Northern Ohio Daily Manufacturing News Roundup

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Week 12, March 14-20, 2009

Friday, March 20

Chrysler, GM issue one-week layoffs at local plants, by Larry P. Vellequette, Toledo Blade, March 20, 2009
Toledo—Hundreds of workers at General Motors Corp.'s Toledo Powertrain Plant and Chrysler LLC's Toledo Machining Plant in Perrysburg Township will be laid off again next week, the latest in a recurring string of temporary layoffs by domestic automakers made necessary by slow sales.


Warren-area tire manufacturer seeks government funding for its turn-around plan, by Don Shilling, Youngstown Vindicator, March 20, 2009
Leavittsburg, Ohio—Denman Tire Corp. is seeking government funding for its $3-million turnaround plan. But the company may miss out on the recently announced federal support for auto suppliers because it products off-road tires for the construction and mining industries.


Fiat says it won't assume Chrysler debt in deal, AP via Cleveland Plain Dealer, March 20, 2009
Milan, Italy—The Italian automaker Fiat said Friday that it won't assume Chrysler LLC debt -- current or future -- in deal for a 35-percent stake, contradicting statements from Chrysler's chief executive that it would.


Coal Hard Facts: Cleaning it won't be dirt cheap, by Jeffrey Ball, Wall Street Journal, March 20, 2009 (Subscription)
Pleasant Prairie, Wis.—Right now, clean coal seems both possible and improbable. The basic elements of clean coal are already in use in small corners of industry. But whether it is broadly and quickly adopted around the world will depend less on science than on economics. Cleaning coal is very expensive.


This Week's Earnings Reports

Thursday, March 19

Officials say auto suppliers to get $5 billion in aid, by Ken Thomas, AP via Akron Beacon Journal, March 19, 2009
Washington—According to unofficial reports to the AP, the Obama administration plans to provide $5 billion to troubled auto suppliers who are linked to Detroit's automakers.


Eaton plug-in electric truck with hybrid diesel technology unveiled in California, by Frank Bentayou, Cleveland Plain Dealer, March 19, 2009
Pomona, Calif.—Eaton Corp.'s diesel-electric system is the power source for the experimental electric-utility truck that provided a backdrop for Obama's speech in Pomona, Calif., urging more green innovation.


$2M grant for Cooper on state list, by Lou Wilin, Findlay Courier, March 19, 2009
Columbus—The State Controlling Board has added a proposed $2 million grant for Cooper Tire & Rubber Co. to the agenda of its meeting on Monday. That grant, as well as a $250,000 one, will be considered as part of the incentives to keep the Findlay plant open.


EPA toxic pollution report shows overall improvement, by Michael Scott, Cleveland Plain Dealer, March 19, 2009
Washington—The U.S. EPA released its first detailed Toxic Release Inventory in more than two years today.


Chinese company eyes Delphi assets, Warren Tribune Chronicle, March 19, 2009
Beijing—Citing unnamed sources, Reuters, reporting from Shanghai, said that the Chinese-language publication, 21st Century Business Herald recently reported that Beijing Automotive Industry Co. and private-sector Chinese parts makers are talking with Delphi about buying some of its assets.


Timken cutting 14% of workers at South Carolina plant, AP via Cleveland Plain Dealer, March 19, 2009
Honea Path, S.C.—The cuts are the second announced by Timken in South Carolina in as many months.


GM to add 5 plants not included on first list targeted for closure, by Dan Strumpf, AP via Youngstown Vindicator, March 19, 2009
New York—General Motors Corp.’s latest plan to return to profitability calls for the struggling automaker to close five more plants than it originally expected. The lingering question is which plants will be the first to go. It’s a question GM has not yet answered.


Leading indicators drop less than expected in February, by Tali Arbel, AP via Akron Beacon Journal, March 19, 2009
New York—The Conference Board's monthly forecast of economic activity fell 0.4 percent last month. Economists surveyed by Thomson Reuters expected a 0.6 percent decline.


Lawmakers criticize food industry over inspections, by Jane Zhang, Wall Street Journal, March 19, 2009 (Subscription)
Washington—House Democrats blamed the food industry for relying on suppliers to verify the safety of products, a practice lawmakers said contributed to the salmonella outbreak linked to tainted peanut products.


WSJ Management Blog: Three forces disrupting management, by Gary Hamel, Wall Street Journal, March 19, 2009 (Subscription)
New York—It is difficult for contemporary observers to appreciate the profound impact revolutionary technology breakthroughs in the 18th and 19th centuries had on the organization of economic life in the early decades of America’s industrial revolution. Now, we may be on the verge of another management revolution, and it may turn out to be just as unsettling as the one that spawned the industrial age.

Wednesday, March 18

Cotton is King… in Cleveland!, Mhari Saito, WCPN, March 18, 2009
Cleveland—Greg Tilton, senior vice president of operations at US Cotton’s Cleveland factory, says that US Cotton's investment in modern manufacturing equipment at its plant just north of Hopkins Airport was key to its ability to beat low-cost foreign suppliers and become the dominant supplier of generic cotton beauty products to most major retailers.


Union: Timken laid off 155 hourly workers since December, by Michael S. Balash, Canton Repository, March 18, 2009
Canton—The president of the union that represents Timken steelworkers said Wednesday that Timken has laid off at least 155 union employees at its Canton-area plants since mid-December. A Timken spokeswoman said the company has laid off 115 hourly union employees from its Gambrinus, Harrison, Faircrest and Canton plants since the end of February.


Omnova executive upbeat over polymer company's prospects, by Jim Mackinnon, Akron Beacon Journal, March 18, 2009
Fairlawn, Ohio—Kevin McMullen, chairman and chief executive officer of Omnova, gave his state-of-the-company address at Omnova's annual shareholders' meeting Wednesday.


Energy chief says U.S. is open to carbon tariff, by Ian Talley and Tom Barkley, Wall Street Journal, March 18, 2009 (Subscription)
Washington—Energy Secretary Steven Chu on Tuesday advocated adjusting trade duties as a "weapon" to protect U.S. manufacturing. Mr. Chu, speaking before a House science panel, said establishing a carbon tariff would help "level the playing field" if other countries haven't imposed greenhouse-gas-reduction mandates similar to the one President Barack Obama plans to implement over the next couple of years.


Unionizing fight focuses on three states, by Krish Maher and Brody Mullins, Wall Street Journal, March 18, 2009 (Subscription)
New York—The battle over a bill that would ease union organizing is zeroing in on lawmakers in three states—Pennsylvania, Arkansas and Colorado—where three key senators who are up for re-election in 2010.


Medical device makers face health-care reform pressures, by Jon Kamp, Wall Street Journal, March 18, 2009 (Subscription)
New York—The prospects of U.S. health-care reform and cuts to medical spending have sparked big worries about a squeeze on medical-device companies. A recurring devices-sector question involves whether manufacturers can maintain high product prices and profit margins.


CEOs rate Ohio's business climate low in survey, by Frank Bentayou, Cleveland Plain Dealer, March 18, 2009
Cleveland—A Chief Executive magazine survey rated Ohio No. 2 in transportation and 19th and 20th in terms of quality of life and access to capital. However, Ohio was ranked much lower for some other indicators.


State board to consider part of Cooper incentive, by Lou Wilin, Findlay Courier, March 18, 2009
Columbus—The State Controlling Board on Monday will consider giving Cooper Tire & Rubber Co. $250,000 as one of its incentives to keep the Findlay plant open.


Local impact of Dana cuts unclear, by Beth L. Jokinen, Lima News, March 18, 2009
Lima, Ohio—It is too soon to tell whether reductions announced by Dana Holding Corp. will affect Lima's Dana Spicer Driveshaft Division plant.


Trade barriers could threaten global economy, by Anthony Faiola, Washington Post, March 18, 2009
Washington—A World Bank reports finds that at least 17 of the 20 major nations that vowed at a November summit to avoid protectionist steps that could spark a global trade war have violated that promise.


U-turn for Mexican car sector, by Paul Kiernan, Wall Street Journal, March 18, 2009 (Subscription)
New York—The Mexican auto sector fears a production collapse, as domestic sales -- already sagging -- can't hope to make up for the drop in exports. 79% of last year's production of 2.1 million was sent abroad. Auto exports have fallen off a cliff with the start of 2009.

Tuesday, March 17

A. Schulman starts up Akron manufacturing plant, Crain's Cleveland Business, March 17, 2009
Akron—A. Schulman said the new plant expands production capacity for its Polybatch high-performance additive business, which is aimed at the film and packaging markets.


Former insurance man invents more efficient toilet, by Marcia Pledger, Cleveland Plain Dealer, March 17, 2009
Cleveland—Wally Berry, chief executive officer of American Innovative Products, invented Siphon Flush after retiring from an insurance career. At 61, the Lakewood resident is starting a second career—this time as an inventor.


Mart backers' goal: Make Cleveland a medical-industry mecca, by Jim Nichols, Cleveland Plain Dealer, March 17, 2009
Cleveland—"The goal, in its simplest form, is to convert Cleveland's unassailable global leadership in the medical field into a hospitality-driven economy focused on trade shows and conferences in the medical field," said Christopher Kennedy, president of Merchandise Mart Properties Inc.


Dana to cut 5,800 additional jobs, by Larry P. Vellequette, Toledo Blade, March 17, 2009
Toledo—Toledo auto supplier Dana Holding Corp. reported widening losses for the final quarter of 2008 Monday and announced that it has begun to slash an additional 5,800 people from its global payroll.


Editorial: Optimism in Ohio, Toledo Blade, March 17, 2009
Toledo—Despite the severe recession, Ohio has demonstrated that it can still attract new investment that can lead to job creation.


Lincoln Electric says it will acquire plant in China, by Frank Bentayou, Cleveland Plain Dealer, March 17, 2009
Cleveland—Lincoln Electric Holdings Inc. will expand its welding supplies manufacturing capacity with the purchase of a plant in China.


Republic steel plans to relocate Fairlawn offices, by Jim Mackinnon, Akron Beacon Journal, March 16, 2009
Akron—Steel maker Republic Engineered Products Inc. will move its headquarters, and about 30 employees, from Fairlawn to its steel mill in Canton later this month.


Summit County approved Goodyear headquarters financing plan, by Robert Schoenberger, Cleveland Plain Dealer, March 17, 2009
Cleveland—The Summit County Council on Monday approved letting the Summit County Port Authority issue $17.2 million in bonds for the redevelopment of Goodyear's headquarters in Akron. The Akron City Council must also sign off on the plan.


ArcelorMittal says it does not need to raise cash, AP via Cleveland Plain Dealer, March 17, 2009
Brussells—Responding to a Financial Times article, ArcelorMittal SA, said today that it did not need to raise more money by issuing new shares.


GM CEO says bankruptcy would cause liquidation, AP via Cleveland Plain Dealer, March 17, 2009
Detroit—GM CEO Rick Wagoner said restructuring the company out of court would accomplish 99 percent of what could be achieved in bankruptcy, but without the risk of losing customers or the huge expense of Chapter 11.


Industrial output falls 1.4 percent in February, by Martin Crutsinger, AP via Cleveland Plain Dealer, March 17, 2009
Washington—The nation's industrial output fell for the fourth straight month in February, with factories operating at their lowest level in six decades of record keeping.


Automakers' deal worth up to $10 billion, AP via Akron Beacon Journal, March 17, 2009
Detroit—If Chrysler LLC and Fiat Group SpA join forces, Chrysler would get technology and other items worth $8 billion to $10 billion, Chrysler's chief executive said Monday.

Monday, March 16

Health Care: Marvels ease patients' pain, boost NE Ohio's rep as innovator, by Shannon Mortland, Crain's Cleveland Business, March 16, 2009 (Subscription)
Cleveland—Crain's profiles advances being developed by Synapse Biomedical Inc., Tracon Pharmaceuticals Inc., Pittsburgh Life Sciences Greenhouse and BioEnterprise Corp.


Former Beachwood warehouse may become business incubator, by Stan Bullard, Crain's Cleveland Business, March 16, 2009 (Subscription)
Beachwood, Ohio—New businesses and jobs may take root at 23355 Mercantile Road in Beachwood. The Beachwood Chamber of Commerce is studying the city's invitation to lease a 34,000-square-foot office section of the former DHL Express warehouse-office complex for the chamber's offices and business incubator.


Health Care: Industry experts say Northeast Ohio is at the top of the global medical innovation landscape, by Kathy Ames Carr, Crain's Cleveland Business, March 16, 2009 (Subscription)
Cleveland—Some industry observers believe there's enough potential in Northeast Ohio's medical research community for the area to emerge as a tech belt.


Downward price pressure signals deflation to some manufacturers, by Dan Shingler, Crain's Cleveland Business, March 16, 2009 (Subscription)
Cleveland—To at least some local manufacturers, what’s happening in the economy looks a lot like deflation. As the prices of their raw materials have declined, customers have been demanding price reductions, and employers, in some cases, are cutting workers’ pay.


Power companies mull implications of FirstEnergy plan, by Jay Miller, Crain's Cleveland Business, March 16, 2009 (Subscription)
Cleveland—Out-of-state power marketers say the electric rate plan tentatively agreed to late last month by FirstEnergy Corp. could give them an opportunity to sell power or expand their operations in Northern Ohio.


Trelleborg Wheel Systems to close Hartville plant, by Dan Shingler, Crain's Cleveland Business, March 16, 2009 (Subscription)
Hartville, Ohio—Trelleborg Wheel Systems in Hartville is closing sometime around May 10, putting its 90 employees out of work.


Diebold promotes Stephenson to VP of security, Canton Repository, March 16, 2009
Green, Ohio—Diebold has promoted Bradley J. Stephenson to vice president of the security division with a focus on increasing the value of security solutions and accelerating market growth in the Americas. Dennis M. Moriarty, senior vice president, global security division, is leaving the company to pursue other opportunities.


USW, Severstal to resume negotiations Thursday, AP via Canton Repository, March 16, 2009
Pittsburgh—Severstal North America and the United Steelworkers will resume bargaining on a contract for 6,000 workers in four states.


In any form, free choice act could sting, by Dan Shingler, Crain's Cleveland Business, March 16, 2009 (Subscription)
Cleveland—The Employee Free Choice Act in its final form may not do away with secret ballots in union organizing elections as its language calls for now, some local labor experts say. But even with that change, the experts put employers at a disadvantage at fending off unions should the act pass.

Sunday, March 15

Senator: Ohio to get $153M in job training funds, Dayton Daily News, March 15, 2009
Washington—Ohio will receive $153 million in federal funding to provide employment and training services to youth and adults and to help workers who have lost jobs find new employment, U.S. Sen. Sherrod Brown, D-Ohio, said.


Editorial: GM: The next step, Toledo Blade, March 15, 2009
Toledo—It’s clear that for General Motors, the question is not if, but how and when the giant company will file for what is called—with good reason—bankruptcy reorganization. But while the prospect is tinged with dread, it holds the possibility of giving birth to a healthier, leaner, and, eventually, profitable automaker.

Saturday, March 14

Thomas Steel plans layoffs, Warren Tribune Chronicle, March 14, 2009
Warren, Ohio—Thomas Steel Strip Corp. announced Friday that it is reducing its salaried work force by approximately 25 percent.


Bedford Heights-based Olympic Steel of Bedford Heights cutting jobs at Pa. plant, by Frank Bentayou, Cleveland Plain Dealer, March 14, 2009
Bedford Heights, Ohio—The 55-year-old company with headquarters on Richmond Road notified Pennsylvania officials Thursday that it was cutting 105 hourly and salaried employees, many permanently, at its Chambersburg, Pa., steel-plate processing operation.


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Click any headline link to view the original story. Links may expire over time. An information service of MAGNET, the Manufacturing Advocacy and Growth Network. For more information or to suggest a news source, e-mail lynne.brakeman@magnetwork.org.