Shares of 3M Co. took a dive Wednesday toward the lowest close in more than 10-years, after investors were reminded that concerns over potential liabilities related to “forever chemicals” remained.
The Dutch government said Tuesday that Mark Harbers, minister of infrastructure and water management, has officially held 3M liable for damage from perfluoroalkyl and polyfluoroalkyl substances (PFAS) by a factory in Western Scheldt. The government said the State Attorney sent a letter to notify 3M of the minister’s decision.
PFAS are often referred to as “forever chemicals,” because they don’t break down in the environment. The chemicals, which are used to make a variety of products water- and grease-resistant, have been linked to a number of health hazards, including cancer, childhood development delays and reduced vaccine response.
Also read, from January 2021: Biden administration looks to target ‘forever chemicals,’ as 3M warns about ‘onerous regulation.’
Minister Harbers said there is too much PFAS in the Western Scheldt, which leads to concerns among residents, as well as financial damage for fisherman and infrastructure and water management ministry.
“I believe that the polluters should pay, not the users and administrators,” Harbers said, according to a Google translation of the document. “Holding 3M liable is in line with that starting point.”
3M did not immediately respond to MarketWatch’s request for comment.
3M’s stock
MMM,
dropped 3.2% in afternoon trading, enough to pace the Dow Jones Industrial Average’s
DJIA,
decliners. The stock was on track for the lowest close since Jan. 15, 2013.
The stock has tumbled 18.7% year to date, and has plunged 33.1% over the past 12 months, to lead all Dow components in losses over those time frames. Meanwhile, the Dow has slipped 1.0% this year and gained 2.7% over the past year.
The Dutch government’s announcement comes after 3M has previously disclosed that the Netherlands government has indicated it was investigating potential claims to recover damages from companies related to alleged PFAS contamination of the Western Scheldt, a river that flows through Belgium and the Netherlands.
That followed an agreement reached in July 2022 with the Flemish government, in which 3M Belgium agreed to invest more than EUR571 million (about $582 million at that time) to carry out PFAS-related remedial actions.
The Dutch government said Tuesday that Minister Harbers would make an inventory of the damage suffered. In February, the province of Zeeland, where the river runs through, gave entrepreneurs, such as fisherman and camp owners, a means to report their losses.
The government said Minister Harbers has accepted an earlier invitation by 3M to discuss potential liabilities.
