Tokuyama Corp.
Responsible Care & Eco Management Dept.
Tokuyama Corporation
Shibuya Konno Bldg., 3-1, Shibuya 3-chome
Shibuya-ku, Tokyo 150-8383
Phone: +81 3-3499-8478
Fax: +81 3-3499-8961
URL: http://www.tokuyama.co.jp
e-mail: rc-toukatsu@tokuyama.co.jp

The photo of the cover represents the kiln of the cement plant of Tokuyama Factory.
The cement plant accepts a large quantity of waste and by-products not only frominternal facilities but also from other companies and municipalities to recycle themeffectively. The cement plant contributes to the creation of a recycle-oriented
society through environmental conservation efforts, such as resource saving andreductions in CO2 emissions and waste.

Responsible Care Report
2005
Our Commitment to the Environment, Safety, and HealthThis report is printed on FSC-accredited paper with pure plant oil ink, which contains no volatile organic
compounds, and in a dry printing process that uses no water, thus precluding release of any harmful effluents.

Date of issue: September 30, 2005
Next issue: Scheduled for September 2006

TOKUYAMA Responsible Care Report
CONTENTS
01 Summary of Business
02 Message from the President
RC Management
03 Basic Philosophy of Responsible Care
04 Material Flow Balance in Our Production Activities
05 Results and Evaluation of Fiscal 2004 Activities
06 Environmental Accounting
07 RC Promotion System and Management Systems
Operation

Environmental Performance
09 Recycling Outside Waste
11 Reducting and Recycling of Waste Materials
12 Prevention of Global Warming
13 Reduction of Air and Water Pollutants
15 Development of Environmentally-Friendly Products

Message from the President

Summary of BusinessCompany Outline
Established:

Sales

February 16, 1918

Headquarters: Shibuya Konno Bldg.
3-1, Shibuya 3-chome,
Shibuya-ku,
Tokyo 150-8383,
Japan
Production and Research Sites:
Tokuyama Factory,
Kashima Factory,
Tsukuba ResearchLaboratory
Capital:

3,000

2,441

2,500
2,000

Non-consolidated
Consolidated(JPY 100 million)

1,733

1,500

2,269

1,540

2,255

2,375

2,193

1,554

1,514

1,450

1,000
500
0

2000

2001

2002

2003

2004
(Fiscal year)

JPY 19,273 million(as of March 31, 2005)

Current Profit

Non-consolidated
Consolidated(JPY 100 million)

160

and Environmental Technologies

153

140

17 Comprehensive Safety Management of Chemicals
18 Promoting Safety and Environmental Management

120

115

100

in the Distribution Process

92
63

60

Relationship with Society
19 Reliable Company
22 Relationship with Employees
23 Process Safety and Disaster Prevention/

86

78

80

37

40

66

40

25

20
0

2000

2001

2002

2003

2004
(Fiscal year)

Occupational Health and Safety

Number of Employees

25 Harmonious Coexistence with Communities andSociety

Site Report
27 Tokuyama Factory
28 Kashima Factory
29 Environmental Activities of Group Companies
30 Third Party Opinion/History of Activities(Fiscal 2004)

5,000

Cement,Building
materials,
andOthers74631%This Environmental Report 2005 was prepared with the aim of bringing
Tokuyama’s activities on the environment, safety and health in fiscal
2004 to the attention of all concerned, such as stakeholders,customers, employees and their families, people living near its sites,
and the general public. We increased the number of items under thetitle of “Relationship with Society” as compared with the Environmental
Report 2004. The Environmental Report 2005 includes, as much as
possible, performance data of group companies. The Environmental
Report 2005 is prepared based on the Environmental Reporting
Guidelines (Fiscal 2003 Edition) (Ministry of the Environment).
The Environmental Report 2005 is available at our Web site.
http://www.tokuyama.co.jp

Scope of Report
Period:From April 2004 to March 2005
Companies: Tokuyama Corp. (Tokuyama and Kashima Factories)
For certain performance data, a total of eleven main
production subsidiaries (see page 29) is also indicated.
Region:Activities in Japan

01

(JPY
100 million)

4,868

4,685

4,615

4,614

4,568

4,000

Chemicals

3,000

958
41%

2,000

Total
2,375

Specialty Products

Editorial Notes

Non-consolidated
Consolidated

Segmental Sales Breakdown 6,000 (Persons)

2,415

2,276

2,179

2,113

2,004

1,000
0

2000

2001

2002

2003

2004
(Fiscal year)

671
28%

Business Segments and Main Products
Segment

Main Products

Caustic soda, soda ash, calcium chloride, sodium silicate, vinyl chloride
monomer and polyvinyl chloride, propylene oxide, isopropyl alcohol,
Chemicals methylene chloride, biaxial-oriented polypropylene films, multilayer coextrusion films, cast polypropylene films, microporous films

Specialty
products

We promote environmental management and CSR.
Tokuyama aims at becoming a “company to be consistently
relied on by society and customers.”

Polycrystalline silicon, amorphous precipitated silica, fumed silica,
aluminum nitride, dental materials, pharmaceutical, agricultural chemicalbulks and intermediates, plastic lens materials, ion-exchange membranes,
methylene chloride for washing metal, solvent for semiconductor basematerials, environment-related items, medical diagnosis systems, gassensitive semiconductors

Cement,Building Ordinary Portland cement, high early strength Portland cement, blast
materials, furnace slag cement, ready-mixed concrete, plastic window sashes,and Others cement type stabilizer, waste treatment

Economic and social activities in the 20th century, characterized by mass production andmass consumption, have greatly benefited human beings. On the other hand, they have alsobrought about environmental problems, such as global warming and concerns about the
depletion of natural resources. Reflecting on this situation, we must be determined to makethe 21st century the “Century of the Environment,” in which we pay full respect to thevalue of the global environment and make efforts to ensure our harmonious coexistencewith it. The chemical industry has made available a variety of chemical products to society
and contributed to enhancing the wealth of our life. At the same time, as a chemicalcompany, we are well aware of the indispensable necessity of giving due consideration to
the environment and human health to ensure that they are not harmed by chemical
products.
By acting on the principle of responsible care that is followed globally by chemicalindustries, Tokuyama joined Japan Responsible Care Council when it was founded in 1995.
Since then, we have been conducting voluntary activities for a decade to protect people’s
health and the environment and to maintain safety for the whole life cycle of chemical
products from manufacturing, logistics, use, to final consumption and disposal.
We have positioned environmental management as one of the core strategies andincluded a theme of “environment and energy” as one of the important growth strategies inour medium-term business plan. Environmental management is a business philosophy thatplaces a priority on the environment. We aim at enhancing corporate values and achieving asustainable society by transforming all our business activities into environmentally friendly
ones. In particular, we have concentrated our energy on recycling waste and by-products by
utilizing our ability to manufacture chemical products and cement. In fiscal 2004, wereceived waste and by-products in the amount of 1.54 million tons from the outside to
manufacture cement. We are proud of the fact that we are contributing to the “creation ofan environmentally friendly country” by reducing consumption of natural resources
through the above-mentioned activities.
In the three-year business plan starting from fiscal 2005, we introduced a concept ofcorporate social responsibility (CSR) to ensure the sustainability of our company. Based on
this concept, we will enhance a framework to promote environmental management,
security, disaster prevention, and energy saving to help prevent global warming,
compliance, etc. In other words, we aim at developing excellent “human resources”
through the enhanced framework and the promotion of the above-mentioned activities.
Following the past “industrial revolution” and the recent “IT revolution,” it is said thatthe “environmental revolution” will begin in the 21st century. Tokuyama, as a chemical
enterprise with excellent technologies, aims at becoming a “company to be consistently
relied on by society and customers” by contributing to the “environmental revolution” andcompletely fulfilling its social responsibilities.
The contents of this report as a social and environmental report are enriched. We
sincerely hope that you will understand our activities and give us your opinions orcomments.
July 20, 2005

Shigeaki Nakahara
President

02

RC Management

Responsible Care Report

Basic Philosophy of Responsible Care

Material Flow Balance in Our Production Activities

To fulfill the social responsibilities of our company as a chemical product manufacturer, we have established a basic
policy, action objectives and medium-term environmental goals, and are promoting responsible care activities for theprotection of the environment and people’s health and safety maintenance on a company-wide basis.

We accurately assess and manage the input and output of the manufacturing of main products, such as cement,chemical products, and polycrystalline silicon, and also the input and output of the private power plant that supplies
most of the energy needed for production operations.
(unit: 1,000 tons)

Basic Policy
As a member of the Japan Responsible Care Council, Tokuyama Corporation carries out Responsible Care
activities that protect the environment and preserve safety and health throughout the entire chemical
substance life cycle, from development and manufacturing, to distribution, use, final consumption, anddisposal. Our social mission is to aggressively tackle and solve environmental issues in particular, which, inturn, will lead to sustainable corporate and social development. Based on this recognition, we are promoting“Environmental Management,” a management policy that emphasizes the environment, in all of our businessactivities, including development, manufacturing, and sales.

Waste and by-products
1,540
Cement plant

1 Promote environmental protection.
Implement ISO14001 based Environmental Management System and reduce environmental loads.

2 Observe laws and regulations.
Observe international rules, local laws and regulations, and industrial standards.

Carbon dioxide (CO2)7,090
Waste materials(incinerated/landfill)

Private
power
plant

Fuel
2.020
(53,100,000GJ)

23
Chlorine
derivatives
plant

Chlorine

Chlor-alkali
plant

Raw materials
7,690

Action Objectives

Tokuyama
Factory

Silicon andsilica plant

Chlorine, hydrogen, alkaline

AlkalineIN

Wastewater,such as cooling water

Kashima Factory

EnergyWaste and by-products

Products

Thoroughly practice internal export control rules.

Industrial wastewater
21,200

Alkaline

Soda ash plantIndustrial water
50,200

Environmentalload materials
14

OUT

7,180

3 Promote energy conservation and curb global warming.
Achieve the lowest unit energy consumption in the industry for each of our products.

4 Promote resource recycling and work towards the reduction and proper management of waste materials.
Promote material recycling and thermal recycling of resources.

Chemical products

Work towards the paperless office.

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

Caustic soda
Soda ashVinyl chloride
Microporous films

Soda ash

Aim for zero accidents and disasters based on principles of safety self-management and self-responsibility.
Secure comfortable work environment and protect people’s safety and health.

6 Ensure strict product safety standards.
Offer environmentally-oriented products that can be safely used.

Microporous films

Provide clear information on how to use the product and what care to take.

Specialty products

7 Deepen trusting relationships with the society.

Polycrystalline silicon
Aluminum nitride
Plastic lens materials
Solvents for semiconductor
base materials

Publicly disclose information on Company’s activities concerning environmental protection, process safety,
occupational health and safety, and chemical product safety.
Actively pursue dialogue with local communities.

Environmental Goals

Liquid caustic soda lorry

Cement, Building
materials and Others
CementCement type stabilizer
Plastic window sashes
Construction andhousing materials

Polyvinyl chloride

Solvents for semiconductor
base materials

Achieve a 15% reduction in unit energy consumption from 1990 levels by 2005.
Raise the effective waste utilization rate to 92% by 2005.
Plastic window sashes
Responsible Care: Responsible Care (RC) is a self-management activity by a company that either manufactures or handles chemical substances, toimplement and improve measures for protecting the “Environment, Safety, and Health” of society and staff throughout the chemical substance handlingprocess—from inception in the research and development through manufacture, distribution, and use, to final consumption and disposal. These activities also
includes public disclosure of company performance and social dialogue. Born in Canada in 1985, Responsible Care has spread to 47 countries. The Japan
Responsible Care Council (JRCC) was established in 1995 within the Japan Chemical Industry Association and has 107 companies registered as of April 2005.

03

Aluminum nitride

Polycrystalline silicon
Lenses and optical materials

Cement (Oakprio Tower)04

RC Management

Responsible Care Report

Results and Evaluation of Fiscal 2004 Activities

Environmental Accounting

We have already achieved environmental goals for 2005 for unit energy consumption and the waste utilization rate.
Tokuyama Factory has received the Director-General of the Agency for Natural Resources and Energy Award for Excellent
Energy Management Plant.

We have adopted an environmental accounting system and publicized related data since fiscal 2000 with an aim ofanalyzing the cost of environmental conservation activities (investment and expenditure), assessing their economic
benefits, and utilizing the data for more efficient environmental management.

We have established priority themes for each of the categories of
responsible care activities, and promoted activities on a companywide basis. We are properly implementing environmental, quality
and occupational safety and health management systems to improve
activities.
In fiscal 2004, we further improved unit energy consumption bycarrying out an energy saving project, etc. The waste utilization rate
remained at a high level of 94.3%, although the rate slightly
declined from the previous year’s level due to increased production,etc. Both unit energy consumption and the waste utilization rate
have already achieved fiscal 2005 medium-term goals. From now
on, we will further promote activities by establishing goals ofhigher levels.
We have significantly reduced the emission of PRTR
substances and hazardous air pollutants by implementing effective
emission reduction measures.
We will continuously make efforts to reduce the emission ofNOx and soot particles and COD that have increased slightly.

Fiscal 2004 RC Activities—Priority Issues and Solutions
Segment

Priority Issues

Solutions

Related pages

Management• Review by Senior Management• RC Administration Committee• Safety and Environmental Inspection

P. 7
P. 8

Environmental preservation• Environmental load
reduction• Energy conservation• Recycling• Reduction in environmental burdens (air, water quality, etc.)• Reduction in the emission of PRTR substances andhazardous air pollutants• Decrease in unit energy consumption• Promotion of zero-emission activities• Promotion of green purchase• Compliance with environmental regulations• Reduction in emission of SOx and hazardous air pollutants• Promotion of energy conservation• Thermal recycling of waste plastic materials• Waste material recycling• “Green Procurement” of office supplies and lighting
equipment• Implementation of Environmental Management System

P. 13-14
P. 12
P. 10
P. 9-10
P. 8
P. 7

Process safety• Maintenance of no-accident operations• No accident• Improvement of the crisis management system• Promotion of risk management• Active efforts to acquire a certification of safety self-management • Acquisition of a certification of high pressure gas safety
inspection

P. 23
P. 21
P. 23

Occupational
health and safety• No disaster• Consistent implementation of occupational safety and ahealth management system• Maintenance of no-disaster operations• Internal audit

P. 23-24

Chemical product safety• Ensured product safety• Product assessment, labeling inspection• Improvement of MSDS, investigation of potentiallypoisonous and deleterious substances• Participation in the HPV program

P. 17-18• Participation in community activities• Co-existence with local communities• Participation in community’s volunteer activities• Hosting dialogue meetings on RC activities (for local
communities and inside each factory)• Factory tours for community members

P. 25-26• Dissemination of RC activities• Safety and environmental inspection• Acquisition of ISO certification• Sharing of RC-related information

Trusting relationships withlocal communities
Promotion of RC program
to group companies

Items

Unit

TargetEconomic Benefits

Year-over-YearFY 2004

1,880

1,720

–160

tons/year

11,500+600

Soot and Dust*

tons/year

254

272

+18

Water

COD

tons/year

135

145

+10

Energy conservation

Unit energy consumption index*(compared to 1990)

%

–16.7

–16.9

–0.2

Reduced wastematerials
PRTR* Tokuyama Factory

05

Recycling

Waste material effective utilization rate%

–15
(FY 2005)
92(FY 2005)

197

200

150

100

50

0
00

01

Major Expenditure Items

02

03

04 (Fiscal year)

Amount Invested Total Expenditure(JPY million)(JPY million)

Pollution prevention

Installation of incidental environmental equipment at a new plant, andinstallation or renewal of waste gas treatment equipment, electric precipitator, etc.

1,053

3,526

Global environment
conservation

Adoption of new model cement coolers, and installation of energy saving equipment

637

575

Resource recycling

Improvement of waste fluid recovery equipment

4

1,032

0

1

Costs of management activities

Hazardous air analyzer

33

263

Research and development costs

Development of waste treatment technology

1

189

Costs of social activities

Tree-planting at factories and preparation of environmental reports

20

42

Costs of environmental damage

Levies and management of disused mines

1

188

1,749

5,816

Total

Economic Benefits
Item
Benefits from energy conservation

Global environment
conservation

218
208

Upstream/downstream costs

10,900Pollution control

228

About 60% of environmental investment is used for pollution
prevention, and a little less than 40% for the conservation of the
global environment. In fiscal 2004, environmental investment was
mainly made for the installation of incidental environmental
equipment to newly built production facilities, the adoption of newcoolers for cement plants, and the adoption of energy-saving
desulfurization equipment for private electric generators.

Factory site costs

tons/year

SOx*

246

Environmental Conservation Costs

Classification

NOx*

Air

(JPY 100 million)

250

Environmental Conservation Costs

P. 29

FY 2003

Trends of Accumulated Environmental Investments(cumulative since FY 1990)

Economic benefits are evaluated based only on actual revenue
figures, where any projected benefits are excluded, in areas ofenergy conservation, sales of relevant materials, and reutilizationof waste materials, which helps minimize processing for disposal
and reduce consumption of raw materials and fuel. In fiscal 2004,
economic benefits in the amount of about 1.5 billion yen weregenerated. This amount remains almost unchanged from theprevious year’s level.

Fiscal 2004 Environmental Management Activities
Segment

In fiscal 2004, investment amount increased by about 700 million
yen over the previous year’s level. Expenses and economic benefits
remained almost unchanged from the previous year’s level.

94.8

94.3

–0.5

PRTR

tons/year

98

68

–30

Hazardous air pollutants

tons/year

49

33

–16

Material Benefits Economic Benefits(1,000 tons)(JPY million)

Remarks—

120

Benefits from lower electricity and steam consumptions

Revenues from salable materials

92

129

Revenues from selling metal scraps, waste oils, waste acids and alkalis

Benefits from lower waste materials processing costs

273

701

Processing costs reduced by reutilization of waste materials

Benefits from lower raw material and fuelconsumption realized by waste reutilization

279

509

Raw materials and fuels costs reduced by reutilization of waste materials

Total

1,459

* Costs were compiled according to “Environmental Accounting Guideline—2002” of the Ministry of the Environment. * Economic benefits of Tokuyama Corp. are totalized.

06

RC Management

Responsible Care Report

RC Promotion System and Management Systems Operation
We have a company-wide system to secure the environment, quality, and safety.
Compliant to respective management systems, we are making continuous improvement. In fiscal 2004, we made aneffort to improve the quality of activities by expanding the scope of application.

RC Promotion System

Operation of Management Systems

Our RC Administration Committee, which draws up the highest
level policies on our RC activities, is chaired by the president andcomprises corporate management members. The committee
discusses and approves company-wide RC policies and otherenvironment, safety, and quality-related policies. Under thiscommittee are various subordinate organizations: theEnvironmental Measures Committee, the Safety Measures
Committee, the Product Safety and Quality Assurance Committee,
and the Product Assessment Committee. These subordinate
organizations are responsible for discussing specific activity plans
and assessing product safety. Each subcommittee is chaired by acorporate director responsible for the relevant company-wideissues. Heads of appropriate departments of the company are
assigned as subcommittee members.

Management System for Environment
Activity Assessment
We prepared a mid-term (3 years) environmental plan. To
implement the plan, we set ourselves yearly policies and goals,
based on which each department prepares specific plans for
implementation. The activities undertaken are assessed at the fiscal
year end and the results reflected in plan for the following year.

RC Promotion System

Both our Tokuyama and Kashima factories have acquired ISO
14001 certification, one of the main international standards and on
which we base our Environmental Management System.
In line with company-wide environmental policy, each factory
sets itself an environmental policy and the specific goals to beachieved in areas covering lowering environmental loads, energy
conservation, reducing waste material disposal, and promoting
resource recycling.
At the company headquarters, branch offices, and researchlaboratories, activities are under way based on their respective
policies and goals in the areas of energy conservation, reducing
waste material disposal, and resource recycling.

ISO 14001
ISO 14001 is one of the major international standards developed by the International
Organization for Standardization (ISO), and provides the requirements forEnvironmental Management Systems. ISO 14001 certification is awarded to anorganization that, based on the environmental management system implemented
according to a systematized process, operates its business in an environment-oriented
manner and achieves continual improvements through corrective actions, as necessary.

ISO 9001 Quality Management System

We have also acquired ISO 9001 certification (Quality

RC Administration
Committee

Product Assessment
Committee(Labeling Assessment
Subcommittee)

Environmental
Measures Committee

Safety andEnvironmental
Assessment
Subcommittee

RC Research Laboratory(Support Organization)
Checks safety of chemicals andassesses their environmental
impacts using simulations.
Environmental measurements, work
environment measurements, andultra-trace analyses of controlled
substances and chemical pollutants
are also carried out.

Safety Measures
Committee
Product Safety andQuality AssuranceCommittee

Responsible Care & Eco
Management Dept.
(Secretariat)
Promotes RC activities throughout
the Company and its groupcompanies covering areas of theenvironment, safety, and quality.

Reflected in next year’s goals and plans

RC Activity Goals
Decision-making Function

ISO 9001
ISO 9001 is one of the major international standards developed by the International
Organization for Standardization (ISO), and provides the requirements for Quality
Management Systems. It enables a company to establish dependable quality management
systems within its organizations and thereby further address customer satisfaction.

ISO 14001 Environmental Management System

Management System for Environmental Activity
Assessment

Assessment Function

Management System) for our major products. In fiscal 2004, we
made an effort to enhance our Quality Management System, inwhich our Sales and Development departments joined in fiscal
2002, to further improve customer satisfaction.

Environmental Load
Reduction Goals
Environmental
Management Plan
Environmental
Management Activities

Mid-term Environmental
Plan

ISO 14001 Environmental
Management System

Safety and Environment
Assessment System
RC Inspection and Auditing
SystemAssessment of
Activities

Environmental Accounting

Health and Safety Management System

Based on the “JCIA—New Occupational Health and Safety
Guidelines” of Japan Chemical Industry Association, we have
implemented a Safety and Health Management System within our
respective factories and commenced operation of these in fiscal
2003. In fiscal 2004, we expanded the scope of risk assessment,
and also expanded the scope of application of the system to include
administrative departments of factories.

Health and Safety Management System
In the area of occupational health and safety, this system requires the company to list
dangerous/hazardous tasks, make risk assessments, and provide appropriate
measures to be adopted for such tasks in the order of the highest risk first, thereby
lowering the overall risk level. Performance is continually and systematically improved
as the above activity proceeds in a cycle of “Planning—Action—Assessment—
Corrective Action.” The “JCIA—New Occupational Health and Safety Guidelines” areprepared for chemical companies, based on the relevant guidelines issued by the
Ministry of Health, Labor and Welfare, as well as International Standard OHSAS
18001.

Assessment Systems
With the necessary assessment systems in place, we are working
towards lowering environment- and safety-related risk levels.
The Safety and Environmental Assessment Subcommittee and
the Product Assessment Committee are at work making strict
assessments on environmental, safety, and product safety
management performance.
Safety and Environmental Assessment

Before any facility is newly installed, expanded or refurbished, we
require a safety and environmental assessment to be carried out.
The assessment is designed to check the design safety ofequipment, the safety of the materials being handled, compliancewith laws and regulations, and impacts on the environment. This
helps us in our effort to make our facilities safe and easy tooperate, easy to maintain, and accident-free. The assessments
apply to three stages: Basic Plan Assessment, Design Assessment,
and Pre-Operational Assessment. Through such stages,
assessments are made to ensure that facilities are of safe andenvironment-oriented design, built to the design requirements, andready for operation.
Product Assessment and Labeling Assessment

To ensure product safety, our Product Assessment process is ineffect at each stage, from research and development through toshipment of our products. This risk assessment covers a variety of
aspects including safety of the chemical substances involved,
environmental impacts, human health effects, compliance withlaws and regulations, etc. Our Labeling Assessment helps us
ensure that the labels that we carry on our products contain no
defects in their instructions and/or warnings and that they containsufficient and easy-to-understand information.

Inspection and Auditing System
Our Inspection and Auditing System is in place to help us verify
that activities undertaken at each factory are in line with companywide policies.
Safety and Environmental Inspection

We apply this inspection on a yearly basis to check theappropriateness of our accident/disaster preventive measures andmanagement quality concerning environmental conservation. The
inspection team is headed by the corporate director chairing theEnvironmental and Safety Measures Committee, and conducts
inspections at therespective factories,
distribution sections,and the healthmanagement center.
A report is compiled
from the inspection
results and distributed to
all those concerned. The
results are also reported
to the company
president.
Safety and Environmental Inspection (Tokuyama Factory)
Internal Auditing

Our internal auditing is carried out periodically in accordance with
ISO 9001, ISO 14001, and Safety and Health Management Systemprocedures. Progress status of the planned actions and the systems
operational status are audited, and areas of nonconformity
identified for corrective actions.
Third Party Auditing

We are audited byregistrars forcertification of ISO 9001
and ISO 14001.

ISO 9001 auditing(Chemicals Business Division,
Manufacturing Dept.)

Promotion of Green Purchasing
We have included the promotion of green purchasing in the basicpurchase policy. We are actively promoting a green purchasing
campaign in purchasing copy paper and other office supplies.

Education and Training
Employee education and training on the Responsible Care
activities are provided on a hierarchical group basis.
For environmental management, safety management,
occupational health and safety, and quality management, “On-theJob-Training” is provided so that employees can learn throughactual management activities.

Environmental Performance

07

08

Environmental Performance

Responsible Care Report

Recycling Outside Waste
Our cement plant accepts and recycles a large quantity of outside waste and by-products to use as raw materials or fuel.
These activities produce significant environmental conservation effects, such as conservation of natural resources, adecrease in the emission of CO2 and reduction in waste.

were used as the raw material substitutes (Material Recycling) andthe remaining 85,000 tons were used as fuel substitutes (Thermal
Recycling). Unit consumption of waste/by-products per ton of
cement increased by 1.2% from 401kg in fiscal 2003 to 406kg.

Recycling a Variety of Waste Materials
Waste Plastics

Efficient Use of Resources and Energy
Our cement plant, which commenced operations in 1938, wasdesigned to be capable of effectively utilizing the by-products fromour own soda ash plant and coal cinders from our own power plantas part of the raw materials for cement. Today we also accept andrecycle a large quantity of waste and by-products from outside.
Most waste and by-products contain the same elements as thosecontained in limestone, clay, silica, etc. that are used as raw
materials for cement. Therefore, they can be used as raw materials
for producing cement. Flammable waste can be used as analternative fuel instead of coal. The internal temperatures of thecement kiln* reach as high as 1000–1800 °C, high enough to allow
complete combustion of any flammable materials. Another featureis that the ash remaining after combustion is still used as aconstituents of cement, thereby leaving no residues such as
incineration ash.
Thus, elements of waste are effectively recycled as heat energy
or raw materials for cement. Therefore, the effective utilization ofwaste and by-products at the cement plant greatly contributes to thecreation of a recycle-oriented society through a reduction in
consumption of exhaustible resources, the prevention of global
warming due to a decrease in the emission of CO2 and theextension of service life of final disposal sites in Japan.
The waste materials and by-products reutilized in our cement
plant in fiscal 2004 amounted to 1,890,000 tons, including 350,000
tons of waste from inside our company. Of this, 1,810,000 tons

Flow Diagram of the Waste and By-products Recycling Process in Cement Manufacturing

We began thermal recycling of waste plastics at the cement kiln in1999 and expanded recycling capacity annually. In January 2005,
we started the construction work of the No. 4 unit at the waste
plastic crushing plant. When the unit is completed, the annual
recycling capacity will increase from 85,000 tons to 125,000 tons.
In fiscal 2004, a total of 63,000 tons of waste plastics wererecycled.

Dehydrated Cakes of Municipal Waste Incineration Ash

Yamaguchi Eco-Tech Co. (a joint venture company between
Tokuyama and Ube Industries Ltd.) handles the recycling ofmunicipal garbage incineration ash generated in Yamaguchi
prefecture. The incineration ash originating from municipal
garbage and industrial waste is processed for dioxin removal andwater wash desalting, and then used as raw materials for cement. In
fiscal 2004, we accepted 27,000 tons of dehydrated cakes ofmunicipal waste incineration ash from Yamaguchi Eco-Tech, andused them as raw materials for cement.

Waste Tires

We have facilities to feed chipped waste tires into the cement kiln
and recycled 7,000 tons of waste tires in fiscal 2004.
Coal Ash/Sludge

We accepted a total of 970,000 tons of coal ash from thermal
power plants, sewage sludge from municipal sewerage systems,
and waste soils from construction sites, and used them as the clay

Waste and By-Products Generated from Inside
Our Company and Accepted from the Outside(Figures represent those of fiscal 2004)

SludgeProducts

substitute in fiscal 2004. In July 2004, we expanded facilities torecycle waste soil from construction sites.

As raw materials(material recycle)

1.81 mil. tons
Ash after
combustion

Construction sludge, water works sludge, sewage sludge, paper sludge,
fuel sludge, industrial wastewater sludge

Facility to treat sludge(1,000 tons/year)

Construction waste soilsd
We recycle incineration ash generated from municipal waste
incineration facilities in Yamaguchi prefecture after the ash is pretreated by Yamaguchi Eco-Tech.

Volume ofMaterial
Recycling

1,071

0
90

(thermal recycle)

Cement plant

We developed a technology to stably inject quantities of crushed
waste plastics into the front portion of the cement kiln. We expanded
our capacity to accept, crush and incinerate them year after year in
response to increased requirements.

Injection of waste plastics

Heavy fuel oil ash generated from thermal power plants, etc.

Primary crushing

Volume ofThermalRecycling

03

04(Fiscal year)

51

40

55

35
4

Inflammable waste liquid

02

85

20

0
01

80

60

Wood Chips
Waste Liquid00Secondary crushing(1,000 tons/year)

Waste Tires
Meat-and-bone meal

90

04

03

80

Animal Sludge

100

02

Waste Plastics (Excluding Vinyl Chloride)

Acceptance of chipped waste tires

200

01

(fiscal year)

Heavy Fuel Oil Ash

406

263

00

As fuels
85,000 tons

300

1,809

Blast furnace slag, converter slag, steel-making slag, neutralization slag

500

401

1,733

Slag

(kg/t-cement)

381

1,619

500

Film developer and waste alkali are injected into the drier after they are
stored in special tanks.

Trend of unit consumption of waste andby-products

394

1,772

1,000

Waste Liquid

Used as elements of cement

385

1,813

1,500

Waste Incineration Ash

Coal ash generated from thermal power plants, including our private
power generation plant

400

Coal ash silo

2,000

Waste Soils

Coal Ash

No residue

Facility to reform constructionwaste soil

Facility to accept waste film
developer

0
90

00

01

02

03

04
(fiscal year)* A cement kiln is a rotating furnace used to sinter the raw materials in the cement plant.

09

10

Environmental Performance

Responsible Care Report

Reducing and Recycling Waste Materials

Prevention of Global Warming

We are making an effort to reduce waste generated in production and promoting the effective use of generated waste.
Thanks to these efforts, We have acquired a certification of “Fiscal 2004 Yamaguchi Prefecture Eco Factory.”

We acknowledge that a company has a social responsibility to reduce greenhouse gas emissions to help prevent global
warming. We are always promoting various activities, including energy saving efforts, by setting high goals.

Waste Management
Waste materials generated in fiscal 2004 from our facilities
amounted to 396,000 tons. We actively promoted the recycling ofwaste materials generated inside and outside our company, such as
the reutilization of waste materials as raw materials and fuel for
producing cement at Tokuyama Factory. Although the quantity of
waste oil generated increased due to the high operating rate of the
manufacturing plants, and the incleased incineration quantity,effective utilization rate of waste materials remained at 94.3%.
Although this figure is slightly lower than that of the previous year,
it successfully exceeds fiscal 2000’s target of 92%.
Our efforts in the field of minimizing landfill waste andmaximizing recycling of such waste allowed us to achieve a 99.8%“zero-emission” rate for landfill waste.
In fiscal 2004, Tokuyama Factory acquired a certification as“Yamaguchi Prefecture Eco Factory,” thanks to these efforts.
Under the “Eco Factory Certification System,” Yamaguchi
prefectural government grants a certification to those factories thatare actively involved in the reduction and recycling of industrial
waste generated. The system intends to contribute to the formationof a recycle-oriented society.

Promotion of Energy Saving Efforts

Breakdown Graph of Industrial Waste Handlingin Fiscal 2004
Zero emission rate 99.8%
Effective utilization rate
94.3%

Incineration
Landfills

21.8

0.7

5.5%

0.2%

Outsiderecycling17
4.2%

Total Waste
Amount396,000 tons
Inside recycling(Raw materials and fuels)

357
90.1%
(Unit: 1,000 tons)

PCB* Waste Management
Both Tokuyama and our group companies appropriately store PCB
containing articles such as utility transformers, capacitors, and thelike, in accordance with the requirements of the “Law Concerning
Special Measures against Polychlorinated Biphenyls Waste.”Effective utilization rate (%) =Recycled Volume (inside & outside)100

Total Waste Generated

Zero emission rate (%) = 1 –Disposal to Landfill (inside & outside)100

Total Waste Generated

Waste Materials Flow

Effective Utilization Rate for Waste and Disposal
to Landfill
50

Both Tokuyama and its group companies contribute to a reduction
in CO2 emissions in consumer and transportation sectors, in which
CO2 emissions have significantly increased, through the sales of
products, including a resin sash called “Shanon” that is highly
effective for saving energy at home and silica for energy-saving
tires. Furthermore, we are developing technologies for theprevention of global warming, such as the construction of a test
plant for polycrystalline silicon for solar cells and the developmentof electrolyte membrane for fuel cells.

CO2 Emissions
8,000

30

94.8

94.3

91.2

90.9

90

20

85

10

80

5.2

1.2

0.6

0.7

02

03

75
04 (Fiscal year)

0
90

00

Incineration(inside company)
21,000 tons

Incineration(outside company)
800 tons

01

Fuel sourced

Raw material sourcedGroup companies

7,000
6,000
5,000

90

100

170

90

2,290

1,960

2,340

2,180

2,150

2,220

3,350

4,250

4,360

4,400

4,640

90

00

01

02

03

4,000
3,000
2,000

4,800

1,000
0

04
(Fiscal year)* Figures of group companies are included in and after fiscal 2001. This time, we made a review to
avoid double counting, etc. As for Tokuyama Polypropylene Co., Ltd., their actual figures have been
included in the data of Tokuyama until fiscal 2003, and included in the data of group companies
since fiscal 2004.

Unit Energy Consumption Index (Tokuyama Factory)00–2Energy Consumption
Tokuyama alone(1,000 GJ/year)

Waste
discharged
outsideWaste
generated
396,000 tons

1,800

1,700

2,800

40,000–8–10–1230,00038,10020,000Recycled outside
17,000 tons

–4
–6

50,00018,000 tons

Recycled internally357,000 tons

Group companies

60,000

1,600

5.5

76.9

(1,000 tons)(Reduction rate %)Disposal to landfill(outside company)
400 tons

Disposal to landfill(inside company)
300 tons

95

36.3
93.9

Landfills (1,000 tons)

Outside company

Contribution to Global Warming Prevention
Measures of Consumer and Transportation Sectors

100

Effective utilization rate (%)

40

Inside company* All numbers refer to fiscal 2004.

We consume a large amount of energy in the manufacturing
process of our major products, such as caustic soda, cement, etc.
Carbon dioxide, which is one such greenhouse gases, is generated
by the combustion of fossil fuels. CO2 will also be generated whenlimestone as a raw material is decarbonated in the cement
production process. We place a priority on contributing to theprevention of global warming, and are promoting energy saving
activities to reduce CO2 emissions.
Tokuyama Factory, which accounts for 99% or more of theenergy consumption of our company, has established a midterm
target to reduce unit energy consumption by 15% by fiscal 2005 ascompared with fiscal 1990, and is promoting energy-saving
activities. Tokuyama Factory had already achieved this target in
fiscal 2003 and is making continuing efforts to achieve a newtarget of reduction of unit energy consumption by 17.5% by fiscal
2010 as compared with fiscal 1990. Our new target is far morechallenging than the overall target of Japan Chemical Industry
Association (a reduction of unit energy consumption by 10% by
fiscal 2010 as compared with fiscal 1990.)
In fiscal 2004, we implemented those energy saving activities
that were found in the energy-saving project assisted by an outside
consultant in fiscal 2003. As a result, we achieved a 16.9%
reduction of unit energy consumption in fiscal 2004 as comparedwith fiscal 1990. This reduction rate is more favorable than that
achieved in fiscal 2003. Thanks to these energy saving efforts, CO2
emissions increased only slightly despite the fact that production
increased.
Tokuyama Factory has received the fiscal 2004 DirectorGeneral of the Agency for Natural Resources and Energy Award
for Excellent Energy Management Plant (Electricity Sector).
We also have completely converted the refrigerants in ourrefrigeration equipment from Freon to other substitutes.

48,20049,40050,00051,90053,100

–14

–12.6

–12.1
–13.4

–16

10,000

–16.9
–16.7

–18

0
90

00

01

02

03

04
(Fiscal year)

90

00

01

02

03

04

–17.5
10 (Fiscal year)(Target)* PCB is an abbreviation for Polychlorinated Biphenyl. This is a chlorinated organic compound and produces dioxins when burnt at low temperatures. It is chemically stable, heat-resistant,chemical-resistant, and provides excellent electrical characteristics such as high insulation performance. It had many applications in electrical equipment, such as utility transformers,
capacitors, etc., until 1972 when its production and use were banned due to the fact that it is harmful to humans. The law requires that transformers, capacitors, and the like, that are alreadyin the market be brought to safe storage at appropriate business units.

1112

Environmental Performance

Responsible Care Report

Release of COD, Nitrogen andPhosphorus

Reduction of Air and Water Pollutants
We have long been measuring environmental loads on air and water, and taken various measures to reduce such loads.
Environmental impact on air and water quality remain well below control levels.

SOx Emissions
SOx* (sulfur oxides) are emitted from such
facilities as boilers, sintering furnaces, drying
furnaces, etc., where heavy fuel oil or coal is
combusted. In our case, most SOx emissions
are from power plant boilers. To reduce SOx
emissions, we have installed flue gas
desulfurization equipment in each boiler
system.

SOx Emissions
3,500(Tons)

2,890

3,000
2,500

2,260
1,830

2,000

2,010

1,880

We have a system in place to prevent waterpollution. Activated sludge process equipment
is in operation downstream of the process
where organic constituents are involved, toreduce COD* (Chemical Oxygen Demand).
We began to measure the release of nitrogenand phosphorus in fiscal 2004 because thesesubstances are subject to the total amountcontrolled under the Water Pollution Control
Law in that year. The release of thesesubstances is well below control levels.

COD Release(Tons)

200

180

150

129

128

00

01

0

90

Hazardous Air Pollutants Release

NOx Emissions
NOx* (nitrogen oxides) are also emitted fromfacilities such as boilers, sintering furnaces,
drying furnaces, etc., where heavy fuel oil orcoal is combusted. Most NOx emissions fromour facilities are from power plant boilers andcement sintering furnaces. We have alreadyinstalled denitration equipment and low NOx
burners. In fiscal 2004, NOx emissions slightly
increased due to the high operating rate offacilities.

Soot and Dust Emissions
Soot and dust* are emitted in the combustion
process of fuel and other materials in the power
plant boilers and cement sintering furnaces. We
have installed dust collecting facilities toreduce soot and dust emissions. In fiscal 2004,
soot and dust emissions slightly increased dueto the failure of some precipitators.

03

04 (Fiscal year)

NOx Emissions
12,000(Tons)

10,80010,00010,0009,700

10,40010,90011,500Of the 12 substances left to corporate selfmanagement under the Air Pollution Control
Law, four substances, including vinyl chloride,are produced by our company. We have set
ourselves a voluntary program to achieve thenecessary reductions.

8,000
6,000

Release of Substances Governedby the PRTR Law

4,000
2,000
0

90

00

01

02

03

04 (Fiscal year)

Soot and Dust Emissions
350
300(Tons)

275

250

254

272

235

214
179

200
150

0

13

Tokuyama Factory
5,280

Measured value

260

Legal regulation value

270

Measured value

21

Hazardous Air Pollutants Release

Vinyl chloride(Tons)

1,2-dichloroethane103

We compile reports on all PRTR substancesand file them as necessary in accordance with
the PRTR* Law, while at the same time, we
pursue reductions in releasing such substances.
In fiscal 2004, we had 24 substances that wewere required to report on. In fiscal 2004, thetotal release of those substances decreased to
68 tons, a reduction of 30 tons from theprevious year’s level because we implemented
measures to reduce the release of vinyl
chloride and 1,2-dichloroethane from the vinyl
chloride plant and environmental equipment
operated in good condition.

01

02

03

04(Fiscal year)

Factory Wastewater Release
25.0(Million tons)

20.0
15.0

80
60

17.3

18.8

21.1

19.8

21.2

14.3

One waste incinerator and three waste oil
incinerators are regulated by the Law
Concerning Special Measures against Dioxins.
The measured concentrations of dioxin inemission gas and wastewater are well below
control levels.

54

53

47

53

13

12

10

15

18

22

49
11

40
7
20
28
0

95

9

10

10

8

16

14

11

11

00

01

33
9

19

02

17
2
5
04 (Fiscal year)

03

Release of Substances Governed by PRTR Law

250
00

Dichloromethane(Methylene chloride)

21

Dioxin Measures
90

Chloroform

100

300

50

Factory Wastewater

Phosphorus

120

100

Our Tokuyama Factory releases some 20
million tons of factory wastewater each year
into public waters. We have a stringent
monitoring system to keep the hydrogen-ion
concentration (pH) and suspended solids within
their respective limits. The wastewater fromour Kashima Factory is treated at the terminal
treatment facilities.

04 (Fiscal year)

Legal regulation value

500
02

03

(kg/day)

Nitrogen01

02

Release of Nitrogen and Phosphorus

1,720

1,000

00

145

50

Item

90

135

100

1,500

0

134

Tokuyama alone(Tons)

Group companies

237

200

146

150

120
96

100

88

110

100

98

90

68
50

10.0
0

5.0
0

90

00

01

02

03

04 (Fiscal year)* SOx refer to sulfur oxides, which are produced primarily by the combustion of fossil fuels such as coal and oil. They are known to cause respiratory disorders and to be a causative agent ofacid rain.
* NOx refer to nitrogen oxides, which are included in the exhaust gases from automobiles and factories. They are a contributor to photochemical smog and acid rain.
* Soot and dust refer to fine particles of soot and dust contained in the emissions from smoke stacks.

98

00

01

02

03

04 (Fiscal year)* Group companies are included beginning from fiscal 2001.

* COD is the abbreviation for Chemical Oxygen Demand. It shows the amount of oxygen required to oxidize organic matter in the water and indicates the level of water contamination.
* PRTR, Pollutant Releases and Transfer Register, is a system for the compilation and publication of data concerning harmful chemical substances with respect to their sources, the amount of
their environmental emissions, and the amount released from factory in waste materials.

14

Environmental Performance

Responsible Care Report

Development of Environmentally-Friendly Products
and Environmental Technologies
One of the R&D areas on which we stress is the environment/energy area. In fiscal 2004, we continued efforts to develop
environmentally-friendly products and waste-recycling technology for creating a recycling society.

Establishment of a Closed System for Liquid
Developers

Development of a System to Make Photo
Resist Liquid Developers Nonhazardous

Material Recycling of Used Liquid Developers

Low-Cost Waste Liquid Treatment Method with Less
Environmental Impact

In collaboration with Sharp Corporation, we developed thematerial-recycling technology for used liquid developers at liquid
crystal plants. Liquid developers used at the Sharp Corporation’s
Mie plant in Taki-gun, Mie prefecture are concentrated andcollected by the special recycling equipment installed at the plant.
The collected liquid developers are recovered at a special plant at
our site and then reused by the Sharp Corporation’s Mie plant. Thisis the closed system for liquid developers for liquid crystal plants.
The liquid developers are diluted in the lithography process* forliquid crystal panels. Therefore, the volume of used liquid
developers increases as compared with that of undiluted liquid
developers. Thus, used liquid developers must be condensed andcollected. However, dissolved resist elements may generate a large
number of blisters. Even if antifoaming agents were used to restrain
blistering, recycling was difficult because many impurities were
contained. This system can concentrate and collect used liquid
developers using our uniquely designed recycling equipment andprevent blistering. Thus, no antifoaming agents are needed. As aresult, the system can recover liquid developers of the same quality
as new liquid developers.
We have been developing material-recycling technology for
liquid developers since 2000. We have constructed a pilot-scale
recycling facility in Shunan city in Yamaguchi prefecture and haverepeatedly conducted external valuations. According to thesevaluations, performances of recovered liquid developers arefavorable for use not only for liquid crystals but also forsemiconductors (from gamma ray to resist a maximum laser.)

We have succeeded in developing a system to make resist liquid
developers nonhazardous for small and medium-sized users forwhich the closed system for liquid developers is not suited. In thepast, waste resist liquid developers had to be incinerated orprocessed biologically. However, the system can turn waste resist
liquid developers into nonhazardous gas with the help of a special
catalyst after heating the developers up to 300°C to 400°C. If thesystem is installed on site, the treatment process may be made atlower cost than the conventional method and with lessenvironmental impacts. The system may satisfy the requirement for
denitrogenation that is expected to be imposed by a law or
regulation in the future. In addition, the system installed on site canreduce environmental impacts because environmental impacts
caused by logistics are minimized and less CO2 is emitted ascompared with the incineration method.

Liquid Developer Waste Treatment
Equipment (Model)

Closed System for Liquid Developers
at Sharp Corporation’s Mie Plant

Undiluted liquid
developers

Dilutionadjustment
equipment

Construction of a Demonstration Plant for New
Technology to Manufacture “Polycrystalline
Silicon for Solar Cells”
Photolithography
process
Used liquid
developers

Tokuyama(dedicated plant)

Used liquid
developers

Recyclingequipment
Sharp Corporation’s
Mie Plant

Realization of Energy Saving through Supply of Raw
Materials for Solar Cells
On February 15, 2005, we began to construct a demonstration plant
for a new technology to manufacture polycrystalline silicon forsolar cells (the VLD method) at Tokuyama Factory. Solar cells arein the limelight as clean energy. Facilities to manufacture
photovoltaic power generation systems are being increasingly
constructed around the world.
However, polycrystalline silicon as raw material for solar cells
is in short supply in the world. Therefore, a stable supply of it is* Photo lithography process: This is a process to transform thin film layers on glass substrates into pre-determined patterns in order to create a TFT (thin film transistor) for liquid crystal
panels. In this process, pre-determined patterns are created by the application of photo resists, exposure, developing (using liquid developers), etching and theremoval of photo resists.

15

urgently needed. We began to construct a demonstration plant(production capacity: two hundred tons a year) using the VLD
method to manufacture polycrystalline silicon for solar cells at ahigher speed and more efficiently than the conventional method.
Our goal is to supply samples by the beginning of 2006. Thus, We
contribute to the energy-saving initiative through the diffusion ofsolar cells. New Energy and Industrial Technology Development
Organization (NEDO) has granted a subsidy for the construction of
the demonstration plant.

Development of “Hydrocarbon-Based Electrolyte
Membranes” for Fuel Cells*

manufactured by our company’s electrolytic plant which is directly
supplied to fuel cells through the pipeline. The system can generate
power not exceeding 1kw and supply hot water at about 60 °C.
The experiment will be conducted for one year. From this point
forward, the performance of hydrogen fuel cells and the effect of
CO2 reduction will be examined.
A pilot plant that
supplies hydrogen
manufactured by anelectrolytic plant
directly to fuel cells
through the pipeline

Realization of a High Level Power Generation Efficiency at Low Cost
Direct methanol fuel cells (DMFCs)* are expected to become thenext generation power source for portable terminals, including cell
phones and laptop PCs, replacing lithium ion batteries. We havedeveloped hydrocarbon-based electrolyte membranes* with low
methanol permeability for DMFCs.
At present, electrolyte membranes are mainly fluorine-based
ones. But their problems include high cost and a decrease in power
generation efficiency due to methanol crossover*. In the case ofhydrocarbon-based electrolyte membranes developed by ourcompany, the cost is 1/5 or 1/10 of that of fluorine-based
electrolyte membranes and methanol permeability is about 1/10.
Our hydrocarbon-based electrolyte membranes have achieved apower generation efficiency of 50mW/cm2 or more, the highest
level for hydrocarbon-based electrolyte membranes. In addition,
we have developed dedicated binding resins that facilitateprocessing into MEA (membrane-electrode assembly). We aim tomarket dedicated binding
resins and electrolyte
membranes in 2006. In
addition to uses for
DMFCs, we areresearching electrolyte
membranes for carmounted and home
fuel cells.

“Shanon” Plastic Window Sashes (Shanon Corporation)
High-performance windows contribute to home energy conservation
Shanon Corporation, one of our group companies, manufacturesand sells “Shanon” plastic window sashes, which provide an
excellent airtight quality, heat and sound insulation, and prevent
moisture condensation.
With the Kyoto Protocol on preventing global warming in
effect, our country is obligated to achieve a 6% reduction ofgreenhouse gas emissions over average 1990 levels between 2008
and 2012. Although reductions are being steadily achieved in theindustrial sectors, household emissions are on the rise and need tobe addressed through effective measures. In this regard, plastic
window sashes are receiving attention due to their ability toconserve energy. A simulation run by the “Plastic Window Sash
Promotional Committee” indicates a significant improvement ininsulation efficiency or some 40% reduction in CO2 emissions canbe achieved per house if single-glazed aluminium window sashes
are all replaced with double-glazed plastic window sashes fittedwith a low emission glass. Shanon’s plastic window sashes are
drawing attention as a promising material for use in the preventionof global warming.

MEA using electrolyte
membranes for DMFCs

Demonstration Tests for “Hydrogen Fuel Cells”
Power Generation and Hot Water Supply using a Cogeneration
SystemOn December 22, 2004, a demonstration plant for hydrogen fuelcells started trial operation at Tokuyama Factory. This operation
was made under the “Hydrogen Frontier Promotion Initiative”
implemented by the Yamaguchi prefectural government. The aimof this initiative is to help prevent global warming and help
develop a new environmental industry by exploiting the country’s
largest hydrogen supply capability of the Shunan Industrial
Complex. We acknowledge its significance and support it.
The demonstration plant is a cogeneration system consisting offuel cell and hot water storage tank units, and hydrogen

Plastic window sashes, “Shanon,” for energy saving houses* Fuel cell: A chemical battery to generate electricity via a chemical reaction between hydrogen inside the fuel cell and oxygen in the air in contrast with electrolysis of water.
* DMFC: Direct methanol fuel cell that converts fuel methanol into hydrogen using a catalytic electrode in the fuel cell.
* Electrolyte membrane: Membrane to selectively conductions.
* Methanol crossover: This is a phenomenon that power generation efficiency decreases as methanol permeating electrolyte membrane burns at opposite poles.

16

Environmental Performance

Responsible Care ReportComprehensive Safety Management of Chemicals
We implement comprehensive safety management of chemicals in the strictest manner throughout their entire life cyclefrom R&D to disposal. We are making every effort to conserve the environment and secure people’s health and safety.

Data Acquisition and Analysis on the Safetyof Chemical Substances
We assess the safety of chemical substances by acquiring andanalyzing safety-related data. Such data is used in preparing safety
information for our products, waste materials, etc.
In fiscal 2004, we assessed chemical hazards contained in raw
materials, reviewed the handling method, and provided
information.

Risk Assessment and Management of Chemicals
We are conducting activities to prevent environmental pollution bymonitoring the concentration of chemicals in effluents and gas
emissions. In addition, we simulate concentration distribution forchemicals, and analyze their detailed behaviors.
Risks are characterized based on a combination ofconcentration data and safety data, and the characterized results arereflected in enhancing our equipment safety measures and handlingprocedures, and in educating workers involved in handling
products and waste. These efforts eventually help us improve our
product safety and provide accurate information to our customers.

Participation in HPV Program
The HPV Program (High Production Volume Chemicals Program)is an international program to conduct safety assessment ofchemicals that are manufactured in no less than two countries witha volume of 1,000 tons or more, and OECD (Organization for
Economic Co-operation and Development) lists as priority
chemicals (about 1,000 chemicals). We actively participate in the
HPV Program in regards to 17 chemical substances and conductsafety assessments of them.
We were the leader of an international consortium for the
calcium chloride HPV, and submitted a safety assessment report toOECD in October 2002. The report was successfully accepted byOECD. At present, our company is conducting safety assessments
as the leader of an international consortium for TMAH
(tetramethylammonium hydroxide) that is used as a liquid
developer in the photo lithography process for semiconductors andliquid crystal panels. This assessment report is scheduled to be
discussed at an international meeting to be held in 2006.

Estimated concentration distribution of dichloromethane in the air based on PRTR
data and estimated release of non-PRTR chemicals in 2003 (using AIST-ADMER
ver.1.5 of National Institute of Advanced Industrial Science and Technology)

Assessment Flow Diagram for Ensuring Safety and Environmental Preservation

Analysis of organic matters in wastewater

Assessment
stages

Product assessment

Researchcommenced

Development group leaders(Primary assessment)

Development
commenced

R&D department heads(Secondary assessment)

Commercialization
under study

Product assessment committee(Tertiary assessment)

Safety andEnvironmental assessment

Labeling
assessment

Labeling Assessment
Subcommittee(Prototypes)

Safety and Environment
Assessment Subcommittee(Basic Plan)

Product equipment
being designed

Safety and Environment
Assessment Subcommittee(Designing)

Pre-marketing(pre-operation)

Safety and Environment
Assessment Subcommittee(Pre-operation)

Post-operation

Report on actual conditions(Environmental)

Labeling Assessment
Subcommittee(Products)

Assessment of Products and Labeling
We appropriately assess the safety of both the chemicals andequipment units that we manufacture, in stages from research anddevelopment through commercialization. We made 49 assessmentsof this kind in fiscal 2004.
We also carry out labeling assessments of our catalogues,
MSDSs,* and other technical documents. In fiscal 2004, we
conducted about 300 labeling assessments. Labelings and packagesof our products, prototypes and sample products are all assessed,
and inappropriate representations are corrected.

Safety Management of Waste Materials
Waste materials are handled in the same way as our products. We
have prepared the necessary MSDSs for waste materials anddistribute them to waste handling contractors and distribution
agents to ensure safe handling and transportation of such wastematerials. Also each driver is made to carry a yellow card prepared
for the waste materials in case an incident occurs duringtransportation. We have so far prepared 66 MSDSs for wastematerials.

Provision of Information on Our Chemical
Products
We provide MSDSs for all our products and prototypes to ourcustomers and distribution agents.
MSDSs are prepared for about 400 types of products. Of these,
MSDSs for 32 types of products that are transported in large
quantities and heavily used by our customers are publicized on ourcompany’s Web site.
We also have each driver carry a yellow card* that is preparedwith emergency instructions for use if an incident occurs duringtransportation. MSDSs and yellow cards on our products and wastematerials are also posted on our intranet Web site so that this typeof safety-related information can be shared.

MSDSs for our major products are also available on our Web site(in Japanese only)

Promoting Safety and Environmental Management in the Distribution Process
Providing Our Distribution Agents with Guidance and Education
on Safety Management
We regularly hold local safety meetings with our nation-wide
distribution agents to whom we consign product transportation
services. We conduct logistics safety inspections for logistics
companies to help improve their management level. Within thepremises of our Tokuyama Factory, our safety specialists makecontinual inspections and visit cargo carriers in their berths,
providing safety guidance as necessary in cooperation withlogistics companies.
We also have a range of emergency measures in place. For
example, each truck driver is required to carry a yellow card andappropriate emergency tools, enabling suitable and speedy actions
based on the emergency measures specified on the card if an
incident occurs during land transportation. An emergency networkand related organization also form part of our safety procedures.
Distribution Risk Assessment
We conduct risk assessments on the transportation of hazardous
materials. (Means of product transport, safety of trucking routes,
emergency measures to be taken in the event of an accident, etc.,
are all examined at Transport Safety Review Meetings). We
provide training for dealing with accidents during thetransportation.
When a logistics facility is newly constructed or enlarged insideor outside our factories, facility safety assessment is conducted.
Crisis Management System
To deal with potential crises in logistics operations, we haveestablished emergency response criteria and can ensure that disasterprevention equipment is always ready for use. In the Tokuyama andTokyo districts, we have established a mutual disaster prevention
assistance system with logistics companies.
Environmental Preservation Measures and Energy Conservation
As part of environmental preservation measures, we provide
thorough instructions to trucking companies with regard to meetingthe controlled exhaust emissions from diesel-powered vehicles. We
also encourage energy conservation efforts through the introductionof a mileage log management system.
Monthly factory
premises safety patrols(Tokuyama Factory)* MSDS is the abbreviation for Material Safety Data Sheet. It is a document that contains information such as the name of the chemical material, appropriate safety and emergency measuresrequired, etc., related to that material, and is intended to ensure safe handling by providing information about any hazards related with the specific material.
* The “Yellow Card” is the common name of a card prepared for emergency use, which explains to the truck driver or his representative, fire crews, or police what to do in the event of an
accident involving chemicals or high pressure gases during transportation.

17

18

Relationship with Society

Responsible Care Report

Tokuyama’s Compliance Vision

Reliable Company

Compliance System

Stakeholders
We are making every effort to enhance compliance, strictly protect information security and improve our risk
management system in order to fully perform corporate social responsibility (CSR) and become a company on whichsociety can rely.

Improvement of the Compliance System
We are committed to the fact that one of the social responsibilitiesof our company as a manufacturer is to develop and manufacturesocially useful products by paying due attention to theirenvironmental impact and safety, and to supply them to ourcustomers. Our basic management policy is to place a priority oncompliance as part of CSR.
In July 2003, we revised the “Tokuyama Code of Behavior” thatwas established in 1997. Under the revised charter, we improved
the compliance system. For example, we created the compliance

Local
communities Shareholders

Informers/advice seekers

Trading
partners,
includingcustomers

Employees

Helpline

committee, nominated an Officer in charge of compliance andestablished a helpline. The compliance system is applicable to allgroup companies. In March 2004, we established the “Tokuyama
Behavior Guidelines” to enhance all employees’ awareness forcompliance.
The compliance committee is making efforts to establish thebasic compliance policy of our company and formulate a proper
system, and aims at providing solutions to problems pointed out
through the helpline as soon as possible.
Recognizing that our corporate culture plays the most importantrole in promoting compliance, we are making efforts to maintain atransparent work environment at all times.

Socialresponsibilities

Instructions

Reports

Compliance
Committee

Compliance2. Compliance
We will comply with laws, regulations and rules. We will never succumb to antisocialgroups that will threaten the order or security of civil society.

3. Responsible Care
We will develop and manufacture socially useful products by paying attention to theirsafety, and provide them to society in order to secure the confidence of ourconsumers and customers.
We will be voluntarily and actively engaged in activities to help conserve theenvironment from broad viewpoints of the global environment, resource recycling,etc.

Instructions

Board ofAuditors

Open corporate culture

Company-Wide Efforts

We will compete with rival companies in a fair, transparent and liberal manner.
We will maintain sound and normal relationships with politicians and administrative
organizations.

Board ofDirectors

Communications

We are actively promoting the introduction of IT with an aim ofreforming business operations of all group companies. In themeantime, we fully understand that the importance of information
security will increase as employees are increasingly dependent on
information and networking systems as a result of the diffusion of
IT. Therefore, we have enhanced efforts to ensure that we canutilize “information” as an important asset while protecting it in aproper manner.
In 2001, top management declared that measures to protect
information security should be implemented with the participation

1. Fair Business Operations

Reports

Communications

Corporate activities

Protection of Information Security

Tokuyama Code of Behavior

Information, reports, etc.

Auditing Dept.

of all employees. As a result, the “Information Security
Committee,” which establishes and implements overall andparticular measures, was formed. The “Information Security
Committee” has established the “Information Security Policy”
containing overall security measures with an aim of actively
utilizing information assets held by our company (information andthe information system) while protecting their security. It has also
finalized the basic policy of information security for Tokuyama
group companies and promotes an educational campaign.
Each department of Tokuyama implements particular activities
in accordance with the common rules contained in the Information
Security Policy that was established in March 2002. Each groupcompany has established various regulations in view of theInformation Security Policy. Thus, Tokuyama and its groupcompanies are making efforts to enhance information security.

4. Communications

5. Social Contributions
As a “good corporate citizen,” we will conduct social contributions in a positive
manner.
We will respect local cultures and customs in foreign countries, and promote business
operations that may contribute to the development of local communities.

Chairperson
Information Security Secretariat

19

System control manager

Member in charge of affiliates

Member in charge of financeMember in charge of manufacturing

This is a pamphlet entitled “Tokuyama Code of
Behavior Guidelines” that was distributed to all
employees. Based on the “Tokuyama Behavior
Charter,” these guidelines specify matters to beobserved by each employee and the excerpts ofmain laws and regulations.

Member in charge of R&D

7. Roles of Top Management

Member in charge of sales

We will make an effort to secure a safe, less inhibited and comfortable work
environment in which our employees can realize spiritual and physical affluence, andthe personality and individuality of each employee are respected.

Member in charge of general affairs andpersonnel management

System control manager

6. Corporate Culture

Top management must understand that their role is to comply with the philosophy ofthis charter, take the initiative, make an effort to improve the internal system to collectinternal and external opinions, and ensure the strict observance of corporate ethics.
If a situation infringing any of the provisions of this charter takes place, top
management must immediately disclose information to society in a proper manner andperform accountability. In this case, top management must investigate the causes ofsuch a situation and take countermeasure to avoid repetition, as well as takedisciplinary actions against persons involved, including themselves, after having
identified responsible persons.

Information Security Committee

Director in charge ofBusiness Division

Information Security
Audit Group
Information Security
Secretariat

Information Security Management Officer

General Manager
Manager,
Assistant Manager
Person in charge of
departmental systems

Company-wide management

Information Security
Management Structure

Information Security Manager

Information Security Staff
Person in Chargeof Systems

Departmental management

Organization of the Information
Security Committee

We will enhance communications with various stakeholders in society, including ourshareholders, through proactive and fair disclosure of information.

20

Relationship with Society

Responsible Care Report

Enactment of the “Personal Information
Protection Law”
We have been giving weight to privacy protection. When the
Personal Information Protection Law was enacted in April 2005,
we recognized anew that we have an obligation to protect personal
information as part of “CSR,” and established the Personal
Information Protection Management System.
In particular, we have nominated a Personal Information
Protection Promotion Director who works as a superintendent incharge of personal information protection management. We havealso established the “Personal Information Protection Promotion
Committee,” the Secretariat and the Inquiry Desk. Thus, we haveestablished a system to facilitate the enhancement of employees’
awareness of the importance of personal information prevention
and compliance.
A Personal Information Management Leader is nominated foreach department. The Leader promotes adequate management andutilization, and implements educational activities for employees inclose coordination with the Personal Information Protection
Promotion Director.
The in-housemagazine carries anarticle entitled“Lecture on the
Personal Information
Protection Law” withan aim of enhancing
employees’
understanding andawareness of thelaw.

Organization of the Personal Information Protection Promotion Committee
Secretariat

Director (Officer)

Director of Secretariat:
General Manager, Strategic Planning Dept.,
Corporate Planning Div.

Deputy Director (Officer)

Inquiry Desk

Secretariat:
General Affairs Dept.
Corporate Communications Dept.
Group Companies Planning Dept.
Legal & Credit Management Dept.
Personnel Dept.
Factory Administration Dept.
Strategic Planning Dept., Corporate Planning Div.

General Affairs Dept. (in Shibuya)
Corporate Communications Dept.

Personal Information Management Leader(Manager of each Department)

Enhancement of the Crisis Management System
Since corporate risks are diversified, corporate crisis management
is increasingly important from the standpoint of CSR. If a gravecrisis threatening the survival of our company should take place,such as a “security environment crisis,” “products’ crisis” or“human life crisis in foreign countries,” an emergency headquarters
headed by the president will be immediately established. The
emergency headquarters will conduct crisis management operations
across the company with an objective of restoring normal business
operations as soon as possible. In fiscal 2004, we reviewed theinternal regulations and enhanced the crisis management system.
On January 17, 2005, the 10th anniversary of the great Hanshin
and Awaji earthquake, we invited an external consultant to organize
a crisis management top seminar. Since the risk of a large-scale
earthquake, such as a metropolitan earthquake, the NankaiTonankai earthquake or the Tokai earthquake, has increased

21

recently, we have recognized anew the importance of crisis
management. In fiscal 2005, we will further strengthencommunication tools in case of emergency and conduct internal
drills to ensure the effectiveness of the crisis management system.

Relationship with Employees
We review the personnel management system on an as-needed basis and make every effort to improve the work
environment so that all employees may exhibit their abilities and willingly engage in their work.

Personnel Management System to Maintain andDevelop Dynamism
Our personnel management system is based on the principle ofcapability development, and attaches importance to thedevelopment and utilization of human resources. The system issimilar to an ability-based grade system that is adopted by many
enterprises. We review the personnel management system fromtime to time in order to meet ongoing changes or needs (of both
employees and our company) while making the best use ofprinciples of the excellent system.
In fiscal 2002, we expanded the course selection scheme andrevised the personnel evaluation and reward scheme for generalemployees. In fiscal 2005, we introduced the annual salary scheme
for managers. This annual salary scheme is intended to reformmanagers’ attitudes toward management and businessperformances, to activate the organization, and to improve
corporate financial performances. With the annual salary scheme,
we intend to abolish seniority or personal factors, and pay
compensation to managers on the principle of “work-and-you-willbe-rewarded” depending on their duties, roles and achievements.

Diversified Work Styles
1. For Older Workers
To respond to the gradual postponement of the pensionable age forold age welfare annuities, and to help transfer the skills of retiring
baby boomers to younger generations, we created a re-employment
scheme for retired employees in fiscal 2001, ahead of othercompanies in the same industry. Although this scheme wastemporarily suspended due to poor financial performances, we
restarted it in fiscal 2005.
2. For Working Women
As of April 2005, there are about 210 female employees at ourcompany. Of these employees, about 90 are married and 60 of them
have children. At our company, comparatively speaking, many

married women continue to work. The figure mentioned below
indicates how many married women have taken childcare leave inrecent years.
In fiscal 2003, we created the “Gender-Free Committee,” anexpert committee consisting of representatives from the employer
and employees. The Gender-Free Committee makes an effort torealize equal employment opportunities for men and women,
prevent sexual harassment, and promote affirmative actions. From
this point forward, we will make every effort to create a safe
working environment for our female employees.
3. Employment of Physically-Challenged Individuals
In fiscal 2004, the employment rate for physically-challenged
individuals was 1.44%, regrettably falling short of the legal
employment rate. Although difficult factors exist because ourcompany is a manufacturer, we will make efforts to employ
physically-challenged individuals.

Promotion of Internal Recreational Activities
We are promoting recreational activities for better communications
and health with an aim of creating a “cheerful and lively
workplace.” The objective of these recreational activities is toencourage communication among employees, which otherwise
tends to be minimal in the IT environment, and to help create astress-free and vibrant workplace. Employees in charge ofrecreational activities mainly plan and conduct various activities atfactories, divisions, branches and offices.

A “Softball Game”
at the Tokuyama
Factory

Number of Female Employees Who Took Childcare Leave(Unit: Person)

15

15

A “Bowling
Competition” atthe Hiroshima
Branch

13
10

11
9

9
5

3
0
Crisis management top seminar (held on January 17, 2005)

99

00

01

02

03

04 (Fiscal year)

22Relationship with Society

Responsible Care Report

Process Safety and Disaster Prevention/
Occupational Health and Safety

Commitment to Occupational Health and Safety
Safety and Health Management System is Strictly Implemented

Safety is a basic factor of business activities, and is important for achieving a harmonious coexistence with society. All
three of our establishments maintain excellent safety performances through their intensive efforts in the fields ofprocess safety and disaster prevention/occupational health and safety.

Commitment to Safety and Disaster Prevention
Comprehensive Disaster Prevention and Safety Activities

Each establishment of our company carries out disaster prevention
drills each year. Tokuyama Factory has a self-defense disasterprevention unit for the industrial complex, and conducts
comprehensive, joint disaster prevention drills in collaboration withneighboring enterprises and related public authorities on theassumption that various accidents or disasters have taken place. In
January 2005, we conducted a drill combined with an annual firebrigade review. The drill was opened to the neighboring selfgoverning bodies for the first time. A total of 400 people, including
participants and visitors, participated in the drill.
We are now increasing the total number of hours without
disaster by “creating a workplace where any unsafe actions orconditions are never overlooked” and promoting the concept of“think-about-safety” and “see-about-safety” before starting anactivity. Our safety activities include workplace safety meetings,
safety patrols, hazard prediction activities, avoidance of carelessactivities, 5-S activities, verbal safety checks (pointing at the item
to be checked and voicing its name), etc.

voluntary maintenance activities in our operational management
sector and by reinforcing the specialized maintenance skills in ourfacilities management sector. These efforts have enabled us tosteadily reduce the number of sudden failures. Our cement factoryis running a TPM* program and has won the TPM ExcellenceAward.
On-site inspection
for high-pressure
gas certification(June 16-18, 2004)

Safety Inspection

We conduct inspections for all of our facilities to identify the statusof Process Safety and Disaster Prevention/Occupational Health and
Safety. If the inspection identifies any incidents of nonconformance,these are pointed out and necessary guidance is given for corrective
actions. The results of inspections are reported to the Safety
Measures Committee, and will be reflected in the action policy forthe following fiscal year.

Safety inspection at Kashima Factory (October 26, 2004)
Annual ceremony cum internal comprehensive disaster prevention drill(held on January 14, 2005)

Commitment to Voluntary Maintenance

We are going to get our facilities designated as a “Voluntary Safety
Certified Facility” under the High Pressure Gas Control Law. In
fiscal 2004, we newly acquired a “voluntary safety certification”
for 10 facilities, including the vinyl chloride monomer facility. In
addition, we are making an effort to acquire the qualification of the
Administrator of Accredited Completion Inspections in 2005.
As a result of the revision of the High Pressure Gas Control
Law, our internal regulations have clearly indicated that thepresident shall have a final responsibility for safety management inorder to clarify the importance of the role of top management.
We are committed to stable plant operations by promoting

Total Zero-Accident Hours Topped the 10 Million MarkIn August 2004, Tokuyama Factory achieved a record of total zeroaccident hours of 10 million for the first time. At present, allemployees of Tokuyama Factory are making every effort to achieve
the Ministry of Health, Labor and Welfare’s Category III zeroaccident record (12.2 million hours). Kashima Factory has had zeroaccident for 19 years since its start-up. Tsukuba ResearchLaboratory can also boast of zero accidents for the 15 years since it
was established. Our company’s three key establishments are all
making efforts to continue their excellent safety performances.
Our investment for process safety in fiscal 2004 amounted to
380 million yen and included items of emergency equipment for use
in the event of a disaster, emergency power supply units, etc.

* TPM is an abbreviation for Total Productive Maintenance. It is intended for achieving zero-losses with the participation of all employees, in pursuit of maximized production efficiencies, byimplementing systems that prevent any losses due to accidents, defective products, equipment failures, etc.

23

Each establishment has established a Safety and HealthManagement System, having commenced its operation in fiscal
2003. This system provides the means to voluntarily andcontinually perform safety and health management by repeating the
PDCA (Plan-Do-See-Act) cycle.
In fiscal 2004, Tokuyama factory expanded the scope of
application of this system to include its administrative division.
The progress of these activities was monitored by an internal audit
to improve the level of safety and health management.
In fiscal 2004, we invested 120 million yen as work
environment improvement expenses.
Safety Education to Improve Knowledge and Know-how ofHazard Prediction Activities

To promote safety awareness and knowledge among our company
employees and subcontractors, we are providing in-house
workshop, safety meetings, hazard prediction activities, factory
visitor instructions, and so on.
To prevent occupational accidents of employees ofsubcontractors, we have established a disaster prevention council
with subcontractors. We are promoting activities in close
coordination with these subcontractors. The aim of these activities
is to enhance safety patrols and meetings so that all employees ofcontractors may share the same information and improve safetyknowledge and know-how.

Accident Severity Rates*
0.25
Total industries

Chemical industry

Tokuyama

0.2

0.15

0.1

0.05

0
95

96

97

98

99

00

01

02

03

04 (Fiscal year)* Accident Severity Rate refers to the number of work days lost in 1000 cumulative work hours,
and represents the severity of industrial accidents.

Rates of Lost Work Time Injuries*
2.5
Total industries

Chemical industry

Tokuyama

2.0

Maintenance of a Comfortable Work Environment

Aiming to create pleasant working conditions, we continue tomonitor the workplace environments where specified chemicals
and organic solutions are being handled, and continue to improve
the work procedures and equipment involved. These efforts haveenabled us to maintain all of our worksites in Control Category I,*
as verified by our workplace environment inspections.

1.5

1.0

Health Promotion Based on THP (Total Health Promotion)

To promote employee well-being, we actively adopt newtechnology for cancer examinations, which is not required byrelated laws, at regular health examinations.
We have also organized a “THP-based Health Promotion
Committee” in line with the THP Guidelines recommended by the
Ministry of Health, Labor and Welfare, under which a variety ofhealth promotion programs are being conducted. Specialized
subcommittees for health maintenance and promotion include theMental Heath Subcommittee, the Education Subcommittee, theLifestyle Habits Subcommittee, and the Publicity Subcommittee.
We have organized a mental health workshop for managers. We
have also commissioned a specialized organization to provide
advice to managers, if necessary. Based on the results of healthexaminations, we provide employees with guidance on nutritionand physical exercises so that they may improve the condition of
their health.

0.5

0
95

96

97

98

99

00

01

02

03

04 (Fiscal year)* Rate of Lost Work Time Injuries refers to the number of workers away from work due toworkplace injuries in 1 million cumulative work hours, and represents the frequency of industrial
accidents.
Source: “Survey on Industrial Accidents” of the Ministry of Health, Labour and Welfare

THP-based Activity System
THP-based Health
Promotion Committee
Administration: Health Management Center

Factories
Recreational
activities

Specialized Subcommittees for
Health Maintenance & Promotion

Publicity
Subcommittee

Mental Health Subcommittee
Education Subcommittee
Lifestyle Habits Subcommittee* Control Category I refers to a condition in which an atmospheric concentration of hazardous substances is below the control level in most part (over 95%) of the unit work area. There arethree classes of Control Category: Category I, II, and III, of which I is the most desirable.

24

Relationship with Society

Responsible Care Report

Harmonious Coexistence with Communities and Society
We aim to achieve a harmonious coexistence with communities and society by enhancing communications with local
residents through RC dialogues, active participation in local environmental conservation activities or events, andtransparent and rapid provision of information.

Communications with Communities and Society
Tokuyama Science Foundation
This foundation was established in 1988 with the aim of achieving
an ideal of creating a new science as part of the project forcommemorating our company’s 70th anniversary. The objectives ofcreating the foundation are to promote science and technologies
and to contribute to the development of society and the economy
and the improvement of people’s lives through the grant ofsubsidies to studies on new materials and related matters in thescience and technology sector, and the diffusion of and awarenessbuilding for new materials.
Each year, the foundation grants subsidies to young researches
in the field of study on new materials, and conducts various
fostering projects, including “international exchange assistance,”“international symposium assistance,” and “science and technology
awareness building assistance.” There were 238 studies in total towhich subsidies were granted, and the total amount of subsidies
stands at 460 million yen (as of March 2005).

Communications between Tokuyama Factoryand Local Communities◆ Every year, “RC dialogues with community people” areorganized with the aim of increasing community awareness ofenvironmental conservation efforts being made by companies in the
Shunan district. In fiscal 2004, we acted as the organizer of thecompanies and held a presentation, panel discussions andinformation exchange.
In fiscal 2004, Tokuyama Factory organized “RC dialogues
with community people” by itself for the first time. Twenty-fivepeople from local communities (community associations)participated in the RC dialogues. At the dialogues, opinions were
exchanged under the theme of “Efforts for Environmental
Conservation and Process Safety.” We will continue this kind of“RC community dialogue” sponsored by Tokuyama Factory (on August 19, 2004)25

RC dialogues with individuals from the community.
◆ We have donated a bookrack to a total of 53 elementary andjunior high schools in Shunan city. Every year, we present bookcoupons to these schools. We have been doing this since 1978 in
the hope that many children will be encouraged to read, despite thecurrent general trend of children not wanting to read. The
bookracks are referred to as the “Mikage Library.”Thank-you letters from children“Mikage Library”◆ Shunan City is developing its “Clean Network Promotion
Activities” to improve the local environment. Tokuyama Factory
participates in these activities and carries out a “CleanupCampaign” once a month to clean around its vicinity.
◆ Each year we also
actively participate inforestry maintenanceactivities, called“Activities forCommunity-Forest-Water
Interaction,” organized tohelp preserve the forestsin the community area. In
Forest maintenance activities of the “Activities
fiscal 2004 (the 8th year), for Community-Forest-Water Interaction”
130 people participated.
(November 13, 2004)◆ We aim at being acompany open to society.
Anyone interested canvisit us for a factory tour
by making an applicationin advance. We had some
2,700 visitors to our
Tokuyama Factory infiscal 2004, taking thetour of the cement plant
Representatives from the Chamber ofwhere the waste
recycling facilities are in Commerce and Industry in Masan City, theRepublic of Korea, visited one of ouroperation.
company’s plants. (May 20, 2004)◆ There were elevenenvironmental complaints in fiscal 2004, five of which wereconsidered attributable to our Tokuyama operations. We
investigated the causes and implemented the necessary measures,
including equipment repair.

Communications between Kashima Factory and
Local Communities◆ We have designated May 30 “Zero Refuse Day,” and carry out
coordinated cleaning workinside and outside Kashima
Factory every year.
◆ As a member of the
Hasaki District Companies
Network (Hasakiren), we
undertook odor patrols andcoordinated cleaningaround the industrial
complex.
◆ In fiscal 2004, we
Coordinated cleaning work
participated in the RC
community dialogues as the organizer of the Kashima-District RC
Activity Network. We are determined to continue promoting theenvironmental management activities to strengthen harmonious
coexistence with local communities.
◆ There was a complaint from local residents to Hasakiren that
offensive odors were experienced in the northeast district of thecomplex. Although we eventually found that we were notresponsible for that incident, our Administration Section took therole of coordinating with the parties concerned.
◆ There were three inquiries from the waste material handling
contractors, which were all properly dealt with through adequate
communications.

Environmental Communications
We are enhancing the provision of information and mutualcommunication to ensure that our environmental activities are
known to many stakeholders.

Environmental Report
Every year since 1997, we have issued
an “Environmental Report” (bothJapanese and English editions) to reporton and summarize our stance on
environmental activities of the previous
year. The reports are available on our
Web site.

Exhibition at the Environmental Event
Fine Tech Japan

We participated in the 14th Flat Panel Display Manufacturing
Exhibition (commonly known as “Fine Tech Japan”) that was heldat the Tokyo Big Site from
June 30 to July 2, 2004.
We exhibited functional
cleaning agents based on
environmental
conservation technology,
and introduced our
proposal on the technology
to detoxify TMAH as adeveloper.
Tokuyama’s booth at Fine Tech JapanNEW Environmental
Exposition

T&T Corporation, as our group company, and we jointly
participated for the first time in the “2004 NEW Environmental
Exposition” held in Osaka from September 1 to 4, 2004. T&T and
we introduced soil treatment technology and acceptance of wastematerials, respectively, and gained popularity.
Yamaguchi Iki-Iki Eco Fair

We introduced our environmental activities, including “recycling
waste materials using the cement kiln,” using panels and videos ata booth at an environmental
event titled the “Yamaguchi
Iki-Iki Eco Fair” organizedby the Yamaguchi
prefectural government(October 16-17, 2004). This
enabled us to improve ourcommunication withcitizens.
International Fuel Cell
Exhibition

2004 edition

Provision for Environmental Informationon the Web Site
Our Web site introduces “basic
policy” and “compliance.” Detailed
information about the “waste
recycling business” and “MSDS” as
our main products is available in thebusiness introduction corner. The
newly established “Environment”
corner introduces our environmental
activities, including “zero emission,”“energy saving and anti-global warming measures,” “reduction in
the discharge of air and water pollutants” and “environmentallyfriendly products.”

We exhibited electrolyte
Exhibition at the “Yamaguchi Iki-Iki Eco Fair”
membranes and membraneelectrode assemblies, which
are the main parts of fuelcells, at the 1st International
Fuel Cell Exhibition held at
the Tokyo Big Site (January
19-21, 2005). More than
1,000 people in total visited
our booth over the threedays.
We exhibited electrolyte membranes,
membrane-electrode assemblies, etc. atthe 1st International Fuel Cell Exhibition

Top page of the “Environment”
corner26

Site Report

Responsible Care Report

Hazardous air pollutants: In Fiscal 2004, a change of processing
solutions from dichloromethane to water in part of the overall
process contributed to a reduction in the release ofdichloromethane per unit production. However, the gross release of
the substance into the air increased by 40% over the previous year
due to an increase in production (at the Kashima Plant of theTokuyama Dental Corporation). We will continue efforts to reduce
the release of dichloromethane.
Volume of final disposal: In Fiscal 2004, the volume of final
disposal decreased to 29 tons (–33%) due to recycling of inorganic
sludge and material recycling of metals.
Process safety: All operators participated in an experience-based
seminar on bulb operation to improve their capability to predict
hazards and prevent careless work.
Occupational health and safety: We were able to maintain ourwork environment as excellent in Control Category I and were
granted a certification of “Certified Facility under the Comfortable
Workplace Promotion Program” from the Ibaraki prefectural
government.

Kashima Factory

Others1,2-dichloropropane

Chloroform

Dichloromethane

Toluene

Chloromethane

Cresol

1,2-dichloroethane

Vinyl chloride

Higashi Plant

100(Tons)

95.0

92.4
90

80.0

80

Tokuyama Plant

84.1

70

Location: 1-1, Mikage-cho, Shunan City,
Yamaguchi Prefecture
Number of Employees: 1,517
Area of Factory : 1,430,000 m2 (gross area)(Tokuyama Plant, Nanyo Plant
and Higashi Plant)
Executive Managing
Main Products
Director andCement, inorganic and organic chemical
Tokuyama Factory
products, polycrystalline silicon, silica, vinyl
General Manager
chloride, etc.
Hisami Tanimoto

65.6

60

Location: 26 Sunayama, Hasaki-machi,
Kashima-gun, Ibaraki Prefecture
Number of Employees: 84
Area of Factory : 101,000 m2

50
40
30
20
10
0

00

Facing the Tokuyama bay, the Tokuyama Factory is conveniently
located for sea transportation of raw materials and products. The
cement factory contributes to recycling waste materials and byproducts. Electric power and steam are supplied from our own
power generation plant.

01

02

03

04 (Fiscal year)

LegallyAmount released
Amountspecified To To public
substance atmo- water To soils Subtotal transferrednumber sphere systems
0.0 23.3

Chloroethylene (Vinyl chloride)

77

9.2

Dichloromethane (Methylene chloride)

145

3.6

1,2-dichloropropane

135

4.6

Chloromethane (Methyl chloride)

96

3.5

Toluene227

2.6

Chloroform

95

1.3

0.0

0.0 17.0

0.0
0.1

0.0

9.2

0.0

Volume of Finally Disposed Waste, Utilization Rates, etc.

0.0

0.0

3.6

0.0

10,0000.0

0.0

4.6 186.0

0.0

0.0

3.5

0.0

0.0

0.0

2.6

79.9

0.0

0.0

0.0

0.5

0.0

0.0

0.5

2.3

43

0.0
0.0

0.0
0.0

0.0
0.0

0.0
0.0

0.0
0.2

Vanadium pentoxide

99

0.0

0.0

0.0

0.0

0.0

Carbon tetrachloride

112

0.0

0.0

0.0

0.0

0.0

Copper and its water-soluble salts(excluding complex salt)

207

0.0

0.0

0.0

0.0

0.0

Hydrazine

253

0.0

0.0

0.0

0.0

0.0

Hydrogen fluoride and its water soluble salt

283

0.0

0.0

0.0

0.0

0.0

Benzene

299

0.0

0.0

0.0

0.0

0.0

Boron and its compounds

304

0.0

0.0

0.0

0.0

0.0

1,2-epoxypropane (Propylene oxide)

56

2,2’-azobisisobutyronitrile

13

Ethylene glycol

Dioxins
Total

1.3

179 (12.6) (3.0) (0.0) (15.6)
42.3 23.3(0.0)* Scope of survey includes PRTR-law specified substances with an amounthandled of more than 1 ton per year, and dioxins.
** While the PRTR Law says the amount of release shall be given in kilograms to
two significant figures, the amount in this report is given in tons, rounded to
the nearest 1/10 ton (dioxins in mg-TEQ).

27

98.2

99.8

99.8

We were granted the DirectorGeneral of Labor Bureau of
the Ibaraki Prefectural
Government Award at the
Ibaraki Prefecture’s
Occupational Safety and
Health Competition (onOctober 5, 2004).

8,000

94.0

94.8

94.4

Kashima Works of A&T Corporation
Reagents for clinical analysis (electrolyte analysis reagents,
glucose analysis reagents)

95

91.2

91.4
90

6,000

4,000

85

5.240

5.490

2,000

80

1.170

640

610

03

75
04 (Fiscal year)

0
00

01

02

Name of substance(Total of Three Companies)
500

227

2.0

0.0

Dichloromethane (Methylene chloride)

145

1.5

0.0

100

0.0

2.0

24.9

0.0

1.5

4.8

Chloroform

95

0.2

0.0

0.0

0.2

0.9

Acetonitrile

12

0.1

0.0

0.0

0.1

2.0

N,N-dimethylformamide

172

0.0

0.0

0.0

0.0

18.1

1,4-dioxane

113

0.0

0.0

0.0

0.0

0.1

Ethylene glycol

43

0.0

0.0

0.0

0.0

3.2

2,3-epoxypropyl methacrylate

316

0.0

0.0

0.0

0.0

0.1

Methyl methacrylate

320

0.0

0.0

0.0

0.0

α-methylstyrene

335

0.0

0.0

0.0
0.0

0.0

0.0

3.8

0.0

0.0

3.8

54.1

400
350

75.4

95.4

94.1

96.2

93.2

90
80
70

357

300

60

64.1

60.2

50

250

47.2

200
150

47.0

40
30

31.9

20

100
50

LegallyAmount released
Amountspecified To To public
substance atmo- water To soils Subtotal transferrednumber sphere systems

Toluene

Total

Volume of Finally Disposed Waste, Utilization Rates, etc.

450

Kashima Plant of Tokuyama Dental Corporation
Dental materials (restorative materials, adhesives,
denture relining materials, impression materials, dentalstone, implant materials)

Release and Transfer of PRTR Substances Sorted
by Item (FY 2004)* (Total of Three Companies)(in tons**)

98.2

0.0

0.0 65.6 268.5

Shigeki Yuasa

100

99.7

Zero emission rate

17.0

0.0 23.3

Waste utilization rate (%)

67
116

1,2-dichloroethane

Tokuyama Factory was granted acertification as an “Eco Factory in
Yamaguchi Prefecture” for its
efforts to reduce waste andincrease recycling in fiscal 2004.

Volume of final disposal (in tons)

CresolKashima Factory
General Manager

Tokuyama’s Kashima Factory
Bulk pharmaceuticals (x-ray contrast agents, stomach andduodenal ulcer treatment drugs); optical materials (plastic lensmonomers, light modulating materials, hard coat solutions); metal
washing solutions

Release and Transfer of PRTR Substances Sorted(in tons** except dioxins, in mg-TEQ)
by Item (FY 2004)*
Name of substanceKashima Factory is located within the Hasaki
Industrial Complex that forms a part of theKashima Coastal Industrial Region. It
comprises the plants of Tokuyama’s threegroup companies. They are all engaged in
manufacturing specialty chemical productsthat contribute to human health.

Volume of final disposal (in tons)

Nanyo Plant

Zero emission rate

Tokuyama Factory

53

0
00

01

10

39

43

02

03

29

0
04 (Fiscal year)

Waste utilization rate (%)

Release of Chemical Substances Subject to the PRTR Law

Release of Hazardous Air Pollutants (Total of Three Companies)
Carbon tetrachloride(Tons)

2

0.1

Dichloromethane

Chloroform

0.1

1.5

1

1.4

1.5
1.1

1.5
0.9

0.5

0

0.3

0.3

0.4

0.3

00

01

02

03

0.2
04 (Fiscal year)* Scope of survey includes PRTR-law specified substances with an amounthandled of more than 1 ton per year.
** While the PRTR Law says the amount of release shall be given in kilograms to
two significant figures, the amount in this report is given in tons, rounded to
the nearest 1/10 ton.

28

Site Report

Third Party Opinion

Responsible Care Report

Environmental Activities of Group Companies
We believe we should jointly address Responsible Care activities
with our group companies. To provide support for their activities,
we have exchanged a memorandum of agreement on RC
management with the respective group companies that are engaged
in production activities at home and aboard.
We assess overall RC activities by reviewing the RC activity
data of the group companies, such as their environmental loads,
safety management indicators, etc., and also by making safety andenvironmental inspections for several companies on a yearly basis.
We share information on relevant laws and regulations amonggroup companies, and also help them acquire ISO 14001 and ISO
9001 certification.

ISO 9001 and ISO 14001 Acquisition Status for
11 Group Companies
Company name

ISO9001

ISO14001

Sun Tox Co., Ltd.
Shanon Co., Ltd.
Tohoku Shanon Co., Ltd.
A&T Corporation
Figaro Engineering Inc.
Tokuyama Dental Corporation
Tokuyama Siltech Co., Ltd.
Sun Arrow Chemical Co., Ltd.
ASTOM Co., Ltd.
Shin Dai-ichi Vinyl Corporation
Tokuyama Polypropylene Co., Ltd.
Certified

Sun Tox Co., Ltd.

Included as a group site

Established: February 14, 1992
Shareholders: Tokuyama Corporation (100%)
Head office: Annex to Tokuyama Bldg. 1-4-5, Nishi-Shimbashi, Minato-ku, Tokyo, 105-8429
Business:
Manufacture and sales of biaxially oriented polypropylene films and cast polypropylene films (including multi-layer co-extruded films)
Shimasu, Itako City,
Kanto Plant 3075-18,
Ibaraki Prefecture, 311-2434

Harumi-cho, Shunan City,
Tokuyama Plant 7-7,
Yamaguchi Prefecture, 745-0024

Plant manager: Hideki Tanaka
Employees: 162
Area: 55,800 m2

RC Activities at Kanto Plant
Kanto Plant is located in the Itako Industrial Park in Ibaraki
prefecture, and manufactures biaxially oriented PP films and castPP films in a total quantity of 25,000 tons a year. Kanto Plant has
actively pursued energy saving from the standpoint ofenvironmental conservation. In fiscal 2004, the plant constructed acogeneration unit with the aim of promoting energy saving andfurther reducing CO2 emissions. It is expected that efficient
production of both electricity and steam used at the plant will leadto a drastic reduction in CO2 emissions. Regarding occupationalsafety and health, the plant organizes annual safety promotion
meetings every April, as does Tokuyama Plant. At such meetings,
all employees reconfirm the yearly safety policy and increase theirawareness of safety matters. In fiscal 2005, the plant is scheduled toadopt an occupational safety and health management system.

Plant manager: Toshihiko Nishimura
Employees: 137
Area: 24,100 m2

RC Activities at Tokuyama Plant
Tokuyama Plant is located in Tokuyama Factory of Tokuyama
Corporation, and manufactures biaxially-oriented PP films in aquantity of 20,000 tons a year. The plant conducts coordinated RC
activities with Tokuyama Factory. In fiscal 2004, the plant
improved its manufacturing process with the aim of improving unit
raw material consumption and unit energy consumption. As aresult, the plant was able to achieve a significant reduction in
manufacturing losses and a reduction in waste. Regarding
occupational safety and health, the plant promotes a safety andhealth plan based on the safety policy. All managers and employees
conduct safety activities, including a complete workplace safety
examination. We participate in disaster prevention drills conductedby Tokuyama Corporation to improve our disaster prevention skills.
In fiscal 2005, the plant is scheduled to adopt an occupationalsafety and health management system.

Performance Data (FYs 2000-2004)
Unit
2000
2001
2002
2003
2004
Power consumption
1,000 kWh 21,960 21,730 26,890 27,810 28,470
kl/yearHeavy oil consumption
1,170 1,280 1,480 1,460 1,470
SOx
1.1
1.4
2.2
2.0
2.0
tons/year
NOx
2.4
2.5
2.8
3.3
3.3
tons/year
Soot particles
0.6
0.6
0.1
0.3
0.3
tons/year
42
62
56
52
53
Industrial water consumption tons/year
Waste generation
300
300
100
27
90
tons/year
Volume of external final disposal tons/year
—
7
10
20
0
COD
0.02
0.01
0.02
0.02
0.02
tons/year

29

Performance Data (FYs 2000-2004)
Power consumption
Consumption of
0.3 MPa steamConsumption of
2.1 MPa steam
Waste generation
Volume of external
final disposal

Unit
2000
2001
2002
2003
2004
1,000 kWh 31,730 34,420 34,920 36,170 35,740
kl/year

2,220

2,500

2,450

3,080

2,610

tons/year 37,650 37,690 39,670 42,270 42,760
tons/year

490

670

270

100

80

tons/year

80

36

18

4

2

Tokuyama RC Activities—Historical Overview
July 1991
March 1993

Established Global Environmental Issues Committee
Established RC Administration Committee, Instituted voluntary
plan for Total Management of Environment, Safety and Quality
April 1994
Acquired ISO 9002 certification for High-Purity Isopropyl Alcohol
June
Improved product warranty systems, such as product and labelingassessments
April 1995
Became a member of the Japan Responsible Care Council
May 1997
Acquired ISO 9001 certification for Cement Manufacturing
September
Issued RC Report (First edition)
April 1998
Acquired ISO 9001 certification for Dental Materials Manufacturing
DecemberAcquired ISO 9001 and 9002 certifications for aluminum nitride
and Functional Powders Manufacturing; Tokuyama Factory wascertified to ISO 14001
January 1999 Kashima Factory was certified to ISO 14001
June
Acquired ISO 9002 certification for Chemical Products,
Polypropylene, Films, etc.
December
Set up Ecological Management Initiative Department. Acquired ISO
9002 certification for polycrystalline silicon, organic solutions, etc.
August 2000 Created Recycling and Environmental Business Department
April 2001
Established Yamaguchi Eco-Tech Co., Ltd.

April 2002

Acquired ISO 9002 certification for vinyl chloride monomer andpolyvinyl chloride
June
Kashima Factory won the Ibaraki Prefecture award in recognitionof it being an “Earth-Friendly Company”
March 2003
Received the award of distinction in “Resource Recycling
Technologies and Systems” from the Director-General ofIndustrial Science and Technology Policy and Environment
Bureau, Ministry of Economy, Trade and Industry
April
Updated certification to ISO 9001:2000; company’s sales sector
was newly certified
December
Underwent the Responsible Care verification process. Tokuyama
Factory achieved a Category II zero-accidents record (8.1 million
hours for the chemical industry) as defined by the Ministry of
Health, Labor and Welfare.
October 2004 Figaro Engineering Inc. acquired an ISO 14001 certification.
Kashima Factory was granted the Director-General of Labor
Bureau of the Ibaraki Prefectural Government Award.
February 2005 Tokuyama Factory was granted the Director-General of the Agency
of Natural Resources and Energy Award for Excellent Energy
Management Plant (Electricity Sector.)
March
Tokuyama Factory acquired a certification of the Yamaguchi
Prefecture Eco Factory.

30