| 18:07 UK, 24th September 2009, by Agrimoney.com |
| Blast blame sends Imperial stock tumbling |
|
Shares in Imperial Sugar slumped by more than one quarter after a 19-month official probe into a fatal factory explosion said failures by managers were behind the blast.
The group's "inadequate housekeeping practices" at its Port Wentworth plant allowed the build up of waste sugar - which workers said was knee deep in some places – and which provided the fuel for the accident, the US Chemical Safety Board said.
"Imperial's management as well as the managers at the Port Wentworth refinery did not take effective actions over many years to control dust explosion hazards," said John Vorderbrueggen, who led the board's investigation.
This failure had happened "even as smaller fires and explosions continued to occur at their plants and other sugar facilities around the country".
Lawsuits
The immediate market reaction was to send Imperial shares down 26% to $10.87, although they recovered some ground to stand down 19.4% at $11.79 in afternoon deals.
The company's accounts show it has yet to finish settling with insurers over the $210m-225m cost of ongoing repairs at Port Wentworth.
Furthermore, the group has received 43 lawsuits relating to the blast, in which 14 workers died and a further 36 were injured.
The board also called on Imperial's insurer, Zurich Services, to improve its screening for dust threats.
'Explosive concentration'
The report said that Port Wentworth managers had been "seriously concerned" over the potential of a sugar explosion as far back as 1967.
Last year's blast occurred after sugar dust collected in a confined space under conveyors "to an explosive concentration".
It was probably ignited by an overheated bearing, "causing an explosion that traveled into the adjacent packing buildings, dislodging sugar dust accumulations and spilled sugar.
"The result was a powerful cascade of secondary dust explosions. The refinery's packing buildings were largely destroyed by the blasts and ensuing fires."
Imperial, in reply, said it was "working diligently" to implement CSB recommendations for improving safety.
"We have worked very hard to make our facilities the safest possible, and will continue to share what we have learned and will learn with the CSB and industry," Imperial chief executive John Sheptor said.
Related Agrimoney articles
Blast battle swells Imperial Sugar's legal bill
Imperial in 'productive talks' over blast claim
|
|
|
|
PRINTABLE VERSION
EMAIL TO A FRIEND
RSS FEEDS
