Federal-Mogul Warehouse Destroyed by Fire,Ammonia Spill Closes Bearing Plant

Federal-Mogul Corporation (USA) suffered two serious, but apparently unrelated, incidents at facilities in Blacksburg, Virginia and Smithville, Tennessee. Fire Destroys Smithville DC The Federal-Mogul distribution center in Smithville, Tennessee was extensively damaged March 5 by an early morning fire, apparently started by an employee looking for the night off from work. After burning out of control for more than 12 hours, firemen from three counties were eventually able to contain the blaze, but not until it had essentially destroyed the distribution center and its contents. Damage is estimated at between USD $80 million and $100 million, over $50 million of that in inventory. The Smithville DC was 244,000 square feet and had been Federal-Mogul's primary U.S. distribution center for Moog and TRW brand aftermarket undercar parts. Following a tip received the day after the fire, state arson investigators and Smithville police have arrested a temporary employee who was working in the center's shipping department. According to police reports, the employee used a candle to set a small, smoky fire in a corner of the building in a packaging area, hoping the result would be a night off from work. Between 40 and 50 third shift employees were inside the building when the fire started; everyone was evacuated safely. The distribution center employs a total of 225 workers. The building was equipped with working sprinkler systems, but fire officials say the sheer volume of combustible materials inside probably overwhelmed the sprinklers and kept the fire burning. Nearby schools and businesses in DeKalb County were forced to close because firefighters used so much water on the fire that the entire water system lost pressure. Federal-Mogul did not yet have a plan in place to adjust for the loss of the Smithville DC and its inventory. In a statement, the company said, "Operations at the Smithville distribution center are currently suspended, and the company expects to implement a temporary solution to resume operations late next week." Smithville is also home to Federal-Mogul's largest brake pad manufacturing plant and a brake system R&D facility. Chip McClure, President and CEO, said, "Federal-Mogul expresses its deep sympathy to our employees and to the community of Smithville for this devastating loss. We feel extremely fortunate that all our employees were safely evacuated and that no one was injured." He went on to say, "Federal-Mogul is working hard to resume operations and lessen the impact on our customers and the community." City, county and state officials are working to develop alternatives for Federal-Mogul and to keep them in the area. In a town of only 4,000 residents, the loss of Federal-Mogul's distribution center jobs would have a "huge impact," said one local businessman. Ammonia Leak Shuts Down Blacksburg Engine Bearing Plant On the evening of March 3, just over a day before the Smithville warehouse fire started, the Federal-Mogul engine bearing plant in Blacksburg, Virginia suffered a major ammonia storage tank leak. The leak shuttered the facility and forced a local evacuation. A weld apparently failed at the bottom of a relatively new 1,000 gallon ammonia storage tank when it was 80% full. The leak was discovered at approximately 7:30 PM and reportedly took more than 6 hours to be brought under control with a patch and later by pumping the tank dry. The Blacksburg plant, which opened in 1971, manufactures engine bearings for both OEM and aftermarket customers. Ammonia is used in the bimetal bonding process. Approximately 430 people currently work at Blacksburg, but Federal-Mogul recently announced there would be further, more severe, employment cutbacks at Blacksburg in response to, "competitive pressures." At its peak, Blacksburg employed almost 700 people. The entire Blacksburg Industrial Park area was closed and evacuated, as were other businesses and roads nearby. The Blacksburg transit system also had to be shut down, as its headquarters is in the same industrial park. Workers inside the plant were kept there as the safest alternative while the air handling systems were shut down. The employee parking lot is adjacent to the ruptured tank, and moving around outside the plant anywhere would have brought exposure to the caustic vapors. The Blacksburg Fire Department kept water hosing down the tank area, where the ammonia evaporated as it leaked. Ammonia and its vapor are extremely corrosive. As with most industrial chemical supplies, Federal-Mogul does not own the tanks but leases them from the company which supplies the ammonia. This particular tank had been installed only recently. The plant was shut down until Thursday's second shift. Other ammonia tanks provided sufficient backup capacity for production to resume once the leak was repaired and the ammonia contained.