safety. compliance. sustainability. werner richtering – atotech, berlin, germany – 18/11/2015...

Safety. Compliance. Sustainability.

Werner Richtering – Atotech, Berlin, Germany – 18/11/2015

Potential Banned Substances of Concern for the Metal Finishing IndustryCASF conference, Vaughan, Canada

18 November 2015

Safety. Compliance. Sustainability.

Werner Richtering – Atotech, Berlin, Germany – 18/11/2015

... seen from Europe: REACH and other directives... an update

Proprietary and Confidential

Substance inventories

W. Richtering – CASF, Vaughan, Canada – 18/11/20156

REACHTSCA

DSL

IECSC

AICS

KECIAREC

ENCS

PICCS

TCSI

RICCS

CLASS


REACh and REACh-like legislations worldwide: ‒ Restriction of Cr(VI)-compounds (Chromates, Dichromates, CrO3)‒ Restriction of Co-salts‒ Restriction of hazardous substances (RoHS)‒ End of Life Vehicles Directive (ELV)‒ Biocide Directive

K-Reach: South Korea

Taiwan-Reach

Nickel-salts ???

Borates and boric acid

NPE: Nonylphenolethoxylates

A global trend: environmental awareness towards a sustainable future



Local restrictions for specific chemicals:

‒ Boron-based chemicals in Europe (fish toxin)

‒ More than 2.800 local restrictions for specific chemicals, (China Catalog of Hazardous Chemicals, rev. 2015)




Industry or company restrictions:

‒ Formaldehyde: by Samsung, semiconductor industry

‒ Nickel: by cell phone manufacturers ...

‒ Cr(VI): Hyundai, Toyota, ...

‒ More than 2.700 industry or company restrictions (substances restricted by OEM, e.g. On-Semiconductor, Sony, HP, Hitachi, Seagate, Intel, Panasonic, Ford, GM, VW...)


*SVHC: Substance of Very High Concern




E.g. REACH

Today, 31 chemical substances of very high concern (SVHC) are listed in ANNEX XIV and require authorization, including hexavalent chromium (Cr(VI))

By 2020: > 450 SVHC candidates will be reviewed and presumably included

Today

12 chemical inventories, including REACH

Other Chemical Legislations

e.g. China Catalog of Hazardous Chemicals rev. 2015 (update after Tianjin accident)

In 2015: Major revision to broaden the scope and include substance groups

Restrictions on chemical substances are increasing on a world-wide level.


REACh .....


egistration,R

valuation,E

uthorizationAand restriction of Chemicals



Timeline of REACH in effect since 1 June 2007

13

High volume deadlines passed – all other due before 2018

Source: BTC Specialty Chemical Distribution, REACH Flyer

Nov. 2015


14 W. Richtering – CASF, Vaughan, Canada – 18/11/2015

REACh: Substances of Very High Concern (SVHC)

„Substances of very high concern pose an unacceptable risk to human health / the environment”

It is the aim of REACH to replace SVHC progressively (where economically and technically viable)

Authorization and restriction are the mechanisms to minimize the risks coming from SVHC by‒ restricting the use to specific applications‒ imposing strict measures for handling the substance‒ eventually banning the use of the substance from the market

EU authorities repeatedly announced intention to fulfil the target of reviewing >450 substances for the SVHC candidate list by 2020

Any substance on the SVHC candidate list might be banned within 5 years




Annex XIV

• 31 substances included in Annex XIV with sunset dates from 21. Aug. 2014 until 22. Jan. 2019

• Additional 35 substances recommended as priority substances for inclusion into Annex XIV have been published between 01. Jun. 2009 (1st) until 01. Jul. 2015 (6th recommendation)

• Number of substances on the Candidate List: 163 (published in accordance with Article 59(10) of the REACH Regulation, last updated: 15 Jun. 2015)

Candidate list

Reach Annex XIV

Priority list

Proposals for SVHC



REACH provides strict guidelines for the authorization of substances of very high concern (SVHC)

EU Member state

proposal for SVHC

18 months

or more for preparation

of application per uses

18 months

or more for decision whether

authorization is granted

If authoriza

tion is granted

It specifies:The allowed use / time

frame / HSE measures

Authorization can be taken back any time if a business solution is found

2011

Formation of a consortium for authorization of specific uses

2013

Latest date of application

2016

Sunset date:Any use without authorization banned

Expectedexpiry date

authorization

2017 2025

Chromium-VI among the first SVHCs nominated


Chromium-VI is used in various industries. Many applications have already been stopped.


2002:

184,000t

2011:

90,000t

Worldwide consumption: Applications(partly stopped already)‒ Paints‒ Textile and leather‒ Wood preservation‒ Anti-corrosion and

conversion coatings‒ ELECTROPLATING

of which 45,000t

by the metal finishing industry



EU Member state

proposal for SVHC

18 months

or more for preparation

of application per uses

18 months

or more for decision whether

authorization is granted

If authoriza

tion is granted

It specifies:The allowed use / time

frame / HSE measures

Authorization can be taken back any time if a business solution is found

Formation of a consortium for authorization of specific uses / Atotech is a member of the consortium

Latest date of application

Sunset date:Any use without authorization banned

Expectedexpiry date

authorization

2011 2013 2016 2017 2025

It is expected that usage for Chromium-VI is granted with restrictions but...

Expected 12 years with restrictions, then no more Chromium-VI

If an economically feasible alternative exists, authorization is not granted.

If an economically feasible alternative appears,

application may lose authorization.

Example

Chromium-VI

The EU has already now published strict standards for specified Chromium-VI usage after sunset days.


Chromium trioxide is listed on Annex XIV or REACh‒ The substance is labelled a “Substance of Very High Concern (SVHC)”

Any use that is not explicitly authorized is banned after the sunset date: September 21, 2017

Chromium trioxide (“Chromic Acid”)Authorization


April 17, 2013• Inclusion in Annex

XIV REACH

Q1 2015• Start of application

consortium

March 21, 2016• Latest application

date

a

a

a

a


Atotech filed an application for authorization for inter alia decorative plating together with the members of CTACSub (Chromium Trioxide Authorization Consortium for Submission)‒ Submission was done in May 2015, ECHA confirmed conformity and

receipt‒ The consortium is the successor of CTAC‒ Managed by Jones Day‒ Consultancy support by Ramboll-Environ

Expected review period for the authorization: 7 years‒ The review period starts with the sunset date

The public consultation ended on October 7, 2015and was re-started Nov. 11 until January 7, 2016 for 3 applications‒ The next steps will not be visible to the public

The decision by the EU Commission is expected at the very earliest end of 2015, more likely by mid of 2016

EACH authorization Chromium TrioxideCurrent status



EACH authorization Chromium Trioxide... Latest update



ACEA (European car manufacturer association) has finally taken a position: they are asking for a more time (9-12 years) to use CrO3 for the authorized applications in order to substitute Cr(VI) by other alternatives‒ They support the substitution!

EU authority expert groups proposed a duration for the authorization of another Annex XIV-substance of 7 years‒ We expect something similar for Cr(VI)‒ ECHA expectation is this 7 year period has to be used to for the phase-

out of Cr(VI)

REACH authorization Chromium TrioxideCurrent status & recent developments [2014]



2nd independent consortium VECCO is active‒ Consists of appr. 185 SME’s from the European surface finishing industry

with a majority share from Germany (28 from Italy)

VECCO started a lawsuit against EU Commission‒ First hearing in German administrative court on 16. 01. 2014‒ Hearing at European Court of Justice in early 2015‒ Based on doubt for correct methodology to obtain exposure data and

hazardousness of chromic acid in plating operations‒ It is the aim of the lawsuit to get exemptions from authorization for plating

applications‒ A decision can be expected in late 2015:‒ The case was dismissed on Sept. 25, 2015

REACH authorization Chromium TrioxideCurrent status & recent developments [2014]


*VECCO = Verein zur Wahrung von Einsatz und Nutzung von Chromtrioxid und anderen Chrom-(VI)-Verbindungen in der Oberflächentechnik

(Association for the protection of the use of CrO3 and other Cr(VI)-compounds in surface finishing)


Does Atotech apply for authorization?‒ Yes, application is already filed, decision outstanding.

Questions on Cr(VI) authorization procedure




Atotech has applied for authorization for all uses of CTAC‒ Formulation‒ decorative and functional plating‒ aerospace and aeronautics‒ corrosion resistant coatings‒ passivation of tin plated steel

Next steps‒ Public consultation started Aug. 12

and ended on Oct. 7, 2015‒ NGOs as well as suppliers of alternatives will challenge the application‒ Decision on authorization is expected not before beginning of 2016, more

likely around mid of 2016



UseCTAC Proposed

review period

Formulation of mixtures 12 years+

Functional chrome plating 12 years

Decorative chrome plating 7 years

Aerospace 12 years

Corrosion resistant coatings 7 years

Passivation of tin-plated steel (ETP) 4 years (bridging)

NGO – Non Government OrganizationCTAC = Chromium Trioxide Authorization Consortium


Atotech is frequently updating customer information letters – latest version August 19, 2015:





Should my company apply for authorization?‒ This depends on the company‘s strategy and whether the use is a

„standard“ plating application. Non-standard applications might not be included in Atotech’s application for authorization

‒ Further information customer information letter





Should my company apply for authorization?‒ This depends on the company‘s strategy and whether the use is a

„standard“ plating application. Non-standard applications might not be included in Atotech’s application for authorization

‒ Further information customer information letter

Will I get the same problems with trivalent chrome in future?‒ No, trivalent chromium compounds do not fulfil the criteria of SVHCs.‒ Trivalent chromium compounds are produced out of chromium trioxide,

but this is out of the scope of authorization.





Our first priority is the development of Cr(VI)-free alternative processes for all plating applications

In parallel Atotech actively supports the authorization process to secure a sustainable business environment for our customers and end-users until Cr(VI)-alternatives have been qualified

Atotech strategy on Cr(VI)Summary


Proprietary and ConfidentialSafety. Compliance. Sustainability.

Borates


Boric acid and sodium tetraborate were proposed by ECHA for inclusion in Annex XIV, meaning authorization‒ The EU Member States confirmed this approach

Currently the decision is in the hands of the EU Commission

The industry is currently trying to convince the EU Commission that restriction is the better approach- the outcome is open to date

Besides the plating sector, dozens of other industry sectors would be affected by the authorization requirement

Boric acid and sodium tetraborate proposed for authorization



Cobalt


35 W. Richtering – CASF, Vaughan, Canada – 18/11/2015

Five Cobalt Salts Proposed for Restriction

Cobaltdichloride, -carbonate, -acetate, -nitrate and -sulfate

The cobalt salts are proposed for restriction instead of authorization‒ Under authorization the industry needs to apply for an authorization,

prepares a dossier showing the case (industry takes the lead)‒ Under restriction the authorities prepare a dossier that shows why the

substance is dangerous and needs to be restricted (authorities take the lead)

A cobalt salts restriction might look like Annex II of ELV


36

Restriction instead of authorization proposed‒ Surface treatment is one of the applications of concern

In contrary to authorization, authorities take the lead‒ The industry has 6 months for „official input“‒ The industry has to make authorities aware of substance applications

For the cobal salts a decision by EU authorities should already have been taken in 2015‒ It is not clear why the decision is not yet made- no transparency‒ Rumors say that a decision will be made mid 2016, however the direction

of the decision is absolutely unclear

Cobalt Salts Restriction Case in Detail



NPE(Nonylphenolethoxylates)



NPE under REACh

News from EU Commission's meeting end of October 2015:

This means that NPE is almost under authorization (law could be

issued in Q1 2016).

Based on the draft of Annex XIV this would result in a sunset date in

Q3/Q4 2019, meaning no usage after that date without authorization.

For China:

NPE falls under a specific regulation, the Decree 591. This implies that specific

import and usage permits are required for NPE.


Nickel compounds‒ Today no nickel compound is on the SVHC candidate list‒ In 2015 EU member states may decide on listing nickel compounds (e.g.

nickel sulfate) as SVHC* candidates

more in the following talk......

Other potential SVHCs




K(orea)-REACh came into force 01 Jan 2015‒ Atotech is in compliance with K-REACH despite a lot of minor and major

issues of the law‒ The first list of ~500 substances to be registered until 2018 is available

Mainly high volume and highly toxic substances‒ First list of SVHCs still to come

Taiwan-REACh‒ The toxical substance control law is giving the outline of substance

registration in Taiwan‒ Update came into effect on 11 December 2014‒ New substance registration already started‒ Start of implementation with pre-registrations (similar to EU-REACh)‒ Authorities will decide on registration based on volumes, hazard criteria,

etc.

Chemical Legislation outside Europe



Summary

Today, CrO3 is 1 of 31 substances on

Annex XIV, i.e. subject to authorization

Atotech

No. 1 priority is the development of

Cr(VI-free processes

for pretreatment and plating

Atotech actively

supports CTAC for Cr(VI)

authorization of decorative and functional applications during transition to Cr(VI)-free

Number of specific substance restrictions in

China

increased from 3800 in 2002 to

> 5000 in 2015

Sunset date for non-authorized intended uses of CrO3 is 21.

Sept. 2017

2013 CORAP update draft

proposes 125 substances for

evaluation in 2014 - 2016

EU Goal: > 450 SVHCs reviewed by

2020

Decision onBorate

authorization expected in

2015




CORAP: COmmunity Rolling Action Plan (update 28. Oct. 2015


Summary




Today, CrO3 is 1 of 31 substances on

Annex XIV, i.e. subject to authorization

Atotech

No. 1 priority is the development of

Cr(VI-free processes

for pretreatment and plating

Atotech actively

supports CTAC for Cr(VI)

authorization of decorative and functional applications during transition to Cr(VI)-free

Number of specific substance restrictions in

China

increased from 3800 in 2002 to

> 5000 in 2015

Sunset date for non-authorized intended uses of CrO3 is 21. Sept. 2017

EU Goal: > 450 SVHCs reviewed by

2020

Decision onBorate

authorization expected in

2015

Atotech continues to develop sustainable technologies and processes replacing

SVHC

CORAP: COmmunity Rolling Action Plan (update 28. Oct. 2015


Thank you for your attention!

safety. compliance. sustainability. werner richtering – atotech, berlin, germany – 18/11/2015...

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