By Kathy Fox, Urbana Daily Citizen, email@example.com
Representatives of Parker Trutec, on Upper Valley Pike, and Rosewood Machine & Tool Co., on Kiser Lake Road, said Honda’s plan to idle a second-shift production line at the Marysville assembly plant, as it slows production of Accords, may have little impact on their businesses.
Honda has said buyers’ interest in SUVs and small trucks is rising and interest in small cars is declining, hence the slowdown of the production line, which is to begin in August and may last a few years.
“The impact depends on the duration,” said Jeff Helman, a vice president of the Rosewood business.
Both local businesses manufacture products for Honda, but not only for its Accord line, and both businesses manufacture products for customers besides Honda.
“We do a lot of service parts for Honda not tied in with production lines,” said Brian Beatty, Parker Trutec plant manager. “We are unclear at this point,” he said of potential impact to his plant. “We need to research to see about the impact.”
He added, “Business is good otherwise.”
Beatty said he expects any impact to be minor for the plant, which has about 180 workers.
About 95% of Parker Trutec’s business is automotive, with orders coming from Honda as well as other vehicle manufacturers. “It can have an impact, but it’s not unprecedented,” Helman said. “They make these kinds of adjustments from time to time … “It’s no secret Accord sales are down … the public wants these little crossover SUVs.
“Honda’s been adept at changing tooling,” he added. “Their lines are designed to change to other models.”
He said the Rosewood business is a Honda supplier for tooling and equipment. “We make parts to make the cars.
“Honda’s been a very good customer, a good partner for us,” Helman said, adding that the local business manufactures products for Honda facilities besides its Marysville plant, as well as for businesses other than the automotive industry.
“Our objective has always been to be diversified,” he said, adding the company, which employs about 40 people, manufactures products for various types of customers, including those in the HVAC and food-processing industries.
“Honda has a huge impact on this area of the state,” Helman said. Noting that companies across the state manufacture products for Honda, he said it could take time for any impact to materialize.
“It’s not time to panic. It’s time to adjust to changes in the market,” he said, adding he thinks Honda has such a plan.
Honda has said there will be no layoffs, although voluntary buyouts will be offered.
Helman said if jobs are affected, people will find a “positive job market.”
“We’re all dealing with people shortages,” he said. “There are jobs out there. If we could find the right people, we could use a couple people.”
Although messages left at Honda supplier KTH Parts Industries Inc. were not returned, a June 2016 article in the Daily Citizen quotes a KTH spokesperson as noting consumers’ growing interest in SUVs over smaller vehicles and saying KTH, located on state Route 235, was making changes to adjust to this shift in interest.
Kathy Fox can be reached at 937-652-1331, ext. 1773.
The building Thursday’s presentation was held in is the third large building the company has added since the first building, Gummel said.
“While we’ve been fortunate to be able to continue to expand over the years, our purpose remains steadfastly the same as it was in 1988 and reflects the purpose of (Nihon Parkerizing Co. founder) Mr. Yuji Satomi back in 1928,” Gummel said. “That purpose is to contribute to the advancement of society by applying our technology and skill to honor the customer with good product on time, to help raise the dignity of life by providing jobs for individuals so they can support themselves and their families, and to be a conscious corporate citizen in the community.
“God willing with this building and this equipment we plan to do exactly that by applying our determination and our hard work in the coming years.”
Urbana Mayor Bill Bean said the city has provided sewer service to Parker Trutec which is one of the larger users for the city’s new water reclamation facility. “
In turn, Parker Trutec has provided jobs for our citizens here in Urbana and the Champaign County area,” Bean said. “You are truly the lifeblood of our community by providing jobs and a tax base that makes our community one of the best – if not the best – community in Ohio. It’s this kind of partnership that makes living, working and doing business in Urbana and Champaign County a real pleasure.
“I would like to thank Parker Trutec, Nihon Parkerizing Co., and Joseph Gummel for locating here in Champaign County almost 30 years ago. Thank you and may we look forward to another 30 years of your success here in Champaign County.”
Jenny Gilger, Assistant Vice President of American Honda Motor Company, said Trutec has always been a great partner for American Honda.
“We truly value and appreciate our almost 30 years of working together and we congratulate you on the expansion of your operations here in Urbana as you continue to be a valued member of the community providing stable employment,” Gilger said.
Following a ribbon cutting, attendees were given a tour of the new e-coat line.
During the dedication ceremony, representatives from West Liberty-Salem received a $25,000 check from Parker Trutec towards the Tiger Strong Fieldhouse.
WL-S Athletic Director Jake Vitt said next to the school, Parker Trutec is the biggest employer in the West Liberty-Salem community. Vitt referenced the Jan. 20 shooting at West Liberty-Salem during which student Logan Cole was injured. Cole was in attendance for Thursday’s ceremony. Vitt said the school wanted a way to recognize the date and honor the first responders who responded to the school on that date. Vitt said through Cole’s wishes the school established a fund for a fieldhouse for students, athletes and the community.
“The purpose of this was to give back to our community and honor those who acted in valor and courageous acts that particular day as we had many first responders, many community members all within the surrounding area that kicked in and helped that day,” Vitt said. Vitt said the main focus of the building will be a room recognizing Cole and other past community heroes. “We’re very excited to roll this plan out … we kind of kicked it off this spring and Parker Trutec is very generous and wanted to get on board with us and this project and we appreciate that very much,” Vitt said.
Nick Walton can be reached at 937-652-1331 Ext. 1777 or on Twitter @UDCWalton.
Expansion and new equipment lead this Ohio coater’s growth
by TIM PENNINGTON, Editor, Products Finishing magazine
Parker Trutec’s jobbing plant in central Ohio has been a very busy place over the last few years.
General Manager Geoff Smith and a strong staff have been upgrading and expanding the company’s coatings operations in nearly every area, a step that earned Parker Trutec a Products Finishing Top Shop honor for its technology achievements.
In just the past three years, the company has:
Parent company Nihon Parkerizing Co. established the coating plant in Urbana, Ohio, in 1988 and then built a second, heat-treatment plant in nearby Springfield in 1990. The company offers ecoating, zinc phosphate, manganese phosphate, iron phosphate, Bonderlube, solid-lubricant paints, paint stripping and black oxide at the coatings facility, and numerous types of heat-treatment and value-added services at the Springfield plant.
The company employs more than 250 full-time associates, and its annual revenue is approximately $50 million. It mainly serves the automotive, construction, agriculture, marine, military, appliance and fitness industries.
“As a true job shop providing multiple coatings services and value-added services, we must provide superior customer service and meet daily expectation of our customers, as well as provide the highest quality of product in the industry,” says Wes Russell, assistant plant manager.
The company’s directors believe Parker Trutec has been able to grow for four significant reasons: It has built up an excellent customer base over many years; it has highly dedicated associates on the plant floor; it benefits from a team of faithful and competent suppliers; and it is fortunate to be a part of a Nihon Parkerizing, which has a vast footprint globally for providing and developing advancements in surface treatment.
“The level of trust and respect among the associates and managers is strong,” says Smith, who is also a company director.
He says being named a Products Finishing Top Shop is the climax of a successful run of years that began with the previous plant manager and vice president, Mike Kleiber, during which the parent company invested heavily in Parker Trutec’s infrastructure and equipment.
“We are greatly honored and humbled to be named and recognized by an industry-leading source like Products Finishing,” Smith says. “As our business continues to develop and change to the market, we feel being associated with the Top Shops program will assist with continued growth.”
See more at www.pfonline.com/articles/top-shops-new-finishing-technology-pushes-parker-trutec
TIRC to recommend tax agreements remain in place
First Posted on UrbanaCitizen.com: March 13th, 2016
By Joshua Keeran - firstname.lastname@example.org
Under the leadership of the Champaign Economic Partnership (CEP), the combined city of Urbana and Champaign County Tax Incentive Review Council (TIRC) on Thursday voted in favor of recommending the city and county continue all current enterprise zone, Community Reinvestment Area (CRA) and Tax Incentive Fund (TIF) agreements.
In enterprise zones or economically depressed areas where business growth is encouraged through tax relief, the TIRC unanimously voted in favor of continuing agreements with KTH Parts Industries, the American Pan Company and the Ultra-met Company.
Marica Bailey, CEP economic development director, said the deal with KTH, 1111 state Route 235 N. in St. Paris, is a 100 percent tax abatement for 10 years (through Dec. 31, 2016) in which the company agreed to commit over $3 million in real property and retain 92 positions.
“They have a total investment of $23 million at this point,” she said. “Everything so far is above what they have anticipated.”
Champaign County Auditor Karen Bailey reported the amount of taxes forgone to date as a result of the agreement is $1,265,606.
The American Pan Company, 417 E. Water St. in Urbana, is receiving a 75 percent tax abatement for 10 years (through Dec. 1, 2022) in return for the creation of 33 jobs and the retention of 154 jobs.
“American Pan has met their agreement regarding their employees,” Marcia Bailey said.
To date through the agreement, the company has invested $2.2 million, while $103,547 in taxes have been forgone.
Under the enterprise zone agreement with Ultra-met, 120 Fyffe St. in Urbana, the company agreed to invest $510,000 in real property, $1.5 million in personal property, create 22 jobs, and retain 30 jobs in return for a 75 percent abatement for 10 years (through Dec. 31, 2020).
“At this point, they have reported 11 new jobs created, and the investment is on track,” Marcia Bailey said.
To date, the deal has resulted in a tax abatement of $23,140.
TIRC members were also informed that an enterprise zone agreement with Parker Trutec, 4795 Upper Valley Pike, expired at the end of 2015.
Marcia Bailey said during the length of the 10-year agreement, the company received a 45 percent reduction in real property taxes in exchange for creating two positions and retaining 88 employees.
“They are now at the 88 retained and have maintained the two new employees,” she said, noting the company invested $2.1 million during the agreement.
The total amount of taxes abated over the length of the deal was $289,830.
CRA, TIF agreements
TIRC members unanimously agreed that CRA agreements, tax exemption deals benefiting property owners who renovate existing or construct new buildings, should continue with Gerald Shiffer and White’s Service Center.
The deal with Shiffer, which involves a hangar at Grimes Field, is a 50 percent tax abatement for 15 years (through Dec. 31, 2016) in return for a real property investment of $325,000 and the possible retention of two positions.
To date, $75,868 in taxes has been forgone.
“Everything is on track as specified with the agreement,” Marcia Bailey said.
The CRA agreement with White’s Service Center, 1325 N. Main St. in Urbana, is a 50 percent tax abatement for 10 years (through Dec. 31, 2019). During the length of the agreement, the company has pledged to invest $250,000 in real property and $2,500 in personal property, create one new position, and retain one position.
“They did hire a new person and have retained the other,” Marcia Bailey said. “They haven’t requested any taxes be abated as of yet, but the agreement will remain in case they decide to do so at a later date.”
TIRC members also unanimously voted in favor of continuing the 10-year TIF agreement set up by the city of Urbana to help fund the Scioto Street Improvements Project through 2021.
To date, the six businesses involved in the agreement have paid the following amounts into the fund: Aaron Rents ($35,375), Clark Station ($14,549), Midwest Dialysis Center ($32,756), McDonald’s ($38,410), Sonic ($18,516) and Family Dentistry ($28,611).
Marcia Bailey said the TIRC’s recommendations will be presented to both the Urbana City Council and Champaign County Commission on Thursday for final approval. Council will vote on city agreements only, while the commissioners will vote on county and township agreements.
Joshua Keeran may be reached at 937-652-1331 (ext. 1774) or on Twitter @UDCKeeran.
Parker Trutec Inc. has announced that the Urbana, Ohio facility will be constructing a 57,000 square foot building expansion. This building expansion will be required for the addition of a third Electrocoating Line to the coatings application facility located at 4795 Upper Valley Pike. This new Electrocoating process line addition compliments the other Electrocoat lines that are already in place at Parker Trutec and is expected to launch mass production by 2nd quarter 2017. The total project cost will exceed 8.0 million dollars.
The state of the art 14 station Electrocoating system is a fully automated rack line which will continue to allow an increase in production capacity for both existing and new customers and will also allow Parker Trutec Urbana to achieve tighter quality industry standards for steel, galvanneal, and aluminum substrates. This new line features 3,000 pound rated racks and processing tank parameters of 16’ x 7’8”x 6’6”. Additionally, this line has the capabilities of rack tilting at each station as needed by customer requirements. Parker
Trutec has chosen Henkel brand pretreatment chemicals and Axalta Electocoating paint for this new coating line.
The added 57,000 square feet building addition will be utilized to house the new electrocoat line. Additionally, the new building will improve production flow and efficiency for large part processing and allow better utilization of existing floor space throughout the plant. The building addition will add 4 new trucking docks to the existing 29 docks currently in use. Link Construction of Bellefontaine, Ohio has been selected for the new building installation with construction set to begin as early as late October or early November of 2015 with completion required by mid-2016.
Parker Trutec Urbana started operations in 1988, is a full service surface coating operation catering to a wide variety of customers with a wide range of specifications and requirements for Zinc, Manganese and Iron Phosphate, Bonderlube, Solid Lubricant / Defric Coatings and Electrocoating.
Parker Trutec Inc. is a subsidiary of Nihon Parkerizing Co., Ltd. of Tokyo Japan. Nihon Parkerizing founded over 85 years ago is widely recognized as a world leader in heat treating and metal coatings technology with 87 global facilities in 16 countries. To learn more about how Parker Trutec Inc. can satisfy your surface coating requirements contact Mike Rea email@example.com or Burke Gruber firstname.lastname@example.org at 937-653-8500. For more information on Parker Trutec Inc and their 5North American facilities, log onto www.parkertrutec.com