Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Compass Minerals halts magnesium chloride fire retardant

EditorAhmed Abdulazez Abdulkadir
Published 03/25/2024, 07:29 AM
Updated 03/25/2024, 07:29 AM
© Reuters.

OVERLAND PARK, Kan. - Compass Minerals (NYSE: CMP), a global provider of essential minerals, is facing a setback as the U.S. Forest Service (USFS) has decided not to contract the company's magnesium chloride-based aerial fire retardants for the 2024 fire season.

This decision came after an inspection revealed significant corrosion in airtankers that used the company's products.

The USFS informed Compass Minerals on March 22, 2024, that the scope and terms for a new contract could not be established until an independent assessment by the National Transportation Safety Board (NTSB) and National Institute of Standards and Technology (NIST) is conducted.

The inspections, part of the USFS's Integrated Operational Field Evaluation (I-OFE), showed corrosion where the retardant had accumulated, leading to aircraft safety concerns.

Edward C. Dowling Jr., president and CEO of Compass Minerals, expressed disappointment but agreed with the USFS's emphasis on safety. The company, which had its Fortress North America's FR-100 Powder and FR-200 Liquid Concentrate products listed on the USFS's Qualified Product List in December 2022, is now assuming that their magnesium chloride-based formulation will not be used in the near future for wildfire control.

In May 2023, Fortress had secured a contract to provide up to five mobile-deployed fire-retardant air tanker bases for the 2023 wildfire season. Negotiations for the 2024 season were underway when the corrosion issues emerged.

Compass Minerals is now focusing on achieving full qualification for its non-magnesium chloride-based aerial fire-retardant products. The company, with 12 production and packaging facilities and nearly 2,000 employees, is also committed to developing innovative and environmentally friendly solutions for long-term fire retardancy.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

This article is based on a press release statement from Compass Minerals.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.