Solectron has been at the forefront of the contract manufacturing industry in addressing environmental issues. Our global network of sites comply with key industry regulations like Reduction of Hazardous Material (RoHS) and Waste Electrical and Electronic Equipment (WEEE). Our leadership in environmental issues has proven effective in helping OEMs navigate growing challenges and risks associated with non compliance.

The RoHS directive has triggered a massive effort requiring OEMs to create or update corporate documents, processes and procedures covering:

• Inspection standards
• Process standards
• Equipment selection, set-up and operating procedures
• Material handling and segregation
• Vendor qualification
• Quality testing
• Part identification
• Product labeling
• Training programs

European Union:

• RoHS bans six substances
• WEEE requires producers to recycle waste
• Energy using Products (EuP) will impose design criteria
• Registration Evaluation Authorization of Chemicals (REACH) will restrict chemical use in manufacturing

China:

• China's Ministry of Information Industry (MII) has issued the "Management Methods for Controlling Pollution Caused by Electronic Information Products Regulation"("China RoHS"). "China RoHS" provides a broad regulatory framework for substance restrictions, pre-market certifications, labeling and information disclosure requirements affecting a broad range of products and parts defined as "electronic information products" ("EIP"). Compliance obligations go into effect on March 1, 2007. Solectron's Environmental Leadership Steering Committee will continue working to keep abreast of China RoHS development and provide recommendations to Solectron customers.

USA:

• Over 47 proposed legislative initiatives in 17 States to require end-of-life take-back and/or restrict substances from use.
• CA-RoHS: Beginning January 1, 2007, California law prohibits covered electronic devices from being sold or offered for sale if the device contains substances that exceed the threshold limitations prohibited by the European Union (EU RoHS). CA-RoHS differs from EU RoHS in that it only applies to 8 categories of specified covered electronics. CA-RoHS regulations will recognize any exemptions adopted by the EU for the use of lead, mercury, cadmium, or hexavalent chromium and apply to covered electronic devices.

And more legislation is on the way.

Other Americas:

• Mexico and Canada updating hazardous waste laws to include WEEE; Canada loosening import/export laws on viable WEEE recyclables

Other Asia:

• Japan and Korea expanding chemical substance laws

As a leader in environmental compliance, we are able to meet the increasingly complex manufacturing needs of our global customers today.