Manufacturing

NEWS - Manufacturing

Tronox won control of its bankruptcy back in April and filed its reoganization plan on July 12. Creditors will vote on the plan by Sept. 13. The company had a chemical plant on President St., along the Savannah River, just to the east of Savannah’s historic district, and is a a maker of whitening pigment and other chemicals.

The company’s bankruptcy is complicated by an alleged pollution claim by the city of Henderson, Nev., where the chemical company also operated, and is accused of putting perchlorate, hexavalent chromium and other toxic chemicals into the soil and groundwater.

Bloomberg News reported in April that “lawyers for Nevada, California and Arizona water and environmental agencies, calling themselves the Colorado River Authorities, said in court papers that millions of people using Colorado River water are endangered by toxins from the Henderson property.”

Tronox claims that when it bought the former Kerr McGee in 2006 for $18 billion, it was saddled with $550 million in liabilities including various pollution suits.

NEWS - Manufacturing

By Lou Phelps, SBJ Staff

 

June 28, 2010 - Savannah-based Ourlife has landed a major local contract, a multiyear deal to implement its innovative health and wellness programming for the employees of Gulfstream Aerospace Corp, Savannah’s largest employer.

Ourlife was founded by Dr. Paul S. Bradley and a group of Savannah physicians. Using Ourlife’s proprietary S.A.V.E. Rx technology, Bradley and his colleagues have determined that many individuals can save hundreds of dollars on their prescription co-pays by switching from a high-cost drug to an equally effective, alternative medication that costs less or requires no co-pay at all. 

In phase one of the partnership, Ourlife will help ensure that every Gulfstream employee in Savannah is receiving the best medications at the best prices.

Initially, Gulfstream employees will receive – at no cost – a customized, confidential S.A.V.E. Rx medication report which they are encouraged to share with their personal physician. The intent is to empower them to make better informed decisions about medication options, with a view to controlling out-of-pocket costs – and in the long run cutting Gulfstreams medical insurance costs, as well.

"Ourlife is pleased to be extending our programs to Gulfstream’s valued workforce,”

Dr. Bradley said last Thursday. “With physician involvement, medication costs can be effectively lowered and patient compliance improved – and that leads to improved outcomes. Ourlife occupies a unique niche in the health care industry because we offer our clients access to S.A.V.E Rx, a proven product that helps patients and their doctors more easily identify ‘The Best Meds at the Best Price.’”

 

According to Paul Dellinger, Gulfstream’s Director of Environmental Health and Safety, “We are pleased to offer our employees this new product as another benefit of our Partners 2 Health Program. Ourlife offers a turnkey solution to helping our employees improve their health and wellness while potentially reducing employee and employer costs.

 

The Ourlife company is best known for offering a medically-directed approach to weight loss and fitness, designed to reduce long-term health care costs and founded in 2006 by Bradley, and as the medical team managing Ruby Gettinger’s weight loss attempts.

 

Nationally, Gettinger and her doctors are featured on a show on the Style network, which also highlights the company’s original brand of “ Ourlife Fresh meals online and weight-loss shakes. “This is the meal plan that made Ruby Gettinger famous, helping her to lose over 175 pounds (and counting)…” according to the company.

 

“At nearly 500 pounds, Ruby began her weight loss journey under the care and guidance of Ourlife founder, Dr. Bradley, who deduced that proper diet, education, and exercise were truly the keys to Ruby’s long-term success.

 

With cameras watching, and America waiting, Ruby embarked on the mission of a lifetime. Meals fresh from Ourlife became a part of Ruby’s new eating regimen. Fitness activities were selected, mainly those previously watched by Ruby from afar. Counseling became mentoring, and mentoring led to trust. Ruby’s journey became ours. We all fell in love with Ruby,” according to the company’s website.

 

 

 

 

 

NEWS - Manufacturing

SBJ Staff Report

 

June 14, 2010 - PureSpectrum Lightening, Inc, headquartered in Savannah, met with stockholders this week, and has announced its first quarter 2010 financial results showing the company is out of cash and needs to raise more capital, and quickly, in order to keep operating. The company secured several small loans in April and May to meet short-term cash needs.

 

PureSpectrum is in the business of developing, marketing, licensing, and contract manufacturing a new generation of bulbs for use in residential, commercial, and industrial applications worldwide, and has patents pending.

 

But despite raising $282 million from investors over the past few years, as of March 31, 2010, the company had only $250.00 cash on hand, and reported that it had lost $1.6 million during the first quarter of 2010 plus $ 700,000 in interest expense on borrowings, for a total loss of $2.3 million for the quarter.

 

According to the company’s SEC filings, the company is no longer considered in “start-up” mode.

 

The company reported assets of $1.2 million in inventory of its lightening devices and other assets, but had only $9,000 in sales from January through March of its bulbs.

 

In 2009, PureSpectrum merged with International Medical Staffing Inc.,  a Delaware corporation incorporated in 2007 that traded on the Over the Counter stock exchange, getting PureSpectrum off of the “pink sheets” of junk stocks. The strategy provided PureSpectrum with a faster methodology of getting on a better stock exchange in order to sell more stock.

 

But, “there can be no assurance that  the Company will be successful in the commercialization of the fluorescent lighting technology that will generate sufficient revenues to sustain the operations of the Company,” according to SEC filings signed by president and CEO Lee Vanatta.

 

In order to improve sales and exposure of the company’s products, PureSpectrum announced last week that it has entered into an agreement with Dave Dettman, a.k.a. Dr. Gadget®, as a spokesperson for the company. The move is “aimed at enabling the company’s dimmable Compact Fluorescent Lamps (CFL) to gain access to widespread exposure via national television audiences as well as providing the company a global forum to educate the public about the importance of energy efficient lighting,” explained Vanatta.

 

Vanatta said the terms of the two-year agreement with Dr. Gadget® is category exclusive for lighting and dimmable CFLs. The agreement has been in development for some time and has been structured to maximize exposure for the PureSpectrum brand and products as the company continues its efforts to establish a presence in major chain retail stores for its CFL product line.

NEWS - Manufacturing

By Ray Steele
SBJ Editor

May 24 - The head of Imperial Sugar says the world’s sugar makers should combine their resources in the name of safety. This while he simultaneously fights a federal fine for safety issues, some of which led to the deadly explosion at Imperial’s Port Wentworth plant.

A hearing on the federal Occupational Safety and Health Administration’s $8.8 million fine that was scheduled for last week in Savannah was delayed as negotiations continue with Imperial Sugar on a possible settlement and/or reduction of the fine. $5.1 million of the fine stemmed from 124 safety violations OSHA says it found at the Port Wentworth facility, where 14 employees died as a result of the Feb. 7, 2008 explosion. The rest of the penalty is tied to Imperial Sugar’s Gramercy plant in Texas.

Imperial Sugar President and CEO John Sheptor would not comment on the talks with OSHA, but during his keynote speech at last week’s Sugar Industries Technologies conference in Savannah, Sheptor asked all sugar companies within the group to create a permanent safety committee to oversee development of combustible dust standards that exceed those imposed by any government or regulatory agency. “We can’t let our regulators do that for us,” said Sheptor. “We as an industry need to stand up and collectively promote the way the risks of our industry should be managed.”

That would be a change from the last two years during which Sheptor has opposed a bill co-sponsored by 12th District Rep. John Barrow (D., Georgia) that would force OSHA to quickly create a combustible dust standard. Sugar dust is believed to have ignited, causing the Imperial Sugar blast.

"We've been told over and over that it's not a question of if this type of accident is going to happen again, but when,” says Barrow. “We know what needs to be done. We need to put regulations that work in the workplace. I don't care how long it will take, but I'm going to keep on pushing it until it gets done.” Barrow and Rep. George Martin (D. Cal.) reintroduced the bill last year after it passed the House, but died in the Senate in 2008.

Reduced performance at the Port Wentworth refinery helped contribute to Imperial Sugar’s $33.3 million loss during the first quarter. The company says the loss was compounded by problems with derivative investments, which are used to hedge against volatility in the price of raw sugar. The market price of sugar was down during the quarter.

NEWS - Manufacturing

SBJ Staff Report 

Morris Publishing Group, LLC. has released its 1^st Qtr. 2010 operating results, a period during which the company filed for bankruptcy protection and emerged with reductions in overall debt, but tighter restrictions on use of the company’s cash, and absolute requirements that interest payments on new secured loans must be paid.

Advertising revenues dropped another (10.16%) versus the same period in 2009, a higher decline rate than industry performance numbers being reported nationally, including by companies such as McClatchy which owns newspapers in Macon and Columbus, Georgia, as well as the Hilton Head Island Packet.

Within Morris Publishing's daily newspapers, Savannah did the best of the company’s four daily newspapers in the local area. Advertising revenue at Jacksonville was down $2.5 million, or 18.4%, and St. Augustine was down $0.1 million, or 4.8%. Augusta was down $0.3 million, or 5.1%,  and Savannah was down $0.1 million, or 1.0%.

The company lost approximately $3.6 on operations after interest expense charges of $ 6.2 million during the quarter.  

Morris booked a one-time accounting gain of $164 million through the debt written off in the bankruptcy process that created a “book” gain, but not an operational gain or a cash profit.

After successfully emerging from bankruptcy, the company is now reporting a new total debt burden of $151.5 million as of March 31, 2010, including principal and interest, with an average interest rate of 10.34%. That means the company must significantly alter its operations to produce more than $10 million a year in profit to make interest payments, plus have cash on hand for operational needs, including surviving the tough months that are part of the newspaper business.

However, for the 150 days after emerging from bankruptcy, the company is being allowed to pay lower interest payments, roughly $833,000 a quarter, which is important as the company has been unable to make interest payments on its debt for more than two years.  

The new secured debt includes different terms the company had not previously faced versus its previous bond debt.  Morris is now only allowed to retain only $7 million in cash to run the company. Any cash over that amount must be applied to reduce the debt principal.

On April 26, “the Company had available cash on hand totaling $10,464,000 resulting in total excess cash of $3,464, with $3,211, plus $21 in accrued interest, being applied on to the total debt on April 23, 2010,” according to the company’s May 14, 2010 filings with the SEC.  

The payment was made the same day that the company managed to set up a senior, secured Loan and Line of Credit Agreement with Columbus Bank & Trust Company (the “Bank”), for a revolving line of credit in the amount of $10,000,000, which is available until its maturity date of May 15, 2011 and at a minimum rate of 6%

In the Morris SEC filings, the company states that the cash it has available may not be sufficient to operate in the less profitable months of the business.  

And, the company’s 10Q filing gave the first look into the company’s remaining assets and liabilities after exiting bankruptcy.  The company lists assets of $ 167 million and liabilities of $ 195 million, functionally still bankrupt.

An option to reduce the debt and interest payments, and improve the balance sheet, would be for Morris to sell off more of its newspapers and remaining assets, hinted at by the company’s filings:  

“We expect that, for the reasonably foreseeable future, cash generated from operations, together with the proceeds from the Working Capital Facility, and if applicable, any proceeds from the liquidation or sale of select businesses or assets, will be sufficient to allow us to service our debt, fund our operations, and to fund planned capital expenditures and expansions. However, our cash reserves or the Working Capital Facility may not be able to cover any significant unexpected periods of negative cash flow. 

“Our stronger capital position and increased liquidity affords us additional time and resources to execute our broader business restructuring strategy, including refinement of our business model, liquidation or sale of select businesses or assets, and efficiency enhancements. We will continue to focus on owning and operating newspapers and other publications in small and mid-size communities. We also will continue to implement strategies in response to declining advertising revenues and changing market conditions, including by restructuring the operations of our business and implementing various initiatives to increase revenues and decrease our costs.”

Editor’s Note:  The company has repeatedly declined to respond to questions from the media regarding its performance.

 

 

 

NEWS - Manufacturing

SBJ Staff Report

Coastal Logistics Group, Inc. (CLG) is getting bigger.  The company has broken ground on a new building that CLG says will allow it to offer a broader range of services to its customers. The new facility, expected to open its doors in the fall of 2010, is located in the CenterPoint Intermodal Center – Savannah (CIC-Savannah) four miles from the Savannah port.

Richard Barrow, CLG CEO and Chad Barrow, CLG President along with government and civic officials participated in a morning groundbreaking ceremony at the site to mark the official beginning of construction. The ceremony consisted of speeches from a Georgia Ports Authority representative, CenterPoint Properties executive and government officials.

“In the logistics arena, economic factors from around the globe affect how we approach our investment decisions, and we see those factors as both an incentive and an opportunity," said Chad Barrow.  The new facility will have direct rail access and will enable direct unloading of 10 railcars at a time, as well as bulk unload capability.  

“We are pleased to welcome Coastal Logistics to their new home at CIC-Savannah. Adding rail service to their logistics services in addition to locating adjacent to the NS Dillard Yard and the Port will provide their clients with significant transportation savings,” said Brian McKiernan, Vice President at CenterPoint Properties. “We are confident that the transportation advantages achieved by locating within the park will grow significantly over time which will underscore the forward-thinking mentality they displayed in this decision.”

The interior of the building will have state of the art energy efficient T5 fluorescent lighting, 5,600 square feet of office space and over 300,000 square feet of warehouse space with 32’ minimum interior clearance height. The exterior of the building will have outside storage capacity, trailer parking, covered rail canopy, 43 dock doors and two oversized ramps. The facility expansion represents the company’s ongoing strategic commitment to providing comprehensive solutions.

NEWS - Manufacturing

By Ray Steele
SBJ Editor

With a snip of the ribbon, Mercedes-Benz is officially shipping vehicles to dealerships across the South through it’s new Vehicle Preparation Center (VPC) in the Brunswick Port.  The grand opening is the culmination of last year’s decision by Mercedes-Benz to move its VPC from Jacksonville, bringing more than 40 jobs to Brunswick.

“Today's event is a prime example of the impact one company can have on a community and why job creation is our top priority. We are proud to welcome Mercedes-Benz and stand ready to assist and support them as they continue to invest in Georgia," said Lt. Governor Casey Cagle.

The Brunswick Vehicle Preparation Center in its entirety consists of four structures totaling more than 103,000 sq. ft on a 50 acre site.  It is one of five VPC facilities in the U.S. that serve as the first stop – after U.S. Customs – for new Mercedes-Benz vehicles destined for Mercedes-Benz dealerships throughout the United States. Located in Glynn County on the south side of Colonels Island, the Brunswick VPC will process vehicles headed for Mercedes-Benz dealerships throughout the Southern Region, Texas and Oklahoma.   

"The opening of the new VPC, and the choice of this location, represents our ongoing commitment to drive operational efficiencies that ensure we are giving our dealers what they need to provide the very highest levels of customer satisfaction," said Ernst Lieb, CEO of Mercedes-Benz USA.  "This new facility has already enabled reductions in terms of cost and time in the delivery of new vehicles and this is obviously to the benefit of our customers."

The VPC is capable of accessory installation, full body shop operations, and vehicle detailing and distribution operations.  The VPC is also in the process of being LEED Certified as it incorporates components that are environmentally friendly from water use reduction to indoor environmental quality controls including use of daylight in 75 percent of spaces, thermal monitors and construction materials.

NEWS - Manufacturing

By Ted Carter
SBJ.com Staff

The U.S. Occupational Safety & Health Administration, or OSHA, is likely to pay close attention to the 25 Savannah employers it notified earlier this month of having workplace-accident-and-illness rates 150 percent higher than the national average.

“Employers are responsible for their workplace safety and health,” said Mike Wald, spokesman for OSHA’s Atlanta office. “So when you find them having injury rates like this it raises a red flag.”

And it puts the employers more fully on the workplace safety agency’s radar screen, he said. “You don’t know when we’re coming to visit.”

The Savannah area employers were among about 500 manufacturers and companies in Georgia and 15,000 nationwide informed in mid March that 2008 data showed they had the highest numbers of injuries and illnesses resulting in days away from work, restricted work activities, or job transfers. 

The federal agency, a division of the Department of Labor, based the 2008 injuries reports on surveys of 100,000 workplaces nationwide.

After reviewing the surveys, the safety agency sent letters to the various employers along with copies of their injury and illness data. The letters also included a list of the most frequently cited OSHA standards for each entity’s specific industry.

The 25 local employers tallied workplace related injuries and illnesses at a rate of 4.5 per 100 employees, OSHA said. The national average is 2 per 100 workers, according to the agency.

The agency notified a range of Savannah employers, including construction contractors, a national home improvement goods retailer, nursing homes and manufacturers.

OSHA also cited Savannah-Hilton Head  International Airport, which had 177 employees in 2008 and reported 15 injuries resulting in 26 days away from work, said Lori Lynah, airport spokeswoman.

“The majority of those injuries were sustained in jobs that are no longer being handled by airport employees,” she said in an e-mail, and noted the change in job assignments should ensure the airport shows a lower rate for 2009.

She said last year’s numbers have yet to be filed.

The airport was one of only a few of the local employers to respond to questions about the letters posed by Savannah Business Journal.com and Savannah Daily News.   Most referred the questions to managers or executives who did not return telephone calls.

In addition to Savannah-Hilton Head International Airport, employers sent the OSHA letters were:
• Division 9 Contractors Inc., Savannah
• Lummus Corp., Savannah
• Erickson Associates Inc., Savannah
• Savannah Foods Industrial (de)
• Savannah; Lowes Home Centers Inc., Savannah
• Lowes Home Centers Inc., Pooler
• Lowes Home Centers Inc., Rincon
• Kennickell Printing Co., Savannah
• Azalealand Nursing Home Inc., Savannah
• Great Dane Ltd. Partnership, Savannah
• Pepsi-Cola Metro Bottling Co., Savannah
• Metalcrafts Inc., Savannah
• South Atlantic Forest Products Inc., Savannah
• United Parcel Service Inc., Savannah
• Heritage Healthcare of Savannah
• Kindred Healthcare Inc., Savannah
• Mock Plumbing and Mechanical Inc., Savannah
• Standard Concrete Products, Savannah
• Savannah Air Center LLC
• Savannah Pace Electrical Contractors Inc.
• Kerby Enterprises Inc., Pooler
• Moss Oaks Health Care Center, Pooler
• Imperial Sugar Co., Port Wentworth
• Bryan County Health Rehabilitation Center, Richmond Hill.

OSHA is offering consultation services on safety and health in the workplace for employers with 250 or fewer workers. This program is administered by a state agency and operated separately from OSHA's enforcement program. The service is free and confidential, and there are no fines even if problems are found, the agency says.

Designed for small employers, the consultation program can help an employer identify hazards while finding effective and economical solutions for repairing them, agency officials say. In addition, the OSHA state consultant can assist in developing and implementing a safety and health management system for the workplace.

Wald, OSHA’s Atlanta spokesman, said the safety notifications should lead to some self-assessment on the part of employers. “They need to find people (in their sectors) who have low numbers and ask what they are doing that we aren’t doing.”

For instance, the Savannah airport could work with other airports of its size to see what they do to limit workplace injuries and illnesses. Wald said employers should also look at safety issues in relation to their profit pictures. “If you have workers who are out because of injuries or illness, you are losing productivity. It’s absolutely a bottom line issue.”

He noted the sensitivity of workplace safety in Savannah that stems from the Dixie Crystals’ plant explosion of February 2008 that killed 14 workers and severely injured many others.

But there’s a danger that Savannah employers look at the tragedy as something unrelated to their workplaces, Wald said. “The incident was based on an explosion of sugar dust,” he said. And the companies figure that since “we don’t produce sugar, we’re not dangerous.”

Meanwhile, Savannah attorney Brent Savage, who is representing a dozen clients in suits stemming from the Dixie Crystals explosion, is encouraged by OSHA’s letter-writing effort. He said closer scrutiny of workplace safety is more important than ever in a tough economy in which employers may be tempted to sacrifice safety to save money.

“I think OSHA is doing a great thing,” Savage said.