Atofina faces suits in Michigan mishap, has paid $140 000

08 January 2002 21:35  [Source: ICIS news]

HOUSTON (CNI)--Atofina has paid more than $140 000 (Euro155 556) to residents in Riverview, Michigan and continues to process what it calls "good faith" claims stemming from an explosion there last summer but now faces a pair of lawsuits from the incident that killed three of its employees, Atofina told CNI Tuesday.

Among the funds dispensed on its own so far, the Philadelphia, Pennsylvania-based specialty chemicals producer said it reimbursed the community $100 000 for costs of fighting the fire and issued an additional $40 000 to residents who filed medical claims in the days after the 14 July incident.

In addition, Atofina noted it will have substantial costs of its own for damages to its property, continues to process claims of residents filed in the wake of the explosion and does not yet have an estimate on its total costs from the mishap.

An Atofina spokeswoman said the company is disappointed to learn about the most recent suit involving 27 residents who charge the company was negligent in its storage operations. Besides that case, the company also faces a suit seeking class action status.

The plant has almost returned to full production following the explosion and fire that began with the separation of a valve on a railcar and prompted the explosion of nearly 74 tonne of methyl mercaptan plus the release of chlorine into the air.

By: Gary Taylor
+1 713 525 2653

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