New research shows that a chemical compound associated with the 3M Company’s Scotchgard™ product is more widespread in the environment than first thought.

Data has revealed that the Scotchgard compound that repels oil and water can break down over time into perfluorooctane sulfonates (PFOS) and accumulate in animal tissue.

The study, funded by 3M, was a joint effort between researchers at Michigan State University (MSU), Lansing, Mich., and 3M scientists. MSU has been working with 3M, St. Paul, Minn., over the years as a consultant.

3M has been funding studies since the 1970s as a method to try to better understand product chemicals and their makeup, says 3M spokesperson, Rick Renner.

Researchers first wanted to determine if the compound was in the environment. If it was, researchers wanted to determine how widely dispersed it was. Finally, they wanted to measure the magnitude to which the compound was prevalant, according to lead researcher Dr. John Giesy, who is a professor of natural science at MSU.

The study had some very significant findings. He found widespread distribution of the chemical in mammals, fish and birds.

Because this is the first program to research PFOS, there were no established methods to measure the amount of the chemical in the air.

PFOS were never thought to exist in the environment, therefore no previous scientific studies have been done.

“We didn’t know it was [in the environment] because material used in polymers are not thought to be released into the air,” says Giesy.

Chemicals associated with polymers — natural or synthetic compounds of high molecular weight — are thought to remain sedentary; however, findings indicate the reach of PFOS extends into the air.

PFOS are a different class of chemicals and behave in different ways, therefore an alternate way to measure and to interpret the data was needed, according to Giesy.

3M developed a method used by MSU researchers and 3M scientists.

Although at the time there had been no reports of adverse health effects from the compound, 3M began replacing the chemical in May 2000. By 2002, 3M will have completely stopped manufacturing products containing PFOS chemistry.

“We are not phasing out the Scotchgard product. These products have been reformulated and are now in production,” says Renner.

“3M made a business decision to stop using the chemical,” says Giesy. “Instead of waiting to see what could happen, they said, ‘we know it’s there, let’s look at it.’”

“We’re doing what we call life cycle management — it’s a cultural program to try and improve the environment,” adds Renner.

Giesy collected more than 2,000 animal tissue samples from the Pacific Rim to Antarctica and analyzed more than 400 for PFOS.

The data shows higher PFOS concentrations among animals in urban industrial areas. However, further work is needed to determine how PFOS became so widespread.

Although 3M and MSU are in the process of doing a risk assessment to determine how the chemical affects wildlife, the scientists determined through case studies with rats the chemical exposure did not exceed the threshold to cause health damage.

3M is the sole U.S. producer of the chemical that breaks down to produce PFOS.

Once data is complete, the researchers will share their information with the U.S. Environmental Protection Agency (EPA).

A public meeting is scheduled in November for the EPA, 3M and MSU. All findings will then be presented and future actions will be discussed.

–– Kari Strobel


EPA’s Authority to Levy Fees To Expire

Currently, the U.S. Environmental Protection Agency (EPA) is allowed by law to administer annual maintenance and registration fees.

However, the Federal Insecticide, Fungicide and Rodenticide Act prohibits the EPA from assessing any other fees. This restriction, as well as EPA’s authority to collect maintenance fees, expires on September 30, 2001.

This includes fees related to products registered as “pesticides” (this includes disinfectants, germicides, and other antimicrobial products).

The original prohibition against additional pesticide fees was passed into law in 1993 to prevent EPA from imposing a series of registration fees — including costly chemical registration fees down to less costly amendment charges.

If the authority to assess maintenance fees expires, EPA is expected to explore methods for raising funds through the imposition of additional fees, according to industry groups who oppose the fees.


Katy Announces Agreement, Awaits Shareholder Approval

Katy Industries, Englewood, Colo., recently entered into a recapitalization agreement after reporting a fourth quarter net loss of $2.3 million.

Katy has suspended payments of quarterly dividends and has obtained waivers from its existing bank lenders for compliance with certain financial contracts through June 30, 2001.

A definitive agreement was reached with an affiliate of Kohlberg Investors, a private merchant banking firm with offices in New York and California.

Under the agreement, the Kohlberg affiliate would purchase up to 2.5 million shares of Katy common stock at $8 per share and buy at least 400,000 shares of newly issued convertible preferred stock worth at least $40 million. Proceeds would be used to reduce Katy’s existing debt.

Completion of the transaction is subject to a number of conditions, including affirmative vote of Katy’s shareholders to authorize the convertible stock, election of six Kohlberg designees as directors of the company and the completion of the sale of an operating subsidiary.


Energy Crisis Causes Georgia-Pacific Plant Shutdown

Georgia-Pacific, Atlanta, will permanently close its pulp mill and associated chemical plant at Bellingham, Wash., after reviewing its long-term viability.

The unanticipated energy crisis on the West Coast significantly raised the cost of energy and subsequently influenced the company’s decision.

The closure will affect approximately 420 employees — many have been laid off since December.

Operations were temporarily suspended since December due to high electric power costs.

The adjoining tissue paper and converting facilities will continue operating with the remaining workforce of 330 employees. Temporary electric generators have been used since January while Georgia-Pacific searches for other sources of affordable electric power.


EPA Locks Files on Chemical Data

The U.S. Environmental Protection Agency (EPA) recently struck down a Clinton administration proposal to increase public access to information about the potential consequences of chemical plant accidents. The agency cited reasons of national security.

The proposal would have allowed people to visit reading rooms and review risk management plans on computer systems — it would have allowed them to only read material, not copy or print it.

Chemical plant operators, who support access, say that the data could help communities prepare for disasters like industrial explosions. However, members of Congress, industry officials and law enforcement authorities have argued that the information is too sensitive and could be used by terrorists to plot attacks.

Freedom-of-information groups eventually placed summaries of some reports on the Web.

Originally, the EPA was to post all information on the Internet. That plan was first blocked by Congress in 1999.


Report Reveals Lost Worktime Due to MSDs

The U.S. Bureau of Labor Statistics (BLS) recently published a report that shows a decline in the number of work-related injuries caused by musculoskeletal disorders (MSDs) that resulted in employees missing time from work.

According to BLS data, employers reported 582,300 cases of MSDs that resulted in employees missing work in 1999. That number was down from 592,500 in 1998 and significantly lower than the 784,100 reported in 1992.

Those working in the janitorial and cleaning field reported 14,100 or nearly 2.5 percent of the total cases claimed in 1999. Previous years’ data was not available for comparison.


Estate Tax Put to Death

The House of Representatives recently passed a measure to phase out the estate tax by 2011 with a 274-154 vote — as a part of President Bush’s $1.6 trillion tax cut package.

The estate tax — often referred to as the “death tax” — is a levy that taxes inherited business assets, in some cases up to 55 percent. Small business owners who oppose the tax say it is too costly of a burden for businesses.

The same day, however, the Senate voted 53-47 to trim President Bush’s tax cut. The vote removed $450 billion from the tax plan.

Although debates continue in Congress, many industry economists agree that tax cuts could stimulate the economy and help avoid recession.


AmSan Pairs With Provider To Streamline Internet Ordering

AmSan LLC, Cary, N.C., has reached an exclusive, multi-year agreement with eCommerce Industries Inc. (ECI2), Vienna, Va., intended to strengthen e-commerce processes among its distributors.

ECI2 also announced recently its plans to acquire Maytech Computer Systems Inc., San Antonio, a provider of distribution and management software specifically for the jan/san industry. The acquisition firms up the company’s ability to provide integrated technology for AmSan’s divisions, according to ECI2.

Recently-acquired AmSan companies all have “disparate” systems in place, Scott Rosenzweig, ECI2 says. AmSan’s decision to partner with ECI2 will consolidate technology among the divisions creating efficiencies, he says.

This will enable AmSan to provide seamless business transactions to our many thousands of customers, says AmSan’s president and CEO, John Muthe.

The e-commerce aspect of the solution, AmSanOnline, is expected to be functional by Fall 2001.


Labeling System Sparks Debate

An agreement between the U.S. Environmental Protection Agency (EPA) and the National Resource Defense Council (NRDC) could classify some chemical ingredients — including those in pesticides and commercial chemicals — as “endocrine disruptors.”

Some industry groups argue that this classification is done without scientific support.

In recent years, some scientists have proposed that a variety of chemicals damage the endocrine system (glands and hormones) of humans and wildlife.

However, a recently adapted schedule developed by the EPA and the NRDC would provide a public listing of chemicals in December 2002.

Those who oppose this listing say that validated tests will not be available by that time to accurately determine endocrine effects.

While the EPA has extensive data on pesticides, there is currently not enough scientific data available on most of the estimated 87,000 chemicals to evaluate all risks, according to the EPA.

Industry groups are concerned that labeling inert ingredients as endocrine disruptors will affect pesticide marketing; they’re worried that consumers will avoid such chemicals once EPA lists them for endocrine testing.

However, the test listing does not mean that a chemical is an endocrine disruptor, EPA stresses.

The Food Quality Protection Act of 1996 requires EPA to implement an endocrine screening and testing program.


Mergers and Acquisitions

SCA (Svenska Cellulosa Aktiebolaget), a Stockholm, Sweden-based marketer of paper products for industrial and commercial uses, has acquired Georgia-Pacific’s away-from-home tissue (AFH) operations, Georgia-Pacific Tissue LLC. The business will operate as SCA Tissue North America LLC, a unit of SCA North America. The acquisition places SCA as the third largest manufacturer in the AFH-tissue market, after Georgia-Pacific/Fort James and Kimberly-Clark. SCA’s North American operations are based in Philadelphia and SCA Tissue North America is based in Neenah, Wis.

American Sanitary Inc. (AmSan), a privately owned distributor of building maintenance supplies and equipment headquartered in Cary, N.C., has signed a letter of intent to acquire the similar operations of Easterday Janitorial Supply Co., San Francisco, a subsidiary of ABM Industries Inc.

The Evergreen Group, Huntington Station, N.Y., a member-owned marketing group of independent paper distributors, has signed an agreement to enter into an alliance with Consolidated Distributors Inc. (CDI), Monroe, La., a member-owned national marketing group of paper and janitorial supply distributors.

Amtech Lighting Services, San Francisco, a subsidiary of ABM Industries Inc., has acquired the maintenance operations of SLI Lighting Solutions, Canton, Mass. SLI Lighting is a subsidiary of SLI Inc., an international manufacturer, distributor and marketer of illumination products.

American Building Maintenance, San Francisco, a subsidiary of ABM Industries Inc., has acquired all operations of CarpetMaster Cleaning, a Cohoes, N.Y.- based provider of janitorial and related services. Specific conditions were not disclosed, however the former operators and owners of CarpetMaster will continue to manage the business.

ThermoElastic Technologies Inc., Toronto, an acrylic composite manufacturer, has completed the acquisition of the marketing, distribution and sales rights to the DISIFIN R disinfectant tablets and cleaning products for the United States and Canada. DISIFIN R tablets are water-activated disinfectant tablets that are currently used in Europe.

Pro-Link, San Antonio, has announced the addition of a new distributor, D.H. Bertenthal & Sons, Pittsburgh.


NewsMakers

Selig Industries, Atlanta, a part of National Service Industries’ NSI Chemicals Group company, a specialty chemical manufacturer, has secured a contract with Cleanevent International. This provides Selig Industries the rights to service all NASCAR races, the U.S. Open tennis tournaments, and other sports and entertainment events with their cleaning and maintenance products.

ABM Janitorial Services, San Francisco, a wholly-owned subsidiary of ABM Industries Inc., has been awarded a contract to continue providing janitorial services at Minneapolis-St. Paul International Airport. ABM’s airport operations will include cleaning the Lindbergh and Hubert H. Humphrey terminals, as well as the concourses, office spaces and baggage areas.

Armchem International Corp., Ft. Lauderdale, Fla., an industrial maintenance supply company, recently announced a new distribution center opening in Ft. Lauderdale, Fla. This makes the third warehouse/office expansion for Armchem in the past five years.

Athea Laboratories, Inc., Milwaukee, has announced AFM Marketing will assume control of the company’s sales in upstate New York, western Pennsylvania, and eastern Canada.

The Clorox Co., Oakland, Calif., recently announced it has terminated its agreement with Bombril SA, stating that various conditions of the agreement were not met. In January Clorox entered into an agreement to acquire 50 percent stake in Detergentes Bombril SA, the new venture formed by Clorox and Bombril, a Brazilian household cleaners and utensils company.