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By MARY K. BLEWITT
Arundel Newspapers State Writer
RICHMOND — Avtex Fibers Front Royal. Inc. submitted a plan to Circuit .Judge T.'j. Markow in Richmond last week that would significantly scale down the company’s production, but the plan might have come too late to save the dilapidated rayon plant.
Just 3>/2 hours before its scheduled appearance in Warren County Circuit Court to answer charges that it continues to violate an agreement with the State Water Control Board to cease polluting the Shenandoah River, the company released a statement announcing its plans to shut down five of the eight rayon production lines.
“The imposition of environmental requirements by authorities of the Commonwealth of Virginia far in excess of those anticipated by the company, in combination with unanticipated business circumstances and community pressures, have left Avtex management with no choice but to severely downscale and restructure our operations and to reduce the variety of products we manufacture,” said John Gregg, chairman of Avtex.
The result is the loss of 494 company jobs and more than $11 million annually in payroll and medical benefits.
Despite the reduction plan, which will cut the company nearly in half, the plant would have to close its doors if the court finds it in contempt and requires it to pay the $2 million fine immediately, according to Avtex attorney Timothy G. Hayes.
“If the court finds them in contempt, under the present wording of the decree, that puts them out of business,” said Hayes.
Water violations claimed
The State Water Control Board has accused Avtex of 99 violations of its water discharge permit and of violating a consent decree that settled a $19.7 million lawsuit last fall. Since signing the decree, the plant has continued to release toxic chemicals and acids into the south fork of the Shenandoah River.
The company contends, however, that there have been no pollutants discharged into the river duringthe month of June.
While admitting that violations were made, Hayes claimed that Murphy's Law was the culprit that kept the company from complying with the consent decree.
“What it all boils down to is forseeability and impossibility,” Hayes told the judge. A series of unexpected breakdowns of the system occurred after the company made the agreement with the state, reported Hayes.
“Avtex made its tyest efforts with the plant that it had,” said Hayes.
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