Investment from resurgent American automakers made big news in 2011, with General Motors and Chrysler announcing multiple large projects in Toledo and northwest Ohio that together total nearly $1 billion and should create or help preserve almost 3,400 jobs.
Promise for the future of manufacturing in northwest Ohio was one of the brights spots in a year that saw many changes to the business landscape in the region. There were lawsuits, leadership changes, spin-offs and sales, bankruptcies and closings -- all set against the backdrop of an economy clawing its way back from the depths of recession.
In addition to the investment from the old guard automotive sector, another solar company announced plans to put down stakes in northwest Ohio. Isofoton North America plans to invest more than $31 million in a solar panel manufacturing facility in Napoleon. The plant figures to open this year and eventually create 330 jobs. Isofoton, whose parent company is based in Spain, will become the fourth solar-technology company operating in the area.
The big bucks in manufacturing are coming from Chrysler Group LLC. The automaker last year committed $500 million to its Toledo Assembly complex. That investment, which will go toward updating the line that ultimately will build Jeep's new sport utility vehicle in 2013, will add a second shift to the plant, and lead to more than 1,100 jobs. Chrysler also said it planned to invest $72 million in its Toledo Machining Plant.
General Motors Co. announced plans for two investments totaling $343 million in its Toledo Transmission plant for upgrades and a new line for an upcoming eight-speed transmission. It also plans to pump $47 million into its Defiance Powertrain plant.
"We're seeing a tremendous amount of capital investment in our traditional manufacturing sector around the automotive industry," said Ford Weber, president and chief executive officer of the Lucas County Improvement Corporation.
In addition to the automakers and other large-scale manufacturers, Mr. Weber noted suppliers are investing in facilities here, and that's likely to continue, especially with emphasis on just-in-time delivery.
"Even though the region has underperformed the national economy for a number of years, we're at a point now where we might see northwest Ohio outperform the national economy. Not that things are going to be particularly booming either nationally or locally, but I think we're going to be doing much better than we've done the last few years," Mr. Weber said.
Another high point for the region was the creation of northwest Ohio's largest public company when Findlay-based Marathon Petroleum Corp. separated from Marathon Oil Corp. in Houston to become its own operation. Marathon Petroleum, which is the nation's fifth-largest oil refiner and had revenues of $62.5 billion last year, spun off in June.
The company's stock, trading under the ticker symbol MPC, opened July 1 at $41.20 and hit a high of $44.97 Aug. 1 before falling back to hover around $33 the last few days of the year.
Though the Tony Packo's Inc. restaurants have continued serving up Hungarian hot dogs and other traditional trimmings as they have for generations, a legal saga surrounding the 79-year-old chain continued for most of the year. Some issues in the ordeal appear close to being resolved. A judge approved a $5.5 million sale of Tony Packo's Dec. 19 to fast-food restaurateur Bob Bennett, though it's likely that decision will be appealed.
Still unresolved is a shareholder derivative lawsuit half-owner Robin Horvath filed against Tony Packo, Jr., and Tony Packo III, who jointly own the other half. Mr. Horvath, who has also fought the sale to Mr. Bennett, alleges the Packos misspent company money.
And after months of investigation by the Lucas County prosecutor's office, a Lucas County grand jury indicted Mr. Packo III and company controller Cathleen Dooley last month on three counts of aggravated theft. The indictment alleges Mr. Packo III stole $170,000 from the business that was started by his grandfather.
The company has been in receivership since August, 2010.
Also sold this year was the downtown Park Inn hotel. A group of Chinese investors purchased the 400-room, 14-story hotel in September for $3 million. The investors aren't connected to those involved with Dashing Pacific, the group that purchased the Marina District from the city last year.
There were also changes at the top of some of the area's big companies in 2011.
New chief executive officers took over at Dana Holding Corp., and Libbey Inc. New Dana CEO Roger J. Wood became the fourth person to lead Dana since it emerged from bankruptcy protection in January, 2008. Libbey's Stephanie A. Streeter became the second chief executive officer since the company spun off from Owens-Illinois Inc. in 1993.
The CEO of Cedar Fair LP also is stepping down after a quarter-century on the job. Dick Kinzel will be replaced by Matt Ouimet, a former Disney executive.
The parent company of Sandusky's Cedar Point also remained in the news this year as its continued fighting with its largest shareholder, Q Investments. The spat eventually led to shareholders and the company's board approving a somewhat peculiar motion that will allow any shareholder to nominate candidates for the board of directors.
Several businesses closed the doors of their local operations for the last time in 2011. One of the largest was BAX Global Inc., which in September shut down its air hub at Toledo Express Airport, eliminating 700 jobs. Company officials said the closure was part of "strategic realignment." The number of domestic flights for BAX in and out of Toledo had fallen sharply, coinciding with a steep drop in air freight in general.
But it didn't take long to find a new tenant, with the start-up BX Solutions Inc. signing a lease deal with the Toledo-Lucas County Port Authority less than two months after BAX Global left. BX Solutions will operate a truck-based logistics center.
There were also several big-name local bankruptcies, in addition to the liquidation by bookseller Borders Group Inc. that resulted in the large store in Westfield Franklin Park closing.
Bostleman Corp., a six-decade old construction company, shut down in November after filing for bankruptcy liquidation. The company, which had served as construction manager for projects at state universities, public school districts, hospitals, and shopping centers, attributed the bankruptcy to cash-flow problems and heavy debt. Also filing for bankruptcy was restaurateur Tom Cousino, who had previously operated two restaurants at The Docks in East Toledo. The failure of those two eateries -- Navy Bistro and Tango's -- contributed to Mr. Cousino's filing, documents said.
Still ongoing is the labor dispute at Cooper Tire & Rubber Co. The Fortune 500 company locked out more than 1,000 workers from its Findlay manufacturing plant in November after the two sides failed to agree upon a new contract. Negotiations are expected to resume this week. Cooper, based in Findlay, is a major U.S. supplier of replacement tires for cars and light trucks and is Hancock County's second-largest employer.
In media news, The Blade overhauled its toledoblade.com Web site in February. Company officials said the redesign made the area's No. 1 news site less cluttered and more user friendly. The Blade also launched OurTownSylvania.com in December. The site is dedicated solely to covering Sylvania and Sylvania Township. The Blade plans to eventually launch other sites for other suburbs.
In investment news, Toledo got its first local mutual fund since 2007 with the launch of Camelot Portfolios LLC's Camelot Premium Return Fund. The fund, which trades under the ticker symbols CPRFX and CPRCX, is down about 2 percent on the year.
Contact Tyrel Linkhorn at: tlinkhorn@theblade.com or 419-724-6134.
First Published January 1, 2012, 5:15 a.m.
