GARDEN CITY, N.Y. - Dennis Gormley, former chairman of Federal-Mogul Corp., has been named chairman of Environmental Processing Systems Inc., the scrap tire recycling company.
The contrasts between Federal-Mogul and Environmental Processing Systems could scarcely be greater. Federal-Mogul, of Southfield, Mich., is a giant in the auto parts industry, with 41,000 employees and $7 billion in annual sales.
Environmental Processing Systems, founded in 1995, is privately held and has a total of 100 employees at its Garden City headquarters and its Santee River Rubber Co. subsidiary near Charleston, S.C.
Environmental Processing Systems has the capacity to make 150 million pounds of PolyDyne fine rubber powders annually at its 90,000-square-foot Santee River plant. The powders, made cryogenically from scrap tires and other elastomers, are environmentally sound substitutes for virgin and synthetic polymers and resins, according to the company.
In an interview Monday, March 6, Gormley said he was in discussions with Environmental Processing Systems management for more than a year before he accepted the chairmanship. He had joined the company's board last July.
His role at Environmental Processing Systems will be advisory; Environmental Processing Systems founder and President Anthony Cialone and CEO James Randall will retain authority over day-to-day operations.
'When I retired as chairman of Federal-Mogul (in 1996), I wanted a new challenge, an opportunity where I could create value for others,' Gormley said. 'I believe I found that opportunity in EPS.'
PolyDyne powders, he said, can save tire manufacturers up to $1 per tire.
In the interview, Gormley said Environmental Processing Systems will soon break ground on another plant in Tennessee. Randall said the plant will be built outside Nashville and will have the same capacity as the Santee River plant near Charleston. The date to begin construction hasn't been determined.
In a press release, Randall said Gormley 'brings strategic, management and operational expertise to the board while demonstrating our intent to participate successfully in the global marketplace.'
Gormley also serves on the board of directors of Cooper Tire & Rubber Co.