NEWS OF THE WEEK GOVERNMENT
& POLICY
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PLANT SAFETY BILL DELAYED IN SENATE
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Jurisdictional dispute, fears of inherently safer technology provisions block bill
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^^ EN. JAMES M. INHOFE (R- 1 floor. Provisions that would have ^ ^ Okla.), chairman of the Encalledforconsideration of 1ST at ^J vironment & Public Works "high risk" companies were inCommittee, is blocking a floor vote troduced at the Homeland Secu- Inhofe (left) and Collins on chemical plant security legisla- rity Committee markup but were tion due to a jurisdictional dispute voted down 5 to 11. M. Collins (R-Maine), chair of the and fears that the bill may allow Inhofe, like the chemical in- Homeland Security Committee, inherently safer technologies (1ST) dustry, opposes 1ST and believes said the senator will work quickly to be required as a means to lower it should be specifically kept out to resolve jurisdictional differthe risk of a terrorist attack. of security legislation. "1ST is an ences with Inhofe, but added that OnJune 15, a plant security bill, environmental concept that dates Collins was "puzzled" by his 1ST S. 2145, cleared the Senate Home- back more than a decade when the objections since the committee land Security & Government Af- extremist environmental commu- overwhelmingly defeated the 1ST fairs Committee by unanimous nitywas seeking to ban chlorine," amendment, vote. The bill would give the De- he said at a June 21 committee Twice before, a plant security partment of Homeland Security hearing. "It was only after 9/11 bill has cleared Senate committee, (DHS) broad authority to set sethat they decided to play upon the but legislation has never been taken curity regulations for some 15,000 fears of the nation and repackage up by the full Senate. The House plants that manufacture, store, pro1ST as a panacea to all our security is expected to begin committee cess, or sell chemicals and to penal- problems." consideration of a plant security bill ize facilities for noncompliance. A spokeswoman for Sen. Susan 1 this week.—JEFF JOHNSON 1 due to concerns that its provisions could regulate drinking water and wastewater utilities because they handle large volumes of chlorine. These facilities, he said in a June 12 letter to the Homeland Security Committee, are under the jurisdiction of his committee. Inhofe also believes the bill contains some "back door" provisions that would allow DHS to possibly use 1ST as an alternative to traditional security measures—guns, guards, surveillance—according to an Inhofe aide. Requirements for 1ST, such as reducing the use of explosive or toxic chemicals, are strongly opposed by the chemical industry but have been sought as a security option by several members of Congress as well as some state regulators and environmental groups. However, 1ST requirements are not part of the chemical plant security bill that is on the Senate WWW.CEN-0NLINE.ORG
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BUSINESS
Nicholas Piramal To Acquire Pfizer U.K. Plant ^ ^ ontinuing its aggressive pursuit of a top1 three position in the global custom manuV ^ facturing arena, Mumbai-based Nicholas Piramal India Ltd. (NPIL) has agreed to acquire Pfizer's Morpeth, England, manufacturing site. Financial terms are not being disclosed. As part of the deal, NPIL will supply Pfizer with active pharmaceutical ingredients (APIs) out of the site through 2011 .Pfizer uses the Morpeth facility, which employs about 450 people, to manufacture APIs for cardiovascular and arthritis drugs. The pact moves NPIL further up Pfizer's supply chain. NPIL secured a seven-year contract last December to provide process development and scale-up services for Pfizer's animal health division. According to the Indian firm, the addition of Morpeth will make NPIL the biggest supplier in dollar terms in Pfizer's global contract manufacturing network. Snagging the Morpeth site is part of a strong push by NPIL into the global contract manufactur-
ing arena. The company has played a role in pharmaceutical outsourcing foryears, but until 2002 was primarily focused on serving the domestic drug market. Through a combination of marketing efforts and acquisitions, most notably its purchase last October of Avecia Pharmaceuticals, NPIL has significantly broadened its presence on the global contract manufacturing scene, Upon completing the purchase of the Morpeth facility, NPIL's annual contract manufacturing revenues will be more than $200 million, which the company says will put it among the top 10 pharmaceutical outsourcing firms. In 2003, its contract manufacturing sales amounted to between $30 million and $40 million, For Pfizer, the divestiture of the Morpeth site is part of a global manufacturing optimization program initiated in late 2003 following the acquisition of Pharmacia. The goal is to pare back its internal manufacturing network by 25% through divesting, shutting down, or cutting back operations at facilities across the globe.—LISA JARVIS C & E N / J U N E 2 6 , 2006
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