FY2015 CSR Website CSR > Site Reports > Worksites > Mizushima Plant

Kurashiki City is not only a tourist spot famous for its traditional white-walled storehouses, it
is 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
from Mt. 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, opticalfilm, 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-Up on January 16, 2013. The program's theme was the “crisis of the complex,” and Zeon received high acclaim
for its efforts to create a digital record of the experience and knowledge of veteran technicians, and integrate this into theproduction 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 our "3 Innovations."
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. 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-1-

FY2015 CSR Website CSR > Site Reports > Worksites > Mizushima Plant

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 2014, we were unable to achieve
the target at 6.5 tons. This was due to the impact of gasket disposals generated as a result of a periodic inspection. We will
reduce the amount by implementing efforts including reducing waste, 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

3. Reducing air and water pollution
We work to comply with standards for soot, smoke and wastewater 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 the Seto Island Sea, a semi-enclosed body of water. Due to the fact that in anemergency situation this could impact a large number of people's lives, we are constantly conscious of wastewater and managelevels on a daily basis. We know that complying with environmental standards is only the bare minimum level of conduct a-2-FY2015 CSR Website CSR > Site Reports > Worksites > Mizushima Plant

corporation should exhibit, and will thus continue to strive to implement environmental protection.
CO2 emissions

SOx and NOx emissions

Overall wastewater, COD, total nitrogen (TN) and total phosphorus (TP) discharge-3-FY2015 CSR Website CSR > Site Reports > Worksites > Mizushima Plant

4. Saving resources and energy
While energy consumption increased accompanying an expansion of production volume, we are reducing the intensity index.
Continuing on from the previous year, in fiscal 2014 also we stabilized our processes, we conducted a diagnosis of steam traps
throughout the plant in order to plan improvements for defective areas. In addition, our new and efficient combustion and heatrecovery boilers began operating from August 2015, and are expected to make ongoing incremental resource and energy
conservations.
Total amount of energy and Unit energy consumption index

5. Environmental Data
Mizushima Plant
Butadiene consumption (tons)
Toxic
substances
Butadiene emissions (tons)
Substances
Consumption (tons)
subject toAmount emitted (tons)
PRTR law
Amount generated (before volume reduction)(tons)
Industrial
Amount generated (after volume reduction)
waste(tons)
Amount sent to landfill (tons)
CO2 emissions (tons)
SOx emissions (tons)
Atmosphericemissions
NOx emissions (tons)
Soot emissions (tons)Water resources (Industrial water + Ground water +3Waterworks) consumption (1,000m )3
Total waste water discharge (1,000m )COD emissions (tons)
Waste water
Total phosphorus discharge (tons)
Total nitrogen discharge (tons)
Total consumption (crude oil equivalent, kL)
EnergyUnit consumption index (1990 = 100)
Production of PDR equivalent (tons)-4-

FY2010144,8200.0
405,671

FY2011
136,3850.0442,900

FY2012130,1540.0
431,800

FY2013
110,704
0.0
393,777

FY2014
141,100
0.0
478,178

4.4

4.4

4.6

5.3

6.060,045

60,40056,27059,25370,584

5,374

5,935

4,830

5,999

6,956

6.8
217,000
4.6
77
0.0

3.7
259,651
3.8
80
0.0

5.4
197,855
2.7
66
0.0

1.3
182,800
1.2
47
0.0

6.5
211,420
1.4
54
0.0

2,378

2,481

2,351

2,665

2,713

2,382
13
0.6
17
77,852
44％760,900

2,640
15
0.6
16
91,566
56％
731,500

2,429
13
0.7
15
73,14846％
705,400

2,674
17
0.6
17
67,85041％714,800

2,602
20
0.5
12
77,51740%
840,400

FY2015 CSR Website CSR > Site Reports > Worksites > Mizushima Plant

In line with Zeon's Mid-Term Management Plan, SZ20, 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.
VOICEIn Preparation for 2020
*1

In fiscal 2014 we continued efforts aimed at achieving 100% yield rates . First, in an effort
to stabilize product quality, we created CAPD action sheets to visualize the management of
this process. 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.” By
positioning this as a key theme, our process capability indexes*2

improved. However, weare continuing 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 thatoverseas plants can manufacture products with the same level of quality. This is ourTomoyuki Kose
Corporate Officer andMizushima Plant Manager*3

responsibility as a parent plant . In fiscal 2014, we worked to improve proprietary
technologies using project structuring and standardize our management by stationing employees from Head Office andlaboratories at plants. As a result, while we achieved significant improvements in process stabilization some issues remain andwe will move forward with these efforts in order to resolve these remaining issues in fiscal 2015
*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-organizedrice-cake making-5-FY2015 CSR Website CSR > Site Reports > Worksites > Mizushima Plant

2. Comprehensive emergency drill
On November 21, we conducted comprehensive emergency-response training assuming apetrochemical complex disaster caused by a large-scale earthquake at Mizushima Plant.
In assumption of a dangerous materials fire escaping from our tanks due to an earthquake
caused by the Nankai Trough epicenter, we verified information from our disastercountermeasures office set up by our plant organization and the collaboration and functionof the relative organizations, such as the fire and ambulance services. This training exercise
was staged by the Disaster Prevention Office at Petrochemical Complex in Okayama
prefecture, and was covered in newspapers and on television.

Comprehensive emergency
response drill
3. Local volunteering
In an effort to support and cheer up local residents, the Mizushima Plant commenced
voluntary neighborhood cleanups in 2006. In fiscal 2014, 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 areas
together with local residents-6-