Honeywell Is Target Of Federal Inquiry

Honeywell International says it has been informed by the Department of Justice that a grand jury has been convened to investigate the death of an employee at the company???s Baton Rouge, La., chemical plant in 2003.

In a quarterly report filed with the Securities & Exchange Commission on July 21, Honeywell says it does not believe the company???s financial position will be hurt, regardless of the outcome of the case.

"Although the outcome of this matter cannot be predicted with certainty, we do not believe that it will have a material adverse effect on our consolidated financial position, consolidated results of operations, or operating cash flows," states Honeywell, a diversified technology and manufacturing company based in Morris Township, N.J.

Three incidents occurred during 2003 at Honeywell's Baton Rouge chemical plant: a release of chlorine, a release of antimony pentachloride that resulted in an employee fatality, and a worker's exposure to hydrofluoric acid (C&EN, April 5, 2004, page 49).

"Honeywell has been served with several civil lawsuits regarding these incidents, for which we believe we have adequate insurance coverage,??? the company notes.

The Environmental Protection Agency and the Justice Department are also conducting investigations of the incidents, including the impaneling of a federal grand jury to investigate the employee fatality.

If Honeywell is ultimately charged with wrongdoing, the company says the Baton Rouge facility could be deemed ineligible to supply products or services under government contracts pending the completion of legal proceedings.