FORD HEIGHTS, Ill. (June 15, 2000)—Waste Recovery Inc. has sold its two tire-derived-fuel processing facilities in Illinois to Ford Heights-based New Heights Recovery & Power LLC, a subsidiary of KTI Inc. in New Jersey.
Simultaneously with announcing the sale of the Illinois plants, WRI also reported the resignation of Thomas L. Earnshaw as president, CEO and a member of the board of directors, effective April 3.
"In view of the sale of the Illinois plants, the board of directors does not plan to name a successor to Mr. Earnshaw in the foreseeable future," the company said in a May 17 press release. Mr. Earnshaw, however, still maintains an office at WRI´s Dallas headquarters.
According to the release, New Heights will assume the $6,135,000 worth of industrial revenue bonds issued by the state of Illinois to finance construction of the facilities at Marseilles and Dupo, Ill. New Heights also will pay "certain other considerations of $1.3 million at closing," Waste Recovery said in its release, without further explanation.
New Heights´ purchase of the sites gives them an upgraded financial assurance which is extremely welcome to the State of Illinois, according to Todd Marvel, manager of the Used Tire Program within the Illinois Environmental Protection Agency.
"The amount of tire material on site at the Marseilles and Dupo facilities exceeded what the state considered safe," said Marvel, who noted that both plants had major fires in 1998 in which excess on-site tire material played a role.
Marvel described WRI as "a financially strapped company" unable to put up the financial assurances the state wanted to guarantee safety at Marseilles and Dupo. New Heights, he added, is already taking steps to reduce material inventory at the plants and alleviate the potential fire hazard.
Mr. Earnshaw could not be reached for comment on the sale or on his resignation. New Heights President John Knoke referred all questions about the purchase of the Illinois facilities to Marty Sergi, president of KTI, who also could not be reached.