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Article

28 Apr 2014

Author:
SOMO (Centre for Research on Multinational Corporations)

Dutch microchip firm needs to address health risks at Chinese factory

[Business & Human Rights Resource Centre invited ASMI to respond. Response provided.] A report published by SOMO...finds that the Dutch-based company ASM International N.V. (ASMI) should take responsibility for addressing health risks at the factories of its former subsidiary company, ASM Pacific Technology (ASMPT). The fact that ASMI is a minority shareholder of ASMPT is no reason for inaction, the report concludes. The background to the research involved the incident whereby of an employee of ASMPT in China fell ill with leukemia, after reportedly being exposed to the carcinogenic substance benzene on the work floor...The due diligence requirements of the UN Guiding Principles for Business and Human Rights include the identification, prevention and mitigation of any adverse impacts. In a recent clarification of these principles, special representative John Ruggie stated that they unquestionably apply to minority shareholders. Therefore, SOMO argues that the change in ASMPT’s ownership structure is no valid reason for inaction; ASMI still has a responsibility to actively address occupational health and safety risks.