Energy upgrades for Summit, Stark

By Bill Lilley
Beacon Journal staff writer

POSTED: 07:06 p.m. EST, Feb 08, 2010

GREEN: The buzz came through the conference room Monday morning at Kovatch Castings Inc. that Gov. Ted Strickland wouldn’t be able to attend the news conference as previously announced because of the funeral of a fallen state trooper.

It was met with relative indifference by the 200 area business leaders, Kovatch Casting workers and local and state politicians.

The important thing was this: Stimulus money was coming.

In fact, nearly $4 million of the $11.8 million in grants for targeting industry efficiency that were announced throughout Ohio on Monday were going to companies in Summit and Stark counties.

Advanced energy funding proposals were submitted by 38 companies last October. A screening committee then reviewed the applications and selected 18 to receive awards ranging from $250,000 to $1 million.

”This has a huge impact for the area,” said Department of Commerce Director Kim Zurz, a Green resident. ”This really helps the companies address and be prepared for the future.

”It will help to grow jobs and to stabilize the jobs that are already here. It also helps all of the companies become more energy efficient.

”But mostly, it gives them that extra push right now in tough economic times that they might not otherwise get.

”It bodes well for all businesses in the area.”

Kovatch Castings will receive $1 million to replace three inefficient ovens with two energy-efficient gas ovens at its foundry. The new ovens are expected to reduce gas consumption by 47 percent.

Kovatch Castings President Doug Kovatch said his company commits ”to be energy efficient and good stewards of the grant.”

Kovatch said his company would be expanding its building and creating about 45 jobs. Kovatch Castings employs 160 at the plant, which was built in Green in 1991.

Kovatch said the company is contributing $2 million to the project, which is expected to cost $3 million.

”We expect this to have a huge impact on our company,” said Kovatch, whose father founded the company on Home Avenue in Akron in 1976 while the Kovatches lived in Parma.

”Our sales were $15 million in 2009, and we project to have sales at $25 million in five to seven years.”

Empire Die Casting Co. Inc. in Macedonia will get $835,000 for a highly advanced aluminum melting, distribution and holding system that will improve thermal efficiency and lower melt loss at its foundry. Company officials project eight jobs will be created.

Republic Storage Systems of Canton will receive $550,000 to replace its central boiler with a combination of gas-fired boiler units for production process heating and direct-fired air-handling units for space heating. The project is expected to create six jobs.

Timken Co. will receive two grants totaling $1,175,000 to install a waste heat boiler and replace gas burners with regenerative-style burners. The project is designed to save energy and reduce greenhouse gas emissions.

Shearer’s Foods Inc. of Brewster will get $291,879 to install waste heat recovery equipment and controls in manufacturing snack foods. The project is expected to save $540,483 and create or retain 26 jobs.

U.S. Rep. Betty Sutton, D-Copley Township, extolled the virtues of the stimulus project nationally.

”This is what the American Recovery and Reinvestment Act is all about,” Sutton said. ”For every one job that it directly creates, there will be four more jobs that will be created down the road.”

Green Mayor Dick Norton was pleased with the fact that additional income and property taxes will be derived from the grant to Kovatch Castings Inc.

But he was more even pleased that the grant will provide stability with the company.

”Job creation is a very serious business,” Norton said. ”But we are also very pleased that it will help Kovatch Castings become an even stronger company for the long term.”

Norton said he believes the companies involved rather than politicians deserve the recognition.

”They [companies] are the ones that take the risks,” Norton said. ”They are the ones who take out the second mortgages to make it all work. They deserve the credit, too.”