Lyra Martin Science 07.07.2022 08:Jul AM EDT

3M Co. Faces More Expense to Meet Environmental Responsibilities in Belgium

3M will charge $360 million pretax for PFAS in the second quarter of 2022. The company will ensure future stability in 3M's Belgian business and settle any obligations.

The U.S. firm offered €300 million ($305,584,500) extra for Antwerp plant cleaning and PFAS treatment technology. At the same time, a contract declares that 3M's obligation to fix soil is endless.

3M Co. Will Additionally Pay to Settle Pollution Obligations

After coming to an agreement to clean up and remediate PFAS, the so-called everlasting chemicals found in many consumer items, 3M Co. still faces the possibility of additional payments to settle pollution obligations in Belgium, a government official said.

According to Zuhal Demir, the environment minister for Flanders, the St. Paul, Minnesota-based company's agreement to pay the Flemish government €571 million ($581 million) does not absolve it of its obligation to remedy contamination-related harm to human health.

As per a study by Bloomberg Businessweek published last month, significant pollution in the region near 3M's facility in Antwerp was brought on by the company's production operations over a number of decades.

Belgian officials focus on the deal's limits as 3M moves forward. According to a Demir spokesman, the agreement does not prohibit local people from suing 3M, does not end an investigation into the company's alleged environmental violations, and does not restrict potential liability for health risks to inhabitants.

3M announced its intention to take a $360 million pretax PFAS charge for the second quarter of 2022 in a regulatory filing on Wednesday (June 6). In a statement, John Banovetz, the company's executive vice president and chief technology officer, stated that the deal would provide the groundwork for future predictability in 3M's activities in Belgium and resolve any liabilities in the future.

The U.S. corporation pledged €300 million (305,584,500) more than initially stated for Antwerp plant cleanup and PFAS treatment technologies. 3M's commitment to repair soil under a government mandate is unlimited, according to the agreement.

3M will pay €100 million ($101 million) to help finance a state-backed €4.5 billion ($4.58 million) highway and tunnel project to finish Antwerp's ring road, which required digging up PFAS-contaminated soil. It will also pay €100 million ($101 million) to the Flemish government for PFAS-related charges, including blood testing.

The company's U.S. PFAS cleanup expenditures are substantially more significant. In 2018, the corporation settled with Minnesota for $850 million to resolve PFAS pollution in Cottage Grove and adjacent municipalities.

3M Earplugs Spawned Several Lawsuits, Judge Ordered Settlement Dialogues

A brand of military-issued earplugs has generated so many lawsuits that a federal judge has mandated settlement negotiations to lessen the legal system's burden. 3M Co. might face billions of dollars in legal expenditures as a result.

According to an article in The Wall Street Journal, the problem has haunted Maplewood-based 3M for more than ten years but has gained momentum recently due to a slew of lawsuits filed by veterans who claim the earplugs caused their hearing loss.

The allegations of hearing loss by veterans who used Combat Arms earplugs are the main subject of the cases. The plaintiffs contend that after the device underwent a redesign in 2000, the earplugs were made too short to wear comfortably.

Although it denied any wrongdoing, 3M (NYSE: MMM), which acquired Combat Arms in 2007, settled with the U.S. government for $9.1 million. The company claims it informed the government about the fitting issues and provided a solution, arguing that it was the military's responsibility to ensure the plugs were used correctly.

Legal expenses are rising. 3M spent $63 million on legal costs for earplug and industrial mask claims in 2022's first three months and $250 million in 2021.

According to the Star Tribune, a federal court ordered 3M and the plaintiffs to commence mediation on July 15 since fees are also associated with the judicial system. Judge Casey Rodgers remarked that the quantity of judicial resources needed to process this many cases is astounding.