Caroline County got one step closer yesterday to reaping the benefits of one of its largest business investments ever.

McKesson Corp., a pharmaceutical and medical supply company that announced its plans this summer for a distribution center in Caroline, held a groundbreaking ceremony yesterday to officially introduce its company to the area.

A group of McKesson employees, along with county and state dignitaries, visited the 35-acre site in the Carmel Church area where the 340,000-square-foot distribution center will be located.

The center is expected to open by 2012, creating approximately 150 jobs and more than $500,000 in annual tax revenues for the county.

Chris Smith, a McKesson vice president, said the facility features "one of the most efficient and advanced material handling systems in the nation.

"This state-of-the-art facility will allow us to more effectively serve our growing customer needs while bringing jobs," he added.

A McKesson recruiter said the company will be looking to hire people in the Fredericksburg area for machinery and warehouse positions.

Caroline officials began working on a deal with McKesson in 2007, eventually beating out Spotsylvania County for the facility. Caroline is contributing up to $380,000 from the county proffer fund to improve infrastructure at the site and reimburse development fees.

"The building of a McKesson distribution center in Caroline marks one of the largest business investments ever made in Caroline, and it will, upon opening, be one of our largest employers," Caroline Board of Supervisors Chairman Maxie Rozell said yesterday. "The McKesson investment is also one of the best industrial investments in all of Virginia in 2010."

Based in San Francisco, McKesson was ranked 14th on this year's Fortune 500 with revenues of $106.6 billion. It is the nation's largest pharmaceutical distributor, supplying more than 40,000 U.S. customers, including retail stores and hospitals.

The company also develops software that helps hospitals keep track of prescriptions and medical records electronically.

Portsia Smith: 540/374-5419
Email: psmith@fredericksburg.com