The Adhesives Research The Adhesives Research Warehouse Fire of January 10Warehouse Fire of January 10thth, 2006 , 2006 and the Recovery Processand the Recovery Process

Bill Stratton Bill Stratton

ARcladARclad®® VP & GMVP & GM

Adhesives ResearchAdhesives Research’’s Warehouse Fires Warehouse FireJanuary 10, 2006January 10, 2006

§ The Fire

§ Prior Planning

§ Recovery & Getting Back to Business

§ Cause

§ Improvement Plans & Lessons Learned

Tuesday, January 10, 2006Tuesday, January 10, 2006

The FireThe Fire

11:15am – Fire and Explosion

Blow-Out Walls Released

Tuesday, January 10, 2006Tuesday, January 10, 2006

The FireThe Fire

8:00 pm – Fire and Explosion

4 Alarm Fire

47 Pieces of Fire Equipment On Scene

Interstate Shut Down North and South for 16 miles (Detour for 44 miles)

Over 100 Chemicals Identified as being Involved

What percentage of our Facility still Remained?

95% of Facility Remained

and 100% of Equipment

Damaged Area Damaged Area -- Aerial ViewAerial View

ContainedChemical Storage Warehouse

Firewall

Building #1

Building #2

Admin

R&D

Quality

Only 5% of AROnly 5% of AR’’s Facility Destroyeds Facility Destroyed

Only 5% of AROnly 5% of AR’’s Facility Destroyeds Facility Destroyed

Why only 5%?Why only 5%?

Prior Planning Prior Planning

§ Design of Our Solvent Drum Storage Area

§ Evacuation Drills

§ Close Relationship with York Emergency Management Team

§ Mock Simulations with Local Fire Companies

§ Communications - Training to Address Media During a Disaster

§ Open and Cooperative Relationship with Pennsylvania DEP

§ Disaster Recovery Plan in Place

Prior PlanningPrior Planning

News Anchor asks: “Does Adhesives Research have any prior safety violations?”

Bernadette Lauer’s Reply: “Not that I am aware of. As far as from the stand point of our office, this facility has been a great facility to work with. They have open communications with us as far as updating their emergency plans, they’ve always been willing and efficiently doing that. When we do tabletop drills, they participate in that. They’ve been a great partner to work with.”

Prior PlanningPrior PlanningWith Local Emergency AuthoritiesWith Local Emergency Authorities

Mock Simulation Mock Simulation with Local Emergency Responders with Local Emergency Responders

Fire DepartmentsFire Departments

HospitalsHospitals

County Control (911)County Control (911)York County York County

Emergency ManagementEmergency Management

York County York County HazMatHazMat

Radio Amateur Civil Radio Amateur Civil Emergency Services Emergency Services

(RACES)(RACES)

Communications Communications ––Training to Address Media During a DisasterTraining to Address Media During a Disaster

The Good NewsThe Good News

§ No Injuries

§ No Apparent Environmental Issues

§ No Lost Jobs or Pay

§ Losses Minimized

§ Firewall Effectiveness

§ Diligence of the Emergency Responders

§ Minimal Customer Impact

Recovery and Getting Back to BusinessRecovery and Getting Back to Business

Getting Back to Business Getting Back to Business –– the First Few Daysthe First Few Days

§ Leadership Team Meets 3x per day (Responsibilities, Communications, Execute Business Interruption Plans)

§ Jan. 11th (Next Day)- Wed

§ Off-site Temporary Offices for Sales, Customer Services, IT & Purchasing Established

§ Defined Direct Communication Links with Associates

§ Jan 12th

§ R&D and Technical Associates Return to Work

§ Employee Assistance Program Provider On-site

§ Jan 13th - Operations Resume in Building #2

Getting Back to Business Getting Back to Business –– the Next Few Weeksthe Next Few Weeks

§ Jan 17th

§ Shipping and Receiving Resumes

§ Temporary Local Warehousing Facilities Secured

§ Irish Operation and Outsourcing Partners Making Up for Lost Production

§ Access to Building #1 & Facility Clean Up Starts with Outside Contractor

§ Jan 20th - Fire Officially Declared Out

§ Jan 21th – Sales, Customer Service, Purchasing, IT return to Administration Building

§ Continued DEP Interaction to Assess Environmental Impact

§ Proactive Communications (Website, Local Meetings, Direct Lines Open, Update Letters in the Local Papers)

Getting Back to Business Getting Back to Business –– the Next Few Monthsthe Next Few Months

§ Incident Investigation Report Completed February 2§ AR team plus consultants

§ Facility and Site Clean Up§ Process and disposal of 1MM gallons of captured runoff water

§ Soil Characterization and Remediation

§ ACT 2 Final Report Submitted to PA DEP (90 days) § Positive response in 60 days allowing rebuild to proceed

§ May 23rd -Debrief and Reconcile Meeting On-site with:§ York County Emergency Management

§ Critical Emergency Responders (Local Fire Companies)

§ AR Management, Engineering and EHS

CauseCause

CauseCause

§ The First Fire and Explosion was Caused by a Chemical Reaction (Auto-polymerization) within a Drum of Hazardous Waste Located in the Cold Storage Chemical Warehouse.

§ That Chemical is No Longer Used in any of Our Processes

§ The Second Fire and Explosion was Related to a Similar Event in the Same Area

Improvement Plans & Lessons LearnedImprovement Plans & Lessons Learned

Improvement Plans & Lessons LearnedImprovement Plans & Lessons Learned

§ Improvements to Evacuation Plans§ Faster Roll Calling

§ Emergency Supply/Info Boxes at Evacuation Poles

§ Electronic MSDS’ Available at Emergency Info Boxes

§ Copies of Disaster Recovery Plans at Key Locations

§ Improvement to Communication Plans§ Emergency Communication Info on ID Badges

§ Written Communications Statements for the Media

- One to Two Times per Day

- Company Fact Sheet for Media

§ Updated Leadership and Emergency Team Phone Lists

§ Phone Chains

Improvement Plans & Lessons Learned Improvement Plans & Lessons Learned -- ContinuedContinued

§ Improvements Facilities§ Foam Suppression Systems Installed in Critical Areas

§ City Water Line Connection

§ New Electrical Service

§ New Warehouse will Exceed all Relevant Codes & Guidelines

§ Improved Water Runoff and Containment

§ Improvement to Procedures and Policies§ Eliminate Class 1A Flammable Chemicals from Site

§ Reduce Flammable Inventories by 50% (Lean Manufacturing)

§ Continue to Review and Improve Evacuation Procedures

§ Continue to Review and Improve Disaster Recovery Plans

Current State Current State --Nine Months LaterNine Months Later

§ AR is mostly back on track

§ Broke ground on a new manufacturing facility for ARx

§ Construction of a new storage warehouse underway

§ Implemented Lean Manufacturing

§ Minimal Business Loss- Thanks to the Quick Responders and Disaster Recovery Plans that

were in place and immediately implemented

§ It worked because we had taken the time to plan for something like this in advance.

Take AwayTake Away

§ Be Proactive with your Local Emergency Providers

§ Get to Know Them

§ Get Them to Know Your Company

QuestionsQuestions