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Imperial Sugar Fined After Fatal Explosion

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The Associated Press

Published: July 26, 2008

SAVANNAH, Ga. - Federal officials said Friday that Imperial Sugar Co. should face fines of more than $8.7 million for violations at two plants, including a Georgia facility where an explosion killed 13 people.

The fines would be the third-highest in the history of the Occupational Safety and Health Administration's nearly 40-year existence. They include $5 million for the explosion near Savannah on Feb. 7 and $3.7 million for the plant in Gramercy, La.

OSHA investigators concluded the explosion was most likely caused when a large bucket used to haul sugar in a silo elevator broke loose and struck the metal siding, causing a spark that ignited sugar dust accumulated beneath 100-foot silos.

The agency said its investigation uncovered company audits, insurance records and other documents showing Sugar Land, Texas-based Imperial Sugar had been warned about combustible dust hazards in its plants since 2002. Its inspection of the Louisiana plant a month after the Georgia blast found workers wading through sugar dust up to 4 feet deep.

"This catastrophic accident could have been prevented if Imperial Sugar had complied with existing OSHA safety and health standards," OSHA chief Edwin Foulke said at a Savannah news conference.

OSHA found 120 violations against the Georgia plant, including 61 considered egregious. In Louisiana, Imperial Sugar was cited for 91 additional violations, including 47 egregious ones. Many violations were similar to those in Georgia.

Fines for the Louisiana plant included $36,000 proposed by OSHA in March, after an inspection revealed levels of dust it considered so dangerous that Imperial Sugar was forced to shut down its powdered sugar operation for several days.

Imperial Sugar CEO John Sheptor said in a statement Friday the company would contest OSHA's findings.

"We believe that the facts do not merit the allegations made," Sheptor said. "As we go forward, we will continue to focus on the safety of our employees and our contractors."
OSHA officials said they were preparing for potentially lengthy litigation.

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