5 February 2002
5 February 2002
Elementis plc, the international speciality chemicals group, notes the article
in a recent edition of USA Today regarding possible restrictions on the use of
chromated copper arsenate ('CCA') as a wood preservative in the US.
Elementis Chromium supplies chromic acid which is used in the manufacture of CCA
and acts primarily as a binding agent.
According to the USA Today article, manufacturers of CCA intend voluntarily to
surrender licences from the US Environmental Protection Agency (EPA) to use CCA
and cut production under graduated caps. Were this to happen, it would be
likely to affect CCA applied to timber for consumer use but it is understood
that industrial uses would still be permitted. Consumer use could include
decking, playground equipment and timber used in construction which has contact
with the ground; industrial uses would include utility poles.
Elementis understands that the EPA is engaged in a risk analysis to evaluate the
use of CCA's in consumer products, in particular in relation to arsenic.
Elementis is concerned that if USA Today's report is accurate, the risk analysis
by the EPA would not be completed in the normal course. Elementis believes that
the risk analysis should be completed before further action is considered.
Elementis estimates that were these possible restrictions to be put in place,
the global and US demand for chromium chemicals would reduce by around 5 and 30
per cent respectively. Dependent on the extent of the US consumer market
affected, Elementis Chromium's global sales could, over a period of time, be
adversely affected by up to 15 per cent.
- Ends -
Elementis plc 01784 224212
Geoff Gaywood Chief Executive
George Fairweather Group Finance Director
Anna Passey Head of Corporate Communications
Brunswick 020 7404 5959
This information is provided by RNS
The company news service from the London Stock Exchange