Workshop on Hazardous Substances Affecting Metallic-Coated Steel and Other Metals May 23, 2007

Henkel – RoHS Compliant Passivate Discussion Agenda: Position on RoHS Products Discussion Offerings Corrosion performance Field experience References

Henkel Position on RoHS Electrical and electronic equipment (not all end users) Appliances Computers Televisions, video recorders Hexavalent Chromium (CrVI) is critical element for metal passivation treatments listed in RoHS regulation Must contain less than (0.1%) 1000 ppm. Hexavalent chromium or contain no intentionally added hexavalent chromium in any homogeneous layer Henkel position is that passivate coatings do not become a homogeneous layer with substrate, but, the discontinuous layer of the passivate. (IBM agrees with this position). Chromium free products are compliant simply because there is no chrome present Chromium III (trivalent) products are compliant in both the product and as-dried surface since Cr(VI) is below 1000 ppm and no Cr(VI) is intentionally added. Conversion of Cr(III) → Cr(VI) will not happen under “normal” circumstances PH≥14 or extreme oxidation are required Practical basis, Cr(VI) not present during life-cycle of the coated materials.

Hexavalent Chrome-Free Passivation Offerings Three approaches: Non-chrome containing inorganic passivate Trivalent chrome inorganic passivate Thin organic coating non-chrome containing (acrylic coatings)

Hexavalent Chromium Containing Inorganic Passivates: “Chemtreats” Typical coating weight: 1.0 – 2.0 mg/sq.ft. Cr Applied by flood squeegee and dried by hot air dryer Corrosion performance by neutral salt spray (NSS): 96+ Hrs. “Wet” corrosion tests: 800+ Hrs. Low cost, good corrosion prevention “Non-Paintable”

Henkel Passerite 5004 W Chromium-Free Inorganic Passivate Major Coating Constituents Molybdenum Titanium Phosphate Fluoride Organic Polymer

Chrome-Free Inorganic Passivate P-5004 W Chrome-Free Inorganic Passivate Application Bath Concentration 20%-100% (Dependent On Coater) 30% is Typical Run as Flood or Dip/Squeegee or Chemcoater Bath pH: 2.5-3.5 Coating Wts.: 30-80 mg./sq.ft. (50 mg. is recommended) Bath Temperature: <40C (104°F) Strip PMT: 50-60C min., 120C max. (Above 120°F) Drying Time: < 10 seconds recommended

Passerite 6001 / Passerite 6003 / Bonderite 6020 Trivalent Chromium Passivate Application Parameters Spray / squeegee (low bath volume) Chemcoater Contact time: < 10 seconds Bath Temp: < 110°F Coating Weight: 30 – 40 mg./sq.ft. (20 – 30 mg./sq.ft. for B6020) Cr Coating Weight: 3.0 – 4.0 mg./sq.ft. (2.0 – 3.0 for B6020) Bath pH: < 2.5 Zn Dissolution: < 1.8% by weight Bath Concentration: 10 – 60% dependent on flow to line, 20 – 30% is typical Strip PMT: 110°F → 200°F

Recommendations for Designing a System for Hex-Chrome Free Passivates Solution contact time (time between application / drying ) – as short as possible. Less than 5 seconds excellent. Chemcoater best method (spray / squeegee is acceptable) Drying peak metal temp (PMT) - 120°F minimum (220°F max) Equipment materials (contacts solution) – 316 or 304 stainless steel, or polymer (PVC, PEHD or PP) – no carbon steel Wringer rolls – Hypalon, Viton or polyurethane covering – 45 – 55 shore hardness Solution volume – as small as possible – less than 30 gallons – (Henkel “Coiltech” system) Maintain pH below 2.5 – minimize zinc contamination X-Ray fluorescence (Portaspec) recommended for coating weights

Henkel Standard Accelerated Corrosion Tests for Passivation Treatments Neutral Salt Spray (NSS) Wet Stack Cleveland Condensing (CCH) Butler Water Immersion (BWI)

Corrosion Overview – Field Performance Customer Prouduct Used NSS Results Wet Stack BWI Cleveland Condensing 24 48 72 96 A P6001 5 10 20 35+ 800 hrs. 800 hrs.+ 1000 hrs. + B P6003 15 C 40+ D B6020 1 30+ 700 hrs.+ E 10+ F 20+ G P5004W 25+ 1000 hrs.+ H P225W 5+ 700 hrs. 1000 hrs. → Wet Stack, BWI and Cleveland Condensing results are to 5% white rust Coating Wts. (Chrome mg/sq.ft) A - 4.0 - 6.0 B - 4.0 - 6.0 C - 5.0 - 7.0 D - 3.0 - 4.0 E - 3.0 - 4.0 F - 1.0 - 2.5 G – 40 – 60 mg./sq.ft. (total) H – 1.0 – 2.0 mg./ft2 chrome VI

Trivalent Based Passivation – Product Evolution Commentary “Passerite 6001 → Passerite 6003 → Bonderite 6020” Continuous improvement in all of the following: Corrosion performance (NSS) Lower coating weight (lower applied costs) Improved “paintability” Improved conductivity (IBM and HP) Less corrosive to equipment (304 and 316SS) Bonderite 6020 – removal of organics – no foaming Products have become more operator and end-user friendly Next generation product – Bonderite 6010 – “fluoride free” – being tested in Europe

Thin Organic Non-Chrome Coating: (Replacement For Hexavalent Cr Containing Acrylics) Granocoat 342 Primarily Used For Galvalume and HDG Coated Steel Expected Performance: Roll forms without oil Good fingerprint resistance Excellent corrosion performance 180° – 220° F PMT

Non-Chrome Thin Organic Coating: Granocoat 342 Specifications:

Non-Cr Thin Organic Passivate: Application Parameters: Coating Weight: 75-200 mg./sq.ft. PMT: 170° - 250° F Application Method: Chemcoater Concentration: Used Neat Application Temperature: Ambient Recoil Temperature: <160°F

Granocoat 342 (Non-Chrome Acrylic) Summary: Corrosion performance slightly inferior in NSS (HDG) and wet stack (Galvalume) Roll-forming excellent and verified at 9-stage roll former (correlates well with Butler Building roll former) “Paintable” surface In use at Precoat – Portage and CFM for small applications Successful trials at Mittal – Sparrows Point (Galvalume) and Nucor – Berkeley (HDG)

INORGANIC PASSIVATION HEX-CHROME FREE REFERENCES LIST CUSTOMERS

CUSTOMER PRODUCT APPLICATION SUBSTRATE CONTACT TKS EBA1 GERMANY PASSERITE 6003(20% vol) Spray + Squeegee EG Dieter Schrocer +492035223865 VOEST (4 lines) Austria PASSERITE 5004 Rollcoater HDG Franz Androsch +4373265856852 TKS FBA7 Germany PASSERITE 6003(40% Vol) Kurt Motte +492349193492 TKS FBA4 PASSERITE 6003(30% vol) Udo Schulokt +492035227700

CUSTOMER PRODUCT APPLICATION SUBSTRATE CONTACT ACCIAIERIA CREMONA (IT) PASSERITE 6001 (40 to 45%vol) Spray + Squeegee HDG Carlo Lanzini +3903724782 WUPPERMANN (Holland) PASSERITE 5004(40 to 45% vol) Hans G. Klockner +31168357150 CORUS Holland PASSERITE5004(80 to 90% w/w) Chem Coater Thijs Post +31622605651

CUSTOMER PRODUCT APPLICATION SUBSTRATE CONTACT ARCELOR AVILES (Spain) PASSERITE 6001 (40% vol) Coil tech HDG Jose Manuel Puente +34985126137 WHEELING NISSHIN (US) PASSERITE 6001 (100%) Spray + Squeegee + Roll coater GALVANNEAL USS POSCO (US) BONDERITE 6020 (20%) Spray + Squeegee WUPPERMANN (2 lines) (Austria) PASSERITE 5004 Vacuumat Hans Georg Klockner +31168357150 MITTAL SPARROWS PT. MD Rob Weber

CUSTOMER PRODUCT APPLICATION SUBSTRATE CONTACT SSAB BORLANGE (SU) Passerite 6003 (25 to 30% Vol) COIL TECH HDG Mat Eliason +4624372902 MARCEGALIA (Italy) PASSERITE 6001(25to30% w) Spray + Squeegee Mr IVALDI +390544516611 GONVARRI (Spain) PASSERITE 6001(55 to 60%vol) Roll coater + Spray + Squeegee Jacek Michalek +34937734656 NLMK (Russia) PASSERITE 5004(40 to 45%v)

CUSTOMER PRODUCT APPLICATION SUBSTRATE CONTACT Mittal Galati ROMANIA P. 5004 Roll Coater HDG Mr Munteanu +40 722 56 42 48 Arcelor(VZA1) Eisenhuttenstadt P. 6003 (33 to 36% v/v) Spray + Squeegee RUUKI Finland (1) COIL TECH Mr Paavilainen +358205925554 RUUKI Finland (3) Chemcoater

CUSTOMER PRODUCT APPLICATION SUBSTRATE CONTACT JSW - Tarapur Passerite 6000 Spray + Squeegee HDG Rajesh Singh +919371750420 Ispat India Passerite 6001 R.S.Jain +919823320396 Lloyds Steel India P.K.Chatterjee +919326036261 Tata Steel S. Beborta +919234511144

CUSTOMER PRODUCT APPLICATION SUBSTRATE CONTACT JINDAL (India) Passerite 6000 Spray + Squeegee HDG Passerite 6001 Bhusan Steel (India) An Steel (China) Roll Coater

CUSTOMER PRODUCT APPLICATION SUBSTRATE CONTACT Benxi (China) P. 6003 Roll Coater HDG Borcelik (Turkey) Spray + Squeegee

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