The Urethane Blog

August 9, 2019

Wanhua Wrinkle


St. James Parish council sends chemical plant’s land use permit back to planning commission

5th August 2019   ·   0 Comments

By Meghan Holmes
Contributing Writer

On July 24, the St. James Parish council voted unanimously to return a previously approved land use permit for Wanhua Chemical’s new $1.25 billion plastic manufacturing facility back to the parish planning commission.

Initially approved in a 5-3 vote, local residents and advocacy groups, represented by the Tulane Environmental Law Clinic, filed an appeal in May to reverse the decision and stop the plant’s construction, arguing, among other things, that residents less than a mile away could be exposed to harmful phosgene emissions.

Subsequent public records requests on the part of the Tulane Environmental Law Clinic exposed unannounced meetings between parish officials and Wanhua executives in the days prior to the planning commission vote, leading residents to sue the parish for violation of Louisiana’s Open Meetings Law.

“There’s been a lot of communication between the company and the parish and state government,” said Anne Rolfes with the Louisiana Bucket Brigade. “They got this permit through the planning commission and now they want federal tariff exemptions in a foreign trade zone. This shouldn’t be happening after they’ve already received land use approval; everything should have been on the table.”

About a month ago, St. James Parish officials received notice from the Port of South Louisiana that Wanhua had applied to seek exemptions from federal trade tariffs. A proposed Foreign Trade Zone for the complex could also mean exemption from inventory taxes as well as sales tax, both of which parish officials considered part of their initial deal with the company. Parish council members sent Wanhua’s permit back to the planning commission at the appeal hearing while local officials and company executives work to resolve the tax dispute in the time before the permit’s next review.

Parish officials told The Advocate that the company has promised to waive any sovereign immunity and commit to pay sales and inventory taxes, and in a June 18 letter to the parish, Alex Liu, chief executive officer of Wanhua Chemical’s U.S. operations, said the company regretted any miscommunication with the parish about the trade zone.

Last November, Wanhua applied for at least 60 exemptions from federal trade tariffs, some of which have been denied, and some of which are still pending. “This request to the Port of South Louisiana for a foreign trade zone designation could be a way to still get around tariffs even though some of their exclusion requests have been denied,” said Kimberly Terrell, director of community outreach with the Tulane Environmental Law Clinic. “The exemption requests are for different chemicals and pieces of equipment.”

Some of the products Wanhua requested to be tariff-exempt are part of China’s “Made in China 2025” program, a strategic effort on the part of the country to strengthen and upgrade their manufacturing capabilities. “The tariff exemption of some chemicals was denied because they’re strategic to this program,” Terrell said. “This initiative supports Chinese-based industry and subsidizes certain products to help make them global leaders.”

Wanhua’s U.S. operations are overseen by Wanhua China, which is ultimately controlled by a municipality in eastern China. “Municipal governments in China have no real political power,” Terrell said. “The ultimate controlling party is the central government of China, and executives within the company serve on committees dedicated to developing and maintaining ties to the Communist party.”

Local residents opposed to the plant and advocacy groups argue that the Wanhua’s ties to mainland China “make accountability and enforceability an issue,” said Lisa Jordan, director and supervising attorney with the Tulane Environmental Law Clinic. “If this company violates a law, will they say, ‘Sorry, but we are a sovereign nation,’ when it comes time for enforcement? This is something that we know our clients and parish officials are concerned about.”

Residents have also expressed concern about the cumulative impact of another plant in the area, with Mosaic, Occidental Chemical, and Raven Energy all nearby. “We don’t want anymore chemical plants in this area,” said District Four resident Myrtle Felton. “The chemicals are already making people sick, and they want to keep building more plants.”

During the recent parish council meeting, several representatives from the chemical industry voiced support for the plant, touting the jobs and revenue it would bring to the parish. Opponents argue that jobs typically go to people outside the immediately impacted communities, comprised primarily of low-income people of color.

“For our clients, the concern is at several levels,” Jordan said. “At the base level, they’re already inundated with pollution and there has been an explosion of new facilities in the area. It’s one thing when they’re U.S. companies. Now, we have governments from other countries picking this low-income, minority community to come in and dump on, and enough is enough.”

The St. James Parish planning commission will review Wanhua’s land use permit again in late August. In the meantime, there will be a public hearing where local residents and advocates plan to speak. “We were not part of the process at all,” Felton said. “When we started trying to find things out, the parish said it was too late, but I don’t think it’s ever too late to stop something.”

This article originally published in the August 5, 2019 print edition of The Louisiana Weekly newspaper.

St. James Parish council sends chemical plant’s land use permit back to planning commission

August 9, 2019

Govil Named Covestro CCO

Covestro: Govil new Chief Commercial Officer

Effective from 1 August 2019, Sucheta Govil has been appointed as new Chief Commercial Officer (CCO) and member of the Management Board of Covestro. She succeeds Dr. Markus Steilemann, who has so far continued to work as CCO on top of his role as CEO. Govil will be responsible for the three business segments Polyurethanes, Polycarbonates as well as Coatings, Adhesives, Specialties.

Sucheta Govil (Source: Covestro)

Sucheta Govil (Source: Covestro)

Additionally, she will assume board responsibility for the new Central Marketing, the Innovation Management & Commercial Services and the Supply Chain Centers in the three major regions.

Dr. Richard Pott, Chairman of the Supervisory Board of Covestro said: “With Sucheta Govil we have been able to secure a successful and highly regarded sales and marketing executive for our company. With her certified experience she is an ideal addition to our management team and will thus shape the future of Covestro.”

“I am delighted to have the opportunity to further develop the business with fresh ideas and to move it forward globally, along with the whole Covestro team and my new colleagues on the Managing Board,” said Govil.

Sucheta Govil was born in September 1963 in India, and has been working as a non-executive Director at Eurocell plc in London, a supplier of building products, since 1 October 2018. Beforehand she held leading marketing roles at the life sciences and material sciences company DSM in the Netherlands, and at Akzo Nobel Decorative Paints in the UK. She has held other positions over the course of her career including Vice President for Innovation, Commercial & Marketing at PepsiCo in AMEA (Asia, Middle East, Africa) and General Manager for Global Nutritionals Category at GlaxoSmithKline in India and the UK. She holds a Post Graduate Diploma for Business Management from the Indian Institute of Management in Calcutta, as well as a Bachelor of Arts in Economics from the St. Stephen´s Institute of the University of Delhi.

https://www.gupta-verlag.com/news/personnel/23102/covestro-govil-new-chief-commercial-officer

August 9, 2019

Govil Named Covestro CCO

Covestro: Govil new Chief Commercial Officer

Effective from 1 August 2019, Sucheta Govil has been appointed as new Chief Commercial Officer (CCO) and member of the Management Board of Covestro. She succeeds Dr. Markus Steilemann, who has so far continued to work as CCO on top of his role as CEO. Govil will be responsible for the three business segments Polyurethanes, Polycarbonates as well as Coatings, Adhesives, Specialties.

Sucheta Govil (Source: Covestro)

Sucheta Govil (Source: Covestro)

Additionally, she will assume board responsibility for the new Central Marketing, the Innovation Management & Commercial Services and the Supply Chain Centers in the three major regions.

Dr. Richard Pott, Chairman of the Supervisory Board of Covestro said: “With Sucheta Govil we have been able to secure a successful and highly regarded sales and marketing executive for our company. With her certified experience she is an ideal addition to our management team and will thus shape the future of Covestro.”

“I am delighted to have the opportunity to further develop the business with fresh ideas and to move it forward globally, along with the whole Covestro team and my new colleagues on the Managing Board,” said Govil.

Sucheta Govil was born in September 1963 in India, and has been working as a non-executive Director at Eurocell plc in London, a supplier of building products, since 1 October 2018. Beforehand she held leading marketing roles at the life sciences and material sciences company DSM in the Netherlands, and at Akzo Nobel Decorative Paints in the UK. She has held other positions over the course of her career including Vice President for Innovation, Commercial & Marketing at PepsiCo in AMEA (Asia, Middle East, Africa) and General Manager for Global Nutritionals Category at GlaxoSmithKline in India and the UK. She holds a Post Graduate Diploma for Business Management from the Indian Institute of Management in Calcutta, as well as a Bachelor of Arts in Economics from the St. Stephen´s Institute of the University of Delhi.

https://www.gupta-verlag.com/news/personnel/23102/covestro-govil-new-chief-commercial-officer

Industry groups: Statewide ban on ethylene oxide a ‘sledgehammer,’ would hurt IL economy, health care

Hot Topics

By Jonathan Bilyk | Jul 31, 2019

With a DuPage County judge set to weigh in in about a month on the potential fate of Sterigenics’ shuttered Willowbrook medical device sterilization plant, a Republican Illinois state lawmaker is pushing a new proposed law he wants to use to target the plant and keep it closed for good.

However, the measure has already drawn pledges from industry associations to oppose the measure, saying it would take a “sledgehammer” to an issue that requires a scalpel, harming Illinois’ economy and America’s healthcare system in the process.

On July 30, Illinois State Sen. John Curran (R-Downers Grove) filed legislation in Springfield to effectively ban the use of the chemical compound known as ethylene oxide in the state by 2022.


Illinois Gov. JB Pritzker | Youtube screenshot

The chemical is widely used in a variety of industries for a variety of purposes.

Mark Biel, president of the Chemical Industry Council of Illinois, said ethylene oxide is a key industrial building block ingredient for the manufacture of a large number of products used by people and businesses every day. These include antifreeze used in cars and to deice aircraft wings; brake fluid; carpeting; upholstery; recyclable plastic packaging; and products made from fiberglass, including bathtubs and bowling balls, among other uses.

Derivatives of EO also are used to make shampoo, cosmetics, ointments and pharmaceuticals.

Biel said about 1% of EO is used to sterilize most of the medical devices and surgical tools employed in hospitals and health care facilities in the U.S.

But it is that use, particularly by Sterigenics, that has drawn the fire of politicians, including Curran.

Since February, the Sterigenics plant in west suburban Willowbrook has remained closed under a so-called seal order issued by the Illinois Environmental Protection Agency under Gov. JB Pritzker. The order prohibits the company from using any of its stores of EO gas, which the company says are essential to its operations. The company says it uses the EO to sterilize mass quantities of surgical kits and other essential medical devices.

That seal order came shortly after Pritzker took office, but months after former Illinois Attorney General Lisa Madigan filed suit against Sterigenics, along with DuPage County Robert Berlin, seeking a court order closing the plant for allegedly violating Illinois nuisance laws.

The state actions relied heavily on data and reports issued by the U.S. EPA and the federal Agency for Toxic Substances and Disease Registry, which claimed to show a sharply elevated cancer risk for people in and around Willowbook. An ATSDR report linked that elevated risk to EO emissions from the Sterigenics plant.

The report generated a large public outcry, which placed heavy political pressure on Pritzker and others in state government to act. Pritzker had also used the controversy over the Willowbrook plant to attack former Gov. Bruce Rauner during the 2018 gubernatorial campaign.

Sterigenics has contested the findings of the federal reports, and has opposed the state legal and regulatory actions in court. The company sued the IEPA over the seal order, calling it illegal, baseless and unconstitutional.

The company has consistently noted it never violated the terms of the operating permit issued to it by the state.

The state, however, has asserted the company still broke Illinois pollution laws by creating a “public nuisance” by emitting EO at all.

The state actions have drawn concern from industry groups who worry about the effects on the American health care system of state actions to curtail the use of EO, and the precedent set by the state actions targeting this one company.

As the court actions continued, the Illinois General Assembly enacted strict new EO emissions standards, believed to be the most stringent in the country.

After Pritzker signed that measure into law in June, Illinois Attorney General Kwame Raoul and DuPage County State’s Attorney Berlin announced they had reached an agreement with Sterigenics to end the court fights and create a path for Sterigenics to potentially reopen in compliance with the new state emissions rules.

Curran and two other state lawmakers have since filed a brief in court opposing that agreement, which is spelled out in a legal document known as a consent order. The lawmakers assert the new law doesn’t give the attorney general the authority to negotiate such a consent order, because the law was written intentionally to all but prevent any facility from reopening after it had been the subject of an EO-related seal order. In this case, they said, this means Sterigenics should never be allowed to reopen under the law.

The attorney general has disputed that interpretation.

DuPage County Circuit Court Judge Paul Fullerton has given the village of Willowbrook and some of its neighboring communities the chance to weigh in on the consent order. The judge is expected to consider the consent order near the end of August.

After the consent order was announced, Pritzker indicated a willingness to sign further legislation, potentially including an outright ban on the use of EO in Illinois. He further indicated a willingness to call the General Assembly into a special session to debate and vote on legislation banning EO.

In response, Curran filed his bill.

“I am grateful that Gov. Pritzker has offered to call a special session to deal with this issue and that he has clearly stated that he supports a ban on the use of ethylene oxide,” Curran said in a release announcing the legislation. “The governor has proven that he is able to use his position to push through major legislation and I look forward to working with him to advance this bill.”

Curran also reiterated his belief Sterigenics should never be allowed to reopen its Willowbrook facility.

The measure also drew the support of Berlin, who said: “The only way to guarantee the residents of Willowbrook and the surrounding communities clean air that is free of ethylene oxide today, tomorrow and for generations to come, is to completely eliminate the source of the contamination.”

Industry representatives, however, said such a ban would have large unintended consequences.

Biel said an outright ban on EO use represents “an overreach.”

“We’ve already got a law here that sets up the most stringent rules on ethylene oxide anywhere,” said Biel. “This is a sledgehammer approach.”

Biel said there are 1,500 jobs that would be directly eliminated by such a ban, and many others in “downstream industries” that would be affected.

“To ban the use of all ethylene oxide, just to shut down one facility, it flies in the face of common sense,” said Biel.

Greg Crist, a spokesman for AdvaMed, the Advanced Medical Technology Association, said his group would also oppose any bill to ban EO use outright.

“We’re talking about the safety of billions of medical devices at stake here,” Crist said.

Crist said Sterigenics is not a member of AdvaMed.

He said EO is not the “first choice” of sterilizers, and is not “a choice sterilizers have made out of ease or convenience.”

Rather, he said, EO is used to sterilize medical instruments “out of necessity,” as the only sterilizing agent that allow medical device makers to satisfy the infection-control requirements of the U.S. Food and Drug Administration for intricate devices like pacemakers or other medical implants.

He said AdvaMed members and others are working with EPA and other officials on improving emissions controls. He noted the U.S. EPA is also expected to soon roll out a new nationwide rule on EO emissions.

“We don’t want this to be lost in the linear question of ‘Should it stay or should it go?’” Crist said.

https://cookcountyrecord.com/stories/512815758-industry-groups-statewide-ban-on-ethylene-oxide-a-sledgehammer-would-hurt-il-economy-health-care

Industry groups: Statewide ban on ethylene oxide a ‘sledgehammer,’ would hurt IL economy, health care

Hot Topics

By Jonathan Bilyk | Jul 31, 2019

With a DuPage County judge set to weigh in in about a month on the potential fate of Sterigenics’ shuttered Willowbrook medical device sterilization plant, a Republican Illinois state lawmaker is pushing a new proposed law he wants to use to target the plant and keep it closed for good.

However, the measure has already drawn pledges from industry associations to oppose the measure, saying it would take a “sledgehammer” to an issue that requires a scalpel, harming Illinois’ economy and America’s healthcare system in the process.

On July 30, Illinois State Sen. John Curran (R-Downers Grove) filed legislation in Springfield to effectively ban the use of the chemical compound known as ethylene oxide in the state by 2022.


Illinois Gov. JB Pritzker | Youtube screenshot

The chemical is widely used in a variety of industries for a variety of purposes.

Mark Biel, president of the Chemical Industry Council of Illinois, said ethylene oxide is a key industrial building block ingredient for the manufacture of a large number of products used by people and businesses every day. These include antifreeze used in cars and to deice aircraft wings; brake fluid; carpeting; upholstery; recyclable plastic packaging; and products made from fiberglass, including bathtubs and bowling balls, among other uses.

Derivatives of EO also are used to make shampoo, cosmetics, ointments and pharmaceuticals.

Biel said about 1% of EO is used to sterilize most of the medical devices and surgical tools employed in hospitals and health care facilities in the U.S.

But it is that use, particularly by Sterigenics, that has drawn the fire of politicians, including Curran.

Since February, the Sterigenics plant in west suburban Willowbrook has remained closed under a so-called seal order issued by the Illinois Environmental Protection Agency under Gov. JB Pritzker. The order prohibits the company from using any of its stores of EO gas, which the company says are essential to its operations. The company says it uses the EO to sterilize mass quantities of surgical kits and other essential medical devices.

That seal order came shortly after Pritzker took office, but months after former Illinois Attorney General Lisa Madigan filed suit against Sterigenics, along with DuPage County Robert Berlin, seeking a court order closing the plant for allegedly violating Illinois nuisance laws.

The state actions relied heavily on data and reports issued by the U.S. EPA and the federal Agency for Toxic Substances and Disease Registry, which claimed to show a sharply elevated cancer risk for people in and around Willowbook. An ATSDR report linked that elevated risk to EO emissions from the Sterigenics plant.

The report generated a large public outcry, which placed heavy political pressure on Pritzker and others in state government to act. Pritzker had also used the controversy over the Willowbrook plant to attack former Gov. Bruce Rauner during the 2018 gubernatorial campaign.

Sterigenics has contested the findings of the federal reports, and has opposed the state legal and regulatory actions in court. The company sued the IEPA over the seal order, calling it illegal, baseless and unconstitutional.

The company has consistently noted it never violated the terms of the operating permit issued to it by the state.

The state, however, has asserted the company still broke Illinois pollution laws by creating a “public nuisance” by emitting EO at all.

The state actions have drawn concern from industry groups who worry about the effects on the American health care system of state actions to curtail the use of EO, and the precedent set by the state actions targeting this one company.

As the court actions continued, the Illinois General Assembly enacted strict new EO emissions standards, believed to be the most stringent in the country.

After Pritzker signed that measure into law in June, Illinois Attorney General Kwame Raoul and DuPage County State’s Attorney Berlin announced they had reached an agreement with Sterigenics to end the court fights and create a path for Sterigenics to potentially reopen in compliance with the new state emissions rules.

Curran and two other state lawmakers have since filed a brief in court opposing that agreement, which is spelled out in a legal document known as a consent order. The lawmakers assert the new law doesn’t give the attorney general the authority to negotiate such a consent order, because the law was written intentionally to all but prevent any facility from reopening after it had been the subject of an EO-related seal order. In this case, they said, this means Sterigenics should never be allowed to reopen under the law.

The attorney general has disputed that interpretation.

DuPage County Circuit Court Judge Paul Fullerton has given the village of Willowbrook and some of its neighboring communities the chance to weigh in on the consent order. The judge is expected to consider the consent order near the end of August.

After the consent order was announced, Pritzker indicated a willingness to sign further legislation, potentially including an outright ban on the use of EO in Illinois. He further indicated a willingness to call the General Assembly into a special session to debate and vote on legislation banning EO.

In response, Curran filed his bill.

“I am grateful that Gov. Pritzker has offered to call a special session to deal with this issue and that he has clearly stated that he supports a ban on the use of ethylene oxide,” Curran said in a release announcing the legislation. “The governor has proven that he is able to use his position to push through major legislation and I look forward to working with him to advance this bill.”

Curran also reiterated his belief Sterigenics should never be allowed to reopen its Willowbrook facility.

The measure also drew the support of Berlin, who said: “The only way to guarantee the residents of Willowbrook and the surrounding communities clean air that is free of ethylene oxide today, tomorrow and for generations to come, is to completely eliminate the source of the contamination.”

Industry representatives, however, said such a ban would have large unintended consequences.

Biel said an outright ban on EO use represents “an overreach.”

“We’ve already got a law here that sets up the most stringent rules on ethylene oxide anywhere,” said Biel. “This is a sledgehammer approach.”

Biel said there are 1,500 jobs that would be directly eliminated by such a ban, and many others in “downstream industries” that would be affected.

“To ban the use of all ethylene oxide, just to shut down one facility, it flies in the face of common sense,” said Biel.

Greg Crist, a spokesman for AdvaMed, the Advanced Medical Technology Association, said his group would also oppose any bill to ban EO use outright.

“We’re talking about the safety of billions of medical devices at stake here,” Crist said.

Crist said Sterigenics is not a member of AdvaMed.

He said EO is not the “first choice” of sterilizers, and is not “a choice sterilizers have made out of ease or convenience.”

Rather, he said, EO is used to sterilize medical instruments “out of necessity,” as the only sterilizing agent that allow medical device makers to satisfy the infection-control requirements of the U.S. Food and Drug Administration for intricate devices like pacemakers or other medical implants.

He said AdvaMed members and others are working with EPA and other officials on improving emissions controls. He noted the U.S. EPA is also expected to soon roll out a new nationwide rule on EO emissions.

“We don’t want this to be lost in the linear question of ‘Should it stay or should it go?’” Crist said.

https://cookcountyrecord.com/stories/512815758-industry-groups-statewide-ban-on-ethylene-oxide-a-sledgehammer-would-hurt-il-economy-health-care