3M to exit manufacturing of PFAS by end of 2025

ST. PAUL, Minn.—3M has plans to discontinue manufacturing PFAS and stop using the materials across its product portfolio by the end of 2025, as the regulatory climate for the chemical is changing rapidly.

The St. Paul-based firm said in a recent news release that its decision to stop using the per- and polyfluoroalkyl substances was "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."

PFAS materials are critical in the manufacture of many products, including medical technologies, semiconductors, batteries, phones, automobiles, and airplanes. While 3M contends in its release that its products are safe for its intended uses, it is committed to working toward an industry that is less dependent on the chemicals.

3M said its plan includes:

• Discontinuation of all fluropolymers, fluorinated fluids and PFAS-based additive products. The firm said it will help facilitate an orderly transition for customers and that it will fulfill all of its contractual obligations during the transition period.
• In looking to discontinue use of PFAS across its product lines, 3M said it has reduced its use of PFAS over the last three years through research and development initiatives, and that it will continue to seek new solutions for customers.

The company added, however, that it will address litigation by defending itself in court or through negotiated resolutions, as appropriate.

"This is a moment that demands the kind of innovation 3M is known for," Mike Roman, 3M chairman and CEO, said in a statement. "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."

From a financial standpoint, 3M said its annual net sales of manufactured PFAS for 2022 was about $1.4 billion—out of total 3M revenues of $34.2 billion—with estimated EBITDA margins of 16 percent. Over the course of the exit from PFAS manufacturing, 3M said it expects to incur total pre-tax charges of about $1.3 billion to $2.3 billion, with about 70-80 percent of that to be non-cash. For its 2022 results, 3M took a pre-tax charge of $1.15 a share related to PFAS, according to its year-end financial report.

3M has made additional details regarding PFAS available on its website at 3M.com/PFAS.

PFAS has been making headlines in recent weeks.

On Feb. 1, Illinois Attorney General Kwame Raoul filed suits against 14 firms, claiming they promoted the "so-called fluorinated forever chemicals" as safe while being aware of environmental contamination risks.

Companies named in the suit included 3M Corp., Dyneon L.L.C. (now a brand sold by 3M), Arkema Inc., BASF Corp., Clariant Corp., Bayer Corp., Chemours, DowDuPont Inc., Daikin America Inc. and Solvay Specialty Polymers USA L.L.C., among others.

On Jan. 30, Asahi Kasei Plastics North America Inc. settled a lawsuit brought by Michigan Attorney General Dana Nessel. Asahi is required under the terms of the settlement to investigate and remediate contamination from the chemicals around its former compounding plant in Brighton, Mich.

It's the first settlement of 17 PFAS lawsuits Nessel brought against several companies in 2020. Nessel's office said additional lawsuits are proceeding in six separate cases. Lawsuits against 3M, Chemguard and DuPont are part of larger litigation in federal courts, while others are being litigated in Michigan courts.