Court fines Sabic €10 million for safety oversights at Limburg Chemelot facility

A Dutch court imposed a 10 million euro fine on Saudi chemical company Sabic for safety violations at the Chemelot facility in Limburg. The case revolved around a fatal accident, which claimed one victim and left another badly burned in December 2016. Another incident in May 2019 left another employee with burn wounds.

The penalty levied on Sabic is significantly lower than the 25 million euros the Public Prosecution Service (OM) had demanded in closing arguments. Alongside Sabic, OCI Nitrogen and AnQore also faced fines of €360,000 each in separate verdicts issued simultaneously regarding dangerous incidents. The two other companies also operate at the Chemelot industrial complex in the Limburg city of Geleen.

The District Court of Oost-Brabant issued its ruling on Tuesday, concluding that Sabic failed to adequately prevent "major accidents" at its facility. The court's decision highlighted that an employee died from burn wounds from one such accident, and two separate incidents where workers were left injured due to the company's alleged negligence.

The court emphasized the responsibilities of chemical companies like Sabic, stating, "Given the nature of this type of company, a minor incident can lead to severe repercussions." It underscored the duty of such firms to recognize risks and implement preventive measures.

Sabic already announced plans to appeal the decision, maintaining its position that it is not guilty of severe negligence, deliberate inaction, or an attempt to cover-up an incident. "The court's verdict is disappointing and Sabic does not agree with this ruling in many respects," the company wrote in a statement. It argued that a fine based on revenue was also inappropriate for a case of this nature. "Sabic will therefore appeal."

The court used the Saudi parent company's annual turnover to determine the fine, and did not factor in the revenue only from the Limburg office. The court noted the years-long proceedings as another factor when calculating its judgment.

The allegations which lead to the fines against the two additional companies include gas emissions and ruptures in steam pipes, recorded between 2015 and 2019. The court agreed that these could have led to worker fatalities without prompt evacuations. Neither AnQore nor OCI Nitrogen immediately said whether they planned to appeal against the verdict.

In a separate judgment, the court absolved the limited company that operates the Chemelot site on paper, Chemelot Site Permit BV, of any failures in safety oversight. The court defined the company's role as administrative rather than as a workplace inspector.

Additionally, Borealis Plastomers was exonerated on accusations of wrongdoing. The company also operates at Chemelot, but was cleared due to the fact that it immediately reported an accident to the site authorities.

These incidents have raised concerns regarding risk management and supervision at the Chemelot industrial park, a vast area of approximately six square kilometers that houses around 150 businesses with intricate chemical processes and sensitive operations. At the Limburg site alone, Sabic employs roughly 1,800 staff.