Environmental Report 2007 Site Breitenwang / Reutte

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2 1. Introduction The companies of the Plansee Group at the site Breitenwang/Reutte (hereinafter called Plansee) are situated in an intact Alpine scenery, that also is partially used for agriculture as well as for tourism. Environmentally friendly manufacturing processes are a matter of particular concern for us and are laid down in the corporate values of the PLANSEE HPM Group and the CERATIZIT Group: We take care of the environment which is entrusted to us - We must make sparing use of scarce resources. - We are committed to our responsibility for the environment and treat it with care by continuously improving our production processes and making them safer. - We maintain an open and objective dialogue with the general public regarding problems that occur and measures we take to solve them. Our environment counts - Environmental protection is a matter of each employee at home and at work. - As company we guarantee to be a considerate neighbour. We take on our responsibility by - having installed an Environmental Management System according to ISO evaluating regularly our environmental impact - setting environmental targets annually - planning and implementing environmental programmes in order to achieve these targets With this environmental report we document the results of these efforts. 2. General information on the site Breitenwang/Reutte Following companies of the Plansee Group are residing at the site Breitenwang/Reutte: PLANSEE SE - Holding company of the division High Performance Materials - Comprises all central service units: Innovation Services, Human Resources, Strategic Purchasing, IT, Central Technical Services, Marketing International, Controlling, Finances and Accounting, QSE-Management, Legal Services - Employees: apx. 600 PLANSEE Metall GmbH - Biggest subsidiary of PLANSEE SE - Comprises development, production and sales of products made of refractory metals - Employees: apx. 900 CERATIZIT Austria Gesellschaft m. b. H. - Subsidiary of CERATIZIT S.A. at Mamer, Luxembourg - Comprises development, production and sales of hard metals - Employees: apx

3 3. Environmental Management Plansee installed and continuously maintains a Quality-Safety-Environment-Management-System. The Environmental-Management-System complies with the requirements of the prevailing environmental regulations and is adapted towards the environmental management standard ISO The Environmental Management System is not certified. 4. Production processes 4.1. PLANSEE Metall GmbH Raw materials Metal oxides (e.g. MoO 3 ), alloy additions Reduction Pressing Sintering Thermo mechanical forming Metal oxides are reduced with hydrogen to metal powders. These are mixed with alloy additions to ready to press powders Metallic powders are compacted to parts with chalk-like consistency by mechanical pressing Pressed parts are sintered to compact metallic parts at temperatures slightly below the melting point Sintered parts are formed to semi-finished parts (sheets, ribbons, rods, wires) by forging, rolling, extruding with appropriate pre- and intermediate annealing Mechanical processing Semi-finished parts are processed to complex finished parts by turning, milling, grinding, etc. Chemical surface treatment Semi-finished and finished parts are chemically cleaned and electrochemically machined respectively Products Semi-finished and finished parts made of refractory metals 03

4 4.2. CERATIZIT Austria Gesellschaft m.b.h. Raw materials Powder preparation Pressing Forming Sintering Mechanical processing Coating Products Tungsten carbide, binder metals (e.g. cobalt), alloy additions, wax Tungsten carbide is mixed with binder metals, alloy additions and wax and converted by spray-drying into ready to press hard metal granulate Hard metal granulate is compacted into parts with chalklike consistency by mechanical pressing When required, near-net-shaped blanks are formed out of pressed parts by mechanical processing Pressed and formed parts respectively are sintered to dense hard metal parts at temperatures slightly beyond the melting point of the binder metals Sintered blanks are formed to the specific final geometry by grinding When required, finished hard metal products can be provided with wear resistant coatings Hard metal products for wear- and cutting applications 04

5 5. Environmental impact of our activities 5.1. Overview Raw materials Products Customers Supplies Waste material Return Waste Disposer Water Waste water Communal Sewage plant Industry Recipient Energy Breitenwang / Reutte Waste heat Air emissions Mo-oxide Grass We put raw materials, supplies, water and energy into our processes in order to produce high-quality powder metallurgical products. In addition to the products waste material, waste water, air emissions and waste heat accrue. The impact of these products on the environment is described in the following subchapters: - Material consumption - Energy consumption - Water consumption - Greenhouse gas emissions - Emissions of ozone depleting substances, acetone, NOx and SOx - Emissions of molybdenum oxide - Industrial waste water emissions - Waste material - Environmental incidents The individual subchapters are organized as follows: - Short description of the environmental figure - Objective - Graphical presentation of the particular parameter s developing during the last 4 years (fiscal years, beginning: March 1st) and comment of the developing - Summary of the implemented and planned improvement measures - no need for action need for action, under control need for action, not under control 05

6 5.2. Material consumption At the site Breitenwang/Reutte different raw materials (metal oxides, metal carbides, metals) are processed powder metallurgically. The main raw materials are molybdenum oxide and tungsten carbide. The consumption of these materials is indicated as: - Absolute material consumption: kg of used raw materials, standardized to the year Specific material consumption: ratio of the used raw material quantity to the quantity of finished products. Maintain the specific material consumption to the level of Fig. 5.2.: Development of the absolute and specific material consumption ,4 2,5 kg, standardized to ,2 0,8 0,6 0,4 0, ,0 1,5 0,5 kg raw material / kg product Absolute m-consumption Specific m-consumption The absolute material consumption increased by 23% from 2003 to 2006, whereas the specific material consumption remained constant during this period. - Process optimizing projects Operational Excellence : Hard metal recycling (see 5.9.): 2007 no need for action 06

7 5.3. Energy consumption Due to the specific properties of our materials (high melting point) many of our production processes are particularly energy-intensive (see 4). Today we use as primary energy forms: - electric current - natural gas In the past we also applied heavy fuel oil, propane and hydrogen as primary energy sources. Energy consumption is indicated as: - Absolute energy consumption: kwh of the used primary energy, standardized to the year Specific energy consumption: kwh used energy per kg finished product. Maintain the specific energy consumption to the level of Fig. 5.3.: Development of the absolute and specific energy consumption ,2 90 kwh, standardized to ,8 0,6 0,4 0, kwh / kg product Absolute e-consumption Specific e-consumption The absolute energy consumption increased by 3% in the period , whereas the specific energy consumption dropped by 16% in the same period. - Conversion of the hydrogen production from electrolysis to steam-reforming: Use of natural gas burners for thermal processes: as from Energy efficiency projects in production: planned as from 2007 no need for action 07

8 5.4. Water consumption The high-temperature processes of our production require efficient cooling. We mainly consume water in the form of cooling water which we extract from the ground water by means of company-owned wells. After its use we discharge this water into the recipient. The compliance with the temperature limit of 30 C is continually monitored at the discharge point. Aside from the cooling comparatively minor quantities of water are used for rinsing purposes. The water required for domestic purposes (toilets, kitchen) is taken from the communal drinking water net and discharged into the communal sewage plant after use. The water consumption is indicated as: - Absolute water consumption: m 3 of used industrial water, standardized to the year Specific water consumption: m 3 of used water per kg finished product Maintain the specific water consumption to the level of Abb. 5.4.: Absolute and specific water consumption ,2 1,8 m 3, standardized to ,8 0,6 0,4 0, ,6 1,4 1,2 0,8 0,6 0,4 0,2 m 3 / kg product Absolute w-consumption Specific w-consumption The absolute water consumption dropped by 10% in the period from 2003 to 2006, whereas the specific water consumption dropped by 26%. - Closed-circuit cooling plants for high-temperature furnaces at all new projects. no need for action 08

9 5.5. Greenhouse gas emissions During the combustion of fossil fuels CO2 is released as greenhouse gas. Natural gas is used as fuel for high temperature processes and for space heating. Up to 2006 oil as well as natural gas was used for heating purposes. The electric current used is to an extent of approx. 80% produced by means of fossil fuels. Thus this also results in CO2 emissions. The greenhouse gas emissions are indicated as: - Absolute CO2 -emissions: kg of emitted CO2, standardized to the year Specific CO2 -emissions: kg of emitted CO2 per kg finished product. Maintain the specific CO2-emissions to the level of Fig. 5.5.: Absolute and specific CO2-emissions ,2 16 kg CO2, standardized to ,8 0,6 0,4 0, kg CO2 / kg product Absolute CO2-emissions Specific CO2-emissions The absolute CO2-emissions dropped by 3% in the period from 2003 to 2006, whereas the specific CO2-emissions dropped by 20%. - No additional measures scheduled. no need for action 09

10 5.6. Emissions of ozone depleting substances, acetone, NOx and SOx Up to 1991 perfluorethylene and other fully halogenated hydrocarbons were used for cleaning and drying purposes in the production. In 1991 all processes were changed, so that since 1991 no ozone depleting substances have been used. Up to 2001 acetone was used as spray-drying agent for the production of hard metal granulates. During the production process, acetone was emitted to the ambient air. CERATIZIT developed a water-based spray-drying process and changed all production facilities to this process in Thus, since 2002 no acetone emits. NOx and SOx emit during the combustion of natural gas and oil. As the electric current is partly produced from fossil fuels, it also contributes to the NOx-emissions. The emissions of NOx and SOx are indicated as absolute values: - NOx-emissions: kg of emitted NOx, standardized to the year SOx-emissions: kg of emitted SOx, standardized to the year Maintain the NOx-emissions to the level of 2006, no SOx-emissions. Fig. 5.6.: NOx- and SOx-emissions ,2 kg, standardized to ,8 0,6 0,4 0,2 NOx SOx The NOx-emissions dropped by 44% in the period The SOx-emissions have been zero since 2005 as the heating was changed from heavy fuel oil to sulphur-free natural gas. - Replacement of all fully halogenated hydrocarbons Conversion of the hard metal spray-drying from acetone to water Conversion of the heating from heavy fuel oil to natural gas 2004 no need for action 10

11 5.7. Emission of molybdenum oxide During thermo-mechanically processing (rolling, forging, drawing) of molybdenum an oxide (MoO 3 ), which sublimates at the working temperatures, evolves. If the sublimate has gotten into the ambient air, it is deposited on the soil and is absorbed by the plants. In this way it gets into the metabolism of animals. Problems: Molybdenum causes a metabolic disease known as molybdenosis with ruminates (cows and sheep). In fact it is a copper deficiency disease because molybdenum blocks copper in the digestive process of ruminates. Beyond that no toxic effects are known for molybdenum. On the contrary, molybdenum is necessary as essential trace element for plants, animals and human beings. Besides the problem of molybdenosis, high molybdenum concentrations in animal feed result in excessive molybdenum values in milk. The Mo-emissions are calculated from dust precipitation monitoring (Bergerhoff method according to VDI 2119) at 6 permanent monitoring points. They are indicated as: - Absolute Mo-emissions: kg of emitted Mo, standardized to the year Specific Mo-emissions: g of emitted Mo per t finished Mo product. Maintain the specific Mo-emissions to the level of Prevention of animal diseases and exceeding of the Mo-guideline values in milk by means of specific feed exchange. Fig. 5.7.: Absolute and specific Mo-emissions kg Mo, standardized to ,0 1,8 1,6 1,4 1,2 0,8 0,6 0,4 0, g Mo / t Mo-product Absolute Mo-emissions Specific Mo-emissions The absolute Mo-emissions increased by 80% in the period from , whereas the specific Mo-emissions only increased by 29%. - Programme: Common future for agriculture and Mo-production since 1995 need for action, under control 11

12 Programme: Common future for agriculture and Mo-production Because of the contamination of the agricultural land near the factory site, cows and sheep time and again fell ill (molybdenosis) and the intervention limits for molybdenum in milk (0.4 mg/kg) were exceeded in the past. In the years 1995 to 2000, the reasons for the Mo-concentration in the area of Reutte were analyzed in a project of Plansee together with experts of the Tyrolean provincial government. They then determined appropriate counteractive measures. In 2000 this project was transferred to the long-term programme Common future for agriculture and Mo-production. Objectives of the programme: - Continuous monitoring of Mo in dust precipitation, soil, grass and milk - Elaboration of measures for the reduction of Mo-emissions - Removal of contaminated grass from the feed cycle - Procurement of unpolluted feed substitution for the farmers concerned - Information of the farmers concerned and the policy makers Plansee Molybdenum M Measures: - Exhausting equipment with filters - Low pressure in production halls - Monitoring dust precipitation Soil M M - Monitoring soil - Monitoring grass Grass Compost - Composting of contaminated grass Cow Fresh feed - Procurement of unpolluted feed Milk M - Monitoring milk Fig The co-operation of Plansee (monitoring, substitution of feed) with the farmers concerned (feed management) enables the further farming without serious problems and this in spite of increasing molybdenum production. 12

13 5.8. Industrial waste water emissions Our metals (Mo, W, Co) as well as inorganic chemicals (acids and bases), which are e.g. used for surface treatment, and a variety of impurities get into the industrial waste water. The waste waters with possible emission emerging from the production facilities are treated in directly affiliated decentralised sewage treatment plants. After examination whether the specified emission limit values are kept, the treated waste water is let into the recipient through the industrial waste water channel. A waste water monitoring station is located immediately before the discharge in the recipient. This monitoring station continually measures and records the ph-value and the temperature. At this station reference samples are automatically half-hourly taken in order to enable later detailed analyses in case of an incident. The emissions of individual parameters (e.g. Mo, W) are measured at the decentralised waste water treatment plants. The ph-value is monitored for the surveillance of the recipient and is indicated as: - ph-value compliance: in % of the waste water discharging time. 80% compliance of the waste water discharging time acc. to 7 par. 2 fig. 4 General Waste Water Order. Fig. 5.8.: ph-value compliance % waste water discharging time ph-value compliance in % Limit The limit for the ph-value is met in more than 99.6% of the time and is with this far beyond the legally required 80%. - Elimination of toxic substances (Na-nitrite, chromic acid) by process-change Development and construction of a waste water treatment plant for the pickling plant Installation of decentralised waste water treatment plants ongoing projects no need for action 13

14 5.9. Waste material Following waste types arise with our production processes: - Metal returns - Recyclable waste (paper, glass) - Hazardous waste - Industrial waste - Domestic waste Metal returns are sold as by-products. In 2006 a hard metal recycling plant was put into operation which processes the hard metal scrap in a way that it can be reused in the production (for further details see 5.9.1). The remaining waste is collected and separated due to its composition and disposed by a licensed waste disposal company according to regulatory requirements. Hazardous waste is indicated as: - Absolute hazardous waste: kg of hazardous waste, standardized to the year Specific hazardous waste: kg of hazardous waste per metric tonne finished product. Maintain the specific hazardous waste to the level of Fig. 5.9.: Amount of hazardous waste in the period kg, standardized to ,4 1,2 0,8 0,6 0,4 0, ,50 0,45 0,40 0,35 0,30 0,25 0,20 0,15 0, kg waste / t product Absolute hazardous waste Specific hazardous waste The absolute amount of hazardous waste increased by 18% in the period , whereas the specific value related to the production volume decreased by 15%. - Process optimizing projects Operational Excellence : Hard metal recycling: Optimization of waste separation: 2007 no need for action 14

15 Hard metal recycling Depending on the type of scrap two different process routes are applied: Hard scrap recycling: Hard scrap (sintered metallic compact hard metal) is reworked to a hard metal granulate which can be reused in the production process. Soft scrap recycling: The cobalt binder metal is removed by a chemical process from the soft scrap (hard metals in powder form or with chalk-like consistency). The remaining tungsten carbide and the binder metal can be reused in the production process Environmental incidents Environmental incidents are incidents which may result in adverse effects to the environment. Environmental incidents are collected and recorded in the department Quality-Safety-Environment Management, independently of how serious they are. To facilitate the registration of incidents a registration portal in the intranet was established. When environmental incidents occur a root cause analysis is performed and corrective and preventive actions are taken. Maximum registration rate (not quantified). A target value for the number of environmental incidents was knowingly not fixed to prevent that bagatelle incidents are not reported. - Ongoing animation to report environmental incidents. no need for action Summary of the environmental impacts Environmental impact - Material consumption - Energy consumption - Water consumption - Greenhouse gas emissions - Emissions of ozone depleting substances, acetone, NOx and SOx - Emission of molybdenum oxide Status Main environmental impact of Plansee, controlled by a special programme - Industrial waste water emissions - Waste material - Environmental incidents 15

16 PLANSEE High Performance Materials QSE department Dr. Georg Thurner 6600 Reutte Austria as at March 2008