One year after a massive propane line blast killed three workers at a Falk Corp. plant in Milwaukee, the operation is back up and running, but the ensuing disruption of production cost the power transmission products manufacturer up to $54.5 million, the Business Journal of Milwaukee reports.

Rexnord Corp., which owns Falk, says it recovered $18.3 million from its insurance company and received a total of $52.8 million in cash advances and commitments from the insurer to cover losses related to the accident.

“From a business perspective, we have fully recovered from the Canal Street explosion,” president and CEO Bob Hitt says in a statement. “Reconstruction efforts are substantially complete and the Canal Street facility remains a solid member and strong employer in Milwaukee's business community.”

Despite the lost sales, Rexnord posted second-quarter revenues of nearly $454 million, up 52.3 percent over $252 million during the second quarter of 2006.

The blast, which investigators determined was the result of a leak in an underground propane pipeline, destroyed approximately 80,000 square feet of warehouse, storage and non-production buildings and damaged portions of other production areas. About 46 workers were injured in the incident.

Rexnord agreed to pay $40,000 in fines to the federal Occupational Safety and Health Administration to settle eight citations for failing to properly maintain the pipeline and failing to meet training and emergency response standards.

J.M. Brennan, the contractor that installed and serviced the line, agreed to pay $5,600 in OSHA fines.

Rexnord marked the blast's anniversary by breaking ground on a memorial plaza dedicated to the slain workers: Curtis Lane, 38, of Oconomowoc, Wis.; Thomas Letendre, 49, of Milwaukee; and Daniel Kuster, 35, of Mayville, Wis.

The plaza will feature gardens, a fountain, a wall with three plaques displaying the workers' names and three ornamental trees. Located in the center of the 1.1 million-square-foot manufacturing complex, the memorial is expected to be completed by spring 2008, company spokesman Evan Zeppos tells the newspaper.