1. Specialty Chemicals and Dyes used in the Apparel and Footwear Industry to watch Restricted Substances Seminar September 21, 2006 Sheraton Hotel, Dongguan, China

2. Outline  The Fate of Chemicals – Reason for Restrictions  Selected Laws & Regulations for the Textile & Leather Industry  Classes of Restricted Substances  Selected examples of Restricted Substances  Azo Dyes  Phthalates  Organic Tin Compounds  Formaldehyde  General Solution/Guideline

3. Chemicals Worker Waste Water Solid Waste Air Chemicals in Textile & Leather Environment The Fate of Chemicals – Reason for Restrictions

4. RISK = EXPOSURE x HAZARD  EXPOSURE: defined by application, composition of textile chemical emission reduction measures, workplace hygiene measures  HAZARD: defined by toxicological/ecological profile The Fate of Chemicals – Reason for Restrictions Strategy to minimize RISK: Avoid Hazard Minimize Exposure

5. Selected Laws & Regulations for the Textile & Leather Industry Council Directive 75/442/EEC TR for Waste Management Air Emission reduction “TA-Luft” VOC Directive 1999/13/EC Formaldehyde - IARC GB/T 18885-2002, GB 18041-2001 German Goods Ordinance EU Directive 2003/11/EC (Flame Retardants) Commission Decision 2004/781/EC (Cd) New Phthalate Directive 2005/84/EC Council Directive 94/27/EC (Ni) Directive 2002/61/EC (Azo Dyes) Waste Water Ordinance – AbwV TEGEWA Voluntary Commitment Directive 2003/53/EC (NPE) Detergent Directive 648/2004/EC Council Directive 76/464/EEC GHS, REACH, Kyoto List Commission Directive 2001/59/EC Directive 2006/15/EC (MAK) White Book on Chemicals Directive 98/8/EC (Biocides) California Proposition 65 etc.

6. Classes of Restricted Substances  Formaldehyde  Heavy Metals  Pesticides  Biological Active Products  Biocides  Monomers  Phthalates  Organic Tin Compounds  Dyes and Amines

7. Classes of Restricted Substances  Halogenated Compounds  Flame Retardants  PVC  APEO  Chlorinated Bleaching Agents  Solvents  Isocyanates  Asbestos  Dioxins and Furans

8. Outline  The Fate of Chemicals – Reason for Restrictions  Selected Laws & Regulations for the Textile & Leather Industry  Classes of Restricted Substances  Selected examples of Restricted Substances  Azo Dyes  Phthalates  Organic Tin Compounds  Formaldehyde  General Solution/Guideline

9. Selected Examples of Restricted Substances Common Sources of Failures in Textile & Leather Processing: - Formaldehyde - Heavy Metals (e.g. Cadmium, Chrome VI, Lead, Nickel) - Organic Tin Compounds - Phthalates - APEO - Dangerous Azo Dyes and Carcinogenic Aryl Amines - etc.

10. Selected Examples of Restricted Substances Common Sources of Failures in Textile & Leather Processing: - Formaldehyde - Heavy Metals (e.g. Cadmium, Chrome VI, Lead, Nickel) - Organic Tin Compounds - Phthalates - APEO - Dangerous Azo Dyes and Carcinogenic Aryl Amines - etc.

11. Azo Dyes – some are dangerous a) Toxicology: Some dyes can have adverse effects on humans, even can cause cancer b) Laws: Council Directive 76/769/EEC and German Ordinance on Materials c) RSL: Aromatic Amines e.g. H&M (30 ppm each) Levis (n.d. DL=30 ppm each) Nike (20 ppm each) d) Sources in Textiles and Leather: - Colorants: Pigments (textile coating) & Dyes Dangerous Dyes e.g. Levis (n.d. DL=5 ppm each) H&M (1 ppm each) Nike (5 ppm each)

12. Azo Dyes – some are dangerous Solution High Colour Fastness (staining) to water, to acidic perspiration, to alkaline perspiration, to dry rubbing Proper selection of dyes "Lists", e.g. Oeko-Tex Standard 100 Recommendations of dye producers and associations (e.g. ETAD) Avoid respective dangerous Azo Dyes, ask for certificates from the chemical supplier. BASF does not manufacture or supply restricted Azo colorants

13. Organic Tin Compounds a) Toxicology: - harmful effects on immune and reproductive system - skin irritation - teratogenic (e.g. for snails) - aqua-toxic b) Laws: banned by Council Directive 91/338/EEC c) RSL: e.g. H&M: e.g. ban of TBT and others Levis: e.g. ban of TBT and others Nike: TBT and/or TPhT

14. Organic Tin Compounds d) Sources in Textiles and Leather: - TBT as catalyst to manufacture polyurethane dispersions (Adhesives based on PU-chemistry) - TBT as biocide for storage - anti-odor agent

15. Organic Tin Compounds Solution Ask for organic tin free solutions from suppliers, ask for certificate. BASF offers organic tin free PU dispersions.

16. Phthalates a) Toxicology: - suspected sex change chemicals - suspected carcinogen b) Laws: EU Directive 2005/84/EC (will take effect from 16 th January 2007) DEHP BBP DBT DINP 0.1% by mass of the plasticized material DIDP in toys and childcare articles which can be DNOP placed in mouth by children 0.1% by mass of the plasticized material in toys and childcare articles

17. Phthalates c) RSL: e.g.H&M: e.g. DINP, DEHP and others Levis: DINP and DEHP Nike: DINP, DEHP and others d) Sources in Textiles and Leather: - plasticizer for PVC Textiles: - plastisol prints - for pigment printing and coating as softener Leather: - PVC mock leather, laminates

18. Phthalates Solution Avoid PVC, ask for certificates from chemical supplier. BASF offers phthalate free solutions in both printing and coating systems BASF's experts can support phase out of phthalates

19. Formaldehyde a)Toxicology: - irritation of skin, eyes and mucous membranes - can cause allergies - Indication of nasopharyngeal carcinogenic effect (IARC classified FAH as “carcinogenic to humans”, June 15 th, 2004) b) Laws: Beside general laws, especially for Textiles: Japan – LAW 112 (n.d.) China – GB 1804-2001 (Oeko Tex Standard 100 limits) c) RSL: Textile: Restrictions often refer to Law 112 or Oeko Tex Standard 100 (kids 20 ppm, adults 75 ppm) Leather: Automotive Industry (VDA): <10 ppm Shoe industry: < 150 ppm (children < 50 ppm)

20. Formaldehyde d) Sources in Textiles and Leather: Textiles: - Binders and fixing agents in pigment printing and coating - Cross-linking agents (non-iron, wrinkle free) - Dyeing auxiliaries, e.g. fixing agents - Preservative Leather: - Tanning auxiliaries and cross linkers - Fixing agents

21. Formaldehyde Solution: e) Solutions: Pay attention to required FAH-Test Method!!!! - Supply free-of or low FAH auxiliaries - Consider an extra-washing step - Follow application suggestion for low FAH levels in garment/leather - Take care of package and other additional FAH-sources BASF offers a wide range of FAH free or low FAH chemicals. Low FAH-recipes are available and examined for textile and leather products.

22. Outline  The Fate of Chemicals – Reason for Restrictions  Selected Laws & Regulations for the Textile & Leather Industry  Classes of Restricted Substances  Selected examples of Restricted Substances  Azo Dyes  Phthalates  Organic Tin Compounds  Formaldehyde  General Solution/Guideline

23. General Solution/Guideline General solution/guideline: Choose right supplier! How can you identify the right supplier?  Knows Laws & Restrictions (and RSL)  Provides correctly labeled Products  Provides SDS  Provides Technical Information sheets and Technical Support  Provides Training and Support on Application, Ecological & Toxicological aspects  etc. More easy: Supplier has committed himself to Sustainable Development

24. General Solution/Guideline Society Ecology Economy Sustainable Development “ Sustainable Development is a process of developing that meets the needs of the present without compromising the ability of future generations to meet their own needs ” (United Nations, Brundtland Report, 1978)

25. BASF – The Chemical Company Earn a premium on our cost of capital Help our customers to be more successful From the best team in industry Ensure sustainable development General Solution/Guideline

26. Thank you for your attention! Jack C. W. Lam Manager Textiles RBU Performance Chemicals Asia Pacific Email: jack.lam@basf.com Tel: +852 2731 1287 Claudia Swoboda-Rossouw Ecology Manager Asia Technical Center, Textiles Email: claudia.swoboda@basf.com Tel: +86 21 58611828-2855 Alfred Lin Industry Manager - Footwear Asia Technical Center, Leather Email:alfred.lin@basf.com Tel: +86 21 58611828-2402