NEWS - Manufacturing

By Ray Steele
SBJ Editor

May 24 - The head of Imperial Sugar says the world’s sugar makers should combine their resources in the name of safety. This while he simultaneously fights a federal fine for safety issues, some of which led to the deadly explosion at Imperial’s Port Wentworth plant.

A hearing on the federal Occupational Safety and Health Administration’s $8.8 million fine that was scheduled for last week in Savannah was delayed as negotiations continue with Imperial Sugar on a possible settlement and/or reduction of the fine. $5.1 million of the fine stemmed from 124 safety violations OSHA says it found at the Port Wentworth facility, where 14 employees died as a result of the Feb. 7, 2008 explosion. The rest of the penalty is tied to Imperial Sugar’s Gramercy plant in Texas.

Imperial Sugar President and CEO John Sheptor would not comment on the talks with OSHA, but during his keynote speech at last week’s Sugar Industries Technologies conference in Savannah, Sheptor asked all sugar companies within the group to create a permanent safety committee to oversee development of combustible dust standards that exceed those imposed by any government or regulatory agency. “We can’t let our regulators do that for us,” said Sheptor. “We as an industry need to stand up and collectively promote the way the risks of our industry should be managed.”

That would be a change from the last two years during which Sheptor has opposed a bill co-sponsored by 12th District Rep. John Barrow (D., Georgia) that would force OSHA to quickly create a combustible dust standard. Sugar dust is believed to have ignited, causing the Imperial Sugar blast.

"We've been told over and over that it's not a question of if this type of accident is going to happen again, but when,” says Barrow. “We know what needs to be done. We need to put regulations that work in the workplace. I don't care how long it will take, but I'm going to keep on pushing it until it gets done.” Barrow and Rep. George Martin (D. Cal.) reintroduced the bill last year after it passed the House, but died in the Senate in 2008.

Reduced performance at the Port Wentworth refinery helped contribute to Imperial Sugar’s $33.3 million loss during the first quarter. The company says the loss was compounded by problems with derivative investments, which are used to hedge against volatility in the price of raw sugar. The market price of sugar was down during the quarter.

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