Part 21 Report - 2001-091

Degussa Construction Chemicals Americas Chem Rex Inc. Corporate Headquarters 889 Valley Park Drive Shakopee, MN 55379

Konrad Wernthaler V.P. of Technology

konradw@chemrex.com Phone: 952-496-6369 Fax: 952-233-8402

May 7, 2001

Document Control Desk
U.S. Nuclear Regulatory Commission
Washington, DC 20555

Re: Final Disposition of Embeco 636 (CMTR) Grout Potential Nonconformance

To Whom It May Concern:

This letter is written to provide you with a summary of the final disposition of the Embeco 636 (CMTR) Grout nonconformance reported by SKW-MBT Management in January 2001.

Attached please find a letter of notification that was mailed to the affected nuclear utilities. It summarizes the nature of the reported nonconformance, suspected cause and actions to prevent reoccurrence. Because we can no longer purchase some of the raw materials used to make this product, we have not been able to determine exactly what caused the problem. We feel that the long-term solution is to reformulate this grout for better performance and shelf life characteristics.

The matter was discussed with representatives from FirstEnergy Nuclear Operating Company during a NUPIC audit last month. The discussions centered on our plans for introducing a new product. The auditors spent considerable time reviewing our methods of design and control of new products paying particular attention to the new Embeco 636 Plus (CMTR) Grout. A letter introducing the new product will be sent this month. At that time, samples of the new grouts will be available for testing by interested nuclear utilities.

We are issuing the attached letter to try to bring this issue to an end. It will be mailed to the same utilities that received the initial notification in January.

Also attached is a letter discussing our latest company name change. This letter will clarify why the initial notification came from SKW-MBT Management but this final letter comes from Degussa Construction Chemicals.

If you have any questions or need additional information, please contact Alice McFarland at 216-831-5500. If needed, I can be reached at 952-496-6369.

Respectfully,

Konrad Wernthaler
Vice President, R&D and Technology
Degussa Construction Chemicals
(Formerly SKW-MBT Management, Inc.)

BuIidIngTomorrow Together® ChemRex®

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