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First, AEG PS Group operates its business internationally with production and engineering facilities lo-
cated in different countries in Europe, Asia and the USA. AEG PS Group is therefore subject to legal and
regulatory provisions, including, among others, provisions of environmental protection, occupational
safety and health care regulations, in a multitude of jurisdictions. Second, insofar as AEG PS Group cus-
tomers are subject to legal requirements or have to meet technical standards, AEG PS Group must design
its products and ensure their manufacture so as to comply with all applicable legal requirements and stan-
dards. Third, regarding AEG PS Group's customers in its RES segment, government incentives for the
promotion of renewable energy sources are of fundamental importance, because the various incentive
programs for operators of photovoltaic systems generate an indirect demand for the polysilicon and the
products of AEG PS Group.
Occupational Safety, Health Care and Environmental Protection Regulation
AEG PS Group is subject to occupational safety, health care and environmental regulation, in each of the
jurisdictions in which it operates. Such laws and regulations vary from country to country. In the Euro-
pean Union, for instance, member states have all transposed into their national legislation a series of di-
rectives that establish minimum standards on occupational safety and health. These directives (of which
there are about 20 on a variety of topics) require the employer to assess the workplace risks and put in
place preventive measures based on a hierarchy of control. This hierarchy starts with the elimination of
hazards and ends with personal protective equipment. European member states have enforcement author-
ity to ensure that the basic legal requirements relating to occupational safety and health are met.
Environmental law consists of a complex and interlocking body of statutes, laws, regulations, treaties,
conventions, regulations and policies that may differ from country to country. Areas of concern in envi-
ronmental law include emission control, restrictions on the use of hazardous materials, waste management
and the prevention of contamination of soil and land.
In the European Union, manufacturing of electronic equipment is subject to the Directive on the restric-
tion of the use of certain hazardous substances in electrical and electronic equipment (2002/95/EC) com-
monly referred to as the Restriction of Hazardous Substances Directive (or Rosh). The Rosh Directive
restricts the use of six hazardous materials in the manufacture of various types of electronic and electrical
equipment. It is closely linked with the Waste Electrical and Electronic Equipment Directive (WEE)
2002/96/EC, which sets collection, recycling and recovery targets for electrical goods.
Product Standards and Certifications
The market for AEG PS Group's products is heavily influenced by government regulations, technical
standards and policies concerning the issuance of product certificates. Most of AEG PS Group products
require certifications and approvals from the local authorities of the customer's home state prior to its de-
livery or installation. As a consequence, the power systems solutions provided by AEG PS Group have to
comply with various national and international technical standards and industry norms, including, among
others, standards on electrical equipment of machines, erection of power installations with nominal volt-
ages up to 1000 V, protection against electric shock, radio interference suppression of electrical appli-
ances and systems, safety of machines, safety-related parts of control systems and general design guide-
lines. For example, the Power Control Systems and Modules division's standard control modules carry
certifications from both Conformity European (CE), the quality standard required for power products in
Europe, Asia and the Middle East, and Underwriters Laboratories (UL), the quality standard required for
power products in the USA.
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