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HARRY B. SULLIVAN DIRECTOR of Engineering ■ Increasing environmental awareness and new regulations are dictating changes in the way we think and work at Clinton Mills. Clinton Mills has tradi tionally been an environmental ly conscious company and will continue to do its part to protect our natural resources. We have recycled waste byproducts from manufacturing and computer operations for many years. More recently, we have begun programs to recycle bale wrapping and aluminum drink cans. A waste compactor had been ordered to begin recycling cardboard at the four plants in Clinton. Clinton Mills has a corporate committee that reviews material safety data sheets of products before they are brought into our plants, and we have eliminated the use of those products which might result in toxic or hazardous waste wherever possible. We are well past the halfway point in a long term program to replace PCB filled transformers. Surveys have been completed at all plants to iden tify the location and condition of asbestos containing materials, and asbestos is only removed by approved contractors. Our engineering department is investigating equipment which will reduce the amount of CFC refrigerant which is lost to the air during nor mal operations and maintenance of the refrigeration equipment used to cool the plants. CFC’s are one of the substances which are causing the deterioration of ozone in the atmosphere. Several underground storage tanks for gasoline and fuel oil have been removed. The underground tanks which remain will be replaced with above ground tanks by 1993. No. 2 fuel oil will be considered as an alternate to No. 6 fuel oil where it is used as a backup to interruptible natural gas supplies. This would reduce emissions generated when we cannot burn natural gas in our boilers. We are working on waste pretreatment standards for discharges to the sanitary sewer systems in Clinton, Greensboro, and Geneva. We will be designing systems to make our discharges more compatible with the public ly operated treatment facilities. The purchasing department is buying more lubricating oils and greases, water treatment chemicals, and other products in refillable or returnable drums to reduce the need for drum disposal. Clinton Mills has applied for stormwater discharge permits at all loca tions through ATMI’s group permit application. Stormwater which can come in contact with chemical products or other raw materials will be monitored for water quality. Long term, we need to do more than plan ways to clean up our waste; we need to find ways to reduce and eliminate wastes. By conserving water, sizing materials, and dying and finishing chemicals we can reduce the need to treat the waste products that we create. By making the manufac turing processes more efficient, we can generate less waste to be dispos ed in the landfills and waste treatment plants. Each of us has a responsibility to eliminate or reduce the waste generated on our job and to see that all materials are recycled when possible. It is our intention to join with the textile industry to achieve “beyond com pliance” as a company goal. We All Must Work To Reduce Medical Costs TOBY CHAFFIN VICE PRESIDENT Human Resources ■ Health care has been the fastest rising component of in flation for years. In 1990 nation wide the cost of company spon sored medical plans was up 21.6%. Clinton Mills was no ex ception. So far this year our medical claims costs are up 17.3% over 1990. Through Oc tober 31, 1991, the total claims corporate wide are almost $5 million. At this rate, our pro jected yearly claims will exceed $5.7 million which is almost $1 million higher than 1990. Hospital costs comprise about 70% of our total claims costs. A recent study conducted by a leading health care consulting firm concluded that 24% of all hospital stays and 15% of office visits are unwarranted. The Milliman & Robertson, Inc. study established a team of doctors to review the medical charts over two years of more than 2,500 patients under age 65. David Axeme, principal and consulting actuary at Milliman & Robertson stated “We’re moving down the path of saying that the way to reduce the cost of care is to stop doing the things that you don’t need to do.” Experts place some of the blame of increasing medical costs on “up- coding” or the tendency for physicians to manipulate the codes for pro cedures in such a way that the overall amount of the bill increases. Other billing tricks such as “fragmentation” or “unbundling” are being used. Using these procedures, an operation that includes several steps and that is usually billed as one procedure is billed as a more expensive series of procedures. Sometimes operating room supplies are billed separately, rais ing the total cost. Hospitals often have a standard list of services for routine procedures. Many bill for the entire list regardless of whether the ser vices have been performed, unless a staffer checks off an item as not hav ing been provided. Tbe '- v V“r«eUTCttv^ ?Un ?Tof^ a ^|^has — . benv.- expenses were . 684 persons were participams u. - The value of plan assets, after subtracting liabilities .. 1990, compared to $6,092,347 as of January 1,1990. - e in its net assets of $373,145. This decrease includes unre<u^ e value of plan assets; that is, the difference between the value or ui^ r — ond the value of the assets at the beginning of the year or the cost " - •'Ian had total income of $480,373. or any part thereof, on request. f o the office of Pauline will be $2.00 no charge. „ _ it aiaw_ tion in the of plan assets; ui«.. the end of the year and the value of the assets acquired during the year. The plan had total Your Rights to Additional Information You have the right to receive a copy of the full annual report, or a. v . * ‘-; n '^nv of the full annual report, or any part thereof, write to the u»». administrator. The charge to cover copying costs '-*** for any part thereof. J '^inistrator, on request and at no ' - notes. If you request a copy '•nnanying notes for the thet will be inciuv> w.. include a charge for the without charge. You also have the legally protected right to exam..- ~'* < *mv Street, Clinton, SC 29325, and at the U.S. Depa.w. ~~ -"“sts to the Department should be addressed to: Public ^. " -fit Programs, Department of Labor, 200 Constitution -fion. contaci the Human Resource YOU a.,— 600 Academy Strec., _ of copying costs. Requests to tnc N4677, Pension and Welfare Benefit Prog; N.W., Washington, DC 20216. -^♦ance in obtaining a copy of available i„{oon» l ' on ’ fo' yout pauW« jAanafe 6 ' Benof" p ^ s CW‘« ,n n\5 Canton, o c"** 00 ': .yjo ssr fi '**>3«3j-5530 Annual Report t he Clinton Mills, Inc. Group Insurance Plan the annual report for the Clinton Mills, Inc. Group Ins v 1, 1990 to December 31,1990. The annual report ha. dee, as required under the Employee Retirement Incoi . .nation >eriod covered by this report, life and health cla»»^ surance Company. The total amount paid * $5,887,679. i Additional Ip*' p" right tp O : 87 *7<? p *«y Vth c .. * to ^ A/; • y 4ct C °Py 0/\. (continued on back page)