INEOS Styrolution announced that it will permanently close its southwestern Ontario operations. Provincial and federal governments New regulations were enacted to control benzene emissions from its plants.
The chemical maker said in a statement Tuesday it will cease operations in Sarnia in June 2026.
April, Global News First reported how Aamjiwnaang Aboriginal Residents say they became ill after being exposed to dangerously high levels of cancer-causing chemicals benzene detected in the air. The community is located in an area known as Chemical Valley.
“The long-term outlook for the Sarnia facility has deteriorated to the point where it is no longer an economically viable operating asset,” said Steve Harrington, the company's chief executive.
Ineos said the decision to permanently halt operations was “not related to the current situation” after the Ontario government forced the company to temporarily shut down the plant in May. The company had previously said it had “not detected any emissions above the prescribed limits.”
“The economic reality is that we have made significant investments at our Sarnia facility over the years to ensure safe and reliable operations,” Harrington said. “Additional large-scale investments unrelated to the potential costs of restarting operations would be necessary in the near future. Given today’s challenging industry environment, such an investment would not be economically practical.”
The Ontario Government and Environment Canada Concerns about air quality near the Aamjiwnaang First Nation have forced the region to declare a state of emergency after the Indian government introduced new regulations to limit benzene emissions.
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Ineos has previously said its operations in the region could create 80 full-time direct jobs and 500 indirect jobs.
Aamjiwnaang residents had mixed reactions to the announcement.
Lynn Rosales, the First Nation’s environmental coordinator, said she was “very emotional” when the news broke.
““We never intended to close the facility,” Rosales said. “We just wanted to comply with industry standards and regulations.”
Former councillor Marina Plain said she was “sceptical” of Ineos' announcement and said when one company collapses, another always “pops up”.
“I’m a little pessimistic about the promises that this industry has given us,” Prine said. “No one is really going to end things easily. At least not in this industry.”
“I’ve seen a lot of promises from the industry, but they’ve never really delivered benefits to us.”
June 3, Ontario introduces restrictions The bill would limit annual average benzene emissions from Ineos plants to 4.5 micrograms per cubic meter (ug/m3), with an hourly average limit of 90 ug/m3. The 4.5 annual limit is actually 10 times higher than the province's current annual average limit for benzene, which is set at 0.45 ug/m3.
Benzene is a byproduct of the fuel refining process that Ineos uses to produce the styrene it needs to make car parts, electronics and medical devices.
Short-term exposure to the chemical can cause symptoms such as dizziness and headaches, while long-term exposure can cause cancers such as leukemia.
The move comes shortly after Canada's Environment and Climate Change Minister Steven Guilbeault issued an order under the Canada Environmental Protection Act requiring companies to take action if high levels of benzene are detected between March 1, 2023 and February 29, 2024.
Minister Guilbault said Tuesday that while protecting air quality and the health of Canadians is a top priority, his “heart is also with the workers who are impacted.”
“Ontario has issued four emergency orders in the past four years to ensure INEOS cleans up its act, and we have issued one following this,” the minister said in a statement. “Poisoning a community is unacceptable.”
Ineos said in a statement last week that it had always operated within regulatory standards and that the new restrictions were imposed without “consultation, justification or due process”.
Ineos said the timetable required by federal and provincial environment ministries was unsafe and would lead to higher emissions.
“We will not jeopardize the safety of our employees, neighbours and communities,” the company wrote in a statement. “Despite our past compliance, our company has been relentlessly attacked by Canadian government agencies.”
For members of the Aamjiwnaang First Nation, the fight for a clean and sustainable environment will continue, Rosales said.
“They’re just one of more than 60 agencies around us,” she said. “The fight is not over.”
— With files from The Canadian Press
© 2024 Global News, a division of Corus Entertainment Inc.
