Orascom agrees to settle US pollution allegations

Two companies owned by the Sawiris family agreed last week to settle alleged violations of the Clean Water Act by paying a civil penalty of US$80,689 between them, according to the US Environmental Protection Agency (EPA).

The allegations levied against Iowa Fertilizer and Orascom E&C USA came after the EPA inspected the construction site of a new fertilizer plant the company is building in Wever, Iowa, last June.

Since Orascom E&C is the construction contractor of Iowa Fertilizer, the EPA blames both companies for allegedly breaking the Clean Water Act.

A representative of the investor relations department for Orascom, Hesham Halaby, expressed his surprise that the case is receiving news coverage, arguing that a $81,000 fine on a $1.5 billion project is a negligible sum.

The Iowa fertilizer plant is scheduled to open by the end of 2015 and is expected to be the largest plant built in the US in 30 years. Once running, it is projected to produce 1.5-2 million tons of nitrogen fertilizer per year.

The EPA’s inspection identified numerous violations on the plant’s construction site, which were mainly connected to the absence of any preventive measures stopping polluted rain water from leaking into a tributary of the Mississippi river near the site.

The settlement between the EPA and the Sawiris-owned companies has not yet been finalized, as the law states that settlements with the EPA are subject to a 40-day public comment period before being approved.

Orascom E&C USA and Iowa Fertilizer are just two of many companies owned by the Sawiris family, which operate under the umbrella of the Orascom conglomerate. The family also deals in construction, industrial manufacturing, telecommunications, technology, tourism and media.