Fire investigators still have not determined the cause of a fire at GreenMan Technologies Inc.'s Jackson facility that has idled the waste wire processing operations in the plant.
Originally, GreenMan officials expected the waste wire portion of the plant to be up and running again about a month after the March 31 blaze. Now, however, it looks like it will be at least July, and perhaps as long as September, before those operations are back on line, said GreenMan CFO Chuck Coppa.
The fire broke out in the waste wire processing section and quickly spread outside, Mr. Coppa said. No one was injured, and tire shredding operations at the plant resumed within 24 hours.
Both the fire marshal and GreenMan's insurance company still are investigating the cause, Mr. Coppa said May 30. An estimate of total damage costs will have to wait until the fire marshal sends his report to the insurance company, he added. But the company doesn't expect the cost to be high because the plant suffered no structural damage and no irreversible losses of equipment.
``We have several million dollars worth of insurance for property damage and business interruption, and we believe that will be more than adequate to cover our losses,'' he said.
Expansion-minded GreenMan now is concentrating on building up its existing operations in anticipation of business growth projected for the second half of this year, according to Mr. Coppa. Based in Lynnhaven, Mass., GreenMan this month begins operations in a tire grinding plant in LaVergne, Tenn., to supplement the existing operations of its whole tire plant in Parsons, Tenn.
In its second quarter ended March 31, GreenMan announced gross profit of $595,000 on sales of $6.1 million, compared with earnings of $1.3 million on sales of $5.6 million during the same period a year earlier. Higher insurance and raw materials costs contributed to the earnings drop.