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Harcros Chemicals Resolves Government Investigation Into Materials Handling
Company accused of storing older chemicals for longer than allowed

KANSAS CITY, Kan., September 25, 2014.Harcros Chemicals Inc. (Harcros) has entered into a formal agreement with the U.S. Department of Justice and the U.S. Attorney's Office in Kansas City, Kansas, for a felony violation of the Resource Conservation and Recovery Act (RCRA). The charge involved the storage of seven older chemicals at the company's Kansas City, Kansas plant. Six of the chemicals were stored for use in laboratories for testing and one was an unused chemical product, which had been stored safely for many years.
Harcros operates a research and development laboratory where chemists perform testing for new products and quality control checks. The chemicals at issue were retained in cabinets and storage areas for potential future use. Shortly after a 2008 regulatory inspection, the chemicals were properly disposed off-site. None of the chemicals at issue were released into the environment, nor were any employees at risk.
As a result of the agreement, the company will pay a $1.5 million fine and face a probationary period. The fine payments will not adversely impact the company's financial position or its 100 percent employee stock ownership program (ESOP).
"We have fully cooperated with the government during its investigation and we are pleased that this agreement resolves the matter raised several years ago," said Kevin Mirner, president and chief executive officer, Harcros Chemicals Inc. "We can now move forward, continuing to safely provide our customers with the quality products they've come to expect."
About Harcros Chemicals Inc.
Harcros Chemicals Inc. is a major distributor and manufacturer of industrial and specialty chemicals. Privately held since 2001, the company has a long standing history in the chemical industry. The Harcros Chemicals Manufacturing Division headquartered in Kansas City, Kansas, with a secondary facility in Dalton, Georgia, is a niche producer of surfactants, emulsifiers, defoamers, and a myriad of specialty products, custom blends, and reaction chemistries. Harcros Chemicals operates twenty-eight distribution locations in nineteen states, providing service to customers nationwide. In January 2014, through the creation of an ESOP, Harcros Chemicals became a 100 percent employee-owned corporation.

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Welcome to Harcros Chemicals Inc.
The Organization

For nearly a century, Harcros Chemicals has been delivering quality products from hundreds of manufacturers to thousands of customers. An independently owned, U.S.-based company representing many of the top producers in the chemical industry, Harcros has developed strong, long-term relationships with our vendors to assure our customers of a dependable source of supply. Additionally, we market the Harcros Organics line of specialty chemicals, with a manufacturing plant located in Kansas City.

While we do supply product nationwide, our 28 distribution centers are geographically spread to provide excellent coverage of the U.S. east of the Rocky Mountains. All sites are served by a single business system for order management, finance, and communication, allowing optimum service efficiency.

The Harcros delivery fleet of over 200 vehicles includes trucks, van and tank trailers, and special equipment for safe delivery of a number of products. Collectively, our facilities have over one million square feet of warehouse space, and over three million gallons of bulk storage capacity.

The Goal

The Harcros goal is straightforward: we will serve our customer's chemical supply requirements with high-quality products from responsible suppliers. We will do so while adhering to the Responsible Distribution Process, and will abide by the highest ethical principles in working with our customers, suppliers, regulatory agencies, and our employees. Harcros Chemicals is a member of the National Association of Chemical Distributors, and strongly supports the NACD Responsible Distribution initiative.

The Commitment

Harcros is committed to a corporate culture which places the highest priorities on safety,quality, regulatory compliance, and both personal and professional ethics. Continuous improvement in all these areas results in a better business, with enhanced satisfaction for our customers, vendors, associates, and the communities in which we operate. Our goal is zero accidents or injuries.

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