1. REACH, Solvent Legislation and its implications Jon Anderson Development Chemist Camberley 8 th July 2008

2. Overview REACH – what is it? Timelines for implementation Solvent legislation Implications Solutions – silicones, water based and UV curable Issues with the new technology Summary

3. Overview of REACH Regulation, Evaluation, Authorisation and Restriction of Chemical Substances. REACH entered into force on 1 June 2007 Replaces EINECS (European Inventory of Existing Chemical Substances)

4. Timeline for the implementation of REACH June 2008: European Chemicals Agency becomes operational. June 2008 to November 2008: Pre-registration of phase-in substances. (any substances not pre-registered will be subject to full testing before being allowed onto the market) Applies to all substances manufactured or imported in quantities > 1 tonne per year. November 2010: Registration deadline for substances in quantities of 1000 tonnes and above as well as carcinogens, mutagens and substances toxic to reproduction (CMR category 1 and 2) above 1 tonne/year and substances classified as very toxic to aquatic organisms (R50/53) above 100 tonnes. May 2013: Registration deadline for substances in quantities of 100 tonnes and more. May 2018: Registration deadline for substances in quantities of 1 tonne and more.

5. Some definitions –Substance : a chemical element, manufactured or in the natural state. –Preparation : a mixture or solution composed of two or more substances. –Manufacturer : a company that manufactures substances. –Downstream user (1) : companies that use substances to make preparations. –Downstream user (2) : companies that utilise preparations in their products.

6. How does it work

7. HumiSeal Implementation Plan Make sure we are fully informed by monitoring the emerging guidelines. By 1st December 2008 have issued REACH compliant MSDS to all clients currently using our conformal coatings. Ensure that our raw material suppliers have : Pre-registered all products supplied to us, coming under REACH by November 2008. That all products are registered by the deadlines of : November 2010 > 1000 tonnes, June 2013 >100 tonnes and June 2018 > 1 tonne. Work with our clients on all aspects of REACH relating to HumiSeal conformal coatings. Continue development of environmentally safe products that do not require registration under REACH.

8. Alongside REACH there has also been VOC legislation in recent years

9. Background Solvents historically used for conformal coating – many benefits New Solvent Emissions Directive Need to find solvent-free solutions What are the impacts of the new technology

10. What are the VOC controls? –Reduced solvents –ISO 14000 –Improved environment with less pollution –Low or no tax

11. Conformal Coating - What’s New? Insurance Liability –Increased risk in processing hazardous or flammable solvents Employer liability –Operator safety –Long term health risks

12. VOC controls Emission of VOC compounds into air, soil, water any organic compound having at 293.15 K a vapour pressure of 0.01kPa or more (i.e. any solvent with bp < 250°C) Organic compound shall mean any compound containing Carbon and at least one or more of hydrogen, halogens, oxygen, sulphur, phosphorous silicon or nitrogen

13. –Solventless - Using UV curing technology, coatings with no solvents (100% solids) –Water based - Emulsions using AR and UR hydrophobic polymers Solutions

14. Solventless - UV –Since 1995 –NO SOLVENTS! –UL & MIL Spec approvals –High speed curing in seconds UV curable coating

15. Solventless UV - Issues: –Flexibility, prone to cracking during T shock testing –Curing in shadows areas under components (often >72 hours) –Difficult to rework –Requires more sophisticated process plant –Properties from primary and secondary curing mechanisms may differ Conformal Coating - What’s New?

16. HumiSeal UV40 Reliable secondary moisture cure mechanism < 48 hrs Extremely flexible (-40 to 150C) Easily selectively coated Extremely Chemical resistant High Temperature resistance (150C constant) Rework cleanly with soldering iron

17. –emulsions of hydrophobic polymers -> no affinity for water –HumiSeal 1H2O series (excellent hydrolytic stability). –Proven formulations for use on: Dip Coating Systems Spray Coating Systems Water based

18. –MIL Spec Qualified –UL Approved –Non-flammable –Safer to use –Reduced fume extraction demands Water based

19. New formulations have excellent high temperature performance to 200 0 C Superior flexibility Repairable Fast curing <30 minutes at room temperature Water based

20. –Developed for automotive industry –Ideal for Ultrasonic selective coating –Improved dielectric properties –Improved water-resistance –Increased adhesion –Easier to Rework –~30% lower price –Looks more like 1B31/1B73 Example - 1H2OAR3

21. Implications of change – moving away from solvents Solvents historically used reduce viscosity to facilitate application enable rapid drying Evaporation of solvent yields thin films clean the substrate give good wetting hide many cleanliness issues

22. Implications of change So solvents are mostly a good thing for coating application, but bad for environment Successful implementation of solvent-free coatings is possible – often see improved performance. Water-based works well

23. Implications whichever route you take Thicker films – not necessarily a bad thing! Curing can be an issue with thicker films Solvent-less products more prone to de- wetting Cleanliness becomes much more important Cleaning will probably become normal No direct solvent-free replacement –Water-based is closest

24. Summary REACH will being to ramp up very soon (before 2009!) It will impact all areas of the chemical industry VOC controls will lead further drives away from solvent based coating New coating technologies must be developed to counter this: Humiseal UV40 and AR3 are the solution to meet those legislation

25. Any questions?