CONTENTS

VISIONOFTOKUYAMA

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Message from the President

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The Tokuyama Group’
s CSR

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The Tokuyama Group's Business Introduction

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Feature 1 Chemicals Business

			

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to Support a Century of Service to Society

MissionCentered on the field of chemistry,
the Tokuyama Group will continue tocreate value that enhances people’s lives

by Technology and Human Resources

Feature 2			Harnessing the Potential of Chemistry

Another Century of Progress Driven

Life & Amenity Business

Integrating Development, Manufacturing,Marketing, and Quality Assurance to Accelerate
Expansion of APIs into New Fields

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Responsible Care

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Environment / Safety			

Accident Prevention and Occupational Health

Since its founding in 1918, the Tokuyama Group has overcome many obstacles on

20		

Tokuyama’s Environmental Management

its quest to deliver products and services that truly benefit people’s lives. From the26 		

Working with Employees

27		Community Service Activities

production of soda ash in Japan to cement and diverse chemicals, Tokuyama makes
the most its technology and experience to serve a wide range of sectors including

Aspirations

electronics, ICT, lifestyle, healthcare, environment, and energy. The TokuyamaGroup is embarking on another 100 years in business and will continue to fulfill its
mission; "Centered on the field of chemistry, the Tokuyama Group will continue
to create value that enahances people’s lives." Guided by the Tokuyama Vision,
the Group is determined to create new value that drives sustainable growth as acorporate group valued by society.

Shift from a focus on quantity to quality〈FY2025〉

Global leader in advanced materials

and Safety

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Third-Party Review

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Site Reports

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Detailed Data

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Company Outline / Financial Highlights /Global Network

Leader in its traditional businesses in Japan

Editorial Policy

Values● The CSR Report 2017 has been compiled for the purpose ofproviding stakeholders with clearly presented information on the

Tokuyama Group’s CSR initiatives and overall business activities.

The PDF edition, available at the website below, includes Site

Customer satisfaction is
the source of profits

Reports which could not be included in the print edition due tospace limitations.

www.tokuyama.co.jp/eng/csr/report/● Eriko Nashioka of the Institute for Environmental Management
Accounting was invited to offer a third-party opinion on this report.

A higher and broader perspective
Personnel who consistently surpass
their predecessors
Integrity, perseverance, anda sense of fun● The CSR Report 2017 has been produced based on theEnvironmental Reporting Guidelines (Fiscal 2007 edition)
published by the Ministry of the Environment of Japan.

［Scope of the Report］ Period covered: Performance data is from fiscal
2016 (April 1, 2016 to March 31, 2017); certain activities carried out infiscal 2017 are also included.
Companies covered: Tokuyama Corporation; environmentrelated data is
for the Company’s Tokuyama Factory and Kashima Factory; some performance data includes 10 main manufacturing subsidiaries in the TokuyamaGroup.
Areas covered: Activities reported on were mainly carried out in Japan,
however, some activities include group subsidiaries outside Japan.
Date of publication: August 31, 20172

On the cover
Illustration of the view from the top of Mt. Kongo in Yamaguchi
Prefecture, overlooking Shunan City and the Tokuyama
Factory. The illustration symbolizes the symbiosis between
Tokuyama and the local community, and the abundant natural
beauty that Tokuyama is committed to conserving.

TOKUYAMA CSR Report 2017

Message from the President

will comprehensively refine our strengths in pu-

and occasions, including the emergency drills on plant

rification technologies to rapidly meet the needs

operations we conduct jointly with other companiesof our customers. In the healthcare sector, we arein the Shunan industrial complex.

refining our technologies by integrating development, manufacturing, marketing, and quality

Additionally, we are comprehensively reviewing our

assurance processes—aiming to live up to the con-capital investment, maintenance, and repair activi-

fidence our customers have in us throughout theties, while actively deploying technologies such aslengthy process from development, to approval, toInternet of things (IoT) and artificial intelligence (AI),market release.

aiming to establish a competitive lead in Japan.

In our traditional businesses, we are projecting

A Century in Business, and the Next 100
Years

growth in Asian markets. To stay competitive andsecure growth, we are determined to keep comprehensively streamlining for cost competitiveness.

ployees, and thanks to our business partners, custom-

Tokuyama has shifted to a system with an audit andchallenges, our employees are ready with renewedsupervisory committee in order to strengthen gover-confidence and pride to move forward and start thenance by further clarifying the distinction between

next 100-year chapter of our history.

supervision. This change will accelerate business execution and facilitate in-depth discussion of business

Hiroshi Yokota
President

possible through the efforts of past and present emers, and the communities in which we do business.
While the last few years have brought their share ofDelivering Noticeable Transformation

policy and other matters by the Board of Directors. It

The next 100 years will bring significant changes

will also strengthen supervisory functions to ensure

driven by new technologies such as AI. The

proper business execution.

Tokuyama Group will need to keep proving its val-

Corporate Social Responsibility andResponsible Careue to society amid these changes.
I constantly remind our employees to question

Fiscal 2016 in Review

structure of the Tokuyama Group, rebuild ourbusiness strategies, strengthen Group management,

Customer satisfaction remains at the heart of every-

conventional may not necessarily be so at otherFiscal 2016 was the first year of our latest medi-

and improve our financial position. Yet there is stillthing we do. We will use this commitment to drive

companies. By questioning conventional ideas andum-term management plan. We exceeded our tar-much that we have to do.

our initiatives to fulfill our corporate social respon-

precedent, we will surely bring about change—both

sibilities, positively contributing to communities andin our corporate culture and in our mindset.

gets by recording 10% or higher operating margins
in each of our business divisions, while exceeding
our projections for restoring equity capital. We re-Gearing Up for Further Growth in Fiscal
2017

conventional ideas, since what we may think ispracticing environmentally responsible management.
We will keep questioning the value that we create,
The Tokuyama Group will continue to embrace andand ask ourselves who we are supplying value toTokuyama Factory by making changes to increase

Fiscal 2017 is the year the Tokuyama Group willpractice Responsible Care, responding to higher

and what satisfaction they derive from it. Instead ofcompetitiveness. The biggest factors driving higher

complete the sale of Tokuyama Malaysia Sdn. Bhd.

social expectations for environmental conservation

satisfying only ourselves, we will check with customers

profits were lower prices for raw materials and fuels

and gear up toward realizing further growth.

and rigorous compliance with chemical safety regu-

to reexamine our own work. Each of us will continue

lations around the world.

to practice these principles in order to transform thealized more than ¥2 billion in cost reductions at theincluding coal and naphtha.

Tokuyama Group in ways that our customers will clear-

We are focusing on strengthening our business in4mark of 100 years in business, an achievement madeStrengthening Corporate Governanceby Adopting an Audit and Supervisory
Committee Governance Systemand the functions of management execution andCreating Value That Benefits People’s Lives
through Chemistry

In 2018, the Tokuyama Group will reach the land-This represents a good start as we tackle the main

the information and communication technologies

To further secure safety, we are leveraging technology

ly see. This, in turn, will enable us to fulfill our ongoinggoals outlined in our medium-term management(ICT) and healthcare sectors. In order to keep up

transfers to younger employees in a variety of ways.

mission to create value that enhances people’s livesplan: to change the organizational culture andwith the latest technologies in the ICT sector, we

To this end, we will make use of various initiatives

through chemistry, for the next century and beyond.

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TOKUYAMA CSR Report 2017

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The Tokuyama Group’s CSR

Pursuing Corporate Social

Responsibility by Practicing

Socially Responsive Management

Basic Philosophy of Tokuyama’s CSR-Oriented Management

Corporate Governance Structure

Shareholders’ Meeting

Tokuyama approaches its CSR activities in accordance with a basic philosophy ofcontinuously working with society to build a sustainable future and practicing corporate
conduct that is evaluated highly by its various stakeholders, namely, shareholders,customers, employees, trading partners, communities and society as a whole.
Tokuyama has created this symbol for CSR promotion. Depicting a
sunflower, the symbol is intended to convey the Company’s active,
healthy and honest stance toward CSR. Under this symbol, theTokuyama Group will not only pursue compliance and efficiency inits business operations, but will also work to develop into a vibrant,sound corporate entity that is socially and environmentally beneficial
and is trusted by all stakeholders.

Appoint/dismiss

Human Resources Committee

Decide/supervise

Audit and Supervisory
Committee
Audit

AssistHelpline Committee
President
Departments Responsible
for Internal Auditing

making and clarifying the responsibilities for business

Auditing Dept.

it has amassed to create and keep providing new

execution, while endeavoring to practice suitable

RC Management Dept.

to social progress.

engage in constructive dialogue with shareholders.

Tokuyama’s Approach to CSR

Strategy Committee

information disclosure, achieve transparency, andCSR Promotion Council
Risk Management and Compliance Committee

Seven Committees

Internal audit

Instruct/support/request

Business Divisions, Back-Office Divisions, Research Laboratories, Factories and Group Companies≫ Corporate Governance Framework
Board of Directors

Helpline

Audit

Business Operations

same time, Tokuyama is encouraging faster decision

value in order to bring joy to people and contribute

Collaborate

Whistle-blowing
SystemAudit and Supervisory
Committee OfficeTokuyama practices corporate social responsibility

in management, leveraging the chemical technology

Appoint/dismiss

Accounting Auditors

Audit andSupervise

Executive Committee

specialized areas, separately from the Risk Manage-

CSR Promotion Council

ment and Compliance Committee. The committees

Chaired by the president, the membership of theoperate under the CSR Promotion Council, oversee-

holders in accordance with its mandate to practice

Tokuyama’s Board of Directors deliberates and makes

CSR Promotion Council is composed of all executive

ing the following areas: financial reporting, fair tradecorporate social responsibility (CSR). Under Japan’sdecisions on important matters concerning the exe-

officers working within Japan. The Council sets CSR-

and competition, international trade, information

Corporate Governance Code, companies are directedcution of the Company’s business while supervising

related policies and goals, and deliberates on import-

security, environment, safety, and product safety andto“achieve sustainable growth and increase corporate

business operations. The Company adopted an exec-

ant matters concerning internal control systems, which

quality assurance.

value over the mid- to long-term.”Tokuyama believes

utive officer system in April 2011 and appointed fourconstitute the basis for CSR activities.

that achieving these aims will help to ensure its social

external directors for the purpose of strengthening the

responsibilities are met. It also implements internal

supervisory function of the Board of Directors.

Tokuyama works to build positive relations with stake-controls to anchor its CSR initiatives, focusing on risk
management and compliance.

Audit and Supervisory Committee

Risk Management and Compliance Committee

Helpline Committee
The Helpline Committee was set up as a whistleblow-

Operating under the CSR Promotion Council, the Risk

ing channel to enable internal reporting of legallyManagement and Compliance Committee is chaired byquestionable actions and behavior.

As a chemical manufacturer, Tokuyama gives

The Audit and Supervisory Committee discusses, re-the director responsible for the Corporate Social Re-

utmost priority to exercising Responsible Care throughports on, and makes resolutions on important auditing

sponsibility Division. The committee takes the initiative

the consistent operation and enhancement of manage-

and supervisory matters. Directors who sit on thein promoting risk management and compliance, which

Tokuyama has established the Auditing Department

ment systems for safety, the environment, and quality.

committee attend meetings of the Board of Directors

are both core elements of internal control systems.

and the Responsible Care Management Department andTo achieve sustainable growth while earning pub-and other important internal meetings, supervising the

lic trust and being the consistent choice of customers,
the Tokuyama Group ensures that all employees andofficers understand and adhere to the Group Code ofbusiness execution by executive officers.

Human Resources Committee

Conduct and Five Conscience Clauses. Group com-Comprised of representative directors and external

panies also formulate their own action guidelines todirectors, the Human Resources Committee holds dis-guide their relations with various stakeholders.

cussions on such matters as remuneration for directors

Corporate GovernanceTokuyama earns the trust and cooperation of stake-and executive officers and the selection of candidates
for director and executive officer positions.

Executive Committee and Strategy Committee

holders by creating and continuously providing new

The Executive Committee, comprised of executive

value, which in turn helps to ensure sustainableofficers selected by the president, meets twice a month

growth and increase corporate value over the mid-

to discuss and finalize key strategies adopted by the

to long-term. Tokuyama has made it a management

Board of Directors. The Strategy Committee discuss-priority to constantly enhance corporate governance.

es important matters such as the pros and cons ofIn keeping with the Corporate Governance Code,pursuing certain businesses and the manner in which

Tokuyama respects the rights and equality of stake-they should be executed, to assist the president inholders and is strengthening the monitoring functions

determining the direction of business objectives.

and independence of the Board of Directors. At the6

Appoint/dismiss

ReportBoard of Directors

Departments Responsible for Internal Auditingtasked them with responsibility for internal auditing.

Seven Committees
Tokuyama operates committees focused on risk
management and compliance in seven critical and

Making Sure Our Business Contributes
to Sustainable Development

Takeshi Nakahara

Director, Managing Executive Officer,
General Manager, Corporate Social Responsibility Division

At Tokuyama we are implementing our“Neware also upgrading the level of our process safety,

Foundation”corporate vision by developing ourdisaster prevention, and safety initiatives by incor-

global business with a commitment to corporate

porating new technologies such as the Internet ofsocial responsibility.

things (IoT).

Our mission is to continue creating value thatIn the area of Responsible Care, we have ex-enhances people’s lives through chemistry. At the

panded our environmental management systemsame time, we aim to build win-win relationships

with reference to the Sustainable Developmentwith all stakeholders by enhancing our compliance,

Goals (SDGs) adopted at the United Nations Sus-

risk management, and internal control systems andtainable Development Summit in 2015. We aspire

improving management efficiency.

to build a more sustainable world by further re-

Safety is our highest priority. Top management
frequently underscores this commitment, and theteams on the production floor use utmost care. We

ducing energy intensity and expanding resource
recycling in our cement business.
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TOKUYAMA CSR Report 2017

The Tokuyama Group’s Business Introduction

特有技術で社会に貢献

Contributing to Society with Unique Technologies

Harnessing
theまの課題を解決しPotential of Chemistry to
化学のチカ
ラでお客さ
Meet Customer Needs and Create a Safer,
安全で快適な社会をつくりますMore Comfortable Societythat are indispensable to daily life. The process of caus-

plants form a recycling-oriented manufacturing facility

tic soda manufacturing yields chlorine as a co-productthat relies on its technical prowess to achieve zeroand hydrogen as a by-product, and these play aemissions in terms of both energy and materials.

supportive role in industry as the raw materials for

The most important key to this achievement is thechloride, polycrystalline silicon, and urethane, and, with

Tokuyama Factory’s in-house power generation equip-

further processing, as chlorinated substances and otherment, which produces 550,000 kWh of electric power.

derivatives. Hydrogen is also in the spotlight lately as asource of energy for a more sustainable society.

Reducing Environmental Impact
Tokuyama has been developing its own technologies

and products for nearly a century, providing custom-ers with materials that trigger business innovation

while working to reduce environmental impact ands health. The
helping to maintain and improve people’Group also leverages its unique technologies andoriginal products to reduce environmental impact,

Solving Problems for Customers andSociety
Outstanding original technologies and a unique ability

Taking the Customer’s Point of View

Ensuring safety and reducing environmental impact

to think and act from the customer’s point of vieware among the many responsibilities that a chemical

constitute two of Tokuyama’s special strengths. Mov-

Tokuyama’s mission is to play a useful role in its cus-manufacturer is expected to fulfill. Ever since its

ing forward, the Group intends to take full advantage

tomers’businesses and contribute to the development

founding, Tokuyama has actively sought to recycleof these strengths in the key sectors of ICT devices,of society by supplying soda ash, a primary industrial

waste. The Tokuyama Factory is composed of threehealthcare, and environmental

product that is indispensable to the development of

separate plants. The Tokuyama Plant manufactures

Group will keep contributing to society, striving to re-Japanese industry.

inorganic chemicals. The Higashi Plant manufactures

main essential to society and the choice of customers.

improve lives, and contribute to society.

One of Tokuyama’s mainstay products, caustic

organic chemicals and polycrystalline silicon. The

soda, is an important raw material for many products

Nanyo Plant manufactures cement. Together, thesetechnologies. The

Unique technologies   in cutting-edge fields
High purification

Sintering

Reduction nitridization

ICT

Supporting innovation

By enabling higher performanceand efficiency in consumer
electronic and energy products,
Tokuyama helps to make society more convenient and prosperous.

Sol-GelPowder control

Healthcare

Contributing tohealth and longevity

Crystallization, deposition

Electrode, membrane

Tokuyama provides products
for pleasant and healthy living. Especially notable are bulk
pharmaceuticals for genericdrugs, and plastic lens materials
produced with its unique organic synthesis technology.

Photopolymerization

Molecular design

Environment

Creating a low-carbon,
recycling-oriented
society

Organic synthesis, direct
hydration

Tokuyama helps to build amore sustainable society by recycling waste plastics, sludge,
and other refuse, and by reusing co-products generated bymanufacturing processes.

Diagnostic reagents,
clinical analyzers,
laboratory information
systems, laboratory
automation systems

Boron nitride

Heat-dissipation materials

Aluminum nitride substrate（Shapal®）8

Polycrystalline siliconHigh-purity chemicals
for electronics industry

Power semiconductors
Aluminum nitride
Boron nitride

Dental materials
Composite resin

Radiation detector
for tip medical care
LiCAF

Photochromic
compounds

Microporous film
（The back sheet film of
paper diapers）

Bulk pharmaceuticals
for generic drugs

Plastic window sashes

Recycling sewage sludge as biomass energy

Liquid hydrogen (hydrogen car)

Recycling of waste gypsum board

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TOKUYAMA CSR Report 2017

Feature 1

Chemicals Business
Providing Essential Chemicals for Japanese Industry

Another Century of Progress
Driven by Technology and Human
Resourcesthat co-produces soda ash and calcium chloride. Withto aggregate the marketing of soda ash and calcium

the switch, the Company conducted a comprehensive

chloride and enhance customer support.

reassessment of its manufacturing facilities and process-The soda ash and granular calcium chloride

es, which boosted manufacturing efficiency and made it

manufacturing operations are currently running at

possible to make high-quality food additive grades withfull capacity to meet Tokuyama’s responsibilities as afew impurities.

supplier and the sole manufacturer of these products

Tokuyama is also the sole manufacturer in Japanin Japan. The Company is expanding its productionof granular calcium chloride, which is used as an

capacity for granular calcium chloride by 25%, with

anti-freeze agent in winter, having an estimated 70%

this new capacity to be ready in the fall of 2017, toshare of the Japanese market. This product has con-further stabilize the supply.

tributed significantly to company revenues from thesoda ash business.

Tokuyama will implement further streamlining andExpertise Backed by a Century ofExperience

Soda Ash (Sodium Carbonate) and Calcium Chloride

To withstand increased competition from manufacturers in countries such as the U.S. and China,
maximize the use of its facilities to increase costcompetitiveness. At the same time, the Company willfurther build on its strengths in quality control to en-

Human resources play a major role in securing thehance global competitiveness.

continuity of the soda ash business. All employees
who are involved in the soda ash business are proud
Milestones in Tokuyama’s Soda Ash Business

1918

Nihon Soda Kogyo Co., Ltd. established

1927

First shipment of soda ash

1938

Started manufacturing cement by wet processusing soda ash by-products

194 0Started manufacturing calcium chloride

194 8

Restarted manufacturing of soda ash

roads and a moisture-absorption agent. Soda ash and

195 0Started manufacturing of ammonium chloride
fertilizer

and used often in everyday life. As the only manu-

198 0

Switched to co-production of calcium chloride

2 014

Tokuyama & Central Soda Inc. established

Tokuyama was originally established aroundthe soda ash business, which remains the Compa-

ny’s traditional business. Soda ash is used in a vari-

ety of applications including glass, soap, detergents,

food and beverage additives, and water treatment

auxiliaries, while the production co-product, calcium

chloride, is broadly used as an anti-freeze agent for

calcium chloride are essential to Japanese industry

facturer of soda ash in Japan, Tokuyama is working

to work for this founding business and motivated toCompany’s century-old business in this field, requires
advanced operating and maintenance skills by employees who draw on a century of experience. Theseskills are refined at the production site and via small
group activities, whereby employees examine a wide
range of issues to make improvements, which are thenshared with other groups. These small groups present
their activities to one another, which promotes theprofessional development of employees.

Fulfilling Supplier Responsibilities andEnhancing Global Competitivenessglobal competitiveness for the future.

Tokuyama was founded in 1918 with the establish-

10

demand, as other Japanese companies have with-

In 2014, Tokuyama established Tokuyama & Central

drawn from the business.

Soda Inc. in a joint venture with Central Glass Co., Ltd.,

Changing Manufacturing Processes and
Co-Products to Secure Business Continuity

ment of Nihon Soda Kogyo Co., Ltd. This company

Since Tokuyama imports all of the salt that it uses towas created with the important mission of manufac-

make soda ash, the Company takes ongoing measures toturing soda ash in Japan using an ammonia-soda pro-adopt manufacturing process that keep costs down andcess, to remediate the reliance at the time on imported

works to market co-products to increase revenues. In thesoda ash.

1950s, the Company switched to a process that co-pro-Tokuyama continues to manufacture soda ash,duces soda ash and ammonium chloride, in order tonow as the sole manufacturer in Japan, with an

make the most of the raw material salt. Strong demand

estimated 40% share of the Japanese market. The

for ammonium chloride as a fertilizer drove revenues

Company has weathered numerous hurdles including

and contributed to increased post-war feed production.

trade liberalization, increased imports of natural soda

Demand for ammonium chloride fertilizer later de-ash from the United States, an oil crisis, and reduced

creased, prompting the company to switch to a process

Glass (including for automotive, architectural,and LCD touchscreen applications); bottle glass;fiberglass (insulation); soap and detergents; foodadditives; organic synthesis for glutamic acid, aminoacids, and soy sauce; water treatment agents; otherees. Tokuyama’s soda ash plant, which supports theto enhance the security of its supply while raising

100 Years of Tradition Manufacturing
Soda Ash

Applications for Soda Ash

ensure its continuity for future generations of employ-

Applications for Calcium Chloride
Anti-freeze agent and snow-melting agent for roads,
moisture-absorption agents, food and beverage
additives, other

Voice ) ) )Meeting Our Responsibilities as the Sole
Manufacturer in Japan

Hiroki Tanaka（right）

General Manager, Chemicals Manufacturing Department 1

Tokuyama has launched the sodium silicate

soda ash manufactured in Japan. We invite ourcullet and precipitated silica businesses as acustomers to tour the production site in person

way to increase its internal consumption of soda

and share our initiatives for process safety, disasterash. Adding these products has been an asset

mitigation, and occupational health and safety, toin terms of expanding our business range andease any supply concerns. We will continue to pre-contributing revenues.

pare against all possible risks, so that we can keep

The Tokuyama Factory supplies many cus-

Chemicals Business Division

meeting our responsibilities as a supplier.

tomers, due in part to being the sole supplier of
Yoshimi Tamaki (left)
Manager, Manufacturing Section 1

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TOKUYAMA CSR Report 2017

Working Closely with Customers
to Meet Their Needs

with overseas suppliers to manufacture the Company ’sLife & Amenity BusinessTokuyama works closely with customers to advance

Factory in 2016 and is strategically positioning the

Securing Growth in Fine Specialty Chemicals

API development, with sales and development working

plant to cooperate with suppliers in countries such as

in concert. Business development is pursued in unison

China and India, to address commoditization of APIs.

between various departments, such as involving qual-

The Kashima Factory will leverage control by trans-

ity assurance personnel in the process development

ferring its expertise in areas such as quality assurance

phase to ensure that the quality sought by customers

and manufacturing process technology to suppliers in

is realized.

and outside of Japan, while working closely with the

Feature 2

Integrating Development,
Manufacturing, Marketing, andQuality Assurance to Accelerate
Expansion of APIs into New Fields

2006. The Company’s business in thiswith the Company bringing to market eightAPIs for drugs treating conditions such as ulcers,

manufacturing patents for brand-name drugs do notdescribe the manufacturing processes. Furthermore,
all phases of the manufacturing process, from quality
control and manufacturing to regulatory compliance,
must meet or exceed the level required for brandname drugs.

differentiation in the generic API business.

years through 2015, a number that far exceeds that of

Tokuyama filed more than 100 patents in the ten
the typical pharmaceutical company. Drug prices in

Ten Years of Experience
Manufacturing APIs
Tokuyama began contract manufacturing APIs for

Tokuyama is presently developing new APIs that

number of companies in and outside Japan competing.

are projected for market by 2020, as the Company

To stay competitive, Tokuyama will raise the perfor-

expands its API lineup to cover a broader range ofmance of all related departments and increase the lev-treatments. Additionally, the Company is actively

el of interdepartmental collaboration (see illustration).

looking into pharmaceutical-related materials that willIn the development of the antihypertensive

also benefit its engineering development. Tokuyama

API with a fine particle size for ease of dissolving

the brand-name drug, and set a target value for the
manufacturing particle size, developing new crystaltarget. Candesartan is now used by many pharma-

ceutical manufacturers as a highly dissolvable oral

Japan are set by the government, making it difficult formance and quality. Despite this challenge, Tokuyama
is leveraging its strengths in process technology toenhance cost competitiveness.

earned a strong reputation from drug manufacturers,
enabling Tokuyama to capture a strong presence inthe generic API market, which accounts for more than
60% of the pharmaceuticals market.

Advanced R&D Capabilities
Needed for Generic APIs
Generic API manufacturers must develop their own
manufacturing processes from the ground up, as expiring

evaluation of APIs

Analytical
Science Dept.

process technologies
crystal/particle size

Generic APIs become progressively more commoditized

Tokuyama is working to strengthen its cooperation

cular and diabetes treatment drugs. These APIs have

● Physicochemical

Development ● Development of technologies to control

in order to leverage its expertise in organic synthesis

and currently offers eight APIs centering on cardiovas-

Business Development Integrating Development,
Manufacturing, Quality Assurance, and Marketing

Leveraging the Control Functionsof the Kashima Factory

manufacturers to adjust prices to reflect drug perfor-

imported APIs. To cope with this commoditization,

ket in 2006 in the form of a glaucoma treatment drug,

bring amenity and healthy living to people.

● Development of highly cost-competitive

over time as the market begins to demand low-cost

The Company brought its first generic API to mar-comprehensive strengths in the healthcare field toagent.

pany expanded into the generic API market in 2003,

government in favor of generic drugs.

is committed to leveraging its own technologies andand absorption. To meet these demands, Tokuyama

studied and analyzed the particle state of the API incustomers in 1996 at the Kashima Factory. The Com-and take advantage of a policy shift by the Japanesesuppliers to generate steady revenues.

lization and pulverizing technologies to achieve thediabetes, allergies, and hypertension. The Company
is working to further raise added value and secure

The generic API market is expected to become
increasingly competitive over time, due to the large

Tokuyama had to satisfy the need for a highly stable

active pharmaceutical ingredientssegment has been growing since then,

The Company expanded its multi-plant Kashima

agent, Candesartan, which was released in 2014,

Tokuyama brought its first(APIs) to the generic market inAPIs while maintaining quality.

● Secure stable supply● Secure multiple

Qualityassurance

Manufacturing

manufacturing facilities

Generic Name

Therapeutic Category

2006

Nipradilol

Antiglaucoma

Voglibose

Antidiabetic

Polaprezinc

Antiulcerative2010

Pioglitazonehydrochloride

Antidiabetic

2012

Mosapride citrate
hydrate2009Marketingoutside of Japan● Enhanced ability to meetcustomer needs

Voice ) ) )Leveraging Our Development Expertise andCustomer Support to Realize Further Growth

Fumiaki Iwasaki

Executive Officer, Research and Development Division

General Manager, Tsukuba Research Laboratories

General Manager, Medical Associated Department

The strength of Tokuyama lies in the way business

These ongoing efforts have earned the confidence

Prokinetic

development is integrated across development, man-of customers in our quality assurance. We will lever-ufacturing, marketing, and quality assurance. One ex-age this reputation for quality to advance production
in countries such as China and India. Our customers

2013

Valsartan

Antihypertensive

ample is the training in Good Manufacturing Practices(GMP) that the Quality Assurance Department has

tell us that they trust Tokuyama’s quality, regardless2014

Candesartan cilexetil

Antihypertensive

conducted for over ten years. This training is imple-of where a product is made. We will develop manu-

mented with the joint involvement of manufacturing,

facturing processes that further raise our quality andengineering, and quality assurance teams from thecost competitiveness, as we make further inroads in

Kashima Factory, to learn about pharmaceuticals

the overall pharmaceuticals market.

2015● Management of suppliers● Quality assurance

Generic APIs Brought to Market by Tokuyama
Fiscal Year
Released● Regulatory aﬀairs support

Olanzapine

Antipsychotic

manufacturing practices and regulatory changes.
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Tokuyama has been actively implementing Responsible

Protecting the Environment, Ensuring

Safety, and Promoting Good Health for

People and Local Communities

tions that pursue concrete initiatives under its CSR
Promotion Council, which is chaired by the company

ponent of Tokuyama’s corporate social responsi-

Decision-Making Function
Environmental Measures
Committee

Product Assessment
Subcommittee(Labeling Assessment Subcommittee)

Safety Measures Committee

Safety and Environmental
Assessment Subcommittee

Product Safety and Quality
Assurance Committeepresident. Specifically, it set up the Environmental

bility. Tokuyama has put in place company-wide

Measures Committee, Safety Measures Committee,

infrastructure for promoting Responsible Care, andand Product Safety and Quality Assurance Committee

is incorporating this initiative in each of its manage-as decision-making bodies, and the Product Assess-ment systems as it strives to continuously improve its

ment Subcommittee and several other subcommittees

environmental, safety, and quality systems.

as assessment organizations.
distribution, usage, final consumption and disposal.

What Is Responsible Care?

CSR Promotion Council
Assessment Function

Framework for Promoting
Responsible Care

Tokuyama has established a number of organiza-

Responsible Care activities are an essential com-

Responsible Care Promotion Structure

Care activities since the committee’s founding in 1995.

Responsible Care also encourages the public disclosureof these activities along with dialogue and communication with members of society. The Responsible Care

Analytical Science Dept.
(Support organization)

Responsible Care Management
Dept. (Secretariat)

This laboratory carries out environmental measurements, working environment measurements and ultra-trace
analysis of substances under regulationand chemical pollutants.

This department promotes RC activities throughout the Group, covering
the areas of the environment, safety
and quality.

Responsible Care Initiatives

Medium-term Responsible Care
Activities:“Plan”Phase

Responsible Care is a voluntary management initiative

initiative originated in Canada in 1985, and is currently

Tokuyama continually improves its Responsible Carethrough which companies that manufacture and handle

used in 52 countries around the world. In Japan, ainitiatives by implementing plan-do-check-act (PDCA)

Working on the basis of its medium-term plan for Re-

chemical substances undertake measures for protecting

Responsible Care Committee has been set up under thecycles focusing on environmental conservation, pro-sponsible Care activities, Tokuyama sets policies andthe environment and ensuring the safety and healthJapan Chemical Industry Association (JCIA). As of April

cess safety, disaster prevention, occupational healthgoals for each fiscal year. Individual departments thenof society. It covers all operations, from the develop-

1, 2017, the committee had 109 corporate members.

and safety, and chemicals and product safety.

create and carry out specific plans based on thesement of chemical substances to their manufacturing,

As one of the original members of the organization,

policies and goals. The results of initiatives are evaluated at the end of each fiscal year and incorporated inplans for the following fiscal year.

Basic Philosophy of Responsible Care
Basic Policy

3. Promote energy conservation and curb global warming

As a member of the Japan Responsible Care Committee,
Tokuyama Corporation carries out Responsible Care activities
that protect the environment and preserve safety and healththroughout the entire chemical substance life cycle, from devel-• Achieve top-class unit energy consumption in the industry foreach productEvaluation and improvement

Fiscal year targets and plan

4. Promote resource recycling and work toward reduction
and the proper management of waste materials

Publication of performancedata and social dialogue• Promote the material recycling and thermal recycling of resources• Work toward achieving a paperless office

Responsible Care
Community Dialogue

Formulate ﬁscal year planand targets for Responsible
Care initiatives

5. Promote process safety, disaster prevention andoccupational health and safety

Preparation of CSR
Reportopment and manufacturing to distribution, use, final consumption and disposal.
Our social mission is to aggressively tackle and systematicallysolve environmental issues in particular, which, in turn, will leadto sustainable corporate and social development. Based on
this recognition, we promote Environmental Management, amanagement policy that emphasizes the environment, in all ofour business activities, including development, manufacturing
and sales.

• Aim for zero accidents and disasters based on the principles ofself-responsibility and the self-management of safety• Achieve a comfortable working environment and protect
people’s safety and health

Action Objectives

6. Ensure strict product safety standards

1. Promote environmental protection• Offer environmentally friendly products that can be used withsafety• Provide proper information on how to use products and what
precautions to take

• Implement an ISO 14001-based Environmental Management
System and reduce environmental impact

2. Observe the laws and regulations• Observe international rules, domestic laws and regulations
and industrial standards• Thoroughly implement export management rules on materials
under control

14

7. Deepen the relationship of trust with society• Publicly disclose information on the Company’s activities
concerning environmental protection, process safety anddisaster prevention, occupational health and safety, andchemical product safety• Actively engage in dialogue with the local communities

A

Environmental
Conservation

Initiatives for next ﬁscal year
plan

Assessment andaudit system

P

LAN

CT

Chemicals andProduct Safety

Process Safety,
Disaster Prevention

Implement activities
through operation ofmanagement systems
Address priority issues

External and internal audits
Safety and environmental
assessments
Product assessments

C

Occupational Healthand Safety

HECK

D

O

15

TOKUYAMA CSR Report 2017

Responsible Care

Operation of Management Systems:“Do”Phase
The Company’s Tokuyama Factory and Kashima
Factory have acquired ISO 14001 certification. Eachmental considerations, and that they are completed
according to the design specifications. Furthermore,

Improvement and Assessment
through Audits:“Act”Phase≫ Internal Audits

the preliminary operation is assessed to ensure that

In accordance with its occupational health and safety

the performance is up to specification.

management system as well as ISO 9001 and ISO

Audits are used to verify that business sites are

14001 standards, Tokuyama periodically conducts

suitably carrying out activities in line with corporate≫ Product and Labelling Assessmentsinternal audits covering the progress of its action plans

policies. Audit results are reported to the relevantwith Tokuyama’s company-wide environmental policy,

Tokuyama confirms product safety at each stage ofand the status of system operations. If problems aredepartments as well as the president, and continuous

and undertakes related activities intended to alleviate

operations, from the initial research and development

uncovered, they are reported, relevant personnel are

improvements are sought.

environmental impact, conserve energy, reduce waste,

stage through to market release. The assessments

notified, and remedial measures are taken.

and recycle resources. Tokuyama’s head office, branch

confirm compliance with legal requirements andstakeholders through Responsible Care Community

offices and research laboratories also set policies andevaluate the level of various risks, including the safety

Dialogue sessions and published in the CSR Report.

goals, and pursue such activities as energy conserva-of chemical substances used in the product, their po-

tion, resource recycling, and waste reduction.

tential impact on the environment, and their effect on

factory sets an environmental policy and goals in line

Tokuyama has acquired ISO 9001 certification

for its quality management system, which has been
operating since fiscal 2002 as a company-widesystem encompassing sales, development and allother operations.

In accordance with the New Occupational Healthand Safety Guidelines issued by JCIA, Tokuyama
operates occupational health and safety management
systems at each of its workplaces. In fiscal 2005, thehuman health. The Company also checks all labelingin documents such as product catalogs, safe handling
manuals, and safety data sheets* in order to ensure that

Priority Tasks and Results of Responsible Care Activities in Fiscal 2016

＊A safety data sheet is a document for recording information related to the risks
and toxicity of chemical substances. It is prepared to facilitate the safe handlingof such substances, and includes the names of the substances, safety measures,and procedures for responding to emergencies.

≫ Safety and Environmental Audits
Tokuyama conducts safety and environmental audits

system by incorporating a broader range of safety-re-on an annual basis in order to verify the applicability

lated activities.

of its environmental conservation management andeffort to reduce environmental- and safety-related risks.

≫ Safety and Environmental Assessments

Achieved (A) Not achieved (B)Category

Priority tasks

Results

Management

Review of Responsible Care management
by top managers● Held meetings on promoting CSR

A● Conducted safety, environment, and quality auditsA● Comply with legal requirements andother regulations● Strictly complied with legal requirements

A● No environmental accidents

A● Reduced or maintained levels of emissions of substancesof concern

A● Reduced per-unit energy consumptionA● Maintained effective utilization of waste rate of 94%

A● Maintained landfill to total waste rate of 0.1%

A● Continue making improvements toenvironmental management systems● Continued to improve environmental management
systems through operation

A● Ensure no accidents or disasters occur● Achieved another year free of facility accidents

A● Employees: 1 accident requiring work absence,
2 accidents not requiring work absence

B

Contractors: 2 accidents requiring work absence

B● Enhance safety management systems● Enhanced safety management systems by assessing
process risksA● Promote risk management and hazard
management● Promoted risk and hazard management

A● Promote physical and mental health● Promoted Smart Life Activity Program

B● Ensure the safety of products● Conducted inspections of products and labelingA● Revised safety data sheetsA● Actively participated in the JIPS*A● Addressed regulations on chemicals in countries outside
Japan

A

● Participate in community events● Participated in community volunteer activities

A● Establish a good reputation in society● Held dialogues with the community on Responsible CareA

● Held factory tours

A● Conducted safety, environment, and quality auditsA● Shared information related to Responsible Care via an
online newsletter, etc.

A

Environmental
Conservation● Achieve zero environmental accidents● Achieve targets for reducing
environmental impact

accident and disaster-prevention measures.

Tokuyama has set up several assessment systems in an

Degree of target achievement:

instructions and warnings are complete and accurate.

Tokuyama Factory expanded its safety management

Assessment and Audit System:“Check”Phase

The results for the fiscal year are shared with

Auditing teams inspect each workplace, including
the Logistics Group, Health Management Center, andall organizations subject to inspection under Japan’sHigh Pressure Gas Safety Act.

≫ Audits by Third Parties
Tokuyama undergoes ISO 9001 and ISO 14001 exam-

Safety and Accident
Prevention
Occupational Health and
Safetyinations. In April 2017, the examination for renewal of

Tokuyama conducts safety and environmental assess-

ISO 9001 certification identified three issues, and thements before newly installing, expanding or modifying

Company is dealing with each accordingly. Likewise,

any of its facilities. Assessments are conducted at theexaminations for renewal of ISO 14001 certifications

three phases of basic planning, design, and preliminary

were carried out in October 2016. Ten issues wereoperation. The assessments study whether facilities

identified, and the factories are now working on reme-

have been designed to incorporate safety and environ-dial measures.

Chemical Product Safety

Build Relations of Trustwith Local Communities
and Society
Promote Responsible
Care at Group Companies● Expand the scope of Responsible Care
activities

Degree oftargetachievement

Conducted various kinds of drills＊ JIPS: The Japan Initiative of Product Stewardship is an initiative spearheaded by the Japan Chemical Industry Association with the aim of facilitating the independent
management of chemicals. Its members collect and analyze information on the hazardous properties of chemical substances and products in order to carry out risk
assessments incorporating data on their usage and applications, comparing levels of exposure and safety. The risk assessment results provide a basis for proper chemical
substance management aimed at ensuring workers’occupational safety, protecting consumers, and reducing environmental impact. The outcomes of such management
activities are then disclosed to the general public and suppliers across the supply chain.
Safety and environmental audit at Kashima Factory

16

Floor patrol

17

TOKUYAMA CSR Report 2017

up A
at c cio i dna el H ntea Prelth vean nti
d on
Sa a
fe nd
ty

Environment / Safety

Tokuyama’s Commitment to
Occupational Health and Safety

Forging Strong Ties with Local

O

cc

Communities while Building a Positive,≫ Improving Safety Management Systems

Safe, Accident-Free Workplace

All of Tokuyama’s worksites conduct risk assessments
covering operations, equipment, and processes, andcontinuously implement and make improvements in

Recognizing that safety is the basis for its business

BCP drill at the Tokyo Head Officeactivities, Tokuyama practices safety as the first step

2014, the Company improved safety management

to maintaining good relations with the communities
in which it operates. Based on this approach, theCompany carries out stringent accident prevention

measures and occupational health and safety initia-

tives in its efforts to create a positive and safe work
environment that is free of accidents.

Tokuyama’s Commitment to
Safety and Accident Prevention≫ Comprehensive Safety and Accident-

Prevention Measures

Tokuyama has adopted three principles for ensuringsafety: fulfill the obligations of a good corporate citizen,
give safety priority over all business activities, andensure that everyone is aware of their responsibilities
and acts accordingly. Based on these basic safety principles, the Company carries out exhaustive measuresfor ensuring safety in manufacturing activities and at its≫ Disaster Preparedness Drills
Tokuyama has also carried out various training activities.
These include disaster drills for pipe leaks and fires
caused by an earthquake, emergency drills at individualcompany divisions, joint drills involving affiliated companies and contractors, and workplace safety competitions.
In 2016, to prepare against the possibility of a Tokyo inland earthquake, the Tokyo Head Office was designatedas the disaster response headquarters and the Tokuyama
Factory as the crisis response headquarters in the event

To raise health awareness among employees,

identified issues in its new risk assessments, and is now

Tokuyama has its employees take part in a monthly

addressing these issues. In light of the serious accidents

Smart Life Program activity, which involves the fillingin recent years involving explosions and fires at chemicalout of a health improvement self-evaluation. In addi-

plants, Tokuyama has begun revising its risk assessmenttion, Tokuyama provides its employees with one-on-

methods to take into consideration non-routine tasks (in-one health counseling that incorporates the results ofcluding unusual situations), since most of these accidents

medical checkups.

happened during irregular operations, such as facility

As for mental health, the Company carries out

maintenance work or emergency shutdowns and startups.

Web-based diagnostic surveys of work-related stressTokuyama and its contractors carry out the following≫ Maintaining Occupational Safety andEliminating Accidents

Tokuyama experienced no accidents in fiscal 2016. In
terms of occupational accidents, the Tokuyama Factory
recorded one accident that required a work absence andno accidents. Contractors at the Tokuyama Factoryin order to prevent problems and accidents.

Environment Control Class I* certification.

its reporting on near-miss accidents and incorporated

ing its business continuity plan (BCP).

ties, practice the 5S principles, and use a point-and-callalso working to improve its safety management system

in proper working order, and has maintained its Working

result, is fully managed. The Company also strengthened≫ Helping Contractors Promote Health and Safety

two accidents without work absences, while the Kashimamethod for affirming onsite conditions. The Company issystems to ensure that every phase, from planning toan earthquake. The Company conducted drills for initiat-

facilities. Specifically, worksites conduct safety patrol

operations and kiken yochi hazard prediction activi-

Factory and Tsukuba Research Laboratory recorded

initiatives to promote health and safety: (1) joint safety
on situations on the production floor; (2) safety patrols
to ensure safe construction work and to improve unsafe
situations; (3) supervisory skills training, and hazard● Implement safety initiatives involving all employees, under theleadership of upper management.
●Comply with laws, regulations, and internal rules.
● Foster and enhance a culture of safety, for the safety of people,
facilities, and the public.
● Create comfortable workplaces to ensure the mental andphysical health of the people who work there.
Fiscal 2017 Tokuyama Safety Management Objectives and Key
Action Items

At worksites where harmful substances are handled,

Policy Objectives■ No compliance violations ■ No accidents or disasters■ Reduce the rate of work absences

18

Earthquake and natural disastercountermeasures, Others3（1％）
Occupational healthand safety measures71（32％）

Improve safety management
Conduct production floor patrols by upper management,
raise hazard awareness, improve change management,
comprehensively review the framework for safety educationand training
Identify sources of risks and resolve
Conduct risk assessments for irregular operations, respondto risk assessments for chemical substances and implement
improvements

1.0

Note: Figures do not add
precisely to total due
to rounding.

Total amount in
FY2016

Accident
prevention
measures145（67％）

218(Millions of yen)Comparison of Accident Severity Rates *2Comparison of Accident Frequency Rates *2.0

Promote physical and mental healthOccupational Health and Safety

Tokuyama ensures that local exhaust ventilation is kept

1

Promote facilities management
Enhance management of older facilities, expand efforts to
identify facilities risks

Expenditures for Accident Prevention andmentation of kiken yochi hazard prediction activities.

absences. The Company will continue implementing

Make progress in risk management and hazard management
Prepare for response to a potential major earthquake＊ Control Class I: At almost all worksites (95% or more), the concentration ofharmful airborne substances does not exceed the control concentration.

and (4) checking of operating procedures, and imple-≫ Promoting Sound Physical and Mental Health

Key Action Items

who appear to need further attention.

simulation training to improve risk handling techniques;

recorded two occupational accidents that required worksafety initiatives in an effort to eliminate all accidents.

for all employees, and provides support to employees

meetings for safety education and information sharing

Fiscal 2017 Company-Wide Safety Management Policy
Tokuyama operates a safety management policy and actively
implements safety initiatives as a good corporate citizen.

General disaster preparedness drill at the beginning of year

order to completely eliminate potential risks. In fiscal

2.144

0.18
0.15
0.12

1.5

0.09
0.06

0.5

0.03

0.0

13

All industries in Japan
Tokuyama Corporation

14

15

Chemical industry in Japan

16
(FY)

＊ 1 As an indicator of the frequency of industrial accidents, the accident frequency
rate is calculated as the number of workers forced to miss work due to anindustrial accident per one million cumulative working hours.

0.00

13
All industries in Japan

Tokuyama Corporation

14

15

Chemical industry in Japan

16
(FY)

＊ 2 As an indicator of the magnitude of industrial accidents that have occurred,
the accident severity rate is calculated as the number of lost work days due toindustrial accidents per 1,000 cumulative working hours.

19

TOKUYAMA CSR Report 2017

Environment / Safety

Implementing Environmental

Performance in Fiscal 2016

Management to Reduce

Category

Items
Atmosphere≫ Flow of Materials in Business Activities

Environmental
Impact Reduction

Tokuyama works to accurately determine the input
and output of materials for production, and regularly
For Tokuyama, the pursuit of proactive initiatives toprotect the earth’s environment is an important partof its corporate social responsibilities. Accordingly,

the Company practices environmental management

sets new targets aimed at reducing environmental
impact. In fiscal 2016, Tokuyama achieved its perunit energy consumption, waste recycling and zero
emissions targets.

that takes into account the natural environment in all

Regarding performance data for fiscal 2015 andWater Quality

PRTR

Nitrogen

- 8%

＊

+ 57%

＊

- 7%

＊

PRTR

- 19%

＊

- 6.4%○

3% reduction of per-unit energy
consumption by fiscal 2020
compared to fiscal 2005

current low-impact situation.

Flow of Materials in Business Activities

Effective utilization rate

Maintain at 94%

94.2%

○

Maintain at 92%

Maintain at 99.9%

99.9%

○

Maintain at 99.9%＊ Regarding performance data, Tokuyama has set a separate numerical management target for each department to maintain the current low-impact situation. The table above
does not include specific numerical targets on atmosphere, water quality and PRTR for Tokuyama as a whole. Instead, the year-on-year difference from FY2015 results is shown.

Environmental Preservation Costs

Tokuyama has been carrying out environmental
accounting since fiscal 2000 in order to accurately
costs associated with its environmental conservation
activities, thereby providing a sound basis for making
environmental investments.

Carbon dioxide (CO2)

1,830

6,300

Production

INPUT

Raw materials

6,020

Of Tokuyama’s total environmental investment in

Major Activities

AmountInvested

Costs(¥ million)(¥ million)

Pollution
Control

Installation of electrostatic precipitators anddrainage conduits, replacement of tanks

1,032

3,804

GlobalEnvironmental Renewal of an air conditioner
Conservation

173

360

Resource
Recycling

140

1,107

0

0

45

241

15

0

Upgrade of desalination equipment, PCB
waste treatment expenditures, etc.

Upstream andDownstream Costs
Management
Activity Costs

Installation of environmental analysis
equipment

Research andDevelopment Costs
Social Activity Costs

Greenification and beautification measures
Production of CSR report073

by 12% intended for environment protection, and 10%
for resource recycling. Meanwhile, in environmental

Costs forEnvironmental
DamageImposition, management of a former mining
site

0.4

101

Waste

costs in fiscal 2016, 67% of the total was generated by

Total

1,405

5,688

21

by global environmental conservation. Major capital

Economic Benefits in Fiscal 2016

investment projects in fiscal 2016 included upgrading

Category

an electrostatic precipitator and the internal mecha-

Gains on Reduction in Energy Consumption

OUTPUTTOKUYAMA≫ Environmental Costs

Category

fiscal 2016, 73% was for pollution control, followed(incinerated and landﬁll)(47,300,000 gigajoules)

0.8% reduction of per-unit energy
consumption compared to fiscal 2005

“Zero emissions” rate

determine and analyze the investment amounts andWaste and by-products

Goal not achieved

Maintain the current low-impact situation

Recycling

Environmental Accounting

Note: All amounts are for Tokuyama Corporation on a
non-consolidated basis in fiscal 2016

Goal achieved,

FY2017 Target

Zero emissions

agement target for each department to maintain the

2,050

＊

Phosphorus

Energy consumption on a
Global Environment
Energy Conservation
per-unit basis
Conservation

Waste Reduction

Maintain the current low impact
situation

Rating±0

Soot

beyond, Tokuyama has set a separate numerical man-

Fuel

FY2016 Result

Costs in Business Areas

Environmental Impact

business activities.

Symbols:

FY2016 Target

COD

To
k

uy
am
a'

s

En
vi

ro

nm
en
ta

lM

an
ag

em
en
t

Results of Environmental Protection Initiatives by the
Tokuyama Factory in Fiscal 2016pollution control, 19% by resource recycling, and 6%

10.6(1,000 metric tons)

Economic Benefit(¥ million)-

163

Gains on Sale of Valuable Waste

89

186

≫ Economic Benefits of Environmental Management

Gains on Reduction in Waste Disposal Costs
through Waste Recycling

259

672

Economic benefits are determined by calculating only

Gains on Reduction in Raw Material and Fuel Costs
through Waste Recycling

260

469

-

1,490

nisms of an organic plant reactor.

Substances withenvironmental impact

Material Benefit

monetary gains on the reduction of energy consumption, the sale of valuable waste, the reduction in waste

Total

disposal costs through waste recycling, and the reduc-Industrial water

Process eﬄuent

44,10024,200industries covered by the Action Plan. It is via this Ac-

cycling. In fiscal 2016, the economic benefits remainedtion Plan that Tokuyama is working to achieve its 2020

flat year on year, at approximately ¥1.5 billion.

emissions reduction target. Tokuyama is making steadyprogress in conserving energy throughout its business

Coolant water and other types of eﬄuent

Measures to Help Combat Global
Warming

Products

6,100

20

tion in raw material and fuel costs through waste re-(Unit: 1,000 metric tons)

activities, and supporting efforts by employees to saveenergy at home.

≫ Promoting Energy Conservation

Tokuyama participates in Keidanren’s Voluntary Action

Tokuyama consumes a vast amount of energy toPlan on the Environment, as a member of one of the

manufacture its core products such as caustic soda,
21

TOKUYAMA CSR Report 2017

Environment / Safety

cement, and polycrystalline silicon. It also emits

increased in accordance with higher operating rates forincreased due to malfunctioning of wastewater treat-carbon dioxide (CO2), one of the greenhouse gases,

emitting facilities. Emissions of soot remained level year

ment equipment.

primarily in its burning of fossil fuels and decarboxyla-

on year.

The Company is working to reduce CO2 emissions≫ Emissions of Pollutant Release andTransfer Register Substancesby implementing energy conservation measures, in-In fiscal 2016, Tokuyama and its group companies

cluding upgrading to more energy-efficient equipment.

handled twenty-four substances that require mandatory

The Tokuyama Factory accounts for more than 99%

registration under Japan’s Pollutant Release and Trans-of the Company’s total energy consumption, and it has

fer Register (PRTR)* system. The Company reduced

a target of reducing its per-unit energy consumption

emissions of PRTR substances through stable incinera-by 3.0% by fiscal 2020, from 2005 levels. The planttion and improvements at facilities, while also bringing

launched a project to study ways to reduce per-unit

down such emissions at group companies by paring theenergy consumption in fiscal 2016. That same year,

number of facilities that handled PRTR substances.

the plant’s per-unit energy consumption was 6.4%
below the 2005 level, continuing the declining trend
from last year due in part to the high heating value ofcoal used in production.

＊ The PRTR system collects and publishes data on the sources of designatedharmful chemical substances and the amounts of these substances discharged
in the environment or transported from production sites as part of waste
matter.

Unit Energy Consumption Index* (Tokuyama Factory)
Per-unit energy consumption
（％）

100

100

90

2005

substances that are among the 12 substances subject

application of temperature management for heating

to voluntary controls in Japan’s Air Pollution Control

and cooling, lighting upgrades, and reduced computer

Law. Accordingly, the Company has formulated a vol-30,000energy consumption.

untary action plan and carries out ongoing measures

20,000for reducing the emissions of these substances.

10,000Emissions≫ Measures to Reduce Dioxinshydrogen is supplied to the Shunan Swimming Club

Tokuyama’s waste oil incinerators and certain equip-

facility, which is owned and operated by the Tokuyama

ment in its vinyl chloride monomer manufacturing fa-

Group, to operate pure hydrogen fuel cells that provide

cilities are subject to regulations under Japan’s Specialelectricity and thermal energy to run the facility.

Measures Law for Countermeasures against Dioxins.

13

trations of dioxins in exhaust gases and wastewater
emitted from these facilities to ensure that amounts
are below regulatory limits.

≫ Amounts of Industrial Effluent andWastewater

50

14

93.6

15

0

16

40 41

35 39

12

13

98

2,600

40,000monitoring industrial effluent and purifying wastewith regulatory standards and limits set by the local
government, as well as the Company’s own standards,

In order to reduce emissions of sulfur oxides (SOx),

which are even stricter. The factory also employs

nitrogen oxides (NOx), and soot into the atmosphere,

activated sludge treatment facilities for reducing the

Tokuyama equips its boilers, cement kilns, and otherdischarge of nitrogen and phosphorous and meeting

facilities that generate these substances with emission

chemical oxygen demand (COD)* regulations for over-control systems, including flue gas desulfurizers, denitra-

all water quality.

tion equipment, low-NOx burners, and high-performance

In fiscal 2016, COD and phosphorus emissions

dust collectors. In fiscal 2016, emissions of SOx and NOx

remained level year-on-year. Nitrogen emissions

2,800

37,600

2,800

2,600

44,40045,3002,400

8047,300

47

60

90

12

13

Tokuyama Corporation

14

15

16（FY）

Group companies■ Attributable to fuel■ Attributable to raw materials■ Attributable to waste ■ Group companies

6,000

20

1,930
3,290

3,000

0

200
230

190
210

200
230

190
230

180
250

1,570

1,680

1,630

1,590

1,720

4,020

4,020

4,040

4,120

4,300

12

SOx emissions

12,00010,000

9,000

275

6,000
3,000
0

8,400
190

2,890

90

95

13

14

15

16（FY）

1,450
12

NOx emissions

Soot emissions

9,200

8,850

8,900

135

138

174

750
13

550
14

680
15

（Metric tons）

9,470

750
16 （FY）

3

12

3

9

10

2

2

13

22
8

14
5 2
2
5

11

14

15

1

2

15
5
6

2

16

（FY）

2

（Millions of metric tons）（Metric tons）■ Industrial eﬄuent

180

123
24.9

20

134

COD level

200

126

116

150

24.2

24.2

110
22.1

24.1

100

14.3
50

10

400
320
240

138

23

Industrial Effluent Amounts and COD Levels
40

SOx, NOx and Soot Emissions
15,000103090（Metric tons）

11

28

0

9,000

27

7

20

CO2 Emissions（1,000 metric tons/year）

16 （FY）

21

40

0

15

■ 1,2-Dichloroethane ■ Chloroethylene (vinyl chloride)103

43,70014

30 34■ Dichloromethane (methylene chloride) ■ Chloroform

100

44,20037 40

36

Hazardous Air Pollutant Emissions
120

60,00050,0002720（FY）(Thousands of gigajoules/year)

The Tokuyama Factory follows a stringent system forwater using treatment equipment in order to comply

22

100

Energy Consumption

Accordingly, the Company measures the concen-≫ Amounts of Atmospheric Emissions

97.0（Metric tons）

initiatives to conserve energy at offices, through strict

National and local government officials attend opening ceremony of factory's model
system for local hydrogen production/use (Shunan City, Yamaguchi Prefecture).

■ Tokuyama Corporation ■ Group companies（Metric tons）＊ The unit energy consumption index is calculated using a method recommended
by the Japan Chemical Industry Association (JCIA).

Tokuyama generates chloroethylene and three otheruse excess hydrogen, the first of its kind in Japan. The

97.9

94.6

Tokuyama implements year-round, company-wide

integrated system to collect, compress, transport, and237（Target）≫ Amounts of Hazardous Air Pollutant

In March 2017, the Tokuyama Factory deployed an

99.4

95

≫ Addressing Global Warming throughInitiatives at Offices

PRTR Substance Emissions

COD level

cement production.

refers to the amount of oxygen required to oxidize organic compounds in water.

Industrial eﬄuenttion of limestone, which is used as a raw material for＊ Chemical oxygen demand is an indicator used to measure water quality, and

160
80
0

0

12

90

13

14

15

16 （FY）

Nitrogen and Phosphorus Emissions
FY 2012FY 2013

FY 20140(Metric tons)

FY 2015

FY 2016

Nitrogen

94

70

89

92

145

Phosphorus

2.7

2.4

2.6

2.2

2.1

23

TOKUYAMA CSR Report 2017

Environment / Safety
Yamaguchi
Eco-tech
Corporation

Local governments
Incinerated ash

The Nanyo Plant’s Cement
Production Recycling System

Raw material crusher
Preheater
Raw material powder silo

Raw material dryer

Local governments

Outside corporations
Natural resources

Outside corporations
Waste plastics

Sewage sludge

SidingIn-house

Limestone
Silica stone

Outside corporations

Slag

Clinker silo

Morizukuri
Corporation

Coal ash
Outside corporations

Waste plastics

Preincineration

In-house

Outside corporations

Coal ashFinishing crusher

Organic sludge

SludgeRotary kiln

Waste liquid

Construction waste soil

In-house

In-house

Organic sludge

Natural resources

Incombustible lime

クーラー

Coal crusher

Cement silo

Coal

SludgeOutside corporations

Construction waste soil

Outside corporations
GypsumWaste carbon

In-house
GypsumMain raw materials

Main energy source

Alternative raw materials

Alternative energy sources

Cement shipment

Clinker shipment

Clinker: A compound mass made by firing raw materials at high temperatures. This is mixed with gypsum and crushed to make cement.

Recycling and Reducing Waste

diligent efforts to recycle waste as raw material for cement, Tokuyama achieved an effective utilization rateof 94%, on par with the previous fiscal year. Moreover,Tokuyama makes exhaustive efforts to reduce andrecycle the waste it generates. As a result, the Com-pany maintained a 94% effective utilization rate of

the amount generated, the Company again achieved
its“zero emissions”target of 99.9% in fiscal 2015.

(Metric tons)

50,000this waste both in and outside the Company, mainly
by re-using waste matter as raw materials and fuel for

99.9
82.4
76.9

40,00030,000Waste sent to landfills

0.4

5.7%
Waste recycled
externally

94.7

99.9
94.7

99.9
93.9

99.9
94.3

99.9
94.2

10,000materials, pallets and other wood waste were crushed

0

（％）

100
80
60

36,260

40

90

330

280

320

400

380

12

13

14

15

16 (FY)

Landﬁll amount (metric tons)

Eﬀective utilization rate

20
0

“Zero emissions” rate

Total waste generated

0.1%

377.0

Waste recycled
in-house(re-used as raw materials)
Total waste
generated

332.1

88.8%
In-house

377

Effective utilization
rate

Incinerated in-house
Recycled in-house

332“Zero emissions”
rate
99.9％

20,000cement at the Tokuyama Factory. In addition, packing
and then used as fuel for power plants. Through its
24

Landﬁll amountTokuyama generated a total of 377,000 metric tonsof waste in fiscal 2016. It actively worked to recycle

21.5

6.1%

Eﬀective utilization rate / “zero emissions” rate

≫ Waste Management

Incinerated waste

23.1

Amount of Waste Sent to Landfills
and Rate of Effective Utilization

Flow of Industrial Waste Treatment(Unit: 1,000 metric tons)

owing to progress made in reusing waste and reducing

waste and again hit its “zero emissions” target of

99.9% in fiscal 2016.

Breakdown of Industrial Waste Treatment
in Fiscal 2016

20.7

Landﬁlled onsite0

Outsidethe Company

94.2％(Unit: 1,000 metric tons)

Effective utilization rate (%) =Amount of waste recycled (in-house and externally)
×100
Total waste generated“Zero emissions” rate (%) =1-

Amount of landfilled waste (onsite and offsite)
Total waste generated

×100

Waste disposed oﬀsite

24.2

Recycled externally

23.1

Incinerated externally

0.8

Landﬁlled oﬀsite

0.4

25

TOKUYAMA CSR Report 2017

W

or

ki

ng

w
ith

Em
pl

oy
ee
s

Environment / Safety

Embracing Diversity to

Build Workplaces with Equal

Opportunities

Tokuyama is also taking steps to remove cultural

departments. The Company also conducts seminars al-

obstacles to women holding certain job positions, formost every month to provide employees who have only

instance, by surveying general managers in sales andworked in one department with exposure to the broad

manufacturing operations and asking them to identify

range of careers available within the Company, whileissues that could impede equal opportunities for women.

also working with departments to expand women’s

The surveys confirmed that managers were receptive to

involvement in more job positions.

having more women work in sales and manufacturing

Tokuyama embraces diversity and strives to enable
employees to realize their full potential. This allows
the Company to adapt to the constantly changing
business landscape and meet the needs of customers.

*Diversity & Inclusion Management (DIM):

Working with Colleagues to Build a Workplace with
Equal Opportunities for Men and Women

Tokuyama seeks to create an environment where all employees canfully utilize their talents and achieve growth, which in turn will makethe organization as a whole more vital and creative.

At the core of Tokuyama’s commitment to diversity is
supporting equal opportunities for women to make thewomen also received letters stating the expectations ofmost of their potential, which, in turn, will enhancetheir direct supervisors, in an effort to involve these man-corporate value.

agers more closely in women’s career development.

employees reviewed their careers and each formulated
a career vision and goals for the next three years. These

Since April 2016
• Strengthen recruitment of women among

Manager, Human Resources Group

Naoki Fujiwara

In our DIM initiatives in fiscal 2017,
we set several goals: to build a
corporate culture that embraces
diversity; to encourage process
innovation in our departments; andto establish a platform to enhance
corporate value. Meanwhile, we always strive to support employees’
efforts to realize their full potential.
A key aspect of our programs is
supporting equal opportunities for women, so that every employee—woman or man—can thrive and contribute.

26

Subsequently, I requested a transfer to a new workplace.

university graduates

Programparticipants:
6 employees

I had become more knowledgeable about our products and• Increase awareness of workforce reentry
program*② Ensure that women account by 2020 for noless than 6% of all assistant managers.

5.6% (April 2017)

Since April 2016
• Implement career planning education

Implemented
in Tokyo andTokuyama in
October and November 2016 (for47 employees)(raise awareness)
Since April 2017
• Encourage participation in skills
development training③ Ensure that women account by 2020 for noless than 2% of all managers.

Building a Corporate Culture That Helps
Employees Reach Their Full Potential

customers, which enabled me to leverage my skills.

(3-year moving average)

future managers• Study the adoption of a mentor program④ Ensure that women by 2020 hold at least
10 sales positions and 20 positions in manufacturing departments.

manufacturing to identify issues thatand address the issues

turing history using our product management system andproduction floor.

identify causes.

Today, my main duty is implementing quality assurance

As part of the Chemicals Quality Assurance Department,

for chemical products, including technical studies to meet

I will keep taking on new challenges and work to help build acustomer requests. When a customer asks us to investigate

company where both women and men can make the most of

the traceability of a product, I am able to use the systems

their potential.

Over 30 Years of Employee

Volunteering

Tokuyama employees go beyond corporate-level initiatives to give their own time to community engagement.

Implemented

Some Tokuyama employees formed a volunteer groupin 1983 in order to engage with residents around the

Tokuyama employees pound mochi with residents of the Shirohato Gakuen
facility for persons with disabilities

Company’s workplace. After 33 years, this group isimpede equal opportunities for women,• Communicate information concerningknowledge I gained working in sales to track the manufac-

that I could use my experience to be of benefit on the

1.3% (April 2017)

Since April 2017
• Implement skills development training forSince April 2016
• Interview general managers in sales andmanufacturing processes via my sales work, so I thoughts

for all female employees up to age 35. In these sessions,

Then, as a management track employee, I worked in theitiewomen, the Company offered career planning sessions

same sales department, dealing with the same products andctiv

increase the percentage of managerial positions held by

50% (FY2015)25% (FY2016)
25% (FY2017)A

women to work as operators on the production floor. To

further develop my abilities.

① Ensure that women account for no less than
20% of all persons with at least a university
undergraduate degree who are hired for career-track positions.

ceMoving forward, the Company is looking to hire more

Performancerviate hires. It met the targets in both fiscal 2016 and 2017.

It made sense to become a management track employee toTarget and StrategiesSe

age of women employed among its new university gradu-

and working just as much as management track employees.

ity

The Company has set specific targets for the percent-tration. I was traveling on company business half the month

Tokuyama Corporation Action Plan to Promote
Duration: April 1, 2016–March 31, 2020
Opportunities for Womenunfour specific goals by the end of fiscal 2020.

employee at the Osaka Branch, working in sales adminis-mequal opportunities for women, working to achieving

I started my career at Tokuyama as a non-management trackom

Tokuyama is implementing an action plan to promote

Assistant Manager, Chemicals Quality
Assurance Department

C

Action Plan to Promote
Opportunities for Women

Megumi Nomura

Implemented

equal opportunities for women andimplement initiatives to raise awarenessSince April 2017
• Use management training to change
attitudes among male managers* The workforce reentry program is designed to support women who wish toreenter the workforce and continue their careers.

still working closely with the community.
In 2016, the group donated rice and arranged amochi (rice cake) pounding event for the Shirohato

Gakuen facility for persons with disabilities, where

where they delivered a donation and gave presents to
the residents. The group also performed a theatricalplay and enjoyed various performances and gameswith their families.

they shared rice cake soup with the residents. Em-

The volunteer group will continue working toployees were also involved in a Christmas party at

expand its activities in order to bring even more smiles

the Nozomi no Ie facility for persons with disabilities,

to Tokuyama’s local friends and neighbors.
27

TOKUYAMA CSR Report 2017

Third-Party Review

Site Reports

In the Vision of Tokuyama announced in fiscal

A Review ofTokuyama’s
CSR Report
2017

2016, the Company outlined the following mission
over the next century:“Centered on the field of chemistry, the Tokuyama Group will continue to create

Tokuyama
Factory

Location:

1-1, Mikage-cho, Shunan-shi, Yamaguchi 745-8648, Japan
Number of employees: 1,521
Total site area:
1.91 million ㎡
Main products:	Cement, inorganic chemical products, organic chemical products,
polycrystalline silicon, fumed silica, polyvinyl chloride, and othervalue that enhances people’s lives.”This report does

products

a good job of communicating how the Company has
been realizing this mission.

Eriko Nashioka≫ Creating Value to Address Social Issues

Representative Director, Institute for

It is critical for the Tokuyama Group to define who

Certified Public Accountant and Certified

it is creating value for. In today’s globalized society,

Environmental Management Accounting,Tax Accountant, and part-time lecturer
in environmental accounting andenvironmental auditing for the Faculty ofCommerce, Doshisha University

Still situated at the Company’s first business site, the Tokuyama Factory is the Group’s mainmanufacturing facility, and its products account for about 90% of non-consolidated sales. The factory
operates with the motto,“Go to work healthy and return home happy.”Aiming to achieve 6.0 million

the Company must define the ways in which it can

accident-free hours at the factory and 9 million accident-free hours at its contractors, the factory isaddress the massive issues facing the international

working hard to keep everyone on site happy and safe at work. In fiscal 2017, the factory’s top priorities
are to; (1) Identify and eliminate risks in the handling of hazardous substances and relating to falling

community. Based on the Sustainable Development

accidents; (2) conduct active dialogue on safety in order to remove the root causes of continued risks

Goals (SDGs), which include 17 goals and 169 targets,
the Tokuyama Group should identify specific items to≫ 100 Years in Business, Adding Value to Society

address and communicate the progress it is making toquantify the value it is creating and share the figuresof 100 years in business. The lead feature in this re-with the public, thus fostering dialogue with investors

port describes the soda ash business that has sustained

and other stakeholders.

Company’s pride as the sole manufacturer of soda ash

Tokuyama Factory General Manager

the public. Wherever possible, the Company should

In 2018, the Tokuyama Group will reach a landmark

the Company since its founding, communicating the

Hideki Adachi

on the production floor; (3) recognize changes in facilities and operations to identify and eliminate risks
through hazard prediction on the production floor; and (4) conduct hands-on hazard training for all
employees and comprehensively implement pointing and calling for safety at crosswalks in facilities.

Performance Data

≫ Disseminating Information

Unit

FY2012FY2013

FY20142FY015SOx emissions

Metric tons

1,450

750

550

680

NOx emissions

Metric tons

Soot emissions

Metric tons

Industrial water consumption

Million metric tons

In the Vision of Tokuyama, the Company has ambi-

Effluent discharged

Million metric tonsof expertise. This is followed by another feature on

tiously defined the fields in which it will create value

COD level

Metric tons

the generic API business, where the Company isfor society. However, the report could be clearer about

Total nitrogen discharged

Metric tons

leveraging technologies it has developed over the last

the Company’s strengths and the value it is creating byTotal phosphorous discharged

Metric tons

century to expand into new areas that have a positive

using less technical terms. Explaining the terminology

PRTR-designated substance emissions

Metric tons

Waste generated

Thousand metric tons

impact on society. The Tokuyama Group is generating

and improving the readability would enable readers to

Waste sent to landfills

Metric tonsbalanced sales from its four existing business segments

better understand what the Tokuyama Group is doing.

Energy consumption

Thousand gigajoules

and aims to leverage its strengths in the fields of ICT,

It would also foster a better connection with the public

CO2 emissions (originating from fossil fuel)Thousand metric tons

healthcare, and environment.

and enhance public understanding of the Company.

Complaints

Cases＊In line with revisions to the Act on the
Rational Use of Energy, calorific andother values from 1990 to the present
have been recalculated.

750

8,400

9,200

8,850

8,900

9,500

41.3

42.2

41.7

42.1

44.1

119

132

110

124

190

in Japan with human resources drawing on a century

2FY016

24.8
94

174

135

22.1

23.9

70

89

138

138

24.2

24.2

114

92

145

2.7

2.4

2.6

2.2

381

395

354

389

376

44,10043,70044,20045,10047,100

0

1

0

1

0

39

320

4,020

33

277

4,020

25

313

4,040

2.1

36

383

4,110

29

368

4,290

Emissions and Transfer of Specific PRTR-Designated Substances in Fiscal 2016

Unit: metric tons (mg-TEQ equivalency for dioxins)

Response toThird-Party
Review

Group will continue to create value that enhances

TolueneCresolyears, with the latter positioned for the next century.

Corporate Social Responsibility Division

1-Bromopropane

municate the Company’s value to society.
Regarding our efforts to create value to realize
sustainable growth, we will take seriously the advice toexamine the SDGs and consider specific future actions.
overly technical and difficult to understand, we will

The Tokuyama Group created the CSR Report 2017

strive to make next year’s report even more customer-

to describe its efforts to fulfill its corporate mission:

focused and accessible to stakeholders.

“Centered on the field of chemistry, the Tokuyama

Dichloromethane (methylene chloride)
Water-soluble compounds of zinc

We highlighted these contrasting businesses to com-

Responding to the feedback that the report was

28

Chlorodifluoromethane

former having sustained the Company for the last 100

Director,

157

Chloromethane (methyl chloride)focus on the soda ash and generic API businesses, theManaging Executive Officer

1,2-Dichloroethane
Chloroethylene (vinyl chloride)

people’s lives.” The feature articles in the report

Takeshi Nakahara

Substance nameRegulatory
numberChloroform
Substances are listed in descendingorder of emissions levels; substanceswith no emissions are listed in order ofthe regulatory number

1,2-Epoxypropane (propylene oxide)
1,2-Dichloropropane
Carbon tetrachloride
2,2-Azobisisobutyronitrile

Water refers to public waters
Amount transferred indicates the sumof the quantity transferred to sewage
systems and the quantity subject tointermediate treatment
Total figures have been rounded to thefirst decimal place

Water-soluble copper salt
Hydrazine
Hydrogen fluoride and its water-soluble form
BenzeneBoron compounds
Dioxins
Total (excluding dioxins)

94

104

128

300
86

186
1

384

Amount of emissions
Atmospheric
6.4

5.4

2.4

2.4

2.2

0.0

1.9
0.0

1.1

127

0.9

178

0.4

68

149
16

272

333

374

400

405

243

0.6

0.1

0.0

0.0

0.0

0.0

0.0

0.0

3.0

23.7

Water
0.0

0.0

0.0

0.0

0.0

2.2

0.0

1.2

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

1.4

3.4

Soil
0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Subtotal
6.4

5.4

2.4

2.4

2.2

2.2

1.9
1.2

1.1

Amounttransferred
1.3

0.0

0.0

0.0

8.0

0.0

0.0

0.0

0.0

0.0

0.9

0.0

0.4

217.7

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.6

0.1

0.0

0.0

0.0

0.0

0.0

4.5

27.1

0.0

2.7

0.0

0.0

0.0

0.0

0.0

0.2

0.0

229.9

29

TOKUYAMA CSR Report 2017

Site Reports

Kashima
Factory

Location:

Number of employees:
Total site area:

26 Sunayama, Kamisu-shi, Ibaraki 314-0255, Japan
81

101,000㎡
Main products:	Produced by Tokuyama Corporation

Sun • Tox

Established:Co., Ltd.

Akasaka Enoki-zaka Mori Building, 1-7-1 Akasaka, Minato-ku, Tokyo, Japan
Business activities: 	Manufacture and sale of biaxial-oriented polypropylene films and cast	Bulk pharmaceuticals for stomach and duodenal ulcer treatment drugs,

February 14, 1992
Tokuyama Corporation (80%), Rengo Co., Ltd.(20%)

Shareholder:
Head office:polypropylene films

and diabetes drugs; optical materials (plastic lens monomer, light

modulating materials, and hard coating solutions); raw materials forelectronic materials; metal cleaners

Produced by Tokuyama Dental Corporation	Dental materials (restorative materials, adhesives, relining materials,
impression materials and investment materials)■ Kanto Plant
Sun · Tox’s Kanto Plant manufactures biaxial-oriented polypropylene films and cast polypropylene films,
which are used for food packaging and other applications, totaling about 29,000 metric tons annually.

The Kashima Factory strives to recycle waste matter while placing the utmost importance on the proper

As a Type 1 Designated Energy Management Factory under the Japan’s Act on the Rational Use ofmanagement and handling of chemical substances. As a result of this approach, the factory achieved an

Energy, the Kanto Plant strives to cut down on its overall energy consumption on a per-unit basis.

78% effective utilization rate of waste in fiscal 2016. Waste sent to landfills for final disposal amounted

Sun · Tox upgraded its gas cogeneration facilities with a higher-efficiency system. Moving forward,

to 9 metric tons.“Zero emissions”amounted to 99％ . Looking ahead, the Kashima Factory is examining

the company will further reduce energy consumption and environmental impacts. As it continues tothe feasibility of material and thermal recycling as it works to increase its effective utilization rate for all
types of waste matter.

Yoshiyuki Kitajima
Kashima Factory General Manager

Kazunori Shimada
Plant Manager

Performance Data
Unit
Industrial water consumption

Thousand metric tons

Effluent discharged

Thousand metric tons

COD level

Metric tons

PRTR-designated substance emissions

Metric tons

Waste generated

Metric tons

Waste sent to landfills

Metric tons

Energy consumption*

Thousand gigajoules

CO2 emissions (originating from fossil fuel)*

Metric tons

Complaints

Cases

FY2012FY2013

FY2014FY2015FY2016

76

51

48

43

36

4

3

3

2

2

96

66

1

63

2

2

54

2

Metric tons

2

Energy consumption

Thousand gigajoules

CO2 emissions

Thousand metric tons

9

SOx emissions

Metric tons

NOx emissions

Metric tons

Soot emissions

Metric tons

775

59

36

36

33

37

2,399

2,476

0

2,465

0

0

2,246

0

2,670

0

* In accordance with a revision of Japan’s Act on the Rational Use of Energy, figures based on calorific values and otherfactors have been recalculated retrospectively to 1990.

Chloroform
TolueneDichloromethane
Acetonitrile
1,4-Dioxane
N,N-Dimethylacetamide
N,N-Dimethylformamide
2-Vinylpyridine
Methyl methacrylate

Regulatory Number
127

300

186
13

150

213

232

338

420

Total
Notes: All figures are the numerical sum for Tokuyama
Corporation and Tokuyama Dental Corporation.
Substances are listed in descending order of emissions
levels; substances with no emissions are listed in orderof the regulatory number

Water

Soil

Subtotal

0.8

0.0

0.0

0.8

14.5

0.4

0.0

0.0

0.0

0.0

0.0

0.0

1.7

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

FY2015FY2016

20

15

23

340

360

351

356

356

0.3

0.2

0.3

0.3

0.1

0.03

0.06

0.05

0.04

0.02

7

4

19

10

20

0.6

5

20

0.7

10

21

0.6

21

0.7

0.4

films, which are mainly used for food and beverage packaging, amounting to about 23,000 metric tons

Atmospheric

0.0

FY201415

Sun · Tox’s Tokuyama Plant manufactures environmentally friendly biaxial-oriented polypropylene

AmountTransferred

0.0

FY201326

Unit: metric tons

Amount of Emissions

0.5

Location: 3075-18 Shimasu,
Itako-shi, Ibaraki, Japan
Number of employees: 197
Total site area: 89,800㎡

FY2012■ Tokuyama Plant

Emissions and Transfer of Specific PRTR-Designated Substances in Fiscal
Substance Name

Unit
Waste sent to landfills

735

20

Performance Data
Metric tons

1,020

11

aim to be a community-based factory.

Waste generated

919

7

System (OSHMS), ISO 14001, and ISO 9001, the Kanto Plant is building on its achievements with the

50

930

7

implement three management systems, namely Japan’s Occupational Safety and Health Management

0.5

23.2

0.0

0.5

0.4

0.0

0.0

0.0

0.0

0.0

1.7

annually. As part of its environmental initiatives, the plant is actively working to reduce per-unit energy
consumption and increase recycling rates. With respect to safety, it acquired OSHMS certification in2013 for all of its departments including R&D departments. Under the slogan,“Strictly following safety

2.0

0.0

2.0

procedures, making manufacturing enjoyable, and never compromising quality,”the plant aims to keep
Nobuhiko Nakayama

its facilities operating safely so it can be depended upon by the community, customers and employees.

Plant Manager

5.7

Performance Data

0.5

0.0

Unit

48.4

Water refers to public waters
Amount transferred indicates the sum of the quantity
transferred to sewage systems and the quantity subject tointermediate treatment
Total figures have been rounded to the first decimal place

Waste generated

Metric tons

Waste sent to landfills

Metric tons

Energy consumption

Thousand gigajoules

CO2 emissions

Thousand metric tons

PRTR-designated substance emissions

Metric tons

Complaints

Cases

FY2012FY2013

FY2014FY2015FY2016

67

66

76

74

84

445

463

458

471

463

0.0

0.0

0.0

0.0

0.0

2

26

0

2

27

0

1

27

0

1

27

0

1

28

0

Location: 7-7, Harumi-cho,Shunan-shi, Yamaguchi, Japan
Number of employees: 147
Total site area: 24,100㎡

30

31

TOKUYAMA CSR Report 2017

Site Reports

Detailed Data

Environmental Data for Tokuyama

Sun Arrow Kasei

Established:

February 1, 1999

Co., Ltd.

Head office:

1-2 Harumi-cho, Shunan-shi, Yamaguchi, Japan
Manufacture and sale of polyvinyl chloride compounds

Shareholder:
Business activities:

Input (Unit: 1,000 metric tons)

Tokuyama Corporation (100%)

FY2013

FY2014

Waste and by-products

1,780

1,945

Fuel

2,150

1,760

Raw materials

5,650

6,080

Industrial water
Output (Unit: 1,000 metric tons)
Carbon dioxide■ Tokuyama Plant

Waste (incinerated and landfill)

Sun Arrow Kasei ’s Tokuyama Plant manufactures and sells polyvinyl chloride compounds used for

Substances with environmental impact

pipes, joints, and other items essential for upgrading infrastructure, as well as resin window frames,

Process effluent

which are highly effective for saving energy. The plant practices ISO 14001 environmental management,

FY2012

41,300FY2012

42,200FY2013

FY2015

1,790

Comparison with theprevious fiscal year (%)

FY2016

1,780

1,830

+1.0

1,820

1,810

2,050

+13.3

5,900

5,990

6,020

+0.5

41,700FY2014

42,100FY2015

44,100+4.8
Comparison with theprevious fiscal year (%)

FY2016

5,800

5,930

5,910

6,000

6,300

+5.0

20

21

22

22

21

-4.5

10

10

9.7

9.9

10.6

+7.0

24,90022,10024,00024,20024,2000.0

and ensures safety and prevents accidents by having all employees participate in activities designed toeliminate problems, identify near-miss situations, and practice the 5S principles. Owing to this approach,the plant has maintained an accident- and disaster-free record for 17 years since its establishment. In
Yasuto Yasuzawa
Plant Manager

fiscal 2017, the plant intends to strictly enforce internal controls while carrying out Responsible Care
activities based on a safety-first policy for all operations.

Energy Consumed on a Per-Unit Basis* at the Tokuyama Factory
Unit: %

Performance Data

Per-unit energy consumption
Unit

FY2012FY2013

FY2014FY2015FY2016

Power consumption

Thousand kilowatt hours

2,455

2,562

2,473

2,659

2,490

Waste plastic produced

Metric tons

Waste plastic effectively used

Metric tons

107

124

105

141

135

Waste sent to landfills offsite for disposal

Metric tons

Steam usage

Metric tons

Industrial water consumption

Thousand metric tons

107

125

15

108

7

240

8

240

65

240

65

65

141

6

240

65

Co., Ltd.

100.0

FY201499.4

FY201597.9

FY2016

94.6

Target (FY2020)

93.6

97.0

* The factory has been working since 2014 to reduce per-unit energy consumption in fiscal 2020 by 3.0% compared to the fiscal 2005 level.

0

240

65

Energy Consumption
Unit: 1,000 gigajoules
Tokuyama Corporation
Group companies

Polypropylene

FY2013135

Location: 1-2 Harumi-cho, Shunan-shi, Yamaguchi, Japan
Number of employees: 27 ／ Total site area: 3,280㎡

Tokuyama

Base year (FY2005)

Established:
April 2, 2001
Shareholder:
Tokuyama (50%), Prime Polymer Co., Ltd. (50%)
1-1 Harumi-cho, Shunan-shi, Yamaguchi, Japan
Location:
Business activities: 	Manufacture and sale of polypropylene resin and flexible polypropylene resin

FY2012FY2013

FY2014FY2015FY2016

37,60044,20043,70044,40045,30047,300

—

2,600

2,800

2,800

2,600

2,400

Emissions of CO2
Unit: 1,000 metric tons

■ Tokuyama Plant

Base year (1990)

Base year (1990)

FY2012FY2013

FY2014FY2015FY2016

Originating from fuel

3,290

4,020

4,020

4,040

4,120

4,300

Originating from raw materials

1,930

1,570

1,680

1,630

1,590

1,720

Originating from waste matter

20

210

230

230

230

250

Group companies

—

190

200

200

190

180

FY2013

FY2014Tokuyama Polypropylene’s Tokuyama Plant conducts risk assessments of processes, facilities, andoperations, and takes measures to identify near-miss situations and points of concern, in order toenhance the plant’s safety culture. The result has been a perfect accident- and disaster-free record since
the time it was first established as Tokuyama’s polypropylene film business 41 years ago. The plant isscheduled to obtain recertification in 2017 under the High Pressure Gas Safety Act and the OrdinanceYuichi Taguchi
Plant Manager

Unit: Metric tonsof extending its accident- and disaster-free record, reducing its environmental impact, and eliminating

SOx

1,446

749

554

677

751

+10.9

customer complaints related to quality

NOx

8,400

9,200

8,850

8,900

9,470

+6.4

Soot

190

174

135

138

138

0.0

Unit
Industrial water consumption

Thousand metric tons

Waste generated

Metric tons

Waste sent to landfills

Metric tons

Unit energy consumption index (fiscal 2002=100)%＊ Year with periodic maintenance

Location: 1-1 Harumi-cho, Shunan-shi, Yamaguchi, Japan
Number of employees: 62 ／ Total site area: 70,997㎡

FY2012343

FY2013

FY2014FY2015FY2016

411

308

370

333

15

2.4*

0

1.8*

160

116

88

84

1.9*

89

76

35

71

FY2012FY2015Comparison with theprevious fiscal year (%)

on Safety of Boilers and Pressure Vessels, and is pursuing Responsible Care activities with the goals

Performance Data

32

Emissions of SOx, NOx, and Soot
FY2016

77

73

Emissions of PRTR-Designated Substances
Unit: Metric tons

Base year (1998)

FY2012FY2013

FY2014FY2015FY2016Tokuyama Corporation

237

40

35

27

37

30

Group companies

—

41

39

36

40

34

33

TOKUYAMA CSR Report 2017

Detailed Data

■ Aerial View of the Tokuyama Factory

Net Sales and Operating Income

Emissions of Hazardous Air Pollutants
Unit: Metric tons

Base year (1995)［Consolidated］

Polycrystalline silicon

FY2012FY2013

FY2014FY2015

28

3

2

1.5

1.7

2.3

Chloroform

7

3

2

2.1

1.1

1.7

1,2-Dichloroethane

47

10

10

4.9

10.6

6.4

21

11

9

5

7.7

5.4

Organic chemicals(Billions of yen)

Vinyl chloride

300

East Plant 1,020,000 ㎡

Caustic soda

Cement250

Nanyo Plant: 280,000 ㎡

200Soda ashTokuyama Plant: 610,000 ㎡

Discharge of Industrial Effluent and Levels of COD
Base year (1990)

FY2012FY2013

FY2014FY2015

14.3

24.9

22.1

24.1

24.2

24.2

COD (metric tons)

180

123

134

112

126

116

Discharge of Nitrogen and Phosphorous
FY2012FY2013

FY2014FY2015Company name:

Tokuyama Corporation

Location:

Tokyo Head Office

Comparison with theprevious fiscal year (%)

FY2016

Nitrogen

94

70

89

92

145

+ 57.6

Phosphorous

2.7

2.4

2.6

2.2

2.1

- 4.5

Kashima Factory, Tsukuba Research Laboratory, Osaka Office,Takamatsu Branch, Hiroshima Branch, Fukuoka Branch,
Sendai Branch, Nagoya Branch, Shunan Sales Branch

Landfilled and Recycled Waste
Base year (1990)

FY2012FY2013

FY2014FY2015FY2016

President:

Hiroshi Yokota

Landfilled waste (metric tons)

36,260

330

280

320

400

380

Established:

February 16, 1918

Effective utilization rate (%)

76.9

94.7

94.7

93.9

94.3

94.2

Capital:¥10 billion (as of June 30, 2017)“Zero emissions” rate (%)

82.4

99.9

99.9

99.9

99.9

99.9

Number of
employees:

5,406 (consolidated basis; including 1,141 working overseas);
1,869 (non-consolidated basis) (as of March 31, 2017)(Billions of yen)

40

20.3

19.5

23.1

20
10

6.8
2012

2013

2014

2015

2016 （FY）

0

Fiscal 2016 Sales by Business Segment
Note: Segment sales results include inter-segment sales

Others¥ 52.1 billion

Chemicals（15.5%）

Tokuyama Factory

Other facilities in Japan

299.1

30

100

FRONT PLACE AKIHABARA, 7-5, Sotokanda 1-chome, Chiyoda-ku,
Tokyo 101-8618, Japan Tel: +81-3-5207-2500 Fax: +81-3-5207-2580
1-1, Mikage-cho, Shunan-shi, Yamaguchi 745-8648,
Japan (Registered address) Tel: +81-834-34-2000 Fax: +81-834-33-3790

307.1

Operating Income

39.7

150

0

■ Company Outline

302.0

287.3

258.6

50

FY2016

Industrial effluent (million metric tons)

Unit: Metric tons

Net Sales

FY2016

Dichloromethane (methylene chloride)

Chloroethylene (vinyl chloride)■ Financial Highlights

Life & Amenity¥ 50.7 billion（15.1%）¥ 83.3 billion(24.7%)

Total¥ 299.1
billion*Cement¥ 82.9 billion

Specialty Products¥ 67.7 billion(20.1%)（24.6%）

Number of
79 (as of March 31, 2017)group companies:
Main businesses:

Breakdown of Waste Treatment Methods
Unit: 1,000 metric tons

FY2011FY2012FY2013

FY2014FY2015FY2016

Waste recycled in-house

331

337

350

312

346

332

Waste recycled externally

27.3

25

24.5

21.9

21.4

23.1

Incinerated waste

21

19.7

20.5

21.3

21.9

21.5

Waste sent to landfills

0.5

0.3

0.3

0.3

0.4

0.4

Total waste generated

380

382

396

355

389

377

Manufacture and sale of the following chemicals and products

Chemicals: Soda ash, chlor-alkali, vinyl chloride and new organic chemicals
Specialty Products: Polycrystalline silicon, fumed silica,
high-purity chemicals for electronics manufacturing and aluminum nitride
Cement: Cement, recycling and environment-related business

Securities code:

Life & Amenity: Fine chemicals, microporous films,
synthetic resins, ion exchange membranes and dental materials
4043 (First Section of the Tokyo Stock Exchange)

Amount of Waste Matter and By-Products Used to Produce Cement
Unit: Kg per metric ton of cement
Amount used

Base year (FY1991)

FY2012227

FY2013458

FY2014461

FY2015448

FY2015459

441■ Global Network
Material and Thermal Recycling Amounts in Cement Production
Unit: 1,000 metric tons

34

Base year (FY1991)

FY2012FY2013Tokuyama has expanded globally, with factories and sales branches now established in
FY2014FY2015seven countries and regions around the world, primarily in Asia.

FY2016

Material recycling

1,550

1,730

1,879

1,702

1,711

1,746

Thermal recycling

4

54

66

86

74

84

■… Manufacture and sales●… Sales35