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Lancashire chemicals factory facing potential legal claim announces closure

Created at 13 Jul · 6:16 PM1 source↑ Market-relevant
IN SHORT

AGC Chemicals Europe Ltd is consulting on closing its manufacturing plant in Lancashire, affecting 190 employees. The announcement follows a potential legal claim from over 90 residents over historical Pfoa contamination.

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Key Numbers

190employees affected by closure
18agency staff affected
4years of financial losses
45days minimum consultation period
1999year AGC Chemicals Europe bought the factory
2020year Pfoa was banned globally
49tonnes of Pfoa emitted between 1950s and 2012
90+residents involved in potential legal claim
50residents accessing blood tests

Who's Involved

AGC Chemicals Europe Ltd
chemical manufacturing firm consulting on plant closure
Sam Hammond
resident whose duck eggs were found to be contaminated with Pfoa
Leigh Day
law firm investigating potential legal claim for residents
Environment Agency
agency investigating historic emissions and testing local produce
Health and Safety Executive
consulting on classifying EEA-NH4 as a possible carcinogen

↳ Why This Matters

The potential closure of the AGC Chemicals Europe plant highlights the significant financial and environmental challenges faced by legacy industrial sites, particularly those involved with 'forever chemicals' like Pfas. It underscores the growing legal and regulatory pressure on companies regarding historical pollution and its impact on local communities and public health.

Key facts

  • AGC Chemicals Europe Ltd is consulting on closing its manufacturing plant in Thornton-Cleveleys, Lancashire.
  • The closure would affect 190 employees and 18 agency staff.
  • The company cited four years of financial and operational challenges leading to losses.
  • The factory is being investigated for historic emissions of Pfoa, a chemical linked to kidney cancer.
  • Over 90 residents are involved in a potential legal claim over contamination.
  • Two allotment sites near the factory have been shut down due to contamination.

AGC Chemicals Europe Ltd has announced plans to close its manufacturing plant in Thornton-Cleveleys, Lancashire, a move that would affect 190 employees and 18 agency staff. The company is currently consulting with employees and union representatives, with the process expected to last at least 45 days. The firm stated that the proposal stems from significant financial and operational challenges that have resulted in losses for the past four years.

The factory is at the center of an investigation into its historic emissions of perfluorooctanoic acid (Pfoa), a type of per- and polyfluoroalkyl substance (Pfas) linked to kidney cancer. Pfoa was used at the site to produce PTFE, a chemical commonly used in non-stick coatings. Global regulations banned Pfoa in 2020.

Between the 1950s and 2012, the facility is estimated to have emitted 49 tonnes of Pfoa. Investigations by the Environment Agency and local council have revealed widespread soil contamination, leading to advice for residents to wash and peel homegrown produce and avoid locally sourced eggs. Two allotment sites near the factory have been closed.

Recent findings from a government-commissioned study indicated higher-than-expected rates of kidney cancer in the vicinity of the plant, though the study found no evidence of a cancer cluster or environmental link. Experts have expressed concern and called for further investigation, including blood testing.

More than 90 residents have signed up to be involved in a potential legal claim, with law firm Leigh Day investigating the viability of action on behalf of residents like Sam Hammond, whose duck eggs showed high levels of Pfoa contamination. The claim is associated with the loss of enjoyment and usage of land, as well as potential personal injuries. In the US, similar Pfas contamination issues have led to billion-dollar settlements.

AGC Chemicals Europe stated it takes its responsibilities to employees, the community, and the environment seriously. The company indicated that if manufacturing ceases, it remains committed to regulatory compliance, including maintaining staff for environmental permit compliance and monitoring. The firm stopped using Pfoa in 2012 but continues to produce and emit another Pfas chemical, EEA-NH4, which the Health and Safety Executive is considering classifying as a possible carcinogen.

Frequently asked questions

Pfas, or per- and polyfluoroalkyl substances, are commonly known as 'forever chemicals' because they do not break down in the environment. Pfoa (perfluorooctanoic acid) is a specific type of Pfas that has been linked to kidney cancer.

Residents are pursuing a potential legal claim due to historical emissions of Pfoa from the factory, which has led to soil contamination and concerns about health impacts, including higher-than-expected rates of kidney cancer in the vicinity.

AGC Chemicals Europe states it takes its responsibilities seriously and that a multi-agency report found no evidence of a statistically significant kidney cancer cluster or a link to environmental levels. The company stopped using Pfoa in 2012 but continues to produce another Pfas chemical.

What Happens Next

01The consultation period with employees and union representatives is expected to last at least 45 days.
02The Health and Safety Executive is consulting on the classification of EEA-NH4 as a possible carcinogen.

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Cadence

How It Developed

AGC Chemicals Europe Ltd announced plans to close its manufacturing plant in Lancashire.
The closure proposal affects 190 employees and 18 agency staff.
The company cited significant financial and operational challenges leading to losses over the past four years.
The factory is under investigation for historic emissions of Pfoa, a type of Pfas linked to kidney cancer.
Residents have been advised to wash and peel homegrown food and avoid local eggs due to soil contamination.
A government study found higher-than-expected kidney cancer rates near the plant.
Law firm Leigh Day is investigating a potential legal claim for residents over land use and potential injuries.
Over 90 residents have expressed interest in legal action, with 50 undergoing blood tests.

Sources

T1
Lancashire chemicals factory facing potential legal claim announces closureThe Guardian

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