Malcolm Baldrige National Quality Award
2007 Award Recipient, Small Business

PRO-TEC Coating Company

Type of Work: PRO-TEC provides world-class, hot-dipped galvanized coated sheet steel primarily to the most demanding customers and applications in the automotive market. Established in 1990 as a joint venture between United States Steel Corp. and Kobe Steel of Japan, PRO-TEC continues to operate under the joint venture agreement.

Web site: http://www.proteccoating.com

Revenues: $846 million (FY 2006)

Workforce: 236 associates

Location: Leipsic, Ohio

Highlights

• PRO-TEC has been continuously profitable for 12 years in an industry that has been undergoing widespread bankruptcies and consolidations. Over the past five years, profits have doubled.

• PRO-TEC is the industry leader in advanced high-strength steel coating and ultrahigh-strength steel coating, supplying about 15 percent of all hot-dipped galvanized steel to the automotive market. PRO-TEC produces in excess of 100 percent of design capacity in a 24/7 operation.

• PRO-TEC creates a strong culture that emphasizes individual ownership, responsibility and accountability (ORA), and safety through programs including:

  • a three-week associate orientation followed by six months of mentoring;
  • a practice of 100 percent internal promotion for non-exempt positions;
  • pay for knowledge which rewards the completion of specific training;
  • 100 percent tuition reimbursement for all working toward an approved degree;
  • processes that provide follow up on 100 percent of improvement suggestions; and

  • a substantial profit-sharing program that allows associates to monitor real-time company earnings and individual profit shares.

• PRO-TEC proactively addresses potential concerns with its operations above compliance to ISO 9001, ISO/TS 16949 and ISO 14001 standards. This is done through voluntary participation and acceptance in EPA’s National Environmental Performance Track (NEPT) and OSHA’s Voluntary Protection Program (VPP) Star site status. Additionally, through a voluntary initiative to recycle and reuse water, 46 percent of the process water needs are met. PRO-TEC was the first steel processing plant to have earned both the VPP Star and NEPT recognition at the same time.

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