UNITIKACSR Report
2006

UNITIKA Group
Corporate Social Responsibility Report

2006

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Message From the President

Otofumi Onishi
President, Unitika Ltd.

Enriching Lives and Helping the Environment
Being a Public-Spirited Corporation
The 21st Century has been called the 'Century of the Environment'-an era when corporations must takegreater responsibility in answering the public's concerns over global warming, pollution and other global
environmental issues. The Unitika Group's corporate philosophy is to contribute to the public good byenabling better living through technology, so we have been active in helping create the infrastructureneeded for greater resource recycling in Japan. Our wide range of environmental preservation initiatives
includes bringing recycling technology to garbage incinerating and water treatment methods designed toreduce environmental impact, and providing air, water and soil surveys and analysis for environmental
assessments and preservation.
Unitika first started working on environmental issues in 1993, when we created the Unitika Global
Environment Charter, and have since used it as the blueprint for subsequent active work on environmental
issues. The Charter was followed by the Unitika Action Guidelines, created and implemented to concretize
our environmental management methods, and by work on gaining ISO 14001 certification throughout theGroup. (ISO 14001 is the international ISO standard for environmental management systems.) We have
stepped up our certification efforts, and now all the major Unitika production sites and main Group
companies are certified.
Biodegradable materials have recently been gaining attention, and were featured at Expo 2005. Unitika
has taken the initiative in this area by developing Terramac, a biodegradable plastic material made of apolylactic acid synthesized from corn or other plant resources. We have marketed it as a film, nonwoven
fabric, fiber and resin. Terramac is an environmentally-friendly material with a promising future as a nextgeneration polymer with a growing range of applications. It can reduce reliance on the earth's greatly
depleted oil resources, and helps combat global warming since it doesn't increase atmospheric CO2 whenincinerated.
This fiscal year, the Unitika Group has begun a new medium-term (three-year) management plan called
New Progress 8 (NP-8). NP-8 is designed to encourage environmentally-aware business models, expanding
business areas such as Terramac and our environmental plants. It calls for more environmentally-oriented
management through steps such as an ongoing shift in fuel sources from fuel oil to natural gas. This shift isalready underway-we started operating gas cogeneration facilities at our Uji (Kyoto) Plant in October 2004
and Okazaki (Aichi) Plant in April 2006, and have scheduled work on another of these facilities at our
Sakoshi (Hyogo) Plant next fiscal year. These developments are creating steady progress on our goal ofmajor reductions in air pollution at Group production sites. The Group's management vision is to be apublic-spirited corporation that enriches lives and helps the environment, and our work on bringing thisvision to life will continue to include a range of environmentally-oriented corporate activities.
Starting this fiscal year, the Environmental Report we put out every year has been reborn as the CSR
Report you are now reading, which will provide information on a greater range of areas. The change reflects
the increasingly important role that work on the environment and other areas of CSR (corporate social
responsibility) plays in today's corporations. I hope this report will give you a better understanding of theGroup's corporate activities.

UNITIKA Group  "   "  !

Notes on FY 2006 Report; Company Overview

Notes on FY
2006 Report

This CSR Report covers the FY 2005
environmental and CSR activities of theUnitika's domestic production sites, andtwelve of the domestic Group companies. It
was created in line with the “Guidelines forEnvironmental Reports 2003” issued by
Japan's Ministry of the Environment. In lightof the greater attention and importance theJapanese public is now attaching tocorporate social responsibility (CSR), the FY
2006 Report has added a new section thatwill be continued in future Reports. It covers
management principles and organizations,with information on areas such as corporate
governance and internal regulations.

    

    Uji Plant

Unitika Fibers Ltd.

Okazaki Plant

Unitika Textiles Ltd.

Sakoshi Plant

Unitika Plant Engineering Co., Ltd.

Tarui Mill

Unitika Glass Fiber Co., Ltd.

Toyohashi Office

Unitika Environmental TechnicalCenter Co., Ltd.

Tokiwa Mill

Unitika Protec Sakoshi Ltd.

Miyagawa Mill

Nippon Ester Co., Ltd.

Kaizuka Office

Ad'all Co., Ltd.

Central R&D
Laboratories

Unitika Spunbond Products Co., Ltd.
Unitika Logistics Co., Ltd.
Unitika Uji Kosan Co., Ltd.
Union Co., Ltd.

Company
Overview$ Unitika Ltd.
%    June 19, 1889 23.7 billion yen (as at March 31, 2006)$     ! &    ' 4,907 (as at March 31, 2006) &    ' 216.0 billion yen (FY 2005)(   &    ' Polymers (films, resins, chemical products, spunbond),
environmental/advanced materials (engineering, pharmaceuticalproducts, functional materials), fibers (synthetic and natural fiberyarns, staple fibers, woven and knitted fabrics), health & amenity
products, other business areas (Non-Consolidated/Consolidated)       (FY 2005, Consolidated)

Non-consolidated
Consolidated(Billions of yen)
300

Health & amenity products, other11%

Environmental/
advanced materials

250

12%


   !

200
150
100

Fibers48%

Polymers
29%

50
0

'02

'03

'04

'05

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Corporate GovernanceCorporate
Governance                                                                 
   !       !         "     


Basic Policy for Corporate Governance
On March 2, 2006, Unitika announced a new
medium-term management plan called New
Progress 8 (NP-8) to be implemented over thethree-year period through FY 2008. The plan covers
both business strategy and corporate governancestrategy. Under the rapid decision-making, we workon the management of valuing the stake holder

through strengthening compliance and risk
management, and timely and accurate information
disclosure. Consistent adherence to thismanagement approach will increase Unitika's
corporate value in today's increasingly globalized
economy, to enable sustained growth.

Overview of NP-8
Management vision                    
Corporate governancestrategy

Business strategy#        !

Dual improvementareas#      $!

Implementation
Unitika's management system sets forth two
separate function areas: management decisionmaking/supervisory functions (corporate
governance) and business execution functions(management). The Board of Directors specializes
in the first set of functions, aided by theManagement Strategy Council, an organization thatprovides directors the opportunity for more in-depth
discussions on policies and issues pertaining to all
aspects of the Group's management. The second
set of functions are implemented by the Executive
Director System and a President's advisory bodyknown as the Business Execution Council, which
speed decision-making and demarcate areas of
responsibility.
On May 9, 2006, we created a new organization
known as the CSR/Compliance Group, along with abasic policy on internal regulation in line withJapan's Company Law and the regulations
enforcing it. On June 29, we reviewed ourmanagement organization, making changes such as
enabling directors to also serve as executive
officers. These changes are improving the Group's
overall management mobility and effectiveness.

*

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Internal Regulation

Internal
Regulation                   !          !        "
Basic Policy
Set forth in the eight items of Unitika's Basic Policy for Internal Regulation, specified on May 9, 2006.

          

1. Organization to ensure that the execution of job duties by directors and employees complies with allapplicable legislation and the Articles of Incorporation
2. Items pertaining to saving/managing information on directors' execution of job duties
3. Regulations on loss hazard management; other organizational elements
4. Organization to ensure that execution of directors' job duties is performed efficiently
5. Organization to ensure suitability of operations done by corporate groups
6. When auditors ask for appointment of employees to act as assistants
Items pertaining to organization for those employees, and to their independence from directors
7. Organization used for directors and employees to report to auditors; organization for reporting toother auditors
8. Other organizational elements to ensure that auditing by auditors is performed effectively

Organization
The diagram below shows the organization used forcorporate governance, and to ensure fair corporate
activities. The basic elements correspond to
Unitika's Basic Policy for Internal Regulation(outlined above). This organization is used to strictly

enforce internal regulation-compliance, information
saving/management, risk hedging, increasing theexecution efficiency of director job duties, andensuring the suitability of operations.

Organization
General Meeting of Stockholders
Appointing/terminating

Appointing/terminating

Appointing/terminating

Reporting) *   #   + &    "Discussion ofimportant issues  &  ,   
Appointing/terminating,
instructions

Auditing

ReportingAppointing/terminating,supervision

Reporting  # 
0    Determining suitability  !    of accounting auditing,witnessing auditing#  

Auditing$%   (              + $%    " &  



 $%     
&  ' $%   ( Reporting

Reporting*    . Instructions
Reporting

Reporting# ( 

Advisory
organization# 
# Promotion, management

Instructions
Reporting      $%  )  
      1 ' Business departments, Group companies

5UNITIKA Group

Corporate Social Responsibility
Report 2006

Approach to Compliance (1)On April 1, 2001, Unitika instituted a 12-page document called the Unitika Action Standards thatsets forth specific standards for implementing the Unitika Action Charter of 1998. The Unitika
Action Standards have been distributed to all company employees and directors, and we continue
to promote corporate activities dedicated to upholding the law and a public-spirited corporate
ethic. We have also been working to ensure safe product manufacturing and sales, andimplemented product safety management regulations on October 24, 1994. In response to theregulations enforced by the Company Law in May 2006, we created an internal regulation system
to promote companywide compliance.

Groupwide
Compliancewith Action
Charter andActionStandards

Compliance
Committee

Whistleblower
Contact Points

The Unitika Action Charter is our basic policy on
how best to fulfill our mission as a public-spirited
corporation. It applies to all directors andemployees of Unitika and Unitika Group
companies. In addition to our routine work on

interpreting and implementing the statutes andregulations relevant to our business areas, we makesure our employees are kept fully informed of our
Action Standards by having department heads
explain them whenever possible.

Unitika Action Charter
The Unitika Action Charter is a set of guidelines on how to act for the public good by complying withlaws and international standards and guidelines.
1. Develop and provide materials and services useful to the public, ensuring adequate
concern for the environment and safety.
2. Engage in competition fairly and freely, maintaining a sound relationship to political andadministrative areas.
3. Provide for communication with a wide cross-section of the public, disclosing corporate
information in a timely and impartial manner.
4. Ensure safe and accommodating workplace environments, and respect thepersonalities and individuality of employees.
5. Respect foreign cultures and customs, and contribute to regional development.
6. Respond resolutely to forces that threaten national or international order or security.
7. Act as a good corporate citizen to respect basic human rights, and engage in activities
that contribute to the public good.

Compliance Committee

To ensure compliance with the Unitika Action Charter,
we established the Corporate Action Committee at thetime of its creation. Chaired by the President, theCommittee keeps employees informed on the Action
Charter, sets specific plans and rules, and discusses
and executes compliance verification. In May 2006,
the Compliance Committee underwent a
reorganization for improvement.
In response to a public interest whistleblower
protection law put into effect by Japan's
government on April 1 2006, we implemented a setof whistleblowing (internal reporting) regulations on
the same day, making them part of ourcompanywide business regulations. We have set
up two contact points (one within the company andone outside the company) that employees cancontact to immediately report any malfeasance orillegal activities they encounter. The regulations arepart of the strict compliance measures we ensure
within the company, driven mainly by theCompliance Committee.

Cover of
Unitika Action Charter

Committee
chairmanCommittee
members

President

Directors

Unitika's Whistleblower Contact Points

Contact point 1

Contact point 2

Unitika Compliance Line

External Legal Help Line

Contact point: Within Legal Affairs Group in
Personnel/General Affairs
Department

Reporting Instructions
Reporting/consultations

Feedback

Contact point: Within Kuboi General
Law Offices

Reporting Instructions

Compliance Committee

Reporting/consultations

Committee chairman: Unitika President

Feedback

All employees working for Unitika Group
6

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Approach to Compliance (2)Ensuring
Product
Safety      
            
                                                                                   !  "

Central Committee on Product Liability  
Members include the head of each businessdivision, directors in charge of each businessarea, and directors in charge of management.

#   Creating basic policy pertaining to product safety
Creating yearly plans pertaining to product safety
Supervising results of product safety reviews
Keeping employees informed on product safety issues

Product Liability Review Board!  " !  "
$ % $ % 

Established in each business department, section and business unit.
The relevant division head appoints the committee chairman andsecretariat.

  
Department heads in charge of
production/technology,
department heads in charge ofsales, and members appointed
by the division head.

&    

Reviews pertaining to safety issues in
product designs/specifications,manufacturing and distribution
Reviews pertaining to product displays
and warnings
Creating product safety standards andsubmitting revisions or deletions

Product Liability Manager!  " !  "
&
&

Appointed by each division head in line with the type of business&    

Investigating and checking health and environmental effects of producthandling and use
Creating and reviewing product handling cautions for display on productcontainers, wrapping and tags
Creating and distributing product safety data sheets+

UNITIKA Group"   &  '(()

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Information Management

Information
Management                                                     

Information Security
To maintain the confidentiality of information assets
and prevent unauthorized use, Unitika set up the
Basic Policy on Information Security on April 1, 2005.
This document contains our Information Security
Declaration and sets forth our steadfast approach to

implementing it, while setting up a management andoperation organization driven by our Information
Security Committee. The Basic Policy is designed toensure protection and effective use of the information
we handle in the course of our business activities.

             !
1. We will take steps to ensure the security of information as set forth by our Information Security Policy.
2. We will create an information security management organization, and implement it in an systematicmanner.
3. We will educate and train our directors and all employees on our Information Security Policy, working
to prevent information security accidents.
4. We will work on improving our information security measures on an ongoing basis.
5. We will comply with all personal information protection laws and all relevant statutes and standards.
* 'Information Security Policy' refers to the documentation set forth and managed by the information Security Declaration, Basic
Policy on Information Security, Standards for Information Security Measures and Information Security Implementation Procedures.

Organization of Information Security Committee     "     " " 
Director in charge of Planning and Management Division  % 

In charge of management information:
Head of Management Planning Department

Head of Auditing Office

In charge of personal information:
Head of Personnel/General Affairs Department%              

Chairman: Head of Planning andManagement Division
Members: Head of relevant businessdepartment, head of relevant
management department

Chairman: Director in charge of Personnel/General Affairs Department
Members: Head of relevant businessdepartment, head of relevant
management department#           #           

Protecting Personal Information
In response to a personal information protection law
put into effect by Japan's government on April 1,
2005, we implemented a set of personal information
protection regulations on the same day throughout
the company. The strictly worded and implemented

regulations contain 33 detailed articles that coverareas such as collection and use of personal
information, appropriate management, auditing anddisposal methods, and penalties.

*

UNITIKA Group  "
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Basic Environmental Policy; Medium-Term Environmental Plan

Basic
Environmental
Policy           
                            
       
Unitika Global Environment Charter
The growth and development of mankind is rapidly
altering our planet's air, water and soil, threatening
both the global biosphere and our own future,since both must depend on a finite ecosystem. Asa corporation with more than a century of businessactivities contributing to the public good, we arehighly aware of the demanding conditions now
facing the global environment. The Charter is thedeclaration of our intention to focus more attention
on protecting and helping the environment,
making appropriate environmental action the coreof our business activities.

Basic Philosophy
Better living through technology, driven by corporate activities that help humans and nature coexist.

Action Guidelines

Medium-Term
EnvironmentalPlan    The Unitika Group always considers the effects of our corporate activities on the global
environment, following a rigorous set of management procedures during productmanufacture to prevent harm to it.

 
 We aggressively research and develop technologies to protect and help the global
environment.

   

We promote efficient use of resources and energy, and recycle limited resources.

  !"   

We organize a large number of PR activities that provide information on protecting andhelping the global environment, and promote a wide range of educational events.

#      


Following the mandates of the Charter, we draw on our complete range ofcompetencies to protect and help the global environment.

FY 2005 was the deadline we set for meeting thefour numerical targets of our third Environmental
Plan. While we met two of these targets-reductionsin industrial waste and energy consumption-we
failed to meet the targeted improvements in the loss
recycling rate in production processes and in ourenergy unit requirement. The progress on ourtargets is described in the section on our work on
reducing environmental impact starting on page 13.
We have examined and analyzed the data from ourefforts, and applied it to the fourth Medium-Term

Environmental Plan we have created, which starts
in FY 2006. More demanding target values havebeen set for the items that met their targets in thethird Plan, and we have renewed our commitment
to improve the items that didn't meet their targets.
Our four numerical target values are shown below.
The targeted improvement in the loss recycling ratein production processes has been set higher since
we have begun full operation of a new thermal
recycling program. FY 2008 is the deadline formeeting these goals.

Goals to Meet by Deadline $%& '(()*
1. Industrial waste +,   (Compared to FY 2004 level)
2. Loss recycling rate in production processes -(,  (Compared to FY 2004 level)
3. Energy unit requirement,   4. Energy consumption quantity (,   (Compared to FY 1990 level; deadline is FY 2010.)

UNITIKA Group     

     
!

Unitika's History of Environmental Preservation Activities

History ofEnvironmental
Preservation
Activities                             Pollution first became a major issue in Japan
in 1973. That year, Unitika created theEnvironmental Preservation Regulations,making a clear distinction between
environmental measures and outward-directed
production activities, to enable compliancewith regulatory and standards values.
In 1991, we created a new companywideorganization called the Environmental
Preservation Committee, followed in 1993 by
the Unitika Global Environment Charter. That
year we began yearly environmental auditing,establishing the basic direction for ourenvironmentally-aware management style thathas continued to this day. In 1998, we createdthe Unitika Action Charter, a document thatsets forth the basic action policy needed tofulfill our Unitika Group mission as a publicspirited corporation. Its first article sets forth
our responsibility for environmental and safety
awareness.
The Unitika Action Standards created andimplemented in April 2001 expanded on the
Unitika Action Charter by setting forth specificaction standards for Unitika organizations andemployees to comply with in the performanceof their routine business activities. The Action
Standards represent a clear step toward
corporate activities grounded in a mindset ofcorporate social responsibility (CSR). They
cover areas such as the environment, safety,
compliance, the public good, and coexistencewith stakeholders.
Unitika has aggressively worked on becoming
certified under ISO 14001-the international
standard for environmentally-aware corporate
activities. All production sites due to become
ISO 14001-certified had done so by May
2003. In FY 2003, we started activities to help
our affiliates receive ISO 14001, and havebeen conducting environmental audits ofeach company.

Unitika's Environmental
Preservation Activity History
September 1973
October 1991
April 1993
May 1993

May 1994

July 1996
September 1996
October 1997
January 1998
January 1999
October 2000
April 2001
October 2002
October 2002
October 2005

Created and implemented Environmental
Preservation Regulations.
Revised Environmental Preservation Regulations,established Environmental Preservation Committee.
Created and implemented Global Environmental
Charter.
Environmental Preservation Regulations werereborn as Environmental Regulations.
Established Environmental Committee,organization which meets annually.
Started environmental audits (once per year).
(Voluntary audits by each production site andinternal audits by headquarters staff.)
Created targets for first Medium-Term
Environmental Plan (FY 1997 to 1999).
Started publishing Kankyo, our in-housenewsletter on environmental issues.
Started activities aimed at becoming
ISO 14001-certified at our major production sites.
Created and implemented Unitika Action Charter.
Unitika Chemical was awarded ISO 14001
certification (first in Group).
Created targets for second Medium-Term
Environmental Plan (FY 2000 to 2002).
Created Unitika Action Standards.
Published Unitika Environmental Report.
Created targets for third Medium-Term
Environmental Plan (FY 2003 to 2005).
Created targets for fourth Medium-Term
Environmental Plan (FY 2006 to 2008).

ISO 14001-Certified Unitika
Organizations (as at March 31, 2006)
April 1999
November 1999
November 1999
January 2001
March 2001
March 2001
March 2001
March 2001
March 2001
March 2001
October 2001
October 2001
October 2001
October 2001
October 2001
December 2002
December 2002
December 2002
December 2002
May 2003
December 2003

Ad'all Co., Ltd.
Unitika Protec Sakoshi Ltd.
Unitika Sakoshi Plant
Unitika Textiles Ltd., Tokiwa Mill
Unitika Uji Plant
Unitika Uji Plastic Plant
Unitika Central Research Laboratories
Unitika Fibers Ltd., Uji Plant
Unitika Glass Fiber Co., Ltd., Kyoto Plant
Unitika Environmental Technical Center Co., Ltd.,
Kinki Office
Unitika Okazaki Plant
Unitika Fibers Ltd., Okazaki Plant
Unitika Plant Engineering Co., Ltd., Chubu Office,2nd Business Division
Nippon Ester Co., Ltd., Okazaki Plant
Unitika Environmental Technical Center Co., Ltd.,
Chubu Office
Unitika Tarui Mill
Unitika Textiles Ltd., Tarui Mill
Unitika Plant Engineering Co., Ltd., Tarui Group
Unitika Environmental Business Division
Unitika Textiles Ltd., Miyagawa Mill
Unitika Glass Fiber Co., Ltd., Tarui Mill"UNITIKA Group
Corporate Social Responsibility
Report 2006

Environment/Safety Management Organization

Environment/
SafetyManagement
Organization

To implement CSR-driven environmental awareness and safety measures, we have established amanagement organization headed by the President, consisting of several committees and businessdivisions.
Unitika's original environment/safety management
organization consisted of three committees andbusiness divisions. A new committee (the Corporate
Action Committee) was added in 1998. The
organization was again expanded in 2006, toencompass the Compliance Committee, becoming adriver of compliance promotion. The Compliance
Committee and Central Committee on Product
Liability are described in detail in the section on
Unitika's approach to compliance starting on page 6.
The Environment Committee, one of the originalcommittees, meets regularly every year. It discusses
and votes on major environmental issues such as
basic plans for environmentally-aware management,

and verification of their progress. It contains the two
subcommittees shown below. Specific topics are
discussed and examined in detail conceptually andtechnically, providing the kernels of environmental
measures.
The Central Safety and Sanitation Committee andthe Environment Committee act as departments
dedicated to safety and environmental measures,and have a higher level of authority in the Unitika
hierarchy than the Environmental Safety
Sections/Groups of Unitika production sites oraffiliates. They form an organization that provides theleadership to implement effective environmental
measures.

Environmental/Safety ManagementOrganization
President

Compliance Committee
Environment Committee
Environmental
Technology
Subcommittee

Environmental
Preservation
Subcommittee

Central Safety andSanitation Committee

Business division
Production site

Affiliate

Environmental
Safety Group

Environmental
Safety Group

Activity planning,
implementation and management

Central Committee
on Product Liability

Policy setting and auditing

The Environment Committee contains the two subcommittees below.
Environmental TechnologySubcommittee:
Works on (a) energy saving and (b) increasing the recycling rate, to find technology-based ways of
reducing losses associated with businessactivities.
Environmental Preservation Subcommittee:
Sets goals for (a) reducing environmental impactand (b) reducing industrial waste, in line withenvironmental preservation laws and the UnitikaGlobal Environment Charter. Works on efficient
implementation of these goals.

11

UNITIKA Group%  & '(()

 $Overview of Environmental Impact

Overview ofEnvironmental
ImpactEnvironmental Impact From Business Activities (FY 2005 Figures)
The Unitika Group is aware of the various types ofenvironmental impact caused by our businessactivities, and we are working to obtain accurate dataon its severity and on reducing it. The diagram below

shows the Unitika Group's inputs and outputs for FY
2005. The transfer and emission quantities of eachchemical regulated by the PRTR (Pollutant Release
and Transfer Register) Law are shown below.

Atmospheric emissions
SOx: 186 tons
CO2: 151,000 tons (carbon equivalent)
NOx: 1,144 tons Dust: 28 tons

Chemicals*

Water

Emission quantity: 161 tons
Transfer quantity: 133 tons

58.3 million m3

215,000 k(crude oil equivalent) !" 
 #  

  $ 

EnergyAll products
Production quantity: 341,000 tons

Waste products

Raw materials

Final external disposal quantity: 6,289 tons

Waste water
Waste water quantity: 54.6 million m3
COD emission quantity: 234 tons

External recycling
10,984 tons

*Chemicals requiring registration under PRTR Law

              

Acetaldehyde
Antimony and its compounds-caprolactam
Ethylene oxide
Ethylene glycol
1,4-dioxane
Dichloromethane

Asbestos
Dioxins
Terephthalic acidTolueneDichloropentafluoropropane
1,2,4-benzenetricarboxylic acid
1,2-anhydride

The transfer quantities and emission quantities ofchemicals have increased since the previous year,
but we will continue to work on maintaining or
reducing their environmental impact. We are

Boron and its compounds
Poly(oxyethylene) = alkyl ethyl
Poly(oxyethylene)= nonylphenol ethyl
Bisphenol A
Bisphenol A epoxy resin
Hexamethylene diamine

stepping up work on setting voluntary reduction
goals, investing in environmental preservationequipment, improving processes and optimizing
operation.

PRTR (Pollutant Release and Transfer Register) is a system that requires companies to measure and report thequantities of chemicals emitted from their plants into the environment or transferred out as waste products. A PRTR law
was put into effect in Japan in March 2000. Measurement, reporting and disclosure started with FY 2001 data.

'UNITIKA Group    &
&  '(()

Work on Reducing Environmental Impact (1)                                             

Air Pollutiont
70

Dust emissions

60
50
40
30
20
10
0

'98

'99

t
700

'00

'01
'02
Fiscal year

'03

'04

'05

The Unitika Group succeeded in greatly reducing
environmental impact from atmospheric emissionsof dust and SOx (sulfur oxides) in FY 2005, mostly
the result of installing a gas cogeneration facility at
our Uji Plant (one of our major plants) in October
2004. Both dust and SOx emissions fell greatly in FY
2005, with dust down 44% from the previous year
(to 28 tons), and SOx down by half (to 186 tons).
But NOx (nitrogen oxides) emissions were up 6.2%
(to 1,144 tons), partly due to an increase in gas
emissions from conversion to natural gas.
To step up measures to prevent air pollution, we areworking on reducing emissions quantities by adding
more gas cogeneration facilities, using more lowsulfur fuel, improving boiler efficiency and enforcing
operation management that eliminates waste.

SOx emissions

600
500
400
300
200
100
0

'98

'99

'00

'01
'02
Fiscal year

'03

'04

'05

        !   !  " #  $  % "

600

By enabling a switch from fuel oil C toenvironmentally-friendly natural gas as anenergy source, cogeneration systems cangreatly reduce SOx and dust, and saveenergy. A gas turbine cogeneration system
fueled by natural gas and providing a 15,000
kW generation capacity began operation in
April 2006 at Unitika's Okazaki Plant. By
saving energy, it reduces CO2 and helps
reduce environmental impact.

400

Gas cogeneration system used as generator at Unitika's Okazaki Plant

200(City gas 13A)

t
1,400

NOx emissions

1,200
1,000
800

Fuel

0

'98

'99

'00

'01
'02
Fiscal year

'03

'04

'05

Outside air

Plant power

Burner
Generator No.1
Powerin siteGenerator
Steam turbine generator No.4
ExhaustIntake cooler
Powercompany

Plant
power

Steam
for plant

Fuel gas compresso
Refrigerator
for intake cooling

Bypassstack

Stabilizing burner

Gas turbine No.1

Exhaust gas boiler No.1

   

Pure water*+UNITIKA Group  



 





Work on Reducing Environmental Impact (2)Water
Pollutiont
500

The COD emissions quantity for FY 2005 was down
9.9% from the previous year (to 234 tons), while thetotal waste water quantity was roughly the same
(54.55 million tons). To enable reductions
independent from factors such as production
volumes, we will work on developing newtechnologies, improving management of emissions
sources, and recycling and reusing cooling water.

COD emissions

400
300
200
100
0

'98

Millions of tons

'99

'00

'01
'02
Fiscal year

'03

'04

'05

'04

'05

Total waste water quantity

70
60
50
40
30
20
10
0

Waste
Products

t
15,000

'98

'99

'00

'01
'02
Fiscal year

'03

We have met the 10% waste reduction target (fromthe FY 2001 level) set in our third Medium-Term
Environmental Plan, reducing waste by as much as
1,218 tons (16.2%) from the previous fiscal year.
This success can be ascribed to the waste sortingand collection programs put in place at each
Unitika production site, and other improved waste
reduction efforts.

Quantity of processed industrial waste products

10,000

5,000

0

'98

'99

%
100

'00

'01
'02
Fiscal year

'03

'04

'05

'03

'04

'05

Rate of recycling80

The rate of recycling has generally been dropping
relative to FY 2001 (the comparison year), butpicked up somewhat starting in FY 2004. This fiscal
year, the rate increased 1.7 percentage points fromthe year before, to 91.4%. We are more strongly
committed to working on waste reduction, and plan
to step up our thermal recycling using waste
plastics.

60
40
20
0

'98

'99

'00

'01
'02
Fiscal year

UNITIKA Group  



 





Work on Reducing Environmental Impact (3)Energy Saving(Global Warming)

Thousands of tons

CO2 emissions (carbon equivalent)

200
150
100
50
0

'98

Thousands of k

'99

'00

'01
'02
Fiscal year

'03

'04

'05

Energy consumption quantity (crude oil equivalent)

300
250
200
150
100
50
0

'98

'99

'00

'01
'02
Fiscal year

'03

'04

'05

Energy unit requirement (indexed to FY 1990 level =100)
120
100
80
60
40

The signing of the Kyoto Protocol has brought theurgency of global warming prevention work to theattention of the world. Production sites need toreduce CO2 and other greenhouse gases, and takefurther steps to save energy.
To work toward these goals, Unitika takes precise
measurements of CO2 emissions quantities, energy
consumption quantities and energy unit
requirements.
Our Medium-Term Environmental Plan targets anenergy consumption reduction of 10% by 2010
(compared to the FY 1990 level).
We had already achieved a 23% reduction in FY
2005, a major cutback that greatly helps reduce
CO2 emission. This success is mainly the result of
reducing production quantities throughout theGroup, steady energy-saving activities, process
improvements, heat recovery and water reuse. Our
energy unit requirement in FY 2005 was worse thanthe previous year, mainly due to a drop in
production, and to model diversification that altered
the relative quantities of each brand produced.
We will continue to work on preventing global
warming from an all-encompassing perspective,
examining various indices throughout the
manufacturing process.

20
0Distribution

'98

'99

'00

'01
'02
Fiscal year

'03

'04

'05

To reduce the environmental impact oftransportation needed for inputs of raw materials
and outputs of products and waste products,
Unitika implements the four distribution guidelines
on the right. These guidelines have helped us makeacross-the-board improvements in transportation
efficiency, and in reducing energy consumption
and emissions gases.

We will shorten transport distances by lending,borrowing or swapping general-use products ormaterials of equal quality with other companies.
Within Japan, we will use container transport bysea or rail whenever possible, since these methods
enable mass transport and are energy-efficient.
Forklifts used for work inside sites will be changed
from engine-driven models to environmentallyfriendly battery-driven models with zero emissions
gases and low noise.
We will reduce transportation energy consumption
by using flexible containers that can wrap larger
numbers of products instead of paper bag
wrapping materials, and by shaping containers formore efficient truck loading.

Transportation

In line with an April 2006 revision to Japan's laws
pertaining to rationalized energy consumption, we
have started energy-saving initiatives for
distribution.

UNITIKA Group    



Technology and Products for Environmental Safety (1)                          

Water
Treatment
Facilities   

Improved Combined Sewerage
Treatment System

MarimoHigh-Speed Filtration System

Since large volumes of combined

Marimo is a high-speed filtration system developed by

sewage flows into sewage

Unitika that offers high performance and uses a special

treatment sites in a short time

fiber as the filtration material. Marimo's high-speed

when it rains, the sites can't treat

function provides a filtration rate five times faster thanit fast enough, and untreatedconventional sand filtration systems. Offering asewage is released into rivers or

significantly higher level of treatment efficiency, it

Advanced water supply
treatment facilities

other waterways. To solve thisenables easy cleaning and draws on Unitika's many

problem, Unitika has developed

years of expertise as a fiber manufacturer. Marimo is

Sewerage facilities

an improved combinedused in a wide range of applications in tertiary waste

sewerage treatment system driven by our Marimo high-water treatment, waste water reuse,

speed filtration system, enabling rapid and stableindustrial water filtration,

treatment over short amounts of time. It efficiently

and manufactured water

performs variable high-speed filtration on top/bottom

pretreatment.

Water supply facilities
Water supply membrane
filtration equipment

Advanced sewage
treatment facilities
Granular desphosphorizing
equipment
Agricultural community
waste water treatment facilities
Fishery community waste
water treatment facilities
Seepage water treatment
facilities in final disposal sites

counter-currents, providing high treatment capacity inrain or shine. It removes pollutants at a filtration rate of
up to 2,000 m/day in rain, and at a standard rate of
1,000 m/day in clear weather. It is a high-performance

Waste water treatment facilities
in garbage incineraterssystem offering stable treatment capacity at a low cost.

Industrial waste water
treatment equipment

Sludge Reduction Equipment

Sewage treatment equipment

To enable the type of sustainable industrial processes

Sludge reduction equipmentthat will ensure the future of mankind and our planet,

Sludge composting equipment

Unitika has developed equipment to reduce the volume

Marimo filtration materialof sludge generated when treating biological materials.

Biological Contact Filtration Facility

The equipment continuously mills

A clean water facility that uses spherical carriers of

the excess sludge generated inpolyester fiber as the filtration material. Biologicalbiological material treatment tanks

membranes form on the surface of the filtration material,using fine ceramic beads. Whenand microbes such as nitrifying bacteria and ironthe milling has solubilized theoxidizing bacteria propagate within the filter layer. The

sludge, it is fed back into the

biological purifying properties of these microbes

biological material treatment

efficiently remove ammoniacal nitrogen, iron andtank to biodegrade.
Fine ceramic beads

Phosnix
Granular Desphosphorizing Systemmanganese. The facility can fit within a small footprint andhas a high pure water treatment capacity.

A system that recovers phosphorus in waste water as
granules of magnesium ammonium phosphate (MAP),a substance that can be effectively used as a fertilizer.

MAP

Kita Koriyama water purification facility

UNITIKA Group  



 





Technology and Products for Environmental Safety (2)Garbage
Processing
Facilities

Next-Generation Stoker Incinerator:
Uniburn System 21

Advanced-Function Incineration Residue
Melting System: Unimelt System 21

Unitika started constructing city garbage incineration

Developed as the result of our research on reducing andfacilities in 1971, and has now built 90 facilities.

cleaning incineration residue, the Unimelt System can

Uniburn System 21 is a next-generation city garbage

melt incinerator ash, fly ash, incombustible residue left

incineration system that draws on these many years ofafter processing bulk garbage, or incombustible residue

experience, developed with the aid of German

mixed in with combustible residue. Waste plastic that

Gasifying-melting furnaces

technology for stoker incinerators with boilers. Its low

previously couldn't be reused can be melted together

Incineration residue
melting furnaces

air ratio and high combustion temperature improve thewith other garbage, making the system effective forheat recovery rate and enable significantly cleaner

plastic thermal energy applications. Unimelt is a

Garbage crushing andsorting facilities

exhaust gas. These features reduce environmental

revolutionary system that enables residue to be cooled

impact and lower total garbage processing cost.

into slag after melting, for effective use as a construction

Stoker incinerators
Fluid-bed incinerators

RDF (refuse-derived fuel)facilities

material. Unimelt can also melt items processed atlandfill disposal sites, enabling recycling at those sites.

Exhaust gas treatment
equipment
Fly ash treatment equipment
Regenerative-heat
deodorizing equipment

Yachimata City Clean Center

Air Pollution
Deodorizing equipment

Eco Slag Center at Tottori Prefecture's Greater Western Area
Administrative Management Union

Environmental Surveys, Measurement and Analysis:
Unitika Environmental Technical Center Co., Ltd.
Unitika Environmental Technical Center (UETC) uses

experienced in soil surveys (a recent area of concern in

the latest equipment and technology to carry out

Japan), and has measures to combat soil andenvironmental surveys, measurement and analysis,groundwater pollution permanently. UETC also helps

along with various investigations needed by several

protect living environments through activities such as

Pollution cleanup measuresindustries. UETC is certified by Japan's Ministry of thesick building surveys; air quality, weather, noise andPharmaceutical products,
resins, filtration materials

Environment as a qualified contractor for dioxin

vibration measurements; technical support for water

analysis, and has gained a reputation for solid

treatment; exhaust gas, odor and work environment

reliability. To enable more accurate analysis, UETC canmeasurements; and analysis of river water, waste water,

analyze trace amounts of dioxins. It is highly

drinking water, asbestos, and insulation oil trace PCBs.

Dust collection equipment
Soil surveys/analysis
Soil pollution cleanup
measures

Extracting a sample with a simple boring machine

Environmental hormone analysis

UNITIKA Group$     " "  %&&'

Technology and Products for Environmental Safety (3)Recycled
Polyester Fiber

Uniecolo!      The demand for PET bottles is steadily increasing, and509,000 tons* of PET bottle resin was produced in FY!    

2004. Reflecting this increase, the rate of waste PET
bottle recovery has risen to 62.3%. As part of ourefforts to preserve the environment, Unitika has been"          

active in PET bottle recycling. Uniecolo was developedby drawing on our outstanding existing fiber forming
technology. Offering soft texture and good body, it is$    *an environmentally-aware fiber with the same features
as conventional polyester, and designed to enable
reuse of limited resources.

+  

*According to figures from The Council for PET Bottle Recycling.

,    

  ,  *   

    *  ,$   ,    

New Natural
Fibers

Sylph
Sylph is a plant fiber created from natural pulp. The

no harmful waste products during the raw stock

raw material is pulp from trees, which undergoes anmanufacturing process, and the raw material isadvanced chemical treatment in the manufacturing

harvested through planned felling of fast-growing trees,

process. Sylph is a new natural fiber, a material

to minimize environmental impact. The environmental

midway between natural and manmade-a naturalprotection Sylph enables is an apt symbol for ideal

material controlled by human technology. It generates

coexistence between man and nature.

  "  #           

Cotton, hemp, others

Natural fibers

Viscose,othersRecycled
cellulose
fibers  
   

 

   
  



RestoredSylph
Semi-synthetic
cellulose
fibers      

Acetate, triacetate, others()

UNITIKA Group  



 





Technology and Products for Environmental Safety (4)Recycled
PolyesterNonwoven
Sheeting

EcomixSince recycling is an important part of ourenvironmental preservation efforts, Unitika hasdeveloped, by outstanding existing spunbond            
Nonwoven fabricproduct scrap recovery

PET bottle recovery

technology, a polyester filament nonwoven fabriccalled Ecomix, made from scraps of PET bottles or
nonwoven fabric products. Ecomix has alreadyreceived the Japan Environment Association's Eco
Removal of impurities
such as caps and labels

Mark certification (No. 00105029). With outstanding
water permeability and endurance, Ecomix has been

Cut into fine fragments.

Cut into small flakes.

permitted for a wide range of public works
applications, including protective mats for water barrier
sheets in waste disposal sites, sheets for erosion andtorrent control in banking reinforcement construction
and harbors, suction-preventing sheets for riverbank

Heated into chips.

protection, and plastic board drains. With its costeffective wide sheets and highly elastic structure,
Ecomix can easily handle warping and projections, andis gaining popularity as sheeting for today's needs.

Activated charcoal is mixed into chips,
which are drawn out to form fiber.
Made into sheet, hot-rolled to melt.

Finished nonwoven fabric sheet
is created.covery

Anticorrosive
Sheeting

Segurova
Japan's River Law was partially revised in June 1997, andwater currents from embankment surfaces and riverin line with the new law, Unitika Fibers developedbanks, enabling a new anticorrosion sheeting-based

Segurova, an anticorrosive sheeting material designed toconstruction method. Segurova has already become theblend in with natural environments and landscapes.

first product in the industry to be awarded the Public

Manufactured using a 3-D weaving technology to ensure

Works Research Center's Anticorrosion Sheet Performancethat gaps and thicknesses are kept constant, Segurova

Evaluation Certification (certification No. 0001).

resists water currents, and provides high corrosion
resistance. Designed for weather resistance andendurance, it is mainly comprised of black dyed-in-thefiber polyester monofilament. To give some components
partial dimensional stability, they use binder fibers with acore and pod structure. The sheet top and bottom layers
have a honeycomb structure for easy filling with earth or
sand. Segurova can be used in embankment protection
works to reinforce the corrosion resistance of herbaceous
plants such as lawns or seedlings. It stops corrosion from

UNITIKA Group
Corporate Social Responsibility
Report 2006

Technology and Products for Environmental Safety (5)Terramac
Terramac is a biomass material made from a polymer

utensils, cups, wrapping films, cosmetic bottles,

derived from plants such as corn. Biomass materials areteabags, planters, trash bags and all areas of consumer

organic resources derived from recyclable biologicaldemand. Unitika was the first company in the world tosources, which don't use any fossil fuel resources.

develop products derived from polylactic acid (the base

Terramac ultimately degrades into carbon gas andof Terramac), when we succeeded in producing foamed

water, which are absorbed by plants such as corn, andplastic containers and food containers able to hold hot

in turn can be turned into Terramac again. So Terramac

water and be microwaved. Adding kenaf fiber (derived

is part of the natural world's original 'recycling system'.

from plants) to Terramac greatly improves its heat

Conventional plastic products are made from oil, a

resistance-in fact, one of its applications is in mobile

limited and non-recyclable raw material that will run out

phone casings. Combining the natural advantages ofin the not-so-distant future if we continue using it.

plant material with human technology, Terramac is an

Terramac is now an extremely promising alternative. It

attempt to create the ideal material for both the planet

has a wide range of applications in clothing, eating

and its human inhabitants.

Unitika's proprietary technologytioneforming
Polylactic R
acid

Terramacess

Degrading enzymes

Products

The Terramac System for
Recycling Substances

Co

Starch
Se

pa

ra
tio
n

Biomass resources(such as corn)

Carbondioxide
Water
esis
h
t
n
y
Photossroces

cling py
To recmb
u s t io
n
deg
radin
g

Lactic acid bacteriaing

Lacticacid

BioCatalysts

oc
Pr

Po
ly m
er

iza

Fermentation

Plant-Derived
Biomass
Material

Temperature
HumiditypH

Light
Minerals
Human activities, chemical reactions
Reactions caused by activities of organisms

Terramac is extremely safe for human health and the environment.
Biodegradability:

JIS K6953 (ISO 14855)
Passes the test of beneficial and extreme biodegradability and destructibility under controlled compost conditions.

Labeling,
Conforms to GreenPlaÆ Identification and Labeling System/certification standard set by Biodegradable
certification standard: Plastics Society (BPS). (Has been placed on Positive List, and been certified with the GreenPlaÆ Mark.)
Food sanitation:

Conforms to standards and criteria set forth in Ministry of Health, Labour and Welfare Notice No. 370(Food Sanitation Law). Certified under US FDA/FCN (Food Contact Notification) No. 178.

Bacterial resistance:

Polylactic acid has been reported to have antibacterial properties.
(Bokin bobai, Vol. 29, No. 3, pp. 153 to 159, 2001)

Low combustion heat: Low combustion heat of approximately 4,500 kcal/kg (same as paper) is one-half to one-third the value of oil-based plastic,so can't harm incinerators. Does not generate toxic gases (dioxins, hydrogen chloride, NOx or SOx) when incinerated.

MobilephonesMicrowaveable utensils

Windowenvelopes

Can be used forthese applications.
Utensil trays

Polylactic acid uses

PLA.

* NatureWorks and the EcoPLA design are registered trademarks of NatureWorks LLC.

20

UNITIKA Group
Corporate Social Responsibility
Report 2006

Environmental Accounting

Environmental
Accounting

To step up our work on environmental preservation, we compile and release environmental
accounting using data highly transparent to the public.
Unitika's environmental investment for FY 2004 was
180 million yen, spent mainly on preventing
pollution and raw material recycling. Environmental
expenses were 2.11 billion yen, mainly waste
processing (including recycling expenses),maintenance and management of equipment toprevent pollution, and product R&D forenvironmental preservation. We use the guidelines

released by the Ministry of the Environment in May
2005 when calculating environmental accounting
data, using the Environmental Guidebook put out
by the Ministry in March 2001 as a reference.
Unitika will continue to release clear and accurate
environmental accounting data.
Method of tallying environmental accounting data
Investment amounts include investment on items forwhich the environment is not the main objective.
Expense amounts include labor costs and depreciation.

Environmental Costs
Category
Pollution prevention costs
Businessarea costs(Millions of yen)

Capital investment Cost
161

Remarks

666

Pollution (water, air and noise pollution) prevention measures

Environmental preservation costs

019Energy saving, global warming prevention

Resource recycling costs

14

817

Waste disposal, recycling

Upstream/downstream costs

0141

Packaging material recycling

Management activity costs

6

94

Gaining environmental management system certification,
environmental education, impact monitoring

R&D costs

0301

Developing environmentally-friendly products

CSR costs

044

Forestation improvements, beautification campaigns

Environmental damage costs

029

Quantity-based tax on environmental impact of SOx emissions

Total

181

2,111

Economic Effects
The table on the right illustrates economic effects
by listing items with a clear basis for calculation,that have high substantive benefits forenvironmental preservation. The expenses saved
from energy saving, waste reduction and resource
recycling have been calculated in comparison to
the previous fiscal year. Note that inferred benefits
have not been calculated, such as savings to the
public from environmental preservation efforts.

(Millions of yen)

Item
Reduction in energy expenses

Amount72

Waste reduction

9

Income from sale of recycled resources

207

21

UNITIKA Group" !  " 
 #$$%

 Concern for Our Employees (1)                                          Personnel
SystemPersonnel Evaluation System
Unitika's personnel evaluation system emphasizes
employee effort, and is designed to increase theorganization's vitality. It is a results-driven system thatawards greater benefits to employees who achieve
greater success or tackle more difficult challenges. A
biannual goal management system and annualcompetency evaluation system are used along with

our human resources development program. They
impartially evaluate how well each employee ismeeting their goals, and help them set new goals todevelop their abilities. Supervisors meet with each
employee to discuss their evaluation results,
ensuring that everyone receives proper feedback, forbetter transparency and communication.

Self-Reporting System
Once a year, at the time of the annual personnel
evaluations, employees submit a report sheet to theirsupervisor to self-report how much aptitude they feelthey have for their position. The report covers threemain areas: (1) the employee's aptitude for theircurrent position, (2) what position the employee would
like to be posted in, and (3) whether the employee
would like to be sent overseas. The employee enterstheir self-evaluation and preferences, and thesupervisor evaluates each item and adds comments.
The Personnel/General Affairs Department uses
supervisor comments to ensure suitable job
placements, aided by discussion with department
heads. When needed, the Personnel/General Affairs
Department consults employees to ensure theirwishes are also taken into consideration.

Rotation System

Equal
Opportunity

Unitika is aware of the importance of job rotation in
fostering outstanding human resources. Our
practice of periodic job rotation (especially foryoung employees) helps employees improve theirabilities by giving them the opportunity to work inseveral departments, and helps us spot candidates
to fast-track.

Women Employees

Rehire System

Unitika's women employees are valued for theirabilities and perspectives. We hire a large numberof female employees and have no gender-biased
hiring or promotion policies. For the past five years,
women have accounted for 15% of the college
graduates we have hired, and several women
employees have risen to management positions.

Unitika has a senior employee system that enables
employees to continue in the same job after
reaching the age of 60. We welcome employees
who want to continue working, and in FY 2005, ourrehire rate was 42.3%.

Number of Employees Taking Childcare or Caregiver Work Leaves
To enable female employees to balance work andfamily, and respond to the needs of Japan's aging
society, Unitika allows work leaves for childcare orother caregiving. The system is open to both sexes,
and male employees have been taking childcare
work leaves since FY 2003.

                    

FY 2001

26

0

FY 200224

2

FY 200325

2

FY 2004

27

1

FY 2005

17

0##

UNITIKA Group#
"%   / % 

Concern for Our Employees (2)

Human
Resource
Development

Unitika believes that raising the ability of each
employee in the organization is crucial for achieving
outstanding business goals. Human resource
development is therefore an important focus for us.
We approach it through two areas-our personnel
system that sets forth employee work conditions
and evaluation methods, and systems to encourage
ability growth, such as ability development andtraining systems. Unitika Training Center is the
dedicated training center we have created to 

implement our approach. It is used for several
different types of training taken by a large numberof employees. To help employee self-improvement
efforts, Unitika offers a job qualification assistancesystem, correspondence courses, and full-time
study courses at universities in Japan. Many of ourhighly-motivated employees are eager to takeadvantage of these benefits.

          

  $% % $ % &&   
1. Training for promoted employees (182 students)
2. Young employee education (242 students)
New employee training, basic knowledge course,
manufacturing department leader development course "%'  "  ()*   
1. Competency improvement training
Strategic management game training, better businessnegotiation training, business coaching training,
solution management training, better technicaldevelopment and planning training, legal training,
logical communication
2. On-the-job development education
Supervisor training, business leader training

Employee
Mental Health

Since Unitika feels that mental health is anincreasingly important issue for employees as they
move up the corporate ladder, every Unitika
employee undergoes mental health training when
they are promoted to a management position. We
encourage managers to be aware of their
managerial role and to take care of their own mental

Human Rights

The entire Unitika Group is an active advocate ofhuman rights, and has appointed a director in
charge of supervising all employee human rights
issues. This director oversees the Companywide
Human Rights Education Committee, and there are
Workplace Human Rights Education Committees at
each Unitika production site to implement theCommittee's mandates. Unitika is also a member of
the Osaka Social Integration/Human Rights Issues
Corporate Communication League, so deals with awide range of human rights issues. Sexual
harassment is another issue that we take very
seriously. We have set up a Sexual Harassment
Committee and consultation office, and take steps
to raise the awareness and recognition for the
problem among all employees.

health. We hold specialized training sessions given
by outside specialists such as psychology
consultants and health counselors. The employee
support system was established with guidance andsupport from outside mental health experts. Inhouse doctors are also available for early treatment
counseling.

     + "   "   %%  !"  #%

  

!"  ,$  ## -   .%"   


 



!"  #!"  #




0

UNITIKA Group       

 Giving Back to the Community

Giving Backto theCommunity                                               
Local Environmental Improvement
Building on the success of the Kyoto Protocol, Kyoto has

An environmental preservation council run by the major

created an environmental administrative organization

corporations in the city of Ako in Hyogo Prefecture holds

that includes a system called Eco Kyoto 21 that certifies

a cleanup campaign around the Chigusa River as part ofand registers corporate leaders in environmental

its environmental aid measures. The Sakoshi Plant

awareness activities such as CO2 or waste reduction.

helped in the campaign, taking part in the cleanup with

Unitika's Uji Plant has participated in the system from its

employees from other corporations on October 25, 2005.

inception, and in May 2002, was certified and registeredunder the system's Ecostyle category as a site carrying
out highly original environmental awareness activities.
The Uji Plant has been active in volunteer activities tobeautify the area surrounding it, with over 1,200 Unitika

Cutting back theundergrowth in
Hidakagawa-cho

employees taking part in Clean Uji, an event the Uji
Chamber of Commerce and Industry holds every March,
July and September. The event helped clean up theUnitika no Mori,
Hidakagawa-cho

area around the Uji Plant.

In 2003, Unitika Union celebrated its 30th year inbusiness by starting a program called Midori no Plan('Green Plan') designed to give back to the community
and raise environmental consciousness. Midori no Plan
The July Clean Uji event

volunteers created a wooded area they named Unitika

Other Unitika production sites are also working on

no Mori ('Unitika Wood'). Three species of local trees

beautifying their surrounding environments. About 150(sawtooth oak, quercus serrata, Japanese cypress)

employees of the Okazaki Plant took part in a local

were planted in a two-hectare area of mountain forest involunteer program to clean up the area around the plant

Hidakagawa-cho (Wakayama Prefecture). Employees

on a Saturday in March 2006.

visit the area to cut back the undergrowth several times
per year. In September 2005, twenty-five employees
performed this task to enable better tree growth, andtook part in a “Forest Patrol” workshop on theimportance and splendor of the woods. In April 2006,
bracken was picked from Unitika no Mori, letting a large
number of employees enjoy the wood's growth.
Responding to Japan's increasing focus on publicspirited volunteer projects, we established a volunteer

Cleanup around the
Okazaki Plant

foundation in 1992 and began a range of activities
inside and outside the Company. In Japan, we haveheld support activities in facilities for the handicappedand conducted training meetings to expand the frontiersof volunteer activities. We have also worked to step up
volunteer activities overseas, where we have sent
Cleanup around the Chigusa River(Sakoshi Plant)

volunteers to work camps for international exchanges,
and have raised money for disaster relief.

UNITIKA Group !  " #!  # !

$ Giving Back to the Community

Giving Backto theCommunity

PR Activities
Expo 2005, Japan's largest exposition in 2005, featured

the utensils became damaged. Damaged items werea large amount of biodegradable utensils and canvas forcomposted. The verification work provided useful data

venue information boards made of our Terramac

for helping advance Japan's recycling infrastructure. The

biodegradable material. While many visitors no doubt

Unitika department responsible for Terramac took part indidn't notice the Terramac product name, the exposition

this work at the preview before the main exposition.

gave many people the chance to use handy utensils andSince Terramac products couldn't be sent to thetrays made of the biodegradable material.

composting experiment if PET or polystyrene containers

Many types of experimental verification work on

were mixed in with them, the department helped with theenvironmentally-friendly products and methods were

sorting and recovery work done during the preview, thencarried out inside the venue during the exposition, andaided the research on recovery methods so that

Terramac was given the mission of aiding them.

experimental verification could continue.

Researchers examined sorting methods for returnableutensils derived from biomass, and checked how easily

Expo 2005 information boards

Terramac molded products used at the exposition!        

Terramac, Unitika's durable plant-derived plastic
material, has won the Ecology category of the
Nikkei BP Technology Award.
Terramac is manufactured by using proprietary
technology to reform polylactic acid derived fromplants such as corn, and then introducing an
additive to promote crystallization. It dramaticallyincreases the heat resistance attainable from plantderived plastics from 60 to 120˚C. It improves
shock strength and bending elasticity, andexpands the range of applications possible forplant-derived plastics. Terramac was highly rated
for these characteristics.
The Nikkei BP Technology Award is usuallyawarded to technologies developed in Japan thathave been featured at some time in the past year ina Nikkei Business Publication magazine or Web
publication. The award in the Ecology category is  awarded to technologies designed to help orpreserve the global environment or a local
environment, or contribute to reducing
environmental impact.

Nikkei BP Technology Award Ceremony held on April 7,2006 at Hotel Okura in Tokyo. From left: Head Researcher
Fumio Matsuoka, Senior Advisor Masatsugu Mochizuki,
Section Head Norio Fukawa and Group Head Kazue Ueda
from Unitika; and Research Department Head Masatoshi Iji
and Manager Makoto Onozawa from NEC.

%UNITIKA Group  



 





Giving Back to the Community

Giving Backto theCommunity             
            !          "                  #       
Disaster-Readiness Activities
Unitika's internal standards used to enforce safety

production sites using boilers or pressure containers

management at production facilities are a set of guidelines

require yearly statutory inspections, inspections need only

for prior evaluations of new equipment safety/sanitation

be carried out once every two years if a proper voluntaryand environmental soundness. These standards are usedmanagement system is in place as approved by theto prevent disasters when installing or renovating

Ministry of Economy, Trade and Industry. Unitika's Uji Plant

equipment, and call for two rigorous inspections-onceand Okazaki Plant have received approval for theseduring the design phase, and once at completion. While

biannual inspections.

On March 2, 2006 at the Uji Plant, a joint firefighting
training session was held with about 100 participants fromthe Uji Fire Department, Osaka Gas Group and Unitika
Group. The training dealt with a hypothetical accident inwhich gas leaked from the outlet pipe of gas compressor
No. 1 in the gas turbine generator, causing a fire from an
unknown ignition source that results in a single victim.
Participants were able to check how well they performeda series of actions set forth in the emergency manual,including discovering the fire; reporting andcommunicating the situation; evacuation guidance, headcounts and reporting; saving victims; reporting to Gas
and Power Investment's Osaka headquarters, and initial

Plantwide disaster-readiness training (Okazaki Plant)

fire extinguishing. When the Uji Fire Department arrived,
participants worked with them to save one victim, thenended the session by giving a series of reports. The
Okazaki Plant held a similar Plantwide training session on
November 17, 2005, spraying water on a hazardous
material storage tank to extinguish a fire.

Three photos above: Joint firefighting training (Uji Plant)UNITIKA Group        

Giving Back to the Community

Giving Backto theCommunity      !             "#     $     !%!  "  "   &Safety and Health Activities
To raise employee safety awareness, Unitika creates
Number15

medium-term (three-year) safety and health plans that       

we have been implementing since 1969, and we
started holding yearly Groupwide safety and healthconferences in 1974. Our latest medium-term plan (the

Rate
1.5
Number of work leaves
Rate of work leaves

10

1.0

5

0.5

13th) runs from 2005 to 2007. It calls for research on
the creation of a safety and health management
system, and targets complete eradication of potential
hazards (zero hazards) through substantive safety0

improvements and ongoing risk assessments. The
plan's mental health measures include inviting'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05
Fiscal year

0.0

Rate of work leaves = Number of casualties requiring work
leaves per million work hours

psychiatrists to give presentations at our safety andhealth conferences, and mental health training sessions

Unitika had zero work leaves in FY 2005, and we will

for management-level employees given by industrial

make further improvements on our safety and healthcounselors. As a corporate risk management measure,activities to maintain this perfect record.

we have also started an employee assistance program(EAP) open to all employees and their families,
providing them with health management services.

        

1. Ensuring safety and health is the foundation of many types of business activity.
2. Ensuring safety and health is the most important obligation of executives and managers at
each level of the corporate hierarchy.
3. All employees shall take part in activities for ensuring safety and health.
4. We shall comply with all relevant labor safety and sanitation laws and workplace safety andhealth standards to ensure safety and health.
5. We shall implement an ongoing safety and health management system to ensure safety
and health.

UNITIKA Group  



 





Production Site Information (1)Uji Plant
Location: 5 Uji-Tonouchi, Uji-shi,
Kyoto, Japan 611-0021
Site area: 348,292 m2
ISO 14001:
Certification No. JCQA-E-0058
Certification No. JCQA-E-0249
Main products: Nylon resin, nylon fiber,
engineering plastics, nylon/polyester film
Site manager:

Air

Water

Hiroshi Yokai

Okazaki
Plant

Location: 4-1 Hinokita-machi,
Okazaki-shi, Aichi, Japan 444-8511
Site area: 315,480 m2
ISO 14001:
Certification No. JCQA-E-0292
Main products: Polyester resin, polyester
fiber, spunbond (filament nonwoven fabric),
medical equipment, environmental business
Site manager:

Air

Water

Kenichi Shimomori

Toyohashi
OfficeLocation: 101 Matsunami, Akebono-cho,
Toyohashi-shi, Aichi, Japan 441-8527
Site area: 270,804 m2
Main products: Nonwoven fabrics(sheeting for civil works and roofing
applications), biobusiness (cauliflower
mushroom: Sparassis crispa)

Air

Water

Site manager:

Takeshi Chashiro    
 
 

   

SOx total

Nm3/hour

29.1

NOx

ppm

199

30

Dust

g/Nm3

0.025

0.02
441

4.0

COD load

kg/day2,046

Suspended matter

mg/

30

6

Oil

mg/

16

< 0.5

Nitrogen

mg/

3.0

1.7

Phosphorus

mg/

1.0

< 0.01   

SOx total

Nm3/hour

34.89

0.8

NOx

ppm

210

172

    
 
 

Dust

g/Nm3

0.1

0.023

COD load

kg/day

718.7

90.1

Suspended matter

mg/

20

10

Oil

mg/

10

<1

Nitrogen

mg/

60

1.9

Phosphorus

mg/

8

0.56

   

SOx total

K value

11.2

NOx

ppm

180

65

Dust

g/Nm3

0.3

0.003
4.8

    
 
 
0.049

COD load

kg/day11.9

Suspended matter

mg/

70

7

Oil

mg/

5

<1

Nitrogen

mg/

120

15.0

Phosphorus

mg/

16

0.37

   

SOx total

K value

11.5

NOx

ppm

180

66

Dust

g/Nm3

0.3

0.004

Tarui Mill
Location: 2210 Tarui-cho, Fuwa-gun,
Gifu, Japan 503-2121
Site area: 156,224 m2
ISO 14001:
Certification No. JCQA-E-0323
Main products: Cotton nonwoven fabrics,
glass cloth
Site manager:

Kinjiro Funakoshi

Air

Water

    
 
 
1.9

COD load

kg/day108.8

42Suspended matter

mg/

50

2

Oil

mg/

5

1

Nitrogen

mg/

120

1.8

Phosphorus

mg/

16

0.08



UNITIKA Group  



 





Production Site Information (2)Miyagawa
Mill

Location: 341 Honmachi, Obata-cho,Ise-shi, Mie, Japan 519-0593
Site area: 103,404 m2
ISO 14001:
Certification No. JCQA-E-0476
Main products: Yarn and woven fabricmade from wool and wool blended
materials
Site manager:

Air

Water

Hitoshi Yamaguchi

SakoshiPlant    
 
 

   

SOx total

K value

17.5

NOx

ppm

180

67

Dust

g/Nm3

0.3

0.003

1.9

COD load

kg/day91.2

21.6

Suspended matter

mg/

30

3.2

Oil

mg/

20

2.5

Nitrogen

mg/

10

4.3

Phosphorus

mg/

1.5

0.02

Location: 846 Takano, Akaho-shi,  
Hyogo, Japan 678-0171
SOx total
2
Site area: 191,236 m
NOx
AirISO 14001:
Dust
Certification No. JCQA-E-0093
Main products: Vinylon fiber
COD load(for industrial materials such as cement,
Suspended matterrubber reinforcements, tatami thread
Oil
Water
and papermaking binders)Site manager:
Nitrogen
Hiroshi Noguchi     
 
 

Nm3/hour

9.1

4.6

ppm

170

156
0.027

g/Nm3

0.12

kg/day

348

48

mg/

3.9

2.5

mg/

10

0.8

mg/

10

1.19

Phosphorus

mg/

1

0.16

   

SOx total

Nm3/hour

0.63

0.1

NOx

ppm

130

110

Tokiwa Mill
Location: 88 Nakahara, Sosha-shi,
Okayama, Japan 719-1195
Site area: 175,520 m2
ISO 14001:
Certification No. JCQA-E-0221
Main products: Cotton 100% yarn,
Blended yarn with synthetic & cotton,
Synthetic woven fabrics blended
with cotton
Site manager:
Hirokazu Yoshida

UnionCo., Ltd.

Location: 10-1 Ohmine-Minami,
Hirakata-shi, Osaka, Japan 573-0145
Site area: 6,886 m2
Main products: Glass beads

President:

Yoshiki Shimizu

Air

Water

Air

Water

    
 
 

Dust

g/Nm3

0.300

0.009

BOD load

kg/day120

2Suspended matter

mg/

150

1

Oil

mg/

5

1

Nitrogen

mg/

10

3.6

Phosphorusmg/   

SOx total

Nm3/hourUndetectable

Undetectable    
 
 

NOx

ppm

180

5.5

Dust

g/Nm3

0.15

0.0044

BOD load

kg/day100

13.7

Suspended matter

mg/

150

11.6

Oil

mg/

24

1.5

Nitrogen

mg/

120

21.6

Phosphorus

mg/

16

2.1

Note 1: The displayed regulation values are the most rigorous values mandated by law (Air Pollution Control Law or Water Pollution Control Law),
regulations, prefectural guidance or conventions.
Note 2: Includes environmental impact from affiliates within site.
Note 3: SOx = sulfur oxides, NOx = nitrogen oxides, COD = chemical oxygen demand, BOD = biological oxygen demand
Note 4: The displayed air pollution values are the measured values for the major facilities at each site (totals are values for entire site).
Note 5: The displayed water pollution values are the highest values measured at the drain outlets at each site (load amounts are values for entire site).

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