Manufacturer 3M will exit the per- and polyfluoroalkyl substance (PFAS) manufacturing market and discontinue its use of PFAS chemicals across its product portfolio by the end of 2025. The company's current annual sales of manufactured PFAS is about $1.3 billion.
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“3M's decision is based on careful consideration and a thorough evaluation of the evolving external landscape, including multiple factors such as accelerating regulatory trends focused on reducing or eliminating the presence of PFAS in the environment and changing stakeholder expectations,” the company said.
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"This is a moment that demands the kind of innovation 3M is known for," added Mike Roman, 3M chairman and CEO.
"While PFAS can be safely made and used, we also see an opportunity to lead in a rapidly evolving external regulatory and business landscape to make the greatest impact for those we serve.
"This action is another example of how we are positioning 3M for continued sustainable growth by optimizing our portfolio, innovating for our customers, and delivering long-term value for our shareholders."
3M says it will:
Exit all PFAS manufacturing by the end of 2025 and discontinue manufacturing all fluoropolymers, fluorinated fluids, and PFAS-based additive products; 3M intends to fulfill current contractual obligations during the transition period.
Work to discontinue use of PFAS across its product portfolio by the end of 2025: 3M has already reduced its use of PFAS over the past three years through ongoing research and development and will continue to innovate new solutions for customers.
“The current annual net sales of manufactured PFAS are approximately $1.3 billion with estimated EBITDA margins of approximately 16%,” 3M said. “In addition, as also noted above, 3M will work to discontinue the use of PFAS across its product portfolio by the end of 2025, which represents a small portion of 3M's overall revenue.”
PFAS are per- and polyfluoroalkyl substances, a group of over 4000 chemicals used in a wide range of applications including paper coating (including for some food packaging), metal plating, photographic materials and fire-fighting foams.
