FY2014 CSR Website CSR > Site Reports > Worksites > Mizushima Plant

Kurashiki City is not only a tourist spot famous for its traditional white-walled storehouses, itis also one of the top industrial cities in western Japan, shipping products worth a total of 4
trillion yen. Most of these products are manufactured at the Mizushima industrial complex,
an area packed with corporations that produce a wide variety of products ranging from ironand steel, ships, electricity, cars, food, and chemical products. The view of the complex fromMt. Washu is a sight to behold.
ZEON Corporation's Mizushima Plant is situated in one corner of this complex. The plant isthe largest diversified user of C5 fractions* in the world, utilizing the characteristics of theAerial view of the Mizushima
Plant

various compounds extracted from raw materials to change them into adhesive tape,diapers, tires, paint, fragrances, optical film, and lenses. The plant supports the lifestyles of consumers by providing familiar
items crucial for society and to everyday life.
The measures related to stability and safety implemented during production at this plant were introduced in the NHK
program Today's Close-Upon January 16, 2013. The program's theme was the “crisis of the complex,” and ZEON received highacclaim for its efforts to create a digital record of the experience and knowledge of veteran technicians, and integrate this into
the production system to ensure a level of safety equal to that maintained by such veterans. However, ZEON also realizes that
there are still plenty of issues and room for improvement, and will continue to implement further measures in the future.
Our mission is to be an environmentally friendly plant that is appreciated by the local community and meets the diverse needs ofcustomers by safely producing consistently high-quality products.
* C5 fractions
Hydrocarbon molecules containing five carbon atoms. They are the byproduct of thermal cracking, or breaking down, of naphtha, and also include ingredients for raw materials of synthetic
rubber and resin.

The slogan of the Mizushima Plant is "Visualize operations based on ABC, continually improve, and standardize these efforts."
The plant strives to firmly root ABC culture (atarimae, bakashoujiki, and chanto, or in English: to earnestly and properly perform
all of the routine but necessary tasks) and to implement production innovation.
We take these steps because we believe that we can uphold safety as our highest priority and continuously provide society withproducts of consistent quality only when every employee takes great care to abide by the law and follow ZEON's operationalrules and procedures.
We are working to ensure that the Mizushima Plant meets the expectations of the local community and society at large in its
pursuit of safety and stability, achieved by firmly rooting ABC culture and through production innovation.

-1-FY2014 CSR Website CSR > Site Reports > Worksites > Mizushima Plant

1. Reducing toxic chemical emissions
Our plant has been butadiene-emission-free since fiscal 2002, when we adopted a closed recovery and processing system. By*1*2

measuring and reducing our VOC emissions through PRTR activities, we will continue to help conserve the environment.
*1 Volatile Organic Compounds
Organic compounds that change easily to a gas phase and enter the air.
*2 Pollutant Release and Transfer Register
A database of hazardous chemical substances released into the environment and transferred off-site in waste. It provides the public with important information such as where and how muchpollutants are being released and transferred.

Substances subject to PRTR law

2. Reducing industrial waste
Starting in fiscal 2011, we set a target of 5 tons or less for waste sent to the landfill. In fiscal 2013, we achieved the target at 1.3tons. Going forward we will reduce the amount by implementing efforts including reducing waste by shifting towards selling it asa valuable resource, reusing beverage bottles, and recycling plastics as solid fuels (the “three Rs”), which will lead to reducing
final waste amounts.
Amount of Waste to Landfill-2-FY2014 CSR Website CSR > Site Reports > Worksites > Mizushima Plant

3. Reducing air and water pollution
We work to comply with standards for soot, smoke and waste-water output through daily monitoring and regular third-party
assessments. We also implement checks on whether we are having a detrimental impact on the local area by monitoring
hazardous air pollutants and noise levels at the boundaries of the plant. Wastewater from the Mizushima Plant flows into theSeto Island Sea, a semi-enclosed body of water. Due to the fact that in an emergency situation this could impact a large numberof people's lives, we are constantly conscious of waste-water and manage levels on a daily basis. We know that complying withenvironmental standards is only the bare minimum level of conduct a corporation should exhibit, and will thus continue to strive
to implement environmental protection.
CO2 emissions

SOx and NOx emissions-3-FY2014 CSR Website CSR > Site Reports > Worksites > Mizushima PlantOverall wastewater, COD, total nitrogen (TN) and total phosphorus (TP) discharge

4. Saving resources and energy
In fiscal 2013, we conducted a diagnosis of steam traps throughout the plant in order to plan improvements for defective areas.
We are working to achieve energy and resource conservation targets from a variety of angles such as implementing efforts that
include improving operation rates by reducing steam usage and stabilizing bottleneck processes.
Total amount of energy and Unit energy consumption index-4-FY2014 CSR Website CSR > Site Reports > Worksites > Mizushima Plant

5. Environmental Data
Mizushima Plant

Toxic
substances

Substances
subject to
PRTR law

Industrial
waste

FY2009FY2010FY2011FY2012FY2013

139,340

144,820

136,385

130,154

110,704

0.0

0.0

0.0

0.0

0.0

293,497405,671442,900

431,800

393,777

1.0

4.4

4.4

4.6

5.3

Amount generated (before volume reduction)(tons)

45,09360,04560,40056,27059,253

Amount generated (after volume reduction)(tons)

5,006

5,374

5,935

4,830

5,999

6.6

6.8

3.7

5.4

1.3

CO2 emissions (tons)

219,343

217,000

259,651

197,855

182,800

SOx emissions (tons)

4.3

4.6

3.8

2.7

1.2

NOx emissions (tons)

75

77

80

66

47

Soot emissions (tons)

0.0

0.0

0.0

0.0

0.0

2,189

2,378

2,481

2,351

2,665

2,150

2,382

2,640

2,429

2,674

COD emissions (tons)

1113

15

13

17

Total phosphorus discharge (tons)

0.4

0.6

0.6

0.7

0.6

Total nitrogen discharge (tons)

12

17

16

15

17

77,93077,852

91,566

73,14867,850

51%

44%

56%

46%

41%

648,665

760,900

731,500

705,400

714,800

Vinyl chloride monomer consumption (tons)
Vinyl chloride monomer emissions (tons)
Consumption (tons)
Amount emitted (tons)

Amount sent to landfill (tons)

Atmosphericemissions

Water resources (Industrial water + Ground water +3Waterworks) consumption (1,000m )3

Total waste water discharge (1,000m )Waste water

Total consumption (crude oil equivalent, kL)
EnergyUnit consumption index (1990 = 100)
Production of PDR equivalent (tons)-5-

FY2014 CSR Website CSR > Site Reports > Worksites > Mizushima Plant

In line with ZEON's Mid-Term Management Plan, SZ-20, including the Enterprise Blueprint for 2020: “ZEON creates the future
today through the power of chemistry,” the Mizushima Plant aims to realize global production technologies that, throughappropriate management of what we call the 4Ms—Material, Machine, Method, and Man—enable anyone anywhere in theworld to produce great products with consistent quality. We hope to realize the Enterprise Blueprint by using our quality
management systems to improve the technologies we develop.
VOICE In Preparation for 2020
*1In fiscal 2013 we continued efforts aimed at achieving 100% yield rates . First, in an effort tostabilize product quality, we created CAPD action sheets to visualize the management of thisprocess. CAPD is our version of the PDCA cycle that starts with “checking” to see thatexisting systems have no problems or inadequacies, and then taking “action.” We endeavor
to ensure that day-to-day actions are implemented on an ongoing basis, however, by*2

positioning this as a key theme, our process capability indexes improved. However, we arecontinuing forward with these efforts, as we have yet to achieve 100% yield rates.
Another task we need to accomplish by fiscal 2020 is standardizing technologies so that

Toru Nishijima, Corporate
Officer and Mizushima Plant
Manager(as of April 2014)

overseas plants can manufacture products with the same level of quality. This is our*3

responsibility as a parent plant . In fiscal 2013, we worked to improve proprietary technologies using project structuring bystationing employees from Head Office and laboratories at plants. As a result, we achieved significant improvements in process
stabilization and process capability indexes. We will move forward with these efforts in order to standardize these technologies
and resolve remaining issues in fiscal 2014.
*1 Yield rate
The percentage of products rolling off the production line that pass quality inspections. A 100% yield rate means that no defective products were produced.
*2 Process capability index
An indicator that quantitatively assesses the ability of a given process to meet certain quality standards.
*3 Parent plant
A plant that applies new technologies developed in Japan before they are adopted at overseas subsidiary plants.

1. Engaging the Local Community
In an effort to proactively interact with the region, we participated in community-organized
events, such as the summer festival and rice-cake making.

Participated incommunity-organized rice-cakemaking-6-FY2014 CSR Website CSR > Site Reports > Worksites > Mizushima Plant

2. Comprehensive emergency drill
In December, we conducted comprehensive emergency-response training. Local firedepartments and the Mizushima Industrial Complex's joint disaster prevention team joined
our in-house firefighting team in training, with each team training to improve their responseskills.
Although it wasn’t prepared in time for the current training, we have deployed an on-sitemobile command center in order to quickly develop and to store all equipment andmaterials dispersed for the purpose of prompt on-site center construction.

Comprehensive emergency
response drill

On-site HQ Command Vehicle

3. Local volunteering
In an effort to support and cheer up local residents, the Mizushima Plant commenced
voluntary neighborhood cleanups in 2006. In fiscal 2013, we continued activities to clean up
areas together with local residents. Going forward we will continue in our endeavors, while
remembering the novice spirit.

Volunteering to cleanup areastogether with local residents-7-