UNITIKACSR Report

2009
UNITIKA Group
Corporate Social Responsibility
Report 2009

CONTENTS

Management

Message from the President
Notes on FY 2009 ReportCompany Overview
Management Philosophy
Corporate GovernanceInternal Control
CSR Promotion System
Environment, Health, and Safety (EHS) Management
Compliance Promotion
Information Security Management

CSR Report Relationships with Clients
Ensuring Product Safety
Quality Assurance Activities
Relationships with Shareholders & Investors
IR Activities
Share Status
Giving Back to the Community
Efforts Toward Environmental Improvement
Disaster Prevention & Readiness Efforts
Public Relations Activities
Report on Promotional Event Held at the Unitika Fitness Club in Uji, Kyoto
Concern for Our Employees
Personnel System
Equal Opportunity
Human Resource Development
Employee Mental Health
Human Rights
Safety & Health Activities
Asbestos Removal

Environmental Basic Environmental Policy
Medium-Term Environmental Plan
ReportHistory of Environmental Preservation Activities
Overview of Environmental Impact
Work on Reducing Environmental Impact
Air Pollution
Water Pollution
Waste Products
Rate of Recycling
Handling of Chemical Substances
Energy Saving & Global Warming
Logistics
Environmental Complaints
Environmental Accounting
Technology and Products for Environmental Safety
Water Treatment Facilities
Garbage Processing Facilities
Air Pollution
Plant-Derived Biomass Material / Terramac
Anticorrosive Sheeting / Segurova
Recycled Polyester Fiber / Uniecolo
Plant-Derived Biomass Material / Castlon
New Natural Fibers / Sylph
Organic Cotton Material / Naturecot
Recycled Polyester Nonwoven Sheeting / Ecomix
Glass Beads / Unibeads for use in Road Marking
Production Site Information

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CONTENTS

Message from the President

As a good corporate citizen,
we contribute to a healthier environment
and a more comfortable way of life.

Kenji Yasue
President

At the Unitika Group, we are committed to a wide range ofinitiatives while placing priority on the environment.

initiatives targeting enhanced enterprise value and long-term

Our focus on the environment testifies to our basic

corporate growth. The basis of these initiatives is formed byapproach of contributing to the emergence of a society

development and enhancement of our business as well as bycommitted to recycling resources. It includes a variety of

establishing a robust cooperate structure that provides us

efforts to reduce our environmental load, including thewith the ability to respond to ongoing changes in thedevelopment of recycling technologies for processing refusebusiness environment. However, we are also acutely aware

and wastewater, the development of biomass-basedof how our business initiatives are intertwined with our

polylactide polymer Terramac® contributing to less emission

corporate social responsibility, and we understand that it isof CO2, and the implementation of environmental

absolutely essential for a better enterprise value to establish

assessments targeting the air, water, and soil, all of whicha relationship of trust with our stakeholders. For the Unitika

reflect Unitika's commitment to the environment. We are alsoGroup, this approach has always demonstrated our long-term

promoting Group-wide registration for the ISO 14001

commitment to our corporate social responsibility (CSR).

environmental management standards, of which certification

In promoting our CSR initiatives, we have also remained

encompasses six Unitika plants and other major facilities;

dedicated to defining and developing the systems required tomoreover, our main plants have converted from oil to natural

implement and manage our essential functions, which

gas for their energy requirements. Clearly, in terms of bothinclude addressing environmental issues, ensuring legal

our business and operations, we have been focusing on thecompliance, managing product safety, and implementing

most pressing environmental issues.
Under our new three-year medium-term management

internal audits and controls. In July 2008, we established our
CSR Office to ensure that we pursue these important

plan, "Reform 2011", which began in April this year, we havefunctions with greater effectiveness and oversight. Headed

been cultivating eco-friendly business models as reflected byby the Director in charge and managed by the full-time senior

our recycling business, our environmental materials

management staff, this office is empowered to address abusiness, and our reputation as a manufacturer ofcomprehensive range of CSR requirements. For example, itTerramac®. This testifies to our management vision as ahas pursued risk management by adopting a system that

good corporate citizen contributing to a healthier environment

ensures rapid and effective risk assessment and response.

and a more comfortable way of life. Committed to reinforcing

Among the most important of Unitika's CSR initiatives are

and promoting these efforts and building upon our past

those that address environmental challenges. This emphasis

initiatives as an environmentally responsible company, we

is appropriate, as the twenty-first century has been called

are now in an excellent position to promote additional specific"the era of the environment," with issues such as thegoals as required by CSR.
I trust this report clarifies our commitment to the CSR

potential for global warming and environmental pollution now
assuming a significantly greater share of our corporate

initiatives the Unitika Group is pursuing as a responsible

responsibility. In keeping with our Group ideal of "contributing

corporate citizen, and I welcome your support as we pursue

to society by linking lifestyles and technologies," we havethese initiatives.

long made a priority of interlinking our Group's corporate

2

Message from the President

Management

Notes on FY 2009 Report
History of Report

Period Covered by Report
This report covers principally the period from April 1, 2008
through March 31, 2009, however it does address certain items,
and events arisen after April 1, 2009.

This report was originally issued as the Unitika Environmental
Report, a document which detailed Unitika's various
environmental and social related activities. By 2006, the Report
has expanded CSR coverage, reflecting the growing importanceof this area and greater attention it is receiving in Japan. The
CSR information includes topics such as corporate governance,internal control and other principles and systems in use by theGroup. The Report is now issued annually as CSR Report.

Reference Guidelines
This report refers to the Environmental Report Guidelines (2007
edition) issued by the Ministry of the Environment.

2002-2005 Unitika Environmental Report
2006- Unitika CSR Report

What This Report Covers
This report in principle covers activities by Unitika, Ltd.'s domestic production sites and the Unitika Group companies including thoseoverseas and Environmental Report covers the following range of items.

Unitika Production
Sites in Japan

Internal Group Companies

External Group Companies

Uji Plant

Ad'all Co., Ltd.

I-Tex Co., Ltd.

Okazaki Plant

Nippon Ester Co., Ltd.

Osaka Dyeing Co., Ltd.

Sakoshi Plant

U-ai Electronics Corp.

Diabond Chemical Co., Ltd.

Tarui Plant

Unitika NP Cloth Co., Ltd.

Terabo Co., Ltd.

Toyohashi Plant

Unitika Environmental TechnicalCenter Co., Ltd.

Union Co., Ltd.

Tokiwa Mill
Miyagawa Mill
Kaizuka OfficeCentral R&D
Laboratories

Unitika Sparklite., Ltd.

Unitika Glass Fiber Co., Ltd.

Unitika Spinning Co., Ltd.

Unitika Plant Engineering Co., Ltd.

Unitika Berkshire Co., Ltd.

Unitika Textiles Ltd.
Unitika Fibers Ltd.
Unitika Logistics Co., Ltd.

Date of Issue

Terminology used in this report

This report can be accessed on Unitika's company website from
October 2009. In light of the potential environmental impact, no
printed version is issued.

CSR: Corporate Social Responsibility.
Stakeholders: Customers, shareholders, suppliers, society, local
communities, employees, and other individuals and organizations thathave vested interests in a company.
Compliance: The observance of laws and corporate ethics.

Next Report
October 20103

Notes on FY 2009 ReportManagement

Company Overview

Name: Unitika Ltd.
Founded: June 19, 1889
Capital: 23.8 billion yen (as at March 31, 2009)
Number of employees (consolidated): 5,437 (as at March 31, 2009)
Sales (consolidated): 209.6 billion yen (FY 2008)
Main business areas (consolidated): Polymers (films, resins, spunbond), environmental/advanced materials (engineering,
pharmaceutical products, functional materials), fibers (synthetic and natural fiber yarns, staple fibers, woven and knitted fabrics),
health & amenity products, other business areas

Sales(Consolidated)

Sales Share of Each Business Unit
(FY 2008, Consolidated)(Billions of yen)
250

Health & amenity
products, other
9.6%

200
150

Environmental/
advanced materials
14.5%

100
50
0

'04

'05

'06

'07

Sales:
209.6
billion yen'08

Fibers
43.2%

Employees (Consolidated)
6,000
5,000

Polymers
32.7%

4,000
3,000
2,000
1,000
0

'04

'05

'06

'07

'08

4

Company Overview

Management

Management Philosophy"Contributing to society by connecting persons' living to technologies"
The Unitika group's management philosophy is to contribute to society by connecting people's lives to technology. Unitika
aims to be a company with a clear social presence that contributes positively to the environment and to people's lives.

The Unitika Group Slogan

There is an unimaginable number of people in the world. There is an unimaginable number of dreams and hopes.
The Unitika Group aims to unite all of these with one desire. One desire to improve the lifestyle of persons,living together in harmony within the global environment.
Unitika has the creative power to bring about this way of thinking. We also possess the technology andenergy to turn these possibilities into realities. We have taken the time to unite all the companies involved in our various
businesses, ensuring we are operating at full capacity through unification of our capabilities across numerous fields.
Unitika consistently strives to work together toward this goal.
The possibility of improving persons' lifestyle - We Realize It! We are the Unitika Group.

Corporate GovernanceUnitika aims to be a company with a clear social presence that contributes positively to the environment and to people's lives.
Under this management vision the Unitika group will implement ongoing corporate governance initiatives.

Basic Policy for Corporate Governance

Implementation

In our three-year medium-term management plan that came into
effect in April 2006, we reaffirmed our business and corporate
governance strategies. Employing rapid decision-making, wework on a stakeholder-orientated business perspective bystrengthening compliance and risk management, and ensuring
timely and accurate information disclosure. Consistentadherence to this management approach will increase Unitika's
corporate value in today's increasingly globalized economy, toenable sustained growth. Since the announcement of our plan,
we have continued to pursue a management system that
promotes corporate governance. Moreover, "Reform 2011", our
medium-term management plan implemented in April 2009,
outlines our desire to promote corporate management thatemphasizes corporate governance and reiterates out
commitment to increasing earnings and improving corporate
value.

In 2000, Unitika adopted a management system that sets forth
two separate function areas: management
decision-making/supervisory functions ('governance') andbusiness execution functions ('management'). The Board of
Directors specializes in the first set of functions, aided by theManagement Strategy Council, an organization that provides
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.
In 2006, in addition to setting forth a set of basic policies oninternal control, we established a CSR Compliance Group.
Additionally, we reviewed our administrative structures, making
changes such as enabling directors to also serve as executive
officers.
In 2008 we set up a CSR Office, as well as a system forcompliance and risk management in order to promote internal
control.

5Management Philosophy / Corporate GovernanceManagement

Internal Control
In April 2007, we created the Internal Control Promotion Office, and began implementing internal control for financial reporting.
In July 2008, we established CSR Office by integrating all the sections related to internal controls.

Basic Policy
Set forth in the nine items of Unitika's Basic Policy for Internal Control.

Unitika's Basic Policy for Internal Control (Item Headings)
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. Organization to secure the reliability of financial reports.
7. When auditors ask for appointment of employees to act as assistants
Items pertaining to organization for those employees, and to their independence from directors
8. Organization used for directors and employees to report to auditors; organization for reporting toother auditors
9. Other organizational elements to ensure that auditing by auditors is performed effectively

Organization
The diagram below shows the organization used for corporate governance, and to ensure fair corporate activities. The basic elements
correspond to Unitika's Basic Policy for Internal Control (outlined above). This organization is used to strictly enforce internal
control-compliance, information saving/management, risk hedging, increasing the execution efficiency of director job duties, and ensuring
the suitability of operations.

Organization
General Meeting of Stockholders
Appointing/terminating

Appointing/terminating

Appointing/terminating

ReportingManagement Strategy
Council(All directors)* Discusses important issues.

Discussion ofimportant issues

Board of Directors(Eight directors)

Auditing

Appointing/terminating, Reporting
instructions

Accounting
AuditorReportingBoard of Auditors(Four auditors)(Including two outside auditors)

Appointing/terminating,supervision

Determining suitabilityof accounting auditing,witnessing auditing

Auditor staff
Executive Officers(Nine)(Including six executive officers
also acting as directors)

Representative
Directors(three)* Execute business operations.

Auditing

Reporting

ReportingPresident

CSR OfficeInstructions

Reporting

Reporting
Advisory
organization

Business Execution Council(Directors, Executive Officers)

Promotion, management
Instructions

Committees:
Compliance Committee
Risk Management Committee
Export Management Committee
Central Committee on
Product Liability, others

ReportingBusiness departments, Group companies

6

Internal Control

Management

CSR Promotion System
We have established a management system consisting of various
committees and business divisions that support the CSR Office inpromoting CSR initiatives.
Priority initiatives undertaken as part of the CSR promotion
system include those aimed at ensuring (1) environment, health,and safety (EHS) management, (2) the promotion of compliance,(3) information security management, and (4) product safety.

In order to promote environmental awareness and safetymeasures as well as compliance and risk management and otherfacets of CSR, in 2008 we established the CSR Office and a CSR
Director to oversee CSR at the entity-level.

Organization of the CSR Promotion System
President

CSR Office

Risk Management Committee

Compliance Committee

Business division

Environment Committee

Central Safety andSanitation Committee
Central Committee
on Product Liability

Production site

Affiliate

Environmental
Safety Group

Environmental
Safety Group

Activity planning,
implementation and management

Export Control Committee

Information Security Committee

Policy setting and auditing

Environment, Health, and Safety (EHS) Management
The Central Safety and Sanitation Committee and theEnvironment 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 Groups ofUnitika production sites or affiliates. They form an organizationthat provides the leadership to implement effective environmental
measures.

Unitika's Environment Committee meets regularly every year. It
discusses and votes on major environmental issues such as
basic plans for environmentally-aware management, andverification of their progress. Also, the bureau of the Environment
Committee implements environmental audits of our production
sites and reports on the findings of these at Environment
Committee meetings.

7

CSR Promotion System / Environment, Health, and Safety (EHS) Management

Management

Compliance Promotion
In 1998, Unitika instituted the Unitika Action Charter.
In April 2008 we reviewed the Unitika Action Standards that specifies the action
standards in a concrete manner. These standards are distributed to all Unitika
Group employees, so that they can take an action in consideration of ourcompliance policy, and contribute to people's living and environment as well.

Unitika Charter of Corporate Behavior
The Unitika Charter of corporate behavior is our basic policy on how best to fulfill our mission as a public-spirited corporation. It applies to all
directors and employees of Unitika and Unitika Group companies.
The Unitika Charter of Corporate Behavior is a set of guidelines on how to act for the public good by complying withlaws and international standards and guidelines.
1.UNITIKA, by the development and provision of socially beneficial goods and services in a safe and responsible manner, shall strive to earn theconfidence of their consumers and customers.
2.UNITIKA shall promote fair, transparent, free competition and sound trade. They shall also ensure that their relationships and contacts with government
agencies and political bodies are of a sound and proper nature.
3.UNITIKA shall engage in communication not only with shareholders but also with members of society at large, including active and fair disclosure ofcorporate information.
4.UNITIKA shall strive to respect diversity, individuality and differences of their employees, to promote safe and comfortable workplaces, and to ensure
the mental and physical well-being of their employees.
5.UNITIKA shall respect the culture and customs of other nations and strive to manage their overseas activities in such a way as to promote andcontribute to the development of local communities.
6.UNITIKA shall reject all contacts with organizations involved in activities in violation of the law or accepted standards of responsible social behavior.
7.As a ''good corporate citizen,'' UNITIKA shall respect fundamental human rights and actively engage in philanthropic activities, and other activities of social benefit.

Unitika's Whistleblower Contact Points

Whistleblower Contact Points

Contact point 1

Contact point 2

In 2006, Unitika put into effect a set of "whistleblower protection" (internal reporting)regulations, designed to allow employees to immediately report any malfeasance
Unitika Compliance Line
External Legal
Contact point:
or illegal activities they might encounter. As part of this effort, we created two
Help Line
Within CSR/Compliance Group in Personnel/
General Affairs Department
contact points for such reporting, one within the company and one outside thecompany. These are part of the strict measures we use to ensure thoroughReporting Instructions
Reporting Instructions
compliance within the company, driven mainly by the Compliance Committee.
Reporting/
Reporting/
Further, as part of our training in observing compliance using tools like ourconsultations
Compliance Committee consultations
company intranet, we regularly dispatch information on these contact points to our
Feedback Committee chairman: Unitika President
Feedback
employees. Over the course of fiscal 2007 such efforts built better complianceawareness throughout the Unitika Group, and made it possible for more employees
All employees working for Unitika Groupto be able to use the system.

Information Security Management
unauthorized use, Unitika set up the Basic Policy on Information
Security in 2005. This document contains our Information Security
Declaration and sets forth our steadfast approach to implementing
it, while setting up a management and operation organization driven
by our Information Security Committee. The Basic Policy isdesigned to ensure protection and effective use of the information
we handle in the course of our business activities.

This section outlines our work on information management
and security, which are becoming increasingly important
issues as the growth of the Internet provides ever easieraccess to information.

Information Security
To maintain the confidentiality of information assets and prevent

Unitika Information Security Declaration (Preamble Omitted)
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 systematic manner.
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.

8Compliance Promotion / Information Security Management

CSR Report
Relationships with Clients
Through our product liability and quality assurance efforts, Unitika strives constantly to improve
product safety and quality of our products maintaining customer satisfaction as our first priority.

Ensuring Product Safety
Unitika has established product safety management regulations
designed to ensure that we always offer safe products to ourcustomers.Unitika's product safety management regulations
contain detailed provisions on areas such as basic policy,
responsibility areas, implementation systems, and bylaws on theimplementation and application of manual procedures. Unitika

and Unitika Group companies work to ensure that productmanufacturing and sales are carried out safely, in compliancewith these regulations. The chart below details promotional
system, headed by the Central Committee on Product Liability, for
ensuring product safety.

Central Committee on Product Liability
Committee members

Work areas

Members include the head of each businessdivision, directors in charge of each business area,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

Product Liability
Review Board

Product Liability
Review Board

Product Liability
Manager

Product Liability
Manager

Established in each business department, section and business unit. The
relevant division head appoints the committee chairman and secretariat.
Committee members
Department (office) heads incharge of production/technology,
department (office) heads incharge of sales, and members
appointed by the division head.

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

Product Liability Manager
Appointed by each division head in line with the type of business
Main work areas
Investigating and checking health and environmental effects of product handling anduse
Creating and reviewing product handling cautions for display on product containers,
wrapping and tags
Creating and distributing product safety data sheets

Product Safety Record for Fiscal 2008
shared by the Central Committee on Product Liability and suchinformation is used to prevent from repeated claims.

No product liability–related incidences occurred.
*Information on the claims which may bring about an accident is

Quality Assurance Activities
In order to satisfy customer's demands on our products, theUnitika Group is pursuing quality management system
certification. We are constantly improving our quality assurance

activities based on ISO9001 standards for quality management
systems.

9

Ensuring Product Safety / Quality Assurance Activities

CSR Report
Relationships with Shareholders & Investors
Based on our "stakeholder-oriented" business perspective, Unitika endeavors to disclose accurate
and timely information to the stockholders and investors at every opportunity. In January 2003, weestablished a new Investor Relations (IR) Department, which works, as IR/Public Relation Group,in tandem with the Public Relations Department to ensure that such activities function smoothly,
and to create a meaningful dialog between the company and its stockholders and investors.

IR Activities
Ordinary General Stockholder Meetings
Through explanations of our latest operating conditions and dialogs with shareholders, Unitika uses ordinary generalstockholder meetings as opportunities to deepen understanding of our business conditions and policies.
Announcements of Financial Statements & Explanatory Sessions
Unitika conducts a variety of financial data disclosure activities, including twice-yearlysecond quarter and full financial year accounting statements for the press, both ofwhich are followed a week or so later by explanatory session geared toward
institutional investors and analysts.
Institutional Investor Visits
Unitika representatives make visits to institutional investors and analysts in order toprovide more specific information as needed.

March 2008 Financial Explanatory Session(May, Keidanren Kaikan)

Publications• Financial Flashes (4 times annually, in May, August, November, and February)• Stockholder Reports (2 times annually, at second quarter and full year closing)• Corporate Guides
Website Development
The "To Our Shareholders & Investors..." section of the Unitika corporate website offers an array of public informationof interest to stakeholders.

Share Status (as of 31 March, 2009)
Total Number of Shares Issued: 475,969,000

Distribution of Stocks
Financial Institutions
28.3%

Number of Shareholders: 68,557
Number of Unit Shareholders: 57,965
Individual, Other
60.2%

Financial Product Brokers(Securities Companies)
1.4%

Other Corporations
6.6%
Foreign Corporations
3.5%

10

IR Activities / Share Status

CSR Report
Giving Back to the Community
Through beautification efforts, disaster prevention activities conducted with local communities
and volunteers, and various informational services, Unitika works on with the people of thecommunities to protect the environment and build a more ecologically friendly society.

Efforts Toward Environmental Improvement
Building on the success of the Kyoto Protocol, Kyoto Prefecture has created an environmental administrative
organization that includes a system called Eco Kyoto 21. The system targets businesses that protect and develop
Kyoto and the environment. It certifies and registers corporations that play a leading role in environmental
preservation through awareness activities, and in promoting recycling in the local community. Unitika's Uji Plant has
participated in the system from its inception, and in December 2004, was certified and registered under the system's
Ecostyle category for production sites and organizations carrying out highly original environmental activities.

Participation in Local Beautification Activities
activities of the Uji Plant area three times a year.Other Unitika
production sites are also giving back to the community by
beautifying their surrounding environments.
One Saturday in March 2008, about 150 people from the Okazaki
Plant and surrounding community gathered for a volunteer
activity to clean up the area around the facility.

The Uji Plant is actively involved in volunteer activities to beautify
the surrounding areas. It also participates in the local "Clean Uji"beautification and cleanup campaign, and conducts cleanup

The Clean Uji event

Cleanup around the Okazaki Plant

Helping Keep the Planet Green
Responding to Japan's increasing focus on public-spirited
volunteer projects, Unitika Labor Union established a volunteer
foundation in 1992 and began a range of activities inside andoutside the Company. In Japan, we have held support activities infacilities for the handicapped and conducted training meetings to
expand the frontiers of volunteer activities. We have also worked tostep up volunteer activities overseas, where we have sent
volunteers to work camps for international exchanges, and haveraised money for disaster relief.
In 2003, Unitika Labor Union celebrated its 30th year anniversary
by starting a program called Midori no Plan ('Green Plan')designed to give back to the community and raise environmental
consciousness. Midori no Plan volunteers created a wooded area
they named Unitika no Mori ('Unitika Wood'). Three species of local
trees (sawtooth oak, quercus serrata, Japanese cypress) wereplanted in a two-hectare area of mountain forest in
Hidakagawa-cho (Wakayama Prefecture). Employees visit the area
for cutting back the undergrowth and pruning several times per
year.In September 2008, thirty-three employees performed this task
to enable better tree growth. This project has been recognized by
Wakayama Prefecture as "an effort contributing to CO2 absorption

through forestation," and is projected to absorb about 800 tons ofcarbon dioxide from the atmosphere over the next 100 years.

11

Efforts Toward Environmental Improvement

CSR Report

Disaster Prevention & Readiness Efforts
Unitika has created an organization well-equipped to prevent
production accidents and accidents damaging surrounding areas. In
addition to these basic measures, we are also active in training
activities to prepare for accidents and natural disasters.To makeinternal standards for managing safety at production facilities, Unitika
has established a set of "pre-evaluation policies" on safety hygiene
and environmental effects at new facilities. All new and remodeled
facilities are subject to a strict inspection to be carried out two times,
once during the designing stages and later again upon completion.
Plants that use boilers and other high-pressure vessels are charged
with a law to conduct yearly inspections. However voluntaryself-management systems and specific conditions are fulfilled or
acknowledged by presiding labor standards inspection office, andsuch inspections may be extended to once every two years insteadof every year. Two Unitika facilities (Uji and Okazaki) have earned thisacknowledgement.
On March 5th, 2009, as part of the 2009 Spring Fire Prevention
Campaign, over 100 people participated in joint training exercises
conducted by the Uji Plant's Film Manufacturing Division in
conjunction with the Uji City Fire Department. The exercises werecompleted successfully and included initial response training on theuse of water-based fire extinguishers, as well as an earthquake
simulator and burning house structure.
Due to its location in an area that has been officially designated ashaving a high earthquake risk, the Okazaki Plant holds an annual
disaster prevention day every November. In 2008, this day was held
on November 19th and the entire plant participated in training
exercises involving communication, evacuation, and facility
inspection reporting as well as initial response firefighting trainings
and leak prevention trainings tailored to the needs of each section.

Leak prevention training (Okazaki Plant)

Joint firefighting training (Uji Plant)

Earthquake simulator (Uji Plant)

Firefighting training with water-based
fire extinguishers (Uji Plant)

Initial response firefighting training(Okazaki Plant)

Unitika PET Bottle Recycling System

PET Bottle Recycling
Unitika manufactures and sells a variety of recycled products bearingthe "ecomark," such as UniEcolo, recycled polyester fibers, and Ecomix,
recycled polyester non-woven fabrics. As part of our efforts toward
environmental protection, we have been developping such important
products for which the demand is increasing. As a raw material forthese, we organized a campaign for recovering used plastic PET bottles,
which are washed and collected by employees from our various plants
and their families. These are collected by our Okazaki plant and sent toa recycler to be chopped into usable plastic flakes. This recovering
campaign began in Uji, Okazaki and Osaka, but now has spread to the
Unitika Fibers Headquarters and our Toyohashi, Sakoshi, Tokiwa, andTarui where employee participation awareness is on the rise.

12

Recycling
Processor

ECOMIX

Unitika Plants

UNIECOLO

Okazaki Plant

Disaster Prevention & Readiness Effortss

CSR Report

Public Relations Activities
Terramac is a biomass material made from a polymer derived
from plants such as corn. To promote and educate the public
about the benefits of Terramac, and as part of our corporate CSR
activities, in continuation from 2007, Unitika participated in the"2008 Surprise! 100 Eco Choices" fair at the Kyoto and Shinjuku
branches of Takashimaya department store.
The exhibit booth displayed a variety of items made from

Terramac, including bowls, chopsticks, and bath towels.
We also held a mini “Ecolympics” for children in which
contestants raced to pick up the most beans made of Terramac
with chopsticks within a set time limit.
Additionally, in keeping with the 2007 fair, we distributed
Japanese fans with ribs and handles made of Terramac.

Terramac Product Display

At the Ecolympics

The Unitika Group Exhibits at"Eco-Products 2008"
Last year marked the tenth anniversary of the
Eco-Products exhibition, which is held to promote
environmentally-friendly products and the developmentof an environmentally-friendly society. Held from
December 11th to 13th at the Tokyo Big Sight exhibition
center, Eco-Products 2008 set new records for thenumber of exhibitors and attendees, drawing
approximately 174,000 visitors over the three days.
Attending the exhibition for the third year running,
Unitika's slogan for this year was “Unitika Eco
Laboratories-thinking, producing, and changing.” Unitika
introduced a variety of its environmental initiatives under
the concept of thinking about the environment andpeople's lives, producing required items using required
methods, and changing people's lives and the future. We
also profiled the group's diverse initiatives including
Terramac, a biomass material derived from plants;
Castlon (Nylon 11) fiber and other ecological fibers; theintroduction of in-house gas cogeneration systems; water
and waste disposal; and plastic recycling.

13

Public Relations Activities

CSR Report

Report on Promotional Event
Held at the Unitika Fitness Club in Uji, Kyoto

Unitika's “mascot girl”, Shioli Kutsuna, participated in apromotional event in Uji, Kyoto Prefecture.
Shioli enjoyed a photo shoot with amateur photographersfrom all over the country and worked out with members of
the local fitness club.
Club, which neighbors the Uji Plant, the Unitika Group's
main production base.

With the fall colors at their peak, on November 23rd, 2008,
the eighth annual beauty photo contest (sponsored by awell-known Japanese sports newspaper) was held with
Unitika's “mascot girl” Shioli Kutsuna at the Unitika Fitness

The occasion marked a first visit to Kyoto for Shioli, who
was born and raised in Australia. The photo competition
was attended by around seventy amateur photographersfrom all over Japan who couldn't wait to start snapping
shots of Shioli, who appears in TV drama shows andcommercials. Now in its eighth year, the competition has
starred other Unitika mascot girls in the past, but incelebration of the opening of the Unitika Uji Fitness Club,
this year's event was the first time it has been held at a
Unitika facility.

14

Report on Promotional Event Held at the Unitika Fitness Club in Uji, Kyoto

CSR Report

The photo shoot started in the brand new first floor lobby.
Once Shioli had relaxed a bit, she changed into her fitness
gear, and the group moved into the gym itself. Whether
she was balancing happily on an exercise ball or working
out on the weight machines, Shioli's smile thoroughly
captivated her audience. Shioli said that the photo shoot
was a lot of fun-“It's Shioli!” the young model shot back in
response to the photographers' requests to “turn this way
Saori”.

Shioli joined club members in the Easyline training sessionin which training machines are arranged in a circle andteams of fourteen compete. Shioli was adamant that she
would complete a full set, and finished the whole non-stop
thirty-minute workout. After moving on to the pool, Shioli
stood alongside the coaches and helped them coach as
she cheered on the swimmers. To finish off the day Shioli
led a game with 200 children from a junior swimmingclass. She then signed copies of her calendar for thechildren who looked very pleased to receive them.
Shioli gave out high fives as she said goodbye to thechildren and her long day drew to a close. “I had a reallygreat time. It was so cool to meet so many new people,”she grinned as she left Uji, tired but happy.
After lunch, Shioli took part in an exchange event withfitness club members. It seemed that the members of theclub from the local area had really been looking forward tomeeting Unitika's “mascot girl”. The fitness club was
actually closed on the day of the event, but a lot of local
residents came along.

15

Report on Promotional Event Held at the Unitika Fitness Club in Uji, Kyoto

CSR Report
Concern for Our Employees
Unitika's personnel system is designed to encourage employee self-actualization.
We provide equal employment and work opportunities, and make every effort tocreate accommodating workplace environments.

Personnel System
Personnel Appraisal System

Self-Reporting System (Career Plan)
Once a year, at the time of the annual personnel appraisal
employees submit a 'Career Plan Sheet' to self-report how much
aptitude they feel they have for their position. The Career Plan
Sheet covers five main areas: (1) the employee's thoughts on
their current position, (2) their own medium- to long-term careerplan, (3) what they want to achieve next in their career (such aswhether they want to be reassigned), (4) their strengths and how
they have been working on achieving their career plan, and (5)comments on their current job position (such as their concerns)
and improvement suggestions in the workplace. These
comments are used to clearly identify skill development goals
and expectations regarding roles. Furthermore, we also confirm
whether employees of a certain age would like to use areemployment system.
Unitika is aware of the importance of job rotation in fostering
outstanding human resources. Our practice of periodic job
rotation (especially for young employees) helps employees
improve their abilities by giving them the opportunity to work inseveral departments, and helps us spot candidates to fast-track.

Unitika's personnel appraisal system emphasizes employees'
effort, and is designed to increase the organization's vitality. It isa results-driven system that awards greater benefits toemployees who achieve greater success or tackle more difficult
challenges. A biannual goal management system and annualcompetency evaluation system are used along with our humanresources development program. They impartially evaluate how
well each employee is meeting their goals, and help them set
new goals to develop their abilities. Supervisors meet with each
employee to discuss their evaluation results, ensuring thateveryone receives proper feedback, for better transparency andcommunication.

Equal Opportunity
participation in child-care, with child-care leave available to bothmale and female employees.

Women Employees
Unitika's women employees are valued for their abilities andperspectives. We employ a large number of female employees
and have no gender-biased employment or promotion policies.
Over the past five yeas, 22.4% of Unitika employees have been
women, including many in management positions.

(Employees )Achieving a Work/Life Balance
In the interest of achieving an ideal balance between work andhome life, and also to address Japan's aging society issues,
Unitika fosters a corporate environment that allows employees totake leave for both child-raising and elder care, and in fact,
Unitika offers leave durations for these, and also for care for sickchildren, that are longer than those stipulated by law. Also, basedon Japan's "Next-Generation Child-Raising Support Measures
Promotion Law," the company is also involved in promoting male

Taking Leave for Childcare

Employees Taking
Leave for Elder Care

2004

27

1

2005

17

0

2006

27

3

2007

26

0

2008

18

4

Reemployment System
Unitika has a senior employee system that enables employees tocontinue in the same job after reaching the age of 60. We
welcome employees who want to continue working, and in FY
2008, our rehire rate was 61.1%.

16

Personnel System / Equal Opportunity

CSR Report

Human Resource Development
Unitika believes that raising the ability of each employee in theorganization is crucial for achieving high 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 appraisal methods, andsystems to encourage ability growth, such as ability development
and training systems. Unitika Training Center is the dedicatedtraining center we have created to implement our approach. It is
used for several different types of training taken by a large
number of employees. To help employee self-improvement
efforts, Unitika offers a job qualification assistance system,
correspondence courses, and full-time study courses atuniversities in Japan. Many of our highly-motivated employees
are eager to take advantage of these benefits.

Training System (Program) and Number of Students (FY 2008)
Training for individual levels (647 students)
1. Training for promoted employees (233 students)
2. Young employee education (414 students)
New employee training, basic knowledge course, manufacturing
department leader development course
Specialized education (123 students)
1. Competency improvement training
Legal training
2. On-the-job development education
Supervisor training, business leader training
3. Quality control training

Employee Mental Health
Unitika actively pursues measures to ensure the mental well-beingof employees based on the Guidelines on the Maintenance andEnhancement of Employee Mental Health issued by the Ministry of
Health, Labour and Welfare. Every Unitika employee undergoes
mental health training when they are promoted to a management
position. We encourage managers to be aware of their managerialrole and to take care of their own mental health. Managers canuse the Hello Kenko Sodan 24 Service provided by an external
EAP (employee assistance program) provider through anagreement with Unitika's health insurance union. To ensure
mental health consultation is readily available, we have createdinternal and external health consultation offices.

Human Rights
The entire Unitika Group is an active advocate of human rights.
Unitika's Standards for Behavior are distributed among
employees with the goal of elucidating the company's policies onhuman rights, and the company also has in place an annual
human rights education seminar attended by all managers andemployees. To comply with Japan's revised equal opportunity
law, we are also working on preventing sexual harassment, andhave set up sexual harassment consultation offices at eachproduction site to raise awareness and recognition of the
problem among all employees.
Unitika and its subsidiaries and affiliates in Japan and overseas
are not engaged in forced labor or child labor.

Organogram of Human Rights Education Committee
Director in charge of all employee human rights issues

Human Rights Education Advisory Committee

Companywide Human Rights Education Committee

Workplace Human Rights Education Committees

17

Human Resource Development / Employee Mental Health / Human Rights

CSR Report

Safety & Health Activities
Unitika places a top priority on the safety and health of its
employees, an issue that is becoming all the more important
especially with respect to corporate social responsibility (CSR).

The entire Unitika Group strives to prevent workplace accidents
and ensure comfortable working environments and healthcare
management.

Unitika's Basic Policy for Safety and Health
1. Ensuring safety and health is the foundation for every types of business activities.
2. Ensuring safety and health is the most important obligation of executives and managers at each levelof the corporate management.
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 and healthstandards to ensure safety and health.
5. We shall implement an ongoing safety and health management system to ensure safety and health.

To raise employee safety awareness, Unitika creates medium-term

management system, we have been working to "spiral up" our safety(three-year) safety and health plans that we have been implementing

and health activities, and continue refining our risk assessment

since 1969. Since 1974 we have conducted an annual health andcapabilities, with the aim of reducing potential dangers to zero.

safety conference, attended by company directors, management

Moreover, based on the Guidelines for Employee Mental Health in thestaff, and health and safety officers from all Unitika production sites.

Workplace issued by the Ministry of Health, Labour and Welfare, we

While our new medium-term plan (the 14th program running fromare actively involved in the promotion of mental healthcare and are

2008-10) sets an ultimate target of zero workplace accidents, as ourenhancing preventative measures against lifestyle-related diseases

operations involve many safety risks and change frequently, based

through special health checks and special health guidance targetingon the principles regarding our workplace safety and healthmetabolic syndrome.

Labor safety and health record

Number of lost work time

NumberRate of lost work time

Rate

1.000

8

0.800

6

0.600
4
0.400
2

0.200
0.000

0
'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

Unitika's rate of lost work time in FY 2008 was 0.515, an unfortunate increase over theprevious fiscal year.We will continue making improvements to our safety and sanitation
activities, aiming to keep the number of workplace and industrial accidents at zero.

Asbestos Removal
Unitika and Group companies are not involved in the
manufacture or processing of asbestos, nor have been in thepast. However, in 1975, some machinery used asbestos
insulation. In response to today's greater concern overasbestos, we have established the Asbestos Action Committee
to study actions needed for asbestos, create asbestos policies
and carry out other Groupwide functions.
As a safety measure, the Committee has surveyed equipment
and buildings using asbestos in production sites and Group
companies. Areas that could expose employees toasbestos-laden materials or generate airborne asbestos havealready been removed, sealed off or enclosed as needed.
To check employee health, we have offered health exams to any

current or former employees who handled asbestos in the past
and want to check for asbestos-related health problems. As of
March 2009, the current number of health problems among
current and former employees is shown below. No healthproblems have been reported from residents of areas
surrounding production sites or Group companies.

Number of certified industrial accident victims: 5 (4)*
Number of victims certified under the Law Concerning
the Relief of Health Damage Due to Asbestos: 3 (3)*
*Number in parentheses is number of deaths.

18

Safety & Health Activities / Asbestos Removal

Environmental Report

Basic Environmental Policy
Unitika named 1993 an Environmental first year, when we enacted the Unitika Global Environment Charter, consisting of ourpledge, basic philosophy and action guidelines. Since then, we have complied with this Charter to ensure that our corporate
management methods are environmentally aware, working on a range of environmental activities.

Unitika Global Environment Charter
The growth and development of mankind is rapidly altering our planet's air, water and soil, threatening both the global biosphereand our own future, since both must depend on a finite ecosystem. As a corporation with more than a century of businessactivities contributing to the public good, we are highly aware of the demanding conditions now facing the global environment.
The Charter is the declaration of our intention to focus more attention on protecting and helping the environment, making
appropriate environmental action the core of our business activities.

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

Action Guidelines
Continual awareness of the
global environment

The Unitika Group always considers the effects of our corporate activities on the global environment, following arigorous set of management procedures during product manufacture to prevent harm to it.

Contributing throughtechnology development

We aggressively research and develop technologies to protect and help the global environment.

Using resources andenergy efficiently

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

Carrying out PR andeducational activities

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

Drawing on the complete
range of Unitika Group
competencies

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

19

Basic Environmental Policy

Environmental Report

Medium-Term Environmental Plan
The Unitika Group has continued with systematic improvements
having established a Medium-Term Environmental Plan that sets
the reduction of industrial waste and the efficient use ofresources and energy as priority targets.
From fiscal 2006 we examined and analyzed the results of thethird Medium-Term Environmental Plan that was completed infiscal 2005, and applied it to the fourth Medium-Term
Environmental Plan that was scheduled for completion in fiscal
2008.
As a result, in fiscal 2008, while changing energy fuel sources,and other policies was effective in reducing energy use, energy

source unit did not improve due to the drop in output caused by
the economic downturn that began in the second half of 2008.
Efforts to reduce industrial waste and sell usable resources
successfully reduced industrial waste by approximately 18% atdomestic plants and internal group companies. Recycling rates
were lower than target figures due to the impact of reduced
output caused by the economic downturn.
From the next (i.e. the fifth) Medium-Term Environmental Plan, a
new scope that includes domestic group companies will beapplied and medium-term targets will be based on fiscal 2007
results.

Fourth Medium-Term Environmental Plan (FY 2006-FY 2008)
Priority Issues

Results

Targets(FY 2008)

Fifth Medium-Term
Environmental Plan Targets

Reduction ofindustrial waste

16% reduction comparedto FY 2004 level

Achieved

4% reduction comparedto FY 2007 level

Improvement ofloss recycling rate inproduction process

7% increase comparedto FY 2004 levelNot achieved

2% increase comparedto FY 2007 level

Improvement ofenergy source unit

Year-on-year
reduction of 1%

Not achieved

Year-on-year reduction of 1%
in final year

Reduction ofenergy consumption

10% reduction comparedto FY 1990 in FY 2010

Achieved (provisional)

10% reduction comparedto FY 1990 in FY 2010

*

*

*

*

Note*: Scope of fourth Medium-Term Environmental Plan: Domestic plants and internal group companies
Scope of fifth Medium-Term Environmental Plan: Domestic plants, internal group companies, and external group companies

20

Medium-Term Environmental Plan

Environmental Report

History of Environmental Preservation Activities
Unitika's work on environmental management hascontinued uninterrupted for over 30 years, and willcontinue into the future.

Unitika's Environmental
Preservation Activity History
September 1973

Pollution first became a major issue in Japan in 1973. That year, Unitika
created the Environmental Preservation Regulations, making a clear
distinction between environmental measures and outward-directed
production activities, to enable compliance with regulatory andstandards values.
In 1991, we created a new companywide organization called theEnvironmental Preservation Committee, followed in 1993 by the Unitika
Global Environment Charter. That year we began yearly environmental
auditing, establishing the basic direction for our environmentally-aware
management style that has continued to this day. In 1998, we createdthe Unitika Charter of Corporate Behavior, a document that sets forth
the basic action policy needed to fulfill our Unitika Group mission as apublic-spirited corporation. Its first article sets forth our responsibility
for environmental and safety awareness.
The Unitika Action Standards created and implemented in April 2001
expanded on the Unitika Action Charter by setting forth specific action
standards for Unitika organizations and employees to comply with in
the performance of their routine business activities. The Standard of
Corporate Behavior represent a clear step toward corporate activities
grounded in a mindset of corporate social responsibility (CSR). They
cover areas such as the environment, safety, compliance, andcoexistence with the public good and stakeholders.

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
October 2008

Unitika is working on becoming certified under ISO 14001-theinternational standard for environmentally-aware corporate activities.
We have started activities to help our affiliates obtain ISO 14001,
and have been conducting environmental audits of each company.

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).
Created targets for fifth Medium-Term
Environmental Plan (FY 2009 to 2011).

ISO 14001-Certified Unitika
Organizations
April 1999
November 1999
October 2000
January 2001
March 2001
March 2001
March 2001
March 2001
March 2001
March 2001

Evaluation of Financing
for Environmental Rating
Unitika has earned the overall
evaluation "a company offering
particularly advanced efforts toward
environmental issues," and in fiscal
2007, we received financing from theDevelopment Bank of Japan for
financing for environmental rating.
This financing was granted inrecognition of our development of thepolylactide-based material Terramac, which has received
widespread attention as a carbon-neutral material, andalso for our leading roles in turning the private sector
toward lower carbon emissions and achieving dramatic
reductions in CO2 emissions from energy sources. As aresult of a three-level environmental screening covering
management overall, operations, and performance,
Unitika received the highest rating.

October 2001
October 2001
October 2001
October 2001
October 2001
December 2001
December 2001
December 2003
February 2004
September 2004
June 2008

21

Ad'all Co., Ltd.
Unitika Sakoshi Plant
U-ai Electronics Corp.
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 Plant
Unitika Plant Engineering Co., Ltd., Tarui Group
Unitika Glass Fiber Co., Ltd., Tarui Plant
Diabond Chemical Co., Ltd.
Terabo Co., Ltd.
Union Co., Ltd.

History of Environmental Preservation Activities

Environmental Report

Overview of Environmental Impact
Environmental Impact From Business Activities (FY 2008 Figures)
The Unitika Group is aware of the various types of environmental impact caused by our business activities, and we areworking to obtain accurate data on its severity and on reducing it. The diagram below shows the Unitika Group's materials
flow for FY 2008. The transfer and emission quantities of each chemical regulated by the PRTR (Pollutant Release andTransfer Register) System are shown below.

INPUT

OUTPUT

Atmospheric emissions
SOx: 108 tons CO2: 421,000 tons (t-CO2)
NOx: 433 tons Dust: 14 tons

Water
55,744 thousand m3

Waste water
Waste water quantity: 54,781 thousand m3
COD emission quantity: 297 tons

Energy225,000 kL(crude oil equivalent)

UnitikaGroup'sbusiness
activities

Waste products
Final external disposal quantity: 8,175 tons

Chemicals*
Raw materials
369,000 tons

Inter

nal recycling

14,557 tons

Emission quantity: 139 tons
Transfer quantity: 34 tons

All products
Production quantity: 322,000 tons

External recycling
10,153 tons

*Substances requiring registration under PRTR System

22

Overview of Environmental Impact

Environmental Report
Work on Reducing Environmental Impact
Unitika is minimizing its air and water pollution, and helping curtail global warming. Today's manufacturing industry
is being called on to preserve the global environment, and we are actively working on environmental measures.

Air Pollution
The Unitika Group is engaged in initiatives to reduce the amountof atmospheric emissions in order to prevent air pollution.
Domestic plants are pursuing measures such as switching fromfuel oil to liquefied natural gas (LNG) and the abolition of diesel
power generation.

Dust emissions

As a result, in fiscal 2008, we further reduced emissions of dust,
nitrogen oxides (NOx), and sulfur oxides (SOx).
Going forward, we will work to reduce emissions throughappropriate operation management.

NOx emissions

SOx emissions

t

t

t

70

1,400

700

60

1,200

600

50

1,000

500

40

800

400

30

600

300

20

400

200

10

200

100

0

0

'00 '01 '02 '03 '04 '05 '06 '07 '08

0'00 '01 '02 '03 '04 '05 '06 '07 '08

Fiscal year

'00 '01 '02 '03 '04 '05 '06 '07 '08

Fiscal year

Fiscal year

External Group Companies

Unitika Domestic Plants & Internal Group Companies

Water Pollution
The Unitika Group had chemical oxygen demand (COD)
emissions of 297 tons in fiscal 2008 representing a 9%
year-on-year increase. Meanwhile, total wastewater emissions
decreased year-on-year by 3% to a total of 54,781 thousand

tons. Water resources used are treated and monitored for quality
before being released back into rivers, the ocean, or seweragesystems.

COD emissions

Total waste water quantityt500

Millions of tons

5,700
5,600

400

5,500
300

5,400

200

5,300
5,200

100
0

5,100
'00

'01

'02

'03

'04

'05

'06

'07

5,000

'08

'00

'01

'02

'03

'04

'05

'06

'07

'08

Fiscal year

Fiscal year

Unitika Domestic Plants & Internal Group Companies

23

External Group Companies

Air Pollution / Water Pollution

Environmental Report

Waste Products
Unitika is endeavoring to reduce industrial waste by promoting
measures such as reducing the quantity of waste generated andselling recyclable resources.
Reduced thermal recycling at some plants and other factors saw
the quantity of processed industrial waste rise slightly in fiscal

2008 to 8,176 tons, marking a year-on-year increase of 3
percent. Unitika will continue its efforts to reduce industrial waste
by promoting the reduction of the quantity of waste generated
and the sale of recyclable resources.

Quantity of processed industrial waste productst
10,000
8,000
6,000
4,000
2,000
0

'00

'01

'02

'03

'04

'05

'06

'07

'08

Fiscal year
Unitika Domestic Plants & Internal Group Companies
External Group Companies

Rate of Recycling
Unitika is making efforts to improve its rate of recycling byreusing materials, selling recyclable resources, and reducing thequantity of waste that is burnt.
In fiscal 2008, the average rate of recycling at Unitika and eightexternal group companies worsened to 92.2%, marking a
year-on-year decrease of 1 percent. This was mainly attributableto reduced thermal recycling and other factors.

Rate of recycling
%
100
80
60
40
20
0

'04

'05

'06

'07

'08

Fiscal year
Average of Unitika Domestic Plants & Internal Group Companies
Average including External Group Companies

24

Waste Products / Rate of RecyclingEnvironmental Report

Handling of Chemical Substances
The Unitika Group maintains a policy of quantitatively managing
chemicals and substances thought to be hazardous to human health, as
set forth in regulations like the Occupational Health and Safety Law and
the Basic Environment Law, and at each of our plants these substances
are strictly controlled. The Pollutant Release and Transfer Register(PRTR) system based on the Chemical Substances Management Act(Act on Confirmation, etc. of Release Amounts of Specific Chemical

Substances in the Environment and Promotion of Improvements to theManagement Thereof) is a system in which companies report data
regarding emission/transfer amounts of specified chemical substancesthat are thought to be hazardous to human health and/or the ecosystem,
which is then made public by the government.
In fiscal 2008, the Unitika Group reported on its emissions and transfer
of 23 substances that are subject to the system.

The 23 substances requiring registration under PRTR System
Acetaldehyde

Toluene-caprolactam

Antimony and its compounds

XyleneHexamethylene diamine

Asbestos

Cobalt and cobalt compounds

1,2,4-benzenetricarboxylic acid 1,2-anhydride

Bisphenol A

1,4-dioxane

Boron and its compounds

Bisphenol A epoxy resin

Dichloropentafluoropropane

Poly(oxyethylene) = alkyl ethyl

Ethylene oxide

Dichloromethane(Methylene chloride)

Poly(oxyethylene) = nonylphenol ethyl

Ethylbenzene

N, N-dimethylformamide

Methyl methacrylate

Ethylene glycol

Terephthalic acidEmission and Transfer Amounts for PRTR System-Regulated Substances in Fiscal 2008

Substance(annual tons)

Atmosphere

Water

Total Amount of Emission

Transfer AmountAcetaldehyde

5

2

7

-

Asbestos

-

-

-

2

-

0

0

5

-caprolactam

15

0

15

-

Dichloropentafluoropropane

1

-

1

-

Dichloromethane(Methylene chloride)

86

0

86

9

Bisphenol A

-

-

-

1

17

-

17

15

Boron and its compounds

-

10

10

0

Poly(oxyethylene) = alkyl ethyl

-

3

3

0

Other

1

0

1

2

Unitika Domestic Plants &Internal Group Companies Total

107

12

119

17

Unitika External Group Companies Total

18

3

21

17

Terephthalic acidTolueneCompared to fiscal 2007, amounts of chemical substance emissions
in fiscal 2008 increased slightly, while transfer amounts maintained
approximately the same levels. Transfer amounts were successfully
reduced due to the full implementation of a system for collecting andreusing organic solvents that began in fiscal 2006.
We are committed to setting voluntary limits reductions in pollutant
emission and transfer, including improving processes to optimize ouroperations while at least maintaining or even reducing ourenvironmental impact.

Emission/Transfer Amounts of Substances Subject to the PRTR System
350
300
250
200
150
100
50
0

'04

'05

'06

Fiscal Year

'07

'08

Transfered
Emitted25

Handling of Chemical Substances

Environmental Report

Energy Saving & Global Warming
The Unitika Group is engaged in a variety of energy-saving
initiatives aimed at reducing emissions of greenhouse gases,
specifically, CO2 emissions related to energy use in order toreduce energy consumption and energy source unit.

due to reduced production volume and other factors.
Compared to fiscal 2007, energy consumption and CO2
emissions decreased in fiscal 2008. This was in part due todecreased production volume, but is also partially attributable tothe switch from fuel oil to natural gas, the abolition of diesel
power generation, and low-key efforts to save energy.
We will continue to work on preventing global warming from an
all-encompassing perspective, examining various indicesthroughout the manufacturing process.

Alongside other measures, the switch from fuel oil to natural gas
at the Uji, Okazaki, and Sakoshi Plants and the abolition of diesel
power generation and switch to purchased power at the Tarui
Plant and Toyohashi Plant partially improved (i.e. reduced)
energy source unit. However, as a whole, energy source unit
worsened (i.e. increased) year-on-year by 1 percentage point,

Energy consumption quantity(crude oil equivalent)

Changes in CO2 emissions from energy generation(based on CO2)

Thousands of kL
300

Thousands of tons
900

250
200

800

150
100

700

50
0

600
'90

'95

'04 '05 '06
Fiscal year

'07

'08
500

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

400
300

100
80

200

60
100

40
20
0

0
'90

'95

'04 '05 '06
Fiscal year

'07

'90

'08

Unitika Domestic Plants & Internal Group Companies(Excludes U-ai Electronics Corp. and Unitika NP Cloth Co., Ltd.)

'95

'04
'05
Fiscal year

'06

'07

'08

Unitika Domestic Plants & Internal Group Companies
External Group Companies

Note: Energy source unit: Energy usage (crude oil equivalent in 1000s of kL) divided by output (in 1000s of tons)

26

Energy Saving & Global Warming

Environmental Report

Logistics
To reduce the environmental impact of transportation needed for inputs of raw materials and outputs of products and waste products, Unitika
implements the four logistic guidelines shown below. These guidelines have helped us make across-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 or materials of equal quality with other companies.
Within Japan, we will use container transport by sea 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 environmentally-friendly 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 for more efficient truck loading.

In line with an April 2006 revision to Japan's laws pertaining to rationalized energy consumption, we have started energy-saving initiatives for logistic.
In FY 2008, Unitika and Unitika Group companies were registered as the designated shippers for a total freight transport volume of 95,586 thousand
ton-km, resulting in a CO2 emissions volume of 33 thousand tons (t-CO2).

Environmental Complaints
Based on Unitika's corporate vision of "being a company that
contributes to people's lives and the environment, and that has apositive presence within society," we make utmost efforts to pursue ourbusiness and activities in ways that are considerate of the people living
around us. Despite these efforts, in fiscal 2008 we still received anumber of complaints regarding noise, industrial odors, and otherincidences of environmental disturbance.
In each case, we looked to find both causes and solutions andcommunicated these to those in the surrounding communities while
taking steps to ensure their non-recurrence. In all such situations we will
do our utmost to improve so that we may contribute positively to theliving environments of the people living around us.
Further, in fiscal 2008, for Unitika and the Unitika Group, there were no
incidences of accident or pollution that might have led to environmental
problems, nor were there any violations of environmental laws andregulations.

Complaints from Surrounding Neighborhoods
Offensive Odor

No. of Incidences
12

Noise
Water Quality

10
8
6
4
2
0

'01

'02

'03

'04

'05

'06

'07

'08

Fiscal year

*There were no complaints regarding air quality from fiscal 2001 to 2008.

27

Logistics / Environmental Complaints

Environmental Report

Environmental Accounting
Method of Tallying Environmental
Accounting Data

The Unitika Group implements environmental accounting
as part of our environment-conscious business activities.
In conducting our environmental accounting, we follow the2005 edition of the environmental accounting guidelines
published by the Japanese Ministry of the Environment in
May 2005.Unitika will continue to release clear andaccurate environmental accounting data.

Data provided by : Unitika Domestic production sites & InternalGroup Companies and Union Co., Ltd.
Applicable period : April 1, 2008 to March 31, 2009 (FY 2008)
Calculation method: Investment amounts include theenvironmental investment on items forwhich the environment is not the main
objective. Expense amounts include
labor costs, general expenses anddepreciation.

Purpose of Environmental Accounting
To make environmental preservation more efficient by
quantitatively identifying the amounts of investments andexpenses for environmental preservation, and to makedecision-making processes in a more reasonable way.
To disclose environmental accounting information to ourstakeholders and to fulfill our responsibility to keep theminformed.

Unitika's fiscal 2008 environmental investment was 441 million
yen. Most of these funds were used on items related to lightening
the environmental burden and recovering and recycling
chemical substances and materials.
Environmental expenses were 2,833 million yen, mainly for
maintenance and management of equipment to prevent
pollution, waste processing (including recycling expenses), andproduct R&D to reduce environmental impact.

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

Capital investment

Cost

249

839

Pollution (water, air and noise pollution) prevention measures

77

Energy saving, global warming prevention

Environmental preservation costs

Remarks

1,304

Waste disposal, recycling146

Packaging material recycling

82

Environmental management system maintenanceenvironmental education, impact monitoring

R&D costs

320

Developing environmentally-friendly products

CSR costs

40

Forestation improvements, beautification campaigns

Environmental damage costs

23

Quantity-based tax on environmental impact of SOx emissions

Resource recycling costs

189

Upstream/downstream costs
Management activity costs

Total

3

441

2,833

Economic Effects(Millions of yen)

The table lists items with a clear basis for calculation that have highsubstantive benefits for environmental preservation. Note thatinferred benefits have not been calculated.

Item

28

AmountReduction in energy expenses

48

Reduction of costs associated with energy-efficient powersources and industrial waste reduction

28

Income from sale of recycled resources

163

Environmental Accounting

Environmental Report
Technology and Products for Environmental Safety
Unitika offers various products and technologies using a basic approach that aims to create
sustainability through resource recycling.

Water Treatment Facilities
Water supply facilities
Advanced water supply treatment facilities
Advanced sewage treatment facilities
Agricultural community waste water treatment facilities
Seepage water treatment facilities in final disposal sites

Industrial waste water treatment equipment
Sludge reduction equipment
Water supply membrane filtration equipment
Sewerage facilities
Granular desphosphorizing equipment

Improved Combined Sewerage
Treatment System

Fishery community waste water treatment facilities
Waste water treatment facilities in garbage incineraters
Sewage treatment equipment
Sludge composting equipment

MarimoHigh-Speed Filtration System
Marimo is a high-speed filtration system developed by Unitika
that offers high performance and uses a special fiber as thefiltration material. Marimo's high-speed function provides afiltration rate five times faster than conventional sand filtration
systems. Offering a significantly higher level of treatment
efficiency, it enables easy cleaning and draws on Unitika's
many years of expertise as a fiber manufacturer. Marimo isused in a wide range of applicationsin tertiary waste water treatment,
waste water reuse, industrial
water filtration, andmanufactured water
pretreatment.

Since large volumes of combined sewage flows into sewage
treatment sites in a short time when it rains, the sites can't treat it
fast enough, and untreated sewage is released into rivers or otherwaterways. To solve this problem, Unitika has developed an
improved combined sewerage treatment system driven by ourMarimo high-speed filtration system, enabling rapid and stable
treatment over short amounts of time. It
efficiently performs variable high-speed
filtration on top/bottom counter-currents,
providing high treatment capacity inrain or shine. It removes pollutants at a
filtration rate of up to 2,000 m/day inrain, and at a standard rate of 1,000
m/day in clear weather. It is ahigh-performance system offering
stable treatment capacity at a low cost.

Sludge Reduction Equipment
To enable the type of sustainable industrial processes that will
ensure the future of mankind and our planet, Unitika hasdeveloped equipment to reduce the volume of sludge
generated when treating biological materials. The equipment
continuously mills the excess sludge
generated in biological material
treatment tanks using fine ceramicbeads. When the milling has
solubilized the sludge, it isfed back into the biologicalmaterial treatment tank tobiodegrade.

Marimo filtration material

Biological Contact Filtration Facility
A clean water facility that uses spherical carriers of polyester
fiber as the filtration material. Biological membranes form on
the surface of the filtration material, and microbes such as
nitrifying bacteria and iron oxidizing bacteria propagate within
the filter layer. The biological purifying properties of thesemicrobes efficiently
remove ammoniacal
nitrogen, iron andmanganese. The facility
can fit within a small
footprint and has a highpure water treatment
capacity.

Fine ceramic beads

Phosnix Granular Desphosphorizing System
A system that recovers phosphorus
in waste water as granules ofmagnesium
ammonium phosphate(MAP), a substancethat can be effectively
used as a fertilizer.

Kita Koriyama water purification facility

MAP

29

Water Treatment Facilities

Environmental Report

Garbage Processing Facilities
Stoker incinerators
Gasifying-melting furnaces
Garbage crushing and sorting facilities
Exhaust gas treatment equipment

Regenerative-heat deodorizing equipment
Fluid-bed incinerators
Incineration residue melting furnaces
RDF (refuse-derived fuel) facilities

Next-Generation Stoker Incinerator:
Uniburn System 21

Fly ash treatment equipment
Container and wrapping recycling facilities

Advanced-Function Incineration Residue
Melting System: Unimelt System 21
Developed as the result of our research on reducing and cleaning
incineration residue, the Unimelt System can melt incinerator ash,
fly ash, incombustible residue left after processing bulk garbage,or incombustible residue mixed in with combustible residue. Waste
plastic that previously couldn't be reused can be melted together
with other garbage, making the system effective for plastic thermalenergy applications. Unimelt is a revolutionary system that enables
residue to be cooled into slag after melting, for effective use as aconstruction material. Unimelt can also melt items processed atlandfill disposal sites, enabling recycling at those sites.

Unitika started constructing city garbage incineration facilities
in 1971, and has now built 90 facilities. Uniburn System 21 is anext-generation city garbage incineration system that draws
on these many years of experience, developed with the aid ofGerman technology for stoker incinerators with boilers. Its low
air ratio and high combustion temperature improve the heatrecovery rate and enable significantly cleaner exhaust gas.
These features reduce environmental impact and lower total
garbage processing cost.

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

Yachimata City Clean Center

Air Pollution
Deodorizing equipment
Soil surveys/analysis
Pollution cleanup measures

Dust collection equipment
Soil pollution cleanup measures
Pharmaceutical products, resins, filtration materials

Environmental Surveys, Measurement and Analysis:
Unitika Environmental Technical Center Co., Ltd.
Unitika Environmental Technical Center (UETC) uses the latest
equipment and technology to carry out environmental surveys,
measurement and analysis, along with various investigations needed byseveral industries. UETC is certified by Japan's Ministry of theEnvironment as a qualified contractor for dioxin analysis, and has
gained a reputation for solid reliability. To enable more accurate
analysis, UETC can analyze trace amounts of dioxins. It is highly
experienced in soil surveys (a recent area of concern in Japan), andhas measures to combat soil and groundwater pollution permanently.
UETC also helps protect living environments through activities such as
sick building surveys; air quality, weather, noise and vibration
measurements; technical support for water treatment; exhaust gas, odor
and work environment measurements; and analysis of river water, waste
water, drinking water, asbestos, and insulation oil trace PCBs.

30

Environmental
hormone analysis

xtracting a sample witha simple boring machine

Garbage Processing Facilities / Air Pollution

Environmental Report

Plant-Derived Biomass Material
Terramac
Terramac is a biomass material made from a polymer derived from plants
such as corn. Biomass materials are organic resources derived fromsustainable biological sources except for fossil resources. Terramac
ultimately degrades into carbon dioxide and water, which are absorbed
into plants such as corn for their growth. Then, the corn can be turned
Terramac again. So Terramac is part of the world's natural 'recycling
system'. Conventional plastic products are made from oil, a limited andnon-renewable raw material that will run out in the not-so-distant future if
we continue using it. It has a wide range of applications in clothing,plateware, cups, wrapping films, cosmetic bottles, teabags, planters,
trash bags, electronic device components and all areas of consumer
demand. Unitika has developed heat-resistant foam containers and foodcontainers made of Terramac, which base ingredient is polylactic acid.
These containers are the world's first polylactic acid products that canhold hot water inside and are microwave-safe. Terramac is used inapplications such as mobile phone casings, which require demanding
durability and heat resistance specifications, and digital MFP parts, which
are required to be fire-resistant. Recently, we have used alloy technology
to develop a new heat-resistant grade of resin for injection molding thatfeatures improved molding performance and shock resistance thanconventional resins. This resin is used as an exterior covering for healthmeters and other applications. Combining the natural advantages of plantmaterial with human technology, Terramac is an attempts to be the ideal
material supported by both the Earth and human beings.

Unitika's proprietary technologymPolylactic Refor ing
acid

tio

n

Terramac
Pr

Po
ly

me
r

iza

e
oc

ng
ssi

Lacticacid

Fermentation

TERRAMAC'smaterial circulation system

Co
mb
ustio
B io
n
deg
r ad ing

Products

Starch

Se

pa

ra
tio
n
Biomass resources(such as corn)

Photos

esis
ynth

cess

g pro

yclin

c
To re

Temperature
HumiditypH

CarbondioxideWater
Light
Minerals

Human activities, chemical reactions
Reactions caused by activities of organisms

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

Can be used for these applications.

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 Japan Bio
certification standard: Plastics Association (JBPA). (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 is reported to have antibacterial properties.
(Bokin bobai, Vol. 29, No. 3, pp. 153 to 159, 2001)

Low combustion heat:

Low combustion heat of approximately 19 kJ/g 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.

Digital equipment parts(Fuji Xerox Co., Ltd.)
Solar power digital scales(Tanita Corporation)

Expanded method resin foams(Sekisui Plastics Co., Ltd.)Terramac products with the IngeoTM are in compliance with the NatureWorks Brand Policy, and uses NatureWorks® biopolymers.
NatureWorks, Ingeo, and the Ingeo logo are registered trademarks of NatureWorks LLC in the United States andother countries.
www.natureworksllc.com

31

Plant-Derived Biomass Material

Environmental Report

Anticorrosive Sheeting
Segurova
Japan's River Law was partially revised in June 1997, and in linewith the new law, Unitika Fibers developed Segurova, ananticorrosive sheeting material designed with the concern to naturalenvironments and landscapes. Manufactured using a 3-D weaving
technology to ensure that gaps and thicknesses are kept constant,Segurova resists water currents, and provides high corrosion
resistance. Designed for weather resistance and endurance, it ismainly comprised of black clope-dyed polyester monofilament. To
give some components partial dimensional stability, they use binder
fibers with a core 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 toreinforce the corrosion resistance of herbaceous plants such as
lawns or seedlings. It stops corrosion by water currents atembankment surfaces and river banks, realizing a new
anticorrosion sheeting-based construction method. Segurova has

already become the first product in the industry to be awarded the
Public Works Research Center's Anticorrosion Sheet Performance
Evaluation Certification (certification No. 0001).

Unitika on Show at the Tokyo Fiber '09 Milan
Exhibition Biodegradable Planters
Tokyo Fiber '09 was held from April 21-27, 2009, at La Triennale di
Milano, in Milan, Italy.
Unitika exhibited Segurova®, its anticorrosive sheeting made from its
plant-derived biomass material Terramac®. Our design proposed a
new type of environmentally-friendly planter. In collaboration withflower artist Makoto Azuma, we created a moss garden titled“Biodegradable Planter” in the middle of the exhibition room. A
waterproof sheet was first laid out and covered with Terramac(Segurova). This was then covered with moss and Japanese royalferns and scattered with grass seed. The grass grew 5 cm by the endof the exhibition. The popular ecological material attracted attention asa carbon-neutral planter that can be freely shaped and is quite unlike
anything else on the market.

32

Anticorrosive SheetingEnvironmental Report

Recycled Polyester Fiber
Uniecolo

PET bottle recycling process

Demand for PET bottles has been growing year by year, and thecost of fossil fuel-based plastics is rising sharply. For that reason,
used bottles have become an important resource themselves. As
part of our efforts to preserve the environment, Unitika has been
active in PET bottle recycling. Uniecolo was developed through ouroutstanding spinning technology. Offering soft hand-feeling andgood bulkiness, it is an environmentally-aware fiber with the samefeatures as conventional polyester, and designed to enable reuse oflimited resources.

PET bottle recovery.

Removal of impurities such as caps and labels.

Cut into small flakes.

Heated into chips.

Drawn out to filament yarn.
Made into staple fiber.

Made into yarn by spinning.

Made into fabric by knitting or weaving.
Cut and sewn into product.

Plant-Derived Biomass Material
CastlonCastlon is a 100% plant-derived nylon fiber with low environmental
impact. It is made from the inedible seeds of the castor oil plant.
It features a unique molecular structure unlike that of conventional
nylon fiber that gives it excellent wear, bend, and fatigue
resistance, as well as resistance to solvents, dimensional stability,and flexibility at low temperatures. This up-and-coming material islightweight and while its characteristics make it perfect for use in
sportswear and bags, non-clothing-related applications are also
expected in the future.

Castor oil plantleavesCastor oil beans,sometimes also called
castor oil seeds

Bags made using Castlon

33

Recycled Polyester Fiber / Plant-Derived Biomass Material

Environmental Report

New Natural Fibers
Sylph
Good clothing materials need to be gentle, comfortable andversatile, while enabling attractive tailoring. Materials must meet allthese requirements to make novel and comfortable clothing, andUnitika's groundbreaking new material Sylph generates just suchnew possibilities. More than ten years after the development oflyocell fiber (the raw stock fiber), Sylph was created by using amore evolved form of the raw stock fiber and the latest advanced
fabrication technology. Sylph offers a larger variety of highFiber category

added-value materials, and raises the standard of quality for lyocell
products. And since it is also extremely environmentally friendly,
Sylph is setting the new standard for materials meeting 21st-century
needs.

Recycling/manufacturing process not generating harmful substances

Cotton, hemp, others
Natural fibers

Viscose,othersRecycled
cellulose
fibersMix

Pulp

Plant fibers

Solvent
fiber spinningcellulose
fibers

Dissolving

Spinning

Cleaning, bleaching,dryingRestored

Lyocellraw stock

Recovery

Sylph
Semi-synthetic
cellulose
fibersAmine oxide
distillation

Dilute amine oxide
recoveryAcetate, triacetate, others

Organic Cotton Material
Naturecot
Naturecot is a material that employs organic cotton that meets
Organic Exchange*1 standards.
In order to introduce a wider range of organic cotton products to
consumers, Unitika was determined to develop an organic blend
material that combines 100% organic cotton with style andfunctionality.

organization to guarantee that customers receive genuine organic
cotton products. The company obtained Organic Exchange
certification through Control Union*2 and created a production
system that ensures traceability.
*1 Organic Exchange: A US-based NPO that promotes organic
cotton worldwide.
*2 Control Union: An organic certification organization based in
Rotterdam, the Netherlands.

Organic cotton is defined as cotton grown in soil that has not had
any agricultural chemicals applied to it for at least three years.
Unitika Textiles Ltd., decided to employ a third-party certification

Characteristics

Quality assurance

Fine thread sizes possible.
Can also be used with“stand-out” materials.

Sylph series, Rorantan,
and others

Can be used withenvironmentally-friendly
materials.

Terramac, Uniecolo,and others

Can be used with“stand-out” spinningtechnology

Palpa, Freetwist,
Spin-twisting, and others

Raw cotton
EU 2091/92
USDA/NOP*Certified raw cotton used
Certification No.: CU810982

34

Raw cotton

Weaving factory
Knitting factory

Processing factory
Dyeing/Printing

Organic Exchange certification

New Natural Fibers / Organic Cotton Material

Environmental Report

Recycled Polyester Nonwoven Sheeting
EcomixRecycling scraps of PET bottles and nonwoven fabric products

Since recycling is an important part of our environmental
preservation efforts, Unitika has developed, by its outstanding
spunbond technology, a polyester filament nonwoven fabric called
Ecomix, made from scraps of PET bottles or nonwoven fabricproducts. Ecomix has already obtained the Japan Environment
Association's Eco Mark certification (No. 00105029). With
outstanding water permeability and endurance, Ecomix has been
approved for a wide range of public works applications, including
protective mats for water barrier sheets in waste disposal sites,
sheets for erosion and torrent control in banking reinforcement
construction and harbors, suction-preventing sheets for riverbank
protection, and plastic board drains. With its cost-effective wide
sheets and highly elastic structure, Ecomix can easily handle
warping and projections, and is gaining popularity as sheeting fortoday's needs.

Nonwoven fabricproduct scrap recovery.

PET bottle recovery.

Removal of impurities
such as caps and labels.
Cut into fine fragments.

Cut into small flakes.

Heated into chips.

Activated charcoal is mixed into chips,
which are spin-drawn to yarn.
Made into sheet, hot-rolled to melt.

Finished nonwoven fabric sheet.

Glass Beads
Unibeads for use in Road Marking
Unibeads for road marking are microscopic transparent sphericalglass beads. Utilizing the effects of recursive reflection lenses, they
are used for a variety of road marking applications to help create
safer roads by improving nighttime visibility.
They are a recycled product that makes use of glass cullet fromwaste construction materials.
Unibeads are a safe, environmentally-friendly product that does notleach harmful contaminants into the soil.
They have received certification (No. 05 131 001) from the Japan
Environment Association as a product that helps reduce
environmental impact.
As an environmentally-friendly green purchasing product they arealso registered as an Osaka Prefecture-approved recycled productrecognized by the Governor of Osaka Prefecture (No. 20-126).

35

Recycled Polyester Nonwoven Sheeting / Glass Beads

UNITIKA Group
Corporate Social Responsibility
Report 2009

Environmental Report

Production Site Information

Uji
Uji Plant
Plant

OkazakiOkazaki Plant
Plant

Toyohashi
Toyohashi Plant
Plant

Tarui
Tarui Plant
Plant

Location: 5 Uji-Tonouchi, Uji-shi,
Kyoto, Japan 611-0021
Site area: 311,781 m2
ISO 14001:
Certification No. JCQA-E-0058
Certification No. JCQA-E-0249
Main products: Nylon resin, nylon fiber,
engineering plastics, nylon/polyester film

Location: 4-1 Hinakita-machi,
Okazaki-shi, Aichi, Japan 444-8511
Site area: 313,865 m2
ISO 14001:
Certification No. JCQA-E-0292
Main products: Polyester resin, polyester
fiber, spunbond (filament nonwoven fabric),
medical equipment, environmental business

Location: 101 Matsunami, Akebono-cho,
Toyohashi-shi, Aichi, Japan 441-8527
Site area: 270,804 m2
ISO 14001:
Certification No. UJL A16735
Volume: I (U-AI Electronics Corp.)
Main products: Nonwoven fabrics(sheeting for civil works and roofing
applications), biobusiness (cauliflower
mushroom: Sparassis crispa),
Printed circuit boards

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

36

Air

Water

Air

Water

Air

Water

Air

Water

Substance

Unit

Regulation
value

Measuredvalue

SOx total

Nm3/hour

29.1

NOx

ppm

199

55

Dust

g/Nm3

0.025

<0.001397

5.3

COD load

kg/day1,131.4

Suspended matter

mg/l

30

6

Oil

mg/l

16

0.54

Nitrogenkg/day722

193

Phosphorus

kg/day98

6

Substance

Unit

Regulationvalue

SOx total

Nm3/hour

34.89

NOx

ppm

100

74

Dust

g/Nm3

0.05

<0.002
70.2

Measured
value

0.03

COD load

kg/day718.7

Suspended matter

mg/l

20

5

Oil

mg/l

10

<1

Nitrogenkg/day385

29

Phosphorus

kg/day51

6

Substance

Unit

Regulationvalue

SOx total

Nm3/hour

0.49

NOx

ppm

180

75

Dust

g/Nm3

0.3

0.003
7

Measured
value

0.031

COD

mg/l

11.9

Suspended matter

mg/l

70

4

Oil

mg/l

5

<1

Nitrogen

mg/l

120

12

Phosphorus

mg/l

16

0.32

Substance

Unit

Regulation
value

SOx

K value

11.5

1.0

NOx

ppm

180

120

Measured
value

Dust

g/Nm3

0.3

0.004

COD load

kg/day

108.4

27.0

Suspended matter

mg/l

50

4

Oil

mg/l

5

1

Nitrogen

mg/l

120

1.9

Phosphorus

mg/l

16

0.09

Production Site Information

UNITIKA Group
Corporate Social Responsibility
Report 2009

Environmental Report

Miyagawa
Miyagawa MillMill

Location: 341 Honmachi, Obata-cho,Ise-shi, Mie, Japan 519-0593
Site area: 103,404 m2
Main products: Yarn and woven fabricmade from wool and wool blended
materials

Ceased operations inJuly 2009

Sakoshi
Sakoshi Plant
Plant

TokiwaTokiwa Mill
Mill

Union
Union Co.,
Co., Ltd.
Ltd.

Air

Water

Location: 846 Takano, Ako-shi,
Hyogo, Japan 678-0171
Site area: 191,236 m2
ISO 14001:
Certification No. JCQA-E-0093
Main products: Vinylon fiber(for industrial materials such as cement,
rubber reinforcements, tatami thread
and papermaking binders)

Location: 88 Nakahara, Souja-shi,
Okayama, Japan 719-1195
Site area: 137,551 m2
ISO 14001:
Certification No. JCQA-E-0221
Main products: Cotton 100% yarn,
Blended yarn with synthetic & cotton,
Synthetic woven fabrics blended
with cotton

Location: 10-1 Ohmine-Minamimachi,
Hirakata-shi, Osaka, Japan 573-0145
Site area: 6,886 m2
ISO 14001:
Certification No. JCQA-E-0835
Main products: Glass beads

Air

Water

Air

Water

Air

Water

Substance

Unit

Regulation
value

Measured
value

SOx

K value

17.5

NOx

ppm

180

1.5
82

Dust

g/Nm3

0.3

0.003

COD load

kg/day91.2

16.0

Suspended matter

mg/l

30

2.0

Oil

mg/l

20

3.4

Nitrogen

mg/l

10

4.5

Phosphorus

mg/l

1.5

0.04

Substance

Unit

SOx total

Nm3/hour

9.1

NOx

ppm

170

69

Dust

g/Nm3

0.12

0.019

Regulation
value

Measured
value

3.8

COD load

kg/day348

80

Suspended matter

mg/l

3.9

1.96

Oil

mg/l

10

1.26

Nitrogen

mg/l

15

0.58

Phosphorus

mg/l

2

0.04

Substance

Unit

Regulation
value

Measured
value

SOx

K value

17.5

NOx

ppm

130

0.5
82

Dust

g/Nm3

0.3

0.007

BOD

mg/l

80

3

Suspended matter

mg/l

100

<1

Oil

mg/l

2.5

<1

Nitrogen

mg/l

-

-

Phosphorus

mg/l

-

-

Substance

Unit

SOx total

Nm3/hour

-

-

NOx

ppm

180

35.0

Regulation
value

Measured
value

Dust

g/Nm3

0.15

0.024

BOD

mg/l

300

18.0

Suspended matter

mg/l

300

21

Oil

mg/l

2

<0.5

Nitrogen

mg/l

150

1.5

Phosphorus

mg/l

20

0.17

Water quality refers to values for outgoing wastewater.

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).

37

Production Site Information

Inquiries
IR and PR Group
Corporate Control Department
4-1-3 Kyutaromachi, Chuo-ku, Osaka 541-8566, Japan
Phone: +81-6-6281-5695
Website: http://www.unitika.co.jp