MINNEAPOLIS (FOX 9) – The Smith Foundry in the East Phillips neighborhood of Minneapolis announced it would close its doors after issues with air quality standards with the Minnesota Pollution Control Agency (MPCA) and the U.S. Environmental Protection Agency (EPA). 

The full closure is set to happen by August 15, ending more than a century of operations at that location. Furnace melting and core making operations ended on Friday, according to Smith Foundry officials. 

What we know

Smith Foundry leaders decided to shut the operation down after getting an ultimatum from MPCA. The foundry was told it must demonstrate that the company can meet federal standards set by the Clean Air Act or forgo an air quality permit.

The closing of the foundry brings about the end of a dispute between government regulators and Smith Foundry that spilled into public view last year.  

Read more: Smith Foundry ordered to end some operations by EPA

Some people living in the East Phillips neighborhood made clear during community meetings that they wanted the foundry shut down.

What they’re saying

Smith Foundry officials say they were left with no choice because of the “unreasonable” demands made by MPCA related to the air permit. 

President Smith Foundry Adolfo Quiroga released a statement on the foundry’s closing: 

“”The MPCA had a chance to make these air permitting demands from the previous owner, Neil Ahlstrom, for decades which would have shut down the foundry a long time ago, but they didn’t. And then, when Zynik purchased Smith Foundry, the MPCA approved the transfer of the existing air permit without a single question and without expressing any concerns. They never informed us they had any concerns about the foundry, its operations, or its existence in the neighborhood, which has operated in Minneapolis for over one hundred years,” said Quiroga. 

“Now, for reasons the MPCA did not provide and despite our compliance with all environmental laws and regulations and our commitment to alter our operations, significantly reduce emissions and save jobs in East Phillips, Minneapolis, and Minnesota, the MPCA is making unreasonable and unjustified demands through their arbitrary and opaque air permitting process that are essentially forcing us to close the furnace sooner than expected. They are in essence rejecting our agreement with the EPA. We are left with no other choice but to shut down the foundry. Unfortunately, our employees and their families will be impacted the most by this closure, which I deeply regret. I wish there was more we could do.”

The MPCA also released a statement regarding the closure: 

“The Minnesota Pollution Control Agency’s long-standing focus is to protect the environment and ensure the health and wellness of all Minnesotans, and we expect all companies in Minnesota to follow our environmental laws.

 “The MPCA supported the EPA’s enforcement action with Smith Foundry and agreement, which requires the company to obtain a new air permit from the MPCA. Smith Foundry is located in an area of the state that demands additional information demonstrate that the company could operate while meeting air quality standards set by the Clean Air Act in order to receive an air quality permit.  The company informed the agency today that it will shut down all operations by August 15, 2024, rather than provide information necessary for an operating air permit.

“The MPCA is committed to protecting the environment, health of Minnesotans, and the economic vitality of our neighborhoods and businesses. The agency regulates 55,000 facilities who hold environmental permits, including 2200 that hold air permits, that adhere to Minnesota’s strong environmental laws.”

Read more: Residents sound off at community meeting about Smith Foundry

During a community meeting co-hosted by the Minneapolis Pollution Control Agency and the East Phillips Improvement Coalition in November, a resident said “No matter what they are emitting, it’s killing us. It’s killing our children. You are supposed to be the one to help us and prevent this from happening and you are failing at your job.” 

Background 

Air quality concerns drove public outcry in November when residents complained about fumes and smoke plumes in the East Phillips neighborhood. 

EPA officials said that after a surprise May 2023 inspection, they found the foundry violated the Clean Air Act by emitting fine particulates at twice the amount allowed since 2018. However, the MPCA rejected the EPA’s reported findings and said it hadn’t found any violations at the state or federal level. 

The Smith Foundry later reached an enforcement agreement in June with the EPA that included ceasing some of its operations and paying an $80,000 fine. 

Smith Foundry, which manufactures castings while providing geometric design and engineering services along with finishing work, has been operating in Minneapolis since 1923 and was purchased by Zynik Capital Corporation in December 2022.