Document K2mej9n7v9vO9yzGy295vM4K

Positively Innovative Confidential 2019 2019 PTFE micro powders (HEROLUB) HEROFLON S.p.A. Confidential HEROFLON - Joined the Daikin group in 2017 - Is a leading Italian company processing fluoropolymers and technical compounds with 30 years of experience - Has been established in 1986 as start-up of the production of PTFE micro powders - Has 3 subsidiaries in Italy and sales offices in Brazil and USA Business ranges 1) Heroflon virgin PTFE 2) HEROCOMP PTFE Compounds 3) HEROLUB PTFE micro powders 4) HEROMELT PEEK and special products 5) HEROMELT fluoro-master batchs 6) Heroflon Repro PTFE PTFE micro powder business for HEROFLON Sales 2017 (Qty) 625 MT (Amt) 8.8MM EURO HEROLUB 24 % Others 76 % HEROFLON business in 2017 2 HEROLUB Production steps Confidential Preparation Heroflon Italy purchases various types of PTFE powders (fine, molding, off-spec). These are put in sealed metal Stoencodnptroawcdtoerrs containers (30-50kg / container) Irradiate Irradiation treatment at 25 up to 400 kGy Send powders back to Heroflon Done by external company (contractor) under closed system Milling Adjust particle size by air jet mill. Packaging Finished products are packed in 25kg/carton Shipping Irradiation contractors Confidential 1) Synergy Health Dniken AG, a STERIS Company Hogenweidstrasse 6 CH-4658 Dniken Switzerland 2) STERIS S.p.A. Via Ca' Bertoncina 29 Seriate 24068 Italy Site Switzerland Italy Total Treatment quantity 2017 (MT) 230 180 410 4 Electromagnetic irradiation Confidential HEROLUB is a PTFE micro powder with a range of particle sizes from a few microns to several hundred microns. C9-C14 substances are NOT used for producing HEROLUB. However, during Electromagnetic irradiation, C9-C14 PFCAs may be generated and ultimately present in the resulting PTFE micro powder. 5 Mechanism of PFOA generation during irradiation Confidential PTFE Molecular weight (M.W.): Several million According to THE JOURNAL OF CHEMICAL PHYSICS VOLUME 46, NUMBER 10 15MAY 1967, the yield of the chain radical (*1) is 10 times that of the propagating radical (*2) . *1 *2 PTFE micro powder M.W. : Several hundreds of thousands When PTFE decomposes by receiving irradiation to decrease molecular weight, some carboxylic acid is generated, being PFOA as well as other C9-C14 substances. +H2O O C CF2 HO Carboxylic acid (PFOA) Ref. K. Lunkwitz et al./ Journal of Fluorine Chemistry 125 (2004) 863-873 6 HEROLUB applications and markets Confidential HEROLUB's applications PTFE micro powder is added into various matrix materials to reduce surface friction and wear. It reduces or avoids the need for lubrication of the finished components, both injection molded or extruded. Sliding materials: additives to synthetic oils & greases, thermoplastics, elastomers, inks, painting Thickening materials: additives to fluorinated oils HEROLUB's main downstream markets Automotive, Industrial machinery Semi-conductors/Electronics Printing, Paints 7 Application of PTFE micro powder Confidential Typical Application of Lubricating Grease with PTFE micro powder Automotive Food processing Pharmaceutical processing machines Body & exterior Drive train High temperature use Valves and fittings Blister packaging machine Coater, fluidised bed system Filling machine (for liquids) Speciality lubricants Door lock cylinder Sliding door - spindle drive Roller shade - axle and guides Wash water pump seals Headlight telescope washer - seal Steering angle sensor Idle speed actuator Fuel line connectors Rolling bearings and linear guides Assembly paste for maintenance Beverage valves and fittings Beverage valves and fittings in sterile environments Beverage, drinking water and heating valves Sanitary beverage and heating valves Deep-drawing unit, film-sealing unit and elevation guides near the heated plates unit Seals (e.g. O-rings) of the spray nozzle Seals, O-rings for filler heads Seal lubrication under hygienic conditions 8 Derogation for C9-C14 PFCAs Confidential Daikin would need a company- specific exemption for the impurities of C9-C14 substances during the production of PTFE micro powder. `a 5-year exemption for the production, use and placing on the market of PTFE micro powder produced by Electromagnetic irradiation up to 400 kGy with concentration limit of 1000 ppb for the sum of C9-C14 PFAS' 9