Reference
Corporate Governance/Compliance

We are building a highly transparent corporate structure to earn the trust of
all stakeholders.

We inaugurated the Compliance Hotline System supplement internal audits by swift identifying and addressing
any violations (see page 2).

We must meet the expectations and respect of shareholders,The hotline’s mandate is to be fair and swift. It receives

up of a budget and capital investment, we set up special com-

3. Internal Controls Reporting System

union, which operate independently, as well as from themittees or deliberative councils by function redundant.

This system under Japan’s Financial Services andEthics Committee Administrative Office and general affairs

Exchange Act aims to ensure that financial statements are

sections within all offices. People can send reports to an

reliable.

external law firm. They can also e-mail reports to internalcustomers, local communities, employees, and other stakeholders. Corporate governance underpins social respect and sup-reports.

reports from the Corporate Auditors’ Office and the labor

managerial matters. For such important matters as the drawing■ Corporate Governancethat policy. The Ethics Committee quickly addresses■ Internal Controls

We conduct checks of Groupwide business proce-

port. We have thus taken steps to improve both the Board ofauditors. During fiscal 2010, we received one report.

Directors and our auditing system, while streamlining our man-Internal control systems are fundamental to meeting society’s

dures to reduce mistakes and possible risks in keeping

The DENKA Group Ethics Policy specifically safe-

agement organization and bolstering our compliance system.

expectations and gaining its respect. We will continue towith the implementation standards of this system, swiftly

guards whistleblowers from discrimination and mistreat-

improve our systems in line with the policies of the Board ofaddressing any problems that are discovered. We issued

ment.

Directors. The following outlines details of the system.

an internal control report following the system’s implemen-■ Corporate Governance Structure

tation in fiscal 2008. In fiscal 2010, this document declared■ Risk Management

We adopted a Corporate Auditor System as the basis of our

1. Board of Directors and Executive Officers

the effectiveness of our internal controls based on an eval-Corporate Governance System. The Board of Auditors

Two of our ten directors are external. In April 2008, weuation in line with assessment standards for generally

It is important to understand the diverse and numerous

includes two independent members assessing our operations

reformed this body to separate oversight and implementation

accepted financial reports.

hazards of corporate activities through proper risk control.

and management to ensure that our business properly serves

by eliminating ranks within the board while reinforcing its super-

An independent accounting firm (ERNST & YOUNG

In general, each business unit is responsible for identi-

stakeholders.

visory functions. The Board of Directors appoints executive offi-

SHINNIHON LLC) audited our report and determined thatfying and managing its specific risks. We maintain special

cers to run operations under the leadership of the president.

all significant aspects of our disclosure were proper. We

sections and permanent committees to handle environ-

will continue to maintain internal controls for the purpose ofmental, safety, product liability and export control issues

ensuring the reliability of our financial reports.

that affect the entire Company.

The Board of Directors similarly has two external members.
We ensure management transparency by separating that

2. Internal Auditing Systemboard’s oversight from executive implementation.
The chart below shows our corporate governance struc-checks, with assistance from the Legal, Environment andture, including the Internal Auditing System

We formulated our Risk Management Guidelines to

The Internal Auditing Department conducts our in-house■ Compliancecomprehensively tackle incidents that greatly affect corporate activities. We also set up the Crisis Measures

Safety, and Quality Management departments. It also works
closely with the Product Liability, Responsible Care and otherCompliance is essential for sustainable growth. We

Headquarters and the permanent Risk Management

committees based on their specific functions. Each depart-

accordingly adhere to internal rules and legislation andCommittee.

DENKA established the Management Committee, which isment and committee collaborates to educate on legislation

refrain from acts that violate moral and ethical norms. In

composed of directors, corporate auditors and some executive

and audit operations. The results are reported to the Board of

2002, we codified conduct standards in the DENKA Group

officers, to streamline and accelerate deliberation on important

Directors as needed.

Ethics Policy.

■ Management Committee■ Risk Management Overview
President

Directors (Board of Directors)

Internal Auditing Department

Corporate Auditor’s
Department

Audits within Business Units

Conduct Audit/Auditing Staff

Report(Including Administrative Dept., Legal Dept., Environment andCompliance Hotline

1

DENKA CSR REPORT 2011

Audit

Safety Dept., and Quality Management Dept.)

Financial Auditor (Auditing Firm)

Monitor/Instruct

Other
risks

Major
crisesBoard ofDirectors

CrisisMeasures
Headquarters

ReportInternal Audits

AssistantAt

Affiliates■ Compliance Hotline System

Risk Management
Committee
Proxy organizations
Ethics Committee
Safety Measures
Headquarters
Responsible Care
Committee
Product Liability
Committee
Export Control
Committee

Reportt

Various Business Sectors

Corporate Auditor(Board of Auditors)

grams run by the Human Resources Development Center.
Appointment/Dismissal

Executive Officers

We educate employees on compliance through pro-

ReportExecutive Directors

Audit

Implementation

Representative Director

ReportElection/Dismissal

Appointment/Dismissal

Supervise

departments.

Risk-specificcommittees

ReportAppointment/Dismissal
A

Appointment/Dismissal

Reports on Emergencies

Environmental and Safety, Intellectual Property and otherSet up/We adopted compliance policies for the Legal,
General Stockholder's Meeting

Instructdent chairs, to oversee compliance and enforce the policy.

■ Corporate Governance Overview

ReportReportWe established the Ethics Committee, which the presi-

Monitor/InstructThis system covers any shortfalls in our internal control andcompliance systems by enabling us to fix organizational
problems that may arise. We set up the Compliance
Hotline in keeping with the DENKA Group Ethics Policy.
The hotline accepts calls on actions that may or do violate

Prime oversightBusinesses(including Sales and Manufacturing Divisions)
Administration(including Internal Auditing, Environment and
Safety, Legal and Accounting & Finance
Departments)

DENKA CSR REPORT 20112

Reference

Reference

The DENKA Group Guidelines

Initiatives in Human Affairs and Labor Management

We endeavor to maintain safe and comfortable workplaces.

■ Sexual Harassment
1. We will promote sustainable social and business development outof a conviction that corporate social responsibility is the essenceof business.

2. While constantly ensuring quality to maintain customer trust, we
will contribute to sound social progress by developing and supply-■ Occupational Safety and
Health Management System

DENKA has instituted policies to prevent sexual harassment
and inform all employees of these policies through in-house

DENKA conducts risk assessment to monitor the degree ofnewsletters and the Company intranet, while establishing arisk at each plant.

consultation hotline (Ethics Committee) in response to various

Based on assessment results, we comprehensively man-inquiries and requests for advice. Furthermore, we clearly stip-

age risks and implement improvements. The status of certifica-

ulate disciplinary code in our employment regulations.

tion acquisition from external institutions is as follows.

ing products and services that are safe and environment friendly.
■ Work-Life Balance
3. We will operate fairly.

Plant Name

Certification
SystemCertification
NumberAcquisition
Date

Chiba Plant

OHSAS18001

1026525

February 6,
2007

Omi Plant

OSHMS

10-15-6

March 8,2010

OHSAS18001

SNG6011133

January 23,
2011

DENKA established the Action Plan for General Business
Operators (April 1, 2011–March 31, 2014) based on the Act on

4. We will maintain a good level of communication with society anddisclose appropriate information.

Advancement of Measures to Support Raising NextGeneration Children and will promote the following:

DSPL Seraya
Plant•Facilitating the acquisition of annual paid holidays•Shortening of overtime by streamlining works

5. We will comply with laws and regulations and operate fairly•Encouraging school attendance through the internship andaccording to social norms.

scholarship systems
Furthermore, we clearly stipulate regulations regarding child-

6. We will maintain safe, clean and comfortable workplaces andcare and nursing care leaves in our employment regulations.

respect all basic human rights.
■ Change Management
7. We will use, reuse and recycle resources to help protect
the environment.

This encompasses establishing rules to assess risks and implement

Commercial operation

10. We will contribute to social development as a good member ofAssess process suitability
at planning stage

Pilot operation

In particular, we emphasize preventing key lapses in areas con-Undertake additional measures

and worker safety.

Confirm upon completion

with in-house third parties to discuss risks relating to fires, explosions

9. We will contribute to society as a good corporate citizen.

Implement and produce

departments conduct preliminary safety assessments and gather

Detailed designs and orders

when we upgrade or modify facilities. Facilities and operations

with society.

Preliminary safety assessmentthat use new processes. Change management comes into play

Decideticipate in environmental protection activities and communicate

Deliberate

Preliminary safety assessments are important when building plants

Determine facilities outline and budget

8. We will maintain security and disaster prevention measures, par-Review process

measures where needed for changes in the 4Ms* during production.

Evaluate ways to reduce safety and security risks and reflect them indetailed designs and equipment production specifications

Confirm that instructions have been implemented
and deploy additional measurescerning disaster prevention and occupational health.

the global community.

* The 4Ms: man, machines (facilities, equipment, tools), materials (raw materials andcomponents) and methods (including work methods/operations, processing conditions and formulas)

Established in 2007

3

DENKA CSR REPORT 2011

DENKA CSR REPORT 20114

Reference
Environment-Friendly Product Development

DENKA is Promoting the Development of Environment-Friendly Products in
All Business Areas
Category
Business Department
CO2 emissions
reduction in
Organic Chemicals
1
manufacturing Department
process
Organic Chemicals
Department

Details of Contribution Effects
Incorporated in bladders used in the manufacturing (vulcanization) of tires to improve heat conductivity and thus shorten
vulcanization time (contributing to energy conservation)

Tire bladders

Chloroprene rubber(CR)1) Gaskets for photo- Potential for use in roof panel gaskets, which require a particularvoltaic panels
level of flame resistance

Organic Chemicals
Department

Chloroprene rubber(CR)2) Vibration insulation
Potential for use in vibration insulation rubber for wind turbine
rubber for windnacellespower generation

Organic Chemicals
Department

Chloroprene rubber(CR)3) Charging cables
Potential for use in charging cables, which require flame resisfor electric vehicles tance

Acetylene black (AB)Lithium-ion
secondary cells

Used as a conductive aid

Railway industry
equipment EV

Used to dissipate the high heat generated by drive transistors
as well as in electric insulation substrates to improve inverters’
efficient use and control of electricity

Electronic Products
Department

ALSINK, ANP

Electronic Products
Department

HITTPLATE

Air conditioners

Used to dissipate the high heat generated by drive transistors
as well as in electric insulation substrates to improve inverters’
efficient use and control of electricity

Electronic Products
Department

Thermally conductive
sheetsEV

Used to dissipate the high heat generated by drive transistors
as well as in electric insulation substrates to improve inverters’
efficient use and control of electricity

Electronic Products
Department

HITTPLATE, thermallyLED
conductive sheets

Used to improve LED luminance by insulating LED chips fromheat

Functional Ceramics
Department

Spherical alumina,
BN powder

LED

Inserted in resin as filler for the purpose of insulating and effectively dissipating the heat generated by LED chips, thereby
enhancing LED’s luminanceFunctional Ceramics
Department

Molded BN products

LED manufacturing
equipment

Used in LED chip manufacturing equipment as an excellent, easy
to cast insulation material

Functional Ceramics
Department

B4C powder

Nuclear power
generation

Used in nuclear power generation as a reaction control neutronabsorbing material

Electronic Products
Department

ALONBRIGHT

Phosphor for LEDs

Used increasingly in the shift to backlights for LCD TVs and LED
lighting, which is expected to reduce energy consumption

Photovoltaic backsheetsUsed on photovoltaic back sheets, takes advantage of fluorine
resin compound’s characteristics of weather resistance, contamination resistance and chemical resistance in addition to realizing
easy thermal adhesion on substrates

Industrial Materials
Department

Housing &Environmental
Materials Department

Inorganic Chemicals
Department

Reduce the3 weight whenin useApplication

Acetylene black (AB)Organic Chemicals
Department

Used inenvironment2
friendly
products

Product NameHousehold Packaging
Materials Department

DX FILM

Rain Oasis

ALCEN

Rainwater storage
systemAutomotive engine
peripherals

Category

Used to collect rainwater through a system of rain gutters withwater intake fittings. Collected rainwater may be used for watering gardens and washing cars, contributing to water savings andhelping to prevent global warming.

Food packaging

Used to make food packaging as thick as but lighter than A-PET

Industrial Materials
Department

Karariyan Y

Various types of
packaging

Used for packaging high-molecular-weight hyaluronic acid preparations and enabling a shift from blister packs to pillow packaging, thereby contributing to a reduction in package weight

Special Cement
Additives Department

SUQCEM

Concrete precast
products

Used to create lighter, thinner products than possible with ordinary concrete, this superhigh-strength fiber-reinforced concrete
can cut construction costs.

Reduction ofenvironmental
6 burdens andimprovementof durability

5

DENKA CSR REPORT 2011

Application

Details of Contribution Effects

Steel desulfurization

Used in place of calcined lime, the most common desulfurizing
agent, these products lower thermal loss during steel refining
while helping to reduce CO2 emissions from transportation bylowering slag ejection

Calcium cyanamide

Agriculture

A nitrogen fertilizer with lower N2O emissions compared withother nitrogen fertilizers, can also be used to curb CH4 emissions
from rice straw

ALCEN

Fire resistant materials

Used as a high heat insulator to reduce heat loss and thus saveenergy, boasts greater heat resistance than ceramic fibers,
thereby improving repair and maintenance frequency for fireproof
linings while helping to lower CO2 emissions from the transportation of products and waste

Concrete secondary
product

Used as high-strength additives to reduce the volume of highCO2 emitting cement needed to make concrete

Inorganic Chemicals
Department

Synthetic FLUXCOMPOUND

Fertilizer Department

CO2 emissions
4 reduction
Special Cement
when in use
Additives Department

Improve customers’ operational
5
processes(in-house processes)

Product NameSARUFEX

Inorganic Chemicals
Department

Used to replace steel automotive engine parts in the shift to aluminum parts reinforced with alumina fiber, which is helping to
reduce automobile weight and thus improve fuel efficiency andreduce CO2 emissions

SOFRIA

Business Department
Inorganic Chemicals
Department

∑1000
∑2000

Special Cement
Additives Department∑80N

High-strength castin-place concrete

Used as high-strength additive to reduce the volume of high CO2
emitting cement needed to make concrete

Special Cement
Additives Department

F-DAC

Concrete secondary
product

Increasing the strength of concrete, F-DAC can shorten precuring and steam curing time while reducing the CO2 emissions
from products made of concrete

Special Cement
Additives Department

TECHNOCRETE
Repair and maintemethod (electronance of concrete
chemical repair work) structures

When concrete is damaged by salt or neutralized, the
TECHNOCONCRETE method repairs it electrochemically so thatit does not need to be demolished, thereby reducing the amountof construction materials needed compared with existing repair
methods.

Inorganic Chemicals
Department

Hydrated lime

By reacting with the CO2 formed during the limestone cycle,
encompassing limestone, calcined lime, calcium carbide, (waterand) hydrated lime, hydrated lime absorbs CO2 while helping tocurb the use of heavy machines for limestone mining (and thus
reduce CO2 emissions).

Organic Chemicals
Department

CR latex

Water-based adhesives

With no VOCs, this product helps customers to reduce the useof (or not use) solvents that produce VOCs while improving operational environment.

Functional Resin
Department

CLEAREN

SheetsLightweight (80% of the specific gravity of the competitive material
PET-G), CLEAREN has a lower energy burden regarding transportation per unit area and volume. In addition, it has a processing
temperature for sheet and other materials that is 50C° lower thanthat of PET-G, therefore it lowers energy costs for processing.

Functional Resin
Department

MS

Moldings

MS resin is lighter than PMMA when used for the same applications (specific gravity is 6% lower than that of PMMA) and has
lower energy burden in transportation per unit area and volume.

Tapes and Adhesive
Department

TEMPLOC

Tapes and Adhesive
Department

SOLARLOC

Special Cement
Additives Department

Slurry shot method(NATMIC US-32,
US-50)

Shotcrete for tunnels

Reduce dust and concrete splash when spraying shotcrete,
while improving the operational environment and decreasingmaterial losses.

Special Cement
Additives Department

Slurry shot method(NATMIC LSA, USS)

Shotcrete for tunnels

The low alkaline content of NATMIC LSA and USS results in an
improved operational environment with reduced dust and lessconcrete splash when shotcrete is sprayed, qualities that, in turn,
reduce the environmental burden and decrease material loss.

Special Cement
Additives Department

Super Cement

Emergency repair ofroad, railways andairports

Using ultrarapid hardening concrete that quickly attains initialstrength, Super Cement can gain practical strength in a shortperiod of time, helping to shorten construction periods andreduce the time of closure to traffic.

Special Cement
Additives Department

F-DAC B-FORM

Concrete secondary
products

Facilitating the hardening and increasing the strength of concrete, these products shorten pre-curing and steam curing time
while lowering costs by reducing fuel use and improving production efficiency.

Special Cement
Additives Department

DENKA
Repair and mainteTECHNOCRETE
nance of concrete
SYSTEM (electrostructureschemical repair work)

Special Cement
Additives Department

SUNTIGHT T-K, T-F

Repair and maintenance of sewage
systems

The sulfuric acid generated inside sewage facilities deteriorates
concrete. Therefore, the use of acid-resistant mortar for repair
and maintenance work can enhance the facility durability andextend the life of facility buildings.

Special Cement
Additives Department

EIEN

Concrete precast
products

Incorporating special cement additives (γ -2CaO and SiO2), EIEN
can densify the internal structure of concrete by reacting withcarbonate ions, thereby improving concrete durability and thus
reducing life cycle costs.

Special Cement
Additives Department

SUQCEM

Concrete precast
products

SUQCEM’s durability is extremely high thanks to its ultra-highstrength. Therefore, it can reduce life cycle costs.

Unlike previous temporary adhesives that had to be removed byTemporary adhesives
dissolving with organic solvents that posed potential health hazfor the processing ofards for workers, these products can be removed with water,
glass in smartphones
averting the aforementioned risk.

When concrete is damaged by salt or neutralized, the
TECHNOCONCRETE method repairs it electrochemicallyso that it does not need to be demolished, thereby extending
the life of structural objects and reducing lifecycle costs andwaste generation.

DENKA CSR REPORT 20116

Reference

ReferenceManagement System

Environmental Accounting

We are pursuing ongoing improvement based on our quality andenvironmental management systems. We secured the following
ISO certifications in fiscal 2010:
Note: Only the ISO 9001 certification excludes the Central Research Institute.

■ 1. Conservation Costs
In fiscal 2010, initiatives to save energy accounted for approximately 55% of environmental investments, with research and develop-■ Status of ISO Certification Acquisition

ment spending to conserve resources representing another approximately 40%.

ISO 14001 (Environment)
Date certified

Omi Plant

Omuta Plant

Chiba Plant

October 16,
1999

October 28,
2000

May 31,
1999

Registration
number

187071/A (BV)

284330 (BV)

180943 (BV)

In fiscal 2006, we began accounting for our investments and spending aswell as the environmental and economic effects of our activities in order toassess the impact of our conservation investments.

Coverage: Plants and Research Institutes

ISO 9001 (Quality)
Date certified

August 19,
1994

November 7,
1998

March 22,
1995

Shibukawa Plant

May 21,
2001

363444 (BV)

October 23,
1996

Ofuna Plant

November 9,
2001

JQA-EM1895(JQA)

October 25,
1996

1090712 (BV)

February 28,
2008

Registration
numberProducts covered

1. Business site costs

275156 (BV)

Chloroprene, POVAL, ASR, SAKNOHOL, butyral, special
cement additives, cement, arsenic chemicals,
monochloro acetic acid, sodium monochloroacetate,caustic soda, monosilane, dichlorosilane,hexachlorodisilane
Fused silica, special cement additives, nitride powder,ceramic substrates, steel additives, acetylene black,calcium aluminate cement, FIRELEN, boron, boron
carbide powder, thermally conductive materials, heat sinks
Polystyrene, acrylonitrile styrene resins, methyl
methacrylate styrene resins, methacrylate-butadienestyrene resins, methacrylate acrylonitrile butadiene styrene
resins, acrylonitrile butadiene styrene resins, styrenemaleimide copolymers, styrene-butadiene copolymers,
vinyl acetate, ethylene vinyl acetate copolymers, acrylic
rubber, polystyrene sheet, acetic acid, styrene monomer,
toluene, ethyl benzene, rain gutters, vinyl tape, corrugatedpipes, duct hosing, wall ducts, polyvinyl chloride

439189 (BV)

155885 (BV)

484541 (BV)

Metal substrates, resin compounds, adhesives, emitters,
thermally conductive spacers, thermally conductive
adhesive sheets, electromagnetic shields, Elegrip Tape

Category

Conservation costs (millions of yen)
Investments
Expenses

Details(Subtotal)

898

2,424

(1) Pollution prevention

Environmental burden reduction measures

603

1,922

(2) Conservation

Conserving energy

212

83

(3) Recycling resources

Using resources effectively

83

419

2. Upstream and downstream costs

Changing raw materials

00

3. Administrative costs

Environmental education

030

4. R&D costs

Conserving resources

791

1,754

5. Social activity costs

Environmental education

05

6. Environmental damage costs

Community relations

0

114

0

2

1,688

4,330

7. Others
Total

From 2007 to 2009, DENKA has proactively invested in energy saving-related projects from which it can expect quick results.
Although we maintain this policy, direct investment costs in fiscal 2010 declined due to the revision of some themes. From fiscal
2011, we will continue to invest in key areas based on careful review.

■ 2. Conservation Effects
We calculated the environmental load data.

Packaging tape, plastic films, vinyl compounds, polyvinyl
JQA-1429 (JQA)
chloride fibers, embossed carrier tape for taping△: Increase

Environmental load

Units

Isesaki Plant

Central ResearchInstitute

July 5,
2004

352185 (BV)—

428794 (BV)

Stretch films, food packaging sheets, electronic
packaging sheets, cover tapes

—

—

229

247

t

870

257

△18
613

NOx emissions

t

4,470

4,320

150

Soot and dust emissions

t

149

111

38

COD (BOD) discharges

t

1,120

1,600

△ 480

1,000m3

78,60080,400

t

136

122

△1,80014

1,000 t

100

112

t

510

304

△12
206

1,000 t40

39

1

SOx emissions

Water used
DSPL Merbau Plant

June 8,2001

SNG0190016(Lloyd’s)November 29,
2000

SNG0160194(Lloyd’s)

Acetylene black

PRTR substance emissions
Waste
Final waste disposal

DSPL Seraya Plant

May 28,2003

SNG0160242(Lloyd’s)

Polystyrene, methyl methacrylate styrene resins, styrenebutadiene copolymers

Effects

10,000 t

CO2 emissions (from energy sources)
September 30,
2003

Fiscal 2009 results Fiscal 2010 results

SNG0190023(Lloyd’s)

September 27,
2001

DAPL Tuas Plant

March,
2003

2003-0194 (PSB)

April,
2000

Denka Advanced
Materials (Suzhou)Co., Ltd.

May 20,2008

310092-UK (BV)

September 19,
2007273428 (BV)—

September 14,
2001

C2010-01748(PJR)

Plastic food packaging and plastic sheets

Category

Proceeds from selling waste from core operations
and income from recycling waste

803041(BV)

12 100 25631
TMS (TMS)

Clinical chemistry diagnostic reagents, immunologicaldiagnostic reagents, bacteriological and virologicaldiagnostic reagents, sterile cotton swabs

Profits

July 13,
2005

Cost reductions

Lowering energy costs by conserving energy
Reducing waste treatment costs by conserving or
recycling resources

CO2 emissions from transportation

Environmentally harmful substance emissions declined compared with the fiscal 2009 level. The SOx emissions volume showed a

DENKA Polymer
Co., Ltd.
DENKA SEIKEN
Co., Ltd.

CRK Corporation

Electronic packaging sheets, cover tapes

substantial drop thanks to the shift in fuel to natural gas.

■ 3. Economic Effects
We calculated proceeds from selling waste, energy savings, reductions in waste treatment costs and yield improvements.

—

June 23, 2000—

DSPL: Denka Singapore Pte., Ltd.
DAPL: DENKA Advantech Pte., Ltd.

799-2-0984 (PSB) Manufacture of fused silica filler

DENKA CSR REPORT 2011—

November 19,
20091069716 (BV)△: Increase

Rubber compounds, rubber tape, rubber molding

Item

Total

Details

Effects (millions of yen)

Sales profits

648

Conserving energy

177

Using resources effectively△5820

External processing costs increased due to an increase in test products that accompanied the launch of the expanded chloroprene
plant. We will strive to secure stable operations to increase earnings.
DENKA CSR REPORT 20118

Reference
OutputDenka strives to reduce the emission of substances and waste generated byits production activities while pursuing the appropriate treatment of such
emissions.
■ Emissions■ Nitrogen Oxide (NOx)■ Soot and Dust

■ PRTR Substances Emissions■ Fiscal 2010 Substance Emissions and Transfers

Production volume declined approximately 3% year on year,

Emissions fell approximately 25% due to reduced cement produc-

Emissions from the Omi Plant grew due to the increased chloro-

The following table shows emissions and transfers exceeding one

reflecting decreased cement production. We will consider thetion and the shift in fuel to natural gas.

prene rubber production. However, toluene emissions at the Chiba

ton of substances on the register.

establishment of denitration facilities.

Plant declined, reflecting a shift to water-soluble adhesives that
helped bring overall toluene emissions down by approximately(Tons)
6,000

300

5,900
5,520

5,000

10%. In addition, ethylene glycol (with emissions totaling 9 tons)(Tons)

5,200

4,900

297

5,680 5,670

Target5,010

250

4,470 4,320
4,180

4,000

222
4,080

200

200

3,800

191

150

3,000

142

147

130
117

2,000

0

01

02

03

04

05

06

07

08

09

10

11

01

02

03

04

05

06

07

08

09

10

11

(Fiscal
year)

0

0

0

0

0

0

0

2

and other substances were newly included.

Acrylonitrile

2

0

0

0

2

12

Acetaldehyde

2

4

0

0

6

0

Aniline

0

0

0

0

0

7

Ethyl benzene

3

0

0

0

3

51

Ferric chloride

0

0

0

0

0

43

Calcium cyanamide

0

0

0

8

8

0

Xylene

1

0

0

0

1

0

Vinyl acetate

18

0

0

0

18

0

Dimethyl formamide

0

0

0

0

0

32

Styrene

25

0

0

0

25

152

Water soluble copper salt

0

4

0

0

4

0

Toluene

32

1

0

0

33

35

Carbon disulfide

1

1

0

0

2

0

Bis (2-ethylhexyl) phthalate

0

0

0

0

0

2

Hydrogen fluoride

0

0

0

0

0

23

Boron and boron compounds 0

13

0

0

13

3

2-ethylhexyl methacrylate

0

0

0

0

0

1

Methyl methacrylate

2

0

0

0

2

14

(Others total)
Total

3

0

0

1

4

6

90

23

0

9

122 386

Dioxins (mg-TEQ) (see note)

76

50

0

0

126

778

600

649
584
490

400
363

242

■ Chemical and Biochemical Oxygen Demand (COD (BOD))■ Sulfur Oxide (SOx)
Emissions significantly dropped thanks to the use of gas turbines.

200

232

210

Target143 136
122

Emissions increased due to the large-scale chloroprene rubber production increase. We will reinforce wastewater processing facilities.

90

0

98 99 00 01 02 03 04 05 06 07 08 09 10 11(Tons)(Tons)

5,000

4,000

(Fiscal
year)

3,570

4,300

3

0

667

90

(Fiscalyear)

Amounttransferred

0

0

90

Total

0

800

50

Landfill

n-Butyl acrylate

862

1,000

Soil

Zinc

111

100

Water

the Law, while calcium cyanamide (with emissions totaling 9 tons)(Tons)
1,000

149

149

Air

was excluded from the PRTR substances list due to a revision to

Target172

Emissions

PRTR substances

4,000
3,000
3,000
2,860
2,600

2,000

2,000

2,060

Units: tons (excluding dioxins)

1,910
1,670 1,630

2,080
1,460 1,480

1,740
1,440
870

1,120

01

02

03

04

05

06

07

08

09

Target■ Waste940

991

Target
260

0

1,600

1,350

1,000

1,000

90

0

3,040 3,040 2,870

10

120

11

■ Changes in the amount of waste for final disposal
0(Fiscal
year)

90

01

02

03

04

05

06

07

08

09

10

11

(Fiscalyear)

In fiscal 2010, DENKA promoted the recycling of dust and(1,000 tons)

waste plastic, and the total amount of landfill waste was

40
37.5

reduced approximately 200 tons. The emissions ratio (final
disposal amount/amount of waste generated × 100) was
30

also drastically improved from 0.51% in fiscal 2009 to 0.27%,
maintaining the status of zero emissions (an emissions ratio of
below 1%).

20

10Target

6.8
4.0

5.0

4.6

4.9

3.7

2.9

2.9

07

08

0

97

01

02

03

04

05

06

0.5

0.3

0.3

09

10

11 (Fiscal
year)

9

DENKA CSR REPORT 2011

DENKA CSR REPORT 201110

Reference
Product Safety Control and Management System

We thoroughly undertake management operations that fully consider safety,
environmental protection and quality in all our processes, from raw materials
procurement to research, production, logistics, consumption and disposal.
■ Collaborating in Chemical Industry Initiatives■ Product Safety Management
Materials Safety andManagement Flowchart

We ensure product safety at each phase—from development, production and use by customers—while focusing on maintaining andimproving quality.
1. Verify the Safety of Raw Materials and Necessary Quality Level andEngage in Production Process Design

1. Development
Verifyif raw materialt i l safety
f tVerify necessary quality level
Production process design

We select and use raw materials for which safety can be verified while developing● High Production Volume Program (HPV)● Long-Range Research Initiative

Through the HPV Program, we and other companies collaborate

The Japan Chemical Industry Association, the American Chemistry

under the auspices of the International Council of Chemical

Council and the European Chemical Industry Council oversee thisAssociations to evaluate the safety of around 1,000 substances that

program. The program entails conducting long-term basic research

the Organisation for Economic Co-operation and Development has

to correctly determine if and/or in what manner chemical substances

designated. These substances are used heavily worldwide.

affect human health and the environment. Currently, they are
engaged in long-term basic studies of endocrine disruption due to

products that conform with customer and legal demands. We establish production
2. Raw Materials
Green P
G
Procurementt
Purchasing specifications

3. Raw Materials
Outsourced
materials production

processes that ensure consistent quality and thus trust in the products we develop.

● Japan Challenge Program

exposure to chemical substances, cancer caused by neurological

2. Green Procurement /Purchasing Specifications

Under this program, manufacturers are working with the Ministry of

exposure to toxic chemicals, and endocrine hypersensitivity due to

We purchase and use raw materials based on the Negative List, which takes into con-Health, Labour and Welfare, the Ministry of Economy, Trade andexposure to chemical substances. We are cooperating fully in thesideration Japanese and international environmental management regulations, as well

Industry and the Ministry of the Environment to collect, assess andimplementation of this program.

as purchasing specifications that outline the required characteristics of purchased raw

disclose safety information on around 700 chemical substances. We

materials. Consequently, we are striving to manufacture superior products from quality

are participating in areas of the program that relate the substances

raw materials and production processes.

that we use.

3&5. Manufacturing Vendor Audits

Manufacturing vendor audits

We outsource some raw materials production processes and the manufacture ofsemi-processed goods. We regularly audit manufacturing vendors based on our inhouse standards for quality, logistics, environmental management and product safety.

4. Production

4. Maintain/Improve the Environmental Protection and Quality

Maintain and improve environmentalit l protectiontand quality(ISO 14001, ISO 9001 and Good Manufacturing Practices(GMP: see note 1))

We are undertaking environmental and quality management operations; gradually
expanding the scope of our efforts to include new products; and working to maintainand improve quality, environmental protection and safety.

6. Waste Contractor Audits

原材料

We commission waste contractors in line with the Waste Management and Public

Notes 1. Good Manufacturing Practices (GMP) refers to standards that Japan’s Ministry of Health, Labour and Welfare established in its Ministerial Ordinance onStandards for Manufacturing Control and Quality Control for Drugs and Quasi-drugs.
2. The Japan Chemical Industry Association created a labeling format to augment the Yellow Card system. The labels present emergency guideline numbers
and United Nations identification numbers for different chemicals transported in relatively small amounts on the same vehicle. The labels aid in the proper
handling of these chemicals in emergencies.
3. The Joint Article Management Promotion-consortium (JAMP)’s* Material Safety Data System plus (MSDSplus) and Article Information Sheet systems
provide standardized formats for presenting information on substances subject to management. MSDSplus is mainly for substances and agents that are
upstream in the supply chain. Article manufacturers produce Article Information Sheets based on that information. JAMP aims to spread its systems
throughout Japan and Southeast Asia.
* JAMP is a cross-industry association established in Japan in 2006 to encourage companies to properly manage information on substances and compounds
as well as on chemical substances in parts, plastics and other articles. JAMP also establishes mechanisms to disclose and present information on supply-chain
products.

Cleansing Law, requiring them to issue manifests and confirm collection. We regularly
5. Outsourced
Processing
and Production

6. Disposal

Manufacturing
f t i vendor
d auditsdW
Waste
t contractor
t t audits
ditevaluate the operations and financial positions of these vendors and visit their waste
processing sites.

7. Management of Environmentally Hazardous Substances in Products
We established the Negative List, which lists substances that are considered to beharmful to people and the environment. We are taking steps to ensure product quality
and safety while reducing environmental load by placing restrictions on usage during

7. Products

the raw material phase and by decreasing the residual volume of harmful substancesin our products. The Central Research Institute (which is in charge of certifying mea-it ll hManagementt off environmentallyhazardous
substances in products (Negative List)

surements) analyzes the amount of residual substances harmful to the environment
contained within raw materials and products. Analytical data on items that do notmeet regulatory standards is shared with the production, sales, and analysis and

8. Logistics

product management departments.

8. Displaying Yellow Cards and Yellow Card Container Labels
Y
Yellowll
cards
dContainer labels (see note 2)

We require drivers to carry yellow cards that explain post-accident procedures. We
also label containers to ensure swift and proper remediation. We regularly inform drivers of our requirements and conduct emergency drills.

9. Material Safety Data Sheets (MSDS)
9. Customers
Material safety data sheets (MSDS)
MSDSplus (see note 3)
AIS (see note 3)

We produce these sheets for all products to ensure proper handling according tophysical and chemical hazards and health and environmental risks. The sheets informcustomers and help educate employees. We have begun disseminating information
on environmentally hazardous substances contained in our products to customers
through the MSDS plus—which supplements information conveyed on MSDS
sheets—and Article Information Sheet systems.

11

DENKA CSR REPORT 2011

DENKA CSR REPORT 201112

Reference
Financial Statements

Consolidated Balance Sheets (Summary)

Consolidated Statements of Income (Summary)Millions of yen

Consolidated Statements of Shareholders’ Equity for Fiscal 2010 (April 1, 2010, to March 31, 2011)

Millions of yen
Common assets stock

AmountAccount item

As of March
31, 2011

As of March
31, 2010

AssetsAmountFiscal 2010

Fiscal 2009

Balance at March 31, 2010

¥357,893¥323,875

Changes of items during the term

Cost of sales

281,219

251,411

Selling, general andadministrative expenses

52,05450,80924,61821,655

Account item

Net sales

75,564

74,843Inventories

47,622

44,413

Other current assets

14,34813,017

Non-operating income

3,081

1,543

Reversal of revaluation reserve for land

(441)

(770)

Non-operating expense

4,647

6,310

Net changes of items other thanshareholders’ equity

258,693

262,046

23,052

16,888203,395

207,005

2,021

1,048

Intangible fixed assets

2,749

3,476

21,03015,839Investment securities

38,57139,492

Allowance for doubtful accounts
Total assets

Net increase in treasury stock

Operating income

Ordinary income
Extraordinary losses
Income before income taxes

12,383

(146)

(310)

¥402,046¥400,407¥147,190

14,355

Notes and accounts receivable,
trade

14,123¥(3,662)

14,355

6,856

Other

¥64,550

Total shareholders’ equity

Net income

6,258

Property, plant and equipment¥49,303

Treasury stock at cost

(4,910)Cash and time deposits

Non-current assets¥36,998

Retained earnings(4,910)¥138,360

Allowance for doubtful accounts

Capital surplus

Dividends from retained earnings¥143,352

Current assets

Millions of yen

Shareholders’ equity(10)

Gain on sales of treasury stock

(52)

(52)

71

61

2

2
—

—

(10)

9,447

19

9,455

¥36,998¥49,292¥73,997¥(3,642)¥156,645

Total changes of items during the term
Balance at March 31, 2011

Valuation and translation adjustments

Income taxes—current

6,385

6,960

Income taxes—deferred

180(1,644)

Minority interest in earningsof consolidated subsidiaries

108

49

¥14,355¥10,474

Net income

Unrealized gain Deferred gains or
Revaluation
on securities
losses on hedges reserve for land

Balance at March 31, 2010

¥5,361¥—¥7,597

Foreign currency Total cumulative Minority interests
translation
other comprehenadjustments
sive income¥(2,323)¥10,634¥2,491

Total net common
assets¥160,316

Changes of items during the term
Dividends from retained earnings—(4,910)Net income—

14,355

Net increase in treasury stock

—

(52)

Gain on sales of treasury stock—

61

Millions of yen

Reversal of revaluation reserve for land—2

Fiscal 2010

Net changes of items other thanshareholders’ equity

(502)

(6)

(2)

(1,149)(1,660)70(1,589)Total changes of items during the term

(502)

(6)

(2)

(1,149)(1,660)70

7,866¥4,858¥(6)¥7,594¥(3,473)¥8,974¥2,561¥168,182

Liabilities¥153,410¥150,689

Notes and accounts payable, trade

48,36445,499

Short-term bank loans

44,632

48,709Commercial paper

16,000

9,000

—

—

44,41447,480Long-term liabilities

80,45389,401

Corporate bonds

25,00025,000Long-term debt

28,92937,866

Valuation difference on
available-for-sale securities

Other long-term liabilities

26,523

26,534

Deferred gains or losses on hedges

Current liabilities

Consolidated Statement ofComprehensive Income
AmountCurrent portion of corporate bonds
Other current liabilities

Account item

Income before minority interests

Balance at March 31, 2011

Other comprehensive income

Shareholders’ equity

156,645

147,190

Foreign currency translation
adjustments
Share of other comprehensive
income of associates accounted
for using equity method

Common stock

36,99836,998

Total other comprehensive income

Capital surplus

49,29249,303Comprehensive Income

Retained earnings

73,99764,550(Breakdown)

Treasury stock, at cost

(3,642)(3,662)

Valuation and translation adjustments

8,974

10,634

Minority interests

2,561

2,491

Total net assets

168,182

160,316

Total liabilities and net assets¥402,046¥400,407

Total liabilities

233,864

240,091

Net Assets

13

DENKA CSR REPORT 2011

¥14,463

Comprehensive income attributableto owners of the parent
Comprehensive income attributableto owners of the minority interests

(521)
(6)
(1,149)(1,642)

Consolidated Statements of Cash Flows (Summary)AmountFiscal 2010

Fiscal 2009

Net cash provided by operating activities¥ 33,780¥ 46,418

Net cash used in investing activities(23,763)(28,377)

Net cash used in financing activities(10,554)(17,262)

Effect of exchange rate changes on cash and cash equivalents

(118)

(40)

Net increase in cash and cash equivalents

(655)

738

Cash and cash equivalents at the beginning of the year

6,815

6,077

Cash and cash equivalents at the end of the year

6,160

6,815

Account item

34

¥12,821

12,697
123

Millions of yen

DENKA CSR REPORT 201114

Reference

Reference

Site Reports 2011 Omi Plant

Site Reports 2011 Omuta Plant

Omi Plant

Omuta Plant

ProfileProfileAddress: 2209 Omi, Itoigawa, Niigata
Telephone: +81-25-562-6105
Employees: 790 (as of March 31, 2011)
Major products: Inorganic materials: Cement, special cement additives, calcium
carbide, lime, calcium cyanamide and ALSEN (alumina fiber)
Organic materials: Chloroprene rubber, DENKA POVAL and monosilane
Pharmaceuticals: High molecular hyaluronan
Others: Eel farms
Operations: Since our establishment in 1921, we have maintained unique carbide
chemical operations that exploit abundant in-house assets. These include Mount
Kurohime, with its five billion metric tons of limestone reserves, and an in-house hydropower generation capacity of 180,000kW. Our broad product range includes calcium cyanamide, chloroprene rubber and cement. In recent
years, we have diversified into inorganic fine chemicals and pharmaceuticals. We continue to develop our business to meet new and diverse
challenges in chemicals.

Address: Shinkai-Machi 1, Omuta, Fukuoka
Telephone: +81-944-52-1055
Employees: 616 (as of March 31, 2011)
Major products: Inorganic materials: Carbide, calcium cyanamide, FIRELEN, alumina
cement (for refractories) and special cement additives
Organic materials: DENKA BLACK
Electronic materials: Fused silica filler, silicon nitride, boron nitride, aluminum nitride,
ceramic electronic circuit substrates, thermally conductive sheets and metal/ceramiccompounds and fluorescent materials for LEDs
Operations: Established in 1916, the Omuta Plant is DENKA’s oldest plant, and the firstto manufacture carbide and calcium cyanamide. Since that time, as a production baseof inorganic chemical products based on the proprietary electric furnace, high-temperature control and nitride technologies, the Omuta Plant
has introduced a number of unique products. In recent years, we have entered the fine ceramics and electronic materials fields. Today, we
contribute to the development of the electronics, automotive and numerous other industries.

CSR Policies

CSR Policies

General Manager’s Policies

General Manager’s Policies

Working in unison to become a highly competitive main plant<Safety>
We all wish to achieve a zero accident, zero disaster and zero occupational illness plant. Let’s
make the Omi Plant a cheerful and competitive workplace by complying with safety rules andpracticing ho-ren-so (reporting, contacting and consultation).
<Environment> Fully aware of our target to pursue lasting trust as an outstanding manufacturer, we will engage in
RC activities.
<Quality>
Aiming to secure and improve quality from customers’ point of view.

Addressing objectives to achieve targets stipulated in the CS13 plan, the Omuta Plant has stepped up its efforts tofurther develop the plant and contribute to society while promoting the improvement and development as a manufacturing plant for electronics products.

Environmental, Safety and Quality Policies

Akihiko Okuda
Executive Officer,
General Manager of
Omi Plant

Fiscal 2010 Achievements and Fiscal 2011 Initiatives●Communication with local societies
In prompt response to local residents’ requests, we issued reports covering
environment-related information while reflecting the results of analysis of thisinformation in the operation of the plant. In addition, we communicated our environmental and security initiatives on a regular basis to local communities and thevarious organizations concerned about our business operations with the aim ofgaining the trust of the local community.
●Local cleanup activities and environmental improvement
We proactively participate in cleanup activities in the local area, for example, theHimekawa River Cleaning Mission, Tomigawa River Mouth Cleaning Mission, andothers along the Omi river and roads around the Plant. As for environmental
improvement activities in and around the plant site, we are currently refurbishing
the perimeter fence.
●Local disaster prevention activities
Aiming to reinforce collaboration with local municipalities and to fully prepare thedisaster prevention system, we conduct fire drills on a routine basis, including comprehensive emergency drills at Himekawa Port, combined emergency drills with the
Itoigawa City fire companies, and comprehensive emergency drills at the Plant.
●Local youth development
Guided by a spirit of welfare aimed at supporting mental health care for young people and revitalizing local societies, “The Fureai Trio—Kyoko Yoshida and Her
Fellows” concerts were held at the Omi and Yamatogawa elementary schools aswell as at the Omi Cultural Center. DENKA supported those concerts held in the
Itoigawa area.

Guided by a spirit of welfare, “The Fureai Trio—Kyoko Yoshida and Her
Fellows” held concerts at the Omi and Yamatogawa elementary schools as well asat the Omi Cultural Center that were aimed at supporting mental health care foryoung people and revitalizing the local community. DENKA supported those concerts held in the Itoigawa area.
To deepen the understanding of the Omi Plant, we proactively invite local elementary schoolchildren for plant tours and participate in the Youngsters’ Science
Festival in Niigata.
Fiscal 2011 Initiatives● We implemented monitoring training (including pointing and calling, greeting others, etc.) as the “Basics of Safety” for managers with the aim of disseminating
activities aimed at improving communications. It is hoped that this will enable us
to achieve zero occupational accidents, disasters and illness.
● Following up on the achievements of fiscal 2009, we attained zero emissions infiscal 2010. Aiming to further reduce harmful substance emissions, we will continue to strive to improve and maintain conditions of the local environment. In
addition, we will continue to build trust through the careful consideration of dialogue with local communities.
● Adopting new technologies, we will strive to reduce the use of energy andresources, while making efforts on an individual basis to prevent global warming(for example, reducing the use of office paper and turning off lights).
● We will maintain product safety and enhance and stabilize production processes
to meet customer needs.

Environmental Performance
Units

Energy consumption indicator unit
CO2 emissions (from energy sources)
PRTR substance emissions
NOx emissions
SOx emissions
Soot and dust emissions
Water used
COD (BOD) discharges
Waste
Final waste disposal

Compared with fiscal 1990
10,000 ttttt
1,000m3ttt

Fiscal 2007

Fiscal 2008

Fiscal 2009

Fiscal 2010

●Communication with the local community
The Omuta Plant employees participate in the Omuta Daijayama
Festival in summer, while carrying out volunteer activities, suchas blood donation and cleaning in tandem with local community

organizations biannually in spring and autumn. In addition, we invite
people in neighboring communities to take plant tours and holdchemistry classes for local children to facilitate understanding of ourplant operations and products.
Fiscal 2011 Initiatives• We will continue to cut environmental burdens, mainly industrial
waste, and strive to achieve zero emissions in 2011 for the second consecutive year.
• We will further improve and develop the Omuta Plant to be an“open plant” as a production base for electronic products.

Omuta Daijayayama Festival

Chemistry class for children

0.95
104
43
4,220
1,510
137
69,0001,600
79,900
1,470

0.95
93
17
3,870
1,340
108
66,800964
82,800
2,330

0.94
76
16
3,030
740
140
64,7001,100
74,700
240

0.97
76
12
2,750
120
103
66,3001,570
84,400160

Fiscal 2011 targets

Item

Units

0.99
76
6
2,500
10
120
—
920
77,000137

Energy consumption indicator unit
CO2 emissions (from energy sources)
PRTR substance emissions
NOx emissions
SOx emissions
Soot and dust emissions
Water used
COD (BOD) discharges
Waste
Final waste disposal

Compared with fiscal 1990
10,000 ttttt
1,000m3ttt

Note: Totals of individual figures in this and other tables may not be exact because we rounded down fractions. The totals for this table match the figures in the Input and Output section on CSR Report 2011 p. 22.
We registered under the Japan government’s pilot emissions trading scheme in December 2008, so for CSR Report 2009 we calculated energy intensity and CO2 emissions based on the coefficients standards of the voluntary action plan of Nippon Keidanren, recalculating figures for previous reports, which we had based on the coefficients of the amended Law Concerning the Rational Use of Energy.

DENKA CSR REPORT 2011

Fiscal 2010 Achievements and Fiscal 2011 Initiatives

Environmental Performance

Item

15

(1) Maintaining Safety, Security and Health
Based on initiatives undertaken as a team to instill knowledge of the basics of safety in employees, we reinforced ourcommitment to a safety-oriented work environment with zero disasters or accidents, while promoting the development of a cheerful and vibrant workplace by invigorating communications.
Shohei Tamaki
Senior Executive Officer(2) Further Pursuing RC Activities
General Manager ofThrough the entire production process, from raw materials procurement, manufacturing and storage to distribution,
Omuta Plant
usage and disposal as well as in our R&D activities, each employee will address objectives to improve the global environment and contribute to society, including local communities.
(3) Reinforcing On-Site Capabilities—Better Customer Satisfaction
Promoting quality improvement activities encompassing the “advancement of technologies to improve quality” by product and “raisingawareness of employees engaged in manufacturing,” we will secure stable production underpinned by consistent quality and enhanced
yields to achieve better customer satisfaction.

Fiscal 2007

Fiscal 2008

Fiscal 2009

Fiscal 2010

0.91
12
8
1,160
2
4
1,300
1
8,982
1,190

0.92
11
6
770
1
5
1,308
1
9,345
420

0.92
9
6
1,000
2
3
1,190
1
6,861
133

0.91
11
17
1,120
1
3
1,310
1
8,670
71

Fiscal 2011 targets

0.89
11
6
1,120
1
4
—
1
7,000
60

Note: Totals of individual figures in this and other tables may not be exact because we rounded down fractions. The totals for this table match the figures in the Input and Output section on CSR Report 2011 p. 22.
We registered under the Japan government’s pilot emissions trading scheme in December 2008, so for CSR Report 2009 we calculated energy intensity and CO2 emissions based on the coefficients standards of the voluntary action plan of Nippon Keidanren, recalculating figures for previous reports, which we had based on the coefficients of the amended Law Concerning the Rational Use of Energy.

DENKA CSR REPORT 201116

Reference

Reference

Site Reports 2011 Chiba Plant

Site Reports 2011 Shibukawa Plant

Chiba Plant

Shibukawa Plant

ProfileProfileAddress: 6, Goi-Minamikaigan, Ichihara, Chiba
Telephone: +81-436-26-3200
Bibai Subplant: 1-1 Higashi-Gojo-kita, 10-chome, Bibai, Hokkaido
Telephone: +81-126-62-1444
Employees: 463 (as of March 31, 2011)
Major products: Organic materials: Styrene monomer, polystyrene,* ABS resin,transparent resins, heat resistance resins, CLEAREN styrene-butadiene block* Product of an affiliated company
copolymer, vinyl acetate monomer and DENKA ER
Plastic products: Food packaging, construction materials and vinyl tape
Operations: This facility is one of Japan’s top styrene monomer plants, and is reinforcing
such styrene operations as polystyrene and ABS resins. While reinforcing petrochemicalrelated businesses, it also focuses on such functional plastic products as transparent plastic and CLEAREN DENKA ER and plastic processed products.

Address: 1135 Nakamura, Shibukawa, Gunma
Telephone: +81- 279-25-2109
Employees: 437 (as of March 31, 2011)
Major products: Electronic materials : Thermally conductive materials, HARDLOC andHARDLOC OP/UV adhesives, DENKA HITTPLATE high thermal-conductivity aluminum
substrates, DENKA LaB6 CATHODE electron and ion emitters, ELEGRIP dicing tape,back grinding tape, THERMALLY CONDUCTIVE SHEETS, ELETHERMAL
Operations: Since 1951, the Shibukawa Plant has developed as a production base forvinyl chloride resins. In 1976, the plant began manufacturing HARDLOC structural
adhesive and, in 1984, changed its business domain as it entered into full-scale participation in the electronic materials business. Currently, the plant focuses on the production of electronics-related products, encompassing electronic circuit substrates, thermal materials, emitters, structural adhesives andsemiconductor processing-related products, contributing DENKA’s growth as a key organic electronic materials production base.

CSR Policies

CSR Policies

General Manager’s Policies
Under the DENKA100 management plan, which sets out goals to be achieved by 2015—the Company’s 100th anniversary—we are
simultaneously promoting CHIBA50 activities to commemorate the Chiba Plant’s 50th anniversary. Under the latter initiative, we aim tobecome a plant that always creates value.
1. Attaining zero accidents through continuing efforts aimed at ensuring safe and stable operations (workplace communications, safetymeasures for individuals and equipment, promotion of security activities)
2. Reviewing, studying and developing new fundamental businesses for the next 50 years
3. Reinforcing our organizational foundation and passing on technologies to nurture young engineers through human resource development and the operation of techno schools
4. Advancing production technologies by reinforcing on-site capabilities and stabilizing quality
5. Pursuing CS13-based plant activities “strengthening, restructuring and reorganizing of existing businesses”
6. Consider corporate social responsibility (CSR)—legal compliance, environment consciousness and product safety)

General Manager’s Policies
Aiming to become a plant that meets the needs of the electronic materials business we are further accelerating our efforts.
Basic Policies
1. Undertake safety activities focused on risk management
Zero occupational injuries, zero distribution accidents in the safety environment, and thorough compliance
2. Smooth start of CS13
Reinforcing on-site capability by improving technology to pursue better quality
3. Raising awareness of quality, safety and cost as well as developing human resources at the Shibukawa techno school

Shotaro Fujii
Senior Executive Officer,
General Manager of
Chiba Plant

Environmental, Safety, and Quality Policies<Environment> We will consider the environment in all processes, from product development, manufacturing and distribution to usage, final consumption anddisposal. We will build an environmental management system.
<Safety>
We want all plant workers to recognize the importance of maintaining a safe and healthy workplace. We aim to achieve a healthy, safe andcheerful manufacturing plant that fully recognizes and implements necessary security management systems as a license holder for highpressure gas handling, boiler operation and first-class pressure vessel operation while complying with relevant laws and regulations. We willachieve zero accidents through continuing system improvement for security management as well as safety and health management, both ofwhich are essential to a healthy, safe and cheerful workplace, while implementing safe and stable operations.
<Quality>
We will strive to secure and enhance product quality to gain the trust of customers by consistently offering satisfying products.

Fiscal 2010 Achievements and Fiscal 2011 Initiatives●Security and Disaster Prevention
We applied for the renewal of the licensing of a safety inspection expert for the highpressure gas plant and were recertified as an “appropriate” license holder. As a hostcompany of the marine disaster prevention workshop offered by the Minami Koshi Bay
Ship Safety Association, we held a joint workshop with local companies focusing on
measures against marine accidents that included a tour to observe oil barriers extended
from a ship. During the period under review, we received a commendation from the Japan
Petrochemical Industry Association, and a person of merit award for safe operations fromthe High Pressure Gas Safety Institute of Chiba Prefecture.
●Occupational Safety
As the Chair of the Safety Expert Committee of the Goi Disaster Prevention
Countermeasures Council, we promoted safety activities with other member companies,
held mental health care lectures for managers and provided guidance counseling by industrial physicians. Furthermore, we held safety classes and an in-house forklift handling training seminar.
●Community Engagement
As a member of the Environmental Conservation Association of Chiba Prefecture, we
conducted environmental awareness-raising activities at the Eco Fair Ichihara. During
Environmental Month as well as a plant tour for local elementary school students, cleaned
up the stretch of National Route 16 that runs in front of the plant and operated a stall at
the Goi Rinkai Festival, deepening exchanges with local residents. We also issued ageneral invitation during the Eighth Regional Dialogue meeting in the Chiba district to anyone wishing to attend a plant tour, and approximately 80 people, including academic
experts, university students and local representatives, signed up.
●Social Contributions
Traffic Safety: As a member of the Ichihara Area Safe Driving Management Association, we
instructed employees on issues related to traffic safety and participated in a seatbelt campaign during Traffic Safety Week. We also cooperated in the development of technology
for measuring buoyant particle substances (PM2.5/10) at soot and smoke-emitting facilities and in boiler exhaust gas.
Fiscal 2011 Initiatives
We will promote CHIBA50 activities to commemorate the Chiba Plant’s 50th anniversary
while engaging in CSR activities.
We will also continue to proactively improve our security management, ISO 9001,
ISO 14001 and OHSAS 18001 systems. Together with this, in our role as an industrial
complex we will work in close liaison with government bodies, other companies, councils
and local residents to promote security and disaster prevention activities. Fulfilling roles,
obligations and responsibilities as a good corporate citizen, we will faithfully engage inbusiness operations fully aware of the fact that all of our production activities carry “social
responsibility.”

Environmental Performance
Units

Energy consumption indicator unit
CO2 emissions (from energy sources)
PRTR substance emissions
NOx emissions
SOx emissions
Soot and dust emissions
Water used
COD (BOD) discharges
Waste
Final waste disposal

Compared with fiscal 1990
10,000 ttttt
1,000m3ttt

Fiscal 2007

Fiscal 2008

Fiscal 2009

Fiscal 2010

Executive Officer,
General Manager of
Shibukawa Plant

Fiscal 2010 Achievements and Fiscal 2011 Initiatives●Initiatives in waste emissions
In fiscal 2009, we achieved an emissions ratio of 0.93%, attaining zero emissions. In fiscal 2010, the figure was improved to 0.61%.
●Educational session involving simulating danger and training for the safe
operation of forklifts
With the aim of eliminating possible serious accidents, such as employees
being caught in rollers as well as forklift-related accidents, we conducted an
educational session that involved in hands-on training in July 2010 and training sessions for the safe operations of forklifts in May 2010 and January
2011.
●Experimental science class
As part of exchanges with the local community, we invited approximately 70
local elementary school students and their parents to hold experimental science classes in July 2010 and March 2011. Starting with a plant tour to intro-

0.85
510
153
508
209
8
9,730
24
21,997
211

0.93
370
120
355
76
3
9,690
22
15,412
124

0.85
440
109
436
116
5
9,700
17
17,431
98

0.87
430
86
444
129
5
9,700
23
18,30040

Fiscal 2011 targets

Item

Units

0.86
481
71
444
88
6
—
20
18,00064

Energy consumption indicator unit
CO2 emissions (from energy sources)
PRTR substance emissions
NOx emissions
SOx emissions
Soot and dust emissions
Water used
COD (BOD) discharges
Waste
Final waste disposal

Compared with fiscal 1990
10,000 ttttt
1,000m3ttt

Note: Totals of individual figures in this and other tables may not be exact because we rounded down fractions. The totals for this table match the figures in the Input and Output section on CSR Report 2011 p. 22.
We registered under the Japan government’s pilot emissions trading scheme in December 2008, so for CSR Report 2009 we calculated energy intensity and CO2 emissions based on the coefficients standards of the voluntary action plan of Nippon Keidanren, recalculating figures for previous reports, which we had based on the coefficients of the amended Law Concerning the Rational Use of Energy.

DENKA CSR REPORT 2011

Kazuyuki Koyama<Environment> We will continue to reduce environmental burdens by conserving resources and energy, cutting CO2 emissions andwaste generation, maintaining zero emissions and reinforcing the management of chemical substances. Together
with this, we will aim to operate in harmony with the community through the interaction.
<Safety>
With the keywords “eliminating human error” and “enhancing each individual’s risk prediction capability,” we will promotedisaster prevention and security risk reduction by further reviewing hazard source countermeasures, with a focus on eliminating human error at each section, applying risk prediction and using the pointing-and-calling method before operations.
<Quality>
Continuing to secure and improve product quality, we will offer reliable products that satisfy customers on a timely basis.

duce electronic microscopes and air shower, the event had a number ofclasses where the children could make their own plastic bottle or super ball, avery bouncy rubber ball. Also, DENKA’s TEMPLOC was demonstrated, bringing an exciting time for participants to experience the world of chemistry. The
experimental science class is planned to be held in fiscal 2011 and beyond
on a regular basis.
Fiscal 2011 Initiatives
As part of our environmental activities, we will strive to reduce environmental
burdens by conserving resources and energy while cutting CO2 and chemical
substance emissions. For safety activities, we will aim to achieve zero occupational injuries and zero distribution accidents.
In addition, we aim to deepen community understanding of the Company
and contribute to society by participating in local events, holding experimental
science classes and engaging other activities, such as hydrangea planting
and drainage ditch cleaning.

Environmental Performance

Item

17

Environmental, Safety and Quality Policies

Fiscal 2007

Fiscal 2008

Fiscal 2009

Fiscal 2010

1.00
1
5
9
25
1
2,700
3
552
13

1.08
1
4
8
23
1
3,430
4
453
6

0.85
1
5
6
16
1
2,520
3
503
5

0.74
1
6
10
10
0
2,580
3
479
3

Fiscal 2011 targets

0.70
1
5
9
25
1
—
3
335
3

Note: Totals of individual figures in this and other tables may not be exact because we rounded down fractions. The totals for this table match the figures in the Input and Output section on CSR Report 2011 p. 22.
We registered under the Japan government’s pilot emissions trading scheme in December 2008, so for CSR Report 2009 we calculated energy intensity and CO2 emissions based on the coefficients standards of the voluntary action plan of Nippon Keidanren, recalculating figures for previous reports, which we had based on the coefficients of the amended Law Concerning the Rational Use of Energy.

DENKA CSR REPORT 201118

Reference

Reference

Site Reports 2011 Ofuna Plant

Site Reports 2011 Isesaki Plant

Ofuna Plant

Isesaki Plant

ProfileProfileAddress: 13-1, Dai 2-chome, Kamakura, Kanagawa
Telephone: +81- 467-45-1110
Employees: 225 (as of March 31, 2011)
Major products: Resins and plastic products: Including synthetic fibers for wigs, packaging materials, and functional films
Operations: Our product lineup is the fruit of advanced capabilities drawing on ejection
molding, adhesion coating and film production technologies. We are DENKA’s prime
production unit for plastic products. We develop and manufacture such offerings as
TOYOKALON synthetic fiber for top global wig and hairpiece brands, packaging tapesthat include hand-cuttable and printing tapes, laterally stretched Calalyan Y polyethylene
film and polyvinylidene fluoride DX Film.

Address: Isesaki Plant: 245, Nishigawara, Naganuma-cho, Isesaki, Gunma
Telephone: +81-270-32-1251
Isesaki Plant (Ota): 3015 Serada-cho, Ota, Gunma
Telephone: +81-276-52-4111
Employees: 268 (as of March 31, 2011)
Major products: Electronic materials: DENKA THERMOSHEET EC, DENKA Thermo
Film ALS and other carrier tape, trays and cover tape for semiconductor and electronic
components processes
Functional materials and plastics: Styrene Sheet, CLEAREN sheet and stretch film, andDenka DX film used in solar cell module back sheets
Operations: This plant manufactures sheets and films from polystyrene, vinyl chloride
and other raw materials. The Ota facility has the greatest production capacity in the
Orient for these products. We supply food and electronic packaging materials that meetstringent requirements for performance and quality management, and are endeavoring
to bolster our processing technologies while developing value-added offerings.

CSR Policies
General Manager’s Policies
Philosophy: We aim to contribute to and prosper with the community of Kamakura, which abounds with cultural,
historical and environmental legacies.
Goals:
We will contribute to the community and corporate progress by making the environment, safety andquality our top priorities.
1. Reduce our environmental footprint by conserving energy and cutting waste
2. Comprehensively manage safety relating to raw materials, products, logistics and disposal and continue
to engage with the community

CSR Policies

Tatsuhiro Aoyagi

Environmental, Safety, and Quality Policies

Senior Executive Officer,
General Manager of
Ofuna Plant<Environment> • Comply with laws and ordinances and enhance environmental awareness• Act in line with medium-term environmental plan and improve performance• Contribute to the community<Safety>• Deploy full-fledged initiatives that ensure underlying safety• Create a vibrant and healthy workplace<Quality>• Continue to improve raw materials, processes and product management to pursue and maintain high quality●We conducted complete cleanups of the plant and nearby streets on
the third Wednesday of each month.
●We deepened our interactions with local residents mainly by making
the square in front of the plant’s main gate available for a festival heldin July by a nearby neighborhood association. We also set up foodstands and an employee band performed during this event.

A comprehensive emergency drill(November 22)●We held a Safety Announcement Meeting to raise safety consciousness.
●We implemented special training for operating cranes, leading to thebuilding of a structure for “cultivating safety-conscious employees
who do not get hurt or cause others to be harmed.”

Fiscal 2011 Initiatives
Based on the philosophy, “We aim to contribute to and prosper with thecommunity of Kamakura, which abounds with cultural, historical andenvironmental legacies,” we promote dialogue and interaction with thelocal community. Particularly in terms of our activities to reduce waste,
we aim to reduce environmental burdens by curbing waste generation
through better yields and by improving our emission ratio based onefforts to separate waste.

<Environment> Conserve energy and resources, ensure distribution safety
and harmonious coexistence with local communities<Safety>
Undertake risk assessments and ensure that no accidents
or disasters occur<Quality>
Improve quality and swiftly and accurately meet customer
needs●Security and Disaster Preparedness
We hold evening on-call drills for
those with the rank of assistant manager or above while working to raise
employee awareness about proper
conduct during emergencies.

An evening on-call drill●Safety Education
Given that the plant undertakes numerous types of roller-related operations,
we provide wide-ranging safety education for operators. We continued toinvite outside instructors to train employees in how to conduct safety verification routines that involve pointing and calling while providing hands-on training
related to getting caught in rollers.
In addition, we conducted training
for managers to provide pointersregarding the 5Ss (seiri, seiton, seiso,
seiketsu and shitsuke, or sorting,straightening, sweeping, standardizing and self-discipline).

Toshiharu Kano
●Social Contributions
As part of our social contribution efforts, all employees routinely engage in cleanup activities in cityparks and along the roads in theplant’s immediate vicinity. In addition,
we established a monthly “beautification day” initiative with the aim ofmaking areas within the plant more
attractive. All of these initiatives help
keep the plant and adjacent areas
clean.

Executive Officer,
General Manager of
Isesaki Plant

Employees cleaning up a sidewalk near the plant

Fiscal 2011 Initiatives
We will continue to promote environmental preservation measures while placing the highest possible priority on complying with relevant laws. In particular,
we have positioned the following as important initiatives: the reduction ofwaste; conservation of energy and resources; and ensuring distribution safety
primarily by improving processing technology. Moreover, we will contribute to
the local community through ongoing beautification activities in areas surrounding the plant. Regarding health and safety, we are creating a positiveand comfortable workplace mainly by promoting measures to prevent laborand equipment-related accidents, lifestyle diseases, heat stroke and mental
problems.

Environmental Performance

Item

Units

Energy consumption indicator unit
CO2 emissions (from energy sources)
PRTR substance emissions
NOx emissions
SOx emissions
Soot and dust emissions
Water used
COD (BOD) discharges
Waste
Final waste disposal

Compared with fiscal 2002
10,000 ttttt
1,000m3ttt

Fiscal 2007

Fiscal 2008

Fiscal 2009

Fiscal 2010

0.81
1
1
4
0
0
71
0
194
13

0.80
1
1
2
0
0
70
0
211
22

0.94
1
1
1
0
0
87
0
188
22

0.79
1
1
2
0
0
86
0
199
30

Fiscal 2011 targets

0.80
1
1
2
0
0
—
0
184
18

Note: Totals of individual figures in this and other tables may not be exact because we rounded down fractions. The totals for this table match the figures in the Input and Output section on CSR Report 2011 p. 22.
We registered under the Japan government’s pilot emissions trading scheme in December 2008, so for CSR Report 2009 we calculated energy intensity and CO2 emissions based on the coefficients standards of the voluntary action plan of Nippon Keidanren, recalculating figures for previous reports, which we had based on the coefficients of the amended Law Concerning the Rational Use of Energy.

DENKA CSR REPORT 2011

1. Ensure safety and health
2. Reach CS13 objectives
3. Improve customer satisfaction
4. Promote the creation of environmentfriendly products

An intensive, hands-on roller-related training session

Environmental Performance

19

Environmental, Safety, and Quality Policies

Fiscal 2010 Achievements and Fiscal 2011 Initiatives

Fiscal 2010 Achievements and Fiscal 2011 Initiatives●We implemented comprehensive emergency drills to ensure preparedness in case of fireGeneral Manager’s Policies

Item

Units

Energy consumption indicator unit
CO2 emissions (from energy sources)
PRTR substance emissions
NOx emissions
SOx emissions
Soot and dust emissions
Water used
COD (BOD) discharges
Waste
Final waste disposal

Compared with fiscal 2005
10,000 ttttt
1,000m3ttt

Fiscal 2007

Fiscal 2008

Fiscal 2009

Fiscal 2010

0.99
1
0
0.3
0
0
320
0
0.2
28

1.02
1
0
0
0
0
326
0
0.2
0

0.99
1
0
0
0
0
358
0
0.2
12

0.97
1
0
0
0
0
412
0
0.2
0

Fiscal 2011 targets

0.98
1
0
0
0
0
—
0
0.2
55

Note: Totals of individual figures in this and other tables may not be exact because we rounded down fractions. The totals for this table match the figures in the Input and Output section on CSR Report 2011 p. 22.
We registered under the Japan government’s pilot emissions trading scheme in December 2008, so for CSR Report 2009 we calculated energy intensity and CO2 emissions based on the coefficients standards of the voluntary action plan of Nippon Keidanren, recalculating figures for previous reports, which we had based on the coefficients of the amended Law Concerning the Rational Use of Energy.

DENKA CSR REPORT 201120

Reference

Reference

Site Reports 2011 R&D

Site Reports 2011 Overseas

Denka Singapore Pte., Ltd.
Merbau Plant

Central Research InstituteProfileAddress: 5-1, Asahi-cho 3-chome, Machida, Tokyo
Telephone: +81-42-721-3611
Employees: 94 (as of March 31, 2011)
Center Overview: The Central Research Institute began operating at its current site
after DENKA relocated its Meguro Research Center from its Meguro-ku, Tokyo, location in 1962. The facility has created numerous basic technologies for inorganic andorganic chemicals, petrochemicals and plastic products as the spearhead of DENKA’s
product innovation. Serving as a focal point for DENKA’s R&D efforts, the institute willconcentrate on R&D initiatives based on medium- to long-term themes in order toaugment its research capabilities related to large, next-generation products and basic
technologies.

ProfileEmployees: 31 (as of March 31, 2011)
Operations: The Merbau Plant was DENKA’s first production facility in Singapore. We established thisplant in 1980 to participate in the Singapore Petrochemicals Complex project. The complex is locatedon Jurong Island, where we manufacture DENKA BLACK. We began operating our 50% press facility in
1984, upgrading it in 1997. We set up a granulation facility in 2002. Owing to its superior liquid absorption, electrical and thermal conductivity properties and high purity, DENKA BLACK is used worldwide in
dry manganese and lithium-ion batteries, power cables and semiconductor packaging materials.

CSR Policies
General Manager’s Policies

CSR Policies“Cohesion as one lively team”
Safety: Eradicate careless accidents and maintain safety
Quality: Ensure quality management by improving manufacturing processes
Production: Maintain optimal production
Maintenance: Improve maintenance activities
Distribution: Undertake optimal inventory management by ensuring optimal distribution within the Jurong Island

General Manager’s Policies
In line with our motto, “the newly reformed Central Research Institute promotes R&D to create future-oriented,
next-generation products,” we are:
1. Encouraging coordination among divisions and plants while clarifying the Central Research Institute’s functions
2. Promoting new product development
3. Generating new themes to meet next-generation markets
4. Undertaking environmental and safety initiatives

Fiscal 2010 Achievements and Fiscal 2011 Initiatives

Environmental, Safety, and Quality Policies
Based on Companywide safety and health plans, the Central Research Institute works to continuously improve
Plan-Do-Check-Act (PDCA) cycles while expanding its involvement in volunteer activities that conform to thecircumstances of individual workplaces. Such activities are intended to maintain the institute’s environmental
preservation and safety and health initiatives. The main activities of each department involve promoting thedevelopment of positive workplaces that are accident, disaster and illness free. These efforts are carried out inaccordance with administrative action plans that follow the Fundamental Policies listed below.
1. Fundamental policies for responsible
care activities:• Encourage initiatives to counter global
warming• Promote efforts to contribute to society• Prevent environmental accidents

2. Fundamental safety and health policies:• Eliminate such safety-related accidents as
explosions and fires• Eradicate labor-related accidents• Prevent occupational diseases

Norihiro Shimizu
Senior Executive Officer
General Manager ofCentral Research Institute

3. Fundamental product quality-related
policy• Improve quality at the new product development stage

Fiscal 2010 Achievements and Fiscal 2011 Initiatives
Safety and health activities are carried out regularly based on the motto:“maintaining an honest commitment to common sense.” Accordingly,
we steadily undertake safety activities that include maintaining
environmental management systems (EMS), effectively raising safety
awareness, regularly conducting fire drills involving our in-house firefighters and jointly holding comprehensive fire drills with the MachidaFire Department. As a result, the Central Research Institute won theSpecial Safety Award on May 27, 2010, at the 34th Grand Prix Safety
Awards, sponsored by the Japan Chemical Industry Association (JCIA)and Japan Responsible Care Council (JRCC). In fiscal 2010, theinstitute acquired a model promotion workplace designation from theTokyo Labour Bureau and continued to proactively implement risk
management to prevent accidents.
We aggressively promote interactions with the local community andsocial activities. Accordingly, the Central Research Institute hosted tours
for approximately 80 third graders from Machida Dai-San Elementary
School on June 17, 2010 and
120 third graders from
Machida Dai-Yon Elementary
School in October 22, 2010.
These educational field trips
mainly included an up-close
look at the testing facilities andStudents from the Machida Dai-Yon Elementary School inTokyo taking a tour of the Central Research Institute

21

DENKA CSR REPORT 2011

Denka Singapore Private Limited
Hong Leong Building, 16 Raffles Quay #18-03, Singapore 048581
TEL：65-6224-1305

the opportunity to observe objects through electron microscopes,
activities that inspired the students to ask many unique questions.

Yoshiteru Yamazaki
General Manager ofMerbau Plant

In fiscal 2010, we engaged in various activities that included voluntarily producing a safety guidance video and holding safety-related competitions. At a safety conference, we held a forklift driving safety competition.
In fiscal 2011, regular repairs of the Singapore Petrochemicals Complex (housing eight companies) will be undertaken. As a member of this complex, the plant will work to comply with safety and environmental standards throughcoordinated efforts with the other member companies. To this end, the Merbau Plant is planning to engage in a largescale construction project.

Seraya Plant
ProfileEmployees: 63 (as of March 31, 2011)
Operations: The Seraya Plant commenced operations to produce general-purpose polystyrene in
1998. The plant was expanded in 2006 to manufacture TX Polymer methyl methacrylate styrene
copolymer resin and CLEAREN styrene-butadiene block copolymer. Currently the plant’s three manufacturing facilities have an annual production capacity of 300,000 metric tons. We are constructing afacility to produce imidized polymers (IP), which is scheduled to commence operations in 2012.
Consequently, the Seraya Plant is expanding into the DENKA Group’s largest petrochemical and polymer production base.

Fiscal 2011 Initiatives
Regarding our ongoing safety and health activities, we will work to avoid
all accidents and disasters, mainly by steadily maintaining our EMS aswell as developing occupational health and safety management
systems.
In fiscal 2011, we plan to rebuild the Central Research Institute’s
main facility in anticipation of our centennial. Featuring more spacious
exhibition spaces, preset tour guide routes, presentation rooms andother facilities, the new and more open main facility will encourage
greater communication with the local community. Under the concept ofbeing environmentally friendly, the new facility will be installed with anarray of energy-efficient equipment to reduce CO2 emissions. Suchdevices include solar power
generators as well as LED
lighting and air conditioners
equipped with motion sensors
in addition to such recycling
systems as toilets that use
rainwater.

CSR Policies
General Manager’s Policies
1. Maintain zero-accident record
2. Maintain compliance3. Achieve a better working environment
4. Educate employees and strengthen our organization

Fiscal 2010 Achievements and Fiscal 2011 Initiatives• We acquired OSHAS18001 certification.
• We completely shifted from paper to plastic bags

Sadao Kawamura
Deputy Managing
Director,
General Manager ofSeraya Plant

Fiscal 2011 Initiatives• We will provide training related to the chemical plant’s operations• We will promote and investigate energy- and resource-reduction measures based on improved manufacturing processes.
• We will acquire ISO 28000 certification.

The Central Research Institute being presented with
the Special Safety Award for maintaining operations
free of accidents that required lost work days for 17
years (May 27, 2010)

DENKA CSR REPORT 201122

Reference

Reference

Site Reports 2011 Overseas

Site Reports 2011 Major Affiliates

DENKA Advantech Pte., Ltd.
Tuas Plant

Denka Advantech Private Limited
16 Raffles Quay #18-03, Hong Leong Building, Singapore 048581
TEL: 65-6224-1305

Major Affiliates
DENKA Polymer Co., Ltd.

http://denkapolymer.co.jp

ProfileProfileEmployees: 60 (as of March 31, 2011)
Operations: The Tuas Plant, established in 1991 in Singapore, produces fused silica filler, a material
mainly used as a sealant for semiconductor packaging. Currently, the Tuas Plant’s focus is on sphericalfused silica filler to accommodate advances in semiconductor packaging as well as the trend toward
more environmentally friendly products, and it is striving to enhance quality and reinforce production.
Working in cooperation with the Omuta Plant, the Plant supplies products mainly to China andSoutheast Asia.

Address
Head Office: 12-8 Kiba, 5-chome, Koto-ku, Tokyo
Telephone: +81-3-5245-3641
Plants: 3 in Chiba Prefecture (Sakura, Goi, Katori)
Employees: 367 full-time and 147 part-time (as of April 1, 2011)
Major Products: OPS products, PSP food trays, food containers, SOFLIGHT
products, packaging wrap and agricultural packs

CSR Policies

Fiscal 2010 Achievements and Fiscal 2011 Initiatives

General Manager’s Policies

At the start of fiscal 2010, we established an environmental policythat aims to reduce energy use, environmentally harmful substance(CO2) emissions and waste generation. At the same time, we aredeveloping and reinforcing the supply of environmentally friendly,
safe and reliable products that promote further cutbacks in packaging weight and reduce customers’ generation of CO2.
Our efforts resulted in an average 8.3% reduction in productweight, mainly PSP and OPS, compared with fiscal 2004. Owing toour energy conservation efforts, we recorded an overall 1.6%
improvement in energy consumption intensify at all business sites—
particularly at three plants—compared with the fiscal 2009 level.
With regard to the Koto-ku-based recycling business in which
we have been participating since fiscal 2009, we joined a commission investigating expanding the applications of recycled polystyrene foam pellets, improved the quality of recycled pellets,developed processing methods for non-white pellets and ingots
made from colored trays, supported the expansion of the useof recycled pellet for building materials in Japan, improved the

1. Going back to basics, we will secure plant security and employee safety
2. Promoting energy and resource conservation, we will reduce environmental burdens
3. We will reduce customer complaints and pursue better customer satisfaction by controlling risks
4. We will develop a supply system that meets market demands and technological trends
5. We will make cost reduction efforts by improving production processes and technologies

Fiscal 2010 Achievements and Fiscal 2011 Initiatives
Toshiyuki Kageyama
During fiscal 2010, we strived to raise employee awareness of safety by making an in-house safety
General Manager ofvideo, conducting fire drills and in-plant patrols and proactively participating in external seminars.
Tuas Plant
Safety education is being carried out using the abovementioned safety video, KYT sheets andexternal instructors, and we are promoting 5S activities.
<Environment> We saved electricity by enhancing productivity and shifting to energy-saving lighting. In addition, we recycled flexible containers and wooden pallets and began to partially reuse plastic pallets. In fiscal 2011, we will continue to reduce environmental burdens mainly by conserving electricity and recycling packaging materials.
<Quality>
We conducted quality risk assessments and improved production processes mainly to address the issue of foreign matter
contaminating products. We will further promote measures to reduce risks.

<Safety>Denka Advanced Materials (Suzhou) Co., Ltd.

DENKA SEIKEN Co., Ltd.

Employees: 58 (as of March 31, 2011)
Operations: In January 2006, this company was established as DENKA’s first production and sales
subsidiary in China since World War II. The company manufactures carrier tape for electronic packaging and micro-slit products, while responding to domestic users’ demand for higher quality.

ProfileCSR Policies
General Manager’s Policies
1. Bolster safety initiatives to maintain our zero-accident record.
2. Improve production techniques and quality management, reduce the number of complaints about quality
3. Maintain the workplace environment and ensure strict compliance.
4. Undertake education and drills, continue to work to upgrade workplaces

Fiscal 2010 Achievements and Fiscal 2011 Initiatives●Security and disaster prevention
Yuichi Kadoya• To raise employee awareness of disaster prevention, we invited an external instructor to hold an educational seminar
Deputy Director,
regarding prevention and countermeasures against fire.
General Manager• Regarding disaster prevention measures at the Plant, we identified danger spots needing improvement and inspecting firefighting equipment.
●Occupational safety• Each day, before work begins, employees gather to recite an inspiring slogan.
• More than once a month, management-level and above personnel conduct safety patrols to identify danger spots needing improvement.
●Environment• Aiming to reduce waste generation, we constantly strive to improve manufacturing yields.
Fiscal 2011 Initiatives
In fiscal 2011, we will continue to enforce disaster prevention measures, secure occupational safety and reduce waste generation while striving to
improve the capabilities of all employees. To achieve this goal, we will step up our focus on compliance with environment-related laws andregulations.
DENKA CSR REPORT 2011

President

environment inside the recycling facilities and stepped up the
employment of handicapped people.
Fiscal 2011 Initiatives
Following up on our efforts in fiscal 2010, we will continue to proactively promote environmental improvement activities. As part of such
efforts, we will bolster the development and supply of environmentally friendly, safe and reliable products, while reducing resource use
and environmental burdens by developing new products andupgrading existing products to lower packaging weight. Amid the
expected trend toward deteriorating operational efficiency due to
the Japanese government’s request to save electricity, we will strive
to further conserve energy by carrying out an appropriate production plan and efficient production activities. In cooperation with the
Koto-ku recycling business, we will develop new applications (pointof-purchase panels and other building materials) and prepare forfacility improvement, including of equipment for cleaning collectedtrays.

Address: Unit 9B Modern Industrial Square, No. 333
Xingpu Road, Suzhou Industrial Park, Suzhou China
Telephone: +86-512-6287-1088

Profile23

Shinji Sugiyama

http://www.denka-seiken.co.jp

Address
Head Office: 4-2 Kayaba-cho, 3-chome, Nihonbashi, Chuo-ku, Tokyo
Telephone: +81-3-3669-9091
Plants: Gosen City, Niigata (Niigata Plant, Kagamida Plant)
Employees: 550 (as of April 1, 2011)
Major Products: Influenza vaccines, bacteriological diagnostic reagents,
virological diagnostic reagents, clinical chemistry diagnostic reagents, immunological diagnostic reagents, point of care testing (POCT) productsShigetoshi Toyooka
President

Fiscal 2010 Achievements and Fiscal 2011 Initiatives
In the area of safety and health activities, we conducted risk assessments to prevent major accidents. We also invited external instructors to provide mental health as well as safety and health education
for plant general managers and managers to ensure a more comfortable workplace.
On the environmental front, we are promoting activities toreduce environmental burdens and preserve the environment basedon the ISO 14001 environmental management system. As part ofour community engagement, we donated a bus, an importantmeans of transportation for local people, to Gosen City as part ofthe commemoration of our 60th anniversary. In addition, we cleaned
irrigation channels around the Niigata Plant. Furthermore, we invitedneighborhood association representatives to join a plant tour andmeeting held to facilitate the exchange of opinions and thus foster
more friendly ties.

In terms of social contribution, we participated in the Niitsu
Labor Standards Association as a member of the board, and strived
to disseminate and promote health and welfare activities among
local participating companies. We also continue to participate in the
Gosen Gender Equality Council, an organization that investigatesand deliberates on the establishment of ordinances of Gosen City,
to deliver our opinions.
Fiscal 2011 Initiatives
We will continue to focus on safety, health and environment preservation activities to prevent major accidents and disasters. Together
with this, we will strive to further deepen communications with local
communities to become a company that society can rely on.

DENKA CSR REPORT 201124

Reference
Site Reports 2011 Major Affiliates

CRK Corporation

http://www.crk.co.jp

ProfileAddress: 306-banchi, Koyagi-cho, Takasaki, Gunma
Telephone: +81-27-362-7510
Employees: 65 (as of April 1, 2011)
Major Products: Rubber compounds, industrial rubber products, thermal
expansion fire-resistant rubber products, butyl adhesive tape, water swellingleakage stop rubber tape and quakeproof manhole joints
Haruo Kimura

Fiscal 2010 Achievements and Fiscal 2011 Initiatives• Continued to reduce waste generation and landfill waste• Reinforced the separation of waste rubber, while promoting thermal recycling infiscal 2010. Accordingly, the amount of landfill waste dropped 70% from the previous fiscal year.
• Continued to improve the safety level at work, we reviewed the basics of our safety operations and raised the awareness of all employees

President

Fiscal 2011 Initiatives• We will promote safe operations based on risk assessments• We will hold skills improvement training seminars for site supervisors• We will reduce CO2 emissions by shifting to LPG for fuel upon the renewal of boilers• We will lower the amount of electric power we draw from the grid from 3,000V to
400V and thus improve safety• We will conserve energy during summer and pursue a more comfortable work
environment

Hinode Kagaku Kogyo

http://www.hinode-kagaku.co.jp

ProfileAddress: 660 Aza Kuratani, Maizuru, Kyoto
Telephone: +81-773-75-5760
Employees: 44 (as of April 1, 2011)
Major Products: YORIN (fused magnesium phosphate), TORETARO (fused silicate
phosphate fertilizer), mixed fertilizer, chemical fertilizer
Shizuo Takagi

Fiscal 2010 Achievements and Fiscal 2011 Initiatives
Aiming to contribute to society and facilitate employees’ self-fulfillment through fertilizer production

Presentation about risk assessment results

Setting up a smoking room

President• Trial practice of risk assessment• Commenced the establishment of separate smoking areas as a means to improve
the work environment• Upgrading the quality management system by adopting the ISO concept• Promoting the 5Ss in our Good Company Program Initiatives• Proactively participating in in-house and local cleaning activities
Fiscal 2011 Initiatives
Aiming to contribute to society and facilitate employees’ self-fulfillment through fertilizer production• Dissemination of risk assessment• Reviewing checkup procedure of laws and regulations• Preparing for the acquisition of the KES environmental management system certificate

DENKA Azumin Co., Ltd.

http://www.denka-azumin.co.jp

ProfileAddress: 118, 5 Chiwari, Nimaibashi, Hanamaki, Iwate
Telephone: +81-198-26-2131
Employees: 26 (as of April 1, 2011)
Major Products: Azumin (magnesium humate fertilizer)

CSR Initiatives
Major Activities• We maintained our zero-accident record• We worked to safeguard the environment• We built relationships of trust with local residents

Fiscal 2010 Achievements and Fiscal 2011 Initiatives●Maintained a zero-accident record• Due to the occurrence of a no-shutdown disaster, our record of accident-freedays stands at 1,943. Under the leadership of the Risk Prediction and NearAccident Committee as well as the Safety Patrol Committee, we took safety measures. Currently, we are aiming to achieve 1,000 consecutive accident-free days.
• One of our employees received an award from the Hanamaki City Association for the
Safety of Hazardous Materials for the excellent handling of hazardous materials.
●Environmental activities• We conducted energy conservation activities that included turning off all lights
during work breaks, ensuring that no one could forget to turn the lights off andmaintaining room temperature at an appropriate level when using air conditioners
or heaters.
• We were able to gain a full understanding of the Plant’s energy consumption byusing an energy monitoring system. Based on the acquired data, we will reduce
the energy use.

25

DENKA CSR REPORT 2011

Mamoru Nakamura
President●Building relationships of trust with local communities• We conducted a plant visit and information exchange with the Nimaibashi
Committee for Pollution Prevention Measures• On the assumption of nitric acid leakage, we carried out a fire drill with a local firestation. Inviting neighboring companies and local residents to come to view thedrill, we were able to deepen their understanding of our safety activities.
●Environmental preservation activities based on the Hanamaki City Pollution
Control Agreement• We reported that all air, water and noise pollution as well as vibration from ourfacility were within the limits of an accord with Hanamaki City.
Fiscal 2011 Initiatives• Maintaining a zero-accident record: We will make across-the-board efforts to conduct safe operations• Passing on production techniques to younger generations: We will strive to eliminate operational troubles by enhancing on-the-job trainings• Streamlining in-plant logistics: In tandem with subcontractors, we will promote
appropriate cargo control and legal compliance