Environmental Report 20190

Table of Contents

M es s ag e f rom t h e Top M an a ge m e nt ・・・・・・・・・・

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C om p any P r ofi l e・・・・・・・・・・・・・・・・・・・

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P rod uc t s

Envi ronm ent al P olicy

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Business Relat ed Environm ent al Loa d・・・・・・・・・

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FY2018 Targets and Achievements
Efforts for Energy Saving
Efforts for Recycling

Efforts for Green Procurement

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Efforts of Envi ronm ent al Education
C SR Act ivi ti es

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Waku-waku taiken juku

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Ikuyo Nakamichi Piano Recital

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１１

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１１

FY2018 Environmental Accounting Results
Contacts

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Academic support activities
Future Efforts

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Voluntary Clean up Activity
Illumination

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１３

1◆ Message from the Top Management

UNION TOOL CO.

CEO
President & COO

Takao Katayama
Hiroshi Odaira

UNION TOOL CO. manufactures and sells industrial cutting tools. One of our main products is a PCB drill, a special tool for
drilling through-holes on electronic circuit boards. In addition to PCB drills, we produce carbide end mills, which are used to cut diesand precision parts with blades installed on the side, and are making efforts to increase the performance by applying our unique coating
film in order to meet global high-quality demand.
As a leading manufacturer of PCB drills over the past half century, we have earned the trust of our customers.
In recent years, historical events have occurred one after another in the world, and the circumstances surrounding every company
have changed day by day, making it more difficult to predict. Environmental issues are no exception to this trend, and relevant
regulations are becoming stricter year by year. At the same time, customer demands are more and more increasing both in Japan andoverseas. Sometimes, environmental initiatives, such as energy conservation and green procurement, run counter to production
activities and quality improvement. However, we consider the environmental efforts not only as a natural responsibility of
manufacturers, but also as an essential part of our business activities. Accordingly, we are making continuous efforts to improve ourenvironment by using the environmental management systems mainly at our factories.
In this age of extreme confusion, we must act in accordance with our management philosophy of "Contributing to society throughsuperior products", as well as our environmental policy of "Contributing to the creation of a rich global environment through corporate
activities based on love for nature and people". We are enhancing production capacity of our production bases and sales systems bytaking advantage of in-house product development, local production and sales based on our accumulated know-how. While working
on our core activities such as "research and development", "manufacture and sale" and "market development" to strengthen thefoundation of our company, we are also making efforts for environmental preservation and further development of the industry.
Each and every employee of our company is always looking forward and will continue to make every effort to improve capabilities
every day.
We would like you to know more about our recent activities by reading this 19th version of annual "Environmental Report". Your
continued guidance and support will be highly appreciated.

2◆ Company Profile

AmountCompany name: UNION TOOL CO.
◆ Changes in sales and ordinary profits (consolidated)
Head office: 6-17-1 Minami-Ohi,Shinagawa-ku,
100 mil. yen
Tokyo 140-0013, JAPANSales
Ordinary profits
Capital: 2,998.5 million yen
Accounting term: December 31
Number of employees:
813 persons (as of Dec. 2018)
Group-wide: 1,508 persons
Factories: Nagaoka Factory(Nagaoka-shi, Niigata Prefecture)
Mitsuke Factory(Mitsuke-shi, Niigata Prefecture)
Laboratory: Mishima Laboratory(Sunto-gun, Shizuoka Prefecture)
Fiscal year
Sales offices: Nagaoka Sales Office1) (Note) Due to the change in the fiscal period, the fiscal 2015
Osaka Sales Officeconsisted of 13 months.
Nagoya Sales Office
Anjyo Sales Office
Kita Kanto Sales Office
ISO14001: Nagaoka Factory (acquired it in March 2000)
Affiliate subsidiaries
Mitsuke Factory■TAIWAN UNION TOOL CORP.
(expanded the applicable range in August 2007)■UNION TOOL EUROPE S.A
Major businesses■U.S. UNION TOOL, INC.
Cutting tool business■UNION TOOL (SHANGHAI) CO., LTD.
Carbide drills for printed-circuit boards (PCB Drill)☆Acquired ISO14001
Carbide end mills■UNION TOOL (WAIGAOQIAO SHANGHAI) CO., LTD.
Other businesses■UNION TOOL HONG KONG LTD.
Linear motion bearings, rolling dies, Rolled and related■UNION TOOL SINGAPORE PTE LTD.
products, special-purpose machines, measuring equipment,■DONGGUAN UNION TOOL LTD.
☆Acquired ISO14001
biosensors, etc.
■UNION TOOL （THAILAND）CO., LTD.

◆ Products

PCB Drills

Rolling Dies

Carbide End Mills

Digital Measuring
Instruments

Liner Motion Products

Wearable
Heart rate Sensor

3◆ Environmental Policy

UNION TOOL CO.
Environmental Policy
Basic
Philosophy
To contribute to the clean global environment through the cooperate activities based on love for natureand human beings

Basic Policy
In order to maintain a harmonious balance among cooperate activities, regional society, and global environment
Nagaoka Factory and Mitsuke Factory (hereafter called “our factories”) shall conduct environmental conservation
activities based on the environmental management system conforming to ISO 14001 under the following policies.
1. With environmental impacts from activities, products and services of our factories accurately analyzed andgrasped, proper environment protection activities shall be conducted according to a definite plan, in which
objectives and goals are set within our technical and economical capabilities.
2. Continuous improvement of the environmental management system and environmental performance shall beassured through periodic review of the environmental objectives and goals.
3. Efforts shall be made to prevent environmental pollution not only in compliance with environmental laws andregulations, as well as requirements from interested parties whom our factories acknowledge, but also according
to our voluntary standards set within our capabilities.
4. To minimize the environmental impacts from activities, products and services of our factories, the following
important themes shall be promoted.
1) Energy saving
2) Green procurement
3) Recycling4) Resource saving
5. The environment policy shall be implemented and maintained through the environmental management system,
and also it shall be informed by the corporate management to all employees working at our factories.
6. The environment policy is open to public.

February 25, 2014
Hiroshi Odaira, President & COO

4◆ Business Related Environmental LoadWe are making efforts for effectively reducing our business related environmental load by carefully monitoring and controlling the
input and output of such load occurring throughout our business activities.
In the input phase, we pay attention to electric power, which accounts for more than 90% of the total CO2 emission, and are
aggressively reducing the CO2 emission through company-wide energy saving activities.

☆ The above data were collected in a period from January 2018 to December 2018.
*1 The CO2 emission was calculated according to “Enforcement Regulation of Act on the Rational Use of Energy”.
*2 The amount of industrial waste was based on “Report on Industrial Waste Management Slip and Diffusion of Electrical Manifest”

5◆ FY2018 Targets and Achievements
In FY2018, we made strenuous efforts to achieve the following targets on energy saving, recycling and resource saving, which aremajor themes of our environmental policy.
For the energy saving, we set a goal of reducing energy consumption by 1% from the previous fiscal year and achieved that goal inboth Nagaoka and Mitsuke factories.
For recycling, we promote the reuse of product cases. We are conducting this activity by examining a method of
approach considering efficiency and profitability in response to the changing circumstances.
For resource saving, we are developing new resource-saving tools and long-life tools through the development of
new manufacturing systems and will further improve our products so that they can be appreciated by morecustomers.

<FY2018Targets and Achievements>

Energy Saving

Item

Actions

FY2018 Targets

Evaluations

Pages

◎

7

Cut 5% of electrical power consumption

Cut 1% of electrical power

Cut 3.87% of electrical powerrate (*1) by FY2019 from that of FY2014.

consumption rate from that ofconsumption rate from that of[Nagaoka Factory]

FY2017FY2017

Cut 1% of energy consumption

Cut 1.54% of energy consumption

rate from that of FY2017.

rate from that of FY2017○

7

Investigation and management of

104% of collection target after
inauguration of outsourcing○

7

Understanding of the amountand status of collection
71% of collection target

△

-

○

-

○

-

Cut 5% of per-product energy consumption(*2) by FY2019 from that of FY2014.
[Mitsuke Factory]

drill case collection volume

Recycling

Promote recycling of drill cases.

Promote recycling of endmill cases.

Resource Saving

FY2018Results

Investigation and management ofendmill case collection volume

Development of three types of new

Development of three types of newlong life tools

long life tools

Development of two type of new

Development of two type of new

coating material for cutting tools

coating material for cutting tools

Develop longer service life tools.

[Evaluation] ◎: Exceeded the target. : Achieved the target. : Almost achieved the target. : Not achieved the target.
*1: “Electrical power consumption rate (kWh per 1,000 pieces)”= “Electrical power consumption (kWh)” / “Number of cutting tools produced (1,000 pieces)”*2: “Per-product energy consumption (kL per 1,000 pieces)”= “Crude oil equivalent energy usage (kL)” / “Number of cutting tools produced (1,000 pieces)”6◆ Efforts for Energy Saving
In FY 2018, each factory worked on energy saving activities by setting the goalof “reducing electrical power (energy) consumption by 1% from FY 2017.”
Nagaoka Factory reduced electrical power consumption by an amount equivalent
to 3.87% of the FY 2017 consumption through various measures while Mitsuke
Factory reduced energy consumption by an amount equivalent to 1.54% of the
FY 2017 consumption. As a result, both factories achieved the goal.
For incidental equipment of factories, we began replacing the conventional
lighting with LED lights in 2014. At Nagaoka Factory, we are implementing thiseffort in a planned manner toward the completion by 2020 while assessing thepriority of each floor.
In FY 2018, we also worked on productivity improvement and reduction in
producing unnecessary inventories, which have always been issues for
manufacturers, by promoting centralized management by close cooperation
between the production control department and the manufacturing sites. This
has also contributed to energy saving.

▲Replacement by LED lights

LED light replacement plan

We will continue making efforts to maintain efficient production activities
from a broad perspective.
Fiscal year

◆ Efforts for Recycling
In 2016, there was a major turning point in drill case collection and recycling
operations in Nagaoka Factory.
Recycle as many cases as possible to maximize the effective utilization of
resources has been our continuous challenge. And exhausting efforts by the sales
and product management departments enabled the case collection volume toincrease and a certain recycling rate to be maintained. However, as the productshipment volume increased, it became urgently necessary to increase the casecollection amount more than ever.
Furthermore, not only securing the storage location for the collected drill cases,
but also recycling the drill cases became increasingly important these years interms of the environmental activities, requiring to be considered as a more
specialized activity.

▲ Drill case

Based on the reviewing of recycling operation, we decided to collaborate with an external company for operations of collecting andrecycling drill cases.
We promoted recycling activities by setting an appropriate target for the collection quantity after assessing the status of the outsidecontractor even after the start of outsourcing. As a result, we were able to exceed the target in FY 2018.
Although we will continue to recycle the drill cases, we appreciate our customers’ cooperation to use the cases as cleanly as possible inorder to extend their service lives.

7◆ Efforts for Green Procurement
In order to provide eco-friendly and less environmental load products to ourcustomers, it is necessary to use eco-friendly materials and parts aggressively.
For that purpose, while conforming to European RoHS Directive and otherinternational chemical-related regulations, we have established our own Green
Procurement Guideline, which we follow when conducting material
procurement, to ensure the reliability of our products to customers.
For environmentally hazardous substances in our products, our Engineering
Design and Material Purchase departments, as well as the relevant suppliers,
have investigated and clarified the contents of those substances contained in
the materials, parts and packaging materials for our cutting tools and linear
motion bearings.
We will always try to minimize the environmental burden throughout the entire product lifecycle from production, use and disposal.
Therefore, kind understanding and cooperation of our customers and partners on this matter would be much appreciated.

◆ Efforts of Environmental Education
It is inevitable for any business activities to impact the environment to a certain extent. With that fact taken into account, environmental
education is provided to our employees mainly by the eco-management department in our factories on a continuous basis, aiming toraise their environmental awareness and provide the relevant knowledge.
There are four types of education systems depending on the purpose: "New employee education" provided to new recruits right after
their entering the company, "General education" conducted under different themes each month, "Basic education" related to businessactivities, and "Specialized education" leading to individual expertise. We systematically conduct those educations while improving thecontents.
These environmental educations lead to cultivating human resources who will follow the company culture of "Love nature, Love
people, and Love work".

8◆ CSR Activities● Voluntary Cleanup Activity
At the Nagaoka and Mitsuke Factories, we conduct "Voluntary Cleanup Activity", which is lead by our employee friendship circles.
Our employees and their families pick up litter and cut grass to clean the area around the factory with daily gratitude.
Unfortunately, the spring project in fiscal 2018 was canceled due to poor weather conditions, but in the autumn event, many children
participated and worked hard. This activity has also improved individual awareness of environmental beautification.

▲Participants from Nagaoka Factory▲Cutting grass landscapearound the Mitsuke factory▲Participants from Mitsuke Factory● Illumination
At the Nagaoka Factory, employees perform everything from design to decoration and lighting Christmas illuminations in every
Christmas.
In 2018, in addition to the annually exhibited large tree, tunnel and mascot character of heart rate sensor (our product), an event withSanjaku-dama fireworks famous in Nagaoka was newly established. During the lighting period, our showroom was opened to the
public with tea and sweets served so that people could enjoy the illumination from the warm room.
In 2018, the illumination lighting ceremony was done by employees and children of Union no Mori - Nanyo Nursery School, and theevent was filled with smiles.
This illumination event, which began in 1995 for the pleasure of our employees, was for the 24rd time in 2018, and now we havereceived warm letters and words from the general public.
About 35,000 pieces of LEDs are used for decoration, with the environmental friendliness taken into account.

▲Participants of the illumination
lighting ceremony▲Illumination

9◆ CSR Activities● Waku-waku taiken juku (Experience course for elementary school students by a company in Mitsuke city)
In cooperation with Mitsuke City, the Mitsuke Factory held a "Waku-waku taiken juku " for elementary school children during
summer vacation. Mitsuke City encourages activities for sound development of children and fostering mutual cooperation andconsideration for others through friendship beyond borders of schools, grades and classes, so the Mitsuke Factory also supports those
activities.
The children enjoyed the tour of the end mill manufacturing process and through the experience of filing our original coating film witha metal file (while struggling with the hardness of the coating film), and also making their original keyholders. Every year, ouremployees are inspired by children's curiosity at the Waku-waku taiken juku.
UNION TOOL CO. is pleased to continue to introduce our technology to children.

▲Experience of comparing coating hardness▲Exhibition of completed keyholders● Ikuyo Nakamichi Piano Recital
As part of our “MECENAT” program (corporate philanthropy) to support the promotion ofartistic/cultural activities, we regularly hold a piano recital by inviting Ms. Ikuyo Nakamichi,
whom we officially sponsor. Since 2002, we have organized “UNION TOOL Classic Program”
every year in Nagaoka-shi (Niigata prefecture), where we have our main factory.
In 2018, we delivered fascinating music, mainly composed by Chopin.
Our company regularly organizes and sponsors the Union Tool Classic Program with our wish
to offer good music to many local people as possible who kindly support us.
Ikuyo Nakamichi official website http://www.ikuyo-nakamichi.com/
Nagaoka Lyric Hall website: http://www.nagaoka-caf.or.jp/▲Poster of Nagaoka Recital10◆ CSR Activities● Academic support activities
Public interest incorporated foundation:

UNION TOOL Scholarship Foundation
A scholarship foundation was established in 2002 in Niigata prefecture where our main factory is located, targeting the students
enrolled in science and engineering colleges and universities in the prefecture. The scholarships are provided to the excellent students
and are difficult to continue their studies due to financial problems. The aim is to cultivate talented people who will be able tocontribute to the society, and our company cooperates in the operation of the foundation.
Also, we are running “Science and Technology Research Grant System” mainly for laboratories of universities of science andtechnology in Niigata Prefecture to support advanced technology research activities and contribute to the industrial development.
* We conduct this activity through UNION TOOL Scholarship Foundation.

◆ Future Efforts
With regard to the objectives and targets for FY2019, we will further promote energy saving in each factory based on the mid andlong-term goal, which is a 5% reduction of electricity (energy) consumption rate from the FY2014 results within five years.
With regard to recycling, we will continue to check progress on the maintenance and management items and respond to any change
appropriately as the entire system is gradually established.
For resource saving, we will continue to develop longer-life and higher-performance cutting tools not only to meet the customers’
quality requirements, but also to contribute to environmental protection.
FT2019 Efforts
Item

Actions

FY2019 Targets

Energy Saving

Improve 5% of per-product energy consumption (*1) by
FY2019 from that of FY2014.

Cut by improvement 1% of energy consumption
rate from that of FY 2018.

Promote recycling of drill cases.

Investigation and management of drill casecollection volume

Promote recycling of endmill cases.

Investigation and management of end-mill casecollection volume

Recycling

Development of three types of new long-life tools
Resource Saving

Develop longer service life tools.

Development of two types of new coating
technology for cutting tools*1: “Per-product energy consumption (kL/1,000 piece)”= “Crude oil equivalent energy usage (kL)” / “Number of cutting tools produced (1,000 pieces)”11◆ FY2018 Environmental Accounting Results
 Scope: Nagaoka Factory and Mitsuke Factory of UNION TOOL CO.
 Accounting period: FY2018 (Jan. 2018 to Dec. 2018)□Environment Protection Cost (Unit: million yen)
[2] Individual costs in total cost[1] Individual costs in investment amountTotal
investment
12.5 million
yen

Total
investment
69.5 million
yen* The amount of investment is fully depreciated within the investment year because it is difficult to calculate the period in which theinvestment effect becomes apparent. (Also, the purchase costs of some components used in our originally developed manufacturing
equipment are not included in the above.)□Economic Effect of Environment Prevention Activities (Unit: million yen)
Item

AmountMajor activities and effects

Profit120.3

Sales profits of assets through recycling

Cost saving

14.5

Reduction of case purchase costthrough recycling of drill cases

Total

134.9

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[Head Office]6-17-1 Minami-Ohi, Shinagawa-ku, Tokyo 140-0013, JAPANTEL 81-3-5493-1001
FAX 81-3-5493-1002
For any questions about this report, contact the following.
[Nagaoka Factory]
2706-6 Aza-tokawa, Settaya-machi, Nagaoka-shi, Niigata Prefecture 940-1104, JAPANTEL 81-258-22-2620
FAX 81-258-22-0045
General Affairs Dept. Attn: Yoneyama
E-Mail yoneyamao@uniontool.co.jp
Issue Date: June 2019
Next Issue: June 2020
* This report is mainly based on the data collected in FY2018 (Jan. 2018 to Dec. 2018).
* Also, some data indicate combined values of Nagaoka and Mitsuke factories.
In addition, for the updating purpose, this report may contain information collected after December 2018.

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