3M plans to end use of PFAS in manufacturing

3M, St. Paul, Minnesota, has announced it plans to 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 company’s decision is based on careful consideration and a thorough evaluation of the evolving external landscape, including multiple factors such as accelerating environmental, social and governance (ESG) trends focused on reducing or eliminating the presence of PFAS in the environment and changing stakeholder expectations, the company says in a news release.

“This is a moment that demands the kind of innovation 3M is known for,” 3M Chairman and CEO Mike Roman says. “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.”

3M plans to end all PFAS manufacturing by the end of 2025, including fluoropolymers, fluorinated fluids and PFAS-based additive products. The firm will help facilitate an orderly transition for customers. 3M intends to fulfill current contractual obligations during the transition period.

The company says it has reduced its use of PFAS over the past three years through ongoing research and development and will continue to innovate new solutions for customers.

With these two actions, 3M is committing to innovate toward a world less dependent upon PFAS. 3M’s products are safe for their intended uses. 3M will continue to remediate PFAS and address litigation by defending itself in court or through negotiated resolutions whenever appropriate.

Financial impact

3M’s current annual net sales of manufactured PFAS are approximately $1.3 billion with estimated EBITDA margins of approximately 16 percent; however, the company says this represents a small portion of its overall revenue. Over the course of the exit from PFAS manufacturing, 3M expects to incur related total pre-tax charges of approximately $1.3 billion to $2.3 billion.

The company expects to take an estimated fourth quarter 2022 pre-tax charge in a range of $700 million to $1 billion, primarily non-cash and related to asset impairments.