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Showing posts with label North Carolina. Show all posts
Showing posts with label North Carolina. Show all posts

Monday, November 26, 2012

OSHA NEP Conflicting with Fire Service Combustible Dust Fire Response

Wheel Alignment or New Tire?
Earlier this year a combustible dust fire and explosion at a North Carolina fiber recovery facility resulting in four injuries has safety professionals scratching their heads and wondering why OSHA continues to ignore the multitude of manufacturing sub-sectors (NAICS) in the OSHA Combustible Dust National Emphasis  Program ((NEP). For instance, the fiber recovery  facility is classified as NAICS: 322299, All Other Converted Paper Product Mfg. (515 establishments in 2007) which is not recognized in Appendix D-1 nor D-2 of the OSHA NEP as an industry that may have potential for combustible dust explosions or fires.

There are many more NAICS not recognized in Appendix D-1 or D-2 where combustible dust fires and explosions have occurred since the NEP was reissued in 2008. Continuing on the misguided approach of targeted inspections for a select few of NAICS while not recognizing a multitude of others is a path wrought with undesirable consequences. There is a commonality of process equipment, effective ignition sources, and potentially explosive atmospheres amongst all global manufacturing sub-sectors processing and handling combustible dust. Its not a matter of if, but when a combustible dust related incident will occur. Solely relying on a NAICS conflicts with reality in conjunction with fire service response to the multitude of repeatable combustible dust fires and explosions regardless of whether a NAICS is listed in the NEP or not.

Deputy Chief Greg Blackburn of the Ronda Fire Department put it more succinctly following the March 2012 fiber recovery facility incident, "It's happened before. It's not uncommon, this kind of situation," he said. On a larger scale the same can be said as we observe continually from nationwide news accounts  similar views following fire service response to combustible dust related fires and explosions of NAICS not recognized in the OSHA ComDust NEP.

For how much longer will the ComDust NEP continue to be a static document? Its already been over a half a decade since initially issued October 17, 2007. Will stakeholders have to wait for another tragic combustible dust catastrophe where the U.S. Chemical Safety Board will investigate providing key recommendations for root and contributing cause that we already know about? Continuing to ignore the fire service as a welcome partner in the combustible dust rule-making process fails to acknowledge the root of all catastrophic events.  This would be in the form of all the prior non-consequential combustible dust events the fire service is responding to repeatedly. 

We have it all backwards right now with all the focus on catastrophic dust explosions while ignoring the multitude of non-consequential combustible dust related fires. For instance, say your car is traveling down the freeway and you get a tire blowout due to a worn out tire treads. So you go to the tire shop for a new tire and the repair person notices your wheel alignment is off. Not having correct wheel alignment will cause your tires to wear improperly resulting in tires rapidly wearing down at the treads. 

New Tire or Wheel Alignment?
So what you going to do purchase a new tire and continue your highway travel or get a wheel alignment before purchasing a new tire? Having a tire blowout on the highway at high speed is analogous to a potential catastrophic event. A wheel alignment is just like addressing the fires in  minimizing the probability of a tire blowout while traveling on the highway. So is it time for a realignment? What do you think?  


Saturday, July 12, 2008

Tax Incentives Causing Plant Shutdowns


Hundreds of job seekers at the Liberty Center in Lancaster, Ohio (population 35,353) lined up to apply for several dozen jobs that will be opening when U.S. Corrugated opens it new cardboard manufacturing plant in November.

Ironically on the same day U.S. Corrugated with 20 full service manufacturing facilities in 14 states and 1,000 employees gave notice to its 75 employees at it’s Greensboro, North Carolina corrugated sheet plant that it will be closing down six days later with no reason according to the Greensboro News Record. Like pawns on a chessboard assets are moved around yet in this game the local economy suffers.

The Greensboro plant was established in 1981 and was one of three sheet feeder plants that were owned by the LINPAC Group a U.K-based company. In 2003 the LINPAC Group became a portfolio company of Montagu Private Equity through a debt and mezzanine package from Deutsche Bank.

Private equity transactions through their leveraged buyouts of manufacturing plants has it’s advantages and disadvantages. Lately over the past year many plants owned by private equity have been closing due to sour economic conditions with reasons given such as, “ realignment of capacity in order to streamline processes and be competitive in a global marketplace.”

Six months earlier, in January 2008, prior to the recent Greensboro plant shutdown, LINPAC Inc. a business unit of UK-based LINPAC Group Limited was acquired by Four M Holdings LLC (Four M), an investment vehicle controlled by Dennis Mehiel, also a super delegate in the 2008 Democratic presidential nomination Additionally, in 2004, Mr. Mehiel was New York State Chairman for the Democratic Presidential ticket of Massachusetts Sen. John Kerry and North Carolina Sen. John Edwards.

After the acquisition LINPAC INC. changed its name to U.S. Corrugated, the same private company that acquired Box USA, Solo Cup and The Sweetheart Cup Company. Four M Holdings LLC (Four M ) has completed more than 25 North American transactions in the past two decades.

The economy is very favorable in Lancaster, Ohio, especially when the city is providing U.S Corrugated with a 15 year 100 percent tax abatement, which includes $1 million in incentives. At the state level, are over $500,000 of grants and job-creation tax credits according to news report from the Columbus News Dispatch.

Greensboro, North Carolina is not so lucky as the workers become casualties mired in the investment vehicles sold, traded and acquired as in the recent acquisition that U.S Corrugated completed in March 2008 with the purchase of Anderson Packaging Inc. (API), a Kentucky-based corrugated packaging manufacturer.

2008 Plant Shutdowns Google Map

Photo Credit: Draco2008 @ Flickr









 

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