Houghton REACH Presentation

REACH GETTING READY FOR JUNE 2018 MANCHESTER • 22 MAY 2017 Mervyn Chung-Fat, Marketing Director EMEA

WHAT IS REACH? REACH is the European Regulation for: Registration, Evaluation, Authorisation and Restriction of Chemicals • For the Protection of Human Health and the Environment • Adopted by all 31 countries within the European Economic Area (EEA) • Register all substances by the volume used • Evaluate the risk for health and the environment by numerous lab tests depending on the volume and exposure of humans to the substance • Authorize use of dangerous chemical under specific conditions to keep safe those that will be exposed

CHANGING THE WHOLE CHEMISTRY INDUSTRY

WHAT HAS TO BE REGISTERED? ®

MATERIAL X SUBSTANCE A

SUBSTANCE B

SUBSTANCE C

®

®

®

VOLUME + USES

TOXICITY TESTING ANNEX VII – 10t

ANNEX VIII – 10-100t

Cost: 75k euro ~175K • Time: ~?months

Cost: 225k euro ~475K • Time: ~?months

USE SCENARIOS Scenario E – Handling and dilution of metalworking fluid concentrates

Add concentrate to water

Sample solution Test concentration

Equipment cleaning and maintenance

Disposal of waste and used containers

Material Storage

YOU ARE RESPONSIBLE TO INFORM YOUR SUPPLIERS IF YOU USE DIFFERENTLY THAN SPECIFIED

RISK OF NON-COMPLIANCE (IN EEA) Non-compliant products cannot be sold after May 31, 2018.

PRODUCTION STOPPAGE

Use of non-compliant products can lead to closure of establishment

FINES

Fine for non-compliance vary by country; going up to 55M€ in Belgium and unlimited in the UK

Source: http://ec.europa.eu/environment/chemicals/reach/pdf/report_reach_penalties.pdf

CRIMINAL CHARGES

Companies can face criminal charges. Prison sanctions from 6 months to 5 years

HOUGHTON REACH SITUATION TODAY Assessment with Available Raw Material Information 7%

5% 11%

Finished Products

Based on 2016 Volume

REACH Compliant

28%

Expected Compliance Register/Reformulate

49%

Under Review Stopping

HOW ARE WE COMMUNICATING WITH CUSTOMERS?

TAKE AWAY

• Many raw materials are disappearing because of REACH • Cost of registration significantly increasing as we approach 2018 • More pre-registered materials are expected to disappear • Review all your chemicals availability for the future • Houghton is on plan to be REACH ready. Are you?

BE READY HOUGHTON!

Thank you. Any questions?