Chemphil given more time to solve leakage problem

The Department of Environment and Natural Resources (DENR) has given the Chemical Industries of the Philippines or the Chemphil Group up to April 15, 2002 to address the safety and environmental concerns in its sulfuric acid plant in Pasig City. The plant was temporarily closed last year on suspicions that toxic leakage from the facility was causing health problems to residents in the area.

Chemphil vice president for legal services Rolando Navarro told the Philippine Stock Exchange that last Feb. 7, the DENR "extended again for the last time the temporary lifting order until April 15, 2002 to enable the company to further operate its sulfuric acid plant."

He said the extension would allow the company to install a new sulfur gun even as he claimed that they have instituted adequate mitigating measures to prevent leakage.

In addition, the company will have to comply with other requirements such as the assessment of the efficiency of the installed equipment, and a report to the company’s executive committee on the schedule of activities and monthly monitoring procedures.

Based on its environmental policy for its sulfuric acid plant, the double absorption technology was adopted so that the stack emission is well below the maximum set by the government for the industry. The heat of combustion of sulfur is utilized not only to generate steam but also to generate electricity, an important energy conservation technology.

But in August last year, the spread of toxic fumes through defective air vent facilities caused panic among nearby residents and resulted in the plant’s closure by the local government authorities.

After a series of tests, the plant was allowed to reopen but the DENR continues to monitor its activities, particularly the maximum allowable emission of sulfuric trioxide.

Chemphil pioneered chemical manufacturing in the Philippines. It started operating in 1958 with a 10 metric ton/day sulfuric acid plant. Today, the company is the holding company of major corporations primarily engaged in the manufacture and sale of industrial chemicals, fertilizers, general insurance, chemical bulk storage, and personal care products.

Last year, Chemphil drew up a group-wide restructuring program to rationalize its operations by selling certain assets and spinning off non-core businesses.

In 2000, Chemphil suffered a consolidated net loss of P328.42 million due to the slump in the business activities of several subsidiaries.