Honeywell hits out at marketing of banned ozone-depleting gases

By Karen Carstens

Date: 20/055/04

A TRANSATLANTIC trade row with green implications that pits multinational heavyweights Honeywell and Solvay against one another could erupt before the summer is up - unless the European Commission plays its cards right.

This, at least, is the view of US industrial giant Honeywell, which manufactures a host of high-tech products including aerospace parts, turbochargers and ultra-strong synthetic fibres.

The potential row involves a 'greener' type of gas used in foam insulation, refrigerants and aerosols that Honeywell created to meet the national and global requirements on slashing production of harmful ozone-depleting substances.

Solvay, the Belgian-based pharma, chemicals and plastics behemoth, has also come up with a similar product to fall into line with a 2000 EU regulation on ozone-depleting substances.

But Honeywell is concerned that Solvay, plus Italy's Atofina, will benefit unfairly if the EU grants both firms an exemption that would let each continue making a more environmentally damaging product.

Honeywell warns in a confidential document seen by European Voice that "a wide range exemption could be perceived as a protectionist measure" and would "seriously damage" its competitive position in the EU market.

Honeywell's Nance Dicciani cautioned it could also make the EU appear less committed to other initiatives in the sector, notably its draft REACH chemicals policy.

"If the European Commission, Parliament and member states were to grant such exemptions by 'pushing out' regulations like this, it begs the question of prudence of compliance of these rules," she said.

"If we don't abide by things as simple as this regulation, then how can we expect REACH to be implemented in a uniform way?"

The ozone-depleting substances, or ODS, regulation' has prohibited the use of hydrochlorofluorocarbons (HCFCs) since the beginning of this year. Honeywell, Solvay and Atofina used to produce such a gas, called HCFC-141b. But the former two have since developed their respective alternatives, HFC365mfc and HFC-245fa.

Meanwhile industry insiders say Atofina still has a big stash of 141b it wants to offload onto the EU market.

The request for an exemption comes from several 'old' EU member states. Insiders claim Solvay and Atofina put pressure on their clients - the old and new gases are both key components of hi-tech 'rigid' insulating foam - to demand an exemption via their national governments.

But Martial Tardy, a Solvay spokesman, said that the request for an exemption was due to "high demand" for the foam in the construction industry that has been exacerbated by a sharp decline in the supply of raw materials needed to manufacture the Solvay 365 gas since the beginning of this year.

Last Friday (14 May) was the deadline for a 'first batch' of applications for exemptions, which the Commission's environment directorate is due to assess by the end of this month.

This will be followed by an interservice consultation with other departments by mid-June.

A final decision is due by mid-July.

US officials indicated yesterday that they will be grilling their EU counterparts if an exemption is granted.

"This issue raises a lot of questions about the kinds of decisions being made on exemptions," said one US official.

"An exemption should only be granted when there is no feasible alternative - but here we have another substance available that's been developed at considerable cost."

Honeywell spent almost a decade developing its alternative gas and built a new plant in Baton Rouge, Louisiana, to make it.

Solvay also built a new plant for its new gas in Tavaux, France.

US company Honeywell and Belgian rival Solvay are at loggerheads over a 'greener' type of gas used in foam insulation, refrigerants and aerosols. Honeywell is concerned that Solvay, and Italian company Atofina, will benefit unfairly if the European Union grants both firms an exemption that would let each continue making a more environmentally damaging product.