Green Manufacturing

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• Green Manufacturing
• Update on China ROHS Korea ROHS Regulations

Professor K.B. Chan Chairman, Hong Kong
Electronic Industries Association November 2007
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World Electronics Industry

• US1.5 trillion economy, 6.9 growth (2006)
• Asia - growth engine (gt 50 share incl. Japan)
• Slower growth in Europe Americas

Electronics Production
Source Reed Research, 10/2006
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China - World Electronics Factory

• 20 of world output
• Growth doubles world average
• Largest markets of handset, DVD, TV
• Emerging markets automotive electronics

Electronics Production
Source Reed Research, 10/2006
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Top 5 Economies

• China
• 10.7 GDP growth in 2006
• 2007 Q1-Q3 11.5 growth
• Foreign Exchange Reserve US 1.4 tril (Sep 07)

Source Govt news, Commercial news, IMF
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Top 7 Asian Electronics Producing Countries
Source Reed Research
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EU WEEE RoHS (2005 2006)

• China
• RoHS (2007)
• WEEE (under preparation)

EU EuP (2007)
Korea RoHS/WEEE (Jan 1, 08)
EU REACH (2007)

• Japan
• Recycling Law (2001)
• RoHS labeling (2006)

California Recycling (2005) with RoHS (2007)
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China RoHS

• Administration on the Control of Pollution
  Caused by Electronic Information Products
• ??????????????
• Effective March 1, 2007
• Apply to products manufactured in, sold in or
  imported into China (export products not applied)
• Same 6 substances as in European RoHS
• For Details
• http//www.mii.gov.cn/art/2005/12/17/art_525_1786.
  html

?
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Executed by 7 Government Departments

• Ministry of Information Industry
• National Development and Reform Commission
• Ministry of Commerce
• General Administration of Customs
• General Administration of Industry and Commerce
• General Administration of Quality Supervision,
  Inspection and Quarantine
• State Environmental Protection Administration

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Product Coverage
Following Electronic Information Products (EIP)
their accessories

• Computer
• Telecommunication
• Household Electronic
• Special Electronics Apparatus

• Radar Broadcast
• Electronic Measuring
• Components and Materials
• Application Products

Over 1,800 items, for details http//www.mii.gov.
cn/art/2006/03/16/art_1221_8441.html
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Major Requirements

• Labeling / Marking
• Hazardous substances and contents
• Environmentally friendly use period
• Packaging materials
• Restrictions on 6 hazardous substances
• Same as European RoHs
• Compulsory pre-market certification - China
  Compulsory Certification (CCC) - tested by one of
  the govt-approved Chinese laboratories

Environmentally friendly use period of
year from manufacturing date in which no
hazardous substance is released to the
environment
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Two Phases of Implementation

• Phase 1 Labeling / Marking for Products
• Phase 2 Products listed in Key Product
  Catalogue need to comply with requirements
• Hazardous substances limits
• Certification (CCC)
• Chinese Government is drafting the Key Product
• Catalogue (not yet available - expected end 2007
  /
• early 2008)

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China RoHS Working Group

• Established in Oct 2004, with 5 sub-working
  units
• Certification marking
• Maximum concentration limits testing
• Lead-free soldering
• Standard system study
• Environmentally Friendly Use Period
• 120 members, SMT is one of them
• Consultation and voting rights

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Consequences of Non Compliance

• Enforcement by 7 Departments - complicated
• Penalties and fines
• More rules
• No details yet

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Important Notes

• Pay attention to China RoHS details
  developments (e.g. Key Product Catalogue ??????)
• Consult relevant departments regarding testing
  certification
• Prepare labels, and Chinese translations for
  documents (substance disclosure table, operating
  parameters for Environmentally Friendly Use
  Period)

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Regulations in Korea

• Korea RoHS - titled Act for Resource Recycling
  of Electrical and Electronic Equipment and
  Vehicle
• Includes key regulatory actions of the EU
  directives RoHS, WEEE and ELV
• Effective January 1, 2008

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Korean Requirements

• I. Target products restricted substances
• 10 target product items (e.g. TVs, refrigerators)
• 6 restricted substances (same as EU RoHS)
• II. Design for recyclability and recycling
  information
• All manufacturers and importers to provide their
  Electronic and Vehicle Recycle information
  (product name, year of production, disassembly
  procedure...)
• Vehicle's ratio of recyclable contents will be
  over 85 in 2009, over 95 after 2010

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Korean Requirements

• III. End-of-life recycling system
• 4 hazardous substances will be banned in vehicles
  (same as EU ELV)

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HK Industrys Response Hong Kong Green
Manufacturing Alliance (HKGMA)

• A non profit making organization supported by
  manufacturing and trade associations
• Alliance formed Dec 2004
• Founding Honourary Chairman Prof. KB Chan
• Secretariat Federation of Hong Kong Industries
• Steering committee holds regular meeting
• Government support

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• Founding Members
• 7 Trade Associations related to Electronics,
  Electrical, Toys and Watches Industries
• Advisors
• Hong Kong Productivity Council
• Hong Kong Trade Development Council
• 6 universities in Hong Kong
• Observer
• Innovation and Technology Commission, HK
  Government

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• Mission
• To facilitate the transformation of HK
  manufacturing industry into Green
• Activities (2005 - Oct 2007) on RoHs WEEE
• Raise awareness seminars, promotions
• Provide guidelines for compliance workshops
• Technology advancement RD, database
• Industry representation liaise with government
• Platform for networking domestic and
  international
• ? Organized 40 events gt 5,000 participants

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• Activities 2007 onwards
• Apply same action of promotion awareness on
• China RoHs
• EuP
• REACH full funding programs from HK
  Government
• Promote Green Q-Mark for FHKI
• Recognition of enterprise with Green
  Manufacturing practice

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Summary

• World electronics industry is growing at a steady
  pace, China taking a dominant position
• China is trying to improve its economic
  condition, with focuses on RD, high tech and
  environment (target industries e.g. electronics,
  automotive)
• Meanwhile, environmental laws around the world
  are greatly affecting the electronics other
  industries (many technical issues still unsolved)
• Drafting standard industry guidelines for RoHS
  based on EU laws (agreed in WEF/APEC Seminar -
  June 2007) is a good start

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• Lets Join Together for a Better Electronics
  Industry!
• Thank You!