Kerr-McGee selling last operation in Henderson

Friday, Feb. 20, 1998 | 10:34 a.m.

Kerr-McGee Chemical Corp., which is in the process of selling its Henderson rocket fuel business, said Thursday it's exiting Henderson by also selling its electrolytic chemical business to a Finnish firm.

The previously announced sale of Kerr-McGee's ammonium perchlorate business to American Pacific Corp. of Las Vegas will end production of the rocket fuel in Henderson. AP produces the fuel at a plant near Cedar City, Utah.

American Pacific said Thursday it's selling $75 million in notes to finance the deal and to refinance debt.

American Pacific moved production to Utah in 1989 after its original plant, Pacific Engineering & Production Co. also near Henderson, exploded and burned to the ground in May 1988.

The sale announced by Kerr-McGee Thursday is not expected to affect the local electrolytic chemical plant or its 250 employees. It makes chemicals used in products like airbag inflator initiators, batteries, electronics and fibers.

The Oklahoma City-based Kerr-McGee said the sale is part of a strategy to concentrate on oil and gas exploration and producing its principal chemical, titanium dioxide pigments.

Kerr-McGee will sell the Henderson operation to Finland-based Finnish Chemicals, also known as ERIKEM. A plant in Mississippi is also being sold and an Idaho plant may be considered for sale.

Plant manager Pat Corbett said in a statement: "It is my understanding that ERIKEM is looking to expand into the United States and plans to continue operations at the (Henderson) plant."

"It's unlikely that there will be any short-term changes resulting from this change of ownership," Corbett said.

Kerr-McGee and AP are cooperating with the Nevada Division of Environmental Protection, which is overseeing the removal of perchlorate from the Las Vegas Wash, which contributes to Lake Mead, Southern Nevada's major drinking water source.

Perchlorate is a salt that affects thyroid gland activity. It is used in Europe as a treatment for over-active thyroid.

However, long-term exposure to low doses of perchlorate is under study by U.S. defense laboratories and the federal Environmental Protection Agency.