BASF is one of the largest chemical companies in the world. Business was going well for the company, and it seemed like it had money to burn. As part of its desire to grow and expand, the firm purchased an ownership interest in a company known as the Engelhard Corporation, as discussed in a recent article from Bloomberg.
In addition to gaining ownership interest in the firm, BASF unknowingly inherited what has been called a ticking time bomb in terms of liability for mesothelioma lawsuits due to asbestos exposure. Engelhard Corporation manufactured the asbestos for many years, so the risk and liability transferred with the sale of the company.
The reason the chemical giant didn’t see this coming is because the product produced by Engelhard was traditionally known as an asbestos product outside the industry. It was industrial grade talc. While some talc was used in barbershops prior to the advent of non-talc baby powder, the majority of talc was used in heavy industry and production. It was also used in building construction materials, such as wall boards, and it was used as quick way to handle hot materials on a production line. It was common for workers at tire plant to use talc as quick temporary insulation, so they could grab the hot tires without burning their hands. Continue reading
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