Three Maryland execs honored for overseas success under duress

Daily Record, The (Baltimore), Feb 11, 2002 by Daily Record Staff Business Writer

The World Trade Center Institute has singled out three Maryland executives whose companies -- in electronics, seafood processing and shipping -- have achieved a high degree of success doing business overseas under often difficult conditions.

At its sixth annual program recognizing excellence in trade among Maryland companies, held Thursday, World Trade Center president Deborah Kielty handed out international business leadership awards to Patton Electronics Co., Phillips Foods Inc. and Mediterranean Shipping Co.

The companies were chosen from a field of 10 finalists, which also included Chindex International, a health care products distributor, and Sylvan Learning Systems, which provides educational services.

Patton, a Gaithersburg manufacturer of network access and connectivity devices for Internet service providers and others, was launched in 1984 by two brothers, with $5,000 in seed capital from their father.

In 2001, the family-run business generated $23 million in revenues. This year, the company expects to generate $30 million.

"Close to 60 percent of our business last year came from outside the U.S.," said executive vice president Burton Patton. "At a time when the U.S. market was going soft and the telecom sector was really hurting, we were poised to push our international business, which we did."

Patton developed overseas markets in Europe first, followed by Asia, Latin America, Central and Eastern Europe and ultimately the Middle East.

"Every country is completely different," said Patton. "A patent in China looks completely different from a patent in the U.K. One of our secrets to success is we're not trying to overlay a U.S. distribution model on foreign marketplaces." Instead, "we have some 200 distribution channels [and partners] we're managing."

Burton Patton "has touched the soil of over 30 different countries and believes in personal handshakes," said Kielty. His company has "over 1,5000 customers on the books in 100 countries."

Award recipient Phillips Foods Inc., which processes commercial seafood and owns and operates a chain of seafood restaurants in Maryland, was recognized for its prowess and ingenuity in expanding its crabmeat supply throughout Asia and Central America.

"We're absolutely the first company ever to pasteurize crabmeat in Asia," said Paul Opitz, vice president of production with Phillips. "To set up the process there -- which exceeds FDA regulations -- is in itself a challenge," he said.

Phillips began with one crabmeat processing plant in the Philippines in 1996 and now operates a total of 11 plants there and in Thailand, Indonesia, East Malaysia, India and Ecuador.

"To create the standards [in Asia] for the American palate was a challenge," said Opitz. But the company realized several years ago it would have to expand its crabmeat supply -- or limit growth.

"We put those facilities there because we couldn't expand the restaurants without a [steady] supply of crabmeat," Opitz said.

The third award winner, Mediterranean Shipping, was recognized for its contributions to the Port of Baltimore, where the company is major player in the container industry.

Mediterranean's "economic impact on the state is vast, including piloters, tugs, line handlers, longshoremen, truckers, clerks, container repair companies, warehouse operators et cetera," said Kielty.

"We started with a very small service in 1987 -- one ship every two weeks," said Capt. E. Lorenzo Di Casagrande, vice president for Mediterranean's Baltimore region. Today, "we have five ships a week coming to the port. The company renewed a 10-year contract with the port last April, promising a steady stream of container cargo.

Di Casagrande "has steadfastly led the company through thick and thin," said Kielty.