CHESTERFIELD COUNTY, Va. — A manufacturer with a production facility in Chesterfield County is facing a $40,000 fine after regulators found it exposed some workers to a toxic chemical and did not take required safety actions.

Switzerland-based Condair Group, an evaporative cooling technology company, manufactures products such as commercial humidifiers and dehumidifiers.

In 2024, Condair announced it would establish a new production facility in Chesterfield, a decision that was celebrated by local and state leaders.

The company's chief executive officer said at the time the decision to move to Virginia would "facilitate closer engagement" with customers, "particularly in the data center sector," according to a press release.

Then-Governor Glenn Youngkin called Condair's products "the engine behind our data center industry," according to a Chesterfield County blog post.

Some employees of Condair Group recently reached out to CBS 6 with concerns about workplace conditions.

CBS 6 then confirmed regulators with Virginia's Occupational Safety and Health (VOSH) program cited Condair for workplace safety violations, resulting in the proposed fine.

According to the Department of Labor and Industry, VOSH investigators opened a case in January after receiving a complaint about potential respiratory hazards.

An inspection report issued in July said the company did not accurately determine employee exposure to formaldehyde.

Independent OSHA expert Seth Wilkins with LegacyMark Safety Consultants explained formaldehyde as a colorless chemical with a strong odor.

He said short-term exposure to formaldehyde can cause coughing, burning eyes, and throat irritation while long-term exposure is linked to cancer risk.

“It is a toxic chemical. It is highly hazardous, so the exposure to formaldehyde should be limited," Wilkins said. "Any possibility to eliminate the exposure to it needs to be taken.”

VOSH's inspection found two workers were exposed to formaldehyde above what is known as the "action level," a regulatory threshold that triggers required safety measures.

“That's basically stating that there is a level of formaldehyde present, and you need to be concerned about prevention of exposure beyond this," Wilkins explained.

The cited exposure did not exceed the higher permissible limit, which is the level regulators consider immediately dangerous.

However, the VOSH report said Condair did not set up a required medical surveillance program for the workers exposed to the chemical above the action limit.

The company also failed to ensure proper training for employees exposed to formaldehyde, according to the report.

CBS 6 reached out to Condair multiple times requesting responses to the findings, but we have not heard back.

A VOSH spokesperson said two additional health and safety inspections into Condair remain ongoing and could not share further details about them.

According to Wilkins, all employers should take formaldehyde risks seriously and implement protections starting with risk assessments and periodic air monitoring.

“You really want to start taking a closer look at what type of engineering controls that you have in place and whether they're effective," Wilkins said.

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