A North Carolina company whose business is comprised of 80% resurfacing and 20% new fabrication of metal cylinders used in printing did not qualify for the exemption granted to manufacturers. The Assistant Secretary concluded that the resurfacing service did not substantially change the materials used in the original production of the cylinders. This excludes the taxpayer from enjoying the preferential 1% tax rate with an $80.00 maximum tax allowed on the purchase of manufacturing equipment. (Decision No. 450, North Carolina Tax Review Board, July 7, 2004)