Chemical Maker Fined $4.78 Million by U.S.

A chemical manufacturer was fined $4.78 million Thursday by the U.S. Environmental Protection Agency for allegedly making three chemicals at its plants in Anaheim and Winder, Ga., without getting prior federal approval.

EPA spokeswoman Virginia Donohue said federal inspectors repeatedly found “batches” of the chemicals at both plants owned by the Stepan Co., which is headquartered in Northfield, Ill., dating back to March, 1990.

Donohue called the $4.8-million fine “a substantial penalty; it’s very significant.” She added that fines are automatically reduced by 25% if companies voluntarily admit they produced chemicals without EPA approval, but Stepan did not voluntarily come forward, Donohue said.

Local company officials were not available for comment late Thursday.

However, a statement released by the corporate headquarters indicates that officials plan to appeal the fine.

The company “believes that many of the allegations contained in the administrative complaint are in error,” according to the statement. “The company has verbally requested an informal conference to discuss this matter. The company cannot at this time estimate what its liability will be.”

Stepan is a small company which makes chemicals used in household, industrial, personal-care, agricultural and energy-related products. The latest financial report shows the company had 1,317 employees last year, with revenue totaling $435.7 million.

The types of chemicals discovered and the amounts produced are considered confidential information and cannot be released by the EPA, Donohue said. However, she said there did not appear to be any danger to workers or neighbors near the plant.

The company had been fined before by local officials. A penalty totaling $40,000 was assessed after a February, 1988, leak of sulfur trioxide fumes. The accident sent 15 nearby residents to hospitals with nausea and respiratory problems.

Stepan was among 23 firms nationwide assessed fines Thursday totaling $25 million for violating the Toxic Substances Control Act. The law requires all companies that manufacture or import chemical substances that they have not dealt with before to notify the EPA in advance.

Donohue said the law gives the agency an opportunity to evaluate the potential risks of new chemicals and decide whether to restrict manufacture or import.