Plant handling of chemical leaks studied A new study has been released that details the precautions taken at chemical plants to avoid releases of dangerous chemicals. Prepared by the Chemical Manufacturers Asso­ciation, the report examines three diverse areas with chemical facili­ties and the methods used to warn of and prevent chemical leaks. The study was done in response to a request by Rep. John D. Dingell (D.-Mich.), chairman of the House Committee on Energy & Commerce.

Dingell asked 14 specific ques­tions about monitoring and detec­tion systems used in plants, and eight additional questions about emergency response programs. He asked for names of plants and the chemicals in use, and general mete­orology of the area. Much of the information relates to consideration of the air toxic control bill (H.R. 2576) introduced earlier this year by Rep. Henry A. Waxman (D.­Calif.).

The areas chosen by CMA are Bat­on Rouge/New Orleans, Philadel­phia/Wilmington/South New Jer­sey, and Niagara Falls/Buffalo. The trade association sent a long ques­tionnaire based on questions asked by Dingell and received responses

Allied-Signal plans to spin off businesses that no longer fit its stra­tegic plan and with them form a new company. In addition, it plans to reorganize its remaining busi­nesses and reduce its workforce by about 3000 employees.

The businesses to be spun off in­clude health and scientific products, technical and energy products, and engineering services.

At a press conference in New York City last week, Allied-Signal chair­man Edward L. Hennessy Jr. said the company will spin off assets worth about $3.2 billion into an as-yet-unnamed new company, with Michael D. Dingman as chairman and chief executive officer. Ding-man has been president of Allied-Signal since the merger of Allied

representing about 500 chemical process units. Summarizing the re­port, CMA found that all facilities have emergency response plans, of­ten coordinated with local fire and police officials. Process control sen­sors are used extensively in chemi­cal plants, and they provide suffi­cient time for remedial action in case of a release. In addition, the human element remains the most essential factor in detecting and evaluating releases, even though fa­cilities are becoming increasingly automated.

The report, as well as appendixes and separate letters detailing safety precautions taken by Dow Chemi­cal and by Monsanto, has been sent to the Environmental Protection Agency for evaluation. Dingell has asked EPA to determine if the com­panies are doing enough to protect workers and the public from haz­ardous chemicals. CMA has a list of the chemical feedstocks and prod­ucts from the plants it surveyed (al­though it was not included in the report) and the association is work­ing closely with EPA to compare these to the chemicals EPA consid­ers hazardous. Dingell also wants some analysis of the plant data cor­related with reports of chemical ac­cidents and studies on cancer rates of populations near chemical facil­ities. D

and Signal Cos. in September. He will resign that position, but remain as a member of the board of direc­tors and of the executive commit­tee.

Hennessy says of the operations being spun off: "These are all businesses we want to divest be­cause they don't fit with our growth strategy. By doing it this way, we expect to increase the total value for our shareholders and enhance Allied-Signal's growth potential."

The new company will be head­quartered in New York City and will have about 25,000 employees. Some of the businesses that it will take over from Allied-Signal include medical and laboratory instrumen­tation, Allied Analytical Systems, Fisher Scientific, and Instrumenta-

Hennessy: enhance growth potential

Hon Laboratories. In engineering services, it will pick up Kellogg Rust and its M. W. Kellogg unit; Signal Environmental Systems, which in­cludes air and water treatment equipment and refuse to energy businesses; and Signal Energy Ser­vices, providing cogeneration and coal service technology. It is also getting a number of unrelated in­dustrial businesses, which among many others include Allied's alu­minum sulfate, soda ash, and sulfur products operations.

The new company will begin op­erations with about $3.1 billion in sales. Allied says that it is transfer­ring about $400 million in liquid assets including real estate and mar­ketable securities to the new corpo­ration to give it sufficient cash flow to support its operations. The new firm will give Allied-Signal $350 million through debt financing and Allied-Signal will retain a 30% eq­uity interest in the new firm. The remaining 70% of stock will be dis­tributed to Allied-Signal's stock­holders.

The transaction, expected to be completed during the first quarter of next year, will leave Allied with about $11 billion in assets and $10.8 billion in sales on a pro forma ba­sis. Allied will have about 140,000 employees. It will take a one-time charge for the spinoff in the fourth quarter. The amount has not been determined.

Allied to spin off $3 billion in assets

November 25, 1985 C&EN 5