| Front page | | Contents | | Previous | | Next |

Deca-BDE and Alternatives in Electrical and Electronic Equipment

6 Overall product chain and industry structure

• 6.1 Manufacturers of flame retardants
• 6.2 Manufacturers of plastic raw materials
• 6.3 Manufacturers of plastic parts
• 6.4 Manufacturing of EE components
• 6.5 Original equipment manufacturers

In order to understand which businesses will be impacted by a ban of Deca-BDE in EEE, the product chain and implicated businesses are briefly described below.

The principal life-cycle stages of Deca-BDE in the EU are shown in Each of these key industry sectors will be discussed briefly below.

Figure 6.1, derived from the draft update of the Deca-BDE Risk Assessment.

The industry sectors associated with the different EEE-related life-cycle stages are:

• Manufacturers of flame retardants;
• Manufacturers of plastic raw materials (resins, master batches and compounds);
• Manufacturers of plastic parts;
• Manufacturers of EE components;
• Manufacturers of EEE (original equipment manufacturers, OEM).

Each of these key industry sectors will be discussed briefly below.

Figure 6.1 Flowchart of the principal life-cycle stages of Deca-BDE in the EU. Boxes with grey shading indicate use of powder. It should be noted that this chart does not include all life-cycle stages (e.g. foam rubber production is missing).
Source: Risk assessment Update draft 2004 [[144]]

6.1 Manufacturers of flame retardants

Brominated flame retardants
According to the Bromine Science and Environmental Forum (BSEF), BFRs are produced mainly by three companies in the following parts of the world [18]:

The three companies all manufacture bromine and a range of brominated compounds as their core business. Overall the three companies account for around 78% of the global bromine production [18]. Bromine is found principally in seawater, salt lakes and underground brines, and the resources are virtually unlimited. All three companies manufacture Deca-BDE. Besides brominated compounds, they also manufacture different halogen-free flame retardants like organo-phosphorous compounds and magnesium hydroxide.

The three companies referred to above are:

Albemarle, a leading global producer of chemicals, with two main business segments, polymer chemicals and fine chemicals. Headquarters in Richmond, Virginia (USA).

Chemtura, resulting from the merger between Crompton Corporation and Great Lakes Chemical Corporation. The company is among the world’s largest producers and marketers of bromine and brominated specialty chemicals. Headquarters in the USA, and production plants in the USA and European countries, such as the United Kingdom and France.

ICL Industrial Products includes the former Dead Sea Bromine Group (DSBG) and Eurobrom. ICL Industrial Products is recognized to be the largest producer of elemental bromine. Headquarters in Beer Sheva, Israel, and installations in Israel, the Netherlands and China.

These three companies jointly formed the European Brominated Flame Retardant Industry Panel (EBFRIP) in the mid-1980’s. The organisation is made up of these three main members, as well as a number of major polymer producers as associate members. Together with Tosoh Corporation, one of Japan’s largest and most diversified chemical companies, the three companies also formed another organisation to promote the interests of the industry, the Bromine Science and Environmental Forum (BSEF), established in 1997.

According to the Minerals Yearbook from the US Geological Survey, 40% to 50% of the consumption of bromine in the USA was used in brominated flame retardants [[145]]. The large BFR manufacturing companies are thus very vulnerable to changes in the demand for BFRs. According to the Minerals Yearbook, the withdrawal of penta-BDE and octa-BDE from the market significantly decreased the demand for bromine: "Between 40% and 50% of domestic demand for bromine is used in FR. Although usage fluctuates along with overall cycles in the economy, assuming sustained economic growth, demand was expected to grow by 4% per year. The ban on and voluntary withdrawal of two PBDE compounds resulted in a decrease in demand for bromine between 2001 and 2004." [145]

The effect on the BFR manufacturing companies of an EU ban on Deca-BDE in EEE will depend heavily on which alternatives will be used. Most likely, the first step in substitution, for many users, will be to use a more expensive alternative BFR. In the short term, in this case, a ban could actually increase sales in this sector, and perhaps even the volume of bromine used, assuming alternative BFRs would require a higher loading. Some users may, however, in the short or medium term, shift to halogen-free alternatives, resulting in a decreased demand for brominated flame retardants. It should be kept in mind that a ban on Deca-BDE in EEE will not by itself drive the market towards the use of non-halogenated FRs. The general resistance to halogenated flame retardants by consumers, NGOs, eco-labels, etc. would probably have a more significant influence in that direction than would a ban on Deca-BDE.

Halogen-free flame retardants
The halogen-free flame retardants that may serve as substitutes for Deca-BDE are, first of all, non-halogen organo-phosphorous FRs (RDP, BDP, TPP), intumescent FR systems based on phosphorous and nitrogen compounds, red phosphorous, melamine cyanurate, melamine polyphosphate, organic phosphinates and magnesium dihydroxide.

The manufacturers of alternatives would clearly be helped by a ban on Deca-BDE in EEE, although the impact in the short term may be moderate.

Flame retardants that may serve as alternatives to Deca-BDE in EEE are manufactured primarily by the following European companies:

Supresta (including the former Akzo Nobel), Netherlands, according to its web-site, is the industry leader in the manufacture, distribution, and service of organo-phosphorous flame retardants, plasticizers, lubricants, fluids, and wetting agents (www.supresta.com). They manufacture a wide range of organo-phosphorous flame retardants including RDP and BDP.

CIBA Speciality Chemicals, Germany, is a global company manufacturing a wide range of chemicals (www.cibasc.com). CIBA is a manufacturer of melamine-based FRs including melamine cyanurate and melamine polyphosphate.

Clariant Corp., Switzerland, according to its web-site, is a global leader in the field of fine and speciality chemicals (www.clariant.com). The Pigments and Additives Division manufactures, among other substances, flame retardants based on organic phosphinates, melamine polyphosphate and red phosphorous.

Nabaltec, Germany, is a medium-sized company that produces high-grade specialty products based on aluminium hydroxide and magnesium hydroxide (www.nabaltec.de).

Italmatch Chemicals S.p.A., Italy, is a relatively small company specialised in the production of phosphorous derivatives (http://www.italmatch.it). Italmatch manufactures red phosphorous, phosphorous melamine derivatives and a new product line based on a low oxidation state of phosphorous.

Martinswerk, Germany, according to its web-site, is the world's major supplier of specialty chemical products based on aluminium hydroxides and oxides (http://www.martinswerk.de/eng/home.htm). In addition to aluminium compounds, they manufacture magnesium hydroxide.

EFRA
The manufacturers of flame retardants have jointly formed the European Flame Retardants Association (EFRA). The association had, by 15 Feb 2006, 15 full members [[146]].

6.2 Manufacturers of plastic raw materials

Plastic resins are manufactured by relatively few large companies in Europe. The resins are mixed with additives (so-called “masterbatches”) to form compounds, which are the raw materials for further processing. Compounding may take place by the resin manufacturer, by specialised compounders or by the company manufacturing the plastic parts.

At European level, manufacturers of resins and compounds are organised in PlasticsEurope, the Association of Plastics Manufacturers (http://www.plasticseurope.org).

Engineering thermoplastics
As regards the engineering thermoplastics market (PA, polyamide, PBT, PC and acetal compounds), according to Applied Market Information Ltd., compounding is dominated by the large resin producers, notably Bayer, Dupont, BASF, GE Plastics and Ticona [[147]]. Only in the polyamide market have independent compounders taken control of a significant share of the supply, estimated at 40% of the tonnage by volume in 2002. For many polyamide compounders, a differentiated product and market positioning is evident, with several dedicated polyamide compounders strategically focusing on niche market sectors that may not be adequately served by the polyamide resin manufacturers. In the PBT and acetal markets, the independents have only a 7% and 5% share, respectively, in 2003.

Of the five main resin suppliers, Bayer[[148]], BASF [[149]], Ticona [[150]] and Dupont [[151]] have specifically stated that their products do not contain PBDEs. As stated by Bayer: "In common with other well-known German plastics manufacturers, we have not used any polybrominated diphenyl ethers (PBDEs) or polybrominated biphenyls (PBBs) in the production of flame retardant plastics since 1989." [148]

Deca-BDE containing compounds are probably produced by some of the smaller independent EU compounders. Therefore, a ban on Deca-BDE may shift this market towards compounds from the major resin/compounds producers.

Polystyrene
The major General-Purpose Polystyrene (GPPS) and High-Impact Polystyrene (HIPS) producers of the world in 2004 were Dow Chemical (2.2 million t), BASF (1.6 million t), Total Petrochemicals (1.4 million t) and NOVA Chemicals (1.0 million t), followed by Chi Mei Corp., Chevron Phillips, Eni Chemical and Shinho Petrochemical (these production volumes exclude expanded polystyrene, EPS/XPS) [[152]].

HIPS supplied in Europe by the two largest European producers of polystyrene, BASF [149] and Total Petrochemicals [54], does not contain Deca-BDE. Deca-BDE containing compounds are probably provided by a number of small and medium-sized compounders. Therefore, a ban on Deca-BDE may shift this market towards compounds from the major resin/compounds producers.

6.3 Manufacturers of plastic parts

This category includes manufacturers of housings and larger structural parts of EEE, and manufacturers of small plastic parts for components.

Whereas the market for compounds is dominated by relatively few large actors, the market for plastic parts is characterized by many small and medium sized firms. The UK Risk Reduction Strategy and Analysis of Advantages and Drawbacks of Octa-BDE [38] provided details of plastics manufacturers in the UK according to a number of size categories (defined by number of employees), as well as the average turnover of the companies within those categories. Of the total 14,540 plastics manufacturers in the UK, 5,260 companies fell within the category of small companies (those with fewer than 50 employees), of which the majority (3,365) were micro-enterprises (0-9 employees). With regard to the situation for the EU as a whole, the study stated that there are 55,000 companies manufacturing rubber and plastics in the EU. Of these companies, the average enterprise size was given as 25 employees.

Figure 6.2 Number of companies and average turnover for manufacture of plastics in the UK [33]

There are no data indicating how many manufacturers of plastic parts may be influenced by a ban on Deca-BDE in EEE. The total consumption of plastics for E&E in Europe in 2000 was 2.67 million tonnes, of which about 1.48 million tons in EEE is covered by the WEEE Directive [[153]]. If it is assumed that half of the consumption of 7,000 tonnes of Deca-BDE (in 2003) was used for this equipment, it can be roughly estimated that 30,000 tonnes of plastics with an average content of 12% Deca-BDE were used for EEE. Under these assumptions, Deca-BDE containing plastics consequently accounted for about 2% of the plastics used in manufacturing of EEE.

For plastic part manufacturers actually using Deca-BDE containing compounds, a Deca-BDE ban may result in research and development costs, as well as the purchase of new moulds and other tools. If Deca-BDE is replaced by other brominated flame retardants, the impact will be small and will mostly imply the use of more expensive compounds.

In particular for large parts like the housings of TV-sets, the original equipment manufacturer (OEM) may use the situation introduced by a ban as an excuse to make a full change to halogen-free housings, and in such a case may also change sub-contractor, selecting one with more experience in, e.g. copolymer moulding.

6.4 Manufacturing of EE components

Connectors, switches, etc.
European manufacturers of connectors, switches, etc. are organised by the Electronic Packaging and Interconnection Association (EPIA), under the umbrella of the European Electronic Component Manufacturers Association (EECA) (http://www.eeca.org/epia.htm and http://www.eeca.org/). In 2004, EPIA covered the electro-mechanical components, which include bare PCB's (printed circuit boards), connectors, connector/cable assemblies, relays, switches, etc.

According to EPIA, "This sector of the electronic components industry has a low barrier to entry; i.e. small scale companies are both possible and viable, entry costs are relatively low and technology is not overwhelmingly demanding. Therefore, this sector of the industry consists of many more companies than the other sectors within EECA. Typically, the companies are relatively small and many of the products are tailored to the needs of specific customers or even specific customer products. However, there are also many standard products produced by the sector with many end-uses and customers." [[154]]

The number of companies operating within the sector is not indicated.

Cables
National associations of cable manufacturers are collectively members of The European Confederation of National Associations of Manufacturers of Insulated Wire and Cable, known as Eurocable (http://www.europacable.com). Eurocable represents approximately 90% of the European industry and, through National Associations, more than 200 individual cable manufacturers. It is not indicated how many of these produce wires and cables for EEE, but "information cables" represented in 2004 a production turnover of € 2.3 billion, of a total of € 10.8 billion for the whole sector [[155]].

The manufacturers of electronic components and cables are obliged to respond to the requirements of the manufacturers of finished EE products. If Deca-BDE is banned, the market may shift to suppliers who have already replaced this compound. If Deca-BDE is replaced by other brominated flame retardants, however, the impact may be assumed to be small, and will mostly imply the use of more expensive compounds.

6.5 Original equipment manufacturers

At European level, manufacturers of electrical and electronic equipment are organised in the Liasion Group of the European Mechanical, Electrical, Electronic and Metalworking Industries, ORGALIME (http://www.orgalime.org).

The distribution of EEE production within the EU by the various EE sub-sectors is indicated in the figure below. The total value of the production in 2005 was 511.6 billion € [[156]].

Figure 6.3 ORGALIME Electrical and electronic industry production (Nace codes 29.7, 30 to 33) by sector - 23 member countries. Percentages of total turnover in euros [[157]]

Click here to see the Figure.

According to a survey of the Association of Plastics Manufacturers in Europe (now PlasticsEurope) published in 2000 [153] about 12 percent of all plastics used in the EE sector contained flame retardants. The percentage of plastics treated with FRs ranged from 65% in IT & Telecommunication to 1% in large household appliances (see Table 6.1).

As estimated in section 6.3, Deca-BDE containing plastics probably accounted for about 2% of the plastics used in manufacturing of EEE in Europe, but it is based at the present information not possible to point out exactly which sectors would be most affected by a ban of Deca-BDE (e.g. contacts) as consumption figures by sector is not available, and components containing Deca-BDE in principle may be used in any electrical or electronic appliance.

Table 6.1 Percentage of plastics treated with flame retardants in EEE produced in Europe (about 2000) [153]

As indicated by the fact that a number of major manufacturers of EEE, representing a wide range of EEE, do not use Deca-BDE, the availability of Deca-BDE free components seems not to be a barrier for the manufacturing of Deca-BDE free final equipment although the price of the components may be higher.

The most impacted of the original equipment manufacturers will be manufacturers of equipment in which Deca-BDE is present in casings and other structural part designed specifically for the equipment in question. In particularly manufacturers of equipment for the low price market segment, with a strong competition on the price, may be impacted by the higher price of plastic parts with Deca-BDE alternatives

| Front page | | Contents | | Previous | | Next | | Top |

Version 1.0 February 2007, © Danish Environmental Protection Agency