The company's problems came to a head the week following the layoff, when their tire shredder was repossessed by the manufacturer because of delinquent loan payments.
Journal Star (Peoria, IL) October 19, 1993 1993 STATE 4 STAR A1 DREW WILLIAMS CIC ISSUES A PUBLIC APOLOGY<PRESIDENT SAYS HE DISAGREES WITH OFFICIAL'S CRITICISM OF CANTON CANTON -- The president of Canton Industrial Corp. issued a public apology Monday for negative comments about the city and Mayor Don Edwards by another official at CIC, which plans to move its tire-shredding business elsewhere.
In a written statement, CIC President Alan Hanson restated that Canton Tire Recycling soon will shut down operations in the former Interational Harvester plowshare plant, but said a new, unnamed organization is negotiating a lease with CIC and might take over the business soon.
Last Friday, CIC Secretary Richard Surber cited a lack of cooperation from the city as a reason for CIC's pullout and said Edwards "shoots his mouth off and doesn't have a clue."
Hanson said he disagreed with Surber's characterization of the city and mayor.
"The City Council, the mayor, the fire department, and other government agencies have all been supportive, especially when we needed some leeway. I personally appreciate this cooperation," said Hanson.
He said CTR's operation, which shredded tires for use as fuel to generate electricity and for other applications, could not be supplied with adequate capital by CIC to operate at a profit. However, Hanson said, a new "operating entity," which may lease the plant, intends to properly capitalize the tire- shredding operation.
"Assuming no major problems in the next few days, I anticipate that the leases will be signed to bring the new entity into the complex, to begin operating in early November," Hanson said.
Meanwhile, CIC is planning to possibly locate a tire-recycling operation in New Jersey, the headquarters of recent CIC aquisition Metalurgical Industries Inc., Hanson said in the statement. He was unavailable for spoken comment.
CTR had been plagued by difficulties since the shredding operation began March 3. The company was paid by firms to take in tires, which are packed into the million-square-foot plant by the thousands, but had not sold the shredded rubber, which piled up on the property.
Employees were laid off last August and CIC issued them late paychecks. The company's problems came to a head the week following the layoff, when their tire shredder was repossessed by the manufacturer because of delinquent loan payments. The city, which loaned CIC money while it was under previous ownership, is owed some property lots, once taxes are paid on them, in exchange for freeing CIC of the payment obligations. Hanson said CIC intends to deliver on the promised parcels by the end of the year.
Mayor Edwards said he hopes the transition of the property goes smoothly, but said he has been left somewhat in the dark about the future of Canton Tire Recycling.
"I'd just like to see a game plan or a business plan, so we know what we're dealing with," Edwards said. |
