Profile of MGC

Profile of MGC

Financial highlight(as of March 31, 2006)

Name

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Address

Mitsubishi Building, 5-2, Marunouchi 2-chome,
Chiyoda-ku, Tokyo 100-8324, Japan

Consolidated
340.7

FY 2003

Unconsolidated

240.5

Established on

April 21, 1951

Capital￥41.97 billion

Net sales￥439.8 billion (Consolidated)

388.5

FY 2004

281.6
439.8

FY 2005￥326.5 billion (Unconsolidated)
Number of Employees

Net sales

326.5

4,466 (Consolidated)

0

100

200

300

400

500

(billion yen)

2,159 (Unconsolidated)
30 companies

Number of consolidated subsidiaries

Number of related companies on the equity method 11 companies

Operating profit

URL : http://www.mgc.co.jp/eng/menu.html (English)
http://www.mgc.co.jp (Japanese)

Consolidated

14.9

FY 2003

Unconsolidated

5.5

Main Business Sites in Japan① Headquarters② Osaka branch office③ Nagoya branch office④ Tokyo research laboratory⑤ Niigata research laboratory⑥ Hiratsuka research laboratory⑦ Tokyo techno-center

30.8

FY 2004⑧ Niigata plant⑨ Mizushima plant⑩ Yokkaichi plant⑪ Yamakita plant⑫ Kashima plant⑬ Naniwa factory⑭ Saga factory

18.3
38.9

FY 2005

22.2
0

10

20

50

Sales Ratio by operation (Consolidated)
④

0.4%

⑫
⑨

⑦

15.5%

Natural gas chemicals operation

26.7%

28.0%

⑬②

40

(billion yen)

⑧ ⑤

⑭

30

⑪⑥①

Aromatic chemicals operation
Specialty chemicals operation

29.4%

⑩③

Information andAdvanced materials operation
Any other operations

Main products

01

Natural Gas Chemicals Company

Aromatic Chemicals Company

MethanolFormalin
Ammonia
Metylamines
Methyl methacrylate
Methacrylates
Polyols
Dimethylether
Ubidecarenone (Co-enzyme Q10)
ASC Super (Catalase)
Hydrogen generation device frommethanol
Catalysts

m-Xyleneo-Xylenep-Xylene
Methaxylylene diamine
1,3-BACMX nylon resin
Toluic acidAromatic aldehydes
Trimellitic anhydride
Pyromellitic anhydride

Specialty Chemicals Company
Hydrogen peroxide
Sodium percarbonate
Persulfates
Hydrosulfite
Chemicals for electronic industries
Monomer for plastic lens
Polycarbonate resin (Iupilon®)
Polyacetal resin (Iupital®)
Modified polyphenylene ether(Iupiace®)
Polyamide MXD6 (Reny®)
Polyamideimide (AI polymer®)

Information and Advanced
Materials Company

Epoxy•BT resin copper cladlaminates
Materials for multi-layer printed
circuit board
BT resin®
LE sheet®
AGELESS® (oxygen absorber)
Anaero pack®
RP system®
AGELESS•OMAC®
Pharmakeep®

Profile of MGC

01

Contents

02
03

Message from the President

05
07
09
10

Environmental and Safety Management
Targets and Results of Responsible Care Activities
Responsible Care Audits
Responsible Care Activities Targets in 2007

11

Approach to Occupational Health and Safety

13

Approach to Process Safety and Disaster Prevention

15
Safety Information Service
16
Environment-friendly Products and Research and Development 17
Approach to Chemicals and Products Safety

Environmental Load in Our Business Activities
Environmental Accounting
Approach to Global Warming Prevention
Approach to Chemicals Release Reduction
Approach to the Atmosphere, the Waters and the Soil
Zero Emission of Waste

19
20
21
23
25
26

Environmental Communications
Environmental and Safety Activities in Affiliates
Responsible Care Activities at Each Plant

Editorial policy
This Environmental Report 2006 is issued toreport MGC's Responsible Care (RC) Activities(Occupational health and safety, Process
safety and disaster prevention, Environmental
preservation, Product stewardship, Distribution
safety, Dialogue with the community, Spectrumof RC) widely, and to promote our own RC
activities.
This report was prepared with reference to theEnvironmental Reporting Guidelines (fiscal
2003 edition) of the Japanese Ministry of theEnvironment.

27
29
33

Scope of this report
Sites covered:

All MGC's domestic workplaces
The environmental performance data are based on
only those of plants where the production is carriedout.
Period covered: From January 1, 2006 to December 31, 2006
Provided that the period of the environmental
performance data are those from April 1, 2005 to
March 31, 2006 (fiscal 2005).
Publication:
March, 2007
The next publication scheduled: October, 200702

Message from the President

We, Mitsubishi Gas Chemical (MGC), strongly recognize that securing environmental preservationand safety is a crucial part of carrying out sustainable development of our sound business activities,
and the voluntary improvement activities in which all of our employees participate positively for thispurpose are indispensable, we have been expanding company-wide activities with the Responsible
Care (RC) initiative securing as the effective means.
Since the launch of MGC Responsible Care activities concurrently with Japan Responsible CareCouncil (JRCC) at its inception in 1995, I am delighted to be able to inform you of the steady growth
in a continuous upward spiral of the Plan-Do-Check-Act (PDCA) cycle with repeated trial and error.
Our environmental report has been issued every March after MGC issued the 2001 edition of theannual report and provides considerable information about our environmental and safety activities. As
a result, I am again pleased to introduce you to a brief overview of our latest issue of the environmental
report 2006 (Responsible Care status report 2006).

Fundamental Policies on
Environment and Safety
MGC Responsible Care initiative was launched by the president's
implementation rollout statement on RC both inside and outside
MGC, and since then we have been working to stipulate ourfundamental policies on the environment and safety on the basisof various activities and to disseminate these company-wide.
We have emplaced zero accident, zero occupational injury andenvironmental preservation among our fundamental policies
on environment and safety, and have provided nine fundamental policy items in order to put into practice the policies
referred to above. Additionally, ensuring corporate compliance
was specified as a fundamental element for all activities.

Responsible Care Promotion System
For encouraging proactive Responsible Care activities, MGC
has instituted the Responsible Care Promotion System, which
is promoted by the entire department, and the president is the
top promoter in this system.
Additionally, MGC has established the environment and safety03

meeting, RC audit and various committees for working on thenecessary activities.
Every December, we regularly hold the environment andsafety meetings, which are chaired by the president andconsisted of all of our department heads, as the highest levelmeeting for sustaining our environment and safety activities.
At this meeting, Responsible Care activities status of the past
year is confirmed and activity targets for the next year are
deliberated and adopted.

Establishment and execution of
Activity Targets
Our Responsible Care activities cover the following scope(items).
Occupational Health and Safety
Process Safety and Disaster Prevention
Environmental Preservation
Chemicals and Products Safety
Distribution Safety
Dialogue with the CommunityWe have established RC Mid-term targets (5 years targets) andannual RC activity targets as our master plan to accomplishcompany-wide progress for every RC item.
Each plant and workplace has established activity targets inaccordance with the master plan every year and all of theiremployees have participate in carrying out these RC activities
for each item.

Responsible Care Audits
We have practiced Responsible Care audits as a means forconfirming the status of achievement in the activity targets.
The RC audit team, which is lead by the director in charge ofenvironment and safety, has been implementing for auditing of
every workplace, and the team has carrying out its audits
between August through October every year.
We recognized the RC audits program as the essential meansfor ensuring the spiraling up of the PDCA cycle and breaking
out of ruts in RC activities. The matters to be improved, which
are pointed out by the RC audits program, will be incorporated
our next year's activity target.
In addition, the RC audits results should be notified to theenvironment and safety meeting.

Topics of Environmental and
Safety Activities in fiscal year 2006
As part of our occupational health and safety program, aiming
for achievement of zero occupational injury we gave the priority
to prevention of human error and then we worked on the proactive
promotion of HIYARI-HATTO (equiv. near miss) submission
activity by all employees and the safety assessment for
facilities and operation by our occupational risk assessment.
As part of our process safety and disaster prevention efforts,
aiming for achievement of zero accidents, we have worked on
the steady implementation of our prior safety evaluation
procedures for the plans of new or additional plants, therevising of our disaster prevention schemes including mutual
cooperation with the neighboring affiliate company's plants,
and on the other hand, we have made efforts to solve theproblem of loss of experience in the company with the increasein the number of retired employee in 2007.
As part of our environmental preservation activities, as ourcountermeasures against global warming we have set targets
for the reduction of both the energy consumption rate index
and the Greenhouse Gas (GHG) emission rate index and thenwe have launched the effort to achieve them company-wide. In
addition we have focused on the reduction of both Pollutant
Release and Transfer Register (PRTR) substances and theemission of waste.
As part of our chemicals and products safety efforts, we havetaken the appropriate introduction of Globally Harmonized

System of Classification and Labeling of Chemicals (GHS),
participation in and supporting programs to collect and address
safety information on specific chemicals in Japan, so called theJapan Challenge Program, and the response to the new EU
chemicals control regulation REACH.
As part of our distribution safety activities, we have ensured
the carrying out of our distribution audits program, thecomprehension of the Carbon dioxide emission during ourdistribution services and the promotion of modal shift.
As part of our dialogue with the community, we issued ourenvironmental report (Japanese and English) while we haveparticipated in the Japan Responsible Care Council (JRCC)
member experience exchange meetings, community eventsand etc.
This environmental report covers our concrete Responsible
Care activities described above, I sincerely hope that you will
read this report and will deepen your understanding about andappreciation of our activities.
I welcome any suggestions and assistance you may offer on
how we can continue to be a very trusted company and partner
for you, just as we should continue to strive in our efforts toearn and maintain our social trust.

March, 2007

Representative Director, President

Hideki Odaka

04

Environmental and Safety Management
We, Mitsubishi Gas Chemical Company, Inc. (MGC), are understanding activities to promote sustainable development and creation of a recycling-based-society as important business objectives.

Corporate Philosophy
MGC is fully committed to making contributions towards development in harmony withsociety through the creation of a diverse range of value based on chemistry.

Management Philosophy
The management of MGC
is dedicated to providing comfortableworkplace, paying due respect tothe will and ability of our employees,
and is determined to create
energetic workgroups.

With a view towards worldwide
needs, our marketing efforts will
focus on identifying and enlarging
the world's markets.

With full knowledge of themarket's needs, we will implement
creative research and development
to nurture the seeds of our efforts
to realize the best results.

By making efforts to upgrade
technology, preserve the environment
and promote safety, we will engage
in the manufacture of better
quality products.

We are a transparent company,
where all employees work
towards a common goal.

As part of our implement action of our Corporate Philosophy and Management Philosophy, we have been carrying out the Integrated
Safety Management System. This system is a set of activities aimed at preserving the environment and ensuring safety at all stages ofchemical substance life cycles from development and manufacturing to distribution, use, final consumption, and disposal.

Fundamental Policies on Environment and Safety
MGC, as an important member of the community, makes an effort to earn social trust by recognizing our responsibility to contribute to the community and to secure
the environment and a safe workplace and products, and by thinking of how to put our corporate activities in harmony with the protection of the global environment
under the principle of sustainable development.

[Environmental and Safety Targets]

Zero Accident, Zero Occupational Injury and Environmental Preservation[Fundamental Policies]■ Ensuring of health and safety in our operations■ Securing security management of facilities and increasing self-maintenance technologies and skills■ Reducing environmental loads in business activities■ Ensuring safety in use, handling and disposal of products■ Developing of environment-friendly and safety-conscious products and technologies■ Ensuring environmental preservation and safety in the logistics of obtaining raw materials and storing anddelivering our products■ Enhancing of society's confidence to us■ To provide support to our subsidiaries and affiliates in implementing their own RC activities■ Continuously improving our RC management system

We shall comply fully with applicable domestic laws and foreign rules and shall also cooperate with related international organizations, international and national
administrative organs, and nongovernmental organizations whenever needed.

05
MANAGEMENT SYSTEM

Message from the Director in charge ofenvironment and safety

Director, Senior Managing Executive Officer

Shoji Uematsu

Nowadays, it is indispensable for the development of enterprise to steadily bear the obligationsof the social responsibility and at the same time to ensure that it has obtained society's trust.
Under the circumstances, the requirements are not only corporate compliance but also thesustainable improvement in all our Responsible Care activities and the fundamental basis is toprevent crisis involving hazard or risk through confidence-building activities of risk prediction
and based on this the discovery of latent hazard or risk while taking appropriate measures to
respond to them.
Securing the environmental preservation and safety, which have prevention as a keyword,
should be carried forward by our executives with leadership and our employee by voluntarily
participating in cooperative activities, and from that standpoint I believe that all of us assume
some responsibility for all of our operations.

Responsible Care Promotion System
President

Director in charge ofenvironment and safety

The Environment and Safety Meeting, which ischaired by the president and is consisted of whole
our department head, is held as supreme legislative
organization for RC activities in every December.

Environment and
Safety Meeting

Executive office: Environment and Safety Division

4 Internal companies
8 Divisions in corporate

RC Promotion
Committee

6 Plants
3 Laboratories

Environment and Safety
Committee at each workplace

Each workplace acts according to its own RC promotion system
under policies, plan and etc. decided by the Environment and
Safety Meeting.

Field of our RC activities• Occupational health and safety• Process safety and disaster prevention• Environmental preservation• Chemicals and product safety• Distribution safety

PDCA cycle in Responsible
Care activities

Dialogue with the community

Status of ISO14001 certification

MGC continuously carries out the improvement by planning
our activities on RC (Plan), executing the plan (Do), auditing
the results of activities and confirming the issues (Check)and reviewing the activities by executives and making themreflect to the next year plan (Act).

Aiming for promoting the effective environmental preservation
activity, MGC had promoted the introduction of environmental
management system since 1997 and all plants obtained thecertification of ISO 14001 in 2001.
Status of ISO14001 certification
Plant

Planning of annual activity
Reviewing of activities

Plan

Act

Implementation of plan

Continuous improvement

Check

Do

month/year

Organization

Niigata

06/1998

DNV

Mizushima

05/2000

JCQA

Yokkaichi*

08/1999

JQA

Kashima

02/1999

JQA

Yamakita

05/2000

JQA

Tokyo Techno-Center

10/1998

DNV*) includes Naniwa (certified in 2001) and Saga factories

RC audit

06
MANAGEMENT SYSTEM

Targets and Results of
Responsible Care Activities

Fundamental policies
Occupational
healthand safety

Ensuring of healthand safety in our operations

Process safety
and Disasterprevention

Securing security
management of facilities
and increasing
self-maintenancetechnologies and skills

Environmental preservation

Reducing environmentalloads in business activities

RC Mid-term targets(2006-2010)

Activity targets in 2006

To achieve zero occupational injury

To enhance occupational health and safety activity
across the organization
To evaluate safety of facilities and works by occupationalsafety risk assessment
To support our contractors safety activity

To achieve zero accident

To implement safety assessment based on the detailed
regulation for prior safety evaluation procedures for plan of
new or additional plants
To review effective disaster prevention schemes among
abutting affiliate companies
To improve process safety management systemat certified plants

To reduce energy consumption rate
below 0.9 compared with 1990

To reduce 1% or more of energy consumption rate comparedwith previous year

To reduce GHG emission consumption
rate below 0.8 compared with 1990

To reduce 1% or more of GHG emission consumption
rate compared with previous year

To reduce 10% emission of chemicals
listed in PRTR compared with 2004

To reduce amount of PRTR chemicals
emissions (achieved targets)

To reduce 10% emission of VOC
compared with 2004

To reduce amount of VOC emissions (achieved targets)

To achieve zero emission of waste

To achieve zero emission of waste
To promote green procurement (office and stationery supplies)

Chemicals andproducts safety

Ensuring safety in use,
handling and disposalof products
Developing ofenvironment-friendly andsafety-conscious products
and technologies

To promote development ofenvironment-friendly products andenergy saving technologies
To implement safety assessment of products
To participate in Japan Challenge program
To harmonize with REACH
To assess new substances appropriately
To provide latest MSDS (includes GHS
harmonization)

Distribution safety

Ensuring environmental
preservation and safety
in the logistics for obtaining
raw materials and storingand delivering our products

To reduce any environmental loads
in logistics
To ensure the safety in logistics
To harmonize with the GHS

To harmonize with related legal amendment quickly
To utilize the latest MSDS
To participate in Japan Challenge Program
To understand and to evaluate our R&D froma view point of environment, safety and energy saving

To harmonize with related legal amendment quickly
To audit our logistic companies
To count CO2 emission in logistics
To set CO2 emission reduction target
To promote modal shift and improve efficiency
of distribution systems

Dialoguewith the community

To publish Environmental Report 2005
To publish Environmental site Report
To participate in JRCC dialogue meetingand industry segment activities
To participate in activities and events in local communities

Spectrum of RC

Enhancing of society's
confidence to us(To promote annual targets)

To provide support toour subsidiaries andaffiliates in implementing
their own RC activities

To support their introduction of RC activity
To audit for any affiliates in Japanand overseas

To enact MGC group environment and safety
fundamental policies
To develop annual environment, safety and health target
based on the group fundamental policies
To audit for any affiliates in Japan and overseas

Continuously improving our
RC management system(To promote annual targets)

To review RC education and training curriculum
To implement RC education and training
To review our regulations and rules

07
MANAGEMENT SYSTEM

Estimation Remarks

Achievement of targets:

Necessity of more eﬀorts:

Results and status of activities

No activity:

Estimation

Relevant
page

Hiyari-Hatto suggestion numbers are increasing, and operational visualization for the reduction of Hiyari-Hatto
has been proceeded. The problem to be improved is the participation rate of employee.
We are working on a full-scale occupational risk assessment.
We supported our contractors' safety activity by mutual participation in safety and health committee.

1112

We implemented the safety assessment based on the detailed regulation or site rules.
Our process safety and disaster prevention regulations were revised for reviewing disaster prevention system.
Disaster prevention training with abutting affiliates was drilled.
In certified plant on high-pressure gas, maintenance management system was developed and reviewed to correspondwith amended regulations.
In certified plant on boilers and 1st class vessels, staff gained knowledge such as aged deterioration provision
by workshop for license renewal.

13
14

In fiscal 2005, energy consumption rate decreased by 1.1% compared with previous year and by 0.88 comparedwith fiscal 1990. Our mid-term target has already been achieved.
In fiscal 2005, because of fuel conversion to natural gas, GHG emission consumption rate decreased by 2.5%
compared with previous year and this results in 0.83 compared with fiscal 1990. In fiscal 2006, the rate decreased
by 1% compared with previous year.
In fiscal 2005, amount of PRTR chemicals emission increased by 8% compared with previous year. In fiscal 2006,
because of countermeasure to factors causing this increase, the amount decreased by 1% compared with fiscal 2004.
In fiscal 2005, amount of VOC emission increased by 10% compared with previous year. In fiscal 2006,
because of countermeasure to factors causing this increase, the amount decreased by 1% compared with fiscal 2004.

19
21
22
23
24
25
26

The volume zero of final disposal was achieved at the three plants. Final disposal in fiscal 2006 will be decreasedby 100 tons compared with 516 tons in fiscal 2005.
All workplace promote the green procurement by wider variety of goods.
All covered products by Industrial Safety and Health Low were labeled with GHS slip on container or package.
Revised MSDS has been distributed to customers for effective utilization.
Japan Challenge Program substances are planed to gather data on their safety and testing has been started.
We proclaim the environment-oriented harmonization with sustainable society as our R&D policy,
and we are promoting R&D from the view point of ecology, safety and energy saving.

15
16
17
18

Container or package with GHS label based on the Industrial Safety and Health Low have been distributed
since December for the object products of the low.
Main contractor of logistic companies was audited by our auditor.
For counting CO2 emission in logistics, we introduced the new counting system and are doing test run.
Because of test run on the counting system, CO2 emission reduction target is not set.
We have carried out modal shift and improved the efficiency of distribution systems from the possible ones.

16
22

Our environmental report has been published every year and disclosed on our website.
Two site environmental reports have been published.
MGC, as a member of JRCC, has communicated with public, local administrative and neighboring companies
by participating every year in RC community dialogue meeting at each district where our plants are located.
We carried out the volunteer activities for cleaning and beautification around the workplace, the reception of plant visits
and the opening of our welfare provisions.
We actively participated in the volunteer activities for cleaning and beautification, the firefighting training and the festivals
in local communities.

27
28

MGC group's companies planed and implemented each annual environment, safety and health target based on
environment and safety fundamental policies.
MGC group's environmental and safety conference draw up the rules of a conference for promoting activity.
We carried out the RC audit to our 3 domestics and 2 overseas subsidiaries and affiliates.

29
30
31
32

RC education and training curriculums were reviewed and RC education textbook was prepared.
Each workplace has RC education and training, disaster prevention training and emergency drill.
Integrated Safety Management System Rule and related regulation were reviewed and revised.

14

08
MANAGEMENT SYSTEM

Responsible Care Audit
Our Responsible Care audit system is consisted of the RC pre-audit on the basis of checking documents and records and the
RC audit in a comprehensive way by the director in charge of environment and safety, and auditors evaluate both the progressin RC activity plan and the efforts to spectrum of RC at each workplace. In addition, they also evaluate whether or not PDCA
cycle on the security management system is surely implemented at the plants that are certified to carry out the self inspection
and/or to operate the facilities continuously on the basis of the certification of high pressure gas and/or boilers and 1st classpressure vessels. The RC audit results are notified to the Environment and Safety Meeting and incorporated into our next year
activity target.

RC auditing in 2006

RC auditing system

Auditing period: From August to October in 2006
Auditee: 6 plants, 3 laboratories, and 4 internal companies
and 1 corporate at Headquarters
Pre-auditing items• Security management status regarding certification ofhigh pressure gas (only at certified plants)• Security management status regarding certification ofboilers and 1st class pressure vessels (only at certified
plants)• Priority auditing subjects in 2006
• Standard checking list by JRCC
Auditing items• Progress in RC activity plan and status of security
management activity• Performance date on environment and safety• Results of internal RC audit• Follow-up of pointed out subjects in previous year's
auditing• Response to the requirement to accident preservationand thorough compliance• Other subjects related to environmental preservation andsafetyAuditing results: Good point (13 cases)
Nonconformity (0 case)
Matters to be improved (10 cases)
Comment with advice (42 cases)
Follow-up of pointed out subjects in previous year's
auditing
The auditors confirmed the appropriate countermeasureson pointed out subjects in previous year's auditing while
pre-auditing and RC auditing.

RC audit program

Pre-auditing
Auditee

Plants, Laboratories

AuditorExpert team

Auditing items

Documents and records

Auditing
Auditee

Plants, Laboratories
Internal companies
Purchasing & Logistics Division

AuditorExpert teamled by director in charge

Auditing items

Progress of activity targets,
and RC complianceIssuance of RC auditing report

Notify to Environment and Safety Meeting
Matters to be improved in common with all workplaces
We confirmed the matters to be improved in common withall workplaces by spreading out the auditing results ofeach workplace at the Environment and Safety Meeting.

Matters to be improved in common with all workplaces in 2006 RC audits
RC pre-audit

RC audit09
MANAGEMENT SYSTEM

To be
improved 1

Countermeasure on accident/occupational injure should be
reviewed not only on ostensible factor but also on
background factor and taken preventive steps should betaken.

To be
improved 2

Disaster prevention training has to include crisis
management such as communication with outside.

To be
improved 3

Education curriculums should be devised so as to beeffective for the increase of employee's sensibility to risk,for example to determine of their comprehension.

Responsible Care Activities Targets in 2007
We have been working on the Responsible Care activities targets in 2007 which were determined at the Environment and
Safety Meeting in December, 2006 toward the achievement of our Responsible Care mid-term targets from 2006 to 2010.

Occupational
health and safety
Process safetyand disasterprevention

Environmental Preservation
Chemicals and products safety
Distribution safety

Mid-term target● To achieve Zero occupational injury

Targets in 2007

○ For eliminating our human error• To activate our suggestion activities on Hiyari-Hatto (near miss) across the employees• To review the educational methods for improvement of employees' sensibility to risk
○ To enhance the occupational safety and health risk assessment activity○ To make sure the risk reduction activity before starting a non-routine work

Mid-term target● To achieve Zero accident

Targets in 2007

○ To reinforce the safety management for facilities without authorized inspection under any law○ To enforce the management for any changing in process and verify the effectiveness of it○ To review the crisis management system in case of an accident

Mid-term target● To reduce an energy consumption rate below 0.9 in compare with fiscal 1990
● To reduce a GHG emission rate below 0.8 in compare with fiscal 1990
● To reduce an amount of PRTR chemicals emissions equal to 90% of fiscal 2004
● To reduce an amount of VOC emissions equal to 90% of fiscal 2004
● To achieve zero emission of wastes (Definition: To promote 3Rs and to reduce an amount of final
disposal as landfill below 0.3% of generated wastes)

Targets in 2007

○ To promote a countermeasure for energy saving with a focus on major plants and to reduce anenergy consumption rate more than 1% in compare with the previous year
○ To promote energy saving and a fuel conversion to natural gas and to reduce a GHG gas more than
1% in compare with the previous year
○ To reduce an amount of PRTR chemicals emissions more than 2% in compare with fiscal 2004
○ To reduce an amount of VOC emissions more than 2% in compare with fiscal 2004
○ To approach our zero emission of wastes through setting the target values on the ratio of zero
emission or the reduction amount of final disposal at every workplace○ To promote our green procurement (office and stationery supplies)

Mid-term target● To provide the latest MSDS (including the harmonization with GHS)
● To implement safety assessment of products• Participation in the Japan Challenge Program• Harmonization with REACH regulation• Pertinent assessment of new substances● To promote the development environment-friendly products and energy saving technologies

Targets in 2007

○ To review and provide the MSDS based on latest safety information○ To harmonize with amendment of Industrial Safety and Health Law (GHS)○ To research and verify a substance contained in our product○ To implement the Japan Challenge Program○ To plan the appropriate countermeasure to REACH○ To review our flow of newly-developed product safety assessment○ To promote the development environment-friendly products and energy saving technologies

Mid-term target● To introduce the globally-harmonized system (GHS)● To ensure the safety in our logistics● To reduce the environmental loads in our logistics

Targets in 2007

○ To verify the GHS labeling○ To enhance our auditing for delivery consignment companies○ To analyze a trouble in logistics and promote a preventative measure○ To analyze an amount of CO2 emission in our distribution and plan reduction scheme of it○ To promote our modal shift

10
MANAGEMENT SYSTEM

Approach to Occupational Health and Safety
Occupational safety activities
MGC has actively worked for RC activities under our original
goal of Zero accident, Zero occupational injury andEnvironmental Preservation as our environmental and safetytargets.
In order to accomplish the original goal, every workplace
has promoted various occupational safety activities throughthe daily safety activity such as Hiyari-Hatto (near miss)suggestion activity, 5S-activity and risk reduction activity,
education and training, and collection of safety slogans.
In the safety week across the country in every July, thesafety message from the president is disseminated to all
employees on our intranet-website and video, and theemployees furthermore confirm the importance to ensure
the safety through the lecture of the top management ofeach workplace at safety meeting.

suggestion contents on workplace website, has beenproceeded.
MGC is hereafter going to enhance furthermore theparticipation rate of employee on this activity.

Results of safety activities
Unfortunately three lost time injuries occurred in 2006,
though our record of lost time injury had kept decreasing
until then.
In the results, our frequency rate on occupational injury,
which is the number of employees with lost time injuries per
one million working hours, was 0.92 and our severity rate,
which is lost days per one thousand working hours, was 0.03
(unspecified). It became our worst record in a several years.
Most our occupational injuries were caused by lack ofsensibility for latent risk in a work.
We should improve our sensibility through the above
Hiyari-Hatto suggestion activity and risk reduction activity
before stating a non-routine work.

Frequency rates
1.20

5S-activity situation(The Kashima plant)

Pointing and vocalizing training
in tool box meeting (The Niigata plant)

1.00

1.02 0.98

0.98
0.92

0.83

Transition of Hiyari-Hatto suggestion(Number)

13,233

12,78514,0000.92

0.53

14,296
0.40

0.29

0.28

12,000

0.20

9,388

10,000
8,000

1.01
0.90

0.80
0.60

16,000

0.99
0.88

8,578
7,060
6,173
5,718

6,430

6,000

0.00
2002

MGC

2003

2004

2005

Chemical industries

2006 (Year)

Manufacturing industries

4,000

Severity rates

2,000
0

2002

Explicit

2003

2004

Latent2005

2006 (Year)

Suggestion

0.12

11
OCCUPATIONAL HEALTH AND SAFETY

0.11

0.11

0.10
0.08

In our Hiyari-Hatto activity, numbers of suggestion on
Hiyari-Hatto consisting of explicit one and latent one havebeen positioned as the indicator for both improvement ofsensibility and activation level of RC activities, and we havepromoted the suggestion on Hiyari-Hatto.
The numbers of suggestion on Hiyari-Hatto are increasing
year by year, particularly the ratio of latent Hiyari-Hatto isincreasing.
The operational visualization, such as the release of the

0.12

0.09
0.07

0.07

0.07
0.06

0.06
0.04
0.02

0.03
0.02

0.02
0.001

0
2002

MGC

2003

2004

Chemical industries

0.001
2005

2006 (Year)

Manufacturing industries

Presentation of safety activity
Tokyo Techno-Center received the performance award of
Director-general of Tokyo Labor Department at theTokyo-industrial Health and Safety Convention in 2005 forcontinuous record of "4.6 million hrs" of Zero occupational
injury and introduction of Occupational Health and Safety
Management System, and the Center made a presentationof their safety activity at the same convention held in July,
2006.

Our occupational safety risk assessment

For
SafetySmall group
activities forselecting(Pick up)

Risk factors

Risk assessment
Consideration of
the best way

Self improvement(Equipment measures
to be taken)(Risk re-assessment)

Effort to emergency aid

Presentation at Tokyo-industrial health and safety convention

Automated external defibrillators (AEDs) can be recently foundat station, public facility and other places and they are usedin case of cardiac arrest in recent days. In MGC, 5 workplaces
have AEDs and staffs are trained to use it.
In addition, for effort to emergency aid, manual resuscitator
has been equipped andemployee has training for firstaid at each workplace.

Occupational safety risk assessment
Aiming for raising our level of occupational safety and health,our occupational safety risk assessment was introduced inlast year and we are working on a full-scale activity in thisyear.
The occupational safety risk assessment is used for event
analysis in Hiyari-Hatto suggestion, and the occupationalsafety risk assessment meeting in a sector is held regularly
for picking up and improvement of the unsafe point inworksite.
Several workplaces hold the meeting to make a presentationof the assessment results for supporting the activation of ouroccupational safety risk assessment activity.

AED information panelat the Yokkaichi plantComment byRepresentative at plant
The Kashima Plant
Environment and safety / quality
assurance department manager

Kenji Tanabe
The Kashima plant has continuous record of "12 years" ofZero occupational injury, however we have HIYARI (nearmiss) situations during this period.
The reason why they did not become serious is, I believe
as follows; we had taken our patient safety activities suchas monthly safety meeting, Hiyari-Hatto suggestion activity
and occupational safety risk assessment review meeting.
For continuous Zero accident and Zero occupational injury,
we will make efforts to promote secure safety activities
together.
Presentation of Risk assessment for occupational safety(The Kashima Plant)

12
OCCUPATIONAL HEALTH AND SAFETY

Approach to Process Safety andDisaster Prevention
MGC has determined the securing of safety as a top priority issue and we proactively address the employee to securesafety to achieve Zero accident and Zero occupational injury, through the promotion of self-maintenance based on RC
activities. Furthermore, we have constructed our disaster prevention system in case of an accident.

Process safety management
As part of RC auditing in each workplace every year, we
implement the auditing of process safety. Especially thecertified plants, which have acquired approved qualification
on high pressure gas production facility, have the auditing
for their inspection organization by Director in charge of environment and safety, based on the Certified Process Safety Management Regulation on High Pressure Gas. In this auditing, eachinspection organization of the certified plants was confirmedby third party whether its process safety management iscorrect or not according to the standard specified by Ministerof Economy, Trade and Industry.
High pressure gas process safety management system
President
Environment and Safety Meeting
Director in charge of environment and safety(In charge of security management of facilities)
Environment and safety division at Head Office(In charge of self-maintenance certification)
Audit on administrative structure tocertified inspection organization

In order to prevent an accident and an occupational injury, it isimportant to ensure process safety and facility's good condition
and to continue stable operation.
The each plant is actively making efforts on process safety
management activity proactively, for example, it has put safetyassessment in execution according to the detailed regulation forprior safety evaluation for the plan of new or additional plants
and/or related original rules of each site.
MGC is promoting the operational visualization of facilities,
exemplified by the improvement of a piping rack labeling.
Main activities security of safety for facilities in each plant

Mizushima
plant

Reviewing the point to be checked and cycle at facilities
To pick up the weak point of each section by checklist and take thecountermeasure for it
Thoroughness of operational visualization
Development of the site original process safety management rule onhigh pressure gas
To review the earthquake countermeasures at toxic gas facilities

Yokkaichiplant

To evaluate safety assessment based on rules
To pick up the risk at facilities based on rules

Kashimaplant

To revise the prior safety evaluation regulation for the plan of new oradditional plants and educate employees according it
To introduce the TPM activity
To implement the prior safety evaluation for the plan of new or additional
plantsTo carry out the safety patrol before new facility's operation

Niigataplant
Plan
ActionSecurity
management offacilities system

Do

Check

Confirmation of appropriate
certified inspection system

The security of safety activities
for facilities

RC auditCertified plantChief administrator of certificatedinspection organization(Appointed by the president)
Administrative structure to certified
inspection organizationpressure vessel, has started working for license renewal andthe facility staff in the Kashima plant tried hard to gain
knowledge on aged deterioration provision and etc. byworkshop on high pressure gas facility for our promoting
self-security management.

Certificatedinspection
organization

Administrative structure• Security management offacilities division• Operational management
division• Facilities management
division

The Niigata and Mizushima plants had the extraordinary
environment and process safety auditing based on the
Integrated Safety Management Rules, because both plants
caused several accidents and/or occupational injuries
continuously in 2006.

Yamakita
plant

Comment byRepresentative at plant
The Mizushima plant
Environment and Safety
Department Manager

Mitsuru Wakuta

Promotion of self-security management
The Niigata plant, which has acquired approved qualification
on high pressure gas production facility, has developed andrevised its own process safety management system according
to the High Pressure Safety Act revised last year and related
rules.
And also the Mizushima plant has been developing the similar
process safety management system.
The Yokkaichi plant, which has acquired approved
qualification on continuous operation of boilers and 1st class13
PROCESS SAFETY AND DISASTER PREVENTION

I believe it is indispensable to take measures for environmental
prevention and disaster prevention, and behave properly
and minimize accident/disaster whenever they occur.
And also, disaster prevention education is necessary for
employees in charge of maintenance.
Commercial manufacturing at the Mizushima plant has been
continued for over 40 years.
For continuous safety and security of sustainable business,
we have picked up and minimized any latent risk and madeefforts for appropriate management at aged facilities andclassified education of employees.

Emergency Management"Operational visualization" on piping rack
(The Mizushima plant)

Educational and supporting activity
It is very important for safe and reliable operations to handdown technology and skill. Therefore, each plant has handed
down through training programs the technology and skill byusing the skill table and the one point lesson sheet, andbesides, implemented the acquisition fundamental technology
and skill for maintenance, instrumentation and operation. The
affiliate companies have attended above-mentioned training
programs for upgrading their operation technology, skill andsafety.
In addition, we have improved our sensibility and understanding
for safety through the simulation and renewed recognition oftroubles happening in the past.

We have constructed the self-disaster prevention system at
each workplace in case of an accident. Each workplace has
set up their disaster prevention activity rule which has defined
emergency system and activity. Furthermore, the Niigata,
Mizushima, Yokkaichi and Kashima plant, to which thePetroleum Complex Accident Prevention Act has been applied,
have entered into the regional joint accident prevention
agreement with neighboring companies and constructed amutual support system with them in case of an emergency.
Each workplace develops its annual disaster prevention planand implements the periodical training for disaster prevention.
Each plant has equipped with materials and equipment for
emergency in case of an accident in transportation of our
products. We have constructed our wide-area support systemfor emergency measure by getting in touch with each otherplant, whenever an accident happens. As the result ofequipping with materials and equipment for emergency, we
help the cooperating with the fire station and police stationon the accident happening at the neighbor of plant intransportation of other company's products, if required.

Emergency call procedure on phone(The Niigata plant)

Joint firefighting training withfire station(The Tokyo techno-center)

Firefighting training(The Niigata laboratory)Integrated disaster prevention training(The Kashima plant)

Disaster prevention training(The Hiratsuka laboratory)

Assistance the leakage accident(The Yamakita plant)

Education at the value productive maintenance center(The Yokkaichi plant)

Training at the in-house maintenance school(The Mizushima plant)

14
PROCESS SAFETY AND DISASTER PREVENTION

Approach to Chemicals and Products
Safety Management
As a chemicals supplier's responsibility, we clarify the characteristics, safeness and handling method of our products and carryout various kinds of activities to keep safety, health and environment of every user of our products.

We have managed our system to secure the product safety
under our enacted products safety assessment standard.
This system is the one for the examination of products whether
they are satisfied with the standard for their commercialization,
through the implementation of assessment, classification andevaluation of the hazard and risk in each development stage
from the preliminary study of raw materials to the disposal of
products via the sale on the market.

Additionally in this system, recommended appropriate
handling method of products is decided on the basis ofhazard information and it is reflected in Material Safety Data
Sheet (MSDS), warning label and Yellow-Card (emergency
information card during distribution) which are furnished tocustomers of products.

Flowchart of safety assessment for chemicals and products

Preliminary study

Safety assessment

Hazard classification

Access to MSDS of material
Literature searching

Hazard assessment
Assessment of environmental
safetyUnited Nations classification
Japanese classification
Study of applicable law※※

Preparation of safety
information

Investigation of saleon the market

MSDS
Product warning label
Yellow-Card

Assessment of risk
management
Judgment of sale on the market

Product supply
Rationalization of product storage
and transportation
Compliance with applicable law
Collection of customer information

Customer information

Safety Assessment of Chemicals
MGC obtains any necessary safety information from not only
literature searching but also testing in our research laboratories
and utilizes it for the evaluation of chemicals safety.
Especially, the Niigata research laboratory has the certified
biodegradability and mutagenic (Ames) tests facilities inaccordance with GLP*.
We have conducted several safety tests for new chemicals,
especially biodegradability and mutagenic (Ames) tests
specified by laws and regulations at our GLP certified test
facilities in the Niigata Research Laboratory.

The Niigata Research Laboratory with GLP facilities

15
CHEMICALS AND PRODUCTS SAFETY

In addition, this Laboratory owns the test facilities for acute oral
toxicity, primary skin irritation and pathogenicity, and theses
safety tests on 52 chemicals were conducted at this laboratory
in 2006.

*Good Laboratory Practice (GLP) is a quality system concernedwith the organizational process and the conditions under which
non-clinical health and environmental safety studies are planned,
performed, monitored, recorded, archived and reported.

Safety testing (Ames)Safety Information Service
MGC actively collects the safety information relating to our products. Based on the collected information, we prepare theproduct catalogs, MSDSs, safety handling guidelines, Yellow-Cards and warning labels in accordance with GHS.

Flowchart of the safety information service
MGC

Study and research of chemical safety

Distributing agent

Information for Information forsales department
logistics

Product catalogs
MSDSs
Safety handlingguidelines

Japan Challenge Program

Product catalogs
MSDSs
Safety handlingguidelines

Customer
Logistic company
Warning labels
Yellow-Card

Warning labels
Yellow-Card

Container and packaging label
We have secured the product safety by labeling withhazardous information, risk aversion pictogram andhandling caution on the container or package of hazardous
product. In December, 2006, the Industrial Safety and
Health Law was amended and it requires us to make theclassification and labeling of chemicals on the basis of the
Globally Harmonized System of Classification and Labelingof Chemicals (GHS). Pursuant to the amended law, wechanged the classification and label of listed products by
the law so as to harmonize with GHS specifications,although the quality of our products does not change.

The Japan Challenge Program is the combined governmental
and industrial program for both gathering of existing chemicalsafety information with increasing speed and disseminatingof that information to Japanese people.
MGC is participating into 4 substances whose production
volume is large. By this time, the gathering plan of safety
information for each substance has been made and thesafety test has been launched.

Participation substances in the Japan Challenge Program● 1,3-cyclohexanedimethanamine (submit to OECD)● 3,4-dimethylbenzaldehyde● Cyclohexyl methacrylate (in consortium)● Benzene-1,2:4,5-tetracarboxylic dianhydride (in consortium)

OECD HPV Program
The OECD HPV program is the safety evaluation program
concerning the chemical substances whose annual
production volume in one country is not less than 1,000 tons
(high production volume).
MGC has been participating in this program through theJapan Chemical Industry Association (JCIA) and/orInternational Council of Chemical Association (ICCA) since
1999.
Among 17 substances in which we are taking part, we havealready evaluated the 13 substances (including of ourleading 3 substances) through the Organization for
Economic Co-operation and Development (OECD).
Additionally MGC is supporting the Long-Range Research
Initiative (LRI) concerning the impact of chemicals on healthand the environment by ICCA, via JCIA.

Overseas regulation REACHMSDS

The new chemical control regulation in EU, which is known
as REACH, will enter into force in June 2007. MGC is
participating in the Japan Chemical Council in Europe andJapan for REACH and making an effort to harmonize withinternational regulatory trend.

Yellow-Card

Label harmonized with GHS

16
CHEMICALS AND PRODUCTS SAFETYEnvironment-friendly Products
and Research and Development
We are actively making efforts to develop products and technologies by considering energy and resource saving, global
warming prevention, low load to environment and etc.

AGELESS OMAC ® oxygen
absorber film
The oxygen absorber AGELESS® has been extensively used
to prevent foods from oxidization and degradation, moldand preserve their freshness. The conventional AGELESS®
is not able to use for liquid foods or microwave meal,
because of the packaging of iron powder. Considering thedownsize of conventional AGELESS®, MGC developed andput on the market the oxygen absorber film AGELESSOMAC® in which oxygen absorbing and film production
technology are combined. Now, this new oxygen absorber
film AGELESS OMAC® is used as not only containers forvarious retort foods, but also alternative material for can andit has been receiving high reputation for its preservation
ability of food quality, contribution to the decrease of packaging volume and etc.

Waste water treatment agents
Diafresh® series
OR-SON AT®
So far, the conventional Fenton method, which uses ferrous
ion and hydrogen peroxide, has been used for treatment of
persistent substances in waste water. However, this method
has not spread extensively due to both a large amount ofsludge formation and hydrogen peroxide retention after
treatment. For solving this problem, MGC developed theoriginally improved catalyst for Fenton method Diafresh®
OR-SON AT® by using our acquired various technologies.
The Fenton method with our catalyst has the following
benefits, both reducing of used ferrous ion and amount ofsludge formation and hydrogen peroxide non-retention after
treatment. In addition, organic alkalis and organic chloride
compounds, which can not be decomposed by the conventional Fenton method, have come to be degraded throughthis new method. Now, this new catalyst agent has been
widely used for the treatment of waste water containing
amine from manufacturing process of semiconductors, liquid
crystals and printed circuit boards and other persistent
substances in waste water.

Conventional
methodWith OR-SON AT®

Oxygen absorber film AGELESS OMAC®
is used as alternative material for can

Downsized AGELESS®
MGC made use of the various technologies to develop thedownsized AGELESS®. As a result of employment of new
AGELESS®, household waste is reduced by 20% comparedwith the conventional AGELESS® and it contributes to the
low load to environment.

Comparing conventional method with new method(with OR-SON AT®)F-SON ®
The F-SON ® is the agent for separation and treatment offluorine compounds in waste water. It is able to further
reduce the fluorine content in waste water by additionallyadding F-SON ® to the treatment facilities using calcium.

NEOSOL ®
The NEOSOL® is the agent to prevent the oil-base paint mistfrom adhering and to make easy the recovery of dispersed
paint in the recycled water in a painting booth.

NEOPOCK ®
Diafresh® series leaflet

17
CHEMICALS AND PRODUCTS SAFETY

The NEOPOCK® is the chemical agent for effective
aggregation and separation of water-based paint, watersoluble polymer.

Approach to development andspread of fuel DME
MGC and 8 companies will construct the new production
plant with annual production capacity of 80,000 tons dimethyl
ether (DME) at the Niigata plant for development and spreadof next-generation clean fuel DME which does not generatesoot and sulfur oxides during combustion.
And we are participating in the DME fuel auto-truck test run
on public roads which is implemented by the National Traffic
Safety and Environment Laboratory.
The long-distance test run of DME fuel large-sized auto-truck(20 tons) has been started between Yokohama and Niigata
under the official authorization to submit a commercial
viability and spread research plan.
The MGC-owned fuel station for DME charge supplies tothis auto-truck at the Niigata city.

Development of high performance
dumping material NEOFEDO®
The noise such as motor sound from vacuum cleaner,refrigerator and washing machine became obvious inresidence as those feeling uneasy, because the outward
noise is prevented from coming into residence by improvement of its airtightness. The dumping technology, which has
effect of amplitude control of vibration, was required for theprevention of these noises. MGC developed the higher performance dumping material than the conventional one, throughour original polymerization technology and inorganic filler
technology. Now, this material is adopted on the latest
vacuum cleaner.
As a result, our material has gained the high reputation that
it is useful for not only noise reduction but also improvementof sound quality.
We are also striving to develop its application technology
to the fields to which conventional materials could not beapplied.

Thus, we are promoting the development and spread ofclean energy.

DME fuel large-sized auto-truck (20 tons)

Development detergent
YUTLAS ACETM for oil pollution
The YUTLAS ACETM developed by MGC is made from natural
products and is the new and different type of detergent foroil pollution from the ordinary one. The new type detergent
has superior adsorbability to the conventional ones, whichshows inferior oil adsorbability decline in the case of contaminated water and oil. exist as the mixture.
In addition, the YUTLAS ACETM promotes the oil pollution
biodegradation since it becomes nutritive substance itself
for microorganisms degrading oil. And the YUTLASACETM is expected to be new
detergent for soil clean-up
and emulsified oil.

The oil pollution detergent
YUTLAS ACETM

Decontamination ratio (oil adsorbability)
Bunker A Decontaination ratio (%)

100
90

70
60
50
40
30
20
10
0

High performance dumping material NEOFEDO®

YUTLAS ACETM
Organic series detergent
Inorganic series detergent

80

1

2

3

4

Detergent/Bunker A (Weight ratio)

18
CHEMICALS AND PRODUCTS SAFETYEnvironmental Load in Our Business
Activities
The overview of our environmental load status in fiscal 2005 is shown below.
MGC makes efforts to ensure the efficient use of inputted resources and materials as well as the reduction of emission andwaste.

INPUTOUTPUT
Emission to Atmosphere

Energy consumption

1,587 k tons-CO2
CO2 emission
GHG 5 gases emission
7 k tons-CO2
SOx emission
410 tons
NOx emission
906 tons
Soot and dust emissions
42 tons
Emission of PRTR listed
chemicals
316 tons(as crude oil)
559,000 kl

Total counting of consumed
fuel and purchased steam
and electric power

Release to water area

Water
consumption
40,284 km3

Total counting of
consumed drinking andindustrial water

MGC
business
activities

Drainage volume
34,572 km3
COD emission
266 tons
Total nitrogen emission
407 tons
Total phosphorus emission 73 tons
Releases of PRTR listed
chemicals
30 tons

8 production sites

Release to soil
0 ton

Generation of waste

Raw materials

Transfer to off-site 11,042 tons
Final disposal
waste for landfill
516 tons

Definition terms
CO2 emission: Total emission volumes of carbon dioxide (CO2) in our business activities
GHG 5 gases emission: Total emission volumes of methane, dinitrogen monoxide,hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride gas in our business activities
converted in terms of CO2
SOx emission: Total emission volumes of SOx contained in exhaust gas from our utility facilities
NOx emission: Total emission volumes of NOx contained in exhaust gas from our utility
facilities soot and dust emissions: Total emission volumes of soot and others contained inexhaust gas from our utility facilities
Emissions of PRTR listed chemicals to atmosphere: Emission volumes of the listed 45
chemicals to the air
Drainage volume: Volumes released to the public water area after treatment of drainage fromour business activities

COD emission: Volumes obtained with multiplying our drainage volumes by COD concentrationin our drainage
Total nitrogen emission: Volumes obtained with multiplying volumes of our drainage bynitrogen concentration in our drainage
Total phosphorus emission: Volumes obtained with multiplying volumes of our drainage byphosphorus concentration in our drainage
Drainage of PRTR listed chemicals to water area: Drainage volumes of the listed 45
chemicals to the public water area
Transfer to off-site: Volume of waste transferred to off-site for external treatmentfinal disposal
waste for landfill: Amount of final disposal for landfill after off-site treatment
Final disposal waste for landfill：Amount of final disposal for landfill after off-site treatment

Frequency

19
ENVIRONMENTAL PRESERVATION

Environmental accounting
MGC has been introducing and counting the environmental accounting along the guideline of the Ministry of the Environment
since fiscal 2002. It is intended to be of help to the MGC's efficient environmental preservation activities and to keep clearnessof our approaches by disclosing it to the public.

Transition of investment and cost

Environmental preservation cost

Investment (Million¥)With the reinforcement of
Amount of investment
production capacity at some production facilities in fiscal 2005,
the pollution prevention cost increased owing to the capital
investment to control any prospective increasing ofenvironmental load to the atmosphere and water.
Furthermore, MGC promotes the approach to energy saving
and reduction of Greenhouse gas emission to prevent the global
warming. At the same time, the amount of investment relating
to the global environmental preservation cost had also
increased owing to the capital investment for effective use ofenergy.

Environmental investment
Million¥
1,800

1,708

Environmental
damage1,600

Socialcontribution

1,400

R&D

1,200

Management
activity

1,108

1,000

Up or down
stream800

Resource
recycling

600

Global environmental
preservation

400

Water pollution
prevention

200

Air pollution
prevention

0
FY2004

FY2005

Cost (Million¥)

1,800

7,500

1,708

1,600

7,310

6,946

1,400

7,000

1,200

6,380

1,000
800

767

600
400

6,500

1,108

6,118
6,000

Investment

514

Cost

200

5,500
FY2002

FY2003

FY2004

FY2005

Amount of cost For maintenance and improvement ofenvironmental preservation, the pollution prevention cost andthe global environmental preservation cost increased in fiscal
2005. As a result, the total amount of cost was 7310 million
yen.
The sum of the pollution prevention cost and the global
environmental preservation one came to approximately 56%
of total amount of cost.

The counted actual
Economic benefit (Actual benefit)
economic benefit is shown in the following table.
The economic benefit with environmental preservation measures
Actual benefit
The effect by energy saving
The gain on sale of valuable waste

Amount (Unit: million ¥)
172
60.5

Implementation in conformity with the Environmental Accounting Guidelines 2005
Targeted period: From April 1, 2005 to March 31, 2006
Scope: Unconsolidated basis
Counting methods : Investment: The amounts, associated with environmental preservation,
are prorated from its ratio in capital spending during this fiscal year.
Cost: The amounts are associated specifically with environmental preservation, and thedepreciation of machinery and equipment is included.
Economic benefit: The amount of economic benefit is summed only in the items in which it
can be clearly calculated as the amount of money

The categorized investments and costs in accordance with environmental preservation category in FY 2005
Unit

Amount: million ¥Ratio: %Onsite cost

Pollution prevention cost

Global environmental preservation cost
Resource recycling cost
Up or down stream cost
Management activity cost
R & D costSocial contribution cost
Environmental damage cost
Total

Main items for activity
Air pollution prevention
Invest.: Incinerator
Cost: Off gas scrubber
Water pollution prevention
Invest.: Facility making drainage harmless, and etc.
Cost: Wastewater treatment facility maintenance
Noise prevention, etc.
Warming preservation, Energy saving, etc.
Waste management, Recycle treatment
Green procurement, Container recycling, etc.
Compliance with ISO 14001, Environmental loads observation
Developing of environment-friendly products and energy saving technology
Site greening, Supporting local community
Compensation for environmental preservation

FY2005
investment
cost
Amount Ratio Amount Ratio
866

50.7

819

11.2

211

12.4

1,625

22.2

0
417
1
0
11
202
0
0
1,708

0.0
24.4
0.1
0.0
0.6
11.8
0.0
0.0
100.0

4
1,603
856
58
545
1,644
55
101
7,310

0.1
21.9
11.7
0.8
7.5
22.5
0.7
1.4
100.0

rates

20
ENVIRONMENTAL PRESERVATION

Approach to global warming preservation
On Mid-term targets
MGC is working on the following Mid-term targets against global warming issue.
Final target year
: 2010Target for improvement of energy consumption rate
: To reduce below 0.9 compared with 1990
Target for improvement of Greenhouse gas emission rate : To reduce below 0.8 compared with 1990

Energy saving activity
The amount of the energy consumption in fiscal 2005 on thebasis of crude oil was 559,000 kl in manufacturing sections,and it had increased by 2.6% compared with the previous
year, because of the increase of production. However, theenergy consumption rate was improved by 1.1% comparedwith the previous year and it was 0.88 compared with 1990,
as a result, the Mid-term target has been already achieved.
Through the energy saving measures in 2005 is shown
below, the effect of energy saving was 6,000 kl converted interms of crude oil and they contributed to the improvementof energy consumption rate;• Reduction of steam consumption by heat recovery at thexylene separation facility,• Reduction of steam by changing concentration ofhydrogen peroxide in process at its production facility,• Reduction of electric power by optimization of operating
conditions such as pump, andTransition of energy consumption amount andconsumption rate
Amount (as crude oil x103 kl)
900

1.00

800

1.04

700

563

600
500

Rate index (Fiscal 1990:1)

1.01

0.97
526

542

1.1

0.94
534

0.89 0.88

1.0

559

0.8

545

0.9
0.7

425

400

0.6

300

0.5

200

0.4

100

0.3

• Effective utilization of low pressure by using thermocompressor.

Countermeasures for reduction ofGreenhouse Gas (GHG) emission
The amount of Greenhouse Gas (GHG) emission in fiscal
2005 was 1,593 k tons in manufacturing sections and thismeans 2.1% increase compared with the previous year.
In the breakdown, the amount of CO2 originated fromenergy generation was 1,327 k tons, 83% of the whole, theone originated from production process, that is, from
non-energy generation was 260 k tons, 16%, and theamount of five kinds of greenhouse gas emission was totally
7 k tons, 0.4%.
The GHG emission rate had been improved by 2.5%
compared with the previous year and it was 0.83 comparedwith 1990.
This improvement was resulted from not only decreasing
effect of CO2 emission by energy saving but also
conversion of fuel from coal to city gas at the Yokkaichi
plant as described later.
Component ratio of energy sources (fiscal 2005)
Natural gas
12.5%
35.5%

0.2

0
1990

2000

2001

consumption amount

2002

2003

2004

2005

Purchased electric power
12.6%

Transition of Greenhouse gas (GHG)
emission amount and emission rate
Amount (k tons)

1.00

2,500
2,000
1,500

Coal
Purchased fuel16.1%

consumption rate index

Target of rate in Fiscal 2010

3,000

Heavy oil

6.7%

3.5%

Rate index (Fiscal 1990:1)

0.96 1.01 0.98 0.91
0.86 0.83
1,627 1,510 1,583 1,561 1,560 1,593

13.0%

1.2
1.0
0.8

Purchased steam
By-product fuel, etc.

Details of GHG emission amount(converted to k tons-CO2)
CO2 (energy origin)

1,327.0

CO2 (non-energy origin)

260.0

0.6

Methane

2.1

1,000

0.4

Dinitrogen oxide

0.3

500

0.2

Hydrofluorocarbons

4.3

0.0

Perhydrofluorocarbons

0.0

1,227

0
1990

2000

2001

emission amount
Target of rate in Fiscal 2010

2002

2003

2004

2005

emission rate index

In this report, the data were modified as far back as past by the amended
applicable law. For example, the CO2 emission coefficient of purchased electric
power has been changed from 0.378 to 0.555 kg/kWh.

21
ENVIRONMENTAL PRESERVATION

Sulfur hexafluoride
Total

0.0
1,593.0

Approach to energy saving in
distribution
The approaches to energy saving in distribution are as
follows; we are implementing not only the transportation
with suitable sized vehicle but also improvement in loading
ratio for energy saving efforts in our distribution in conformity with the introduced MGC's entire distribution systemfor effective distribution on the basis of unitary management extending over whole company. Furthermore, wehave been promoting the enlargement of transportation lot
by using a larger tanker lorry as well as modal shift fromthe tanker lorry to rail way container service for the transportation of the hydrogen peroxide, dimethylacetamide andother products.

As a result, we may utilize these for the finding of problem
and countermeasure of energy saving.
Meanwhile, MGC has developed the calculating system tofind the energy consumption and CO2 emission for periodical
report of energy consumption on distribution section, throughtaking the data of transportation load, transportation distanceand transportation mode from the MGC's entire distribution
system under operation. After this, we will plan the energy
saving target on the basis of the quantitative data from thiscalculating system, and promote the further energy saving
and reduction of GHG emission.
Conversion to the natural gas
The natural gas is known as clean fuel which discharges
CO2 per calorific value than other fuel.
MGC has so far been using the natural gas at high rate forenergy source, for instance, the Niigata plant has been using
the natural gas for fuel from our gas well.
The natural gas consumption ratio was over 35% forconversion of co-generation fuel from coal to natural gas at
the Yokkaichi plant, and this resulted in a significant
improvement of greenhouse gas emission ratio.
Now, we will plan to convert fuel to the natural gas at theMizushima and Yamakita plants, and as the result, the natural
gas consumption ratio is expected to increase additionally.

The exclusive ISO container for dimethylacetamide(The transportation by trailer truck to rail way container service)

The topics on efforts
Management of data of energy consumption and
GHG emission
Both the report of energy consumption and the developmentof energy saving target for the owner transporting cargo on
a extensive scale and the report of Greenhouse Gas
emission for manufacturing sector have been mandated byenforcement in April, 2006 of the amended Law concerning
the rational use of energy and the amended Law concerning
the promotion of the measures to cope with global warming.
MGC has reviewed its calculating method of the data ofenergy consumption and GHG emission for manufacturingsection under the amending of both laws. In addition, MGC
has changed the calculating unit from a workplace to a
product.
The management of whole company's data in every
products makes the following possible;• improvement of unit consumption, factor analysis ofdegradation, and• comparison of unit consumption of the same productamong plant.

Comment by Representative at plant
Environment and Safety Division(GHG task force executive office)Hiroshi Machida

MGC has established the
GHG task force for efforts
toward countermeasures of
GHG emission reduction.
The countermeasures of
GHG emission reduction on
manufacturing section arepromoted, through theconsideration of facilities,
operation and process
improvement by information exchange among plants and corporation of related
section.
Distribution sections have so far been making efforts on the
improvement of their effectiveness on the basis of the MGC's
entire distribution system and I expect that their countermeasures are further promoted by the improvement of GHG
emission data calculating system.

22
ENVIRONMENTAL PRESERVATION

Approach to chemicals release reduction
PRTR chemicals in the JCIA's list
MGC has been voluntarily conducting the surveys and reductionof the PRTR chemicals release and transfer from our plants.
(Those PRTR chemicals are listed by the Japan Chemical
Industry Association (JCIA), and the PRTR Law-listed 354
chemicals are all included in the JCIA's list.)

by JCIA's list and our voluntarily picked up one, n-heptane.
The total emission amount was 547 tons, increased byapproximately 8% compared with the previous year, and thetotal transfer amount was 914 tons, increased by approximately
8% compared with the previous year.
Because the RC mid-term target (2006-2010) is to reduce 10%
emission of chemicals listed in PRTR compared with 2004, MGC
has to work on the effective countermeasure for reduction andis promoting the effective countermeasures for their reduction
in fiscal 2006.

The total emission volume of PRTR chemicals in the JCIA's list
Emission volume
tons/year
4,000

[61]
3,000

2,639

[69]
2,419 [71][68]
1,707 1,539 [65] [64]1,244 1,313 [70] [70][73] [73]816
517 507 547

2,000

1,000

0

Chemicals specified by the PRTR Law
In our assessment in fiscal 2005, forty five chemicals were
those to be subjected to register out of 354 chemicals
specified by the PRTR law.
As a result, the total emission amount was 346 tons andtransfer amount was 351 tons.
The following table shows the details of chemicals
registered by MGC on the basis of the PRTR Law but thechemicals, whose total emission amount was less than 0.1%,
were exempted on the following table.

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 (FY)[ ] Number of chemicals

In fiscal 2005, we had specified 73 chemicals as those to beassessed out of 481 chemicals including 480 ones specified

The registered chemicals on the basis of the PRTR Law (results in fiscal 2005)
No.
145
63
283
42
40
227
304
310
224
299
253
320
311
312
313
54

Emission amountEmissionTransfer

Air

Water

Soil

Total

Total

210.6
78.0
0.8
6.3
6.3
6.0
0.1
1.3
2.3
2.2
0.4
1.1
0.0
0.5
0.2
0.2
0.1
316.4

0.0
0.0
23.0
0.0
0.0
0.0
3.8
1.2
0.0
0.0
1.3
0.0
0.5
0.0
0.0
0.0
0.2
30.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

210.6
78.0
23.8
6.3
6.3
6.0
3.9
2.5
2.3
2.2
1.7
1.1
0.5
0.5
0.2
0.2
0.3
346.4

4.8
33.0
0.7
0.0
0.0
7.5
0.2
8.6
11.0
0.0
0.0
26.0
0.4
5.2
0.0
0.4
252.7
350.5

Chemicals
Dichloromethane
Xylenes
Hydrogen fluoride and it's water-soluble salt
Ethylene oxide
Ethylbenzene
TolueneBoron and it's compounds
Formaldehyde
1,3,5-Trimethylbenzene
BenzeneHydrazine
Methylmethacrylate
Manganese and it's compounds
Phthalic anhydride
Maleic anhydride
Epichlorohydrin
Others (29 chemicals)
Total (45 chemicals)(unit: tons/year)

The registered amount (Emission and transfer data in fiscal years)
2001

2002

2003

2004

2005

46

42

44

45

45

Emission (tons/year)

617

507

299

285

346

Transfer (tons/year)

1,139

360

331

261

351

Number of Registration

23
ENVIRONMENTAL PRESERVATION

PRTR
PRTR is the acronym for Pollutant
Release and Transfer Register.
Reporting the emission andtransfer of specific pollutant
substances

Volatile Organic Compounds (VOC)
Under the amendment of the Air Pollution Control Law, theowner of facilities regulated by the law are obligated toregister these facilities to the local government and tomeasure the emission concentration of VOC.
MGC properly harmonizes with the registry and themeasurement based on the law and regulations.
Because the all VOC registered by MGC are specified in the
JCIA's PRTR list, we voluntarily make efforts to reduce theemission amount.
The actual results of the VOC emission amount in fiscal
2005 were 484 tons.
In the responsible care mid-term target (2006-2010), MGC
has set the target to reduce 10% VOC emission comparedwith fiscal 2004, and MGC is going to work on its reduction
through the concrete measures in each plant.

Harmful air pollutants
The JRCC members have been pushing forward to reduce
the emission of 12 harmful pollutants on the basis of theirvoluntary reduction plan since 1996.
MGC has advanced the reduction of discharged amount ofour managing 5 substances (Dichloromethane, Ethylene oxide,
1,3-butadiene, Benzene, Formaldehyde) by means of
introduction of closed apparatus, incinerator of off-gas fromfacilities and reinforcement of their recycle or removal from
off-gas and etc.
The MGC's total amount in 2005 was 220 tons and increased,compared with previous year; however we specified its cause
and have already taken the countermeasures in 2006.

Transition of total emission amount of harmful air pollutants
Emission(tons/year)
1,000

Volatile Organic Compounds (VOC)

900

797

846

800
700

Volatile Organic Compounds means a generic term oforganic compounds that become gas in theatmosphere because of their volatility.
The VOC is one of the causative agents for thesuspended particles and the photochemical oxidants
whose influence on someone's health is feared.
The concept of the best mix, which means the best mix
and the best match of the regulations for the VOC
emission facilities and the voluntary approach to
non-regulated facilities, has been introduced in theamended Air Pollution Control Law in 2004, as aframework of the emission control measures of VOC.
MGC is concerned with 20 chemicals out of main 100
VOC listed by the Ministry of the Environment.

603

600
500

404

400

360 371
277

300
200

320
182 170 220

100
01995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

The emission volumes of each harmful air pollutants
Dichloromethane

211 tons/year

Ethylene oxide

6 tons/year

Benzene2 tons/year

Formaldehyde

1 ton/year

1,3-butadiene

0 ton/year

Registered VOC emission facilities(specified by the Law)Classification

Requirement

NumberStorage facility

Capacity; over
2,000 kl (in existence)

6

Drying facility

Blower capability; over
3,000 m3/h

5

The voluntary efforts

Our voluntary managed VOC in 2005
Dichloromethane, Methyl alcohol, Xylenes, Methyl ethyl
ketone, n-Heptane and the other 15 chemicals
The total amount of emission: 484 tons
The eliminator of harmful air pollutants in off-gas

24
ENVIRONMENTAL PRESERVATION

Approach to the Atmosphere,
the Waters and the Soil
COD in effluent discharge

Prevention of Air Pollutions(tons)

MGC has been working on the reduction of the air pollutants
such as sulfur oxide (SOx), nitrogen oxide (NOx), soot and dust,
etc. The countermeasures for the SOx reduction have been
executed, for example, by setting up smoke gas desulphurizationequipment of the boiler exhaust gas, and converting the fuelto low sulfur heavy oil or city gas (natural gas) and etc. MGC
has kept the concentration and total amount of air pollutants tobe sufficiently lower than the required value by laws andregulations, furthermore, we have controlled their values.
Each total emission amount of SOx and NOx has increased infiscal 2005, compared with the previous year; however, the soothas desirably decreased by 29% because of the converting
fuel for boiler and etc.

1,500

1,000

504
500

0

2000

392

2001

304
2002

210

238

266

2003

2004

2005 (FY)COD: Chemical Oxygen Demand; An index of water pollution which is amount ofoxygen required to oxidize an organic compound in the water with anoxidizing agent.

Total nitrogen in effluent discharge(tons)
1,500

1,000

733

640
381

500

464

471

2003

2004

407

Off-gas monitoring
0

2000

2001

2002

2005 (FY)

Total phosphorus in effluent discharge(tons)
300

200

SOx emission

100(tons)
1,500

0

1,000

500

0

2000

384

2001

424

2002

417

62

52

65

73

2000

2001

2002

2003

2004

2005 (FY)

2003

280
2004

410

2005 (FY)NOx emission
1,500

872

766

724

767

792

2001

2002

2003

2004

906

500

0

47

Prevention of Water Pollutions
408(tons)

1,000

45

2000

2005 (FY)In order to prevent the pollution of rivers and sea, each plant
controls the waste water treatment equipments of the neutralizing
processing, the activated sludge processing, the cohesion
precipitation processing, and etc., and then each plant monitors
the drain water quality.
The emissions standards in concentration, total release andetc. are regulated by the law, the ordinance and/or the agreement,
although they are different among local self-governing bodies.
Each Plant has released the drain with properties under the
restriction value to the public waters by waste water treatment.
The COD value and total phosphorus in fiscal 2005 haveincreased compared with the previous year, because of theincrease of production in specific products.

Soot and dust emission

Soil and Groundwater Contamination
Investigation(tons)
150

100

66

52

62

56

59

2003

2004

42

50

0

2000

2001

2002

25
ENVIRONMENTAL PRESERVATION

2005 (FY)

MGC investigates the used situation of harmful substances in
production, and also of underground water around the plant.
We continue to carry out self-management to prevent soil andgroundwater from contamination and countermeasures for said
prevention on the basis of the Soil Contamination Countermeasures
Law and/or the ordinance of the local government.

Zero emission of waste
The zero emission in MGC has been defined as the decreasing the amount of final disposal to 0.3% or less of the amount ofwaste generation by the promotion of 3Rs. Under this definition, MGC is working on achievement of zero emission by 2010.
3Rs; Reduce, Reuse and Recycle

Transition of waste generation, recycling and transfer

Results of waste reduction(k tons)

The amount of waste generation (93 k tons reduction), theamount of waste to off-site (3 k tons reduction) and the final
disposal for landfill (5 tons reduction) in fiscal 2005 werereduced, compared with previous year.
The reduction of waste generation is caused by both the fuelconversion of co-generation facility from coal to natural gas
at the Yokkaichi plant and the shutdown of a production
plant at the Niigata plant.
In addition, the amount of final disposal for landfill was
reduced by the recycling of inorganic sludge and catalyst to
be disposed.

142.3

150

112.6

120

109.7

133.0

109.8

95.1
90

67.6

57.5

64.1
51.0

60

21.6

30
0

2000

20.2
2001

Generated amount

17.4
2002

45.6
14.3

14.1
2003

41.5

2004

Recycled amount

11.0
2005

(FY)

Transferred amount

Zero emission status of waste
The each workplace makes an effort to achieve the zero
emission of waste, through the classified collection for valuable
resource and the finding of dealers for recycling.
Three out of the 8 workplaces achieved the zero emission ofwaste* in 2005.
* The zero emission of waste: below 0.3%

• The Mizushima plant• The Yokkaichi plant• The Naniwa factory(0.12%)(0.22%)(0.13%)

Transition of final disposal
1,748 tons

Control of PCB(Polychlorinated biphenyl)

1,149 tons
527 tons 528 tons 521 tons 516 tons

2000

2001

2002

2003

2004

2005 (FY)The used equipments (transformer, capacitor and stabilizer,etc.) that contain PCB are under the strict close control by
us. MGC has already commissioned an appropriate
decomposition treatment of PCB to the Japan Environmental
Safety Corporation (JESCO) Co., Ltd.

Results of waste treatment in fiscal 2005
Recycled amount33.8 k tons
(25%)

Reduced amount
88.2 k tons
(66%)

Waste generated
amount133.0 k tons
(100%)

Onsite treatment

Recycled amount
7.8 k tons
(6%)

Reduced amount
2.7 k tons
(2%)

Outward transferred
amount11.0 k tons
Internal disposal
amount0 ton(0%)

Off-site treatment

Final disposal
amount0.5 k tons
(<1%)

26
ENVIRONMENTAL PRESERVATION

Environmental Communications
MGC thoroughly recognizes that we are the member of a society, and makes an effort to enhance the society's confidence tous and to live together with local community through the various communication activities concerning environment.

Disclosure of information
Environmental report publication
MGC has issued the environmental report to include all ourenvironmental and safety efforts since 2001 and has
issued its English version since 2003, and then MGC has
distributed them to the public for their understanding of ourenvironmental activities. these reports are also disclosed on
the following website.
http://www.mgc.co.jp/eng/csr/index.html
In addition, the Niigata and Kashima plant have issued anddistributed the environmental site report annually, andaftertime the other plants will also publish the site report.

Participation in the JRCC's community dialogue
meetings
MGC has been working on Responsible Care activities
concurrently with the Japan Responsible Care Council(JRCC) inception. The Mizushima Plant supported thecommunity dialogue meeting in Okayama area on
November 16th 2006, as one of administrative agents.
At the meeting with the participation from NGOs, community
residents, local government and businesses, the plant tour
and actively dialogue with community residents were
implemented and the meeting turned out significant.

Previous environmental reports(English version)

The 5th RC community dialogue meeting in Okayama

Web site

Participation in exhibition concerning environment
Site reports

MGC exhibited the methanol fuel cell, the dumping materials
and the environmental chemicals at the booth in the ECO
MAnufacture (ECOMA) 2006 which was held at the PACIFICCONVENTION PLAZA YOKOHAMA from November 29th toDecember 1st, 2006. MGC has been exhibiting our
eco-products and eco-technologies at this exhibition since
its inception in 2004. The number of visitors became twice
as much as the first exhibition and this indicates that people
take interest in environmental problems.
Disclosure on the internet

The Yamakita plant discloses the site information including
its environmental efforts on the web site of the Kanagawa
eco network* since 2004 (only in Japanese).
*The Kanagawa eco network:
http://www.pref.kanagawa.jp/osirase/iso/98/econet00.html
It is the network sponsored by Kanagawa prefecture on theinternet for the building of a sustainable society among businesses,organizations, academy, local government and NPO.
ECO MAnufacture 200627
DIALOG WITH COMMUNITY

Involvement in local communities
Participation in community event and Opening the site

Beautification movements
MGC takes the various beautification movements such as
regular cleaning of roads around site or a local area.

MGC promotes the communications with local community
through participating in community festival, and opening ourgyms and ground etc. to the community resident.

Cleaning the road aroundthe Hiratsuka Laboratory

Cleaning the areaby the Tokyo Techno-Center
employee

The Mizushima plant including retired employees participatedin the cleaning campaign for refreshing Mizushima Port, which
was held by District Transport Bureau, Maritime Safety Agency,
Okayama Prefecture, Kurashiki-City and businesses as theevent for Marine Day.
Traffic safety campaign
Over the past 20 years, the Yokkaichi plant has been leading
citizen to the traffic safety once a month in cooperation withneighboring 3 companies at the school routes, where there isheavy traffic.
At the same time, the Kashima plant has been checking thecompliance with traffic rules twice a year such as wearing aseat belt as part of activity by the traffic safety organizationsin the industrial complex.
In addition, the Niigata Research Laboratory participated in
the introduction activity for traffic safety as the event for traffic
safety week twice a year.

Summer festival in resident's
association (The Yamakita plant)

Mizushima port festival(The Mizushima plant)

HANAMI (Viewing party of cherry
blossoms at the yard of Niigata plant)

Workplace tour
Each workplace has been implementing the plant or laboratory
tour for students.
The Niigata plant has been welcoming the plant tour over the
past 20 years, and the Yamakita plant has been supporting theon-site one day training for local junior high school students
since 2001.
In addition, the Hiratsuka Research Laboratory has been
supporting the technical expert development class and theon-site training availing during spring break and summer vacation
for school.

Laboratory tour (The Hiratsuka laboratory)

Contribution to society
Victim assistance

Patrol for traffic safety at the Kashima plant

MGC donated for afflicted people by the central Java earthquakein Indonesia through the Japan Federation of Economic
Organizations.

28
DIALOG WITH COMMUNITY

Environmental and Safety Activities
in Affiliates
MGC Group's Fundamental Policies
on Environment and Safety

Environmental and safety inspection
for foreign affiliate[Environmental and safety targets]
Zero accident, Zero occupational injury and Environmental
preservation[Fundamental policies]• Ensuring of health and safety in our operations• Securing security management of facilities and increasing
self-maintenance technologies and skills• Reducing environmental loads in business activities• Ensuring safety in use, handling and disposal of products• Developing environment-friendly and safety-conscious
products and technologies• Ensuring environmental preservation and safety in thelogistics of obtaining raw materials and storing and delivering
our products• Enhancing of society's confidence to us

All foreign affiliates do not participate in the conference,
however, MGC also inspects foreign affiliates to support theirenvironmental and safety activity in the similar way to domestic affiliates.
MGC inspected both MGC Pure Chemicals America, Inc.
and MGC Advanced Polymer, Inc in the North America in
2006.

MGC group's Fundamental Policies
on Environment and Safety
MGC group has been working on various activities throughthe environmental and safety information exchange meeting
which is now consisted of MGC and chemicals working 12
affiliates and was lounched in 2003.
This meeting name was changed to the MGC group's environmental and safety conference in 2006, because the informationexchange was recognized to come to stay and the activity
based on PDCA cycle (planning - doing - auditing - information exchange) has been making progress and it has been beyond the information exchange, in addition, the conference developed
the rule of conference.
The main activities in the conference are as follows.
(1) Meeting for environment and safety of MGC group
The meeting is held twice a year for the reporting orreviewing the annual target, result of activities, status of
accident and occupational injury and etc. of MGC and each affiliate.
(2) Environmental and safety
inspection
Several affiliates are inspected
for environment and safety
every year by Director in
charge of environment andsafety in MGC.
Auditing for environment and safety
MGC inspected the Toyo
(JSP)
Kagaku Co., Ltd, the Fudow
Co., Ltd and JSP Corporationin 2006.
(3) Liaison meeting for coordinator
The executive office in conference visits an affiliate once
every year and exchanges
Liaison meeting for coordinator(Toyo Kagaku)
the environmental and safety
information.

29
ENVIRONMENT AND SAFETY IN AFFLIATE

Environmental loads by MGC group
The following tables show the environmental loads by MGC
and 12 affiliates in fiscal 2004 and 2005.
The number of production sites in MGC group
Fiscal 2004 (MGC and 11 affiliates)

Fiscal 2005 (MGC and 12 affiliates)

MGC

8 production sites

MGC

8 production sites

Affiliates

27 production sites

Affiliates

30 production sites

INPUT
Energy consumption(as crud oil)
Water consumption
Drinking water
GroundwaterIndustrial waterRiver water
Othersyear-toFY 2005 year basis

Unit

FY 2004

103 kl

630

657

1.04

3

44,071
1,276
1,653
25,406
14,625
1,111

45,103
1,342
1,745
25,86014,717
1,439

1.02
1.05
1.06
1.02
1.01
1.30

km
km3
km3
km3
km3
km3

year-toUnit FY 2004 FY 2005 year basis
OUTPUT
Atmospheric emissions
GHG emission
1,858
1.06
k tons1,761(as CO2)
470
1.38
tons
341
SOx emission
1,081
1.10
tons
979
NOx emission
59
0.70
tons
84
Soot and dust emissions
Emission of PRTR
tons
1,351.0 1,397.4 1.03
substances
Release to water area
Total drainage volume
37,6820.99
km3
37,908COD emission
318
1.14
279
tons
Total nitrogen emission
442
0.85
519
tons
Total phosphorus emission tons
75
1.12
67
Release of PRTR substances tons
36.8 1.01
36.6
Release to soil
0
0
0
tons
Waste treatment
Generation of waste
0.99
tons 174,880 173,134
Transfer to off-site
39,6531.22
32,486
tons
Final disposal waste
1,890
1.03
1,828
tons
Transfer of PRTR substances tons
841.4 1.22
687.1

II A.G. International Chemical
Company Inc. (AGIC)
AGIC has the 120 k tons/year production capacity facility
in MGC Mizushima plant, and promotes the RC activity
based on the basic policy of company and site.
We concentrate our efforts on the following activities;
1) to ensure RC philosophy, 2) to improve sensibility forrisk, 3) preventive maintenance 4) stable operating 5)
reduction of waste 6) improvement of environmental Representative Director,
President
load and 7) improvement of logistic activity.

Yoshio Kawazoe

Manufacture and sale of purified isophthalic acidTokyo Sakurada Bldg., 1-3, Nishishinbashi 1-chome, Minato-ku,
Tokyo 105-0003, Japan
Phone:+81-3-3503-4811 http://www.agic.co.jp/e_agic/index.html

II Eiwa Chemical Industrial Co., Ltd
I recognize that environment and safety is a keyword
to sustainable production of blowing agents to rubber
or plastic.
We take notice of ensuring the safety and theenvironment and make efforts to improve them throughsetting the specific targets by 5S activity andenvironmental management system which was lounched
Representative Director,
from the previous fiscal year.
President

Toshio Matsuzaki

Manufacture and sale of blowing agents
Daido Seimei co. Kyoto Bldg., 595-3, Sanjio-sagaru Karasuma-dori,
Manjuya-cho, Nakagyo-ku, Kyoto-City, Kyoto 604-8161, Japan
Phone:+81-75-256-5131 http://www.eiwa-chem.co.jp/

II MGC Filsheet Co., Ltd.
The Tokorozawa factory is located at Musashino in thebosom of nature. And the Osaka factory is located near
the Kanzaki River, branch of the Yodo River.
Since the institution's formation at each place, we havebeen making efforts to ensure environment and to live
together with local community.
In our beautiful environment, I hope we will eco-friendly
expand our business by the safety first together with Representative Director,
President
local community.

Kazuo Noguchi

Manufacture of PC sheet and film
4-2242, Mikajima, Tokorozawa-City, Saitama 359-1164, Japan
Phone:+81-4-2948-2151 http://www.mgcfs.jp/top.html

II Electrotechno Co., Ltd
We, Electrotechno Co., Ltd, have achieved some
progress in 5S activities over the 10 years.
Because I think that 5S activity is the basis not only forensuring of environment and safety but also for
production activity, we have intention to promote ourbusiness by supplying our superior advanced
technologies and services through the further
Representative Director,
improvement of 5S activity.
President

Toshio Kawasaki

Manufacture of copper clad laminates forprinted circuit board
9-41, Aza-Sugiyama Oaza-Yone, Nishigo-mura, Nishishirakawa-gun,
Fukushima 961-8031, Japan
Phone:+81-248-25-5000

30
ENVIRONMENT AND SAFETY IN AFFLIATE

Environmental and Safety Activities
in Affiliate (2)II JSP Corporation
I recognize that any foamed plastics contribute to theenvironment preservation in aspect of energy andresource saving through the employment on various
fields because of their superior thermal insulation andcushioning properties.
We make efforts to reduce the environmental loads
during products supply process and to ensure thesafety of interested persons as our most important issue. Representative Director,
President

Rokurou Inoue

Manufacture and sale of foamed plastics
Shin-Nisseki Bldg., 3-4-2, Marunouchi, Chiyoda-ku,
Tokyo 100-0005, Japan
Phone: +81-3-6212-6300 http://www.co-jsp.co.jp/jspi/jsp/index.html

II JAPAN FINECHEM Co., Inc.
We have established the system to prevent similar
accidents from happening in future and worked on
various activities because the Sakaide and Niigata
plant had accidents in the previous year, however, there
are some troubles at there even now.
I have the intention that our company, executives andemployees in one body, makes efforts to achieve theelimination of accident and the ensuring safety and Representative Director,
stable operation as our most important issue by President
Norio Hakuta
modification of system from October, 2006.

Manufacture and sale of chemical products andelectronic parts
Iino Bldg.,2-1-1, Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-0011, Japan
Phone: +81-3-3501-5656 http://www.jfine.co.jp/eng/index.html

II Toyo Kagaku Co.,Ltd
Toyo Kagaku was certificated by ISO 14001 in 2003
and then has made efforts on environmental activity
which is recycling of classified waste.
As the result, the monthly average of waste in November
2006 decreased to one-quarter of the monthly averagein the fiscal 2003. Over the 5 years, we have not had
occupational injury because of our focusing on safety
activity. In addition, we make efforts to consider Representative Director,
anti-earthquake measures, since our area is supposed President
Gorou Shimaoka
to have the influence of the Tokai earthquake.

Manufacture of injection molding processed products
51-497, Aza-Dodo, Oaza-Morowa, Togo-cho, Aichi-gun,
Aichi 470-0151, Japan
Phone: +81-561-39-0531 http://www.toyo-kagaku.co.jp/

II Japan Circuit Industrial Co., Ltd.
Japan Circuit Industrial was given the certification of
the environmental management system ISO 14001 in
June 2006.
We take this opportunity to establish the Environment
and Safety Division by selected staff, and then we makeefforts to reduce the environmental loads by using thissystem and to ensure the safety as our most important
issue for aiming the zero accident and zero Representative Director,
President
occupational injury.

Kouzou Yamane

31
ENVIRONMENT AND SAFETY IN AFFRIATE

Manufacture and sale of printed circuit boads
2-1236, Kamiike-cho, Toyota-City, Aichi 471-0804, Japan
Phone: +81-565-88-3718 http://www.jci-jp.com/

II Japan Pionics Co., Ltd
Japan Pionics has decided the Safety first across theorganization and the global environmental preservationand prevention of pollution as our policies onenvironment and safety, which serves as fundamental
elements of environmental and safety activities, andhas set 18 integral targets in order to put into practice
the policies referred to above.
In addition, we have been working on the voluntary Representative Director,
activities based on proposed Responsible Care President
Ryouichi Takahashi
implementation items by JRCC.

Manufacture and sale of gas purifiers
and surface heater
Tokyo Sakurada Bldg., 1-1-3, Nishi-Shinbashi, Minato-ku,
Tokyo 105-0003, Japan
Phone: +81-3-3506-8801 http://www.japan-pionics.co.jp/en/index.html

II Japan U-PiCA Co., Ltd
Japan U-PiCA has the philosophy of contribution to
fulfill the wealthy society and welfare, and makes efforts
to ensure social responsibility such as global
environmental preservation, occupational injury
prevention and etc.
For this, we make efforts to reduce the waste by reusing
or recycling the resources, to manage the chemicals
and to prevent the occupational injury, and finally, we Representative Director,
President
aim that our products are those friendly to the earth.

Tomihiro Ogino

Manufacture and sale of unsaturated polyester
Iino Bldg.,2-1-1, Uchisaiwai-cho, Chiyoda-ku,
Tokyo 100-0011, Japan
Phone: +81-3-3503-3981 http://www.u-pica.co.jp

II Fudow Co., Ltd
Fudow is doing the molding and processing ofengineering plastics including thermosetting molding
materials at the three domestic factories.
We have decided the improvement of occupationalsafety and health, the reduction of environmental loads
as our fundamental policies, and then, underimprovement of rules, we are promoting 5S and otheractivities for aiming zero accident and zero occupational Representative Director,
injury. Our environmental and safety management rule President
Katsuaki Sato
was instituted in April, 2006.

Manufacture and sale of resins andmolded components
No.7th Daigo Bldg., 7-20-5, Nishi-Kamata, Ota-ku, Tokyo 144-0051, Japan
Phone: +81-3-3737-0611 http://www.fudow.co.jp/e-index.html

II Mizushima Aroma Co., Ltd.
I recognize that safety is cornerstone of production
activity.
Fortunately, Mizushima Aroma has been continuing zeroaccident and zero occupational injury over 15 years,
though, this fact does not any guarantee our future.
Our issue is to inherit the security of safety as our culture
toward in the future.
In addition, we make efforts to reduce environmental Representative Director,
loads to fulfill corporate social responsibility by including President
Kunisuke Usuda
it in the plant management plan.

Manufacture and sale of purified terephthalic acid
2-3-1, Mizushima-nakadori, Kurashiki-City, Okayama 712-8072, Japan
Phone: +81-86-446-4570

32
ENVIRONMENT AND SAFETY IN AFFLIATE

Responsible Care Activities at Each Plant
Natural Gas Chemicals Company

The Niigata plant

Address: 3500, Matsuhama-cho, Niigata-City,
Niigata 950-3121, Japan

Comments by plant manager
The Niigata plant is located in beautiful
and water-rich environment as represented
by the Japan Sea on the north side and theAgano River on the west side. In thisenvironment, we have determined theenvironmental preservation and theensuring the safety as the base for ourbusiness, and have set the target of
reduction of environmental loads, the zeroaccident and zero occupational injury andsafety-security-stability operation.
We are together working on the sounddevelopment of us for aiming to promisingplant and gaining trust of community bysecuring of compliance.

Phone: +81-25-258-3474

CO2 emissions (k tons)
NOx emissions (tons)

383• Ammonia

SOx emissions (tons)

0• Formalin

COD emissions (tons)

33• Methyl methacrylate

Transfer to off-site of waste (tons) 2,631• Methaxylylene diamin

Final disposal waste (tons)• Ubidecarenone(Co-enzyme Q10)

280

Substances listed by PRTR law

Plant manager

Yoshihiro Yamane

Main products

565

Emission (tons) Transfer (tons)

Ethylene oxide

6.3

0Methyl methacrylate

1.1

26.0

Vanadium pentoxide

0

12.0

Aromatic Chemicals Company

The Mizushima plant

Address: 3-10, Mizushima Kaigandori, Kurashiki-City,
Okayama 712-8525, Japan

Comments by plant manager
We have been promoting to reduce theenvironmental loads by the ISO 14001
introduced in 2000 for promoting systemof RC activity.
In the fiscal 2006, we held the RC
community dialog meeting in November,as the result of this meeting, we had goodinteractive conversation with community
representatives.
We have the intension to work on
co-existence and co-prosperity with
community as safety and security plant in
the future.

CO2 emissions (k tons)

Phone: +81-86-446-3822

NOx emissions (tons)

472• Xylenes

SOx emissions (tons)

383• Aromatic aldehydes

COD emissions (tons)

168• Trimellitic anhydride

2,230• Pyromelltic anhydride

Transfer to off-site of waste (tons)
Final disposal waste (tons)

40

Substances listed by PRTR law

Plant manager

Shigenobu Ono

Main products

653• Polyols
Emission (tons) Transfer (tons)

Xylenes

78.0

33.0

Hydrogen fluoride and its water soluble salt

23.8

0.9

Ethylbenzene

6.3

0Specialty Chemicals Company

The Kashima plant

Address: 35, Higashi Wada, Kamisu-City,
Ibaraki 314-0102, Japan

Comments by plant manager

CO2 emissions (k tons)

The Kashima plant has been working on
the reduction of the environmental loads.
For example, we make efforts to reducethe volatile organic compounds emission
to atmosphere and to recycle the heatinsulator and glass debris.
For understanding of local residence onthese activities, we publish and distributethe environmental and safety site report.

70• Polycarbonate

COD emissions (tons)

12

Transfer to off-site of waste (tons)

617

Final disposal waste (tons)

13

Dichloromethane

33
RESPONSIBLE CARE ACTIVITIES AT EACH PLANT

Main products

SOx emissions (tons)

Substances listed by PRTR law

Makoto Mizutani

185• Hydrogen peroxide

NOx emissions (tons)

Corporate officer
Plant manager

Phone: +81-299-96-3121

Emission (tons) Transfer (tons)
210.0

1.4

Specialty Chemicals Company

The Yokkaichi plant

Address: 2-4-16, Hinagahigashi, Yokkaichi-City,
Mie 510-0886, Japan

Comments by plant manager
The Yokkaichi plant has already achieves
the 6% reduction of GHG emission incomparison with 1990, which is specified
by the Kyoto Protocol, and is almost
certain to achieve the numerical target onenergy consumption rate and GHG
emission index in comparison with 1990.
From now on, we will work on the businessactivity, by making efforts to reduce
environmental load, which will result in
the affable attitude to earth and also will
endear us to community residence.

Phone: +81-593-45-8800

129

Main productsNOx emissions (tons)30• Hydrogen peroxide

SOx emissions (tons)

21• Chemicals for electronics
industries

CO2 emissions (k tons)

COD emissions (tons)
Transfer to off-site of waste (tons)

40
3,694

Final disposal waste (tons)

8• Polyacetal• Monomer for plastic lens
• Sodium percarbonate

Substances listed by PRTR law

Corporate officer
Plant manager

Emission (tons) Transfer (tons)

Ethylene oxide

1.70Methyl methacrylate

2.1

8.6

Yuh Miyauchi

Specialty Chemicals Company

The Yamakita plant

Address: 950, Kishi, Yamakita-machi, Ashigarakami-gun,
Kanagawa 258-0112, Japan

Comments by plant manager

33

Main productsNOx emissions (tons)

9

SOx emissions (tons)

5• Ultra pure hydrogen
peroxide

COD emissions (tons)

14

Transfer to off-site of waste (tons)

219

Final disposal waste (tons)

26

CO2 emissions (k tons)

Since the establishment in 1933, theYamakita plant has been managing the
production activity under the favorable
condition the we can reasonably andabundantly use water of the Sakawa Riverflowing at the side of plant.
Even now after 70 years-old, we recognizethat it is most important mission for ourplant to use this water with good care,which is used for agricultural and fishingindustry, through cooperation with
community residence.

Phone: +81-465-75-1111

Substances listed by PRTR law
Ethylene oxide• Persulfates• Chemical polishing agents• Acetyl hydroperoxide

Emission (tons) Transfer (tons)
0

0.6

Plant manager

Takayuki Watanabe

Location of other workplaces
Natural Gas Chemicals Company

The Niigata research laboratory

Address: 182, Tayuhama Shinwari, Niigata-City, Niigata 950-3112

Phone: +81-25-259-8211

Aromatic Chemicals Company

The Hiratsuka research laboratory Address: 6-2, Higashiyawata 5-chome, Hiratsuka-City, Kanagawa 254-0016

Phone: +81-463-21-8600

Specialty Chemicals Company

The Naniwa factory

Address: 3-27, Funamachi 1-chome, Taisho-ku, Osaka -City, Osaka 551-0022 Phone: +81-6-6551-3371

The Saga factory

Address: 681-45, Kamikumakawa, Fuji-cho, Saga-City, Saga 840-0512

Phone: +81-952-64-2400

The Tokyo research laboratory

Address: 1-1, Niijuku 6-chome, Katsushika-ku, Tokyo 125-0051

Phone: +81-3-5699-9711

Address: 1-1, Niijuku 6-chome, Katsushika-ku, Tokyo 125-8601

Phone: +81-3-3627-9411

Information and Advanced Materials Company

The Tokyo techno-center

34
RESPONSIBLE CARE ACTIVITIES AT EACH PLANT