Feb. 14, 2011 - GrafTech International, a maker of graphite materials used in the steel industry and in commercial products, is expanding its markets and buying other companies.
This year, GrafTech with plants in the United States, Mexico, Brazil, South Africa, Italy and Spain is celebrating its 125th anniversary.
The company has about 2,500 workers, including about 200 in Parma. Its sales exceed $1 billion.
"The story here is a technology-turnaround story, said Lionel Batty, vice president of corporate research and development at GrafTech.
"The company used to very much focus on steel-making and steel-recycling, Batty said. That s a very good business for us but it s cyclic. It goes up and down, just like steel.
Over the past 10 years or so, GrafTech has started supplying graphite used in plasma TVs, cell phones, laptop computers and other electronic devices.
The company s graphite is also used to make silicon in solar applications like rooftop solar panels.
On the acquisition front, GrafTech in November bought Seadrift Coke LP, the world s second-largest manufacturer of petroleum-based needle coke.
Needle coke is used to make electrodes in steel-recycling, Batty said.
Also, in December, GrafTech purchased C/G Electrodes LLC, a maker of graphite electrodes. The two acquisitions were the first in GrafTech s history.
In addition, GrafTech recently opened a Learning Center at its Parma plant, where company workers from all over the world share efficient business practices.
The company has come a long way from an industry-wide price-fixing scandal about 15 years ago. Batty said those controversial days are long gone.
In fact, Batty said GrafTech is feeling nothing but pride as it celebrates its anniversary.
"I don t think there are all that many companies in the world that has a 125-year history and is still surviving and thriving, that grew from whatever markets existed in 1886 to being in the Apple iPhone today, Batty said.
The company now known as GrafTech was established in 1886 by Charles F. Brush, who has a high school named after him in Lyndhurst.
At the time the firm was called the National Carbon Co. The first plant was in Lakewood and it s still part of GrafTech today.
Initially, the company made arc carbons for electric lamps, Batty said. Then it entered the steel industry.
GrafTech constructed its Parma building in 1956. The Energizer battery was developed here.
The price-fixing scandal hit in the mid 1990s. GrafTech was one of several companies involved.
The U.S. Department of Justice fined GrafTech almost $1 billion. It was one of the largest federal fines ever levied against a company.
As a result, GrafTech accumulated a lot of debt. The low point was in 2005 when it owed $689 million.
The company was forced to close plants. Employment in Parma sunk to 97 workers before the company started rebounding.
"That legacy is entirely past us, said Kelly Powell Taylor, GrafTech s manager of investment relations. It was a completely different management team.
Batty said the turnaround started in 2003 when Craig Shular became CEO. Shular still holds that position today.
Then, in 2006, GrafTech moved its global headquarters from Wilmington, Del. to Parma. It was partly due to Ohio s tech-friendly environment.
"Also, we wanted to get all of our tech people and business people under one roof, Batty said. We have a big facility in Parma.
The company started winning R&D 100 awards, given by R&D magazine to innovative companies. GrafTech won from 2003-2007.
"At that time there was only one other company in the world that had won five in a row, said Batty. We ve won another couple since.
By the end of 2009, the company had completely eliminated its debt, although that changed last year when it borrowed money to make the two acquisitions.
About three years ago, GrafTech kicked off its lean initiative. Lean is a business philosophy on how to operate without waste.
In a plant, lean might have to do with the layout of equipment. A worker should have all of the parts and equipment he or she needs in one area.
"In some cases we actually followed a guy around with a walking wheel and found out he was walking five miles in a day, Batty said. Why?
"If you put everything he needs next to each other, he can get that much more done, Batty said. And it s better for him he s not wasting his time walking around.
GrafTech employees teach each other lean principles at the new learning center. The center was designed by Ohio Desk and features the latest in ergonomic design.
For example, all walls in the center have projector screens so workers can face each other without having to twist their necks looking at one screen.
"Our philosophy is to get everybody up to the same level, Batty said. We are a multinational company with global customers. We want all of our plants in all of our locations to be right at the top of their game.
This year, GrafTech with plants in the United States, Mexico, Brazil, South Africa, Italy and Spain is celebrating its 125th anniversary.
The company has about 2,500 workers, including about 200 in Parma. Its sales exceed $1 billion.
"The story here is a technology-turnaround story, said Lionel Batty, vice president of corporate research and development at GrafTech.
"The company used to very much focus on steel-making and steel-recycling, Batty said. That s a very good business for us but it s cyclic. It goes up and down, just like steel.
Over the past 10 years or so, GrafTech has started supplying graphite used in plasma TVs, cell phones, laptop computers and other electronic devices.
The company s graphite is also used to make silicon in solar applications like rooftop solar panels.
On the acquisition front, GrafTech in November bought Seadrift Coke LP, the world s second-largest manufacturer of petroleum-based needle coke.
Needle coke is used to make electrodes in steel-recycling, Batty said.
Also, in December, GrafTech purchased C/G Electrodes LLC, a maker of graphite electrodes. The two acquisitions were the first in GrafTech s history.
In addition, GrafTech recently opened a Learning Center at its Parma plant, where company workers from all over the world share efficient business practices.
The company has come a long way from an industry-wide price-fixing scandal about 15 years ago. Batty said those controversial days are long gone.
In fact, Batty said GrafTech is feeling nothing but pride as it celebrates its anniversary.
"I don t think there are all that many companies in the world that has a 125-year history and is still surviving and thriving, that grew from whatever markets existed in 1886 to being in the Apple iPhone today, Batty said.
The company now known as GrafTech was established in 1886 by Charles F. Brush, who has a high school named after him in Lyndhurst.
At the time the firm was called the National Carbon Co. The first plant was in Lakewood and it s still part of GrafTech today.
Initially, the company made arc carbons for electric lamps, Batty said. Then it entered the steel industry.
GrafTech constructed its Parma building in 1956. The Energizer battery was developed here.
The price-fixing scandal hit in the mid 1990s. GrafTech was one of several companies involved.
The U.S. Department of Justice fined GrafTech almost $1 billion. It was one of the largest federal fines ever levied against a company.
As a result, GrafTech accumulated a lot of debt. The low point was in 2005 when it owed $689 million.
The company was forced to close plants. Employment in Parma sunk to 97 workers before the company started rebounding.
"That legacy is entirely past us, said Kelly Powell Taylor, GrafTech s manager of investment relations. It was a completely different management team.
Batty said the turnaround started in 2003 when Craig Shular became CEO. Shular still holds that position today.
Then, in 2006, GrafTech moved its global headquarters from Wilmington, Del. to Parma. It was partly due to Ohio s tech-friendly environment.
"Also, we wanted to get all of our tech people and business people under one roof, Batty said. We have a big facility in Parma.
The company started winning R&D 100 awards, given by R&D magazine to innovative companies. GrafTech won from 2003-2007.
"At that time there was only one other company in the world that had won five in a row, said Batty. We ve won another couple since.
By the end of 2009, the company had completely eliminated its debt, although that changed last year when it borrowed money to make the two acquisitions.
About three years ago, GrafTech kicked off its lean initiative. Lean is a business philosophy on how to operate without waste.
In a plant, lean might have to do with the layout of equipment. A worker should have all of the parts and equipment he or she needs in one area.
"In some cases we actually followed a guy around with a walking wheel and found out he was walking five miles in a day, Batty said. Why?
"If you put everything he needs next to each other, he can get that much more done, Batty said. And it s better for him he s not wasting his time walking around.
GrafTech employees teach each other lean principles at the new learning center. The center was designed by Ohio Desk and features the latest in ergonomic design.
For example, all walls in the center have projector screens so workers can face each other without having to twist their necks looking at one screen.
"Our philosophy is to get everybody up to the same level, Batty said. We are a multinational company with global customers. We want all of our plants in all of our locations to be right at the top of their game.
