Column

No.

The DenkaWay Autumn

Gunbai

13

The monument to our predecessors,which is shaped like a Möbius strip to represent eternity

Buddhism, opened an Esoteric Buddhist dojo in the mountain-top basin,surrounded by the peaks of Wakayama Prefecture.
The whole Mt. Koya area, which includes 117 temples, forms the Head
Temple Kongobuji Temple. As a sacred site representing Japanese Buddhism, it was registered as a UNESCO World Cultural Heritage site in 2004.
Mt. Koya, which has long been a place of worship, is also home to thetombs of famous warlords such as Oda Nobunaga and Toyotomi Hideyoshi
as well as numerous memorial towers for Edo period feudal lords andleading Japanese companies.
In 2015, when Denka celebrated its 100th anniversary, it erected a memorial
tower for the deceased as a monument to our predecessors at Mt. Koya. It
exists to pray for the souls of our predecessors who served Denka and laid
the foundations for 100 years. Coincidentally, 2015 also marks the 1200th
anniversary of the founding of Mt. Koya. The monument to our predecessors

Möbius strip, whose unbroken shape symbolizes eternity and represents awish for Denka’s continued prosperity. A list of 3,500 deceased persons is
support of many people since it was erected.
The monument to our predecessors has become a deeper shade of bronze
with the passage of time and has begun to blend into the ethereal worldof Mt. Koya. Denka will continue to remember the achievements of ourpredecessors and pray for the further development of the company.

The Seraya Plant began operations in 1997 asa polystyrene resin manufacturing site. Currently,
as Denka’s core resin manufacturing site, it
produces three types of resin: MS resin, SBC
resin (Clearen), and imidized resin (IP).

Unauthorized
reproduction prohibitedstored under the pedestal, and the monument has been maintained with the

Cover PhotoNight view ofDenka Singapore's Seraya Plant

Published: October 1, 2022/ Publisher: Corporate Communications Dept., Denka Co., Ltd. / Editor-in-chief: Hiroyuki Yamamoto /Nihonbashi Mitsui Tower, 2-1-1 Nihonbashi-muromachi, Chuo-ku, Tokyo 103-8338

Mt. Koya, “The Holy City in the Sky.” Kukai, the founder of Shingon

The bronze object at the center of the monument to our predecessors is a

2022

Vol.

13

Vol.13The Mt. Koya Memorial
Tower, A Monument to
Our Predecessorsthat Kukai remains alive in a state of eternal meditation.

Autumn2022

Memorializing Denka’s predecessors

is located near the Okunoin Kobo Daishi Mausoleum, where legend has it

The DenkaWay

Growing with Singapore
Contents
2 Amazing the World with Innovation
Growing with Singapore

11 Challengers for Denka Value-Up
On the Frontline of the Threefold Value-Up

15 Think INNOVATIONThe Secrets of Approaching Work with a Positive Mindset
by Jon Kabira, Radio Personality / Anchorperson / Narrator

16 A Specialist’s Perspective
17 DENKA TOPICS
18 With You, With Denka.
20 Gunbai Column

Growing
Singapore
Denka
1960

2

History of Singapore

1991 T uas Plant completed. Production of
fused silica commenced

2006	Production of Clearen SBC resin and MS
resin commenced at Seraya Plant

 erbau Plant completed. Production
1984 Mof acetylene black commenced

1997 S eraya Plant completed. Productionof polystyrene resin commenced

2009 D enka Chemicals Holdings Asia PacificPte. Ltd. (DCHA) established as a regional
headquarters

1989 M erbau Plant completed. Productionof acetylene black commenced

History of Denka in Singapore

Singapore1980	Denka Singapore Pte. Ltd. (DSPL)
established1965	Singapore established as anindependent republic
1967 Singapore Dollar goes into use

1980
1989 S ingapore and parts of Indonesia
and Malaysia launch the Triangleof Growth project, a cross-bordereconomic zone initiative

1990

2000

1991	Singapore announces the Strategic
Economic Plan, an eight-part
economic strategy based on along-term vision through 2030
1993

First presidential elections

with2009 C ompletion of Jurong Island, an artificial
island located to the southwest of themain island of Singapore

with Innovation

Fifteen years after Singapore became an independent republic in 1965, Denka was
one of the first Japanese chemical manufacturers to establish a presence in the country.
It started with acetylene black and gradually expanded to various other products,
including spherical silica, a semiconductor encapsulation material filler with a global share,and spherical alumina, which is widely used as a high thermal conductivity/heat dissipationmaterial for lithium-ion batteries and other parts in xEV and 5G applications.
In this special feature, we will cover Denka’s challenges
as it moves forward together with Singapore.

2012

2021	MS resin production facility starts operation at Seraya Plant

Production of Denka IP commenced at Seraya Plant

2013	South Plant completed. Production of Toyokalon®
commenced

2022	New spherical alumina production facilities begin full-scale
operations at Tuas Plant

2016	Denka Life Innovation Research Pte. Ltd. (DLIR) established as a life science research center

2024	Spherical silica production facilities to be expanded at Tuas
Plant

2017	Launch of Project Falcon, a five-year project to reform
production and operations using digital technology tocreate smart factories

2010

2020

2010 First casino opened
2007 Immigrant population exceeds 1 million

Amazingthe2013	Completion of LNG (liquefied natural gas) receiving
terminal on Jurong Island
2014	Opening of Jurong Rock Caverns, Southeast Asia’s firstunderground oil storage facility

2020 S ingapore announces Research, Innovation and Enterprise 2025 Plan,a five-year plan (2021-2025) formulated by the Research, Innovationand Enterprise Council (RIEC), a public-private partnership under the
National Research Foundation (NRF), under the Prime Minister’s Office2021

Singapore announces Green Plan 2030

INTERVIEWWest area

Jurong East

About Singapore

Micho Kawamura
Managing Director
DCHA/DSPL/DAPL
Executive Officer

A central area in the western part of Singapore
where many shopping malls and other facilities
are located. There are plans for a bullet train
from Kuala Lumpur, Malaysia to connect to thestation at Jurong East.

A suburban area where many Japanese companies have established operations. The DAPL
Tuas Plant is located in the Jurong Industrial
Estate, one of the largest clusters of factories
and warehouses in Southeast Asia.

ProfileJoined the company in 1990. After working at
the Chiba Plant, he was assigned to Singapore
in 1997. Involved in the launch of Seraya
Plant. Afterwards, put in charge of styrene resin
manufacturing at Chiba Plant. In 2011, hereturned to Singapore as the Managing Directorof Seraya Plant. Assumed his current positionin April 2022.

Singapore

The Key to Sustainable Growth in Singapore Is
National Staff
The Singapore bases are closely collaborating topromote the three Value-Up initiatives

To that purpose, we are sending management cadets to plants in JapanOn September 20, 1980, Denka expanded into Singapore to strengthenthat veteran staff have acquired over the years, we will promote the efficient

production of acetylene black, which was used in manganese dry cell batteriestransfer of techniques and skills.

and high-voltage cable sheaths. Since then, we have been expanding ourJurong Islandto acquire skills and taking on the challenge of knowledge management
using digital technology. By visualizing the knowledge, tricks, and intuition
An artificial island completed in 2009. It isconnected to the main island by a 2.3-kmlong land bridge. It contains a petrochemicalcomplex and is the largest chemical and energy
hub in Southeast Asia.

The third is to achieve carbon neutrality through Environment Value-Up.

business using our proprietary technologies and currently manufacture seven

Natural resources are limited in Singapore, so environmental measures areproducts at four plants. Furthermore, Denka Life Innovation Research Pte. Ltd.

important. We are currently focusing on the possibility of installing solar panels(DLIR), a life science research center established in 2016, is taking on theas one method of reducing CO2 emissions. We are also implementing a variety

challenge of developing products to combat tropical infectious diseases.

of other initiatives, including discussing the possibility of using more recycled

A center of biochemistry R&D in Asia. Locatedclose to the National University of Singapore, it
is home to numerous public research institutes
and private companies from around the world.

1 Tuas Plant

2 Seraya Plant

Our watchword is “Improve & Upgrade”

Manufactures fused silica filler, which ismainly used for semiconductor encapsulationmaterials and 5G and xEV applications.

Manufactures three types of resins on
Jurong Island, with an annual production
capacity of 205,000 tons.

for spherical alumina and expansion of facilities for spherical silica at the Tuas

It has been over 40 years since we launched the Singapore business.

Plant. In recent years, demand for semiconductor-related products and 5G and

We have overcome many difficulties, including soaring oil prices and theNo. of staff: 86(Main products: Spherical silica, spherical alumina)

No. of staff: 91(Main products: MS resin, Clearen SBC
resin, imidized resin (IP))

xEV mega-trend applications has been growing rapidly, and as a production

bankruptcy of the Lehman brothers. The key to sustainable growth here inbase close to China and South Korea, we must be ready to meet overseas

Singapore will undoubtedly be the national staff. I tell my national staff thatdemand.

they can replace “Value-Up” with “added value.” Denka does not produce

3 Merbau Plant

4 South Plant

Manufactures acetylene black, which ischaracterized by high purity, high conductivity, and high thermal conductivity.

Manufactures Toyokalon® synthetic
fiber, mainly for African wigs andhairpieces.

No. of staff: 36(Main product: acetylene black)No. of staff: 34(Main product: Toyokalon®)

5 JTC Summit

6

Regional headquarters. Responsible for accounting andback-office functions for the Singapore bases.

R&D center of the Life Innovation Division. Responsible for the development of products and diagnostics
for tropical infectious diseases.

Currently, each of our bases in Singapore is working on initiatives in line

materials with our suppliers.

Denka Advantech Pte. Ltd. (DAPL)

with the three Value-Up initiatives set forth in the management plan while
sharing information with each other. Our first goal is to improve profitability
through Business Value-Up. Our primary example is the launch of new facilities

Another important measure to improve profitability is Project Falcon, amany final products. However, our materials are used to make many othersmart factory conversion plan that has been underway since 2017. We willproducts that support our daily lives, from automobiles to packaging materials.

strive to reduce production losses by stabilizing operations through digital

Our efforts to improve productivity and environmental friendliness may not betechnologies and strengthen first-mover sales by building a common platform

immediately noticeable, but they will lead to the creation of new added value

with our customers for supply chain management.

required by the SDGs and sustainability and ultimately to the delivery of indis-

The second is to ensure the sustainability of the Singapore businessthrough Human Resources Value-Up. From September 2022, Singapore will

Denka Singapore Pte. Ltd. (DSPL)

Denka Chemicals Holdings Asia Pacific Pte.Ltd. (DCHA)

pensable products to people around the world.
At our Singapore bases, we often use the phrase “Improve & Upgrade.”tighten the requirements for issuing work visas to foreign workers. To ensure

Each and every one of us will continue to pursue sustainable business inthe stable continuation of our Singapore operations in the future, we must

Singapore with this phrase in mind.

No. of staff: 41

The Denka Way | 2022 Autumn

Denka Singapore Pte. Ltd. (DSPL)

Denka Advantech Pte. Ltd. (DAPL)

Denka Life Innovation Research Pte. Ltd.
(DLIR)

No. of staff: 13

transfer the tasks traditionally handled by Japanese staff to our national staff.
4Biopolis*Staff numbers as of March 31, 2022

2022 Autumn | The Denka Way

5

Project Falcon
Further productivity improvement through smart factories

In 2017, a smart factory plan titled Project Falcon was launched with the support of the Singaporean government,
and in the latter half of 2021, Project Falcon 2.0 was launched to further promote DX.
We asked Deputy Managing Director Horio for an explanation of the project.

Katsuji Horio

Launching Project Falcon 1.0
with the Singaporean
government

business environment.

ProfileThe important thing ismaintaining the changes

advanced revenue/expense analysis based on the
Supply Chain Management of Project Falcon 1.0.
Anaplan is a cloud system for project managementthat we introduced at Seraya Plant to improve the

In November 2017, we launched Project Falcon, aefficiency of planning-related operations. Moving

smart factory project for our four plants in Singa-

forward, we are planning to apply the know-how

pore. The plan was to tackle four areas—Digital

gained from this system to the Merbau Plant andInfrastructure, Digital HSE, Digital Plant, and Supply

other production bases involved in the acetylene

Chain Management—over a five-year period

black business.

2

analysis-centric planning operations
to enable detailed profit-and-loss

Connected
Customermanagement (forward-looking).

*DX Strategy at Denka Singapore. For
the purpose of establishing a businessstructure that can maintain Denkaʼsquality in any business environment
through DX.

New sales and marketing strategies
to create an infrastructure to further
retain customers and promote businessgrowth.

The goal of Project Falcon is not to implement digital
tools; it is to establish a system that ensures the safe
and stable execution of factory operations. To that
end, the important thing is whether or not we canmaintain these reforms. We will aim to establish a

Project Falcon 1.0

culture in which all employees can continue taking
on challenges to improve productivity with a senseof satisfaction and create an organization that canmaintain the changes.

1

new sales and marketing strategy suitable for thetion. Since then, we have been striving to improve

With Corona era. About 99% of our customers in

productivity and reduce costs and downtime bySingapore are overseas, so we were faced with the

installing sensors on plant equipment, establishingquestion of how to communicate our technologies

preventive and predictive maintenance systems,

and products to our overseas customers after theand visualizing planning tasks that had become too

pandemic. Currently, all sales offices in the resin

dependent on specific personnel. The process is notbusiness are working together to share current

yet complete, but as of November, we had achieved

issues and customer needs, and we are seeking to

an 8% reduction in power consumption, a 20.4%

establish new sales and marketing strategies utilizing

Employees are fitted with radio

reduction in monthly inventory, and an 8% improve-

digital technology.

movement triggers an accident alert.

3

4

at the plants, and a DSN core toaccumulate planning system data were
implemented.

Digital HSE
identification tags, and a lack of
The tags also help to prevent contact
with forklifts.

Supply Chain
Management

4

Smart
Manufacturing

Network
Operations

Realization of factory operations that

Realization of location-agnostic opera-

ensure robust quality regardless oftions through paperless and automatedchanges in the business environment

operations.

through the use of digital technology.

Introduced Anaplan, a cloud system forplanning and income/expense analysis,
to promote real-time sales and production planning and more sophisticatedincome/expense analysis.

playing an increasingly large role due to stricter visa
This won’t happen overnight, but we will do our best

four new pillars of Synchronized Planning, Connect-

to complete this project and achieve a sustainable

ed Customer, Smart Manufacturing, and Networkorganization.

The Denka Way | 2022 Autumn

storage to accumulate data collected3and convert their skills into data. With national staff

We are now promoting further activities under thepromote real-time sales and production planning andadditional Wi-Fi in the plants, cloud

Factor Avatar, a project to interview veteran staff

requirements, it will be essential to pass on skills.

Synchronized Planning refers to an initiative to

Infrastructure enhancements such as

Under Smart Manufacturing, we are promoting

Project Falcon 2.0 was launched in October 2021.

Operations.

DigitalInfrastructure

DATA
SERVER

Connected Customer is about establishing agovernment, which was eager to promote digitaliza-

Further DX throughProject Falcon 2.0

Project Falcon 2.0

Standardization and automation of(2017 – 2022) with the backing of the Singaporean

ment in yield.

6

Synchronized
Planning

operations to flexibly respond to changes in the

Deputy Managing Director
Technology Division, DCHA
Joined Denka in 1990. Worked in the Chiba Plant
Manufacturing Dept., Research Dept., Production Control Section, Internal Auditing Dept., and IT/Digital Dept.
before assuming his current position in July 2021.

1

Finally, Network Operations is an initiative topromote paperless and automated administrative
operations. We are aiming to realize location-agnostic

2

Digital Plant

Project Falcon timeline
2017

2018

Goals
2019

Project Falcon 1.0

2021/102024

Project Falcon 2.0

Sensors were installed on plant equipment to predict abnormalities in advance. Digitalization of measuring instruments andonline simulations to estimate the physical properties of products
at the manufacturing stage were also implemented.

Project Falcon was launched with the supportof the Economic Development Board (EDB) in
recognition of its alignment with the Singapore
government’s national growth strategy.

In the course of the project,labor productivity and costs were
calculated, and a project plan wasdeveloped.

The four pillars of Digital Infrastructure,
Digital HSE, Digital Plant, and Supply
Chain Management were established.

Project Falcon 2.0 launched in October
2021. New DX reforms initiated in addition to conventional business reforms.

3% reduction in energy consumption
5% reduction in plant downtime
10% reduction in maintenance costsin supply chain/
15% reduction
logistics costs
15% increase in labor productivity
2022 Autumn | The Denka Way

7

Story #1

Denka Singapore’s DX goals

Current focus

Previous situation

Level 1

Level 2

Level 3

Scattered information

Collection and visualization of information

Creation of a digital assistant

Further smartification

Implementation of AI

More advanced utilization of data

Unorganized digital data

Collecting andorganizing operating
status data andpast reports

Paper materials

PDF
PDF

Smart Manufacturing

Factory Avatar

Visualization of information for staff

Passing on
Stableknowledge andmanufacturing Quality control
skillsTroubleshooting
Causefor each process identification

Veteran staff’s expertise is being digitalized
at the same time.

A system that supports optimization of facility
operations while continuing to learn

A search engine suggests optimal solutions
and related information.

Simulation

Unspoken expertiseof veteran staff

Different formats and storage locations
makes information difficult to access

Optimization by Understanding Facility Conditions
through DX and Data Visualization

Visualization of facility operating
conditions to predict troubles

utilized by the operators. “We’ve been collecting validdata, but it hasn’t been shared with or effectively

A digital assistant that will continue to learn in the future

utilized by the system engineers. There is room for

Jeffrey Tok
Production Head
Seraya Plant, DSPL

8skills of veteran staff to have the system learn fromcontinue to learn in the future.

human expertise. Currently, they are interviewing
engineers of various generations working at the

Applying Smart Manufacturing toeach process in the plant

One of the pillars of Denka’s Singapore’s DX strategy

improvement.” With this idea in mind, Jeffrey and theIn addition to monitoring facility operating conditions,

Seraya and Merbau plants. The interviews take the“Denka DX 2024” is Smart Manufacturing. In the

project members began to consider how to visualize

they are also working on the smartification of theform of specific troubleshooting scenarios that mightprevious Falcon 1.0 project, they carried out an

the data to make full use of the information.

system through the Factory Avatar project. Underoccur at the plants. “We’re not just interested in the“A search engine that suggests optimal solutions

this project, they are building a system that digitalizes

procedures,” Jeffrey stresses. “We want to know why

and related information. This is what we ultimately

initiative called Digital Plant, which involved installing

After building the system, the operating condition

sensors to accurately monitor plant facility operating

data was organized so that it could be displayed on

expertise and provides suggestions on how tothe engineer might choose to take a specific action

want to achieve,” Jeffery says. It sounds like a

conditions with the aim of reducing costs, energy

a dashboard, allowing the engineers to understand

improve facility performance. This system will enable

in a certain situation.”dream come true, but there are still problems in

consumption, and downtime. For Smart Manufactur-

the situation at a glance. By checking the dashboard,

engineers to make more informed decisions. Jeffrey

ing, they are aiming to further optimize operations by

they can ascertain problems, say, an inefficient

explains, “We would like to develop a digital assistantpassing on knowledge and skills to the younger

is needed to create the database? How can theyWith the average age of engineers on the rise,coming up with a concrete plan, he says. What

training national staff, passing on knowledge held byprocess, and then adjust settings to optimize it.

that will allow any operator, regardless of their experi-

generation is a major challenge. By verbalizing andimprove the accuracy of the search engine? AndPROFILE

veteran engineers, and upgrading maintenance “fromThrough “visualization of information” and “visualence level, to maintain optimal operating levels.”

accumulating the knowledge and intuition of veteranafterwards, it will also be essential to properly train

Joined the company in June 2013. After
spending three years at the Chiba Plant tostudy manufacturing, quality control, and process development, he returned to Singapore
in 2016 and started working at Seraya Plant.
Since assuming his current position in 2021,
he has been involved in promoting digitaltransformation (DX) for monitoring plant facilities and leading the project “Factory Avatar.”preventive to predictive.”judgment and manual adjustment,” they are now able

To make appropriate judgments on technical

The Denka Way | 2022 Autumn

What does “from preventive to predictive”

staff in a database format, younger engineers will be

the staff to handle the system. The benefits of Smart

to predict problems in advance and prevent themtroubles occurring on the chemical line, AI andable to continue learning from it. At the same time,

Manufacturing can be applied to all processes;

from happening.

machine learning functions must be implemented

the next generation of staff can add new know-how

not only manufacturing and maintenance, but also

and adjusted through a control system. In the past,

to learn from operating data and past reports andand know-why about a wider range of troubles.

quality control and warehouse operations. With thisdata on the operating status of each facility was

accumulate case studies. The project members

Thus, instead of being a mere repository of data, thein mind, they will explore the best ways to achieve

only recorded in the system and was not effectively

are also attempting to collect the knowledge andsystem can become a living digital assistant that willsafer and more efficient operations.

mean? Plant operating conditions are monitored

2022 Autumn | The Denka Way

9

Story #2
Before Anaplan

After Anaplan

Each department’s staff prepared documents individually,
and information was not shared in a timely manner.

Using Anaplan, information can be shared instantly. Data
collection, processing, and calculations are automated,making operations more efficient.

Sales

PlantsSales forecasts

Sales

Production plan

PlantsSales forecasts
Demandinformation

Raw material
pricesBudget control

Cash
Income/expense
management
simulations

ProductionplanAnaplanProcurement

Order
management

Accounting

Production planning(raw materials,
maintenance, etc.)

Demand Raw material
pricesinformation

Production
results

Income/expensesimulations
Cash
Budgetmanagement
control

Deliverymanagement

Order
management

On the Frontlineof the Threefold

Accounting

Yuki Shintani
General Manager, Sales
DSPL Styrene Products Sales

ProfileJoined the company in 2012. After
working in the Functional Resins
and Chemicals Section of the Osaka
Branch, he was transferred to Singapore in 2016, where he was put incharge of sales and purchasing. He has
been involved in developing Anaplan
since 2020.

Amazingthewith Innovation

10

The Denka Way | 2022 Autumn

are striving to realize the threefold growth vision
introduce Denka’s bases in Singapore.

Delivery
Procurement management

Lifting a new reactor into
the air prior to erecting it

Operations

Business

Value-Up

Visualizing Sales and Production Planning in the CloudCentralized Management from Raw Material Procurement toIncome/Expense Analysis

The Seraya Plant, one of Denka’s major resin
manufacturing sites, has successfully reformed supply
chain management operations by using a cloudsystem to improve the efficiency of sales and production planning for demand, inventory, and production
management. This has resulted in real-time planningand more sophisticated income/expense analysis.
In 2020, the Seraya Plant introduced Anaplan,a cloud system dedicated to business management
and financial planning. The reason was that certain
tasks were becoming too specialized. While there
were many veteran staff members, the numberof operations based on rules of thumb and habits
had been increasing, making it difficult to pass on
knowledge and experience.
In an attempt to solve these problems, sales andproduction planning was transferred to Anaplan sothat it could be carried out in real-time. Anaplan has
more than 40 data items representing raw materialpurchases, sales forecasts, inventory levels, andproduction plans. All of the forms are connected, so,for example, if the expected sales volume and ship-

In this segment, we focus on the worksites that

Value-Up

Supply Chain
Management
Realization of real-time operations
and smooth collaboration withother departments

Singapore“Denka Value-Up.” In this fourth edition, we will

Inventory
management

Operations

No.

04

ment dates are entered, the system will automaticallycalculate the amount of raw materials required.
It also allows for more sophisticated income/expense analysis. Previously, an accountant had to
calculate all the income and expenses, but Anaplan
automatically displays monthly income and expenses
and their details, allowing the user to check thebudget and actual results for each customer at a
glance. The introduction of Anaplan has standardized
operations, centralized information, and contributed tothe elimination of specialized tasks.
These changes have also led to a change in
employee awareness. “The introduction of Anaplan
has given everyone a sense of ownership,” explains
Shintani, General Manager of Sales. By gaining an
overall picture of the business, employees are able tovisualize their own roles and contribution to the bottom line, which makes them feel more responsible. It
has also made it easier to grasp the situation in otherdivisions, bringing the divisions closer together.
More than 90% of sales and production planning
operations have been converted to real-time. Moving
forward, they will work on establishing income/expense simulations to further improve analysis andfurther strengthen responsiveness to the rapidlychanging market environment.

Conversion of polystyrene production facilities

MS resin

MS Resin Production Capacity DoubledS

eraya Plant converted its polystyrene production facilities to MS resin*1 production
facilities between 2019 to June 2021, with
operations beginning in July 2021.
In recent years, MS resin has been used
for a wider range of applications, such as lightguide plates for LCD TV backlights and cosmetics containers, in China and other countries.
In view of the rapid growth in demand, Seraya
Plant decided to increase MS resin production.
The plant had previously renovated some ofits polystyrene production facilities for MS resin
production in 2006, but all of the employees
involved back then had retired. This would
also be the first renovation project undertaken
solely by national staff. With the help of an EPC
contractor*2, they took on the challenge offacility engineering.
The construction consisted of dismantling
two existing reactors (which were decommissioned later), erecting a new reactor with adifferent design, and replacing a devolatilizer*3.

This work involved hoisting a nearly 30-ton reactor up in the middle of the plant site, and Mujono
recalls that coordinating the safe execution of
the construction work was more difficult than
expected. During the COVID-19 pandemic, it
was difficult to get everyone involved on site,
and they were forced to communicate withthe vendor online for technical discussions.
Nevertheless, they succeeded in reducing theconstruction delay due to the pandemic to six
months. The time from commissioning to startup was also reduced to a few days, which wassmoother than the previous renovation project.
When the new facilities are fully operational,
MS resin production capacity is expected to beapproximately 140,000 tons per year, double
the previous amount. This will make a significant contribution to strengthening Denka’s
specialty business. In preparation for increased
post-COVID demand, they will continue toenhance their competitiveness.

*1 M
 S resin is a high-performance transparent resin, made by copolymerizing styrene and methyl methacrylate (MMA). It is characterized byhigh dimensional stability, low specific gravity, and excellent moldability. DSPL produces MS resin with low contamination and an excellent
appearance.
*2 A contractor responsible for the engineering, procurement, and construction of a project.
*3 A devolatilizer recovers solvents and unreacted monomers from polymers after polymerization.

VOICE

Deepening our expertise andbonds with colleagues
It was very challenging to perform the construction
work with only national staff, especially when mostof us were forced to work from home during the
pandemic. In the chemicals industry, a slight miscommunication can lead to unfortunate accidents,
so we made a point of communicating even more
carefully than when we were at the office. As aresult, our members deepened their technicalknowledge and developed stronger bonds. Seraya
Plant’s MS resin production capacity expansion isan initiative to enhance the specialty products of
the Denka Group’s key operations. We will continue
to rapidly ascertain market needs while striving to
improve quality and specialization to contribute to
Denka Value-Up.
Mujono Yao
DGM, Seraya Plant
DSPL

2022 Autumn | The Denka Way

11

T

Spherical alumina(magnified)Business

Value-Up

New facilities at the Tuas Plant
launched in April

he CO2 Emission Reduction Project was
launched at Denka’s Singapore sites
in May 2022. Under this project, leaders of
the four plants in Singapore and Japanese
expatriates regularly exchange opinions andinformation in order to reduce emissions ofCO2, a major greenhouse gas. Hirokawa, wholeads and manages the project, explains, “Weorganized the project so that all staff members
working at Denka’s Singapore sites have asense of ownership and can make continuous
efforts beyond their departments.”
The basis of this project is Denka’s Environment Value-Up. The initiatives proposed, suchas the installation of solar panels and reductionof energy consumption at each plant, are inline with the “expansion of clean energy use”
and “reduction of greenhouse gas emissions
throughout the product life cycle,” key points ofEnvironment Value-Up.
The Singapore government is also taking
proactive action. It has set the same goals as

VOICEDenka: to achieve carbon neutrality by 2050.
“Building a new facility, for example, requires
us to be mindful of government regulations
relating to high-efficiency energy and waste
management,” explains Fendy, who is in chargeof communicating with the government. “Sosharing information with each stakeholder isessential.”
Regarding the installation of solar panels,
they are facing many difficulties such as strict
installation conditions and lack of space on site.
To solve these issues, the project members
are researching the latest technologies andtrends of other companies by looking intocase studies not only in Singapore but also
in other parts of the world. “When we share
information, we realize that many companies
are facing the same difficulties as we are,” says
Hirokawa. “This project is still in its early stages,
but we are willing to consider a variety of ideas
to achieve great results.”

To take an effective step forward despite
limitations
The energy-derived CO2 emissions of Denka’s four Singapore
plants amounted to approximately 60,000 tons in FY2021,
so an increase in carbon tax by the Singapore government
will significantly increase our costs. In Singapore, it is difficult
to generate hydroelectric, wind, and thermal power, so there
are only a limited number of ways to produce electricity
domestically. To expand the use of solar power generation,a leading source of clean energy here, we will aim to installsolar panels at our plants in FY2023.

Tetsuo Hirokawa
GM, Group Technology
DCHA

Fendy
MD’s Office Leader
Process Safety, Technology &Compliance
DCHA
Exchanging
opinions

New facilities for Spherical Alumina and expanded facilities for Spherical Silica

Environment

Value-Up

Meeting Megatrend Markets Such as xEV and 5GT

he Tuas Plant is expanding its production
capacity of spherical alumina and sphericalsilica, which are widely used in megatrend applications related to 5G (high-speed, high-capacity
data communications) and vehicle electrification(xEV). Due to the pandemic and rapid digitalization in recent years, demand for these products
is growing, and Denka intends to strengthen its
supply through a two-site system, one at the
Omuta Plant in Fukuoka Prefecture and the otherin Singapore.
Spherical alumina is used in lithium-ion
batteries and other devices as a high thermal
conductivity/heat dissipation material. The newfacility at the Tuas plant launched full-scale operations in April 2022, increasing productivity toapproximately five times that of FY2018. Anotheraim was to strengthen BCP (Business Continuity
Planning) by establishing a two-site system with
the Omuta Plant. While travel from Japan wasrestricted due to the pandemic, preparations
were made in collaboration with the Omuta Plant
through daily online meetings and other means.

12

The Denka Way | 2022 Autumn

With the Tuas Plant’s new facilities, Denka will
become the top manufacturer with approximately
60% of the global market share.
It has also been decided to strengthen the
production capacity of spherical silica at the Tuas
Plant in 2024, increasing the Group’s overall production capacity by approximately 30%. Spherical silica is a product used for semiconductor
encapsulation materials due to its insulation properties and low thermal expansion. Currently, it isproduced at two sites, the Omuta Plant and theTuas Plant, and Denka aims to establish a stabler
supply system over the medium to long term to
respond to strong demand in the future.
Denka has identified the environment andenergy fields, especially with relation to xEV
and 5G, as priority areas in its Value-Up plan.
Mr. Iizuka explains, “These are two of Denka’s
specialty products, so increasing their production
volume is in itself a contribution to the Value-Up
plan. Moving forward, we will continue contributing to the growth of the environmental andenergy fields.”

VOICE

More efficient and higher quality
products

Reducing CO2 emissions with the Singapore government

Toward Utilization of Clean Energy

Spherical alumina and spherical silica are products that are

The Singapore government’s policy of raising the carbon tax

used in critical infrastructure around the world, and we are

The tax is levied on companies that produce at least 25,000t-CO2/year of greenhouse gases.

seeing the demand for them increase on a daily basis. We
are keenly aware of this fact and are committed to delivering

Plans of raising
the carbon tax

more efficient and higher quality products to our customers. In(S$/t-CO2)

addition, as part of Project Falcon, the Tuas Plant is also work-

50~80

Members of the CO2Emission Reduction
Project45

ing on business process reforms through digitalization, and25

we would like to share relevant initiatives with other plants.

5
Current 2024–25

2026–27–2030

For solar deployment, theSingapore government has
set a goal of achieving atleast 1.5 gigawatt-peak(GWp) by 2025 and 2
GWp by 2030.

The Singapore government’s actions on environmental issues

Keishi Iizuka Takafumi Komaki Masataka Shima
Plant Manager
Tuas Plant
DAPL

Head of Technology
Tuas Plant
DAPL

Head of Technology
Tuas Plant
DAPL

Carbon neutrality

The initial target of “as soon as viable in the second half of the
century” was changed to “achieving net-zero by 2050.”

Carbon tax

Carbon tax to be raised to five times its current level in 2024.

Jurong Island

Announced target figures in November 2021 to make
Jurong Island, an area with high CO2 emissions, a sustainableproduction and export base

Green Plan 2030

Announced in February 2021. The plan sets five key targets:
City in Nature, Energy Reset, Green Economy, Resilient Future,and Sustainable Living.

2022 Autumn | The Denka Way

13

Think INNOVATION
Introducing articles that provide hints for innovation

No. 13The Secrets of Approaching Work with a Positive Mindset
Jihao is involved in
DX promotion at theworkplace.

Radio Personality / Anchorperson / Narrator

Jon Kabira

Born in Okinawa in 1958. After graduating from university, he joined CBS / Sony Records (currently Sony Music Records).
There, he was assigned to an international relations department, where he was involved in importing record materials and coordinating artist promotions.
He became a radio personality when J-WAVE 81. 3FM was launched in 1988. Since then, he has been involved in a wide range of activities,
including hosting sports, news, and variety shows, appearing in commercials and magazines, and performing on stage. Currently a DJ at J-WAVE - JK RADIO - TOKYO UNITED.

Tuas Plant members(Photographed in
January 2020)

Aloysius aims to
improve product quality
and productivity.

Human Resources

Value-Up

Flexible support in response to motivation for growth

Creating a Competitive Workplace through Diversity

Denka’s bases in Singapore have a markedly international character, especiallyin terms of national staff. There are about
300 staff members from various countries
such as Malaysia, the Philippines, and India.
Of these, approximately 10% are Japanese
staff. Since Denka’s business in Singapore
covers a wide range of supply chains fromupstream to downstream, the job types vary
widely, including R&D, engineers, sales, andmanagement. Each department appropriately
evaluates the motivation and abilities of its
employees and provides ample opportunities
for skill development.
One such initiative is the Management
Trainee System launched in 2013. Under thissystem, new graduates spend a few years at
plants in Japan to learn Denka’s technology,
culture, Japanese language, and other skills
that can be applied to on-site management
upon returning to Singapore. Miida, who
is responsible for human resource management, explains, “Japanese companies
typically spend a lot of time and effort

training up new graduates. We’ve createdthis initiative to provide highly motivated staff
with the same opportunity.”
Jihao, in his seventh year with Denka,
spent three years at the Chiba Plant to learn
techniques from experienced operators.
“Depending on which plant you are at, youlearn different things,” he explains. “It wasa unique experience that you cannot get atschool.” Aloysius, who used the system theyear it was established, recalls, “I developed
the routine of Ho-Ren-So* (報連相) anda focus on harmony.” After returning toSingapore, he always tries to communicate
logically with engineers, carefully explaining
why a certain method was chosen.
“Employee education and training is not
only good for Denka, but also for the society,”
Miida adds. Denka’s bases in Singapore alsooffers flexible support to employees, suchas encouraging them to pursue master’s
degrees at night universities. Moving forward,
they will continue to treasure diversity andprovide fulfilling opportunities for growth.

VOICE

Mobilizing the power of national staff

Quizzing coworkers in between broadcasts

Radio is always with “you”“Let’s have fun! Let’s enjoy ourselves all day long!” I always try to work

More than 30 years have passed since I got into the radio business.

with a positive mindset. It’s completely different from waking up with a

Most radio broadcasts are done live, so there’s a real sense of being

sigh and thinking, “Ugh, I have to go to work again.” We have to work,in the moment. Plus, you can find radio stations all over the country,

so we might as well enjoy it. Also, things are so much better when I canmaking it possible to enjoy regional characteristics. One of the things

share that enjoyment with my colleagues. We work as a team, so I wantthat I like about radio is that they talk to “you,” the listener, directly. You

to create a studio atmosphere where everyone can have fun.

can find a voice just by tuning to a certain frequency. Access is easy.

I think it’s especially important to create an environment where ev-

These days, you can listen to the radio on a smartphone or by using

eryone can express their opinions

an Internet radio app, making it evenfor employees in Japan to come to Singapore,

freely, regardless of age or career

more convenient. You can also listen

national staff have become more involved in site

status. If people are afraid of express-

to it while doing something else. As

management than ever before, and they are working

ing an opinion because they think thata radio broadcaster, I feel like I’m

hard to train up engineers with Japanese expatriates.

someone will get mad at them, thenwith each and every listener. ThereIn order for Denka to survive in the highly competitive

you can’t call it a successful work-

are people who don’t listen to theSingaporean market, we will need to work together

place atmosphere. So, I frequently

radio, but I think everyone needs

make small talk with people and try toa radio personality who can deliver

get them involved. I ask them ques-words that go straight to their heart.

tions like, “How’s it going recently?” or

Try tuning into different time slots“What do you think about changing

and programs and discover theup the plan a little?” Or I try throwing

greatness of radio.

Since the COVID-19 pandemic has made it difficult

to improve operations using digital technology andprovide high-quality products to our customers in asafer and more efficient manner.

Muneatsu Miida
Group HR/Administration DMD
DCHA

Jihao Kuo
Process Technology Leader
Merbau Plant
DSPL

Aloysius Vu
Production Head
Tuas Plant
DAPL

out conversation starters. I often use

The Denka BUSINESS OUT-

facts that I discover while preparing

LOOK segment on J-WAVE started

for shows. For example, when I wasin 2015 when Denka changed its

emceeing for the Academy Award

company name. I served as a host

ceremony, I suddenly said, “Trivia

during that milestone, so I feel like I

time! What’s the diameter of the Oscar presented to award winners?”

have a connection with your company. Denka delivers electronic mate-

to my fellow performers during a break. People appreciate these small

rials and healthcare products not only in Japan but all over the world.

surprises, and it helps to create a relaxed atmosphere. I think that doing

As an ambassador for Japan, I hope that you’ll tell people overseas

this sort of thing can contribute to creating an environment where every-

about the attractive features of our country. I also hope that the people

one can work comfortably. You should ask my colleagues if my attempts

at Denka will seek out fun and enjoy every day.

are successful, though (laughs).

*Ho stands for hokoku (“report”), ren for renraku (“communicate”), and so for sodan (“consult” or “seek advice”).

14

The Denka Way | 2022 Autumn

2022 Autumn | The Denka Way

15

DENKA TOPICS
A Specialist’s
Perspective

Introducing Denka Group news topics from July to August 2022.

Jul.

Denka participates as a partner in WIPO GREEN,
a global platform for environmental technologies

Denka is striving to become aSpecialty-Fusion Company.
What do Denka’s specialists foresee
for the future?

Towards a Sustainable Workplace
and Products
Toyokalon®, the world’s first polyvinyl chloride fiber to be successfully industrialized in

Denka, which positions environmental management at the core of its management, has joined WIPO GREEN, a global platform for environmental technologies
operated by the World Intellectual Property Organization (WIPO), as a partner.
Through exchanges with other partners interested in our environmental products
and technologies, Denka will create innovation and contribute to the decarbonization of society.

1952, is used as a raw material for fashion

Aug.

Ceremony held to mark the completion of
Shin-Himekawa No. 6 Power Plant,
Denka’s 17th private hydroelectric power plant

A ceremony was held tomark the completion of theShin-Himekawa No. 6 Power
Plant, a new hydroelectric power
plant built in the Kotaki districtof Itoigawa City by Kurobegawa
Electric Power Company, a joint
venture between Denka and Hokuriku Electric Power Company. The completion
ceremony was attended by more than 40 people, including President Imai,
Hokuriku Electric Power Company President Matsuda, Kurobegawa Electric Power
Company President Hirai, Itoigawa Mayor Yoneda, and local officials, who celebrated the completion of the power plant with a Shinto ceremony.

wigs and is highly regarded worldwide forits natural texture and soft feel. Mr. Oonuki
has been involved with this product sinceAug.

he joined Denka. When the production line
was launched in Singapore in 2013, he wasin charge of training the local employees.
“I’d walk around with an electronic dictionary and communicate using gestures,” heexplains. “If you’re enthusiastic, people will
respond to your enthusiasm.”
Currently, he is focusing on creating a safe
and secure work environment for on-site
workers. For example, he has recently
implemented measures to prevent heat andnoise-related problems. He is also working

Financial results briefing held for first quarter of FY2022
Operating profit of 4.9 billion yen, down 2.8 billion yen
year-on-year

A financial results briefing forthe first quarter of FY2022
was held in the form of atelephone conference. Eighty
participants, including institutional investors, analysts,
and financial institutions
attended. Sales increased
7.6 billion yen year-on-year,
while operating profit declined 2.8 billion yen year-on-year. Although the segment
breakdown was revised, the overall performance forecast was left unchanged at
18 billion yen in operating profit for the first half and 43 billion yen for the full year.

Aug.

Commercialization verification of
wearable sweat patch sensor launched

Denka concluded a partnership agreement with Epicore Biosystems, Inc., a
U.S. biotechnology company. Epicore
Biosystems is developing a wearable
sweat patch sensor and is planning tobegin marketing it in earnest. Marketing
and R&D will be carried out in Japan tobegin with, and the knowledge gained in
the Japanese market will later be used
to expand into other Asian markets. Epicore Biosystems will also consider expanding into the healthcare field, including heat stroke and dehydration prediction andtesting for disease prevention.

on production process reforms, including
automation to avoid over-dependency on
individual employees and reduce labor
requirements. “Using Toyokalon®, I would
like to bring happiness to people all over
the world. To that end, I am implementing
reforms to create a sustainable workplace
and passing down the skills to a newgeneration.”

Masao Oonuki

Foreman, Toyokalon Section,
Production Department No. 2, Ofuna Plant
Involved with Toyokalon® production since joining Denka
in 2003. He assumed the position of foreman in 2020
and is currently working on enhancing productivity andproduct quality.

16

The Denka Way | 2022 Autumn

Aug.

Denka Integrated Report 2022 publishedDenka has published an integrated report to provide comprehensive corporate information
to all stakeholders, with a focus
on medium- to long-term value
creation from the perspective of
ESG management. In addition toa review of the Denka Value-Upmanagement plan, which is now in its final year, the report introduces the preparatory work for the next eight-year management plan starting in FY2023 that seeks
to further strengthen ESG management as well as a project by young employees toformulate the vision that will serve as the cornerstone of the plan.

Consortium kicks off project to develop technology
for producing concrete and cement using CO2
A consortium managed by Denka,
Kajima Corporation, and Takenaka
Corporation has been making preparations to carry out a proposal thatwas submitted to the New Energy andIndustrial Technology Development
Organization (NEDO) for its Green
Innovation Fund Project: Developmentof Technology for Producing Concrete and Cement Using CO2 and accepted. On
June 14, the consortium, which consists of 44 private companies, 10 universities, and 1 research institute, gathered for a kick-off meeting to officially launch
the project.

2022 Autumn | The Denka Way

17

With You, With Denka.

With Society.

Ceremony to celebrate DCHA’s inauguration as a main partner in May 2022.
Before the kick-off, Michio Kawamura, Managing Director of DCHA, handed the match ball to the referee. There was also a uniform giving ceremony.

A dance clinic by Albirex Niigata Singapore, the team that Denka is sponsoring.

A football clinic by Albirex Niigata Singapore, the team that Denka is sponsoring.

Aiming for “coexistence and co-prosperity” with local societies in Singapore

Gratitude and a desire to return the favor to Singapore

Supporting Albirex Niigata Singapore,
the only overseas Japanese professional
sports teamCommunity contribution is part of the Denka Group

DCHA has been a CSR Partner of Albirex Niigata

Social Contribution Policies. It states: “Paying respect toSingapore since 2015 and has supported various

diverse cultures and customs in countries around theactivities such as football and dance lessons at ele-

world, the Group will take a community-rooted approach

mentary schools and events at nursing homes for thein its efforts to promote the sound development of local

elderly. As a main partner, DCHA will continue to con-societies in which it operates.”

tribute to local society’s development through cultural

In 2022, Denka Chemicals Holdings Asia Pacific(DCHA), one of Denka’s consolidated subsidiaries,

sports activities in Singapore, where it has operated formore than 40 years.

became a main partner of Albirex Niigata Singapore.

In this installment, we interviewed Mr. Shujiro

This club team is an offshoot of Albirex Niigata in Japan

Namba, CEO of Albirex Niigata Singapore, about local

that joined the Singapore professional league, S. League

contribution activities in Singapore and his expecta-(currently Singapore Premier League) in 2004. It won ations for Denka.

cup tournament for the first time in 2011 and became
league champions in 2016. A women’s team was estab-

INTERVIEW

Shujiro Namba
CEO,
Albirex Niigata Singapore
PROFILE
Joined F.C. Tokyo in the J-League
in 2000. After working in clubmanagement, he went to the US in
2009. After completing a master’s
degree in sports management, heworked for several local companies, including a sports marketingcompany. He joined Albirex Niigata
Singapore in 2014 and assumed
his current position in 2020.

As Singapore is a city-state with a small population, it

in Yuhua, which is located close to our home stadium.

has a policy of inviting overseas teams to participate in

We donate one dollar per number of spectators for home

its domestic professional soccer league to strengthen it.

games. This idea benefits everyone because the amount

They approached the Japan Football Association with thisof donations will increase if people in the community

idea, and Albirex Niigata joined in 2004. However, in thecome out to support us. We also used the donations tobeginning, there were questions as to why we were com-

establish a soccer academy. This is the first example of apeting in Singapore, and the personal goals of the players

soccer academy jointly opened by the government and awere unclear. Performances were poor, and the initiallyclub in Singapore. Many local children enjoy taking part.

large number of spectators gradually declined.
Daisuke Korenaga, President at that time (currently

This year, Denka, who has been supporting us since2015, has become a main partner. It goes without saying

Chairman), established a team slogan titled “Thethat we will do our best to give a good performance with

Reason: Why We Play Here” to clarify where we are

the Denka logo on our uniform, but it also means that wedoing in Singapore, both as a club and as individuals.

will be focusing on community contribution activities now

From the perspective of Singaporeans, we are justmore than ever. We are very grateful for the opportunity

foreigners. There’s no real reason to support us if we’reto play in Singapore, and we would like to return thejust kicking a ball around. So, we began independently

favor. There is nothing that pleases us more than contrib-

approaching local communities and performing social

uting to local citizens through our activities, and it is ourcontribution activities.

great pleasure to continuously engage in these activities

Currently, we are making donations to a sports centerwith Denka.

lished in 2022.
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The Denka Way | 2022 Autumn

2022 Autumn | The Denka Way

19