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Ardagh Glass Finance plc - Irish Stock Exchange

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Intellectual Property<br />

<strong>Glass</strong> Containers<br />

<strong>Ardagh</strong> <strong>Glass</strong> in the United Kingdom has a technology licensing agreement with O-I that expires<br />

in April 2014. Outside the United Kingdom, <strong>Ardagh</strong> has no such agreements in place and is equally<br />

free to deploy any available technology that best fits its needs.<br />

<strong>Ardagh</strong> <strong>Glass</strong> Engineering<br />

Heye International has an extensive portfolio of patents covering the design of equipment for the<br />

manufacture of glass containers. It also has substantial proprietary knowledge of the technology and<br />

processes involved in operating a glass container manufacturing facility. It has entered into a large<br />

number of agreements to provide technical assistance and technology support to glass container<br />

manufacturers for which it receives annual fees.<br />

Research and Development<br />

Research and development constitutes an important part of <strong>Ardagh</strong>’s activities. <strong>Ardagh</strong> supports a<br />

significant research and development effort, particularly at Heye International, which it believes is<br />

important to its ability to compete effectively. <strong>Ardagh</strong> is a member of glass research associations and<br />

other organizations which are engaged in research and development activities aimed at improving the<br />

manufacturing processes and the quality and design of products while continuing to meet <strong>Ardagh</strong>’s<br />

environmental responsibilities. <strong>Ardagh</strong>’s research, development and engineering activities include<br />

developing new products to meet customers’ needs, improving product quality and reducing raw<br />

material and energy consumption and increasing capacity, and thereby reducing emissions into the<br />

environment.<br />

<strong>Ardagh</strong>’s research and development efforts allow its businesses to remain at the forefront of glass<br />

manufacturing technology and its partnership approach with customers allows for the effective<br />

development of product and process innovations.<br />

Environmental, Health and Safety and Product Safety Regulation<br />

The principal environmental issues facing <strong>Ardagh</strong> include the impact on air quality through gas<br />

and particle emissions from its glass furnaces, including the generation of greenhouse gases; the<br />

environmental impact of the disposal of water used in the glass production process; and the potential<br />

contamination and subsequent remediation of land, surface water and groundwater arising from<br />

<strong>Ardagh</strong>’s operations.<br />

<strong>Ardagh</strong>’s activities are regulated under a wide range of international, European Union, national,<br />

provincial, regional and local laws, ordinances and regulations and other legal requirements concerning<br />

the environment, health and safety and product safety in each jurisdiction in which it operates.<br />

<strong>Ardagh</strong>’s’ substantial industrial operations are subject to the requirements of the EU Directive<br />

96/61/EC on Integrated Pollution Prevention and Control (‘‘IPPC Directive’’). The IPPC Directive<br />

requires that operators of industrial installations, including glass manufacturing installations, take into<br />

account the whole environmental performance of the installation, covering emissions to air, water and<br />

land, the generation of waste, the use of raw materials, energy efficiency, noise, prevention of accidents,<br />

and restoration of the site upon closure. Installations are required to hold a permit, which sets emission<br />

limit values which are based on Best Available Techniques (‘‘BAT’’), set out in BAT Reference<br />

Documents. All of <strong>Ardagh</strong>’s glass manufacturing plants hold the required permits under the relevant<br />

IPPC legislation.<br />

74

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