3M announced it will exit per- and polyfluoroalkyl substance (PFAS) manufacturing and work to discontinue the use of PFAS across its product portfolio by the end of 2025. The decision was based on multiple factors including accelerating regulatory trends focused on reducing or eliminating the presence of PFAS in the environment and changing stakeholder expectations.
PFAS are used in the manufacturing of many products including medical technologies, semiconductors, batteries, phones, automobiles and airplanes.
3M has plants in Decatur and Guin. The Decatur plant focuses on films and materials, including fluoroplastics and fluoroelastomers. The Guin site focuses on films, but also adhesives, light management, flexible converting and packaging, radiation processing and more. 3M has 40 locations in the United States and plants and labs in 37 countries.
“This is a moment that demands the kind of innovation 3M is known for,” said Mike Roman, 3M chairman and CEO. “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. This action is another example of how we are positioning 3M for continued sustainable growth by optimizing our portfolio, innovating for our customers, and delivering long-term value for our shareholders.”
By the end of 2025, 3M will discontinue manufacturing all fluoropolymers, fluorinated fluids and PFAS-based additive products. 3M intends to fulfill current contractual obligations during the transition period. The current annual net sales of manufactured PFAS at 3M are approximately $1.3 billion.
The company will also discontinue use of PFAS across its product portfolio by the end of 2025. According to the company’s release, this represents a smaller portion of 3M’s overall revenue.
Over the course of the exit from PFAS, 3M expects to incur related total pre-tax charges of approximately $1.3 billion to $2.3 billion, including the fourth quarter 2022 amount in a range of $0.7 billion to $1.0 billion, primarily non-cash and related to asset impairments.
The company plans to innovate new solutions for customers through its research and development departments.