MEMC inglese MERANO 06/03 - MEMC Electronic Materials, Inc.

ABSTRACT OFENVIRONMENTAL STATEMENTYEAR 2001MERANO PLANTReg.N. 000121

Sites throughout the worldThe head office of the multinationalgroup is in St. Peters, Missouri(USA). There are a total of 9 productivesites throughout the world.These are situated in America, Asiaand Europe and they cover thewhole globe with their commercialnet. Productively MEMC is representedin Europe by MEMC S.p.A.with the site at Merano which is thesubject of this Environmental statement,and Novara. These are thelast European sites of the group.On a world scale the group consistsof another four productive sites(Two in the USA, one in Japan andone in Malaysia) plus three jointventure schemes with other partnerssituated in the USA, Korea andTaiwan respectively.Chonan City - KOREAHsinchu - TAIWANSherman TEXASKuala Lumpur - MALAYSIASt. Peters MISSOURIPasadena TEXASNovara - ITALYUtsunomiya City - JAPANMerano - ITALY

Company policyThe company’s Environment,Safety and Healthpolicy is the documentthat shows the generalprincipals on which theEnvironment, Safety andHealth (ESH) system isbased. This is for thecare and managementof the Environment, forthe Health and Safety ofthe workers and therelevant and relevantrisk controls.

The structure of the organisationThe structure of the organization,which is shown below enabled therealization of the ESH policy.MEMC Electronic Materials S.p.A.Merano ESH OrganisationDIRECTOR,PRODUCT PLANNING & MISPRESIDENT MEMC S.p.A.VICE PRESIDENT MEMC IncDIRECTORFINANCE & ADMINISTRATIONESH STEERING COMMITTEEPresident MEMC S.p.A.Material Director, Technology Director,Novara and Merano Plant directorsDIRECTORHUMAN RESOURCESMANAGER,QUALITY ASSURANCEDIRECTOR,TECHNOLOGYDIRECTORMATERIALSEnvironmentalmanagementrepresentativeDIRECTORMERANO PLANTDIRECTORNOVARA PLANTESH COMMITTEEMEMC Electronic Materials S.p.A. - Merano PlantPOLYCRISTALMANAGERPLANT ENGINEERING &TECHNOLOGY POLYCRISTALMANAGERDIRECTOR,MERANO PLANTSINGLECRYSTALMANAGERELECTRICAL MAINTENANCE& AUTOMATIONMANAGERDirector Merano PlantPlant Engineering &Technology Polycristal ManagerPolycristal ManagerSinglecristal ManagerOperation Technology ManagerAutomation ManagerAdministration & Materials ManagerPlant Facilities ManagerQuality Assurance ManagerHuman Resources ManagerOPERATION TECHNOLOGYMANAGERHUMAN RESOURCESMANAGERINFORMATION TECHNOLOGYMANAGERQUALITY ASSURANCEMANAGERESH MANAGERADMINISTRATION & MATERIALSMANAGER

Description of the activitiesand of the associated environmental aspectsIn the flow diagram there is adescription of the production cyclefor the Merano site.POLYCRYSTAL AREATET INCOMINGHYDROGEN PRODUCTION& PURCHASETETTET IDROGENATIONTCSCLOROSILANE PURIFICATIONHYDROGEN PURIFICATIONCLOROSILANE RECYCLEPOLYSILICONDEPOSITIONRECUPERO HYDROGEN IDROGENO RECYCLEGRINDING AREANUGGETSPREPARATIONSHAPING& SHIPPINGCRYSTAL GROWING AREADOP PREPARATION& SELECTIONSINGLECRYSTALGROWINGSEEDS PREPARATION& SELECTIONRODLABORATORY AREACONTROL& SHAPINGPACKAGING& SHIPPING

Significant environmental aspectsThe different activities carried out atthe Merano site are associated withcertain environmental aspects thathave or may have either a direct oran indirect environmental impact.After characterising the direct andindirect impacts of every activity onthe external environment, they areevaluated.In the following diagram there is asummary of the significant results ofthis evaluation for every singlephase of the production process.DIRECT ENVIRONMENTAL ASPECTSConsumption of electric energyConsumption of oil, gasoilConsumption of methanConsumption of groundwaterConsumption of potable waterConsumption of raw materialsConsumption of auxiliary materialsEmissions to airReleases to waterHazaordous wastesNot hazaordous wastesRecoverable wastesPCBOzone deplective substancesAsbestosOdoursNoiseRadiationsVibrationsSoil contaminationSoil consumptionVisual intrusionTrafficEffects on biodiversitynormaloperatingconditionsemergencysituationspastsituationsvery significativesignificativenot significativeView on Tessa Group

Quantification of the environmental aspectsThe following graphs represent thequantifying data with regards to themost important environmentalaspects of the site at Merano.The quantitative data is expressedin terms of absolute values (theannual quantity for the scope of thisreport) and of specific values (theconsumption or release per unit ofthe product).The quantitative data has been calculatedin order to present a graphto show the environmental efficiencyfor the period 1997-2001.At the end, in order to make readingthe information easier, thedata is reported in the followingtrend of the production of silicon(mono-crystalline and polycrystalline)for the period under consideration.The graphs show that 2001 representsan atypical year with respectto the previous years. In fact up untilthe first months of this year, thewhole sector of electronics was in aperiod of depression. This had areflex action upon silicon productionand therefore upon MEMC.TREND OF PRODUCTIONMono Poly TotalSILICON PRODUCTIONYEAR19971998199920002001% values of silicon tonreferred to 199710010011211280Quantity produced1501005001997 1998 1999 2000 2001YEAR

Energy ComsumptionThe principle source of energy forthe Merano site is electricity, with a97% share of the total energy consumed.The following graph represents thedata for the total energy consumedfor the period between 1988 and2001, with the purpose of showingthe significant reduction in consumptionduring the whole period.The economical crisis of last yearcaused a reduction in the totalenergy consumed, but also anincrease in the specific consumptiondue to the fixed consumption requiredby the production process.TOTAL ENERGY CONSUMPTIONTotal consumption (tep)70.00060.00050.00040.00030.00020.0001988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 20017060504030Specific consumption (tep/silicon ton)YEARTotal consumptionSpecific consumptionTOTAL ENERGY CONSUMPTIONYEARTOTALSPECIFICContribution of electricenergy on totalenergy consumptiontep*tep/t silicon%%199754.03640,710096199855.82842,210497199963.98642,910597200064.40043,010697200154.41151,512697*tep = tons of oil equivalent

CombustiblesThe site also uses combustible oil asa base for a high concentration ofsulphur for the heating of the diathermicoil used for the purificationand the recovery of the chloro silane.Diesel and methane are usedfor heating part of the buildings.Diesel is also used for auto traction.COMBUSTIBLE CONSUMPTION2.3001,8Total consumption (tep/year)2.2002.1002.0001.9001.8001.7001.6001.5001997 1998 1999 200020011,61,41,21,00,80,60,40,20,0Specific consumption (tep/t Silicon ton)methangasoiloilspecificYEARCOMBUSTIBILE COMSUMPTIONYEARAnnualSpecificCombustible oiltepDieseltepMethanetepTotaltep/t silicon%199719981999200020012.0701.8631.9231.7831.78048,052,243,534,532,512,711,114,817,917,41,61,51,31,21,7100948175106

Water ComsumptionThe all the water for the productionprocess (industrial water) is suppliedfrom the ground water deepbeneath the site.The town’s reservoir exclusively suppliesthe drinking water.The industrial water is employed asa cooler for the pullers and in theexercise of auxiliary utilities and isalso used in the fire water loop.The graph shows the groundwaterwater consumption for between1988 and 2001, showing the significantreduction in the specific consumptionduring the whole period.Excluding last year, the overallgroundwater needs (expressed incubic metres) have increased. Thiswas caused by the increased volumeof production. The specificneeds (expressed in cubic metersper ton of silicon produced) showsa slightly decreasing trend.YEARTotalWATER CONSUMPTIONGROUNDWATERSpecificMm 3 /yearm 3 /kg silicon%AnnualconsumptionSpecificconsumption199719981999200013,3813,9214,1614,6410,110,59,59,82001 13,53 12,81001049498127Total consumption M m31614121086WATER CONSUMPTION - GROUNDWATER1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001161412108Specific consumption m 3 /kg siliconYEAR

Consumption of raw materialsand auxiliary materialsThe plant uses the raw materials silicontetrachloride (TET) and hydrogen.The following graph shows thetrend in the consumption of chlorosilane,which is expressed as a sumof Trichlorosilane (TCS) and TET.The reciprocal report between thetwo substances shows the progressivesubstitution of Trichlorosilane(TCS) with TET. This change increasesthe transportation safety of thedangerous substance. The trend inconsumption, whether it’s absolute(expressed in tons) or specific (tonsper ton of silicon polycrystals produced)is decreasing following theintroduction of improvements to theyielding process. Also forecast in2002.The consumption of hydrogen eitherabsolute (expressed in cubicmetres) or specific (expressed incubic metres per ton of siliconpolycrystals produced) is increasingcaused by the development of theprocess of hydrogenation of TET.The environmental programme of2002 predicted an action that reducedthe consumption.Included in the auxiliary materialsthere are a number of substances,which are frequently used, that arechemically classified as dangerousto the environment or as harmful tohuman health. These can be groupedinto the following homogeneousfamilies:Acids:Acetic acid, hydrochloric acid,hydrofluoric acid, nitric acid, acidmixtures, chromic acid.Bases:potassium, sodium, calcium hydroxide,ammonia in solution, bariumhydroxide.Gases:Hydrogen, argon, nitrogen, helium.Alcohol’s:Isopropanole, ethyl, citrosolve.Hydrocarbon halogen compounds:HCFC22Others:Hydrogen peroxide, detergents,dilutants for paint, solvents, ethyleneglycol, pipe-cleaners, sodiummetabisulphite, dopants, diesel, oil.Yearly consumption (t)CONSUMPTION OF CHLOROSILANE1201101009080701997 1998 1999 2000 2001YEAR1101051009590Specific consumption(t/t Poly)Yearly consumption (m 3 )CONSUMPTION OF HYDROGEN250200150100501997 1998 1999 2000 2001YEAR35025015050Specific consumption(m 3 /t Poly)Total consumptionSpecific consumptionCONSUMPTION OF RAW MATERIALSYEAR19971998199920002001CHLOROSILANE% values t/t Polyreferred to 1997100106939595HYDROGEN% values m 3 /t Polyreferred to 1997100917299235

Air EmissionsThe central heating, the activityrelated to the semi-finished andfinished product control (chemicalcleaning, slicing, rectification), thechlorosilane recovery cycle and thestorage system all generatevapours, gases and dust particlesthat collect in the exhaust ducts.These are eventually treated orscrubbed, according to their typologyand danger level, to removeall pollutants before release into theatmosphere.The graph represents the values forthe emission of nitrogen oxide thatcomes from the treatment of acidfumes. The concentrations have aconstant flow during the period butare always well below the legallimits. The amount of nitrogen oxidereleased into the atmosphere isrepresented in absolute (Kg peryear) and specific (Kg of NOx perton of silicon) terms. From the flowyou can observe that the quantitiesare decreasing because of improvingsteps that have been taken inthe management of the treatmentplant.TREATMENT OF ACID FUMES - EMISSION OF NITROGEN OXIDE - NO XYEARTREATMENT OF ACID FUMES -EMISSION OF NITROGEN OXIDELimitMaximumconcentrationAverageconcentrationmg/m 3 mg/m 3 mg/m 3199719981999200060060060050018,041,075,022,07,714,517,313,72001 500 10,0 3,4Concentration (mg/m3)700600500400300200100limityear averagevalueyear maximumvalue01997 1998 1999 2000 2001YEARTREATMENT OF ACID FUMES - EMISSION OF NITROGEN OXIDE - NO XYEARTREATMENT OF ACID FUMES -EMISSION OF NITROGEN OXIDEQuantityreleasedkg/yearSpecificquantitykg/t silicon19971998199920001.082,72.035,82.237,51.862,40,541,031,000,831001891841532001 440,1 0,28 51Quantity released%Specific quantityQuantity released (kg/year)3.0002.0001.00001997 1998 199920002001YEAR1,000,800,600,400,200,00Specific quantity (kg/Silicon ton)

The production of Carbon dioxideshown in the graph represents thesite’s contribution to global warming:global heating of the earthmore commonly known as thegreenhouse effect, that is the site’scontribution to the heating of theearth’s crust, to satisfy its energeticneeds.YEAR19971998199920002001OiltC026.3555.7195.9045.4745.466GasoiltC02EMISSION OF CARBON DIOXIDE EQUIVALENT148,8161,8134,9107,0100,8AnnualMethantC0229,926,134,842,140,9Freon 22+23tC02tC02101,0SpecificTotaltC02/t silicon4,94,54,13,85,4%100928478110EMISSION OF CARBON DIOXIDE EQUIVALENT7.0006,0methangasoiloilfreon 22+23specificTotal quantity (tC0 2 /year)6.5006.0005.5005.0001997 1998 1999 200020015,04,03,0Specific quantity (tC0 2 /t Silicon)YEARWater EmissionsThe flow back from the working process(industrial effluent) are directedtowards dedicated treatment plantsthat reduce the polluting substancescontained within it, then returned tothe river Adige.The river Adige also converges withcooling rainwater water.The flow back from the toilets hasbeen sent, since 2001, to the townssewage system and is treated at thecommunal purification plant.The graph represents the quantity ofindustrial water that is discardedinto the river Adige compared tothe groundwater taken for the productiveprocess. This relationship isvery close to 100%, which indicatesthat the water balance is beingmaintained.Quantity discharged (Mm 3 )INDUSTRIAL WATER16,0014,0012,0010,00Total discharge% water discharged/water takenYEARYEARTOTAL WATER DISCHARGEDWaterdischargedMm 3 /yearMm 3 /year199719981999200013,1913,4313,7014,3413,3813,9214,1614,642001 13,34 13,531997 1998 1999 2000 2001Water taken Discharged/takenThe analysis carried out on the industrial flow back indicates that the legalparameters are always respected; concentration values have a tendency tobe stable even during periods of increased production.1009896949290%%9996979899

WATER EMISSIONS - NITROUS NITROGEN (N-NO 2- )NITROUS NITROGEN (N-NO 2 )0,7YEARLimit locallaw 3/80MaximumconcentrationAverageconcentrationmg/l mg/l mg/l19971998199920000,60,60,60,60,10,10,10,10,060,050,070,072001 0,6 0,2 0,08mg/l0,60,50,40,30,20,101997 1998 1999 20002001YEARWATER EMISSIONS - NITRIC NITROGEN (N-NO 3- )NITRIC NITROGEN (N-NO 3 )25YEARLimit locallaw 3/80MaximumconcentrationAverageconcentrationmg/l mg/l mg/l1997199819992000202020209,710,013,110,16,35,85,35,62001 20 8,4 4,8mg/l20151050199719981999YEAR20002001WATER EMISSIONS - FLUORIDES F -FLUORIDES7YEARLimit locallaw 3/80MaximumconcentrationAverageconcentrationmg/l mg/l mg/l199719981999200066661,00,90,81,70,70,50,60,62001 6 0,5 0,4mg/l6543210199719981999 2000YEAR2001WATER EMISSIONS - CLORIDES Cl -YEARLimit locallaw 3/80CLORIDESIMaximumconcentrationAverageconcentrationmg/l mg/l mg/l19971998199920001200120012001200840,0489,0643,0524,098,2113,7120,9136,52001 1200 488,8 75,2mg/l1.4001.2001.00080060040020001997 19981999 2000Limit by lawYEARMaximconcentration2001Yearly average

Production of wasteThe graphs showed that the trendfor the total production of waste issubdivided according to destination(disposed waste and recoveredwaste) and special hazardouswaste, both in absolute terms(expressed in Kg) and specific(expressed in Kg of waste producedper ton of silicon)disposedrecoveredtotalspecificWASTE PRODUCTIONYEAR19971998199920002001WASTE PRODUCTIONdisposed waste recovered waste total waste specific waste % waste recovered/totalt/year t/year t/year t/tSi1994043093753538336859008147491.0311.0891.2101.1881.1020,780,820,810,801,0481%63%74%68%68%Annual production (t/year)1.4001.2001.00080060040020001997 1998 1999 200020011,401,201,000,800,600,400,200,00Specific production(kg/t Silicon)YEARHAZARDOUS WASTE PRODUCTIONtotal productionspecific productionYEAR19971998199920002001annualt/year4365783674t/year0,030,050,050,020,07specific% Specificwaste production/year% hazardouswaste/total100 4%167 6%167 6%672333%7%HAZARDOUS WASTEAnnual production (t/year)100806040200,080,060,040,02Specific production(kg/t Silicon)0199719981999200020010,00YEAR

NoiseThe main source of noise comesfrom the compressors in the polycrystallinedepartment, the pumps forthe water recycling, the pumps forthe extraction of groundwater, andthe extractor system for the shearingmachine. Since 2000 soundproofinghas been carried out on thepump for the water recycling whichhas greatly reduced, with respect tothe results of 1997, the level ofnoise released into the environment.EXTERNAL NOISEExternal noiseat the plant borders (2000).Sinigo stream5451,554,551,4NLEGEND= DAY NOISE LEVELin dBA56565848,5= NIGHT NOISE LEVELin dBA55555749Law limit for mainlyindustrial areas:Day law limit = 70 dBANight law limit = 60 dBAMerano5447,564,549695466,559SS 38694957,549,559506550BolzanoSoil contaminationSoil contamination and, except insome isolated cases, groundwatercontamination are not caused bythe current production, but are dueto past activities carried out betweenthe 1920’s and the 1970’s.GROUNDWATER QUALITYPosition of monitoringpiezometersLEGEND= Hydraulic barriersSinigo streamXIIIIXVIIIXIIAIIIVIIIVVII aXVIIVIGIX FEPZ-4BPZ-2 DXVXIVXVINMeranoXVIISS 38PZ-3XIXPZ-7CXIIIPZ-5PZ-6BolzanoPZ-I

Indirect environmental aspectsThe following diagram synthesises activities that, according to a significanceevaluation of the indirect environmental aspects, cause or can cause significantand direct environmental impacts.ACTIVITIES UNDERTAKEN INSIDE THE SITERepair and construction (buildings, insulation, painting, electrical plants,excavation/earth moving, installation and maintenance, cleaning, gardening)Cleaning offices and departments, CateringACTIVITIES CARRIED OUT OUTSIDE THE SITEPRODUCTS ANDSERVICES BOUGHTEXTERNALTRANSPORTATIONMANUFACTURING/EMPLOYMENT OF THEPRODUCT SUPPLIEDBY MEMCCollection and disposal of non-dangerous waste.Collection and disposal of dangerous wasteAcquisition of raw materials (TET and hydrogen)Acquisition of dangerous chemical productsAcquisition of non dangerous chemical products,new parts and other consumable materialsAcquisition of electricityAcquisition of diesel and fuel oilsAcquisition of methaneTransportation of non dangerous wasteTransportation of dangerous wasteTransportation of raw materials (dopants)Transportation of raw materials (TET)Transportation of dangerous chemical productsTransportation of non dangerous chemical products,new parts and other consumable materialsTransportation of product (silicon)Transportation of product (hydrochloric acid)Transportation of peopleSilicon transformationUtilisation of chipsCollection of siliconUtilisation of hydrochloric acidGROUND ACTIVITIESCommunication/sensitisation activitiesSocial - economical contributionsvery significativesignificativenot significative

The environmental programmeThe table shows the environmental improving programme for 2002THE ENVIRONMENTAL PROGRAMME 2002AREA INVOLVED IMPROVING ACTIONTARGETDATE OF COMPLETIONENERGY CONSUMPTION - STANDARD CONDITIONSRESPONSABLEOFFICEOBJECTIVE: To reduce the consumption of electricityInsertion of a thermic screen in the deposition reactor(poly department)Reduce the specific consumption ofelectricity (kWh / kg polycrystalline) inthe depostition reactor by 60% in totalTest: June 2002Implemented: December 2002Site engineering andtechnology departmentModification of the 7 pullers by means of the insertionof an upper thermic screen (CZ department)Reduce the specific consumption of electricity(kWh/kg monocrystalline) by 25%of the silicon produced on that pullerDecember 2002Operation TechnologyMono DepartmentWATER CONSUMPTION - STANDARD CONDITIONSOBJECTIVE: to reduce the amount of groundwater consumedSubstitution and cleaning of the distillation condensersof the chlorosilane (Poly department)CONSUMPTION OF RAW MATERIALS - STANDARD CONDITIONSOBJECTIVE: to reduce the amount of silicon tetrachloride (TET) consumedConversion of one distillation column to redistillize thepurge of the chloro silane recovery system (Polydepartment)Reduce the total consumption (m3/h)of groundwater by 18%Reduce the absolute consumption(l/year) of raw TET by 2%June 2002December 2002Site engineering andtechnology departmentSite engineering andtechnology departmentCONSUMPTION OF AUXILIARY MATERIALS FOR THE CONTROL OF THE PRODUCT - STANDARD CONDITIONSOBJECTIVE: to reduce the consumption of chromiumImplementation of a new process with etching mixeswithout chromium for the control of the quality ofmonocrystalline (CZS department)WATER EMISSIONS IN SURFACE WATER - STANDARD CONDITIONSOBJECTIVE: to reduce the disposal of dangerous substances into the surface waterSending purified water from the Ecological plant to aseparate treatment plantImplementation of a new process with a chromiumfree acid mixture for the quality control of the monocrystal(CZS department)ASBESTOS - PRE-EXISTING CONDITIONSOBJECTIVE: removal of pre-existing AsbestosPlanning for the replacement of the cement- Asbestosroofs of the buildings of the water treatment plant(crystalline)SOIL CONTAMINATION - PRE-EXISTING CONDITIONSElimination of ChromiumElimination of the effluent containingnitrates, nitrites, chlorides, fluorides andChemical Oxygen Demand substancesElimination of ChromiumElimination of the covering of cement-AsbestosOBJECTIVE: Remediation of contaminatioed soil caused by a previous activityDecember 2002June 2002December 2002June 2002Operation TechnologyIngegneria impianti di stabilimentoe Tecnologia/ESHOperation TechnologySite engineering and technologydepartmentSoil remediation of the area of the old canteen northSoil remediation of the area of the old canteen southDecontamination of landfill sites in the area of the siteReduce metal concentrations in the soilbelow the limits for industrial/residentialuseReduce metal concentrations in the soilbelow the limits for industrial/residentialuseReduce metal concentrations in the soilbelow the limits for industrial/residentialuseJune 2002December 2002December 2003Environment and safetyEnvironment and safetyEnvironment and safetyOBJECTIVE: Field contamination preventionRegeneration and resination of a gathering tank ofthe effluent and underground pipesEventual prevention of soilcontaminationDecember 2002Technical office

Free translation of abstract ofEnvironmental Statement validatedby Environmental Verifier ERM CVS(accreditation number UK-V-0013)and approved by ItalianCompetent Body1st Edition - December 2002Next validation: July 2005All rights riservedGraphic project:Julita Pubblicità - www.julita.it

MEMC Electronic Materials S.p.A.Viale Gherzi, 3128100 Novara - ItaliaTel. (+39) 0321 334444Fax (+39) 0321 691000Via Nazionale, 5939012 Merano (Bz) - ItaliaTel. (+39) 0473 333333Fax (+39) 0473 333270www.memc.comCompany CertificationQS 9000 e ISO 14001