REFRACTORY SPECIALTIES INC. Lab works on fuel-cell insulation

THE VINDICATOR, YOUNGSTOWN, OHIO
By DON SHILLING
VINDICATOR BUSINESS EDITOR
SEBRING -- A small piece of the future is being developed in a lab in Sebring.
For the past two years, a technician at Refractory Specialties Inc. has been making insulation for what could power much of the world in coming years -- fuel cells.
Each piece is being crafted to exact specifications out of a mixture of ceramic fibers, a hardy material that RSI uses to insulate a variety of products, including steel ingots and appliances.
Even though it's a small company, RSI has devoted one employee full time to the fuel cell project because of the potential payoff.
RSI stands to gain millions of dollars in additional sales if fuel cells become commercially viable, said Dick Wilk, company president.
He acknowledges that's a big "if" because no one knows for sure whether fuel cells can fulfill their promise at a reasonable cost. Fuel cells generate electricity from hydrogen through a chemical reaction without producing any pollution.
Despite the uncertainty, Wilk and his partner, Suhas Patil, want to get in on the ground floor of fuel cells.
Their California Avenue company spent $200,000 two years ago on a production room for fuel cell insulation to show a commitment to technology being developed by Siemens Westinghouse Power Corp. The room at RSI hasn't been used yet because the insulation still is being made in small quantities in the lab.
Siemens Westinghouse is using the RSI insulation and other products at a research center outside Pittsburgh as it tries to bring down the cost of fuel cells so they can be brought to market.
Interest in fuel cells has grown since President Bush proposed spending $1.7 billion to advance fuel cell research during his State-of-the-Union address.
Research
Though most attention has been focused on using fuel cells in cars, Siemens Westinghouse is working on large units that would provide power for industrial plants or cities. Wilk said that company is targeting developing countries that don't have power distribution systems.
"It seems like we're four to five years away, if not 10 years, from fuel cells' being commercially viable," said Patil, RSI manager of engineering and business development.
Even if fuel cells fail, RSI's efforts will be worthwhile because hydrogen stands to become a more common fuel, Patil said.
Wilk said the new production room could be switched over to a regular production line if fuel cells don't work out.
Expanding into fuel cells is part of a larger effort by Wilk and Patil to grow RSI.
They were managers at the plant in 1992 when Ferro Corp. of Cleveland decided to sell the operation. They agreed to buy the plant, which produced insulation for boilers, water heaters and furnaces.
RSI produces insulation through vacuum forming. This process takes a slurry of ceramic fiber and pulls it against a screen to form a shape.
Since acquiring the company, Wilk and Patil have increased sales from $1.8 million to $5 million. Employment has increased from 18 to 42.
They have kept the original market -- the company makes insulation for Trane's new high-efficiency furnaces -- but have expanded into new areas. One new product is insulation for Polara, a new combination range-refrigerator being marketed by Whirlpool.
Custom design
Wilk and his family own Specialty Ceramics Inc. in Columbiana, which operates as a sister company of RSI and has taken on some of its production. The Columbiana plant, which employs 80, primarily makes gas fireplace logs.
Wilk said RSI's strength is being able to produce custom-designed insulation.
"We're always selling engineering, quality and service. We know we have to be competitive, but we don't have to have the lowest price," he said.
Still, RSI is facing constant pressure to reduce prices, Patil said. Instead of just reducing its charges, RSI looks to change its products so they can be made more economically, he said.
For example, the Trane product originally was a flat piece of insulation with four walls. Research showed that two of the walls could be eliminated and not increase heat loss.
Eliminating two walls also allowed RSI to produce the pieces on a continuous run, instead of one at a time, Patil said.
RSI has spent more than $1 million on improving the plant since 1992, and the owners enjoy the decision-making ability they have.
"With Ferro, it was hard to get $10,000," Wilk said. "Now, we sit down in one afternoon and decide to spend $500,000."
Wilks said he doesn't hesitate to embark on new ventures such as the one with Siemens Westinghouse because RSI is a small company that is vulnerable to market forces. Patil spends half of his time on the road, attending conferences or meeting with clients.
"We're always striving to find new markets," Wilk said.
shilling@vindy.com