Ill Advised Combustible Dust Bill

The current combustible dust bill waiting for a vote in the Senate and passed earlier in the House is a faulty draft of proposed OSHA health and safety legislation. Posing as a quick fix with no bite, due to the lack of OSHA resources. Policy- makers failed to take in account the magnitude of the problem with the prevalence of combustible dust fires and explosions occurring across a wide swath of the manufacturing sector.

Furthermore, utilizing OSHA’s Combustible Dust National Emphasis Program (NEP), as recommended by the Chemical Safety Board does not fully address many manufacturing sectors that are experiencing combustible dust explosions and fires that were not included in the NEP.

North America Industrial Classification System (NAICS)
Of particular importance when assessing industries that have a frequent and/or high consequence of combustible dust explosions and fires is an understanding of the North America Industrial Classification System (NAICS), that OSHA utilizes in Appendix D-1 of the Combustible Dust NEP.

NAICS is a six digit hierarchical industry coding and classification system that the Bureau of Labor and the U.S Census Bureau also utilizes to measure economic activity in the United States. It enables policy-makers across a wide spectrum of government to understand the business cycle and how it relates to the flow of trade.

U.S. NAICS example

• Sector 33 Manufacturing
  • Subsector 339 Miscellaneous Manufacturing
    • Industry Group 3399 Other Miscellaneous Manufacturing
      • Industry 33994 Office Supplies (except Paper) Manufacturing
        • U. S. Industry 339941 Pen and Mechanical Pencil Manufacturing

Older Standard Industrial Classification (SIC) system
NAICS groups are divided into 20 sectors, with five sectors goods-producing and fifteen services-producing sectors. The NAICS system replaced the older Standard Industrial Classification (SIC) system beginning in 1997. Additionally, there are 474 NAICS industries in the manufacturing sector from a total of 1,170 NAICS industries in contrast to the 1,004 found in the previous SIC.

A confusing aspect of the 2006 Chemical Safety Board, Combustible Dust Hazard Study is that the data spreadsheet referenced combustible dust incidents from 1980-2005 with the old SIC system. For the user of the data, it very difficult to ascertain the specific national industry that experienced combustible dust accidents. In contrast, OSHA began using the North American Industry Classification System (NAICS) for industry identification back in January 2003.

In addition to Appendix D-1, with the listing of 17 manufacturing NAICS in the OSHA NEP, there is Appendix D-2, listing another 50 manufacturing NAICS. OSHA believes these industries may have potential for combustible dust explosions/fires instead of a high frequency rate like in D-1.

Invisible Industries
This is where the problem arises, in solely relying on the OSHA Combustible Dust NEP as a yardstick for whether or not a manufacturing facility has a dust problem or not. The Combustible Dust Policy Institute has discovered through intensive research utilizing media reports and interviews over the past six months that 64% of the 70 combustible dust related explosions and fires since the Imperial Sugar Refinery explosion are not listed in Appendix D-1/D-2 NAICS list of the OSHA Combustible Dust National Emphasis Program (NEP).

Furthermore, of the 16 combustible dust explosions that have occurred, only 50% of the NAICS are listed in the NEP. How can a sound preventative safety policy be instituted if over 50% of the nation’s manufacturing sectors are ignored?

Photo Credit: by exfordy on Flickr "Creative Commons"

Dust Explosions Prior to Senate Hearing

Three days prior to the July 29, 2008 Senate Hearing on workplace Safety, “ Dangerous Dust: Is OSHA Doing Enough to Protect Workers,” ICO Polymers in Asbury, New Jersey witnessed an early morning explosion that severely burned one worker who is in critical condition with burns to his face and arms from the explosion in the plastic pulverizing unit. In the same week four other combustible dust incidents occurred throughout the nation. The cause at ICO Polymers is yet to be determined but all the ingredients are there again for another combustible dust explosion.

Prior Explosions
For instance, one year ago, last July, the same facility experienced a similar event that after an OSHA accident investigation, was deemed a combustible plastic dust explosion in Building One’s Ambient Mill. Where micronized powders of polypropylene, polystyrene, and ethylene were allowed to accumulate, which ignited and exploded, injuring a worker who suffered burns to his hands and back of his head. In this recent incident, New Jersey Fire Officials closed the facility due to the extensive structural damages to the building, which posed an imminent threat.

Recent news reports in the Hunterdon County Democrat, uncovered additional fires at the ICO Polymers facility in 1999 and several explosions in 1997, 1990, and 1989, which also injured workers. In earlier years the plant was owned by Wedco. Change of ownership has not reduced the severity or magnitude of injuries with the events reoccurring in an alarming manner.

Combustible Dust Legislation
A troubling aspect of the recent Senate hearing on combustible dust in conjunction with the recent explosion in New Jersey is that our nation’s legislators and policy makers don’t seem to understand the magnitude of the complex issue concerning combustible dust.

Since the “Worker Protection Against Combustible Dust Explosions and Fires Act of 2008,” was introduced by Congressman George Miller (D-CA) on March 4, 2008 as a result of the February 7, 2008 catastrophic Imperial Sugar Refinery dust explosion in Port Wentworth, Georgia there have been prior hearings held in Congress. Basically, the message has been the same at all the congressional hearings, that there is a problem with the hazards of combustible dust in the nation’s manufacturing sector workplace.

NFPA Combustible Dust Standards
Yet no consensus solutions have been proposed. Instead sole blame has been placed on OSHA which doesn’t have a general industry comprehensive combustible dust standard like the grain facility standard that is already part of OSHA work-place health and safety standards since 1989.

The central aspect of the proposed legislation is incorporating National Fire Protection Association (NFPA) combustible dust standards. This is would be great if OSHA had enough resources to inspect the thousands of manufacturing plants in the nation but it doesn’t. So how will such regulations be enforced unless Congress appropriates additional funding to OSHA? It’s like declaring war yet not sending the troops for lack of funding.

Manufacturing facilities are already required to follow NFPA combustible dust standards through general consensus and nationally recognized standards of care which is recognized by the American National Standards Institute (ANSI). When a violation of combustible dust is found, OSHA inspectors can cite the facility under the General Duty Clause (GDC), Section 5(a)(1) of the Occupational Safety and Health Act.

Local Jurisdiction Enforcement
Local fire and building inspectors that already conduct local inspections need to be utilized more thoroughly in the prevention and mitigation of future combustible dust fires and explosions. These are the professionals that are on the front lines daily and interact daily with local fire departments concerning specific issues that need to be addressed concerning the life safety and structural integrity of commercial buildings.

Fire codes such as the ICC International Fire Code and NFPA Uniform Fire Code already address combustible dust with references to the numerous NFPA combustible dust standards. Following the 2006 Combustible Dust Hazard Investigation, the Chemical Safety Board in addition to recommending an OSHA comprehensive combustible dust standard also outlined that many fire and building inspectors are not knowledgeable concerning combustible dust hazards.

Why hasn’t this aspect of preventing and mitigating future combustible dust incidents been included in congressional testimony? Instead attention has solely been directed at the recent Imperial Sugar incident and placing blame on OSHA as a solution in the policymaking process.

Conclusion
While all the political spin and maneuvering between both political parties concerning labor and business has been taking place over the past five months in regards to pending combustible dust legislation, over 70 combustible dust related fires and explosions have occurred in the nation’s manufacturing sector. The Combustible Dust Policy Institute has discovered through research that approximately 20% of these events are combustible dust explosions and an alarming number are reoccurring like the ICO Polymers accident last week.

A comprehensive combustible dust bill will not solve the problem of combustible dust fires and explosions. It’s only through the cooperation between all stakeholders throughout the national, regional, and local levels that the complex issue of combustible dust can be properly addressed in lessening the severity of future incidents.

Fire & Explosion Protection, ATEX Forum

Plant managers including health and safety personnel that are seeking additional information concerning explosion and fire protection at their facility that generates combustible dust will find the Bulk-Online Powder/Bulk Portal Forum on Fire & Explosion Protection, ATEX, very helpful.

Numerous topics in the ATEX forum have been posted concerning the prevention and mitigation of combustible dust fires and explosions from professionals around the world. ATEX, or ATmosphères EXplosibles(French) is the European Union directive concerning combustible dust, which applies to best engineering practices (ATEX 95) and workerplace health and safety standards (ATEX 137) in potentially explosive atmospheres such as flammable liquids, gases, and vapors.

This is where the disconnect currently is, at manufacturing facilities in the United States that handle combustible particulates solids which generate combustible dust. Not realizing and acknowledging that combustible dust is under the same umbrella as flammable liquids, gases, and vapors that create explosive atmospheres is a recipe for disaster. Such as was experienced February 7, 2008 at the catastrophic Imperial Sugar Refinery explosion and over 60 combustible dust fires and explosions that have occurred since then.

The Industrial Fire, Safety and Security Conference held at the Reliant Center in Houston, Texas on February 4-6 2009 will bring together a diverse spectrum of EH&S, HazMat, security, rescue, medical, and other emergency management stakeholders to a premier event in conjunction with providing the knowledge and information that combustible dust is synonymous with potentially explosive atmospheres. Lets break the disconnect in the prevention of future preventable and predictable combustible dust related fires and explosions occurring in manufacturing facilities throughout the United States.

Private Equity Manufacturing Sector Meltdown

With all the plant shutdowns in the manufacturing sector one begins to wonder when the economy will hit bottom especially without a reserve chute to arrest the devastating free fall and adverse economic damage to local communities.

Big Picture Emerges
Recently, while tracking combustible dust fires and explosions at manufacturing facilities, the Combustible Dust Policy Institute noticed plant shutdowns and the enormity of the situation is on scale more damaging than any combustible dust fire or explosion. A plant shutdown is a total loss. At least in the majority of combustible dust incidents, the workforce survives.

Most Americans have never heard of the towns such as Fairfax or Stevenson, Alabama. There's dozens of other towns like these throughout the America's heartland experiencing plant shutdowns and leaving a void less visible than a lunar landscape. At least with the moon there is talk of maybe going back.

Manufacturing Sector Gamble
Private equity leveraged buyouts of the manufacturing sector reaps phenomenal financial returns for institutional and private investors. Any financial investment is a gamble with it's highs and lows in the financial market. Like getting dealt a couple bad hands at the poker table it's only sensible to gather one's chips and cash out.

Now with the economy in the doldrums, a similar situation is taking place with private equity cashing out or reorganizing their manufacturing sector portfolios. Investors can move on to a more suitable investments yet the nation's workforce in the manufacturing sector has no such option with a plant shutdown.

Disturbing Metaphor
Instead our manufacturing sector's destiny is literally going down the drain. Metaphorically, a prime example would be Eljer toilet manufacturing plant in Ford City, Pennsylvania (population 3,451) where it was reported last Thursday that the plant, which is in the portfolio of Sun Capital Partners a leading private equity firm, may shutdown after nearly a century of operations, resulting in nearly 150 employees without a job.

Plant shutdowns such as these don't reach the major news networks and besides who has ever heard or cares about what is going on the east bank of the Allegheny River, in Ford City, PA? Yet when these small towns with plant shutdown appear on the map a trend begins to emerge like connecting the dots, which is a big picture affecting all Americans and not just the local economy of Ford City.

Private Equity Portfolio
Private equity interest in Eljer began in 2005 after Jacuzzi Inc reported an operating loss of $30.7 million on sales of $150.5 million for the fiscal year ended Oct. 2, 2004. Shortly thereafter, Jacuzzi sold it's Eljer operations to an affiliate of Sun Capital Partners, a private investment firm. For the last three years Sun Capital have maintained Eljer in it's financial portfolio.



Three months ago American Standard, Crane Plumbing Holding Corp. ("Crane") and Eljer Holding Corp. ("Eljer") merged as affiliated portfolio companies of Sun Capital Partners, Inc. ("Sun Capital"), with Bain Capital Partners, Inc. ("Bain Capital") as a minority partner in the consolidation.

Bright Future
The future for the merger was looking bright especially with the annual market research report related to the home improvement industry provided by ReportLink.com highlighted that American demand for plumbing fixtures and was expected to increase nearly 3 percent annually for the next five years to $11.4 billion . On the downside, imports gained a higher share than local production with imports disturbingly increasing 17 percent annually between 1996-2006. Where are the import tariffs in protecting America's manufacturing sector?

Eljer's workforce surely must of felt their jobs were secure following the merged affiliation. Especially in the press release when the CEO of American Standard Brands stated, "that the merger would offer a stronger , more compelling value proposition to it's customers." If many customers no longer have a job then what sort of value proposition will exist in the future?

Americans need to take a hard look of whats occurring in the nation with the meltdown of the manufacturing sector and ensuing loss of jobs to foreign countries. Alternative solutions in lieu of plant shutdowns must enter into a dialogue amongst our leaders on Capital Hill. With the current presidential race at the top of the agenda it may be another year before any damage control occurs. Can we afford to wait that long?

Photo Credit: Dominic's Pics

Plant Shutdowns Google Map
Private Equity Council

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

Expoquimia-Combustible Dust ATEX Seminars

Expoquimia, one of the largest Chemical Trade Fairs in the European Union will be held October 20-24 2008 in Barcelona, Spain. Professionals across a wide spectrum of the chemical industry will host technical seminars and lectures for attendees and participants.

Activities at Expoquimia include instrumental analysis, biomaterials, sensory chemistry, biotechnology, new solvents, purchase management, and combustible dust explosion protection/prevention educational tracks..

Stakeholders and professionals who are responsible for plant safety in regards to the hazards of combustible dust generated from combustible particulate solids will have an opportunity to attend the 4th International Industrial Safety Conference (Jornada de Seguridad Industrial Atex) part of the combustible dust educational track.

Xavier de Gea, Director of LPG Prevención y Protección de Explosiones and coordinator of the combustible dust track has organized two daily of sessions with the support of the European Safety Management Group. Utilization of coal for power generation is becoming an important and vital feedstock with the issue of tight oil supplies in the global market. Potential hazards of combustible dust coal explosions exist with the increase utilization of coal.

The first day of the 4th International Industrial Safety Conference will cover diverse topics that include engineering standards that are necessary while handling solid materials such as coal as outlined in the European Union ATEX directive. Area of interest will include:

• Risk analysis of Solid combustible


• Self combustion parameters on coal and biomass


• Coal grinding in the light of the new ATEX directive


• Explosion protection reclosing devices


• CO2 / N2 inerting as Preventive Explosion Protection at coal grinding

ATEX, or ATmosphères EXplosibles, originates from ATEX 94/95 is the regulatory technical requirements in the European Union that require manufacturing facilities to have specific equipment and protective systems that are located in explosive atmospheres such as combustible dust, flammable vapors, gases, and liquids.

Another aspect of the regulatory framework concerning combustible dust in the European Union is ATEX 137, which protect workers from the hazards of potential combustible dust explosions and fires in explosive environments. This would be analogous to OSHA protective standards that are currently being debated in Congress following the Imperial Sugar Refinery explosion.


Policymakers, regulators, legislators, trade associations, and safety professionals in the United States can learn from the EU ATEX in a manner that would assist in developing a comprehensive combustible dust program throughout the nation in preventing and mitigating future combustible dust incidents plaguing the nation's manufacturing sector.

Attending the 4th International Industrial Safety Conference at the Barcelona Expoquimia would be an ideal opportunity for all stakeholders in gaining an understanding of the complex issue of combustible dust, which is a problem afflicting all of our global trading partners. Book your flight and listen to some solutions before the combustible dust monster arrives for Halloween.

4th INTERNATIONAL INDUSTRIAL SAFETY CONFERENCES .pdf