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By Art
Sanda
In any other
industry, Keith Patterson of Jeffrey Specialty Equipment
Corporation would be an anomaly but—as perhaps is indicative of
what has taken place in the mining industry over the years in
operating companies and manufacturers alike—Patterson has had
continual employment for nearly 30 years, but for five different
owners.
Known today
for its preparation plant and mineral processing equipment,
nearly a century ago Jeffrey then the Joy of today, and it very
well could have remained so had it not been for a disagreement
between Joseph Joy and his then employer, The Jeffrey
Manufacturing Company.
“In the
early 1900s,” Patterson said, “Joseph Joy was working as an
engineer for Joseph Jeffrey’s company, the company that had
developed the industry’s first rail-mounted “face-undercutter”.
A disagreement resulted in Joy leaving Jeffrey to form his own
company, probably one of the most significant turning points in
the history of the mining machinery industry.”
“Though
almost a century ago,” Patterson said. “Jeffrey’s roots date
back still further, to 1876 when Louis Lechner’s invention of an
air operated undercutting machine for the coal industry brought
together him and banker-investors Francis Sessions and Joseph
Jeffrey, in whose Perry County, OH coal mine the machine was
tested. By 1887, Jeffrey was the sole owner of Lechner Mining
Machine Company and the name had been changed to Jeffrey Mining
Machinery.”
According
to Patterson, it was Jeffrey who slowly but inexorably led the
coal industry to mechanization, from cutting machines to the
first direct current electric haulage locomotive, developed in
collaboration with Thomas Edison.
“By 1900,
Jeffrey had the largest manufacturing facility in Columbus, OH
and had manufacturing and sales offices in England, South Africa
and Australia, and also had expanded into non-mining
applications of its equipment,” Patterson recounted.
“Throughout
the 1920s and 1930s, the company expanded through acquisitions,”
he continued, “beginning with the Ohio Malleable Iron Company in
1904 (chain castings) and then the Galion Iron Works and
Manufacturing Co. (steam rollers and road graders) in 1929. By
1930, the Jeffrey product line also included belt, screw and
chain conveyors, crushers, mine ventilation fans, coal
preparation equipment, foundry systems, and wastewater treatment
equipment; it’s product catalog of the period exceeded 960
pages.”
During
World War II, while the company continued production of mining
equipment, Jeffrey also manufactured Euclid trucks, and
construction machinery for building landing strips to support
the war effort, Patterson said. “Following the war, the company
continued to expand and, by the 1950s, the original
manufacturing facility had grown to more than one million square
feet under roof, there were sales and distribution offices in 16
states, as well as in Canada, Brazil, Chile, South Africa,
France, Australia, Belgium, England, and Russia. The company had
more than 7,500 employees worldwide.”
Patterson
himself joined Jeffrey in December 1979. “At the time, I had
been with National Mine Service since graduating as a mechanical
engineer from the University of Pittsburgh in 1975. While at
Pitt, I had worked with the Bureau of Mines, then MESA (Mine
Enforcement and Safety Administration), doing studies on diesel
emissions for underground use in coal mines.
“My first
job with National Mine Service in Kentucky was as a design
engineer working on diesel locomotives. It was interesting work
but, at the same time, I was becoming bored sitting all day at a
drafting table; there was no customer interface. In 1979,
Jeffrey gave me the opportunity to apply my expertise designing
a line of diesel locomotives, both low and high profile models.
“Jeffrey
had a unique approach in its management structure. As a
production manager with marketing responsibilities for a product
line, you also had responsibility for engineering of that
product line with a staff of engineers. You set the priorities,
and you had profit and loss responsibilities.
“Apparently, I succeeded to their standards as eventually I had
full responsibility for five product lines: Ramcars, continuous
haulage, locomotives, mainline ventilation fans, and satellite
water pumps. The only product line for which I was not
responsible was continuous miners, that came under Warren Fife.
“Back when
I started with them as an applications engineer, Jeffrey was a
private company owned by the Jeffrey family,” Patterson offered.
“In 1974 it was bought by Dresser Industries, a public company,
which, in 1992, spun off a number of its non-oil-related
companies, including Jeffrey, into newly-formed Indresco, a
holding company.
“In 1995,”
he continued, “the mining and processing lines were split at
Jeffrey, with the mining side being sold to Long-Airdox Co.,
subsequently purchased by DBT which itself was bought by Bucyrus
International, Inc. in October 2007. The processing side of the
business—Jeffrey Processing Equipment—was sold by Indresco to
Global Industrial Technologies, another holding company, and
then was purchased by Pennsylvania Crusher Co. of Philadelphia
in 1999—returning to private ownership for the first time since
1974—and was renamed Jeffrey Specialty Equipment Corp. In 2003,
Pennsylvania Crusher was bought by K-Tron International Inc. of
Pitman, New Jersey. During a time while some folks in this
business were changing jobs, I was changing owners,” Patterson
recalled.
“The
beginning of the end for the original Jeffrey was staying with
hydraulics too long after Joy developed the electric continuous
miner,” Patterson said. “Also contributing to its demise was
just the general evolution of a family owned company. You go
from the founder to the offspring to the grandchildren to, in
some cases, the great grandchildren. Where originally the hard
driving force of the founder was there to make the company
successful, the children, in a lot of cases, live off that
success and, by the time you get to the grandchildren, the
interest level in the company no longer is there, they don’t
want to be involved.
“Tad
Jeffrey was the exception to that, however, Patterson added. “A
grandson of the founder, Joe Jeffrey, Tad worked in engineering
as a degreed engineer; he went underground, he knew mining
methods. I doubt if he was one of the heirs who wanted to sell
the company to Dresser back in ’74. I don’t know that, but I
feel it. As far as I know, he’s still in Columbus, and he’s
still active.”
In the
process of changing ownerships and concentrating on the
manufacture of processing equipment, the once immense Jeffrey
facilities that occupied blocks upon blocks of Columbus, OH was
no more. In 1985 the manufacturing of mine haulage and auxiliary
equipment (spun off 10 years later) was moved from Columbus to
the Jeffrey facilities in Woodruff, SC situated halfway between
Spartanburg and Greenville.
That same
year, Patterson was given the task of moving there the remaining
manufacturing and engineering activities from Washington, PA.
The remaining Jeffrey facilities in Canada, England and South
Africa were closed, today Jeffrey Specialty Equipment is the
only segment of the original Jeffrey family operation still
operating under that name.
“Our
company today manufacturers, sells and services coal preparation
and materials handling and crushing equipment for mining and
non-mining applications,” Patterson said. “This includes small
and large vibrating feeders that range from the NF2405, 240 tph
feed rate designed for any type application, such as reclaim
tunnels or loadouts where the material flow is to be monitored,
to the 2000 tph NF8412 model used in coal and mineral
processing.”
Last
September, Jeffrey acquired Rader Companies of Atlanta, a
privately held company that engineers, manufactures and services
material handling systems for the pulp, paper and biomass
industries. This equipment includes screening equipment,
pneumatic conveying equipment and material reclaim systems, as
well as other products for the petrochemical industry.
“We are in
the process of relocating Rader to our facilities in Woodruff,”
Patterson said, adding that they already have begun
transitioning to in-house manufacturing. “That process should be
completed this year,” he said, “though it probably will take
several years before we are totally self-manufacturing.” The
company also has offices in Sweden, Canada (Vancouver and
Quebec), and agents in South America.
With that
acquisition, Jeffrey now has about 120 employees total. “The
coal industry remains an important part of our business,”
Patterson said, “at the company’s peak, Jeffrey probably
accounted for the majority of equipment sold to the underground
coal industry and, in particular segments, the company’s market
shares were even higher than that.
“For
example,” he said, “up into the 1980s Jeffrey had at least 95
percent of the diesel Ramcar market, the only competitor then
being Wagner Teletrams. And that was only because Kerr-McGee
management didn’t want to be ‘held hostage’ by one vendor and
ordered a Wagner unit to try it. Two or two-and-a-half years
down the line, we took that in trade when they bought three more
Jeffrey units, and there were many hours on that machine.
“Ramcars
had high—around 95 percent—on-shift availability,” Patterson
continued, “but then the diesel business changed in the 1990s
when there was a switch to dry scrubber systems. A lot of our
machines were converted over and I believe DBT still offers them
today, with some going to Australia and out West.
“I do
know,” he continued, “that in our time we did make an impact on
the JOY shuttle car, in 1984-85-86. In fact, I recall in one of
their annual reports to stockholders at the time a sentence that
specifically said there was a negative effect on sales of
shuttle cars due to inroads made by Ramcars.
“It was
around that time I visited China, 1986, where we also had some
success. Up through the early 2000s, 2002 maybe, we sold them
both continuous miners and continuous haulage systems. The
problem we had in China was that they would estimate what parts
they would need for an entire year and order them at the same
time they ordered the equipment. Which was fine except, if they
didn’t do a good job in their estimating and ran out of a part
after eight months, the equipment would sit idle for four months
until the next year’s ordering cycle”.
“After the
sale of Jeffrey’s mining equipment line to DBT,” Patterson
related, “they married the two continuous haulage
systems—Jeffrey’s and Long-Airdox’s—taking the best from both.
Long-Airdox probably had 75 percent of that market then,”
Patterson said, “and the adoption of the Jeffrey 32-inch system,
which was more heavily built, more reliable than theirs, can’t
have hurt.”
On the
processing side, Patterson said Jeffrey occasionally competes
with Gundlach and Pennsylvania Crusher, both sister companies
under K-Tron. “Their large crushers go up to 4,000 tph machines,
mainly for the Powder River Basin mines,” Patterson explained.
“Jeffrey coal crushers range up to 2,000 tph, mainly for the
bituminous coal applications.
“Between
the three sisters—us, Gundlach and PCC—I don’t know our
respective market shares but, combined, I’m sure we account for
more the lion’s share of the market for coal processing, both at
the mines and at the power plants. We also have a significant
share of the feeder market.
“Though the
coal industry continues to be important to Jeffrey, today we
have a much larger presence in the wood processing and paper
mill industries, where we provide chip sizers, hammers, screens
and other equipment,” Patterson offered.
“In wood
chip production, customers want oversize material in the 3-10
percent of product range and, in the acceptable range, 85 to
92-93 percent. Pines and fines, 4-5 percent of the desirable
distribution, dissolve in the process, but they consume liquor,
which costs the operator money. The remainder is oversize, which
won’t fully cook in the digester within acceptable times.
Wait. Just
how did a nearly three-decade coal man become such a wood expert
in a relatively short time? “Time,” Patterson offered, “time
spent with the experts, time spent with the customers. I’m still
in coal, it’s just that I’m into other industries as well: Wood
and paper, solid waste, rubber, fiberglass shredders, where
Jeffrey machines set the standard as the market leader. And
don’t forget, I’ve been in these markets since ’93 now.
“I came
from Washington, PA to Woodruff as manager of engineering with
responsibility for research and development, field services,
marketing activities and sales applications, that’s when an
inquiry comes into us deciding what machine, and what size
machine, best will accomplish the task for the customer and then
sending off sales to discuss all this with the customer. Manager
of applications, that’s sales application. It involves me with
all our sales people, all our service people and all our
customers.
“It’s fun,”
Patterson added. “It’s a job, and a man’s got to work. Do I miss
coal mining, the mining equipment? Though I’m still involved in
mining with crushers and feeders, that’s true, I’m no longer
involved in the design and manufacture of mining machinery. That
is something I came to love, that always will be there. I
continue to have great admiration for coal miners, what they do,
how they do it and how safely they do it in a hostile
environment.
“I still
have a lot of friends in mining and still see them, like when I
go to the MSHA Academy tomorrow for my mandatory retraining to
keep my card current. This pink slip has been in my wallet since
1973,” Patterson noted, adding: it will remain there for many
years to come.
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