A plastics plant in southwestern Ontario that was ordered by the province and federal government to reduce emissions of the cancer-causing chemical benzene now says it will permanently close by June 2026.
The Sarnia facility, which employs about 80 people directly, has been shut down since late April, after members of nearby Aamjiwnaang First Nation said they went to hospital and were treated for illnesses related to benzene exposure.
Orders from the provincial government drastically reduced the target for benzene emissions in May.
In a statement issued on Tuesday, the company said its decision was “irrespective of the current situation.”
“This difficult business decision to permanently close our Sarnia site was made following a lengthy evaluation process and is based on the economics of the facility within a wider industry context,” said CEO Steve Harrington.
“The long-term prospects for the Sarnia site have worsened to the point that it is no longer an economically viable operating asset.
“The production site in Sarnia is currently shut down due to recent orders from regulatory authorities that forced us to declare force majeure. We are currently assessing what is required to restart the site — a process that could take approximately six months.”
Councillor expects someone else will take over plant
Aamjiwnaang Coun. Darren Henry said the goal of the chief and council was not to get the plant shut down, but to get benzene emissions reduced.
“We’re naturally relieved,” said Henry.
“I think for our members, especially our children and our elders, that gives them, I guess a little more fresh air to breathe.”
The INEOS facility is a key part of the Sarnia-Lambton petrochemical cluster that is the second largest of its kind in Canada.
Refineries in the area ship benzene to the plant through a pipeline system that INEOS processes into styrene which is used in plastic parts for the medical and automotive industries.
Henry believes the facility will eventually be purchased and operated by another company because of its value in the cluster.
He said chief and council will continue to hold whoever operates the facility to high standards.
“The scrutiny is there and for our community, we’re prepared to follow this out.”
Lawyers for INEOS said in its appeal of the provincial orders that meeting the new standards would cost upwards of $30 million.
“The economic reality is that we have made significant investments in the Sarnia site for many years to ensure safe and reliable operations,” said Harrington.
“Additional large investments that are unrelated to the potential costs of restarting operations would be necessary in the near future. Such investments would be economically impractical given today’s challenging industry environment.”
