Minneapolis foundry accused of Clean Air Act violations will pay fine, end casting operations

A south Minneapolis metal foundry accused of Clean Air Act violations that increased pollution in one of the city’s most diverse neighborhoods will convert to a metal finishing facility to reduce emissions and pay an $80,000 fine in a settlement with the Environmental Protection Agency.

Smith Foundry will stop its furnace and casting operations — the melting and forming of metal products that has historically been the base of its business — in the next 12 months, the EPA announced Tuesday. The move is expected to significantly reduce emissions at the facility, which has operated on East 28th Street in the East Phillips neighborhood for around 100 years.

“Shutting down the furnace and casting operations is a win for this community, which has been historically disenfranchised and overburdened by pollution,” said EPA Regional Administrator Debra Shore. “East Phillips residents deserve to breathe clean air and to live in a healthy, thriving community.”

Community members celebrated the settlement Tuesday, while asking for a rapid timeline to cease furnace and casting work at the facility.

“Today we celebrate community power and what we can accomplish when we come together with a common goal,” said Jolene Jones, an East Phillips resident founder of the Little Earth Protectors. “Our residents deserve to enjoy their backyards, open their windows, and breathe the air in their neighborhood without pollution harming themselves and their loved ones.”

The EPA conducted a surprise inspection at Smith Foundry in May 2023 and found the foundry regularly emitted nearly twice the amount of air pollution allowed by state permits, failed to properly maintain equipment designed to reduce pollution, and did not notify the state about equipment failures as required. The EPA issued a notice of violations in August 2023 that alleged nine violations of the Clean Air Act .

Residents were largely unaware of the issues at Smith Foundry before Sahan Journal reported on the violations in November 2023. The revelation sparked outrage in the community and led to the Minnesota Pollution Control Agency (MPCA) holding several public meetings surrounding a new air permit process for Smith Foundry.

Several community members and elected officials expressed anger with the state over Smith Foundry’s violations. The facility is located near other industrial sites and highways, all of which contribute to negative health outcomes. The neighborhood has some of the highest rates of asthma in the state, according to the Minnesota Department of Health .

The company withdrew its application for a new air permit with the MPCA on May 28, an agency spokesperson said Tuesday. The move came shortly before the EPA announced its settlement agreement.

“This settlement is an important step toward protecting the health and well-being of residents in the East Phillips community,” MPCA Commissioner Katrina Kessler said in a statement. “The MPCA remains invested in the community and will monitor, in partnership with the EPA, ongoing emissions from Smith Foundry and air quality in the East Phillips neighborhood to ensure compliance with state and federal laws. “

The settlement does not include a supplemental environmental project , where the company is required to create projects with community benefits that the EPA can require from a facility with violations.

Cassie Holmes, vice president of the local nonprofit East Phillips Neighborhood Institute, said she is glad to see the agreement.

Holmes sued the city of Minneapolis over the environmental review for the Roof Depot project, a legal battle that helped the institute secure an opportunity to buy a former Sears warehouse across the street from Smith Foundry, which community members are planning to convert to an indoor urban farm, housing, and local business space. She lost her 16-year-old son to a heart condition in 2013, and became involved in the fight for environmental justice in her neighborhood.

“We deserve an apology from Zynik Capital and Smith Foundry for the years of harm and lies and lack of care for the community,” Holmes said, referencing the foundry’s parent company.

Smith to phase out foundry operations

The EPA settlement means Smith Foundry must stop running as a foundry in the next 12 months.

The facility must immediately shut down two of its pouring and cooling lines, and is limited to melting 2,884 tons of metal before ceasing its furnace operations. All furnace and sand mulling operations used to form products must close in the next 12 months.

The furnace at Smith Foundry is a major source of pollution concern for neighborhood residents as it is not connected directly to pollution control equipment and has emissions that exit the roof through a vent, according to inspection reports. The company had told federal and state officials it was planning to add an emissions control system to its furnace.

Smith Foundry was purchased by Zynik Capital, a Canadian firm, in 2022. The company has other foundries in its portfolio. The foundry expects to convert to a metal finishing facility, according to the settlement announcement.

The company said in a statement it will cease all melting and pouring operations by June 3, 2025. It will continue operating Smith Foundry to finish products from other foundries.

The Minnesota Occupational Safety and Health Administration (OSHA) found 10 serious violations of workplace safety at Smith Foundry in December and issued the facility a $15,300 fine. The state said the foundry improperly exposed employees to carbon monoxide and airborne crystalline silica, and didn’t provide them with the proper protective equipment or training to mitigate such exposure. Smith Foundry has contested all those violations.

The facility has about 50 employees, according to a spokesman, depending on seasonal demand. The EPA action will likely mean a reduction in workforce, but the company will try to retain many of its employees, the spokesman said.

Evan Mulholland, a lawyer with the Minnesota Center for Environmental Advocacy, called the settlement a victory for environmental justice, but called for a faster timeline to end foundry operations.

“We should not have been in this situation where the foundry operated for years out of compliance with pollution control regulations,” Mulholland said. “Smith and other polluting facilities need to be held to account and, in this case, Smith should commit to shutting down its uncontrolled melting and pouring operation as soon as possible.”

EPA officials said the settlement should improve air quality in East Phillips. Smith Foundy’s nextdoor neighbor, asphalt producer Bituminous Roadways, reached an agreement with the MPCA to close its south Minneapolis facility this spring. The EPA conducted an unannounced inspection at Bituminous Roadways the same day they visited Smith Foundry last May, according to data obtained in a public records request.

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