Site Reports 2014

DENKA GROUPCSR REPORT

2014
Site Reports

CONTENTS
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27

Omi Plant
Omuta Plant
Chiba Plant
Shibukawa Plant
Ofuna Plant
Isesaki Plant
DENKA Innovation Center
Denka Singapore Pte., Ltd. Merbau Plant
Denka Singapore Pte., Ltd. Seraya Plant
Denka Advantech Pte., Ltd. Tuas Plant
Denka Advantech Pte., Ltd. Tuas South Plant
Denka Advanced Materials (Suzhou) Co., Ltd.
Denka Chemicals Development Suzhou Co., Ltd.
DENKA Polymer Co., Ltd.
DENKA SEIKEN Co., Ltd.
CRK Corporation
Hinode Kagaku Kogyo Kaisha Ltd.
DENKA Azumin Co., Ltd.
Environmental Performance

Pursuing Lasting Trustas an Outstanding Manufacturer

DENKA GROUP CSR REPORT 20141

Site Reports 2014

Site Reports 2014

Omi Plant

Fiscal 2013 Achievements and Future Initiatives
SafetyOverview
Operations

Since our establishment in 1921, we have maintained unique carbide chemical operations that exploit in-house assets. These include Mount Kurohime, which has five billion metric tonsin limestone reserves, and an in-house power generation capacity of 180,000kW. Our broad productrange 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.
Products
Elastomers & Performance Plastics: Chloroprene rubber, POVAL, etc.
Infrastructure & Inorganic Materials: Cement, special cement additives, calcium carbide, calcium
cyanamide, ALCEN, etc.
Electronics & Innovative Products: Monosilane gas
Life Science & Environment Products: Macromolecular sodium hyaluronate
Others: Eel farms
Address

2209, Oaza Omi, Itoigawa, Niigata

Employees

865 (as of March 31, 2014)

We are promoting facility improvement aimed at reducing environmental burdens. To increase the proportion of clean energy
power sources our incineration facilities use, we switched overfrom heavy oil to environment-friendly natural gas. Moreover,to recycle more industrial waste, we installed chlorine removal
equipment in our cement production facilities while upgrading
the feed chute to facilitate the processing of waste plastics.
In addition, to help preserve the environment of local
community, we are participating in the Himekawa River Cleaning Mission, a public-private initiative undertaken during the riverpreservation month designated by the Japanese government,with the aim of helping to keep the river environment clean.

As a chemical plant, we manufacture materials and products that benefit society while utilizing a
range of resources, including limestone produced from mines nearby and waste and byproducts
generated by local industries and communities.
In the course of these operations, we put a significant emphasis on handling hazardous
substances carefully and preventing environmental pollution from occurring in line with our aim
to continue production activities in a way that harmoniously coexists with local communities.
Moreover, we are striving to develop a workplace environment in which all workers cantake pride in their job and find it rewarding. Simultaneously, we are engaged in dialogue with
community residents and value their feedback. In these ways, we endeavor to contribute to local
society and thereby be a plant that deserves people’s trust.
Managing Executive Officer,
General Manager of Omi Plant

CSR Policies

Maintaining Safety
Each section will select one specific issue to work on
intensively in line with our recognition that safety
activities help reinforce operational excellence.

DENKA GROUP CSR REPORT 2014

Cleanup activity along the
Himekawa River

Plant staff who participated in the
Himekawa River Cleaning Mission

To facilitate communication with local residents, the Omi Plant
is proactively participating in community events while assiduously undertaking cleanup activities across adjoining areas.
Our fiscal 2013 initiatives included helping to organize a local
marathon. We also proactively participated in local science
events targeting children.
We will continue with our community contribution efforts
to maintain the trust of local residents.
Plant employees who helped organize Many children were attracted to thea marathon
stand run by plant staff

Environmental Load Reduction and Social Contribution
All workers will pursue higher goals in their efforts
aimed at reducing environmental burdens while
contributing to the local community as well as society
as a whole.
Quality Management
We will raise quality awareness and enhance
technological capabilities to deliver products witheven higher quality, thereby gaining the greater trustof customers.

Environmental Performance
Item
Energy consumption intensity
CO2 emissions (from energy sources)

Unit

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

Compared with
FY1990Fiscal 2014 target

0.97

0.96

0.94

0.90

0.94
92

10,000t

76

77

83

84

PRTR substance emissions

t

12

17

18

14

12

NOx emissions

t

2,750

2,820

2,940

3,390

3,010

SOx emissions

t

120

94

81

61

54

Soot and dust emissions

t

103

114

86

67

117

Water used

2

Fire extinction training at the plant’s
comprehensive emergency drill

Communication
Shohei Tamaki

General Manager’s Policies

Rescue training at Himekawa Port
Comprehensive Emergency Drill

Environment

Telephone: +81-25-562-6105

Message from the General Manager

Develop a workplace environment in which all
workers can take pride in their job and find it
rewarding while restructuring the Omi Plant throughreforms engaging all sections to realize the goals of
the DENKA100 initiative.

To secure preparedness in case of chemical facility-related accidents, we have implemented a variety of disaster drills, including a comprehensive emergency drill undertaken in tandem with
the Itoigawa City Fire Department. Assuming a fire breaking out
at a plant facility, this joint drill involved 12 activities, including
initial reporting to the fire department, extinguishing and rescuing people from fires, and final confirmation of fire extinction, toensure that these actions are swiftly taken. We also participatedin the Himekawa Port Comprehensive Emergency Drill, in which
it was assumed a major earthquake had occurred.

1,000m3

66,30067,20064,00063,000—

COD (BOD) discharges

t

1,570

1,270

850

850

1,140

Waste generatedt

83,900105,200

109,870

101,260

114,420

Final waste disposal

t

160

143

100

69

110

DENKA GROUP CSR REPORT 20143

Site Reports 2014

Site Reports 2014

Omuta Plant

Fiscal 2013 Achievements
Environment

Overview
Operations

Established in 1916, the Omuta Plant is DENKA’s oldest plant, and the first to manufacture carbide and calcium cyanamide. Since that time, as an inorganic chemical product manufacturing base boasting proprietary electric furnace, high-temperature control and nitride technologies, theOmuta Plant has introduced a number of unique products. In recent years, we have entered the fineceramics and electronic materials fields. Today, we contribute to the development of the electronics,
automotive and numerous other industries.
Products
Infrastructure & Inorganic Materials: Calcium carbide, calcium cyanamide,
fire resistant materials for steel making, alumina cement and special cement additives
Elastomers & Performance Plastics: Acetylene black
Electronics & Innovative Products: Fused silica filler, spherical alumina, silicon nitride, boron nitride,
ceramic electronic circuit substrates, thermally conductive sheets, ceramic composite and LED phosphors
Address

1, Shinkai-Machi, Omuta, Fukuoka
Telephone: +81-944-52-1055

Employees

635 (as of March 31, 2014)

Blood donation campaigns
We cooperate with blood donation campaigns twice a year,with 291 employees donating blood in fiscal 2013 (cumulative
total).

Toshiharu Kano

CSR Policies＞＞＞ General Manager’s Policies for fiscal 2014

Increase work capacity to become less dependent
on outsourcing

2. Pursue facility security and safety to achievezero-accident status
The Omuta Plant is fully responsible for the safetyof every person working within its premises

4

Communication

Children making personalized PET
bottles at the Omuta Ecotown Fair

The Omuta Daijayama Festival

Teachers and parents on a plant tour

Blood donation campaign

Plant tours
We invite local associations, students, teachers and parents
associations to tour the plant, with the aim of facilitate theirunderstanding of our business operations.

Managing Executive Officer,
General Manager of Omuta Plant

Cut raw material procurement costs while
minimizing waste and material loss

Voluntary cleanup activity

Participating in Omuta Daijayama Festival
Having participated in the Omuta Daijayama Festival, a summer festival that dates back 300 years, a total of approximately 100 plant staff joined the main attraction of the festival
entitled “10,000 people’s dance.”

Established in 1916, the year following the Company’s founding, the Omuta Plant is the oldest of
DENKA’s production bases. Over its history, the plant has overcome a number of challenges withthe cooperation of various stakeholders. In April 2015, DENKA will celebrate its centennial. With
this in mind, we will strive to develop the Omuta Plant into a more independent, leading production base capable of securing the genuine trust that will sustain it for the next 100 years. To
this end, we will strive to ensure safety while reinforcing our platform to secure product quality.
Moreover, we will devote our day-to-day efforts to enhance profitability and to create new technologies and products. In these ways, we will forge ahead toward the goals of the DENKA100
management plan.

Expand customer base as well as product lineup

load reduction activities while
cutting waste emissions.

Chemistry classes for children
We visited nearby elementary schools to give chemistry classes. We also participated in the Omuta Ecotown Fair sponsoredby the Omuta City to host experimental science classes.

Message from the General Manager

1. Enhance responsiveness to changes inoperating environment

We have participated in voluntary cleanup activities in tandemwith local community organizations in spring and autumn. We
also participated in a semiannual Japanese Islands CleanupCampaign sponsored by the Omuta City.
Since we operate a number of energy-intensive production processes, we promoted energy-saving and environmental

3. Attain higher quality through top-down
management
Product quality reflects managers’ technicalcapabilities
Prevent recurrence of quality-related incidents togain customers’ trust
Improve quality assurance process; introduce
automated system for inspection

4. Create new value into the future
Promote R&D with an emphasis on adding value

Fiscal 2014 Initiatives• We will step up our community contribution through chemistryclasses aimed at communicating the fun of chemistry to children.
• We will strive to ensure that every plant worker acts with constant vigilance with the aim of achieving a zero-accident record.
• We will enhance our responsiveness to changes in the operating environment, with every employee striving to improve theirworking efficiency.

• We will endeavor to develop
the plant into the Group’s
leading production base in
the true sense.

Chemistry class for children

Environmental Performance
Item
Energy consumption intensity
CO2 emissions (from energy sources)

Unit

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

Compared with
FY1990Fiscal 2014 target

0.91

0.90

0.94

0.94

0.89
12

10,000t

11

11

13

12

PRTR substance emissions

t

17

25

7

7

7

NOx emissions

t

1,120

940

850

790

940

SOx emissions

t

1

1

1

1

1

Soot and dust emissions

t

3

6

3

5

5

1,310

1,390

1,220

1,190

1,200

Water used

Every plant worker must act with constant vigilance

Promptly address customers’ requests whileturning R&D results into profit generators

COD (BOD) discharges

t

1

2

1

1

1

Managers’ failure to counter predictable danger andoperators’ unsafe behaviors must be strictly investigated

Determine quantitative targets for R&D activities
while strictly complying with project schedules

Waste generated

t

8,670

13,600

7,400

8,680

8,075

Final waste disposal

t

71

39

22

72

17

DENKA GROUP CSR REPORT 2014

1,000m3

DENKA GROUP CSR REPORT 20145

Site Reports 2014

Site Reports 2014

Chiba Plant

Fiscal 2013 Achievements and Future Initiatives
SafetyOverview
Operations

The Chiba Plant has served as a core production base bolstering DENKA’s petrochemical operations. Begun as a styrene monomer facility, the plant is now also producing polystyrene, ABS
resins, CLEAREN styrene-butadiene block copolymer, transparent plastics and other styrene-basedmaterials as well as EVA emulsions and acrylic rubber while reinforcing such plastic processed products as biaxially oriented polystyrene sheet (OPS), vinyl chloride tapes and construction materials.
Products
Elastomers & Performance Plastics: Styrene monomer, polystyrene,* ABS resin, transparent polymers, heat-resistant polymers, CLEAREN styrene-butadiene block copolymer, EVA emulsions and
DENKA ER (*Product of an affiliated company)
Life Science & Environment Products: Food packaging, construction materials and vinyl chloride tapes
Address

Employees

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

We launched the My Plant Chiba (MPC) campaign aimed at reinforcing operational excellence by nurturing proactiveness and a senseof ownership among employees. Specifically, we are striving to raise
employee awareness of accident prevention, for example, by making
everyone consciously engage in the exchange of courtesies in thecourse of their work.
We also upgraded the mandatory safety training programs fornewcomers to the plant, incorporating video presentations to supplement written materials as well as tests to confirm individuals’ level ofcomprehension. By doing so, we are making sure that anyone whoenters the plant can work safely, including those from subcontractors
and partner companies.
Going forward, we will continuously improve our facility security
management system as well as
occupational safety and health management system while facilitating asafety-oriented corporate culture.
In these ways, we will maintain safe Mandatory safety training using video
and stable plant operations.
presentations

Environment

474 (as of March 31, 2014)

Participating in the “Green Curtain Contest”
The “green curtain” refers to a greenery initiative in whichvines are planted around buildings so that they climb andcover walls and windows. By
doing so, they provide shade
and cool air through evaporation while contributing to CO2
reduction. We participated in
a competition hosted by the
Ichihara City aimed at promoting this initiative.
Bitter gourd vines climbing the wall of

Message from the General Manager
In 2015, when the Company marks the centennial of its founding, the Chiba Plant will celebrate
the 50th anniversary of its operational kickoff. We aspire to remain a manufacturing plant that
contributes to communities and society and to continue growing in step with them over the next
50 years. Reflecting on the accidents in fiscal 2013, we have reaffirmed the utmost importanceof maintaining safety and preserving the environment in all our production activities. Accordingly,
every plant employee is steadily implementing the following initiatives.
• Ensuring compliance• Reinforcing operational excellence = nurturing human resources (passing down technologies,
skills and “know-why,” nurturing employees’ sense of ownership)• Continuously upgrading our facility security, occupational safety and health, environmental andquality management systems• Reducing energy and resource consumption as well as environmental burdens• Contributing to local society

Reducing Emissions of SOx and CO2
We completed a switchover of boiler fuel from heavy oil togas to reduce emissions of environmental load substances.
To achieve targets set forth in the Fifth Medium-Term
Environmental Plan, we will promote energy saving and theeffective utilization of resources while reducing emissions ofwaste and environmental load substances. At the same time,
we will proactively undertake initiatives to curb global warming and preserve the environment by closely working together
with community residents as well as relevant authorities andagencies.

the plant’s office building

Communication

Ken Koizumi
Executive Officer,
General Manager of Chiba Plant

CSR Policies

To enhance our relationship of trust with the local community,
we proactively participate in local events, including the Goi
Rinkai Festival and the Naka-Boso International Art Festival
Ichihara Art x Mix, while taking part in community gatherings.
Moreover, we are facilitating people’s understanding of theplant by inviting local residents to join plant tours. These tours
welcomed students from elementary schools and high schools
in the prefecture as well as members of such organizations as
Chiba Prefecture’s Civil Rights Commission.
In addition, under a program commemorating Ichihara
City’s 50th anniversary, we received a special prize recognizing
our contribution to local industries.

Local high school students touring plantfacilities

Certificate awarded
by Ichihara City

General Manager’s Policies for fiscal 2014
In line with the DENKA100 new growth strategies, we will proactively take on challenges as we strive toreorganize our business structure and to develop new businesses and products. To enhance our international
competitiveness, we will also scrutinize every cost element in line with specific numerical targets, thereby securing
a stable profit.
To establish a foundation for the next 50 years, we will vigorously promote CHIBA50 activities aimed at becoming
a plant with the flexibility necessary to ensure sustainable development.
We will steadily nurture human resources, pass on technologies and skills to younger generations and advancethe plant’s technological capabilities. We will thereby enhance operational excellence to secure occupational safety
and health, conserve the environment, prevent disasters and achieve higher product quality and thereby become aplant deserving trust.

6

DENKA GROUP CSR REPORT 2014

Environmental Performance
Item
Energy consumption intensity
CO2 emissions (from energy sources)

Unit

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

Compared with
FY1990Fiscal 2014 target

0.87

0.89

0.96

0.91

0.88
46.1

10,000t

43

46

34

33

PRTR substance emissions

t

86

92

73

66

67

NOx emissions

t

448

479

260

263

213

SOx emissions

t

129

122

33

20

23

Soot and dust emissions
Water usedt
1,000m3

5

8

3

1

3

9,700

9,690

9,580

9,600

—

COD (BOD) discharges

t

23

22

13

10

18

Waste generatedt

18,30018,10014,28012,86011,000

Final waste disposal

t

40

23

39

52

39

DENKA GROUP CSR REPORT 20147

Site Reports 2014

Site Reports 2014

Shibukawa Plant

Fiscal 2013 Achievements and Future Initiatives
SafetyOverview
Operations

In 1951, the Shibukawa Plant was established as a production base for vinyl chloride
polymers. In 1976, the plant began manufacturing HARDLOC structural adhesive. Since 1984, theplant has expanded its business domain, making a full-scale entry into the electronic materials
business. Currently, the Shibukawa Plant specializes in electronics-related products, encompassing
electronic circuit substrates, thermally conductive materials, emitters, structural adhesives, temporary fixing adhesives and semiconductor processing-related products, thereby driving DENKA’s
growth strategies as a key organic electronic materials production base.
Products
Electronics & Innovative Products: DENKA HITTPLATE high thermal conductivity
aluminum substrates, DENKA THERMALLY CONDUCTIVE SPACER, DENKA TFE and DENKA LaB6CATHODE electron and ion emitters, ELEGRIP dicing tape and back grinding tape, HARDLOC structural adhesive, HARDLOC OP/UV light curing adhesive, TEMPLOC temporary fixing adhesive
Address1135, Nakamura, Shibukawa, Gunma
Telephone:+81- 279-25-2109

Employees

395 (as of March 31, 2014)

In fiscal 2013, the Shibukawa Plant established the Discipline
Training Room and Plant Maintenance Training Room withthe aim of raising employees’ safety awareness. The former
provides on-site programs involving the practice of “pointing
and calling” to make trainees realize the importance of suchpractice. The latter involves the use of the actual machine
tools to make trainees aware of the dangers of misuse. Goingforward, we will enhance the content of training programs designed for female workers as well as our mandatory job levelbased training in addition to stepping up our ongoing safety
activities.

Environment
To promote the use of clean energy, the Shibukawa Plant
established DENKA Solar Power Shibukawa, a mega solar
power generation facility. The facility was established on thesite of the former Yagihara Plant, putting it to effective use.
Boasting a maximum output of 2.2MW, the facility is capableof supplying electricity equivalent to that consumed by 900
general households on an annual basis. All output is sold toTokyo Electric Power Company.
Looking ahead, we will strive to reduce resource andenergy consumption as well as CO2 emissions.

Message from the General Manager
Regrettably, we must report that the plant recently experienced its first accident in 1,057 days.
Although the accident resulted in only a minor injury, it reminded us of the need for serious self examination by all working at the plant, including people from subcontractors, to ensure vigilance ismaintained.
We at the Shibukawa Plant aim to create a safe, lively and vibrant workplace in which every
person can work with confidence. We therefore recognize that raising everyone’s awareness isessential. Accordingly, “nurturing people who can think proactively and act with a sense of ownership” is the focus of our human resource development.
Approaching the centennial of the Company’s founding in 2015, we will strive to develop the
Shibukawa Plant into a facility that deserves the trust of the local community and society over the
next 100 years.

An aerial view of DENKA Solar Power Shibukawa

Communication
Hideki Hirano
General Manager of Shibukawa Plant

CSR Policies
Maintain thorough compliance
Create an organizational culture that ensures every person who works at the plant can work safely and efficiently
with confidence
Facilitate communication with public entities and communities

The Shibukawa Plant holds softball games and sports festivals
in every spring and autumn, respectively, with management
and the labor union as co-sponsors. Every year, a number of
employees and workers from subcontractors as well as theirfamilies attend these events, taking advantage of the opportunity to facilitate communication that transcends workplaceboundaries.
Looking ahead, we will regularly hold various events
aimed at enhancing communication.
A spring softball game

Environmental Performance

Realize the three initiatives set forth as the DENKA100 new growth strategies

Item
Energy consumption intensity
CO2 emissions (from energy sources)
PRTR substance emissions

8

DENKA GROUP CSR REPORT 2014

Science experiment class

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

Fiscal 2014 target

0.74

0.78

0.78

0.83

10,000t

1.0

1.0

1.0

0.7

0.8

t

6

4

3.8

2.9

4.8

0.68

NOx emissions

t

10

6

5

10.9

8.4

t

10

1

0.9

1.5

1.1
0.02

Water used

Comprehensive emergency drill

Unit
Compared with
FY1990SOx emissions
Soot and dust emissions

Cleaning Nakamura Waterway

Practicing pointing and callingt
1,000m3

0

0

0.02

0.06

2,580

2,520

2,460

2,400

—

COD (BOD) discharges

t

3

3

3.2

3.5

2.4

Waste generated

t

479

416

369

382

381

Final waste disposal

t

3

2

1.3

1.3

1.4

DENKA GROUP CSR REPORT 20149

Site Reports 2014

Site Reports 2014

Ofuna Plant

Fiscal 2013 Achievements and Future Initiatives
SafetyOverview
Operations

Our product lineup is the fruit of cutting-edge technologies in ejection molding, adhesion coating and film production. We are DENKA’s prime production unit forplastic products. We manufacture a variety of offerings, such as TOYOKALON synthetic
fiber for wigs and hairpieces now popular around the world, packaging tapes that boast
unique functions, including hand-cuttable tapes, and Calalyan Y polyethylene film featuring excellent transverse direction (TD) mono-axial cut properties.
Products
Life Science & Environment Products: Synthetic fibers for wigs, packaging materials and functional films
Address

13-1, Dai 2-chome, Kamakura, Kanagawa
Telephone: +81- 467-45-1110

Employees

185 (as of March 31, 2014)

To minimize the possibility of occupational accidents andfacility-related incidents, we are implementing a near-accident
reporting and analysis initiative. Due to the incorporation of
the in-house commendation system and new submission
forms, in fiscal 2013 the number of reports submitted doubled from fiscal 2012. Going forward, we will create a workplace in which staff can work safely and with confidence, withevery employee taking part in safety activities.
To ensure facility security, we implemented comprehensive emergency drills that assume the occurrence of earthquakes and fires. These drills included a water discharge drill
by an in-house fire brigade, an emergency communication
drill and an evacuation drill as well as other training aimed at

confirming emergency response procedures.
In addition, the plant was commended by the head of
the Kanagawa Labour Bureau for its excellent track record in
occupational safety and health initiatives.

Comprehensive emergency drillAward certificate from the headof the Kanagawa Labour Bureau

Environment
The plant was commended by the governor of Kanagawa Prefecture for its outstanding contribution to pollution prevention
and the preservation of atmospheric, water and soil quality.
We developed a solution to curb odor attributable to Volatile Organic Compounds (VOCs) used in the printing processby reducing the use of VOC-based solvents. As a result, in accordance with Japan’s Industrial Safety and Health Act, we wereable to change the classification of the printing facilities’ working
environment from Class II to I. We also improved the working

Message from the General Manager
Based on the philosophy of contributing to and prospering with the community, we areproactively deepening our engagement with the local society of Kamakura, which boasts a richcultural, historical and environmental legacy.
As we aim to reduce environmental burdens, efforts are now under way to revise our
production process to save energy and cut CO2 emissions. To maintain our zero-emission
status, we are mitigating environmental load substance emissions while promoting the reduction
and separation of waste. In tandem with environmental conservation initiatives encompassing
all production activities from the development to disposal stages, we are responding to social
needs through the development and manufacture of high-quality products that contribute to thepreservation of the global environment.
Focusing on safety activities, we are also training plant staff to avoid worksite dangers
while cultivating a sense of mutual support. By facilitating a safety-oriented corporate culture
based on mutual trust and collaboration, we are creating a workplace environment in which
every person can work safely and with confidence.

environment of our slit processing facilities, which had been labeled Class III facilities, throughthe reduction of noise, thereby
acquiring Class I certification.
We will continue to work
to systematically reduce theenvironmental impacts of our Receiving a commendation from thegovernor of Kanagawa Prefecture
plant operations.

Communication

Hideki Watanabe
General Manager of Ofuna Plant

CSR Policies

We are proactively interacting with the local community while
undertaking social contribution activities. In fiscal 2013, we
made the square in front of the plant’s main gate available fora summer festival held by nearby neighborhood association
on July 6. We also set up food stands and an employee band
performed. In addition, we hosted plant tours to which we invited local elementary and junior high school students in order
to assist with their social studies, and a total of 122 students
visited. We have received thank you cards bearing comments
and words of appreciation and are pleased that these events
helped visitors to better understand the plant. We will con-tinue our efforts to facilitate dialogue and interaction with local
community.

Summer festival held by aneighborhood association

Local elementary school students on
a plant tour

General Manager’s Policies
The Ofuna Plant’s fiscal 2014 slogan is “Let’s work as one to create a safety-oriented corporate culture based on mutual
trust and collaboration while blazing a path to the future with passion and technologies.” Under this slogan, we will
pursue the DENKA100 new growth strategies by encouraging plant staff to rethink their priorities and proactively takeon challenges to achieve higher goals. Specifically, we will focus on the following four activities.

Environmental Performance
Item
Energy consumption intensity

Fiscal 2011

Fiscal 2012

Fiscal 2013

Fiscal 2014 target

0.79

0.75

0.77

0.78

0.72

10,000t

1

1

1

0.8

0.8

t

1

1

1

0.5

0.5

Advance RC activities

NOx emissions

t

2

2

2

2

2

Reinforce operational excellence and promote product development

SOx emissions

t

0

0

0

0

0

Facilitate a passionate approach to work while strengthening technological capabilities

Soot and dust emissions
Water used10

Fiscal 2010

PRTR substance emissions

Ensure facility security and occupational safety and health

CO2 emissions (from energy sources)

Unit
Compared with
FY2002

DENKA GROUP CSR REPORT 2014

t

0

0

0

0

0

1,000m3

96

59

51

46

—

COD (BOD) discharges

t

0

0

0

0

0

Waste generated

t

199

124

110

167

100

Final waste disposal

t

30

30

17

16

11

DENKA GROUP CSR REPORT 201411

Site Reports 2014

Site Reports 2014

Isesaki Plant

Fiscal 2013 Achievements and Future Initiatives
SafetyOverview
Operations This plant manufactures sheets and films from polystyrene, vinyl chloride and other raw materials. We supply food and electronic packaging materials that meet stringent requirements for performanceand quality management, and are endeavoring to bolster our processing technologies while developing valueadded offerings.
Products
Electronics & Innovative Products: Carrier tapes, trays and cover tapes for semiconductor
and electronic component transportation process
Life Science & Environment Products: Food packaging sheets, stretch films and solar cell module backsheet materials
Address

Employees

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

To minimize potential danger at worksite, we implementedcase studies of typical accidents that occurred at DENKA’sand external facilities, sharing them throughout organization. We also addressed and mitigated risk factors identified
through risk assessment activities. To eliminate unsafe employee behavior, we strove to upgrade our operating procedure documents while instilling the practice of pointing andcalling. Although our ongoing safety activities supported by theentire workforce have resulted
in the improvement of theplant’s safety records, we will
step up initiatives to facilitatea safety-oriented corporate
culture, regularly refreshingworker’s memories of accident countermeasures.

Practicing pointing and calling

In addition to maintaining zero-emission status going
forward, we will systematicallyreduce the volume of industrial waste generated by ourfacilities, with an eye to utilizing limited natural resourcesin a sustainable manner.

Solar power generation facilities
installed on the rooftop of the Ota Plant

Environment
Introduced in 2013 to help reduce greenhouse gas emissions, the Ota Plant’s solar power generation facilities boast
an annual power generation capacity of 1,000MWh, which isequivalent to an the annual energy consumption of approximately 300 households. Moreover, since we have constantly
endeavored to reduce the volume of final landfill waste to zero,
we succeeded in maintaining zero-emission status for the
fourth consecutive year. In these ways, we are helping develop
a sustainable, recycling-oriented society.

238 (as of March 31, 2014)

Message from the General Manager
In line with DENKA’s CSR Vision “pursuing lasting trust as an outstanding manufacturer,” the Isesaki
Plant has made delivering highly functional and high-quality plastic films and sheets its social
mission. Accordingly, we emphasized enhancing the environment-friendliness of our products,
even from the development stage, while pursuing energy- and resource-saving, safe and stableproduction activities. With the aim of utilizing clean energy, we installed solar power generation
facilities on the rooftop of the Ota Plant, incorporating DENKA DX FILM produced by the plantas solar cell module back sheets. Moreover, we are undertaking cleanup activities encompassing
nearby streets and parks. By doing so, we are striving to create a plant that deserves the trustof local community, with every employee fully understanding the DENKA Group Guidelines andpracticing CSR activities accordingly.

Communication

Koichi Taguchi

General Manager of Isesaki Plant

With the aim of facilitating a sense of unity among employees,
the plant and the labor union jointly hold various events. For
example, each year more than half of plant employees enter
into bowling tournaments. We also organize bus excursions tofootball games at the DENKA BIG SWAN STADIUM and Tokyo Disneyland for employees and their families. Other events
aimed at facilitating exchange include walkathons and barbeque parties.
To facilitate communication with local residents, we engage in periodic cleanup activities with them to maintain parks
and streets in the vicinity of the plant.

Employees and their families on a bus tour

CSR Policies
We will develop a rewarding workplace in which
every person can work safely and with confidence
while realizing greater customer satisfaction andprofitability.
Safety and HealthPlace top priority on safety and pursue safety activities
with every plant worker striving toward zero-accident
statusContinuously improve occupational health management
while creating a rewarding workplace

QualityClarify root causes of every customer complaint toprevent recurrence through fundamental improvements
Achieve higher quality through the improvement of
manufacturing process, gathering the wisdom of entire
workforcePromote R&D of environment-friendly products
Pursue energy- and labor-saving production process

Item
Energy consumption intensity

DENKA GROUP CSR REPORT 2014

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

Compared with
FY2005

0.97

0.99

0.95

1.02

0.96

Unit

Fiscal 2014 target

10,000t

2

2

2

1.6

2.5

PRTR substance emissions

t

0

0

0

0

0

NOx emissions

t

0

0

0

0

0

SOx emissions

t

0

0

0

0

0

Soot and dust emissions

t

0

0

0

0

0

1,000m3

412

422

483

427

—

Water used

12

An excursion to the DENKA BIG
SWAN STADIUM

Environmental Performance

CO2 emissions (from energy sources)

Environment

Cleaning a park near the plant

COD (BOD) discharges

t

0

0

0

0

0

Waste generated

t

207

239

178

145

200

Final waste disposal

t

0

0

0

0

0

DENKA GROUP CSR REPORT 201413

Site Reports 2014

Site Reports 2014

DENKA Innovation Center

Fiscal 2013 Achievements and Future Initiatives
SafetyOverview
Operations

The DENKA Innovation Center began operating at its current site after DENKA relocated its Meguro Research Center from Meguro-ku, Tokyo, in 1962. The facility has developed numerous core technologies in the areas of inorganic and organic chemicals, ceramics, petrochemicals,
biotechnologies and plastics that laid the groundwork for DENKA’s business operations. The center
will continue to serve as a focal point for the DENKA Group’s R&D efforts, focusing on developing
next-generation products that may become major profit sources in the medium to long term whilefurther reinforcing its core technologies.
Address

5-1, Asahi-cho 3-chome, Machida, Tokyo
Telephone: +81-42-721-3611

Employees

163 (as of March 31, 2014)

The renovation of the main building is expected to significantly
reduce the Center’s energy consumption. The installation of
LED lights and infrared-absorbing double-glazed windows
has already considerably improved the building’s energy efficiency. We also used SUQCEM, a special concrete precast
product, in the entrance’s sunshade and louver windows on
the second floor. Due to its strength, this innovative productcan be formed into extremely thin sheets that can be used toboth improve building appearance and provide solar shielding.
In R&D, we are stepping up the development of materials for lithium secondary batteries and other energy-related

On April 3, 2014, we completed the DENKA Innovation Center main building, a facility aimed atboosting our capability as the Group’s key R&D base. Since then, we have been engaged in fullscale R&D, with three new subordinate facilities bolstering our R&D platform. Specifically, the Life
Innovation Research Institute was newly founded to reinforce our operations in the life sciencefield—a potential growth driver—while the Advanced Technologies Research Institute and theInfrastructure & Solutions Development Research Institute were created by upgrading the Group’s
existing R&D sections.
In addition to focusing R&D strength Groupwide, the Center was positioned as a hub for
realizing open innovation, and thus promotes joint research projects with various entities with theaim of mutually facilitating breakthroughs.
As we aspire to blaze a path to the future, we will take on challenges to create epoch-making
products and solutions while spearheading Groupwide efforts to realize innovation.

Norihiro Shimizu

CSR Policies

Promote social contribution activities to ensure harmonious
coexistence with society while enhancing the quality of
our R&D output

Held on August 30, 2013, our annual “Innovation FESTA” wasa roaring success, with approximately 140 center employees
attending.
To enhance communication with the local community,
we hosted facility tours for students from nearby elementary
schools. We also participated in the Summer Holiday Chemical Experiment Show for Children sponsored by the “Dream
Chemistry 21”* committee on August 3 and 4, 2013, following
up on our participation in fiscal 2012.
The overall structure of the center’s main building isdesigned to eliminate partitions between rooms as much as
possible, thereby facilitating exchange between employees.
Going forward, we will examine and implement various plansto create an even more vibrant facility.

DENKA GROUP CSR REPORT 2014

A louver window made from SUQCEM* A campaign launched in Japan in 1993 to facilitate people’s understandingof chemistry and the role the chemical industry plays in society.

Innovation FESTA was a roaring
success

The Summer Holiday Chemical
Experiment Show for Children

Priority Initiatives
Reduce the environmental impact of our R&D activities
while undertaking ongoing social contribution activities
Pursue the development of materials, products,
technologies and processes with an eye to reducing
environmental burdens
Enhance the quality of our R&D output throughstatistical quality control (SQC) activities

Environmental Performance
Item

Unit

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

—

—

—

—

—

—

10,000t

—

0.1

0.1

0.1

0.1

PRTR substance emissions

t

—

0

0

0

0

NOx emissions

t

—

0

0

0

0

SOx emissions

t

—

0

0

0

0

Soot and dust emissions

t

—

0

0

0

0

1,000m3

—

8

8

8

—

COD (BOD) discharges

t

—

0

0

0

0

Waste generated

t

—

130

120

100

100

Final waste disposal

t

—

0

0

0

0

Energy consumption intensity
CO2 emissions (from energy sources)

Water used

14

applications. We are also proactively developing energysaving construction methods for infrastructure development
and other civil engineering fields.
In addition, we will
promote tree planting toincrease greenery in thecenter’s premises.

Communication

Managing Executive Officer in charge of
DENKA Innovation Center

Basic Policy

and diseases as well as facility-related incidents.” In fiscal
2013, we began worksite patrols by managers as well as
cross-patrols between each R&D section.
Going forward, we will conscientiously pursue these andother efforts while giving due consideration to worksite communication.

Environment

Message from the General Manager

In line with the following basic policy, we are promoting
the fiscal 2014 priority initiatives presented below.

We consider safety activities to be as critical as our R&D activities. We maintain an environmental management system(EMS) that encompasses occupational safety and environmental conservation. The EMS has been renewed following
the latest examinations carried out on March 5 and 6, 2014.
To pursue safety activities engaging all employees, wehave set a basic policy of “preventing occupational accidents

Fiscal 2014 target

DENKA GROUP CSR REPORT 201415

Site Reports 2014 Overseas

Site Reports 2014

Denka Singapore Pte., Ltd. Merbau Plant

Denka Singapore Pte., Ltd. Seraya Plant
Overview

Overview

Operations The Seraya Plant commenced operations to produce general-purpose polystyrene in 1997.
In 2006, the plant expanded its facilities for manufacturing TX Polymer (methyl methacrylate styrene (MS))
and CLEAREN (styrene-butadiene block copolymer (SBC)). In April 2012, the plant launched a facility to
produce DENKA IP (imidized polymers). Today, the combined annual production capacity of the four facilities is 325,000 metric tons. Also housing the Technical Service Center on its premises, the Seraya Plant isa key production base spearheading the DENKA Group’s styrene-based resin business.

Operations

The Merbau Plant, where we manufacture DENKA BLACK, was DENKA’s first production facility in Singapore. We established this plant in 1980 to participate in the Singapore Petrochemicals Complex project on Jurong Island. We began operating our “50% press” facility in 1984,
augmenting the lines in 1997. We set up a granulation facility in 2002.
Address

Employees

Office:4 Shenton Way #29-02 SGX Centre 2, Singapore 068807
Telephone: +65-6225-6120
Plant:
300 Ayer Merbau Road, Singapore 628282
Telephone: +65-6867-8496

Address

Office:4 Shenton Way #29-02 SGX Centre 2, Singapore 068807
Telephone: +65-6225-6120
Plant:
40 Seraya Avenue, Singapore 627873
Telephone: +65-6867-6089

Employees

75 (as of March 31, 2014)

50 (of which, 17 from subcontractors; as of March 31, 2014)

Message from the General Manager

CSR Policies

As of July 9, 2014, the Merbau Plant marked its fourthconsecutive year of zero-accident operations. To
maintain this track record, we will focus on safety
activities aimed at ensuring all plant workers are able
to avoid hazards while fostering a sense of mutual
support.

Maintain zero-accident record
Clarify the rationale for security
standards while implementing
employee education
Undertake safety activities toensure that all plant workers
are able to avoid hazards while
fostering a sense of mutual
supportYuji Koga
General Manager of Merbau Plant

Message from the General Manager

CSR Policies

Since the launch of polystyrene production in 1997,
the Seraya Plant has expanded its operations toinclude MS and SBC resin facilities in 2006 and an IP
copolymer facility in 2012, making it one of the Group’s
largest manufacturing bases. Drawing on our capacity,
we will contribute to the Groupwide effort to achieve
the target of an “overseas sales to net sales ratio of
50% or greater.” Together, Japanese and Singaporean
staff will work to make social contributions throughproduction activities.

Based in Singapore, the Seraya
Plant bolsters the frontline of
DENKA’s global operations,engaging in business transactions
that encompass regions aroundthe world. With this in mind, we arepromoting CSR as an essential partof our corporate activities, striving
to maintain the trust of stakeholders
worldwide through CSR activities.

Michio Kawamura
General Manager of Seraya Plant

Fiscal 2013 Achievements and Future Initiatives

Fiscal 2013 Achievements and Future Initiatives

SafetyEnvironment

SafetyEnvironment1) Achieved a three consecutive year zero-accident record (asof March 31, 2014)
2) Implemented Hazard and Operability Studies (HAZOP);
issues identified have yet to be addressed
3) Carried out joint emergency drills with PCS* (four occasions
per year)4) Reinforced safety and security educational programs centered on case studies (provided at monthly safety meetings)
We will continue each initiative presented above.

1) Maintained zero-environmental accident status
2) Implemented environmental and hygiene education centered on case studies
We will step up these initiatives to maintain our zero-environmental accident status.

Safety is given priority over any other business activities, including production. As a chemical plant, we are committed toappropriately addressing potential dangers at our facilities. To
this end, we are undertaking ongoing voluntary safety activities
in addition to complying with laws and regulations.

On the back of the enactment of the Energy Conservation Act
in Singapore, environmental preservation is gaining even more
attention here. Given this, we will strive to utilize limited natural
resources in a sustainable manner while enhancing our technologies so that our production activities can harmoniously
coexist with the environment.

*Petrochemical Corporation of Singapore (Pte) Ltd.

Communication

Communication

1) All plant staff participated in monthly safety discussion
meetings to address current safety issues2) General manager made rounds throughout worksite to callattention to safety before and during operation
We will continue these initiatives going forward.

Mr. Michio Kawamura (second from left), the general manager of
the Seraya Plant, attending the Security and Safety Working Group
meeting and receiving an award certificate commending the plant as an
Outstanding Cluster, from Mr. S. Iswaran, the head of Singaporean Prime
Minister’s Office (center)
Joint emergency drill with PCS

16

DENKA GROUP CSR REPORT 2014

The Seraya Plant’s Technical Service Center initiated joint research with the Institute of Materials Research and Engineering(IMRE), a research organization under the auspicesof Singapore’s Agency for
Science, Technology andResearch. We will promote
R&D themes that originate
in Singapore.
Collaboration with IMRE

Merbau Plant staff

DENKA GROUP CSR REPORT 201417

Site Reports 2014 Overseas

Site Reports 2014

Denka Advantech Pte., Ltd. Tuas Plant
Overview

Overview

Operations The Tuas Plant, commenced operation in 1991 in Singapore, produces fused silica
filler, a material mainly used as an encapsulant for semiconductor packaging. Currently, the Tuas
Plant’s focus is on spherical fused silica filler to accommodate advances in semiconductor packaging as well as the trend toward more environment-friendly products. Stepping up its quality management and production structures, the plant serves mainly Chinese and Southeast Asian markets,
working in cooperation with the Omuta Plant.

Operations The Tuas South Plant initiated operations in June 2013 to manufacture TOYOKALON
synthetic fiber for wigs and hairpieces. Introduced in 1952, TOYOKALON is the world’s first PVC
fiber produced on an industrial scale and is shipped mainly to the United States and Africa, the latterof which has a promising hairpiece market. In tandem with the Ofuna Plant, the Tuas South Plant
will bolster the Group’s supply structure as the second flagship TOYOKALON production site, helping
accommodate burgeoning demand.

Address

 ffice:O
4 Shenton Way #29-02 SGX Centre 2, Singapore 068807
Telephone: +65-6321-9530
Plant:
11A Tuas Avenue 20, Singapore 638823
Telephone: +65-6861-0004

Address

Office:4 Shenton Way #29-02 SGX Centre 2 Singapore 068807
Telephone: +65-6224-1305
Plant:
6 Tuas South Drive, Singapore 637046
Telephone: +65-6412-9200

Employees

60 (as of March 31, 2014)

Employees

37 (as of March 31, 2014)

Message from the General Manager
In recent years, we have been facing increasingly harshmarket conditions for semiconductor encapsulant, aprincipal field of application for fused silica filler. To
secure profitability in midst of this adversity, we areworking to improve production process and technologies. At the same time, we give the utmost priority
to maintaining security of plant facilities and ensuring
occupational safety, to this end promoting safety
activities aimed at creating a working environment inwhich every employee can continuously work withconfidence.

CSR Policies
 Ensure plant security and employee safetyP romote energy and resource saving to
reduce environmental burdens
Improve customer satisfaction bycontrolling risks pertaining to productquality evelop a supply system that meetsDmarket demands and technological trends

Hidetoshi Naito

General Manager of Tuas Plant

SafetyIn addition to workplace patrols, emergency response drills
and other regular safety activities, in fiscal 2013 we began
reviewing our operating procedure documents. In fiscal 2014
we will introduce case studies of past disasters. This will
help improve our procedure documents relevant to the sametypes of operations.

•R ecycling polyethylene covers,
flexible containers and wooden
pallets•U tilizing plastic pallets madeusing recycled plastics• Implementing emergency drills
aimed at containing the leak- An emergency drill aimed atcontaining a chemical leakage of chemicals and oil
One plant employee acquired an energy manager qualificationin line with the Singaporean government’s energy saving policies.

We hold dinner events not only to deepen ties among theplant staff but to commend our hard-working employees.

18

DENKA GROUP CSR REPORT 2014

In June 2013, we initiated the production of fibers forhairpieces targeting the African market. During plant
construction, we focused on training inexperienced
local hires while fine-tuning equipment, assisted by the
Ofuna Plant, our mother plant. Thanks to the successof these efforts, our operation got on track within ayear or so following production kickoff. Looking ahead,
we will work hand in hand with the Ofuna Plant as we
aim to achieve even higher product quality and greater
cost efficiency.

 aintain zero-accident record andMstep up safety activities
 romote resource recyclingPand energy saving to reduce
environmental burdens
Reinforce production structure toenhance product quality and cost
efficiency

Takafumi Kono

General Manager of Tuas South Plant

SafetyFortnightly safety patrols allow us to keep an eye on employees’
observance of the “5S”* and avoidance of unsafe practices while
identifying potential dangers. The findings of the patrols are reported at safety meetings and appropriate countermeasures aretaken. Looking ahead, we will undertake a near-accident reporting initiative while encouraging employees to attend various safetyrelated training sessions andacquire relevant qualifications.

*“5S” refers to Seiri (sort), Seiton(set in order), Seiso (shine), Seiketsu(standardize), and Shitsuke (sustain).

Patrolling the worksite2) Reducesteam consumption intensity to cut CO2 emissions
attributable to boiler combustion3) Encouragepeople to turn off unnecessary lighting and air
conditioners

Communication
In addition to daily morning meetings before work begins, representatives from each section regularly gather and discuss safety
and other operational issues, confirming the countermeasures
being taken and debating future plans.
We exchanged emergency contact information with othercompanies operating in the vicinity, thereby ensuring that each isprepared to offer support at a time of emergency.
In addition, in May 2013 we hosted a dinner event todeepen ties among the plant staff. We aim to make this a regularannual celebration.

Environment

Environment• Improving productivity to reduce energy and gas consumption intensity while encouraging people to turn off unnecessary lights

CSR Policies

Fiscal 2013 Achievements and Future Initiatives

Communication
Reviewing operating procedure documents

Message from the General Manager

 educe costs by improving production
Rprocesses and technologies

Fiscal 2013 Achievements and Future Initiatives

Firefighting drill

Denka Advantech Pte., Ltd. Tuas South Plant

Plant staff at the dinner event

We will reduce the environmental impact of our operations
through the ongoing initiatives stated below.
1) E nhance productivity to reduce energy, gas and water consumption intensity

Weekly meeting

Dinner event

DENKA GROUP CSR REPORT 201419

Site Reports 2014 Overseas

Site Reports 2014

Denka Advanced Materials (Suzhou) Co., Ltd.

Denka Chemicals Development Suzhou Co., Ltd.

事業所概要

Overview

Overview

Operations To promptly respond to Chinese consumers’ requests for analysis, performance evaluationand product improvements, Denka Chemicals Development Suzhou was established in December 2010,
and kicked off operations in August 2011. Currently, the company conducts R&D pertaining to synthetic
rubbers, HARDLOC and special cement additives. Since fiscal 2013, it has also been conducting researchon functional food packaging sheets and TEMPLOC temporary adhesive.

Established in January 2006, the company manufactures carrier tape for electronic
packaging and micro-slit products while responding to domestic users’ quality-related requests.
Operations

Products

Carrier tape for electronic packaging

Address

Unit 9B, Modern Industrial Square, No. 333 Xingpu Road, Suzhou Industrial Park,
Suzhou, Jiangsu, China 215126
Telephone: +86-512-6287-1088

Employees

Address

Unit 1D, Modern Industrial Square, No. 333 Xingpu Road, Suzhou Industrial Park,
Suzhou, Jiangsu, China 215126
Telephone: +86-512-6280-6808

Employees

18 (as of March 31, 2014)

84 (as of March 31, 2014)

Message from the General Manager

CSR Policies

Over the eight years since its founding, Denka
Advanced Materials has steadily expanded its
operations while building a solid track record. This isowing to efforts made by every employee to pursue avision of what Denka Advanced Materials should be asa Japanese company based in China. In fiscal 2013,
we launched an initiative aimed at advancing our “4S”*
activity and facilitating a safety-oriented corporate
culture, aspiring to be a constantly-evolving company.
* “4S” refers to Seiri (sort), Seiton (set in order), Seiso (shine)and Seiketsu (standardize).

Bolster safety initiatives tomaintain our zero-accident
recordStrengthen initiatives forenvironment conservation
Enhance training; continue toupgrade workplaces

Yuichi Kadoya

Message from the General Manager
In 2014, Denka Chemicals Development (DCD)
marked the fourth anniversary of its establishment.
Having started out with the R&D of chloroprene rubber
and functional adhesives, DCD has been expanding
the scope of its research and today handles special
cement additives, functional sheets and temporary
fixing adhesives as well. With the aim of resolving
every issue brought from Chinese customers, we will
strive to enhance our technological capabilities andservice quality to be able to promptly accommodate
customer needs through the development of products
optimized to the Chinese market.

CSR Policies
Achieve zero-accident status
Promote human resource
development by enrichingeducation and training
Improve the working environment
while ensuring compliance
Enhance product quality at thedevelopment stage and aftersales service

Tetsumi Ikeda
General Manager

General Manager(as of fiscal 2013)

Fiscal 2013 Achievements and Future Initiatives
Fiscal 2013 Achievements and Future Initiatives
SafetyCommunication

We have pursued safety activities with the objectives of eliminating danger spots and ensuring that safety rules are strictly
observed. In fiscal 2014, we will step up these activities tofacilitate a safety-oriented corporate culture, with the slogan“Let’s work hand in hand to create a company with a safe andclean working environment in which every employee can findtheir job rewarding.”

To facilitate communication among employees, we hold annualcompany trips while holding sports festivals every year. We believe that building harmonious relationships between employees is key to creating a safety-oriented corporate culture andsecuring business growth. In line with this belief, we will undertake these and other activities to invigorate communication.

Environment
We constantly strive to improve manufacturing yields andthereby reduce waste generation. As a part of initiatives to reduce CO2 emissions, we have posted signs near switches reminding people to turn off unnecessary lights in order to eliminate wasteful habits and thereby reduce energy consumption.

Employees on a company trip organized in October 2013

SafetyEnvironment1) Preparing standard procedure documents and operational
manuals for R&D equipment
Preparing at least one document per month for each product group (chloroprene rubber, food packaging, HARDLOC
and special cement additives) in both Chinese and Japanese
2) Undertaking safety activities on a regular basis• Holding monthly safety meetings to review the progress ofsafety activities and discuss other safety issues as well as
continuing to carry out safety patrols• Having each employee write down their tasks for the day
and related safety rules in “safety log” every morning before
work begins• Carrying out self evaluations of adherence to safety rules ona weekly basis well as peer reviews within each section• Translating near-accident case studies, etc., into Chineseand checking them by doing roundtable read-throughs• Examining accidents that have occurred at other businesssites to upgrade DCD’s countermeasures
In addition to continuing with these initiatives, we will systematically incorporate suggestions by employees to achieve zeroaccident status.

We commission outside companies specialized in wastewater
treatment to remove organic solvents and other hazardous
effluent from our testing process. We will continue to give due
consideration to environmental preservation in our operations.

Communication• Internal meetings
1) Monthly safety meetings
2) Daily morning meetings before work begins
3) Monthly reviews on operational issues to report the progress of ongoing projects• Communication activities
1) Company trips2) Barbeque parties andother outdoor activities
3) End-of-year parties andother dinner events

DCD employees

20

DENKA GROUP CSR REPORT 2014

DENKA GROUP CSR REPORT 201421

Site Reports 2014 Major Affiliates

Site Reports 2014

DENKA Polymer Co., Ltd.

DENKA SEIKEN Co., Ltd.

Overview

Overview

Established in 1966, DENKA Polymer Co., Ltd. manufactures an array of lightweight plastic
food containers. Drawing on the DENKA Group’s comprehensive strengths, DENKA Polymer is striving tomaximize the performance of its multilayered and composite sheets while enhancing their wrapping functions,design and coloring to improve product value and open up a range of possibilities for packaging materials.

Operations DENKA SEIKEN Co., Ltd. supplies vaccines and diagnostic reagents to fulfill its mission of protecting people’s lives and well-being. Since its founding, DENKA SEIKEN has ceaselessly
striven to eliminate infectious and lifestyle-related diseases with the keyword “prevention.” Products OPS products, prepared food trays, food containers, PSP food trays, SOFLIGHT
products, agricultural packs and stretch films for food packaging

Influenza vaccines, bacteriological diagnostic reagents, virological diagnostic reagents,
Products
clinical chemistry diagnostic reagents, immunological diagnostic reagents and point of care testing(POCT) products

Operations

Address

Head Office: 5-25, Kiba 1-chome, Koto-ku, Tokyo
Telephone: +81-3-5632-9530
Plants:Three in Chiba Prefecture (Sakura, Goi, Katori)

Employees

528 (as of March 31, 2014)

Address

Head Office: Nihonbashi Mitsui Tower, 1-1, Nihonbashi-Muromachi 2-chome, Chuo-ku, Tokyo
Telephone: +81-3-6214-3231
Plants:Niigata Plant, Kagamida Plant (Gosen, Niigata)

Employees

598 (as of March 31, 2014)

Message from the President

CSR Policies

Message from the President

CSR Policies

Adhering to a fundamental business policy of
manufacturing and marketing safe containers thatpeople can use with confidence, we are committed toremaining a sincere company deserving people’s trustand have positioned customer satisfaction as ourforemost goal. Moreover, we will step up thedevelopment and supply of environment-friendly
products that assist customers’ environmental andenergy saving initiatives. In these ways, we will
redouble our efforts to become a sustainable company
that deserves lasting trust.

Because DENKA Polymer
handles products that people use
every day, its corporate policy is
focused on safety and trust. This
also applies to its stance toward
employees and shareholders.
With this in mind, we are working
to ensure legal compliance andenergy saving while nurturing
human resources.

As we manufacture vaccines and diagnostic reagents
aimed at protecting people’s well-being, we havepositioned maintaining the stable supply of highquality products as our utmost social mission. Goingforward, we will develop and manufacture productsthat are needed by people around the world, thereby
combating the threat of various infectious and otherdiseases.

As befits an enterprise inspiredby the value of life, Denka
Seiken’s mission is to protect
people’s health and thus earn thetrust of society. In line with this,we will proactively implement
CSR activities, including healthpromotion and environmental load
reduction initiatives as well as local
contribution initiatives.

Tetsuro Maeda

Tsuyoshi Sakamoto

President

President

Fiscal 2013 Achievements and Future Initiatives

Fiscal 2013 Achievements and Future Initiatives

development capabilities to facilitate the creation of innovative
products that significantly curb environmental burdens.

SafetyWe are facilitating worksite communication centered on faceto-face contacts while implementing safety patrols focusedon identifying danger spots and unsafe behaviors. Findings
gleaned through patrols and documented using digital cameras are reviewed at monthly Safety and Health Committee
meetings. In addition, aiming to prevent the type of accidents
we saw in fiscal 2013,
which affected back-office
workers and those fromsubcontractors, we willraise safety awarenesswhile facilitating fundamental worksite improvements.

Communication
To deepen interaction with local communities, each plant isparticipating in initiatives hosted by the industrial complexes
to which they belong. For example, they take part in cleanup
activities while supplying their container products for use inlocal industrial festivals. Going forward, we will step up efforts
aimed at facilitating communications, building robust partnerships in which we can support one another in emergencies as
a community member.

SafetyCommunication

In recent years, we have experienced no major occupational
accidents and facility-related incidents thanks to risk assessments and proactive initiatives undertaken by the Safety and
Health Committee. As the scope of our corporate activities is
growing, we will givedue consideration tosafety in the courseof construction andexpansion work.

We hold periodic exchange meetings with neighborhood associations while proactively taking part in and co-sponsoring
various local sports events to foster greater understanding of
our operations as a healthcare business operator.

No. 56 Building established at the Kagamida Plant

Face-to-face communications

Environment

Environment
We have been reducing energy consumption intensity 1% ormore every year, achieving the target set forth in nationalenergy-saving legislation. While expanding the supply of weightsaving containers, we will leverage the DENKA Group’s overall

22

DENKA GROUP CSR REPORT 2014

Barbeque party held to welcome new recruits

Since our Niigata Plant is in a residential area, we recognizethat minimizing the noise and exhaust gas generated by ourfacilities is a crucial task. We invite local residents to join us
in monitoring the environment surrounding our plants and tocontact us whenever they notice something unusual.

GOSEN KOYO MARATHON co-sponsored by DENKA SEIKENDENKA GROUP CSR REPORT 201423

Site Reports 2014 Major Affiliates

Site Reports 2014

CRK Corporation

Hinode Kagaku Kogyo Kaisha Ltd.

Overview

Overview

In 1963, CRK Corporation was established through joint investment by DENKA and local interests based in Takasaki City, with the aim of developing, manufacturing and marketing chloroprene rubber-based compounds and their molded products. Building on its accumulated expertiseand experience, CRK has expanded its scope of operations to encompass such products as waterstop and fire-resistant materials for construction and civil engineering use. Today, CRK manufacturesand sells a range of natural and synthetic rubber compounds and their processing products.
Operations

Operations Founded in 1949, Hinode Kagaku Kogyo became the first in the world to develop a
phosphate fertilizer, initiating the manufacture of this product in 1950 under the brand name YORIN.
Since then, Hinode Kagaku has remained Japan’s leading fertilizer producer and has striven to enhancequality and create new products while cultivating potential demand. In these ways, Hinode Kagaku
helps to develop fertile soil, thereby contributing to greater crop yield.
Products
YORIN and BM YORIN (fused magnesium phosphate), TORETARO (fused silicate phosphate fertilizer), mixed fertilizer and chemical fertilizer

Rubber compounds, industrial rubber products, fire-resistant thermal expansion rubber
products, butyl adhesive tape, hydrophilic water-stop rubber tape and quakeproof manhole joints
Products

Address

306, Koyagi-cho, Takasaki, Gunma

Employees

67 (as of March 31, 2014)

Telephone: +81-27-362-7510

Message from the President

CSR Policies

Having celebrated the 50th anniversary of its foundingin 2013, CRK Corporation is committed to fulfilling its
social responsibilities by establishing a uniquepresence as a “good company” for both employees
and external stakeholders. We will develop a favorable
workplace environment while striving to fortify ourroots in the community and achieve further businessexpansion. We will upgrade our facilities, systematicallyaddressing safety concerns due to the aging of our
production lines, in order to enhance both productivity
and profitability.

We are striving to reduce waste
and enhance our recycling
ratio. As our production lines
handle carbon black andsimilar products that are easily
dispersed, we strive to keep
facilities clean. Moreover,
we maintain communication
with other companies andassociations in the vicinity, withdue consideration given to local
contributions.

Hiromasa Minowa
President

Address

660, Aza Kuratani, Maizuru, Kyoto
Telephone: +81-773-75-5760

Employees

47 (as of March 31, 2014)

Message from the President
In 1949, Hinode Kagaku Kogyo was establishedas Japan’s first phosphate fertilizer producer.
Now popular in Japan, our phosphate fertilizer isthe only product of this kind certified asconforming with national standards for fertilizers
used for organic plant production, garnering asolid reputation for safety and environmentfriendliness. Looking ahead, we will develop new
products tailored to latest customer needs byleveraging the rich technological heritage
accumulated since our founding while passing
down our techniques to future generations.

CSR Policies
Basic Policy
Contribute to society through fertilizer production
while facilitating employees’ self-fulfillment
Environmental Policy
Promote environmental management activities inline with KES* Step 2 to ensure our harmonious
coexistence with the earth’s environment
Safety Policy

Shizuo Takagi
President

Quality Policy

Fiscal 2013 Achievements and Future Initiatives

Strengthen process control by employing statisticalanalysis methods

SafetyCommunication

Since April 2013, we have been promoting the 3-S and 3-Tei
campaign* while reviewing our risk assessment results. Despite our eight-year track record of no accidents requiring
absence from work, we recognize that our safety level not yet
perfect. With this in mind, every morning before work begins,
we gather employees and provide them with instructions pertaining to occupational safety and health.

In fiscal 2013 and 2014, we participated in softball games
hosted by DENKA’s Shibukawa Plant. While facilitating worksite communication, which we recognize is essential to safety,
we address mental health issues by inviting external specialists
to lecture employees.

Fiscal 2013 Achievements and Future Initiatives* A workplace initiative focused on the 3-S, namely, Seiri (sort), Seiton (set inorder) and Seiso (shine) and the 3-Tei, namely, Teii (proper position), Teihin(prober labeling) and Teiryo (proper quantity).

Environment
We conduct regular cleanup activities within and around our
premises a member of the local community. Even though theimpact of our operations on theenvironment is already relatively
low, we continuously strive to
reduce waste generation andenhance recycling rate while conserving energy.
Regular cleanup and weeding activity

24

DENKA GROUP CSR REPORT 2014

Every employee regularly checks his/her own andcolleagues’ actions at the worksite to ensure safety

CRK staff joined a softball game hosted
by DENKA Shibukawa Plant

SafetyWe are implementing risk
assessment activities andincorporating employee suggestions for improvement.
On-site operators engage indiscussions, clarifying andprioritizing risks. The progressof risk mitigation countermea- Safety meetingsures are reviewed at monthly meetings. In addition, to prevent
low back pain, which two of our employees suffered during
fiscal 2013, we distributed back support belts while revising
working methods.

Environment
The 50th anniversary celebration

Based on the KES* Step 2 environmental management system, we are working on improvements related to wastewaterand exhaust gas. Specifically, we are undertaking the trial application of effluent neutralization technology with an eye toinstalling a dedicated facility. Simultaneously, we are striving tominimize environmental load substances in our exhaust gas,selecting raw materials with low sulfur content.
* Abbreviation for Kyoto Environmental Management System Standard. Formulatedby an NPO based in Kyoto, KES Step 2 is designed for relatively large SMEs, andcomprises management items that are virtually identical with ISO 14001.

Communication
To facilitate communication with on-site operators, we encourage our employees to write down their concerns in a sharednotebook while addressing issues
they have pointed out as in need of
improvement. We will further enhance
worksite communication by increasing opportunities for exchange, suchas recreation events aimed at nurtur- Cleanup activity undertaken
ing a sense of unity.
around the Isazugawa River

DENKA GROUP CSR REPORT 201425

Site Reports 2014 Major Affiliates

Site Reports 2014

DENKA Azumin Co., Ltd.

Environmental Performance
Denka Singapore Pte., Ltd. Merbau Plant

Overview

Item

Originally, DENKA Azumin Co., Ltd. had been the Hanamaki Plant of Japan Metals& Chemicals Co., Ltd. Established in 1962, the plant initiated the production and marketing of
AZUMIN in the following year. In 2003, AZUMIN operations were transferred to DENKA and the plant
was reorganized into DENKA Azumin Co., Ltd., making a new start as a manufacturer of humic acidfertilizer and other related products. Remaining a pioneering company in the field of humic acid fertilizer, DENKA Azumin is striving to contribute to agricultural production.
Operations

Products
Address
Employees

118, 5 Chiwari, Nimaibashi, Hanamaki, Iwate

Telephone: +81-198-26-2131

28 (as of March 31, 2014)

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

Fiscal 2014 target

–

–

–

–

–

–

10,000t

0.3

0.3

0.3

0.4

0.4

PRTR substance emissions

–

–

–

–

–

–

NOx emissions

t

4

1

1

1

1

SOx emissions

t

–

–

–

–

–

–

CO2 emissions (from energy sources)

Soot and dust emissions

AZUMIN (magnesium humate fertilizer)

Message from the President

Unit

Energy consumption intensity

Wastewatert
1,000m3

–

–

0

0

41.448–34.02344.29645.000

COD (BOD) discharges

t

0.4

0.1

0.1

0.1

0.1

Waste generated

t

126

151

254

254

245

Final waste disposal

t

–

–

–

–

–

Unit

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

–

—

—

—

—

—

CSR Policies
Denka Singapore Pte., Ltd. Seraya Plant

We have manufactured AZUMIN for a half century,
helping to improve farmland soils. In doing so, we
have maintained a good occupational safety trackrecord through employee education and training
centered on the handling of hazardous substances,such as nitric acid and heavy oil. We will step up these
initiatives, with all employees working together.

Maintain a zero-accident
record (current target:achieving 1,000 days of zeroaccident operations)

Mamoru Nakamura
President

Item
Energy consumption intensity
CO2 emissions (from energy sources)

Fiscal 2014 target

10,000t

3.1

2.9

3.4

3.0

3.4

PRTR substance emissions

–

—

—

—

—

—

Pursue environmental
conservation and management
activities

NOx emissions

t

5

5

5

5

5

SOx emissions

t

1

1

1

1

1

Soot and dust emissions

t

—

—

—

—

—

Build relationships of trust withlocal communities

Wastewater

1,000m3

64

58

98

98

100

COD (BOD) discharges

t

2

2

3

3

3

Waste generated

t

301

232

574

785

600

Final waste disposal

t

—

—

—

—

—

Unit

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

–

—

—

—

—

—
2.4

Fiscal 2013 Achievements and Future Initiatives
Denka Advantech Pte., Ltd. Tuas Plant

SafetyCommunication• We thoroughly disseminated company policies at monthly
meetings held by subcommittees in charge of risk prediction, safety patrols, energy saving and logistics operations,
respectively. We also implemented countermeasures toaddress issues identified by each subcommittee. Thanks
to these efforts, we achieved zero-accident status for 839
consecutive days as of March 31, 2014.
• We emphasize raising safety awareness among younger
employees who have been recently assigned to production
sections.
• We will continue to thoroughly implement safety education
centered on the handling of nitric acid while carrying out drills
aimed at preventing leakage accidents in collaboration withlocal fire department.

• On July 5, 2013, we celebrated the 10th anniversaryof our restart as a DENKA
Group member, with all
DENKA Azumin employees
and representatives fromsubcontractors, as well as
The 10th anniversary ceremony
those from DENKA Head
Office’s Agri-Products Dept. At the event, we gave presentations on the history of improvements in production management, environmental countermeasures, manufacturing
facilities and product quality. The ceremony helped cement
the unified commitment of all employees to the creation of a“good company” over the next 10 years.
• To facilitate interaction with local residents, we participate ina local anti-pollution council, with employees attending its
general meetings as well as exchange gatherings. Moreover,
we have invited council members to join plant tours.
• As in fiscal 2012, we participated in the Hanamaki City
Industrial Exhibition in fiscal 2013, aiming to facilitate understanding of AZUMIN fertilizer among people from the area.

Environment• We measured air, water and noise pollution as well as vibrations emanating from our facility and reported that all were
within limits set by the city legislation.
• We will continue searching for methods to reduce NOx
emissions, which are inherent to our operations.

26

DENKA GROUP CSR REPORT 2014

Item
Energy consumption intensity
CO2 emissions (from energy sources)

Fiscal 2014 target

10,000t

2.7

2.7

2.6

2.5

PRTR substance emissions

–

—

—

—

—

—

NOx emissions

t

375

548

322

501

501

SOx emissions

t

0

0

0

0

0

Soot and dust emissions

t

—

—

—

—

—

96.450105.19099.05096.54095.580Wastewater

1,000m3

COD (BOD) discharges

t

0

0

0

0

0

Waste generated

t

451

503

383

411

403

Final waste disposal

t

404

449

348

381

373

Unit

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

–

—

—

—

—

—

10,000t

—

—

—

0.2

0.4

PRTR substance emissions

–

—

—

—

—

—

NOx emissions

t

—

—

—

1

2

SOx emissions

t

—

—

—

0

0
0.1

Denka Advantech Pte., Ltd. Tuas South Plant
Item
Energy consumption intensity
CO2 emissions (from energy sources)

Soot and dust emissions

Fiscal 2014 target

t

—

—

—

0

1,000m3

—

—

—

3

6

COD (BOD) discharges

t

—

—

—

—

—

Waste generated

t

—

—

—

140

400

Final waste disposal

t

—

—

—

0

0

Wastewater

DENKA GROUP CSR REPORT 201427

Site Reports 2014

Site Reports 2014

Denka Advanced Materials (Suzhou) Co., Ltd.
Item
Energy consumption intensity
CO2 emissions (from energy sources)

CRK Corporation

Unit

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

–

—

—

—

—

—

Energy consumption intensity

Item

10,000t

—

—

—

0.05

0.05

CO2 emissions (from energy sources)

Fiscal 2014 target

Unit

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

–

—

—

—

—

—

10,000t

0.09

0.08

0.08

0.08

0.08

Fiscal 2014 target

PRTR substance emissions

–

—

—

—

1

—

PRTR substance emissions

t

0.1

0.1

0.1

0.1

0.1

NOx emissions

t

0

0

0

0

0

NOx emissions

t

0

0

0

0

0

SOx emissions

t

0

0

0

0

0

SOx emissions

t

0

0

0

0

0

t

—

—

—

0

0

Soot and dust emissions

t

—

—

—

0

0

1,000m3

20

80

50

2

50

Wastewater

1,000m3

74

73

74

75

74

Soot and dust emissions
Wastewater
COD (BOD) discharges

t

0

0

0

0

0

COD (BOD) discharges

t

0

0

0

0

0

Waste generated

t

39

99

130

112

109

Waste generated

t

73

80

75

84

80

Final waste disposal

t

39

99

130

112

109

Final waste disposal

t

24

27

34

37

35

Unit

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

Unit

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

–

—

—

—

—

—

Energy consumption intensity

–

—

—

—

—

—

10,000t

—

—

—

—

—

CO2 emissions (from energy sources)

10,000t

1.8

2.2

2.3

2.4

2.3

PRTR substance emissions

–

—

—

—

—

—

PRTR substance emissions

t

2

3

3

5

5

NOx emissions

t

—

0

0

0

0

NOx emissions

t

95

220

177

190

185

SOx emissions

t

—

0

0

0

0

SOx emissions

t

68

130

173

118

110

Soot and dust emissions

t

—

—

—

0

0

Soot and dust emissions

t

—

—

—

10.3

10.0

1,000m3

—

0.2

0.3

0.9

0.1

Wastewater

1,000m3

1,400

1,390

1,570

1,880

1,850

Hinode Kagaku Kogyo Kaisha Ltd.

Denka Chemicals Development Suzhou Co., Ltd.
Item
Energy consumption intensity
CO2 emissions (from energy sources)

Wastewater

Item

Fiscal 2014 target

Fiscal 2014 target

COD (BOD) discharges

t

—

0

0

0

0

COD (BOD) discharges

t

2

2

2

2

2

Waste generated

t

—

1

9

19

0

Waste generated

t

—

83

103

244

100

Final waste disposal

t

—

1

9

18

0

Final waste disposal

t

49

41

38

184

35

Unit

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

Unit

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

–

—

—

—

—

—

Energy consumption intensity

–

—

—

—

—

—

10,000t

1.3

1.2

1.2

1.2

1.3

CO2 emissions (from energy sources)

10,000t

0.5

0.6

0.6

0.5

0.5

PRTR substance emissions

t

0

0

0

0

0

PRTR substance emissions

t

0

0

0

0

0

NOx emissions

t

0

0

0

0

0

NOx emissions

t

32

35

27

29

29

SOx emissions

t

0

0

0

0

0

SOx emissions

t

1

2

1

2

2

Soot and dust emissions

t

—

—

—

0

0

Soot and dust emissions

t

—

—

—

—

—
596

DENKA Polymer Co., Ltd.
Item
Energy consumption intensity
CO2 emissions (from energy sources)

Wastewater

DENKA Azumin Co., Ltd.
Item

Fiscal 2014 target

Fiscal 2014 target

1,000m3

0

0

0

0

0

Wastewater

1,000m3

596

596

596

596

COD (BOD) discharges

t

0

0

0

0

0

COD (BOD) discharges

t

2

4

2

4

4

Waste generated

t

169

112

103

113

110

Waste generated

t

43

24

37

78

32

Final waste disposal

t

1.9

2.1

0

0

0

Final waste disposal

t

41

32

44

63

24

Unit

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

–

—

—

—

—

—

DENKA SEIKEN Co., Ltd.
Item
Energy consumption intensity
CO2 emissions (from energy sources)

10,000t

1.5

1.5

1.5

1.5

1.5

PRTR substance emissions

t

0

0

0

0

0

NOx emissions

t

3

5

4

3

3

SOx emissions

t

3

3

2

3

3

Soot and dust emissions

t

—

—

—

0

0

1,000m3

564

536

674

440

500

Wastewater

28

Fiscal 2014 target

COD (BOD) discharges

t

0

0

0

0

0

Waste generated

t

351

386

337

275

275

Final waste disposal

t

55

48

41

42

42

DENKA GROUP CSR REPORT 2014

DENKA GROUP CSR REPORT 201429