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Serving Industry in Northwest Ohio, Southeast Michigan, and Northeast Indiana July 2007 Vol. 10, No. 7

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www.toledobiz.com

In early 2006, Toledo-based H2

Engine Systems, Inc. joined with theToledo Area Regional Transit Authority(TARTA)

H2 Engine Systems eyeing Toledo plantHigh-tech business may initially create 12 to 15 jobs

Biodiesel-Hydrogen project vehicle

and the University of Toledo IntermodalTransportation Department on a $1.5million study. The study, funded by afederal grant, aims to determine the

impacts – to a fleet operator – ofusing biodiesel fuel. Test results shouldbe published by the end of this month.

According to John Everton, president,H

2 Engine Systems, the study will

eventually result in the construction of anH

2 Engine Systems plant in Toledo that

will initially employ approximately 12 to15 people.

“This is a program that Marcy Kapturoriginally funded through UT, and wecame in the back end of the program,”Everton stated. “We have demonstratedwhat we set out to demonstrate, but thereare still a few months to go before [thestudy is finalized].”

Everton has worked with hybrids aswell as the reduction of fuel and exhaustemissions for several years. Additionally,he designed hybrid electric buses inDenver, Colorado.

“We’re based on Dorr Street in the…continued on page 2

Construction has begun on a $3mill ion, 27,000 square footwarehousing and distribution centeraddit ion at Spartan ChemicalCompany, Inc. in Maumee. Thecompany expects the construction ofthree additions and renovation of aninterior space to be completed inSeptember.

According to Jim Lenardson,Spartan Chemical vice president ofoperations, the need for the projectis driven by recent company growth.The expansion will result in thehiring of a few additional employeesas well.

The Lathrop Company is thegeneral contractor and Vetter DesignGroup is the architect.

“[The expansion] is designed tomatch the exist ing building,”explained Lenardson.

“There are three separate

SpartanChemicalexpands

…continued on page 19

A Bryan, Ohio company, Stark’s Inc., has opened anew division called Green by Design. The division is lo-cated on N. Dixie Highway in Bowling Green and willfeature a showroom designed to serve as a retail and ed-ucational source for homeowners and professionals in thebuilding trade, offering sales, service, and installation ofeco-friendly equipment, ideas, and advice. Technicianswill also service existing heating, cooling, and plumbingequipment for commercial and residential customers.

Stark’s launches Green by Design divisionAccording to Stark’s, the goal for the showroom is

to show customers how to create efficiency, comfort, andhealthy living for both occupants and the environment.Additionally, Stark’s intends to spotlight practices andproducts that increase the efficiency with which build-ings and sites harvest and use energy, water, and materi-als.

The showroom itself is primarily illuminated withnatural light and it is heated and cooled with eco-friend- …continued on page 8

Glud & Marstrand AS is opening G&M MediaPackaging, its first US operation, in Bryan, Ohio. Thecompany is leasing 25,000 square feet ofmanufacturing space from Ohio Art Co., a Bryan-basedcompany best known for its production of the Etch ASketch.

Glud & Marstrand is a Scandinavian metalpackaging company for the food and media industriesand employs more than 1,200 personnel worldwide.According to the company, it is establishing G&MMedia in the United States as a strategic move to locatemanufacturing near its customer base.

G&M will become a new lithography customer forOhio Art and will also manufacture SteelBook™packaging. SteelBook is used for high-end DVDs andvideos games sold as boxed sets and special editionsSteelBook™

G&M Media to establish $10M Bryan HQfor studios and game producers. SteelBook metalmedia boxes have the same dimensions as the commonAmaray soft box, but the exterior is made of metal.The interior is a clear plastic core, which resemblesthe well-known method for securing the disc.

SteelBook metal media boxes can be decorated onboth the inside and the outside using a range ofdifferent decoration techniques such as paint andembossing. SteelBook is marketed and distributed byGlud & Marstrand’s partner, Scanavo AS, a Danishmedia packaging manufacturer.

Production of the product is expected to begin inmid-July at the Bryan facility.

G&M Media will invest in new machinery andequipment and leasehold improvements to the facility.

…continued on page 10

ly equipment. Eco-friendly materials were used through-out the renovation process, and others are on display.

Some of the products used by the company duringrenovation included:

• Marmoleum flooring, which is made from renew-able materials such as linseed oil and chalk;

• Slate flooring, a natural and durable material;• Recycled plastic parking blocks;

2 NEWS MANUFACTURING & CONSTRUCTION NEWS • July 2007

new incubator unit,” he added. “We’redoing hydrogen injection to improve theburn efficiency of biodiesel fuels in thisparticular case but renewable fuelsgenerally so [an individual] can get betterfuel economy and better exhaustemissions. We have created hydrogenfrom different sources, so it’s quite aunique project on the backside of TARTA’sprogram.”

The TARTA study is being conducted

by the Intermodal Transportation Instituteat UT using two different fuels: ultra-low-sulfur diesel fuel (ULSD) and a mixtureof 80% ULSD fuel and 20% methyl esterbiofuel, which is known as B20. B20 isderived from soybean oil and yellowgrease that consists primarily of recycledcooking oil.

Forty-eight TARTA buses and severaldiesel-powered vehicles will take part inthe vehicle testing. TARTA installed an on-

site biofueling station with a portion of the$1.5 million grant money. Also, ahydrogen fueling facility has been addedto the TARTA facility; a refuel takesapproximately 20 seconds and lasts abouttwo weeks.

H2 Engine Systems’ role in the study

is to research, develop, and demonstrate anew approach to improving fuel economyand reducing exhaust emissions byimproving the burn characteristics of

H2 Engine …Continued from page 1

biodiesel fuel on a ParaTransit bus, namedBH1. According to the company, anadvantage of the revised thermodynamicimprovement is to provide greater powerand make biodiesel fuel similar to oil-based diesel (from the operator’sperspective). The ultimate goal is toprovide an enhancement process that willenable bus fleets to operate with 100%renewable biodiesel product. H

2 Engine

Hydrogen tank installation

Computer interface using touch screen …continued on page 3

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NEWS 3July 2007 • MANUFACTURING & CONSTRUCTION NEWS

Systems also hopes to reduce fleetoperating costs, create a cleanerenvironment, and reduce dependence onforeign oil.

According to H2

Engine Systems,other programs have demonstrated the

benefit of using hydrogen to enhance theburn of conventional diesel fuel. However,the TARTA program is unique, H

2 Engine

Systems explained, because itdemonstrates this technique withrenewable biodiesel fuel. The testingbegan in late spring and initial studyresults portray a reasonable improvementin fuel economy shown in testing aroundthe Toledo area.

H2 Engine Modifications have been made to thebus in order to fit hydrogen storage tanksand a filler system. A new enginemanagement system has been designed toinject hydrogen into the engine air intakeand sensors monitor pressures,temperatures, speeds, and exhaust

Owens-Illinois, Inc. (O-I) has concludedthe strategic review process of its plasticsportfolio and has entered into a definitiveagreement with Rexam PLC to sell its plasticspackaging business.

Total consideration for the business(including tax basis step-up) will beapproximately $1.825 billion, to be paid in cashat closing. For the twelve month period endingDecember 31, 2006, O-I Plastics had revenuesof approximately $760 million.

The transaction, which has been approvedby the board of directors of both Rexam and O-I, is expected to close early in the third quarter,subject to regulatory approvals and Rexamshareholder approval. According to O-I, itintends to use the majority of the sale proceedsto reduce senior secured debt maturing in 2009,2011, and 2012. As a result of existing tax losscarryforwards, O-I expects to have only minimalfederal cash tax liability from the saletransaction.

“I am pleased with the outcome of ourstrategic review process and am extremelyO-I headquarters in Perrysburg, Ohio

O-I to sell plastics packaging biz to Rexamconfident that O-I’s Plastics business will be invery good hands,” stated Al Stroucken, O-Ichairman and CEO. “This sale and thesubsequent debt reduction will give us greateroperating flexibility and allow us to better focusresources to improve our core glass business.”

O-I Plastics, comprised of HealthCarePackaging and Closure & Specialty Products,serves the fields of healthcare packaging andspecialty closure systems in the US. Thecompany also deals in the design, manufacture,and sale of plastic packaging solutions forcompanies in the pharmaceutical, healthcare,food and beverage, personal care, household,and automotive industries. O-I Plastics hasapproximately 2,800 employees in 19 plants inthe United States (including Puerto Rico),Mexico, Brazil, Hungary, Singapore, andMalaysia with a headquarters and technicaldevelopment center in Perrysburg, Ohio.

Goldman, Sachs & Co. is acting asexclusive financial advisor to O-I and SimpsonThacher & Bartlett LLP is acting as exclusivelegal advisor to O-I.

Fueling hydrogen

…continued on page 9

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FACILITY CONSTRUCTION 9July 2007 • MANUFACTURING & CONSTRUCTION NEWS

Stark’s…Continued from page 8project automatically updates all the other

data. For instance, switching a masonryentrance to wood construction in a virtualdesign automatically changes thedocumentation as well, so the properamount and type of materials are ordered,finish schedules are adjusted, and costfigures are recalculated.

Ordering takes place earlier in theprocess than it does with traditionalmethods, allowing owners to avoidpotential subsequent price increases. Yearslater, maintenance staff can call up a modelnumber or warranty information for awater heater or an elevator simply byclicking on that object in the BIM model.

…Continued from page 6

BIM

emissions; the controls and dataacquisition are undertaken by a proprietarymicroprocessor computer installed on thebus. Direct control of computer algorithmsand data display is accessible through alaptop computer and a dedicated touchscreen display set beside the driver.

Hydrogen gas is only used for thebaseline testing, and safety measures havebeen added to the bus to ensure there isno hazard to using this medium. H

2 Engine

Systems explained that, eventually,

H2 Engine…Continued from page 3

SSOE projects designed using theBIM methodology include retail stores,paint shops for a major automaker, and aproduction facility for Greater Ohio (GO)Ethanol.

hydrogen will be manufactured ondemand using a proprietary fuel cracking

technique and the hydrogen gas tanks andassociated fueling supply system will beabandoned.

The ParaTransit bus, BH1, can beseen testing on the streets of Toledo. Thecolorful wrap design depicts the progressfrom soybean fields at the front throughchemical processing scenes on the sides

to the clean and green field of a non-polluting future.

“It’s a wrap on the bus done by a localartist, [Pamela Shanteau],” Everton added.“It makes a good statement… [The bus]is unique in America if not the world. Itall comes down to using renewable fuelsfrom farming resources.”

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green building for both the commer-cial and residential industries. It alsoserves as an educational source, ac-cording to the company, where peo-ple can learn about the green move-ment and how to become part of theeffort.

Stark’s is a member of the Unit-ed States Green Building Council andis pursuing accreditation by Leader-ship in Energy and EnvironmentalDesign (LEED).

Stark’s Inc. is a family-ownedcompany and has offered plumbing,heating, and air conditioning servic-es since 1971. It is a division ofStark’s Plumbing & Heating. Stark’sserves both residential and commer-cial customers and also offers 24-houremergency service. The company op-erates locations in Bryan, Defiance,and Bowling Green, Ohio.

“We hope to show the public that

going ‘green’ is about making the rightchoice,” Stark stated. “Eco-friendlyproducts are more accessible now, andit doesn’t have to be difficult to makeprojects more environmentally friend-ly.”