Arkansas Business: 2012 plant fire could cost Welspun $14.5 Million

    7:16 AM, Jul 29, 2013   |    comments
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    LITTLE ROCK, Ark. (Arkansas Business) -- Stocks saw a slight gain on Friday amid light trading volume as investors held back a bit ahead of this week's busy week.

    There will be another closely watched meeting of the Federal Reserve and the government on Friday will report July unemployment numbers.

    St. Vincent, UAMS end strategic alliance talks

    Here in Arkansas, two hospitals will be regrouping and rethinking what's next after talks to form a strategic alliance have come to end.

    UAMS and St. Vincent Health System on Friday issued a statement that said the two were no longer negotiating over a possible alliance that could have combined some health care services under one entity.

    The two began talks almost a year ago, driven by federal health care reform, which is encouraging hospitals and physicians to be more effective and efficient.

    But a joint operation between St. Vincent, which is privately held and affiliated with the Catholic Church, and the state-owned UAMS was fraught with complications.

    In a statement, the two groups didn't rule out future talks.

    2012 plant fire could cost Welspun $14.5 Million

    And a fire that ripped through the control panel room at Welspun Pipes' Little Rock plant a year ago could cost the company $14.5 million.

    After the July 14, 2012 fire, the plant closed for repairs, delaying production of 180,000 metric tons of pipe.

    Because of the damage, Welspun sued its insurance company, Liberty Mutual Fire Insurance Co. of Wisconsin, for expenses related to the delayed shipment.

    Liberty says its payment of $1 million to Welspun is enough, but Welspun is suing for the rest and is claiming breach of contract and failure to honor the policy.

    Liberty representatives did not return a call for comment.

    Legend Boats in Baxter Co. plans for expansion

    And finally, the Mountain Home Chamber of Commerce says that Legend Boats, a maker of bass boats in Baxter County, is set for a $1.2 million expansion and an additional 30 jobs.

    The Baxter County Quorum Court recently signed off on an incentive package for the company.

    That package includes a rebate on state sales taxes paid by Legend on any building materials bought in the county.

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