HOUSE TAKES AIM AT CLEAN AIR ACT - C&EN Global Enterprise

Oct 3, 2011 - HOUSE TAKES AIM AT CLEAN AIR ACT. POLLUTION: Industry backs cost-benefit analyses of EPA rules, but critics fear assault on public ...
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NEWS OF THE WEEK

HUNTSMAN SHRINKS ITS SWISS PRESENCE TEXTILE DYES: Industry migration to Asia continues

HUNTSMAN

Huntsman will shut down textile chemicals production in Switzerland.

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UNTSMAN may eliminate as many as 500 jobs in

Switzerland through the closure of production facilities and the elimination of administrative positions at the firm’s site in Basel. The planned job cuts will affect Huntsman’s textile effects division. Huntsman acquired the Swiss assets when it bought the textile effects division of what was then Ciba Specialty Chemicals in 2006 for $250 million. With plants in 14 countries, the business develops and manufactures dyes and other chemicals used by the textile industry. “We need to take bold action to fundamentally improve the poor financial performance of our textile effects division,” CEO Peter R. Huntsman said in a statement. “The recent strengthening of

HOUSE TAKES AIM AT CLEAN AIR ACT POLLUTION: Industry backs costbenefit analyses of EPA rules, but critics fear assault on public health

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IDE-RANGING legislation designed to curb

EPA’s ability to more strictly regulate toxic air pollution under the Clean Air Act has passed the Republican-controlled House of Representatives. Approved by a vote of 249-169 on Sept. 23, the bill (H.R. 2401) would set up a Cabinetlevel committee to study the cumulative costs of more than a dozen major new or proposed EPA rules and analyze their impact on energy prices, employment, and the global competitiveness of U.S. industry. The chemical industry supports the legislation, saying it will shed light on the regulatory burdens that are harming U.S. job growth and recovery. “The ability of America’s chemical manufacturers and all the industries that rely on chemistry to compete globally and create well-paying jobs SHUTTERSTOCK

A House-passed bill would delay EPA rules aimed at reducing toxic power plant emissions.

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the Swiss franc has greatly impacted our cost structure in Switzerland.” The Swiss franc appreciated almost 30% against the dollar between January and August before retreating after a Swiss government intervention early last month. The franc is now about 4% higher than at the start of 2011, but about 33% higher than when Huntsman bought the business in 2006. In a note to investors, analysts at the investment bank Jefferies said about 50% of the cost of operating the textile effects division is tied to the Swiss franc. Huntsman will reap annual cost savings of $15 million to $30 million if the plant closures proceed, the analysts estimate. Huntsman said the Swiss downsizing will be accompanied by an expansion of capabilities in other parts of the world, primarily in Asia. The company plans to hire 100 new people in “key” markets. “As customers and competitors alike have increasingly moved their centers of business to Asia, we must realign ourselves,” Huntsman said in the statement. The Swiss-based R&D capabilities of the textile effects business will not be reduced, Huntsman said. But separately the company announced it will invest $40 million to build a corporate R&D center in Shanghai’s Minhang district. To be complete by mid-2013, the facility will accommodate up to 400 technical experts, the firm said.—JEAN-FRANÇOIS TREMBLAY

here at home requires that regulations reflect a realworld understanding of the costs to business,” says Calvin M. Dooley, president and CEO of the American Chemistry Council, an industry trade association. Congress and the Obama Administration “must fix deficiencies in the way agencies develop regulations so proposed rules are rational and balanced,” Dooley adds. A provision added to the bill would also block EPA from moving forward with a rule slated to take effect in January 2012 that requires 27 states to reduce power plant emissions that contribute to smog and soot pollution transported across state boundaries. The regulation applies to sulfur dioxide and nitrogen oxide emissions, which mostly come from coal-fired plants. Another amendment directs EPA to take into account feasibility and cost when setting National Ambient Air Quality Standards, effectively overturning a 2001 Supreme Court decision that upheld EPA’s practice of considering only public health impacts when developing the standards. Critics charge the measures would undermine EPA’s ability to reduce air pollution and protect public health. “Everyone should be able to breathe clean air, but this bill puts tens of thousands of lives at risk by blocking the cleanup of deadly air pollution,” says Lauren Randall, of Environment America, an environmental advocacy organization. “Americans deserve better.” The bill now goes to the Democrat-controlled Senate, which is unlikely to pass it. But if it does clear the Senate, the White House has threatened a veto.—GLENN HESS

OCTOBER 3, 2011