entire area." The company has been successful in economic turmoil by developing its market and responding to customer needs. Manning said Static Control has introduced 500 new products annually for the last three years -- about 10 new products each week. And that figure may balloon. In the past 18 years, according to Swartz, Hewlett-Packard has sold 250 million printers. But the computer giant is now predicting the same number of printers will be sold in just the next three or four years. Since the new printers are faster, they will consume many more cartridges like those sold by Static Control's customers. The rise in printer sales will definitely result in new cartridge products and greatly increase sales for Static Control. Announcement of Static's new distribution center came after company officials spent 18 months deciding how to handle future growth. Though several options were considered, one thing was certain: the company was dedicated to operating locally. "Static Control welcomes the opportunity to provide much-needed jobs in a depressed economy and repay the community," said Swartz. "We appreciate the commitment elected officials have made to our company." Static Control's purchase and renovation of the former Eaton building also continues to enhance the appearance of Lee Avenue, where the company already operates seven facilities. Santronics, another, is located just off of the thoroughfare. "It's always been our policy to make the inside and outside of our facilities presentable and that certainly will continue with this building," said Swartz. "We want to continue being an asset to the city and county." The company that began 18 years ago in Swartz' basement has grown to employ more than 1,100 associates locally and now offers an extensive portfolio of electronic instruments, electronic products and imaging components and supplies. Static already operates in 19 buildings around Sanford and through dozens of sales and distribution facilities around the world. Static Control includes three distinct business units. In addition to the Imaging Supplies Division, the company operates an ESD Products Division, now the world's largest manufacturer of static shielding and moisture barrier bags used to protect computer chips and other sensitive electronic components. The division also manufactures dozens of static protective grounding products. Santronics Inc., youngest of the three business units, manufactures innovative electronic testing equipment -- including the company's patented AC voltage sensor, a safety device used to detect voltage from outside a power source. It also produces keyless entry testers, relay testers, short finders and other products under its own name, as well as private labeling for major international companies like Fluke and Snap-On. In recent years, Static Control has received several accolades, including the 1998 Entrepreneurial Company of the Year GovernorŐs Award, 1998 GovernorŐs Award for World Trade Success and 2000 Electronic Company of the Year by the North Carolina Electronic and Information Technology Association. The company now ranks 11th on The (Raleigh) News and ObserverŐs annual list of top technological industries in the Triangle region and was named 22nd among North CarolinaŐs 100 largest private companies by Business North Carolina magazine and Arthur Anderson. Swartz said Static Control will soon receive another award from a recognized technical association. The formal announcement will be made later this month by the trade association and the Lee County Economic Development Corp. -- 30 --