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SHEERNESS Steel is being investigated after a fresh spate of complaints about bad smells at the plant.
The Environment Agency has demanded an in-depth inquiry into ASW's activities at Brielle Way. The mill must carry out detailed analysis of its operations over one month.
Despite an investment of £350,000 last year on fume abatement equipment, odour remains a serious issue at the plant, according to the Environment Agency's area manager for Kent, Dr Binny Buckley.
In a letter to Sheppey MP Derek Wyatt, she said: "An outstanding issue at the plant is odour.
"It was hoped that the modifications carried out in the last 12 months would go some way to solving this issue, but a spate of odour complaints has indicated that it remains a serious issue. The basic problem is that steel scrap recycling is essentially a dirty process and the process at Sheerness is relatively old."
But ASW claimed it had not been confirmed that the latest smells were coming from its mill. Group environmental manager, Colin Laskey, said: "We are working with the Environment Agency to see if the odours being complained about are emanating from our premises.
"My understanding is that we are not the only ones being asked to evaluate our processes." But he said if ASW was found to be responsible, the company would take action.
"We are working in a close proximity to residential areas and if ASW is the cause, you can rest assured we will be seeking resolution for it. We want a peaceful existence here," he said.
If ASW was proven to be responsible, it would be required to investigate ways of eliminating the problem permanently.
Dr Buckley said there had been a clean-up at the plant since an enforcement notice was issued in May last year. Large-scale improvements were carried out during the summer and Christmas 2001 shut-down, and this has led to substantial reductions in emissions of fugitive fume from the roof.
Derek Wyatt has received letters from concerned constituents and as a result, he is due to meet Environment Agency site inspectors on Friday, June 21.
He claims the agency has not been tough enough and he expects a "robust exchange of views".