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Ferro Corporation Civil Settlement

On March 18, 2002, the Justice Department, the EPA, the State of Indiana and the City of Hamond, Indiana entered into a $3 million settlement of claims against Ferro Corporation for the company's violations of the federal and state "new source review" provisions of the Clean Air Act and of state and local ordinances.

From at least 1980 until June 2000, Ferro Corporation manufactured Pyro-Chek, a flame retardant, at its Keil Chemical Division in Hamond, Indiana. While manufacturing Pyro-Chek, Ferro unlawfully emitted tons of volatile organic compounds (VOCs) each hear, primarily in the form of ethylene dichloride, a probable carcinogen. In June 2000, Ferro completely shut down and dismantled its Pyro-Chek facility, however, the rest of its chemical manufacturing business at the Hamond plant remained in operation. As a result of Ferro's Pyro-Chek shut down, the risk to human health and the environment from the excess emissions of ethylene dichloride has been abated.

The Clean Air Act's new source review program is designed to prevent deterioration of our nation's air quality and requires certain facilities to obtain permits before they construct or start up operations that act as new sources of pollution, and to install air pollution control equipment. This is to reduce the amount of harmful emissions released into the atmosphere. The requirements to install controls and to obtain permits apply the all new major sources of pollution and to existing facilities that are modified to increase their level of emissions.

In addition to paying penalties, Ferro will finance a brownfield cleanup project in the City of Hamond, which is valued at $844,000 at what is known as the Industrial Fuel and Asphalt Site, a 30 acre location that housed an oil refinery and an asphalt plant from the 1950s until 1985. Once this site is cleaned up, Hamond plans to convert it into an industrial park.

The consent decree was filed in the U.S. District Court in Hamond, where it is subject to a 30-day public comment period and court approval.

For additional information, contact:

Mario Jorquera
U.S. Environmental Protection Agency (2242A)
1200 Pennsylvania Ave., N.W.
Washington, DC 20460-0001
(202) 564-1079

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