Merck Advanced FluorosurfactantsA new product line from Merck KGaAA Presentation to the USEPA – April 2010Joe Twitchell Merck KGaA Marketing LeaderAgenda•Long Chain PFC Background•Global FS Market Overview•New Merck Fluorosurfactant Information•Merck Fluorosurfactant Program Status•LVE, PMN Testing GuidanceMerck at a Glance•Merck conducts its operations in two major business sectors –Pharmaceuticals and Chemicals•– Pharmaceuticals: Prescription drugs and consumer health careproducts•– Chemicals: Specialty products for the electronics, coatings,cosmetics, pharmaceutical and biotech industries•32,800 employees in 59 countries•Total Revenues 2008: 7,558 Million Euros•Merck manages its operating activities under theumbrella of Merck KGaA, which was listed on theFrankfurt Stock Exchange in 1995 and admittedto the DAX® in June 2007.•Around 30% of the total capital is publicly traded,while the Merck family, as general partner, indirectlyholds around 70%Pützer Tower and Pyramidat Darmstadt headquartersMerck Is Not The Same As Merck•Merck KGaA and the U.S. pharmaceutical companyMerck & Co. have been two independent companiessince 1917.•Common historical roots:–1891 Merck & Co. founded in New York by Georg Merck, amember of the Merck family–As a consequence of World War I,Merck & Co. was expropriatedand became an independent company.•Today, Merck & Co. holds the rights to the name withinNorth America. Merck operates there as EMD and holdsthe rights to the name Merck in the rest of the world.PFOS, PFOA BackgroundPFOS•PBT Characteristics•Key Component in Fire Fighting Foams•Use Still Allowed In Several Applications•Chrome Plating•Used Because Of Unsatisfactory Substitutes•Strongly Acidic, High Temp Application•“Conventional FS” Degrade QuicklyPFOS, PFOA Background•PBT Issues Much Less Than PFOS•Larger Market Than PFOS•Primary Use Is Fluoropolymer Emulsifier•Only Available Technology For Certain PolymerDispersions•Also A Breakdown Product From OtherFluorochemical Treatments (Textiles, Carpet, etc.)PFOAFluorosurfactant Market•Greater Than 1000 Tons Per Year•Fire Fighting•Polymerization•Electronics•Industrial & Institutional•Coatings•Inks•Adhesives•Chrome Plating•Dominated By C8 Based ChemicalsMerck FluorosurfactantInformation•Merck Has Developed Two FluorosurfactantTechnologies•Short Chain FS For Coatings, Electronics etc. (C4or Less)•PFOS, PFOA ReplacementFor Polymerization AndChrome Plating (bis C4 Phosphinic Acid)Merck FluorosurfactantInformationPFOS Replacement In Chrome Plating (bis C4 PhosphinicAcid)•Lab Results Show Durability, Surface TensionReduction Nearly Equivalent To PFOS•Allows Chrome Platers To Meet Hexavalent ChromeExposure Regulations•Beta Site Testing Underway•Merck Product “Cleaves” To C4 Phosphonic Acid•Very Limited EHS Data Available Now•Seeking Guidance For LVE, PMN Testing RequirementsMerck FluorosurfactantInformationPFOA Replacement For Fluoropolymerization Emulsifier(Mixture Of bis C4 Phosphinic, Phosphonic Acids)•Encouraging Results In Lab Evaluations•Sampling To Select Customers For R&D•Some Producers Now Using PFOA Post CleanupTechnology•Will Use Market Feedback To DetermineCommercialization•Limited EHS Data Available Now•Seeking Guidance For LVE, PMN TestingRequirementsMerck FluorosurfactantInformationConventional C8 FS Replacement•All Major Producers Have Replaced C8 (Or Are InThe Process) With Shorter Perfluoro Chain Products•Many Short Chain Replacements Don’t Match C8•Merck Has Developed C4 Or Less Candidates•Performance Equivalent To C8 In Early Tests•Not All Applications Known Yet•Very Limited EHS Data Available Now•Seeking Guidance For LVE, PMN TestRequirementsFluorosurfactant Program StatusInternal Status At Merck•Technology Patents Applied For•Compositions and Applications•Manufacturing Processes Defined•Product Specifications Being Refined•Production At Small Pilot Scale•Manufacturing Economics Being Optimized•Sampling From Pilot ProductionFluorosurfactant Program Status•With Positive Market Feedback And Beta Tests–Merck Will Begin EHS Testing For LVE•Guidance Requested For Testing Priority–Bis C4 Phosphinic Acid As A PFOS, PFOAReplacement–C2, C3, C4 “Conventional” Fluorosurfactants