WAVERLY -- A fledgling business with roots in Pike County has received $1 million from the state to commercialize its new technology.

Third Millennium Metals is planning to use the money to help get to the stage of building a facility and creating up to 100 jobs in five years. The company, through investors and partners, will be matching the funds with $1.3 million to accomplish its goal, said Third Millennium's CEO Louis Luedtke.

"This grant helps get us to production. ... We were seeking funding in multiple states. The state of Ohio has come through with funding that will keep us in Ohio," Luedtke said. "When you are a startup company, you don't put all your eggs in one basket."

Fostering technology

Third Millennium is the only truly rural business to receive a portion of $30 million distributed by the Department of Development's Third Frontier Commission. Ohio Third Frontier was created in 2002 to focus on fostering new technology-based products, companies, industries and jobs. In May, the Ohio Third Frontier was extended through 2015.

The commission released details of its recommended awards early this past week, which included $14.8 million to the JobsOhio Network Program. Two state lawmakers, along with ProgressOhio.org, have refiled a constitutional challenge against the law that created JobsOhio arguing it violates the Ohio State Constitution. The suit argues JobsOhio cannot legally invest money in private companies. Both Third Frontier and JobsOhio are funded with taxpayer money.

Luedtke said the $1 million Third Millennium is expecting to receive will keep its new business and new technology in Ohio. He said the company also had been looking at Indiana, South Carolina and Maryland because of interest in the technology.

Without the support from Third Frontier, Luedtke said it would have taken three to five years to get where they now will be able to get in a year.

"This allows us to put a stake in the ground and make a commitment," he added.

Company history

Third Millennium began in Pike County when a partnership formed between Roger Scherer and Jason Shugart.

The two are co-inventors in covetics -- a process that bonds carbon to base elements such as sliver, copper, aluminum and tin to create a new class of materials. The current focus of Third Millennium is the copper covetic, which shows advanced corrosion and rust resistance as well as increased conductivity compared to pure copper.

Little has been said about covetics or Third Millennium Metals since, according to the businesses' website, covetic.info. All researchers were under a mandatory publication ban throughout 2010.

In addition to being an engineer, Shugart also is a lawyer. His law office serves as Third Millennium's headquarters. So far, Third Millennium has been focused on research and doing other necessary things for startup such as getting patents.

Finding a market

Luedtke said they still are determining different commercial applications, but among the possible markets are semiconductor, automotive, biomedical, electrical equipment, aerospace and alternative energy market verticals.

The proposal submitted to Third Frontier focuses on two commercial markets -- induction furnaces and high-performance electrical conductors. Luedtke said the Navy has expressed interest in the material and has requests for $35,000 in the material to be converted so they can test it for possible military applications.

Third Millennium's request for proposal to Third Frontier states, "This material has the potential to create thousands of manufacturing, research, engineering, and sales jobs besides revitalizing industries in Ohio.

"Conservatively, jobs created around just the first two target market opportunities will create over 100 well-paying engineering and manufacturing jobs within five years, with 250 or more additional follow-on opportunities as the technology matures and myriad other applications are developed."

The proposal outlines a salary range of $40,000 for technicians and administration up to $100,000 for managers and supervisors and $120,000 for scientists.

Getting support

So far, Third Millennium has been making advances largely with investments and partnerships, having worked with universities in Toledo, Youngstown and Dayton. It also has connected with Warren-based Ajax Tocco Magnethermic and the South Carolina division of IW High Performance Conductors Inc. for the current stage in setup.

Both businesses and Youngstown State University are helping to provide the match for the project with 51 percent in financial support and 49 percent as in-kind support, such as providing lab space.

In 2009, Third Millennium was the recipient of an Ignite! Grant from Rocket Ventures. Rocket Ventures is a nonprofit organization that was formed in 2007 by the Regional Growth Partnership. The Toledo-based group, which receives both state funding and private sector investments, is focused on helping create high-tech, high-wage jobs in northwest Ohio.

Luedtke said he and the company's other officials approached Rocket Ventures when it was rejected for assistance in the Athens area. He said the grant with Rocket Ventures did not tie them into locating there.

Picking a site

Just where in Ohio that site might be still is up in the air, but Luedtke mentioned Chillicothe, Jackson, Warren, Dayton and Toledo as possibilities. The company already is in the process of starting a pilot operation in the Dayton area with private funding, he added. Third Millennium likely will begin searching for a production site in a year once a commercialization plan is completed, Luedtke said.

Waverly and Pike County also has potential with the presence of the Department of Energy site in Piketon, but Luedtke said there has been concern about the delays in the projects there because of funding holdups.

Customer location also is a key part of site selection. Determining a customer base will be integral in securing the needed investor support for the estimated $5 million cost of a manufacturing site, Luedtke said.

"(Location) takes equity, support and real economic development support. With a little support, we could be in a lot of locations," Luedtke said.