ACB Group, a chemical company based in Melbourne's west, has collapsed owing creditors over $5.3 million. The company's factory site, which was involved in two major fires, one of which tragically claimed the life of a worker, is now facing scrutiny for posing a significant fire hazard. Liquidator reports reveal the suspected causes of the fires, including a chemical spark and a spark during manufacturing, both leading to explosions. The reports also highlight a potential risk to a high-pressure underground gas pipeline located behind the factory.
ACB Group, the chemical company that owned a factory in Melbourne 's west involved in two industrial fires, including one that tragically claimed the life of a worker, has collapsed, owing creditors over $5.3 million. Reports by liquidators, SV Partners, indicate that the factory site remains a significant fire hazard, prompting the EPA to conduct regular inspections. Both WorkSafe and the EPA are actively investigating the fires.
ACB Group is also facing two remedial notices from the EPA as it undergoes voluntary liquidation. Liquidator's reports shed light on the suspected causes of the two fires. The first fire, which occurred in 2023, was attributed to a chemical spark, tragically resulting in the death of a Hoppers Crossing man and injuring another employee. The second fire, in 2024, is believed to have been ignited by a spark during a manufacturing process, leading to an explosion. The reports also reveal a previously undisclosed threat posed by a high-pressure underground gas pipeline situated behind the factory. An eight-meter concrete wall collapsed onto the pipeline, raising concerns. According to the EPA, a further fire at the site could release hazardous substances into the air, impacting local communities. Additionally, contaminated firewater runoff could flow into nearby creeks, endangering aquatic ecosystems and potentially causing fish mortality. Matthew Hudson, the liquidator, informed the ABC that the situation had improved since the EPA's guidance was incorporated into his report, and the risks had been mitigated. However, the EPA declined to address questions regarding the ongoing fire risk at the site. Jeremy Settle, EPA western metropolitan regional manager, stated that the remaining material on the site includes building wreckage and fire-damaged products, including metal drums. He emphasized that regulatory notices have been issued due to contamination posing a potential risk to human health and the environment. APA Group, the pipeline operator, expressed 'significant concerns' about the accumulated fire waste on top of the pipeline, according to liquidator reports. However, an APA Group spokesperson assured that there was currently no damage or risk to the pipeline or its operation, and inspections would continue. Energy Safe Victoria stated that it would take a considerable amount of time for leftover chemicals from the fire to affect the pipeline, which is buried over a meter underground. They stressed the importance of clearing the site as soon as possible to allow APA Group to conduct a detailed inspection of the pipeline. ACB Group entered voluntary liquidation on December 20, with creditors including Fire Rescue Victoria (FRV), which had claims exceeding $425,000. The extent of creditor payouts remains unclear, as ACB Group has not yet received the full amount of its insurance settlements. However, Mr. Hudson anticipates 'a material return for creditors.' Mr. Hudson attributed ACB Group's demise to the later fire at the Derrimut site, which rendered the company unable to operate. He stated that, based on their investigations, there were no indications that the company was experiencing typical insolvency indicators before the second fire. Mr. Hudson confirmed that ACB Group's previous director, Victor Arutjunow, had informed all staff that wages, superannuation, and notice periods had been paid out, and this was currently being verified. ACB Group, according to ASIC documents, was owned by three members of the Arutjunow family through several holding companies. The business specialized in blending and manufacturing chemicals and dangerous goods, including solvents, fuels, and automotive chemicals. Victor Arutjunow, the sole director and CEO, was a part owner, while the other part owners also held senior positions within the company. The liquidator, Matthew Hudson, expressed uncertainty regarding the nature of these claims. Most of the company's physical assets were destroyed in the fire, but surviving assets included a truck and four cars, comprising two Mercedes, a BMW, and a Subaru Sportswagon. Mr. Hudson stated that these vehicles were in the process of being sold, although there was an ongoing ownership dispute concerning one of the vehicles. ACB Group also owned Lumineye Pty Ltd, a Queensland-based company that formulates and blends skin and nail polish products.
ACB Group Chemical Company Factory Fire Melbourne Liquidation Creditor Debt EPA Investigation Worksafe Investigation Gas Pipeline Risk
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