Tokuyama Corporation

Environmental Report
A Statement of Our Commitment
to the Environment and Safety and Health●For all inquiries, please do not hesitate to contact us at:

Responsible Care
Responsible Care & Eco-Management Dept.
Shibuya Konno Bldg., 3-1, Shibuya 3-chome
Shibuya-ku, Tokyo 150-8383, Japan
TEL : +81-3-3499-8478
FAX : +81-3-3499-8961
URL : http//www.tokuyama.co.jp
e-mail : rc-toukatsu@tokuyama.co.jp
Responsible Care (RC) is a self-management activity to
implement and improve measures concerning theenvironment and safety and health.
It is an activity of a corporation producing or handlingchemical substances that pledges in its management
policy to protect the environment and to ensure safety
and health throughout the entire chemical substance life
cycle, from development, manufacturing, distribution, use
and final consumption to disposal on the basis of theprinciple of self-determination and self-responsibility.

This Environmental Reports uses paper made100% from old paper.

The printing ink used for printing
this Environmental Report uses
soybean oil in and endeavor to reduce an environmental impact.

GP.03101000

Editorial Notes

Message from the President

This Responsible Care Report 2003 hasbeen prepared for the purpose of making
Tokuyama Corporation's commitment to theenvironment and to safety and health andits efforts on these issues in fiscal 2002
widely known to all concerned, its shareholders, investors and its customers as wellas its employees and their families, theneighboring communities and all citizens. In
the preparation of this report, reference has
been made for the Guidelines for Environmental Reports (2000 Edition) of the Ministry of the Environment.

We desire to earn the trust and loyalty of customers andsociety at large by dedicating ourselves to the shaping ofa sustainable society.

■Scope of Report
Period covered by the Report: From April 2002 through toMarch 2003
Company featured in the Report: Tokuyama Corporation
Area covered by the Report: Japan as a whole

Contents

Message from the President
Our Commitment to Environmental Issues
Evaluation of 2002 Activities
Environmental Accounting for 2002
Support System for Responsible Care
(RC) and Inspection Audits
Community-wide Recycling
Historical Overview of the Company
Establishment : February 16, 1918
Headquarters : Shibuya Konno Bldg., 3-1
Shibuya 3-chome, Shibuya-ku
Tokyo 150-8383, Japan
Production and Research Locations :Tokuyama Factory
Kashima Factory
Tsukuba Research Laboratory
Capital (as of March 31, 2003) :JPY 19,273 million
Sales (FY2002): JPY 151,471 million
Employees (as of March 31, 2003) : 2,179
Areas of Business/Main Products
Soda ash, inorganic and organic chemicals, cement,
civil engineering and construction materials, synthetic
resins, ion exchange membranes and other highly
polymerized compounds, fine ceramics, pharmaceutical and agrochemical intermediates, electronic components and materials.

Environmentally-oriented Products
and Technologies
Towards Reducing Environmental Impact
Our Commitment to Safety
Total Safety Management
for Chemical Products

The economic system of the 20th century, marked by mass-production and mass-consumption,
has brought within reach of mankind an unprecedented level of prosperity. Yet for all the benefits we have enjoyed, many environmental problems have been occurred on a global scale, suchas global warming and the depletion of the world's natural resources. At the dawn of the 21st
century, we are driven to reflect and to take decisive action to make the "transition to a sustainable system of production and consumption." While we, as a chemical manufacturer, have contributed much to the improvement of living standards and welfare through supplying a wide
range of chemical products, we also recognize the imperative need to ensure that our corporate
activities and our products do not lead to environmental problems and jeopardization of humanhealth.
Based on this recognition, we have committed ourselves in the spirit of Responsible Care designed to protect the environment and ensure human safety and health in all aspects and at allstages of our products throughout their life-cycle from development through production, distribution, use and end-user consumption to disposal.
One of the priority areas of our strategy has been defined in our medium-term management planas "Environment and Energy." This underscores our determination to embrace environmental
management as a core element of our management strategies. "Environmental Management" isa management approach that addresses environmental considerations as important concerns. In
this sense, it is our mission to integrate environmental protection into all our activities, from research and development through the production process to the sale of our products, and thereby
enhance the value of our company and contribute to the realization of a sustainable society.
The key feature of our operational structure is our manufacturing activities in both chemical
products and cement. In all our production activities, we have always maintained a resolutecommitment to recycling of by-products and waste. In 2000, we launched the Resource Recycling and Environmental Business Department. The importance we attach to the environment as
a business proposition can be gauged by the way we accepted as much as 1.34 million tons ofexternal industrial by-products and waste for use in our cement plant in 2002. These activities have produced a"trickle-down" effect that has helped us build a solid awareness at all levels of our organization of the principles of"environmental management." Hereafter, we will strengthen
our various resource-recycling and environmental businessactivities in a commitment to the shaping of a sustainable
society and in our ambition to win the trust and loyalty of
all our customers and of society at large.
With the 21st century being hailed as "the century of the environment," we are determined to play our role and measure up to our responsibility as a manufacturing company increating a dynamic and sustainable order of society.

Site Report
Track Record of Our Activities and Group
Company Profile

Shigeaki Nakahara
President
August 1, 2003

Our Commitment to Environmental Issues

Evaluation of 2002 Activities

We define our basic policy and action objectives in acompany-wide commitment to the promotion ofenvironmental management.

The results of our efforts to reduce environmental impact
have fueled our ambitions to work toward yet moredemanding targets.

Basic Policy
As a member of the Japan Responsible Care Council, Tokuyama Corporation carries out Responsible Care activities that protect the environment and preserve safety and health throughout the entire chemical substance life
cycle from development to manufacturing, distribution, use, final consumption and disposal. Our social mission
is to aggressively tackle and solve environmental issues in particular, which will, in turn, drive sustainable corporate development. Based on this recognition, we are promoting environmental management, which is a management policy that emphasizes the environment, in all of our business activities, including development, manufacturing and sales.

Action Objectives
1 To promote environmental protection.
・ To employ the environmental management system in accordance with ISO14001 and reduce
environmental impacts.

2 To faithfully observe laws and regulations.
・ To faithfully observe international rules, domestic laws and regulations, and industry standards.
・ To thoroughly practice internal export control rules.

3 To promote energy conservation and curb global warming.
・ To achieve the lowest unit energy consumption in the industry for all of our products.

4 To promote resource recycling and work toward reduction
and proper management of waste materials.
・ To promote material recycling and thermal recycling of resources.
・ To promote office paper reduction.

5 To promote safety, disaster prevention, and occupational health and safety.
・ To aim for zero accidents and disasters on the basis of the principle of self-management in safety
and responsibility.
・ To ensure a comfortable work environment and preserve safety and health.

6 To ensure strict product safety standards.
・ To provide products that have little impact on the environment and can be used safely.
・ To provide appropriate information on how to use products properly, precautions, etc.

7 To deepen our trusting relationship with society.
・ To disclose information regarding our activities in the areas of the environment, safety and health.
・ To actively carry out dialogue with local communities.

Activity Goal・ Achieving a 15% reduction in the 1990 unit energy consumption by 2005.
・ Achieving a 92% improvement in the effective waste utilization rate by 2005.
Responsible Care (RC) Responsible Care (RC) is a self-management activity to implement and improve measures concerning the environment andsafety and health. It is an activity of a corporation producing or handling chemical substances that pledges in its management policy to protect theenvironment and to ensure safety and health throughout the entire chemical substance life cycle, from development, manufacturing, distribution, use
and final consumption to disposal on the basis of the principle of self-determination and self-responsibility.

The targets set for environmental impact reduction and the results achieved in 2002 are summarized below.
We determined our environmental impact reduction targets for each of our business and production locations and acted upon them accordingly.
Moreover, we promoted company-wide activities
such as energy saving, waste sorting and recovery, and green procurement* at our Head Officeand Branch Offices.
■ Our Commitment to the Environment［Promoting Responsible Care］
As a member of the Japan Responsible Care Council,
we recognize and accept our roles and responsibilities
for the promotion of Responsible Care.
The Japan Responsible Care Council has introduced
and initiated a verification system in an attempt togive greater substance to the RC activities of its corporate members and ensure a fuller measure of transparency in their actions for the surrounding community. We intend to accept this verification system toimprove our RC activities.
［Promoting the Introduction of a Management
System］
We are making progress towards achieving standardization of our activities. In this context we have embraced a company-wide commitment to the introduction and expansion of the ISO9001 and ISO14001
systems as well as the safety and health management
system. We also recommend member companies of theTokuyama Group and our affiliated companies to introduce these systems.
［Contributing to the Realization of a Recyclingoriented Society］
Cement-making is the core area of our business activities and we devote our efforts to the achievement ofrecycling and reuse in this area as our contribution toward the fostering of a recycling-oriented society.
［Environmental Perspective throughout the Lifecycle of our Products］
We accept a full commitment to environmental care in
all our production activities, including the reduction of
the environmental impacts of our products in the manufacturing process, the recycling of wastes, and energy
conservation and saving.

house power generation.
Our material flow balance shows the consumption
levels of all primary inputs such as raw materials,
fuels, water consumed for the production of our main
products and for power generation on the one hand,and all emission levels generated in the process of our
production activities, including carbon dioxide, wastewater and other emissions with an environmental impact on the other.
■ Our Environmental Activities in 2002:
the Facts and their Appraisal
・ We have been successful in achieving a significant
reduction in the emission of environmentally harmful substances such as SOx and NOx, recoveringand recycling solids from our effluents, recovering
waste heat and making progress in the thermal recycling of waste plastics.
・ We have made substantial progress in reducing
NOx emissions with the start of full-scale operationof a new gas denitrification system (de-NOx) at ourcement plant.

The purchase decisions regarding products and services are governed not onlyby the considerations ofprice, quality, convenienceand design but also by thepreference for goods andservices with the least possible environmental impact.

Material Flow Balance for Our Production Activities
Unit: 1,000s of tons

IN

Carbon dioxide
6,700

OUT

Raw materials 7,400

Products

Fuels

Wastes22(Incineration/Landfill)

2,000

By-products & Waste
1,340

Production
Process

7,000

Environmentally
harmful emissions 12

Industrial waste-water
21,000Water■ Production Activities and Material Flow
Most of the fuels and energy we use are consumed in
the production of cement, chemical products, andpolycrystalline silicon. Moreover, the entire energy
supply for our production facilities comes from in-*Green Procurement

48,000Waste-water, etc.

This material balance for our production activities shows the flow of all inputs, including raw materials and energy, and of all outputs, including carbon dioxide, wastes and environmentally harmful emissions.

Environmental Report 2003

02

03

Our Commitment to Environmental Issues

Evaluation of 2002 Activities

We define our basic policy and action objectives in acompany-wide commitment to the promotion ofenvironmental management.

The results of our efforts to reduce environmental impact
have fueled our ambitions to work toward yet moredemanding targets.

Basic Policy
As a member of the Japan Responsible Care Council, Tokuyama Corporation carries out Responsible Care activities that protect the environment and preserve safety and health throughout the entire chemical substance life
cycle from development to manufacturing, distribution, use, final consumption and disposal. Our social mission
is to aggressively tackle and solve environmental issues in particular, which will, in turn, drive sustainable corporate development. Based on this recognition, we are promoting environmental management, which is a management policy that emphasizes the environment, in all of our business activities, including development, manufacturing and sales.

Action Objectives
1 To promote environmental protection.
・ To employ the environmental management system in accordance with ISO14001 and reduce
environmental impacts.

2 To faithfully observe laws and regulations.
・ To faithfully observe international rules, domestic laws and regulations, and industry standards.
・ To thoroughly practice internal export control rules.

3 To promote energy conservation and curb global warming.
・ To achieve the lowest unit energy consumption in the industry for all of our products.

4 To promote resource recycling and work toward reduction
and proper management of waste materials.
・ To promote material recycling and thermal recycling of resources.
・ To promote office paper reduction.

5 To promote safety, disaster prevention, and occupational health and safety.
・ To aim for zero accidents and disasters on the basis of the principle of self-management in safety
and responsibility.
・ To ensure a comfortable work environment and preserve safety and health.

6 To ensure strict product safety standards.
・ To provide products that have little impact on the environment and can be used safely.
・ To provide appropriate information on how to use products properly, precautions, etc.

7 To deepen our trusting relationship with society.
・ To disclose information regarding our activities in the areas of the environment, safety and health.
・ To actively carry out dialogue with local communities.

Activity Goal・ Achieving a 15% reduction in the 1990 unit energy consumption by 2005.
・ Achieving a 92% improvement in the effective waste utilization rate by 2005.
Responsible Care (RC) Responsible Care (RC) is a self-management activity to implement and improve measures concerning the environment andsafety and health. It is an activity of a corporation producing or handling chemical substances that pledges in its management policy to protect theenvironment and to ensure safety and health throughout the entire chemical substance life cycle, from development, manufacturing, distribution, use
and final consumption to disposal on the basis of the principle of self-determination and self-responsibility.

The targets set for environmental impact reduction and the results achieved in 2002 are summarized below.
We determined our environmental impact reduction targets for each of our business and production locations and acted upon them accordingly.
Moreover, we promoted company-wide activities
such as energy saving, waste sorting and recovery, and green procurement* at our Head Officeand Branch Offices.
■ Our Commitment to the Environment［Promoting Responsible Care］
As a member of the Japan Responsible Care Council,
we recognize and accept our roles and responsibilities
for the promotion of Responsible Care.
The Japan Responsible Care Council has introduced
and initiated a verification system in an attempt togive greater substance to the RC activities of its corporate members and ensure a fuller measure of transparency in their actions for the surrounding community. We intend to accept this verification system toimprove our RC activities.
［Promoting the Introduction of a Management
System］
We are making progress towards achieving standardization of our activities. In this context we have embraced a company-wide commitment to the introduction and expansion of the ISO9001 and ISO14001
systems as well as the safety and health management
system. We also recommend member companies of theTokuyama Group and our affiliated companies to introduce these systems.
［Contributing to the Realization of a Recyclingoriented Society］
Cement-making is the core area of our business activities and we devote our efforts to the achievement ofrecycling and reuse in this area as our contribution toward the fostering of a recycling-oriented society.
［Environmental Perspective throughout the Lifecycle of our Products］
We accept a full commitment to environmental care in
all our production activities, including the reduction of
the environmental impacts of our products in the manufacturing process, the recycling of wastes, and energy
conservation and saving.

house power generation.
Our material flow balance shows the consumption
levels of all primary inputs such as raw materials,
fuels, water consumed for the production of our main
products and for power generation on the one hand,and all emission levels generated in the process of our
production activities, including carbon dioxide, wastewater and other emissions with an environmental impact on the other.
■ Our Environmental Activities in 2002:
the Facts and their Appraisal
・ We have been successful in achieving a significant
reduction in the emission of environmentally harmful substances such as SOx and NOx, recoveringand recycling solids from our effluents, recovering
waste heat and making progress in the thermal recycling of waste plastics.
・ We have made substantial progress in reducing
NOx emissions with the start of full-scale operationof a new gas denitrification system (de-NOx) at ourcement plant.

The purchase decisions regarding products and services are governed not onlyby the considerations ofprice, quality, convenienceand design but also by thepreference for goods andservices with the least possible environmental impact.

Material Flow Balance for Our Production Activities
Unit: 1,000s of tons

IN

Carbon dioxide
6,700

OUT

Raw materials 7,400

Products

Fuels

Wastes22(Incineration/Landfill)

2,000

By-products & Waste
1,340

Production
Process

7,000

Environmentally
harmful emissions 12

Industrial waste-water
21,000Water■ Production Activities and Material Flow
Most of the fuels and energy we use are consumed in
the production of cement, chemical products, andpolycrystalline silicon. Moreover, the entire energy
supply for our production facilities comes from in-*Green Procurement

48,000Waste-water, etc.

This material balance for our production activities shows the flow of all inputs, including raw materials and energy, and of all outputs, including carbon dioxide, wastes and environmentally harmful emissions.

Environmental Report 2003

02

03

Evaluation of 2002 Activities

Environmental Accounting for 2002

Environmental accounting plays an important rolein achieving effective environmental investment.

・ Our efforts in waste recycling in 2002 focused onincreasing the rate of waste utilization and on substantially reducing the amount of waste disposed ofas landfill.
・ Our efforts toward the thermal recycling of waste
enabled us to improve unit energy consumption.
With effect from 2003, a more rigorous commitment will be undertaken to save energy and reduce
waste on a project basis.
・ As regards COD (Chemical Oxygen Demand),

PRTR (Pollutant Release and Transfer Register),dust and harmful atmospheric pollutants, there wasvariously a slight increase in emission levels due to
production increase or a leveling off .
・ We have made the necessary adjustments to meet
the Soil Contamination Countermeasures Law, thePRTR Act and other new regulatory systems.
・ We properly adjusted the air-conditioning systems
and lighting of our offices in order to save electricity
and as an integral part of our Green Procurement
policy we promoted the use of recycled paper.

Our FY 2002 RC Activities - Main Issues and Areas of Effort
Activity

Priority Issue

Details

・Review by top management

Management

the coal-fired boilers in our power plant and generalwastewater treatment plant. Investment funds werealso allocated to the renewal of the electrostatic precipitators for the cement plant and to the modificationof the waste incinerator.
The economic benefits earned were calculated fromthe cost savings in terms of reduced treatment costs
and reduced primary fuel costs due to the reuse ofwastes, and the costs benefits in terms of energy savings and profits made on the sale of saleable wastes.
The profits gained from the economic effect of increased waste recovery and reuse in 2002 were improved by roughly 500 million yen to the previous
year.

Since 2000, we have kept environmental accounting* in order to permit a precise assessment andanalysis of environmental investment and costs,
and attain more effective investment for environmental protection in the future.
■ Environmental Costs
The environmental costs and economic benefits were
accounted for by environmental accounting.
Our investments in pollution prevention and resource
recycling accounted for about 90% of our total environmental investments. The rest of the investment costs
went for plant development and environmental monitoring/measuring equipment.
Our main items of environmental investment spendingin 2002 were environmental protection measures for*Environmental
Accounting
A clear recognition of thecosts incurred in theenvironmental protection
measures undertaken in ourbusiness activities and of
the benefits achieved as aresult helps us make aquantitative assessmentthat is then made public.

・RC Administration Committee
・Safety/environmental inspection

Environmental protection

・Reducing environmental impact (NOx, SOx, etc.)

・Reducing emission levels of NOx, SOx, etc.

・Reducing environmental impact

・Reducing emission levels of PRTR and harmful atmospheric pollutants

・Thermal recycling of waste plastics

・Energy conservation

・Improvement in unit energy consumption

・Material recycling of wastes

・Recycling

・Improvement in waste utilization rate

・Energy saving and resource-recycling in our offices

・Promoting Green Procurement

・Green Procurement of paper and office materials

FY2002 Environmental Protection Costs
Type of Environmental Protection Costs

・Effective response to environmental regulations

On-site Costs

・Accident-free operation

・Safety/environmental assessment

・Safety of distribution/transport・Acquiring safety approval for pressurized gases on a voluntary basis

Labor safety and health・Zero-accident rate

・Introduction of a labor safety and healthmanagement system

Product safety

・Ensuring product safety

・Product assessment

Safety and accident prevention

・Establishing an MSDS system
・Establishing a yellow card system
・HPV program
Social communication

・Participating in local/regional activities

・Participating in local voluntary activities
・Dialogue with local communities

with local communities
Promoting RC in order to encourage

・Diffusion of RC

・Safety and environmental inspection
・Promoting moves for the acquisition of ISO certification

other group members to engage in RC

Pollution
prevention

Upstream/downstream
costs
Costs of management
activities
Research and development costs
Costs of community activities
Costs of environmental
damageMain Measures Undertaken
Installation of effluent treatment plant, fluegas treatment plant, and dust collectors(ESPs)

Measures against
global warming

Energy conservation

Material
Recycling

Modification of waste incinerator, installation of a general effluent treatment plant,
organic flue gas combustion plant

-

-

-

Installation of analyzers and meters for environmental measuring equipment
Development of facilities related to environmental protection-

Factory greening-

Levies, disused mine area administration

Total

Pollution
prevention

Details
Atmosphere

FY2001

FY2002Difference against
pre-activity year

-

2,260

2,010

-250

tons/year-

10,80010,400-400

tons/year

-

179

235

+56

tons/year

-

128

134

+6

%

-15

-11

-12

-1

91

94

+3

Unit

TargetSOx

tons/year

NOx
Dust

(Unit: Million yen)

564

3,418

0

15

381

1,040

0

-

28

245

73

268

17

36

0

217

1,063

5,239

Economic Benefits
Item

COD

Measures against
global warming

Energy conservation

Reduction in unit energy consumption

Reductionof wastes

Recycling

PRTR

PRTR

-

tons/year

-

88

90

+2

Harmful atmosphericpollutants-

tons/year

-

53

53

0

Material Benefits

Economic Benefits(Unit: 1,000s of tons) (Unit: Millions of yen)262

Benefits arising from electricity and steam savings

Sale of saleable materials

160

173

Profits arising from the sale of saleable wastes
such as metal scrap, waste oils, waste acids andwaste alkalis.

Reduction in waste treatment
costs

182

467

Saved waste treatment costs as a result of waste
reuse

Reduction in material/fuel consumption due to waste recycling

185

345

Saved primary fuel costs as a result of waste reuse（2005）

index (as compared with 1990)%

92

Remarks-

Reduction due to energy saving

Water quality

Rate of effective waste utilization

Total Costs(Unit: Million yen)

* Data compiled in accordance with the Ministry of the Environment Guidelines for Introducing Environmental Accounting Systems.
* The data cover all manufacturing plants of the company.

FY 2002 Environmental Management Activities
Activity

Investment Amount（2005）

Total

1,247

Environmental Report 2003

04

05

Evaluation of 2002 Activities

Environmental Accounting for 2002

Environmental accounting plays an important rolein achieving effective environmental investment.

・ Our efforts in waste recycling in 2002 focused onincreasing the rate of waste utilization and on substantially reducing the amount of waste disposed ofas landfill.
・ Our efforts toward the thermal recycling of waste
enabled us to improve unit energy consumption.
With effect from 2003, a more rigorous commitment will be undertaken to save energy and reduce
waste on a project basis.
・ As regards COD (Chemical Oxygen Demand),

PRTR (Pollutant Release and Transfer Register),dust and harmful atmospheric pollutants, there wasvariously a slight increase in emission levels due to
production increase or a leveling off .
・ We have made the necessary adjustments to meet
the Soil Contamination Countermeasures Law, thePRTR Act and other new regulatory systems.
・ We properly adjusted the air-conditioning systems
and lighting of our offices in order to save electricity
and as an integral part of our Green Procurement
policy we promoted the use of recycled paper.

Our FY 2002 RC Activities - Main Issues and Areas of Effort
Activity

Priority Issue

Details

・Review by top management

Management

the coal-fired boilers in our power plant and generalwastewater treatment plant. Investment funds werealso allocated to the renewal of the electrostatic precipitators for the cement plant and to the modificationof the waste incinerator.
The economic benefits earned were calculated fromthe cost savings in terms of reduced treatment costs
and reduced primary fuel costs due to the reuse ofwastes, and the costs benefits in terms of energy savings and profits made on the sale of saleable wastes.
The profits gained from the economic effect of increased waste recovery and reuse in 2002 were improved by roughly 500 million yen to the previous
year.

Since 2000, we have kept environmental accounting* in order to permit a precise assessment andanalysis of environmental investment and costs,
and attain more effective investment for environmental protection in the future.
■ Environmental Costs
The environmental costs and economic benefits were
accounted for by environmental accounting.
Our investments in pollution prevention and resource
recycling accounted for about 90% of our total environmental investments. The rest of the investment costs
went for plant development and environmental monitoring/measuring equipment.
Our main items of environmental investment spendingin 2002 were environmental protection measures for*Environmental
Accounting
A clear recognition of thecosts incurred in theenvironmental protection
measures undertaken in ourbusiness activities and of
the benefits achieved as aresult helps us make aquantitative assessmentthat is then made public.

・RC Administration Committee
・Safety/environmental inspection

Environmental protection

・Reducing environmental impact (NOx, SOx, etc.)

・Reducing emission levels of NOx, SOx, etc.

・Reducing environmental impact

・Reducing emission levels of PRTR and harmful atmospheric pollutants

・Thermal recycling of waste plastics

・Energy conservation

・Improvement in unit energy consumption

・Material recycling of wastes

・Recycling

・Improvement in waste utilization rate

・Energy saving and resource-recycling in our offices

・Promoting Green Procurement

・Green Procurement of paper and office materials

FY2002 Environmental Protection Costs
Type of Environmental Protection Costs

・Effective response to environmental regulations

On-site Costs

・Accident-free operation

・Safety/environmental assessment

・Safety of distribution/transport・Acquiring safety approval for pressurized gases on a voluntary basis

Labor safety and health・Zero-accident rate

・Introduction of a labor safety and healthmanagement system

Product safety

・Ensuring product safety

・Product assessment

Safety and accident prevention

・Establishing an MSDS system
・Establishing a yellow card system
・HPV program
Social communication

・Participating in local/regional activities

・Participating in local voluntary activities
・Dialogue with local communities

with local communities
Promoting RC in order to encourage

・Diffusion of RC

・Safety and environmental inspection
・Promoting moves for the acquisition of ISO certification

other group members to engage in RC

Pollution
prevention

Upstream/downstream
costs
Costs of management
activities
Research and development costs
Costs of community activities
Costs of environmental
damageMain Measures Undertaken
Installation of effluent treatment plant, fluegas treatment plant, and dust collectors(ESPs)

Measures against
global warming

Energy conservation

Material
Recycling

Modification of waste incinerator, installation of a general effluent treatment plant,
organic flue gas combustion plant

-

-

-

Installation of analyzers and meters for environmental measuring equipment
Development of facilities related to environmental protection-

Factory greening-

Levies, disused mine area administration

Total

Pollution
prevention

Details
Atmosphere

FY2001

FY2002Difference against
pre-activity year

-

2,260

2,010

-250

tons/year-

10,80010,400-400

tons/year

-

179

235

+56

tons/year

-

128

134

+6

%

-15

-11

-12

-1

91

94

+3

Unit

TargetSOx

tons/year

NOx
Dust

(Unit: Million yen)

564

3,418

0

15

381

1,040

0

-

28

245

73

268

17

36

0

217

1,063

5,239

Economic Benefits
Item

COD

Measures against
global warming

Energy conservation

Reduction in unit energy consumption

Reductionof wastes

Recycling

PRTR

PRTR

-

tons/year

-

88

90

+2

Harmful atmosphericpollutants-

tons/year

-

53

53

0

Material Benefits

Economic Benefits(Unit: 1,000s of tons) (Unit: Millions of yen)262

Benefits arising from electricity and steam savings

Sale of saleable materials

160

173

Profits arising from the sale of saleable wastes
such as metal scrap, waste oils, waste acids andwaste alkalis.

Reduction in waste treatment
costs

182

467

Saved waste treatment costs as a result of waste
reuse

Reduction in material/fuel consumption due to waste recycling

185

345

Saved primary fuel costs as a result of waste reuse（2005）

index (as compared with 1990)%

92

Remarks-

Reduction due to energy saving

Water quality

Rate of effective waste utilization

Total Costs(Unit: Million yen)

* Data compiled in accordance with the Ministry of the Environment Guidelines for Introducing Environmental Accounting Systems.
* The data cover all manufacturing plants of the company.

FY 2002 Environmental Management Activities
Activity

Investment Amount（2005）

Total

1,247

Environmental Report 2003

04

05

Support System for Responsible Care (RC) and Inspection Audits

We have created a system in the company for planning,
execution, evaluation and auditing to promote
environmental measures quickly and effectively.
are selected by the respective committee or subcommittee chairman from the related Administration Departments.
In order to ensure the safety of equipment and environmental protection, a Safety and Environment Assessment Subcommittee is appointed. Its task is to inspect the safety of newly installed or modified
equipment and its influence on the environment.

The RC Administration Committee and the Environmental Measures Committee evaluate the progress and results achieved in the implementationof our medium-term (three-year) environmental
plan. We also operate an inspection and assessment system to check that management activities
are carried out properly.
*ISO 14001
This international standard
was established by theInternational Standards
Organization (ISO) for
Environmental Management
Systems. It is not the typeof standard that prescribes
the mere adherence tocertain standard values thathave been decided, as is thecase with pollution
regulation measures. The
company determines thepolicies and targets for
reducing environmental
impacts, and theaccreditation body certifies
the results achieved as aresult of establishing theenvironmental management
system.

■ Support System for Responsible Care (RC)The supreme decision-making organization on issues
related to the company's general RC activities is the
RC Administration Committee. Chaired by the President of Tokuyama Corporation, its sessions are held in
the presence of the members of the company's topmanagement. This RC Administration Committee discusses and approves company-wide policies and measures on safety, environmental protection, and quality.
The sub-organizations of this Committee are the Safety Measures Committee, the Environmental Measures
Committee, the Product Safety and Quality AssuranceCommittee, and the Product Assessment Committee.
These organizations examine the specific programs forsafety management, environmental management, andProduct safety. One of the Directors is appointed topreside over each committee and subcommittee andtake charge of environmental, safety and quality management. The committee and subcommittee members■ Management System for Environmental
Activities and their Evaluation
In the process of achieving the medium-term environmental plan, a system is in place under which policies
and targets are defined each year and specific action
programs are established on the basis of these policies
and targets for each division. The activity results areevaluated at the end of each year and integrated into
the plan for the next year.
■ ISO 14001 Environmental Management
SystemThe Tokuyama and Kashima Factories have both acquired ISO 14001* certification for their Environmental Management Systems. In accordance with the company-wide environmental policy directions,environmental policies and targets are determined foreach factory.
Management System for Environmental
Activity Evaluation

RC Promotion Organization Chart
RC Administration
Committee

RC Activity Goals

Environmental Measures
Committee
Assessment Organization

Product Assessment
Committee(Labeling Assessment
Subcommittee)

Safety and Environment
Assessment
Subcommittee

RC ResearchLaboratory(Support Organization)

Consists of Analysis
Group, Environmental
Analysis Group, RC Evaluation Group and supports the RC Organizationin research matters.

Safety Measures Committee
Product Safety and Quality
Assurance Committee
Internal Export Control
Committee

Responsible Care &Eco-management
Dept. (secretariat)
Promotes the diffusion of
RC activities related to theenvironment, safety andquality on a companywide basis and also
among the member companies of the entire Group.

Integration into the targets and plans for the next year

Decision-making
Organization

Environmental
Impact Reduction
Targets
Medium-term
environmental plan

Environmental
Management Plan

Environmental
Management
Activities

ISO 14001
Environmental
Management
SystemSafety andEnvironmental
Assessment System
RC Inspection and
Auditing System

Activity Evaluation

Environmental
Accounting■ ISO 9001 Quality Management System
We have acquired ISO 9001* Quality Management
System certification for our main products. In 2002,
we made the transition to ISO9001:2000 Standard
and established our company-wide quality management system. The quality management system is effective throughout the company, including the sales anddevelopment departments, and will continue further toenhance customer satisfaction.
■ Inspection System
We have established a comprehensive range of assessment or inspection systems in an effort to reduce environmental and safety risks.
We have established the Safety and Environment Assessment Subcommittee and the Product Assessment
Committee as the organizations in charge of assessment and inspection. Their role is to carry our rigorous checks on the way in which environmental management, safety management and product safety
management are implemented.
［Safety and Environmental Inspection］
Safety can only be achieved when the work operations
and the equipment with which the work is done aresafe. Whenever new production equipment is installedor existing equipment extended or modified, the practice is to conduct safety and environmental inspections
beforehand. The objective of these safety and environmental inspections is to investigate the safety of equipment design, the safety of the materials handled, theexistence of an appropriate response to errors, andcompliance with the legal regulations in order to ensure that all equipment is safe and easy to operate,
maintenance-friendly and free from accidents. Prior to
the installation of equipment and before any equipment is finished and commissioned we make sure thatit has been designed and built for safety and environmental compatibility. At a further stage, we check thatthe startup preparations have been completed in themost thorough manner.
［Product Safety and Labeling Inspection］
To verify the safety of our products, product safety inspections are carried out employing a comprehensive
range of criteria and at all stages from research anddevelopment and design phases to the marketing ofour products. Risk assessments are made in these inspection procedures from a variety of viewpoints, including the safety of chemical products, their effect on
the environment, the effect on human health and theircompliance with the relevant legal regulations.

■ Inspection and Auditing System
A system for inspecting and auditing has been established to check whether all factories are implementing
appropriate activities in accordance with companywide policies.
［Safety and Environmental Inspection］
Safety and Environmental Inspections are carried out
to check that appropriate safety and environmental action is implemented in the Production Department andthe related Administration Departments. Any defective
area that is discovered in the inspection process is
identified and instructions for improvement are given.

*ISO 9001
This international standard
for quality management andquality assurance wasestablished by theInternational Standards
Organization (ISO). The
objective of this standard isto obtain customer
satisfaction by establishing a
reliable quality system
within the corporate
organization.

Safety and Environment Inspection［Internal and External Auditing］
Internal auditing is carried out on a regular basis in accordance with the ISO14001 Environmental Management System and the ISO9001 Quality Management
System. Internal audits are carried out to check that
activities are implemented in accordance with theplans and to pinpoint any defective areas for improvement.
［Third-Party Inspection］
We are subject to inspection by the Registration Body
that carries out investigation of our ISO14001 Environmental Management System and the ISO9001
Quality Management System.
■ Promotion of Green Procurement
We have established Green Procurement standards andare actively engaged in green procurement for copying-paper and stationery.
■ Instruction and Training
Our employees receive instruction on RC in the group
instruction courses held for the various grades of employees.
In the areas of the environment, safety and health andquality control, practical instruction and training areprovided as part of the respective management activities.

Environmental
Performance

Environmental Report 2003

06

07

Support System for Responsible Care (RC) and Inspection Audits

We have created a system in the company for planning,
execution, evaluation and auditing to promote
environmental measures quickly and effectively.
are selected by the respective committee or subcommittee chairman from the related Administration Departments.
In order to ensure the safety of equipment and environmental protection, a Safety and Environment Assessment Subcommittee is appointed. Its task is to inspect the safety of newly installed or modified
equipment and its influence on the environment.

The RC Administration Committee and the Environmental Measures Committee evaluate the progress and results achieved in the implementationof our medium-term (three-year) environmental
plan. We also operate an inspection and assessment system to check that management activities
are carried out properly.
*ISO 14001
This international standard
was established by theInternational Standards
Organization (ISO) for
Environmental Management
Systems. It is not the typeof standard that prescribes
the mere adherence tocertain standard values thathave been decided, as is thecase with pollution
regulation measures. The
company determines thepolicies and targets for
reducing environmental
impacts, and theaccreditation body certifies
the results achieved as aresult of establishing theenvironmental management
system.

■ Support System for Responsible Care (RC)The supreme decision-making organization on issues
related to the company's general RC activities is the
RC Administration Committee. Chaired by the President of Tokuyama Corporation, its sessions are held in
the presence of the members of the company's topmanagement. This RC Administration Committee discusses and approves company-wide policies and measures on safety, environmental protection, and quality.
The sub-organizations of this Committee are the Safety Measures Committee, the Environmental Measures
Committee, the Product Safety and Quality AssuranceCommittee, and the Product Assessment Committee.
These organizations examine the specific programs forsafety management, environmental management, andProduct safety. One of the Directors is appointed topreside over each committee and subcommittee andtake charge of environmental, safety and quality management. The committee and subcommittee members■ Management System for Environmental
Activities and their Evaluation
In the process of achieving the medium-term environmental plan, a system is in place under which policies
and targets are defined each year and specific action
programs are established on the basis of these policies
and targets for each division. The activity results areevaluated at the end of each year and integrated into
the plan for the next year.
■ ISO 14001 Environmental Management
SystemThe Tokuyama and Kashima Factories have both acquired ISO 14001* certification for their Environmental Management Systems. In accordance with the company-wide environmental policy directions,environmental policies and targets are determined foreach factory.
Management System for Environmental
Activity Evaluation

RC Promotion Organization Chart
RC Administration
Committee

RC Activity Goals

Environmental Measures
Committee
Assessment Organization

Product Assessment
Committee(Labeling Assessment
Subcommittee)

Safety and Environment
Assessment
Subcommittee

RC ResearchLaboratory(Support Organization)

Consists of Analysis
Group, Environmental
Analysis Group, RC Evaluation Group and supports the RC Organizationin research matters.

Safety Measures Committee
Product Safety and Quality
Assurance Committee
Internal Export Control
Committee

Responsible Care &Eco-management
Dept. (secretariat)
Promotes the diffusion of
RC activities related to theenvironment, safety andquality on a companywide basis and also
among the member companies of the entire Group.

Integration into the targets and plans for the next year

Decision-making
Organization

Environmental
Impact Reduction
Targets
Medium-term
environmental plan

Environmental
Management Plan

Environmental
Management
Activities

ISO 14001
Environmental
Management
SystemSafety andEnvironmental
Assessment System
RC Inspection and
Auditing System

Activity Evaluation

Environmental
Accounting■ ISO 9001 Quality Management System
We have acquired ISO 9001* Quality Management
System certification for our main products. In 2002,
we made the transition to ISO9001:2000 Standard
and established our company-wide quality management system. The quality management system is effective throughout the company, including the sales anddevelopment departments, and will continue further toenhance customer satisfaction.
■ Inspection System
We have established a comprehensive range of assessment or inspection systems in an effort to reduce environmental and safety risks.
We have established the Safety and Environment Assessment Subcommittee and the Product Assessment
Committee as the organizations in charge of assessment and inspection. Their role is to carry our rigorous checks on the way in which environmental management, safety management and product safety
management are implemented.
［Safety and Environmental Inspection］
Safety can only be achieved when the work operations
and the equipment with which the work is done aresafe. Whenever new production equipment is installedor existing equipment extended or modified, the practice is to conduct safety and environmental inspections
beforehand. The objective of these safety and environmental inspections is to investigate the safety of equipment design, the safety of the materials handled, theexistence of an appropriate response to errors, andcompliance with the legal regulations in order to ensure that all equipment is safe and easy to operate,
maintenance-friendly and free from accidents. Prior to
the installation of equipment and before any equipment is finished and commissioned we make sure thatit has been designed and built for safety and environmental compatibility. At a further stage, we check thatthe startup preparations have been completed in themost thorough manner.
［Product Safety and Labeling Inspection］
To verify the safety of our products, product safety inspections are carried out employing a comprehensive
range of criteria and at all stages from research anddevelopment and design phases to the marketing ofour products. Risk assessments are made in these inspection procedures from a variety of viewpoints, including the safety of chemical products, their effect on
the environment, the effect on human health and theircompliance with the relevant legal regulations.

■ Inspection and Auditing System
A system for inspecting and auditing has been established to check whether all factories are implementing
appropriate activities in accordance with companywide policies.
［Safety and Environmental Inspection］
Safety and Environmental Inspections are carried out
to check that appropriate safety and environmental action is implemented in the Production Department andthe related Administration Departments. Any defective
area that is discovered in the inspection process is
identified and instructions for improvement are given.

*ISO 9001
This international standard
for quality management andquality assurance wasestablished by theInternational Standards
Organization (ISO). The
objective of this standard isto obtain customer
satisfaction by establishing a
reliable quality system
within the corporate
organization.

Safety and Environment Inspection［Internal and External Auditing］
Internal auditing is carried out on a regular basis in accordance with the ISO14001 Environmental Management System and the ISO9001 Quality Management
System. Internal audits are carried out to check that
activities are implemented in accordance with theplans and to pinpoint any defective areas for improvement.
［Third-Party Inspection］
We are subject to inspection by the Registration Body
that carries out investigation of our ISO14001 Environmental Management System and the ISO9001
Quality Management System.
■ Promotion of Green Procurement
We have established Green Procurement standards andare actively engaged in green procurement for copying-paper and stationery.
■ Instruction and Training
Our employees receive instruction on RC in the group
instruction courses held for the various grades of employees.
In the areas of the environment, safety and health andquality control, practical instruction and training areprovided as part of the respective management activities.

Environmental
Performance

Environmental Report 2003

06

07

Community-wide Recycling

We are committed to recycling waste and by-products
not only from our own plants but also from outside.
Changes in Material Recycling Volumes at Cement Plant

Our cement plant reuses a large quantity and variety of waste and by-products of both internaland external origin.
Much of the waste and by-products contains thesame components as the raw materials used for
cement such as limestone, clay, and silica. They
can, therefore, be used as raw materials for cement.
Cement kilns* are operated at extremely hightemperatures in the range of 1000 - 1800˚C. Under
these conditions, all combustible components arecompletely combusted. The ash residues remaining in the kiln after combustion are used as a raw
material for cement.
The waste components are thermally recycled tomake use of their heat energy and materially recycled for effective reuse as raw materials. In thismanner, the cement plant can make a substantial
contribution to achieving the recycling-oriented
society of the future.

Cement kilns are used forsintering the materials in the
cement plant.

*Material Recycling
Material recycling involves
the reuse of waste andby-products as materials.
Our cement plant uses slag,
coal ash, sludge andincineration ash generated
both internally and externally.

*Thermal Recycling
Thermal recycling involves
the reuse of waste as a heatsource . Our cement plant
accepts in-house andexternal waste plastics,
waste tires and other waste
and uses them as fuel.

Recycling at the Cement Plant
SilicaNatural resources■ Accepting a Wide Range of Waste
・Waste Plastics
We have a plant that crushes waste to convert it tofuel for thermal recycling in our cement kilns. In
2002, we recycled 38,000 tons of waste plastics inthis manner.
・Waste Tires
Our plant receives cut waste tires and feeds theminto the cement kilns. In 2002, we recycled 4,000
tons of waste tires.
・Coal Ash/Sludge, etc.
The coal combustion residues (coal ash) from coalfired power stations and the sludge from municipal
sewage systems are used as an alternative to clay. In
2002, a total of 650,000 tons were recycled. The
sewage sludge receiving plant has been extended
from its previous 30,000 tons/year to its present
85,000 tons throughput capacity per year. The ash
and sludge receiving system was arranged to cover awide area.

■ Accepting waste and by-products atthe cement factory
Since our debut in the cement sector in 1938, we haveadhered to the practice of accepting various industrial
waste of internal and external origin for use as raw
materials or for use of its heat content as fuels for ourcement kilns. This has made a significant contribution
to achieving a recycling-oriented society in the sensethat it allows the effective use of the world’s limited
resources.
In 2002, as much as 1.67 million tons of waste andby-products was reused at our cement plant. This includes a total of 1.61 million tons used as alternative
raw materials (material recycling*) and 55,000 tons
used as alternative fuels (thermal recycling*).
In 2002, the amount of waste and by-products accepted by our cement plant for reuse from outside thecompany accounted for 1.34 million tons.

Waste/by-products (material recycling)

Waste (thermal recycling)

2,000
1,500
1,000
500
0
90 91 92 93 94 95 96 97 98 99 00 01 02 (FY)

Changes in Thermal Recycling Volumes at Cement Plant
60

Recycled volume (1,000 tons)*Cement Kiln

Recycled volume (1,000 tons)

2,500

50
40
30
20
10
0
90 91 92 93 94 95 96 97 98 99 00 01 02 (FY)

Recycling of waste and by-products
for cement production

Resource and Energy Recycling System

Limestone
Coal

Fuel

Conversion
to energy

Energy supply
to plants

Fuel consumption:

55,000 tons
Flue gas treatment process Raw material process

Sintering process

Finishing process

Coal/
Fuel oil

New suspension pre-heater(preheating unit)

Electrostatic precipitator

Power Station

Electric
power/
Steam(In-house
generating plant)

Waste plastics/
Used tires/
Wood

Thermal recycling

Combustion gas temperature 1800˚C
Material drier
Rotary kiln

Flue de-SOx
GypsumClinker cooler

Coal ash

Cement plant
Use ofby-products

CementMaterial consumption:

1.61 million tons

Finishingmill

In-house waste
and by-products
Sludge0.33 million tons

Coal
ash

GypsumWaste plastics/
Waste tires

Externallysupplied wastes
and byproducts
1.34 million tons

Sludge,Dross,
Slag

Coal ash

Waste plastics,
Waste tires

Waste
plastics

Slag

GypsumCement plant

Waste recycling

CementWaste-heatboilerSlag
Flue de-SOx Gypsum(0.96 Million tons)
Coal ash/Sludge(0.65 Million tons)

Material recycling

Waste heatrecoveryEnvironmental Report 2003

08

09

Community-wide Recycling

We are committed to recycling waste and by-products
not only from our own plants but also from outside.
Changes in Material Recycling Volumes at Cement Plant

Our cement plant reuses a large quantity and variety of waste and by-products of both internaland external origin.
Much of the waste and by-products contains thesame components as the raw materials used for
cement such as limestone, clay, and silica. They
can, therefore, be used as raw materials for cement.
Cement kilns* are operated at extremely hightemperatures in the range of 1000 - 1800˚C. Under
these conditions, all combustible components arecompletely combusted. The ash residues remaining in the kiln after combustion are used as a raw
material for cement.
The waste components are thermally recycled tomake use of their heat energy and materially recycled for effective reuse as raw materials. In thismanner, the cement plant can make a substantial
contribution to achieving the recycling-oriented
society of the future.

Cement kilns are used forsintering the materials in the
cement plant.

*Material Recycling
Material recycling involves
the reuse of waste andby-products as materials.
Our cement plant uses slag,
coal ash, sludge andincineration ash generated
both internally and externally.

*Thermal Recycling
Thermal recycling involves
the reuse of waste as a heatsource . Our cement plant
accepts in-house andexternal waste plastics,
waste tires and other waste
and uses them as fuel.

Recycling at the Cement Plant
SilicaNatural resources■ Accepting a Wide Range of Waste
・Waste Plastics
We have a plant that crushes waste to convert it tofuel for thermal recycling in our cement kilns. In
2002, we recycled 38,000 tons of waste plastics inthis manner.
・Waste Tires
Our plant receives cut waste tires and feeds theminto the cement kilns. In 2002, we recycled 4,000
tons of waste tires.
・Coal Ash/Sludge, etc.
The coal combustion residues (coal ash) from coalfired power stations and the sludge from municipal
sewage systems are used as an alternative to clay. In
2002, a total of 650,000 tons were recycled. The
sewage sludge receiving plant has been extended
from its previous 30,000 tons/year to its present
85,000 tons throughput capacity per year. The ash
and sludge receiving system was arranged to cover awide area.

■ Accepting waste and by-products atthe cement factory
Since our debut in the cement sector in 1938, we haveadhered to the practice of accepting various industrial
waste of internal and external origin for use as raw
materials or for use of its heat content as fuels for ourcement kilns. This has made a significant contribution
to achieving a recycling-oriented society in the sensethat it allows the effective use of the world’s limited
resources.
In 2002, as much as 1.67 million tons of waste andby-products was reused at our cement plant. This includes a total of 1.61 million tons used as alternative
raw materials (material recycling*) and 55,000 tons
used as alternative fuels (thermal recycling*).
In 2002, the amount of waste and by-products accepted by our cement plant for reuse from outside thecompany accounted for 1.34 million tons.

Waste/by-products (material recycling)

Waste (thermal recycling)

2,000
1,500
1,000
500
0
90 91 92 93 94 95 96 97 98 99 00 01 02 (FY)

Changes in Thermal Recycling Volumes at Cement Plant
60

Recycled volume (1,000 tons)*Cement Kiln

Recycled volume (1,000 tons)

2,500

50
40
30
20
10
0
90 91 92 93 94 95 96 97 98 99 00 01 02 (FY)

Recycling of waste and by-products
for cement production

Resource and Energy Recycling System

Limestone
Coal

Fuel

Conversion
to energy

Energy supply
to plants

Fuel consumption:

55,000 tons
Flue gas treatment process Raw material process

Sintering process

Finishing process

Coal/
Fuel oil

New suspension pre-heater(preheating unit)

Electrostatic precipitator

Power Station

Electric
power/
Steam(In-house
generating plant)

Waste plastics/
Used tires/
Wood

Thermal recycling

Combustion gas temperature 1800˚C
Material drier
Rotary kiln

Flue de-SOx
GypsumClinker cooler

Coal ash

Cement plant
Use ofby-products

CementMaterial consumption:

1.61 million tons

Finishingmill

In-house waste
and by-products
Sludge0.33 million tons

Coal
ash

GypsumWaste plastics/
Waste tires

Externallysupplied wastes
and byproducts
1.34 million tons

Sludge,Dross,
Slag

Coal ash

Waste plastics,
Waste tires

Waste
plastics

Slag

GypsumCement plant

Waste recycling

CementWaste-heatboilerSlag
Flue de-SOx Gypsum(0.96 Million tons)
Coal ash/Sludge(0.65 Million tons)

Material recycling

Waste heatrecoveryEnvironmental Report 2003

08

09

Environmentally-oriented Products and Technologies

Supplying environmentally-oriented products andtechnology is our way of contributing to the realizationof a recycling-oriented society.
Our corporate activities focus on the development of environmentally-oriented products, on
product recycling technology and on waste recycling techniques. This ongoing commitment to environmental technology gives us the strength to
make a significant contribution to the shaping ofa recycling-oriented society.
■ Use of TOKUSIL for low-energy tires
The precipitated silica TOKUSIL has conventionallybeen used for a variety of applications including fillers
and reinforcement agents for rubbers, newspaper filler
material, and absorbent carriers. In recent years it has
attracted much attention by reason of its favorable
properties in reduction of rolling resistance between
the tire and the road surface. The use of silica in tires
thus leads to a significant improvement in fuel consumption. Apart from energy saving, the silica-added
tire also improves vehicle running stability on wet
roads.
Based on our proprietary technology, we have developed our TOKUSIL USR with improved dispersion
properties when the silica is filled into tires. Thanks to
the use of this highly dispersed silica, we have beenable to achieve a further 20% improvement in rolling
resistance. This is equivalent to a more than 5% improvement in fuel consumption.
We have taken our silica development work a step further with our TOKUSIL USG product which is environmentally-friendly with less dust generation.

■ Development of Developer Solution
Recycling Technology
We manufacture and sell the developer solution SD Series which
is used in the lithography processes for semiconductors and liquid crystal panels. Amidst thegrowing awareness of the needfor environmental protection inrecent years and the resulting
tightening of the regulations concerning the prevention of waterpollution and effective resource
utilization, manufacturers have a Developer Solution SD-1
statutory duty to recycle developer solution waste.
This has led to an intense effort to commercialize recycling.
We have also commenced the recovery and recyclingof waste from high-purity chemicals used in the electronics industry with products such as TOKUSOH IPA
SE.
With the benefit of our unique distillation technology,
we have in particular developed commercial equipment for recycling solvents. These are designed to recover and recycle used solvents such as resist strippers.
■ Development of Fuel Conversion
Technology Using Waste Plastics
for Cement-Making
We have long worked on the development of technology permitting the use of waste plastics for cement-making. The use of waste plastics is showing a year-onyear increase. The present plastic waste/fuel conversion plant has been boosted from a throughput capacity of 45,000 tons/year to almost double that, i. e.,
85,000 tons/year. The fuel conversion system for waste
plastics developed during the period has been recog-

Precipitated silica TOKUSIL

The Head of the Industrial Science and Technology Policy andEnvironment Bureau Prize

nized as state-of-the-art and as being of great practicalvalue. As a token of this acknowledgment, it was awarded the Head of the Industrial Science and Technology
Policy and Environment Bureau Prize, a Distinction bestowed on Advanced Resource Recycling Technology
and Systems by the Ministry of Economy, Trade andIndustry (METI) in 2002.
［Use of meat and bone meal in cement kiln］
In connection with the outbreak of mad-cow disease(BSE), about 2,000 tons of meat and bone meal havebeen incinerated in a year. This has done much to reduce the vast stocks of meat and bone meal in Japan’s
Chugoku region. The treatment of meat and bonemeal in cement kilns is a safe way owing to utilizationof the ash residue after incineration as a cement component.
■ Use of Polycrystalline Silicon for Solar
Batteries
The solar light energy pouring down on earth in just
one hour is as much energy as the whole of mankind
can use in a year. Harnessing this energy in a solar battery helps us save fossil fuels. Power output from solar
batteries amounted to 512MW worldwide in 2002,
and 460MW or so of this comes from solar batteries
made from silicon. Power generated from solar batteries is a clean energy, without emissions. Efforts are underway in all countries to introduce solar power batteries. To expand their use, however, it is essential todevelop more advanced production technology capable of manufacturing the polycrystalline silicon used
for solar batteries more cheaply.
We are one of the world's few manufacturers of highpurity polycrystalline silicon and supply our productto single-crystal manufacturers to be used for the IC
chips in electronic parts . We have also begun to develop a product designed for solar battery applications.

The SHANON HOUSE is designed with consideration
to a long-life durability of as much as hundred years
and dwelling comfort cool in summer and warm in
winter.
Because of the high thermal insulation properties of
hard urethane, the problem of dew condensation causing wood rot, the enemy of any home, is eliminated. A
construction method is used in which wall structure
makes the framework of house stronger. This hashelped raise seismic resistance and wind resistance
2.5 times compared to houses built by conventional
construction systems.
The high thermal insulation of the plastic sash SHANON window and the urethane panel (FP panel) form
an ideal combination to achieve a homestead with thermal insulation of world top class level. Because of theoutstanding thermal insulation, the SHANON
HOUSE can save energy consumption for heating andcooling by up to about one third compared to an ordinary house.
The SHANON HOUSE has the ambition of being aprotector of the global environment with its long-life
durability and energy-saving friendliness.

SHANON HOUSE■ The SHANON HOUSE - A product withthe ambition of being a zero-energy
home for the next hundred years
Shunan System Sangyo Co., Ltd., a member companyof the Tokuyama Group, is proud to present its SHANON HOUSE, a dwelling with high thermal insulation and highly-sealed properties.
At present, about 20% of all industrial waste in thewhole of Japan is construction waste, including house
demolition rubble. Assuming that Japanese houses continue to be rebuilt every 30 years, it is clear that environmental impact due to construction waste will increase relentlessly. This environmental impact can
only be lessened by developing longer-life housing.
Environmental Report 2003

10

11

Environmentally-oriented Products and Technologies

Supplying environmentally-oriented products andtechnology is our way of contributing to the realizationof a recycling-oriented society.
Our corporate activities focus on the development of environmentally-oriented products, on
product recycling technology and on waste recycling techniques. This ongoing commitment to environmental technology gives us the strength to
make a significant contribution to the shaping ofa recycling-oriented society.
■ Use of TOKUSIL for low-energy tires
The precipitated silica TOKUSIL has conventionallybeen used for a variety of applications including fillers
and reinforcement agents for rubbers, newspaper filler
material, and absorbent carriers. In recent years it has
attracted much attention by reason of its favorable
properties in reduction of rolling resistance between
the tire and the road surface. The use of silica in tires
thus leads to a significant improvement in fuel consumption. Apart from energy saving, the silica-added
tire also improves vehicle running stability on wet
roads.
Based on our proprietary technology, we have developed our TOKUSIL USR with improved dispersion
properties when the silica is filled into tires. Thanks to
the use of this highly dispersed silica, we have beenable to achieve a further 20% improvement in rolling
resistance. This is equivalent to a more than 5% improvement in fuel consumption.
We have taken our silica development work a step further with our TOKUSIL USG product which is environmentally-friendly with less dust generation.

■ Development of Developer Solution
Recycling Technology
We manufacture and sell the developer solution SD Series which
is used in the lithography processes for semiconductors and liquid crystal panels. Amidst thegrowing awareness of the needfor environmental protection inrecent years and the resulting
tightening of the regulations concerning the prevention of waterpollution and effective resource
utilization, manufacturers have a Developer Solution SD-1
statutory duty to recycle developer solution waste.
This has led to an intense effort to commercialize recycling.
We have also commenced the recovery and recyclingof waste from high-purity chemicals used in the electronics industry with products such as TOKUSOH IPA
SE.
With the benefit of our unique distillation technology,
we have in particular developed commercial equipment for recycling solvents. These are designed to recover and recycle used solvents such as resist strippers.
■ Development of Fuel Conversion
Technology Using Waste Plastics
for Cement-Making
We have long worked on the development of technology permitting the use of waste plastics for cement-making. The use of waste plastics is showing a year-onyear increase. The present plastic waste/fuel conversion plant has been boosted from a throughput capacity of 45,000 tons/year to almost double that, i. e.,
85,000 tons/year. The fuel conversion system for waste
plastics developed during the period has been recog-

Precipitated silica TOKUSIL

The Head of the Industrial Science and Technology Policy andEnvironment Bureau Prize

nized as state-of-the-art and as being of great practicalvalue. As a token of this acknowledgment, it was awarded the Head of the Industrial Science and Technology
Policy and Environment Bureau Prize, a Distinction bestowed on Advanced Resource Recycling Technology
and Systems by the Ministry of Economy, Trade andIndustry (METI) in 2002.
［Use of meat and bone meal in cement kiln］
In connection with the outbreak of mad-cow disease(BSE), about 2,000 tons of meat and bone meal havebeen incinerated in a year. This has done much to reduce the vast stocks of meat and bone meal in Japan’s
Chugoku region. The treatment of meat and bonemeal in cement kilns is a safe way owing to utilizationof the ash residue after incineration as a cement component.
■ Use of Polycrystalline Silicon for Solar
Batteries
The solar light energy pouring down on earth in just
one hour is as much energy as the whole of mankind
can use in a year. Harnessing this energy in a solar battery helps us save fossil fuels. Power output from solar
batteries amounted to 512MW worldwide in 2002,
and 460MW or so of this comes from solar batteries
made from silicon. Power generated from solar batteries is a clean energy, without emissions. Efforts are underway in all countries to introduce solar power batteries. To expand their use, however, it is essential todevelop more advanced production technology capable of manufacturing the polycrystalline silicon used
for solar batteries more cheaply.
We are one of the world's few manufacturers of highpurity polycrystalline silicon and supply our productto single-crystal manufacturers to be used for the IC
chips in electronic parts . We have also begun to develop a product designed for solar battery applications.

The SHANON HOUSE is designed with consideration
to a long-life durability of as much as hundred years
and dwelling comfort cool in summer and warm in
winter.
Because of the high thermal insulation properties of
hard urethane, the problem of dew condensation causing wood rot, the enemy of any home, is eliminated. A
construction method is used in which wall structure
makes the framework of house stronger. This hashelped raise seismic resistance and wind resistance
2.5 times compared to houses built by conventional
construction systems.
The high thermal insulation of the plastic sash SHANON window and the urethane panel (FP panel) form
an ideal combination to achieve a homestead with thermal insulation of world top class level. Because of theoutstanding thermal insulation, the SHANON
HOUSE can save energy consumption for heating andcooling by up to about one third compared to an ordinary house.
The SHANON HOUSE has the ambition of being aprotector of the global environment with its long-life
durability and energy-saving friendliness.

SHANON HOUSE■ The SHANON HOUSE - A product withthe ambition of being a zero-energy
home for the next hundred years
Shunan System Sangyo Co., Ltd., a member companyof the Tokuyama Group, is proud to present its SHANON HOUSE, a dwelling with high thermal insulation and highly-sealed properties.
At present, about 20% of all industrial waste in thewhole of Japan is construction waste, including house
demolition rubble. Assuming that Japanese houses continue to be rebuilt every 30 years, it is clear that environmental impact due to construction waste will increase relentlessly. This environmental impact can
only be lessened by developing longer-life housing.
Environmental Report 2003

1011

Towards Reducing Environmental Impact

We have a range of solutions to reduce
environmental impact.

SOx, short for sulfur oxides,
are generated in large
amounts in the combustionof fossil fuels such as coaland petroleum. They aredeleterious to human health,causing mainly respiratoryorgan diseases. They are also
responsible for acid rain.

*NOxNOx, short for nitrogenoxides, are contained in theexhaust gases ofautomobiles and factories.
They are responsible forphotochemical smog andacid rain.

■ Changes in SOx Emission Levels
SOx* (sulfur oxides) are released from heavy
oil or coal burning plant installations suchas boilers, cement kilns, and dryers. All power generating boilers are provided with flue
desulfurizing (de-SOx) systems in an effort
to reduce their emissions. The de-SOx process leads to the formation of gypsum which
in turn is used as a raw material for cement.
■ Changes in NOx Emission Levels
NOx* (nitrogen oxides) are released fromheavy oil or coal burning plant installations
such as boilers, cement kilns, and dryers. DeNOx systems and low-NOx burners areused in all types of combustion systems, including the boilers of power stations or thekilns of a cement plant. We have operated deNOx systems in cement kilns since 2002.

4,000

200

3,000

150

Emission volume (tons)

COD Emission Levels

Emission levels (tons)

SOx Emission Levels

2,000

1,000

100

50

90 91 92 93 94 95 96 97 98 99 00 01 02 (FY)NOx Emission Levels

90 91 92 93 94 95 96 97 98 99 00 01 02 (FY)60

■ PRTRWe are committed to the rigorous executionof PRTR investigation and the reduction ofchemical substances emission. In 2002, a total of 22 substances was subject to registration in PRTR. Their overall emission volume
stands at 90 tons.

40

Emission Levels of Chemical Substances
Subject to Registration in the PRTR

120

10,000

100

8,000
6,000
4,000

Vinyl chloride
Chloroform
1,2- dichloroethane
Dichloromethane80

Name of specified chemical

20
0

0
90 91 92 93 94 95 96 97 98 99 00 01 02 (FY)* DustDust consists of fineparticles such as sootcontained in the smoke
released from factory flue
stacks.

Dust Emission Levels

95

96

97

98

99

00

01

02

(FY)

Emission volume (tons)

Emission levels (tons)

100
50

Emission level (tons)

Ethylene glycol

3.6

Cresol22.0

Vinyl chloride

10.0

Chloroform

8.8

1,2- dichloroethane

22.0

1,2- dichloropropane

4.8

Dichloromethane

11.0

Toluene

4.8

300■ Dioxin Prevention Measures

200

Waste incinerators and waste oil incinerators are subject to dioxin emission regulations and dioxin measuring and monitoringis required. We have modified our waste incinerator to ensure full compliance with thedioxin countermeasure law. A small waste
incinerator was taken out of operation.

250

150

Chemical Oxygen DemandThis is one indicator of thelevel of water contamination.
It gives the amount ofoxygen required to oxidize
the organic substances in thewater.

Emission of Chemical Substances Registered for PRTR

300

200

■ Changes in Harmful Atmospheric
Pollutant Emissions
Voluntary management activities are in place
to reduce the emissions of harmful atmospheric pollutants.
We manufacture four of these chemicals: vinyl chloride, chloroform, 1,2- dichloroethane and dichloromethane. We have determined our own voluntary reduction targets
for these substances to implement effective
reduction programs.

*COD

Emission of Harmful Atmospheric Pollutants

12,0002,000■ Changes in Dust Emission Levels
Dust* is generated in the combustion of fuelsin power generating boilers and cement kilns.
These plant units are provided with high-efficiency electrostatic dust precipitators in aneffort to reduce dust emissions.

■ Changes in COD Emissions
Every effort is being made to prevent watercontamination due to industrial effluents.
Effluents containing organic substances aretreated in activated sludge treatment facilities to reduce their chemical oxygen demand(COD*).

0

0

Emission volume (tons)*SOx

From a very early stage, we have madeit our business to quantify the environmental impact of the emissions andwaste sent into the atmosphere and into
water mainly from our power plants andcement plant and to take positive action
to reduce them. In recent years, we havealso embraced an active commitment toward the reduction of the chemical substances requiring registration in the Pollutant Release and Transfer Register(PRTR*) as well as dioxins.

Emission levels (tons)*PRTR
Pollutant Release Transfer
Register
The PRTR system keeps arecord of data on harmful
pollutants and serves todisclose the details to the
public. The data give theparticulars concerning thesources from which
pollutants arise, to what
extent they are released into
the atmosphere and in whatquantities they are containedin waste and transferred toother outside locations.

100

0

0
90 91 92 93 94 95 96 97 98 99 00 01 02 (FY)

98

99

00

01

02

(FY)

Environmental Report 2003

1213

Towards Reducing Environmental Impact

We have a range of solutions to reduce
environmental impact.

SOx, short for sulfur oxides,
are generated in large
amounts in the combustionof fossil fuels such as coaland petroleum. They aredeleterious to human health,causing mainly respiratoryorgan diseases. They are also
responsible for acid rain.

*NOxNOx, short for nitrogenoxides, are contained in theexhaust gases ofautomobiles and factories.
They are responsible forphotochemical smog andacid rain.

■ Changes in SOx Emission Levels
SOx* (sulfur oxides) are released from heavy
oil or coal burning plant installations suchas boilers, cement kilns, and dryers. All power generating boilers are provided with flue
desulfurizing (de-SOx) systems in an effort
to reduce their emissions. The de-SOx process leads to the formation of gypsum which
in turn is used as a raw material for cement.
■ Changes in NOx Emission Levels
NOx* (nitrogen oxides) are released fromheavy oil or coal burning plant installations
such as boilers, cement kilns, and dryers. DeNOx systems and low-NOx burners areused in all types of combustion systems, including the boilers of power stations or thekilns of a cement plant. We have operated deNOx systems in cement kilns since 2002.

4,000

200

3,000

150

Emission volume (tons)

COD Emission Levels

Emission levels (tons)

SOx Emission Levels

2,000

1,000

100

50

90 91 92 93 94 95 96 97 98 99 00 01 02 (FY)NOx Emission Levels

90 91 92 93 94 95 96 97 98 99 00 01 02 (FY)60

■ PRTRWe are committed to the rigorous executionof PRTR investigation and the reduction ofchemical substances emission. In 2002, a total of 22 substances was subject to registration in PRTR. Their overall emission volume
stands at 90 tons.

40

Emission Levels of Chemical Substances
Subject to Registration in the PRTR

120

10,000

100

8,000
6,000
4,000

Vinyl chloride
Chloroform
1,2- dichloroethane
Dichloromethane80

Name of specified chemical

20
0

0
90 91 92 93 94 95 96 97 98 99 00 01 02 (FY)* DustDust consists of fineparticles such as sootcontained in the smoke
released from factory flue
stacks.

Dust Emission Levels

95

96

97

98

99

00

01

02

(FY)

Emission volume (tons)

Emission levels (tons)

100
50

Emission level (tons)

Ethylene glycol

3.6

Cresol22.0

Vinyl chloride

10.0

Chloroform

8.8

1,2- dichloroethane

22.0

1,2- dichloropropane

4.8

Dichloromethane

11.0

Toluene

4.8

300■ Dioxin Prevention Measures

200

Waste incinerators and waste oil incinerators are subject to dioxin emission regulations and dioxin measuring and monitoringis required. We have modified our waste incinerator to ensure full compliance with thedioxin countermeasure law. A small waste
incinerator was taken out of operation.

250

150

Chemical Oxygen DemandThis is one indicator of thelevel of water contamination.
It gives the amount ofoxygen required to oxidize
the organic substances in thewater.

Emission of Chemical Substances Registered for PRTR

300

200

■ Changes in Harmful Atmospheric
Pollutant Emissions
Voluntary management activities are in place
to reduce the emissions of harmful atmospheric pollutants.
We manufacture four of these chemicals: vinyl chloride, chloroform, 1,2- dichloroethane and dichloromethane. We have determined our own voluntary reduction targets
for these substances to implement effective
reduction programs.

*COD

Emission of Harmful Atmospheric Pollutants

12,0002,000■ Changes in Dust Emission Levels
Dust* is generated in the combustion of fuelsin power generating boilers and cement kilns.
These plant units are provided with high-efficiency electrostatic dust precipitators in aneffort to reduce dust emissions.

■ Changes in COD Emissions
Every effort is being made to prevent watercontamination due to industrial effluents.
Effluents containing organic substances aretreated in activated sludge treatment facilities to reduce their chemical oxygen demand(COD*).

0

0

Emission volume (tons)*SOx

From a very early stage, we have madeit our business to quantify the environmental impact of the emissions andwaste sent into the atmosphere and into
water mainly from our power plants andcement plant and to take positive action
to reduce them. In recent years, we havealso embraced an active commitment toward the reduction of the chemical substances requiring registration in the Pollutant Release and Transfer Register(PRTR*) as well as dioxins.

Emission levels (tons)*PRTR
Pollutant Release Transfer
Register
The PRTR system keeps arecord of data on harmful
pollutants and serves todisclose the details to the
public. The data give theparticulars concerning thesources from which
pollutants arise, to what
extent they are released into
the atmosphere and in whatquantities they are containedin waste and transferred toother outside locations.

100

0

0
90 91 92 93 94 95 96 97 98 99 00 01 02 (FY)

98

99

00

01

02

(FY)

Environmental Report 2003

1213

Towards Reducing Environmental Impact

Our Commitment to Safety

Reducing the volume of waste is one solution and anothersolution is to reuse waste effectively to minimize thevolume of waste requiring disposal as landfill.

We are totally dedicated to the safety of our factories andpersonnel and to the prevention of environmental
accidents.

*PCB
PCB, short for polychloride
biphenyl, is a harmfulorganic compound with astructure resembling that of
DDT. It is the causal agent
responsible for the Kanemi
Oil Disease accident. It
releases dioxins on burning.
Because of its superior heatand chemical resistance andits outstanding insulation
properties it has been used
for capacitor insulation. In
1972, its production was
discontinued andmanufacturers and factories
were compelled to takeback and store PCBcontaining transformers andcapacitors that had alreadybeen on the market.

Without safety it is not possible to maintain steady production operation. For us, "Safety is the basis of all business activities, and ensuring safety
is always the first step in our symbiosis with society." Founded on this basic attitude toward safety,
we engage in our corporate activities with the determination to reach our zero-accident and zerodisaster goals.

We are firmly committed to the reuse of waste. In
2002, the waste utilization ratio was 94%. This iswell above the 92% target we had set ourselves
for 2005.

residue being disposed of as landfill. Thanks to our aggressive endeavor in the reuse of waste as a fuel andraw materials for cement-making, our waste utilization ratio was as high as 94%.

■ Waste Management
In 2002, our total in-house waste volume amounted toapproximately 360,000 tons. Waste released from ourfactories was either reused or incinerated with the ash■ PCB Waste Management
We and our member companies keep PCB* transformers and high-voltage capacitors under appropriately
managed storage conditions.

Breakdown of In-house Waste Treatment

Variation in Effective Waste
Utilization Ratio
50

Landfill amount (1,000 tons)

8,000 tons

(In-house)

367,000 tons

Internally recycled
amount337,000 tons
Incinerated
amount21,000 tons

Landfillamount

85
30
80
20
75
10
0

1,000 tons

90

40

70
65
90 91 92 93 94 95 96 97 98 99 00 01 02 05 (FY)

topicsOur commitment to the prevention of global warming
We consume energy on a massive scale in manufacturing caustic soda and cement. We accept ourcommitment to the prevention of global warming as an important issue and are making every effort
to conserve and save energy.
Carbon dioxide (CO2), one of the greenhouse gases*, is released mainly from our power plants andcement kilns. At our main factory, the Tokuyama Factory, the target is to reduce unit energy consumption by 15% as compared with the 1990 energy consumption by 2005. Our energy conservation drive was already successful in achieving a 12% reduction in unit energy consumption in 2002.
Despite increased production output the carbon dioxide emission levels was kept steady thanks toour various energy conservation efforts. We have also replaced the specified chlorofluorocarbons(CFCs) used as refrigerants with alternative CFCs.

0

7,000

-2

6,000

-4

5,000
4,000
3,000
2,000
1,000

The Earth is kept cool by therelease of heat into outer spacein the form of infrared radiation.
Greenhouse gases absorb
infrared radiation and thus
prevent the release of heat.
Greenhouse gases include
carbon dioxide, methane,
nitrous oxide and CFCs. Amonggreenhouse gases, carbon
dioxide is emitted in the largest
amounts and therefore has thegreatest impact on global
warming.

Variation in Unit Energy Consumption Index

8,000

Reduction rate (%)

Emission level (1,000 tons)

Variation in CO2 Emission (Converted to CO2)

*Greenhouse Gases

We organize a variety of safety instruction programs
such as in-house seminars, safety meetings, danger
prediction training and training for new employees.
These events are designed to raise the general level ofsafety awareness among our employees and cooperating firms.

*5S activity
The 5S activity is an activity
for making the workplaceneat and clean in order toprevent problems arising.

*Safety and HealthManagement System
Our Safety and HealthManagement System isbased on organizedactivities for prevention ofwork accidents. This
management system
includes OHSAS 18001 andthe Guidelines for Safety
and Health Management
Systems of the Ministry of
Health, Labour and Welfare.

■ Acquisition of Voluntary Safety
Certification
For equipment subject to the provisions of the Pressurized Gas Safety Act we have acquired safety approval
on a voluntary basis. In addition to the polypropylene
production plant for which we acquired safety approval in 2002, we have also obtained approval as
Safety Approval Inspection service for IPA (isopropyl
alcohol) production plants. We shall continue to makepreparations for obtaining similar approval for otherequipment.

■ Commitment toward TPM■ Safety and Environmental Inspection
We carry out safety and environmental inspections forall our factories and business premises to ensure that
our safety management
activities are conductedin the appropriate manner. Whenever any defector shortfall is discoveredin the inspection procedures, a request for imSafety and Environmental Inspection
provement is issued.

In November 2002, we received the TPM* Distinction
Prize for our cement plant. We make the same commitment to TPM also at our other plants.

■ Changes in Safety Activity Records
We take great pride in the fact that thanks to our effective safety activities we have achieved a level ofsafety that is well above the industry average.

Trend Pattern for Safety Records
3*TPM
TPM is short for Total
Productive Maintenance. Its
purpose is to achieve
greater efficiency inproduction system
maintenance. The way itworks is to establish
systems for preventing all
kinds of losses with targets
such as zero-accidents, zerodefects, and zerobreakdowns, and to achievezero-loss with the efforts ofall our employees.

Industry as a whole
Chemical industry■ Safety and Health Management
System-8-10

For each factory we have created a safety and healthmanagement system*. These systems have been put
into operation in 2003.

-12

-16
90 91 92 93 94 95 96 97 98 99 00 01 02 (FY)■ Safety Instruction

-6

-14

0

■ Safety Activities Toward Achieving our
Zero-Accident Target
On the "look before you leap" principle, the fundamental policy for all activities enjoins all employees toheed safety first before acting. In this way we are resolute in working toward our zero-accident target. For
this purpose we deploy a wide range of safety activities, including on-the-job safety meetings, safety patrols, danger prediction activities, the 5S activity*, increasing the number of danger signs and labels,
completeness-checking by voicing items by name while
pointing at them, and safety instruction.

We carry out measurements at workplaces using substances such as specific chemicals and organic solventsin an effort to create and maintain a comfortableworkplace environment. In accordance with the resultsof these measurements, we make improvements in ourwork methods and equipment. In order to protect thehealth of our employees we have regular health checkprograms.

Tokuyama

Incidence

Total Waste
Amount95

Effective Waste Utilization Ratio (%)

Externally recycled
amount■ General Accident Prevention Activities
We have a comprehensive range of fire-fighting equipment and materials in readiness for all eventualities,
including chemical fire engines, high-reach water-jet
fire engines, ambulances and oil fences. We have alsoestablished self-defense fire brigades in our plant complexes and implement general, combined fire drills andexercises assuming the accidents that can occur.

■ Work Environment Management2

1

90 91 92 93 94 95 96 97 98 99 00 01 02 05 (FY)※With effect from this fiscal year we no longer quote carbon

dioxide emissions by converting to the carbon equivalent but
directly as carbon dioxide emissions.

0
90 91 92 93 94 95 96 97 98 99 00 01 02 (FY)

Environmental Report 2003

14

15

Towards Reducing Environmental Impact

Our Commitment to Safety

Reducing the volume of waste is one solution and anothersolution is to reuse waste effectively to minimize thevolume of waste requiring disposal as landfill.

We are totally dedicated to the safety of our factories andpersonnel and to the prevention of environmental
accidents.

*PCB
PCB, short for polychloride
biphenyl, is a harmfulorganic compound with astructure resembling that of
DDT. It is the causal agent
responsible for the Kanemi
Oil Disease accident. It
releases dioxins on burning.
Because of its superior heatand chemical resistance andits outstanding insulation
properties it has been used
for capacitor insulation. In
1972, its production was
discontinued andmanufacturers and factories
were compelled to takeback and store PCBcontaining transformers andcapacitors that had alreadybeen on the market.

Without safety it is not possible to maintain steady production operation. For us, "Safety is the basis of all business activities, and ensuring safety
is always the first step in our symbiosis with society." Founded on this basic attitude toward safety,
we engage in our corporate activities with the determination to reach our zero-accident and zerodisaster goals.

We are firmly committed to the reuse of waste. In
2002, the waste utilization ratio was 94%. This iswell above the 92% target we had set ourselves
for 2005.

residue being disposed of as landfill. Thanks to our aggressive endeavor in the reuse of waste as a fuel andraw materials for cement-making, our waste utilization ratio was as high as 94%.

■ Waste Management
In 2002, our total in-house waste volume amounted toapproximately 360,000 tons. Waste released from ourfactories was either reused or incinerated with the ash■ PCB Waste Management
We and our member companies keep PCB* transformers and high-voltage capacitors under appropriately
managed storage conditions.

Breakdown of In-house Waste Treatment

Variation in Effective Waste
Utilization Ratio
50

Landfill amount (1,000 tons)

8,000 tons

(In-house)

367,000 tons

Internally recycled
amount337,000 tons
Incinerated
amount21,000 tons

Landfillamount

85
30
80
20
75
10
0

1,000 tons

90

40

70
65
90 91 92 93 94 95 96 97 98 99 00 01 02 05 (FY)

topicsOur commitment to the prevention of global warming
We consume energy on a massive scale in manufacturing caustic soda and cement. We accept ourcommitment to the prevention of global warming as an important issue and are making every effort
to conserve and save energy.
Carbon dioxide (CO2), one of the greenhouse gases*, is released mainly from our power plants andcement kilns. At our main factory, the Tokuyama Factory, the target is to reduce unit energy consumption by 15% as compared with the 1990 energy consumption by 2005. Our energy conservation drive was already successful in achieving a 12% reduction in unit energy consumption in 2002.
Despite increased production output the carbon dioxide emission levels was kept steady thanks toour various energy conservation efforts. We have also replaced the specified chlorofluorocarbons(CFCs) used as refrigerants with alternative CFCs.

0

7,000

-2

6,000

-4

5,000
4,000
3,000
2,000
1,000

The Earth is kept cool by therelease of heat into outer spacein the form of infrared radiation.
Greenhouse gases absorb
infrared radiation and thus
prevent the release of heat.
Greenhouse gases include
carbon dioxide, methane,
nitrous oxide and CFCs. Amonggreenhouse gases, carbon
dioxide is emitted in the largest
amounts and therefore has thegreatest impact on global
warming.

Variation in Unit Energy Consumption Index

8,000

Reduction rate (%)

Emission level (1,000 tons)

Variation in CO2 Emission (Converted to CO2)

*Greenhouse Gases

We organize a variety of safety instruction programs
such as in-house seminars, safety meetings, danger
prediction training and training for new employees.
These events are designed to raise the general level ofsafety awareness among our employees and cooperating firms.

*5S activity
The 5S activity is an activity
for making the workplaceneat and clean in order toprevent problems arising.

*Safety and HealthManagement System
Our Safety and HealthManagement System isbased on organizedactivities for prevention ofwork accidents. This
management system
includes OHSAS 18001 andthe Guidelines for Safety
and Health Management
Systems of the Ministry of
Health, Labour and Welfare.

■ Acquisition of Voluntary Safety
Certification
For equipment subject to the provisions of the Pressurized Gas Safety Act we have acquired safety approval
on a voluntary basis. In addition to the polypropylene
production plant for which we acquired safety approval in 2002, we have also obtained approval as
Safety Approval Inspection service for IPA (isopropyl
alcohol) production plants. We shall continue to makepreparations for obtaining similar approval for otherequipment.

■ Commitment toward TPM■ Safety and Environmental Inspection
We carry out safety and environmental inspections forall our factories and business premises to ensure that
our safety management
activities are conductedin the appropriate manner. Whenever any defector shortfall is discoveredin the inspection procedures, a request for imSafety and Environmental Inspection
provement is issued.

In November 2002, we received the TPM* Distinction
Prize for our cement plant. We make the same commitment to TPM also at our other plants.

■ Changes in Safety Activity Records
We take great pride in the fact that thanks to our effective safety activities we have achieved a level ofsafety that is well above the industry average.

Trend Pattern for Safety Records
3*TPM
TPM is short for Total
Productive Maintenance. Its
purpose is to achieve
greater efficiency inproduction system
maintenance. The way itworks is to establish
systems for preventing all
kinds of losses with targets
such as zero-accidents, zerodefects, and zerobreakdowns, and to achievezero-loss with the efforts ofall our employees.

Industry as a whole
Chemical industry■ Safety and Health Management
System-8-10

For each factory we have created a safety and healthmanagement system*. These systems have been put
into operation in 2003.

-12

-16
90 91 92 93 94 95 96 97 98 99 00 01 02 (FY)■ Safety Instruction

-6

-14

0

■ Safety Activities Toward Achieving our
Zero-Accident Target
On the "look before you leap" principle, the fundamental policy for all activities enjoins all employees toheed safety first before acting. In this way we are resolute in working toward our zero-accident target. For
this purpose we deploy a wide range of safety activities, including on-the-job safety meetings, safety patrols, danger prediction activities, the 5S activity*, increasing the number of danger signs and labels,
completeness-checking by voicing items by name while
pointing at them, and safety instruction.

We carry out measurements at workplaces using substances such as specific chemicals and organic solventsin an effort to create and maintain a comfortableworkplace environment. In accordance with the resultsof these measurements, we make improvements in ourwork methods and equipment. In order to protect thehealth of our employees we have regular health checkprograms.

Tokuyama

Incidence

Total Waste
Amount95

Effective Waste Utilization Ratio (%)

Externally recycled
amount■ General Accident Prevention Activities
We have a comprehensive range of fire-fighting equipment and materials in readiness for all eventualities,
including chemical fire engines, high-reach water-jet
fire engines, ambulances and oil fences. We have alsoestablished self-defense fire brigades in our plant complexes and implement general, combined fire drills andexercises assuming the accidents that can occur.

■ Work Environment Management2

1

90 91 92 93 94 95 96 97 98 99 00 01 02 05 (FY)※With effect from this fiscal year we no longer quote carbon

dioxide emissions by converting to the carbon equivalent but
directly as carbon dioxide emissions.

0
90 91 92 93 94 95 96 97 98 99 00 01 02 (FY)

Environmental Report 2003

14

15

Total Safety Management for Chemical Products

As part of our uncompromising commitment to safety,
we collect product safety data and provide the information
to our customers and suppliers.
We are engaged in an ongoing process of collecting and compiling product safety data. Based on
our product safety data we carry out safety andenvironmental assessment as well as product andlabeling assessment. With a simulation method
to determine the dispersal behavior of chemical
emissions in the environment, we carry out surveys on the effects of chemicals on the surrounding environment. For hazardous and harmful
products, we give instructions and explanations
about their use to our customers and dealers.

correct information to the consumers in an effort toenhance the safety of our products.
For new chemicals, we carry out initial tests in accordance with the Chemical Substance Control Law andpursuant to the Industrial Safety and Health Law in aneffort to collect necessary test data. To assess the impact of our chemicals on the environment, we carryout simulations to determine the concentration distribution of chemicals that have been released.

■ Risk Management for Chemicals
We collect safety data on chemicals to implement safety evaluations. The results of these studies are used for
improving our safety measures in production plants
and our operating procedures while handling thesechemicals. We also provide safety instruction to all
personnel handling hazardous chemicals. From theproduct liability perspective, we endeavour to provide
Dispersion simulation

Flow of Safety Assessment Process
Assessment Step

Product Safety
Assessment

Start of research

Development
Group Leaders(First Assessment)

Start ofdevelopment

R&D
Department
Heads(Second Assessment)

Period ofconsiderationof development
for industrial
production

Equipment
design time

Product
Assessment
Committee(Third Assessment)

Safety/Environmental
Assessment

Labeling Assessment

Safety andEnvironmental
Assessment
Subcommittee(Basic Plan)

Safety andEnvironmental
Assessment
Subcommittee(Design)Pre-marketing(Pre-production start)

Safety andEnvironmental
Assessment
Subcommittee(Pre-commissioning)

Post-production
startFact Report(Environment)

Labeling
Assessment
Subcommittee■ Product and Product Labeling
Assessment
For chemicals and equipment, we apply rigorous inspections to assess their safety at all stages from research and development through the design phase to
the eventual marketing of the products. In 2002, we
implemented 18 product inspections.
All catalogues, Material Safety Data Sheets (MSDS*)
and technical documentation are closely scrutinized in
our labeling assessment to ensure that our descriptions
are free from error. In 2002, we carried out 562 labeling assessments.
■ HPV Program
We have marked out 18 of our products for entry in
the HVP Program*.
We became a leader of the calcium chloride HPV Program and formed an international consortium. In
October 2002, we submitted an HVP safety assessment report for calcium chloride to the international
conference held by the OECD* in Boston, USA. The
report was approved.
■ Waste Safety Management
In order to ensure the safety of waste while it is handled and transported, we prepare MSDS for waste anddistribute these data sheets to waste disposal services
and transport companies. We are prepared with Yellow Cards* for waste similar to those for our products
so that appropriate measures can be taken to ensure
the safety of waste in a traffic accident. All drivers are
required to carry these cards with them when transporting waste.
■ Providing Material Safety Data Sheets(MSDS)
Those who use, treat or distribute our products and/or
waste are issued with Material Safety Data Sheets(MSDS) which give explicit instructions on the correct
management of the substances at all stages of their life
cycle from use to disposal.
We prepare as many as around 400 MSDS for products and 76 for waste. The product and waste MSDS
and yellow cards are presented on our Intranet to ensure effective information-sharing on the safety of our
products and waste. The MSDS forms for the 15
products that are transported in the largest quantities
are presented on the company’s home page so thatthey can be accessed at any time and anywhere in an
emergency.

■ Promoting Safety in Distribution
Logistics and Environmental
Management［Instruction and Training of Members of the Distributive Trades on Safety Management］
We hold regular safety meetings with our distributors
to provide all necessary information to ensure safety
during the transportation of our products.
If a traffic accident occurred the Yellow Card would
give full instructions about the emergency measuresthat should be taken to ensure a fast and appropriate
response to the situation.
We have also created an emergency response organization and a communication system. An emergency action organization is in place to handle accidents anddisasters.
［Risk Assessment in Distribution Logistics］
Regarding the transportation of hazardous products,
we carry out risk assessments to make the necessary
arrangements for facilities to be used in emergencies
and to promote improvement of our customer's
plants. For products with a high danger-risk, training
sessions are conducted in simulated accident situations.

*Material Safety Data
Sheet (MSDS)
Material Safety Data Sheets
are used for entering all
information relevant to thedangers and hazards ofchemical products in orderto ensure their safe handling.
The details include thename of the chemical,
safety precautions andmeasures required in an
emergency.

*HPV ProgramHigh Production Volume(HPV) Programs areprograms in which priority
chemicals manufactured ona scale of 1,000 tons ormore in 2 countries or moreby the world's chemicalcompanies or by theindustry are assessed, withthe assessment results tobe reported by the end of
2004.

*OECD
Organization for Economic
Co-operation andDevelopment
This internationalorganization fosters
1) economic growth, 2) free
trade and 3) support fordeveloping countries
through free exchange of
opinions and information
among the leadingindustrialized countries.
Distribution training［Energy Saving in the Distribution Process］
Our transport logistics operation involves mainly maritime transport to our logistics centers and land transport from those to our customers. Maritime transport
accounts for about 3/4th of our entire transport operations. In the case of land transport, we are taking effective measures to save energy in transit by the introduction of transit control devices.

*Yellow Card
The Yellow Card is an
Emergency Instruction Card
giving details of what thedriver and/or his nearest
agents and the police should
do in an emergency so as toforestall accidents involving
chemicals and high-pressuregases in transit.

Environmental Report 2003

16

17

Total Safety Management for Chemical Products

As part of our uncompromising commitment to safety,
we collect product safety data and provide the information
to our customers and suppliers.
We are engaged in an ongoing process of collecting and compiling product safety data. Based on
our product safety data we carry out safety andenvironmental assessment as well as product andlabeling assessment. With a simulation method
to determine the dispersal behavior of chemical
emissions in the environment, we carry out surveys on the effects of chemicals on the surrounding environment. For hazardous and harmful
products, we give instructions and explanations
about their use to our customers and dealers.

correct information to the consumers in an effort toenhance the safety of our products.
For new chemicals, we carry out initial tests in accordance with the Chemical Substance Control Law andpursuant to the Industrial Safety and Health Law in aneffort to collect necessary test data. To assess the impact of our chemicals on the environment, we carryout simulations to determine the concentration distribution of chemicals that have been released.

■ Risk Management for Chemicals
We collect safety data on chemicals to implement safety evaluations. The results of these studies are used for
improving our safety measures in production plants
and our operating procedures while handling thesechemicals. We also provide safety instruction to all
personnel handling hazardous chemicals. From theproduct liability perspective, we endeavour to provide
Dispersion simulation

Flow of Safety Assessment Process
Assessment Step

Product Safety
Assessment

Start of research

Development
Group Leaders(First Assessment)

Start ofdevelopment

R&D
Department
Heads(Second Assessment)

Period ofconsiderationof development
for industrial
production

Equipment
design time

Product
Assessment
Committee(Third Assessment)

Safety/Environmental
Assessment

Labeling Assessment

Safety andEnvironmental
Assessment
Subcommittee(Basic Plan)

Safety andEnvironmental
Assessment
Subcommittee(Design)Pre-marketing(Pre-production start)

Safety andEnvironmental
Assessment
Subcommittee(Pre-commissioning)

Post-production
startFact Report(Environment)

Labeling
Assessment
Subcommittee■ Product and Product Labeling
Assessment
For chemicals and equipment, we apply rigorous inspections to assess their safety at all stages from research and development through the design phase to
the eventual marketing of the products. In 2002, we
implemented 18 product inspections.
All catalogues, Material Safety Data Sheets (MSDS*)
and technical documentation are closely scrutinized in
our labeling assessment to ensure that our descriptions
are free from error. In 2002, we carried out 562 labeling assessments.
■ HPV Program
We have marked out 18 of our products for entry in
the HVP Program*.
We became a leader of the calcium chloride HPV Program and formed an international consortium. In
October 2002, we submitted an HVP safety assessment report for calcium chloride to the international
conference held by the OECD* in Boston, USA. The
report was approved.
■ Waste Safety Management
In order to ensure the safety of waste while it is handled and transported, we prepare MSDS for waste anddistribute these data sheets to waste disposal services
and transport companies. We are prepared with Yellow Cards* for waste similar to those for our products
so that appropriate measures can be taken to ensure
the safety of waste in a traffic accident. All drivers are
required to carry these cards with them when transporting waste.
■ Providing Material Safety Data Sheets(MSDS)
Those who use, treat or distribute our products and/or
waste are issued with Material Safety Data Sheets(MSDS) which give explicit instructions on the correct
management of the substances at all stages of their life
cycle from use to disposal.
We prepare as many as around 400 MSDS for products and 76 for waste. The product and waste MSDS
and yellow cards are presented on our Intranet to ensure effective information-sharing on the safety of our
products and waste. The MSDS forms for the 15
products that are transported in the largest quantities
are presented on the company’s home page so thatthey can be accessed at any time and anywhere in an
emergency.

■ Promoting Safety in Distribution
Logistics and Environmental
Management［Instruction and Training of Members of the Distributive Trades on Safety Management］
We hold regular safety meetings with our distributors
to provide all necessary information to ensure safety
during the transportation of our products.
If a traffic accident occurred the Yellow Card would
give full instructions about the emergency measuresthat should be taken to ensure a fast and appropriate
response to the situation.
We have also created an emergency response organization and a communication system. An emergency action organization is in place to handle accidents anddisasters.
［Risk Assessment in Distribution Logistics］
Regarding the transportation of hazardous products,
we carry out risk assessments to make the necessary
arrangements for facilities to be used in emergencies
and to promote improvement of our customer's
plants. For products with a high danger-risk, training
sessions are conducted in simulated accident situations.

*Material Safety Data
Sheet (MSDS)
Material Safety Data Sheets
are used for entering all
information relevant to thedangers and hazards ofchemical products in orderto ensure their safe handling.
The details include thename of the chemical,
safety precautions andmeasures required in an
emergency.

*HPV ProgramHigh Production Volume(HPV) Programs areprograms in which priority
chemicals manufactured ona scale of 1,000 tons ormore in 2 countries or moreby the world's chemicalcompanies or by theindustry are assessed, withthe assessment results tobe reported by the end of
2004.

*OECD
Organization for Economic
Co-operation andDevelopment
This internationalorganization fosters
1) economic growth, 2) free
trade and 3) support fordeveloping countries
through free exchange of
opinions and information
among the leadingindustrialized countries.
Distribution training［Energy Saving in the Distribution Process］
Our transport logistics operation involves mainly maritime transport to our logistics centers and land transport from those to our customers. Maritime transport
accounts for about 3/4th of our entire transport operations. In the case of land transport, we are taking effective measures to save energy in transit by the introduction of transit control devices.

*Yellow Card
The Yellow Card is an
Emergency Instruction Card
giving details of what thedriver and/or his nearest
agents and the police should
do in an emergency so as toforestall accidents involving
chemicals and high-pressuregases in transit.

Environmental Report 2003

16

17

Site Report

All of our factories have the same powerful commitment
to the environment consistent with their local conditions.

Tokuyama Factory

Tokuyama Factory■ Overview of the Tokuyama Factory
・ Location:
1-1, Mikage-cho, Shunan-shi
Yamaguchi Prefecture
・ Site:Total land area: 1.48 million sq.m.
The Tokuyama factory consists of
the Tokuyama plant, Nanyo plantand Higashi plant.
Located on Tokuyama Bay, the factory is ideally located for maritime
product transport. The cement
plant contributes to the recycling ofwaste and by-products. The factoryhas power plants and is self-sufficient in electricity and steam.
・ Main products: cement, inorganic chemicals, organic chemicals, polycrystalline silicon,
silica, PVC.
■ Policies of the Tokuyama Factory
・On the basis of the company-wide policies on safety
and the environment, the factory determines its own
local policies.
At each plant, plant targets and goals are determined and activities are launched to work toward
the attainment of these targets.

■ Commitment to Environmental
Protection
・ Together with the 6 companies including our member companies on the site, ISO14001 certification
has been acquired and an environmental management system is in place.
・ The de-NOx system installed in 2001 in the cement
plant has been put into full-scale operation to reduce NOx emissions.
・ Efforts were made to reduce the chemical substances registered in the PRTR. In 2002, there was onlya slight increase despite an increase in productionlevels. Efforts to achieve further reduction will be
made.
・ The waste incinerator was modified to achieve asignificant reduction in the concentration of dioxin
in flue gas.
・ Most of the internally generated waste was reusedas raw material and fuel for cement. Incombustible
waste was difficult to reuse, and so far has been disposed of as landfill. Since 2002, efforts have been
made to reduce these types of incombustible waste
and recycle the product scraps as a raw material for
cement production. As a result, they were reduced
significantly in 2002 as compared with 2001. To
achieve further reduction a project has started withthe ambitious goal of reducing waste to zero.
■ Commitment to Labor Safety and Health・ To prevent work accidents, we have given our full
support to the introduction of a safety and healthmanagement system. This has been fully initiated in2003.
・ Accident prevention forums are established to prevent construction work accidents and disasters andintegrated activities with subcontracted companies
are being promoted. We run safety patrols and organize safety meetings to foster information-sharing
among all our employees and raise general safety
awareness.
・ To ensure safety, we are creating workplaces where"overlooking unsafe conditions and unsafe actions
is not allowed". The safety principle we have inmind is one that squares with the wisdom of "Lookbefore You Leap" - in other words, Think of Safety
before You Do Anything. Another of our safety
principles is "Visible Safety." In the interest of improving safety, we also engage in mutual attentiondrawing exercises, increasing the number of danger

signs and labels, voicing items by name and pointing to them to ensure completeness, KYT* and otherdanger prediction activities, the 5S activity to create
approved model workplaces, fool-proofing activities, safety instruction and training, and safety andenvironmental inspections and assessments.
・ In December 2002 we attained the Ministry of
Health, Labor and Welfare's first-grade accidentfree operation record (5.40 million hours with noaccident).
■ Commitment to Accident Prevention
・We have established self-defense fire brigade organizations at our complexes and carry out yearly combined accident prevention drills assuming all sortsof accidents and disasters. In 2002, we focused on
rescuing victims of accident situations.

*KYT

Cleaning Activities around the Factory CompoundKYT is an activity forpredicting hidden dangers
and taking action. Small
circles gather to discuss thepotential danger factors thatare hidden in the workplace
or in work situations andpinpoint the events that can
trigger danger, to check
danger points anddetermine priorities in
implementation and taking
action.

Wood Volunteers

Accident Prevention Training■ Symbiosis with our Local Communities
・In the city of Shunan a Clean Network Promotion
Project has been launched with activities designed to
improve the city's environment. In 2002 our factoryjoined in this project and engaged in activities consisting of monthly cleaning activities around the factory compound.
・ We actively took part in the Wood Volunteer Activities designed to protect the region's woods, planting
young trees and trimming bushes.

・In connection with the implementation of PRTR weheld an explanatory meeting in the city of Shunan
on the topic of "Proper Handling of Chemical Substances". The purpose was to get a fuller mutual understanding with local community members of theway in which chemical companies are trying to
adopt the PRTR system. This type of meeting was
the first trial in Japan and attracted much attention
from all quarters. The explanatory meeting did
much to foster a better understanding among the
public of what the PRTR system is all about.

Regional RC Explanatory Meeting

Environmental Report 2003

18

19

Site Report

All of our factories have the same powerful commitment
to the environment consistent with their local conditions.

Tokuyama Factory

Tokuyama Factory■ Overview of the Tokuyama Factory
・ Location:
1-1, Mikage-cho, Shunan-shi
Yamaguchi Prefecture
・ Site:Total land area: 1.48 million sq.m.
The Tokuyama factory consists of
the Tokuyama plant, Nanyo plantand Higashi plant.
Located on Tokuyama Bay, the factory is ideally located for maritime
product transport. The cement
plant contributes to the recycling ofwaste and by-products. The factoryhas power plants and is self-sufficient in electricity and steam.
・ Main products: cement, inorganic chemicals, organic chemicals, polycrystalline silicon,
silica, PVC.
■ Policies of the Tokuyama Factory
・On the basis of the company-wide policies on safety
and the environment, the factory determines its own
local policies.
At each plant, plant targets and goals are determined and activities are launched to work toward
the attainment of these targets.

■ Commitment to Environmental
Protection
・ Together with the 6 companies including our member companies on the site, ISO14001 certification
has been acquired and an environmental management system is in place.
・ The de-NOx system installed in 2001 in the cement
plant has been put into full-scale operation to reduce NOx emissions.
・ Efforts were made to reduce the chemical substances registered in the PRTR. In 2002, there was onlya slight increase despite an increase in productionlevels. Efforts to achieve further reduction will be
made.
・ The waste incinerator was modified to achieve asignificant reduction in the concentration of dioxin
in flue gas.
・ Most of the internally generated waste was reusedas raw material and fuel for cement. Incombustible
waste was difficult to reuse, and so far has been disposed of as landfill. Since 2002, efforts have been
made to reduce these types of incombustible waste
and recycle the product scraps as a raw material for
cement production. As a result, they were reduced
significantly in 2002 as compared with 2001. To
achieve further reduction a project has started withthe ambitious goal of reducing waste to zero.
■ Commitment to Labor Safety and Health・ To prevent work accidents, we have given our full
support to the introduction of a safety and healthmanagement system. This has been fully initiated in2003.
・ Accident prevention forums are established to prevent construction work accidents and disasters andintegrated activities with subcontracted companies
are being promoted. We run safety patrols and organize safety meetings to foster information-sharing
among all our employees and raise general safety
awareness.
・ To ensure safety, we are creating workplaces where"overlooking unsafe conditions and unsafe actions
is not allowed". The safety principle we have inmind is one that squares with the wisdom of "Lookbefore You Leap" - in other words, Think of Safety
before You Do Anything. Another of our safety
principles is "Visible Safety." In the interest of improving safety, we also engage in mutual attentiondrawing exercises, increasing the number of danger

signs and labels, voicing items by name and pointing to them to ensure completeness, KYT* and otherdanger prediction activities, the 5S activity to create
approved model workplaces, fool-proofing activities, safety instruction and training, and safety andenvironmental inspections and assessments.
・ In December 2002 we attained the Ministry of
Health, Labor and Welfare's first-grade accidentfree operation record (5.40 million hours with noaccident).
■ Commitment to Accident Prevention
・We have established self-defense fire brigade organizations at our complexes and carry out yearly combined accident prevention drills assuming all sortsof accidents and disasters. In 2002, we focused on
rescuing victims of accident situations.

*KYT

Cleaning Activities around the Factory CompoundKYT is an activity forpredicting hidden dangers
and taking action. Small
circles gather to discuss thepotential danger factors thatare hidden in the workplace
or in work situations andpinpoint the events that can
trigger danger, to check
danger points anddetermine priorities in
implementation and taking
action.

Wood Volunteers

Accident Prevention Training■ Symbiosis with our Local Communities
・In the city of Shunan a Clean Network Promotion
Project has been launched with activities designed to
improve the city's environment. In 2002 our factoryjoined in this project and engaged in activities consisting of monthly cleaning activities around the factory compound.
・ We actively took part in the Wood Volunteer Activities designed to protect the region's woods, planting
young trees and trimming bushes.

・In connection with the implementation of PRTR weheld an explanatory meeting in the city of Shunan
on the topic of "Proper Handling of Chemical Substances". The purpose was to get a fuller mutual understanding with local community members of theway in which chemical companies are trying to
adopt the PRTR system. This type of meeting was
the first trial in Japan and attracted much attention
from all quarters. The explanatory meeting did
much to foster a better understanding among the
public of what the PRTR system is all about.

Regional RC Explanatory Meeting

Environmental Report 2003

18

19

Track Record of Our Activities and Group Company Profile

Site Report

We are determined to move forward toward therealization of a sustainable society.

Kashima Factory■ Overview of the Kashima Factory
・ Location:
26 Sunayama, Hasaki-machi,
Kashima, Ibaraki Prefecture
・ Site:Land area: 100,000 sq.m.
Located at Hasaki Industrial Parkin Kashima Industrial Zone.
Two member companies within thecompound:□Tokuyama Dental Corporation□A&T Corporation
・ Main products: bulk pharmaceuticals, optical materials, electronic materials and finechemical products such as detergents (Tokuyama Corporation);
dental materials (Tokuyama Dental
Corporation); medical diagnostic
drugs (A&T Corporation).

■ Symbiosis with our Local Communities
・ The Kashima factory participates in local environmental protection activities. In 2002, the factory
took part in the regional Kashima dialogue on Responsible Care and announced its RC activities.
・ We attracted much acclaim for our positive commitment to the environment and were awarded theIbaraki Prefecture distinction of being an "Earthfriendly Company."■ Commitment of our Member Companies
towards the Environment
Based on the RC Administration Pact signed by
us with member companies of the Tokuyama Group,
efforts are made to diffuse RC activities by implementing safety and environmental inspection each year.
Among group members, the number of those acquiring ISO9001 and ISO14001 certification is steadily
growing.
Since 2002, RC activity data, including members' environmental load data and safety management indices,
have been collected and statistically evaluated to obtain a fuller picture of the RC activities within the Tokuyama Group.

■ Progress Status of our Member Companies inacquisition of ISO9001/ISO14001 Certification
ISO
9001

ISO
14001

Sun・Tox Co., Ltd.

○△

Shanon Co., Ltd.

○−

Tohoku Shanon Co., Ltd.

○−

Tokuyama Logistics Corporation○−

A&T Corporation○△

Figaro Engineering Inc.

○−

Tokuyama Dental Corporation○△

Tokuyama Ready Mixed Concrete Co., Ltd.

○−

Tokuyama Siltech Co., Ltd.

○△Sun Arrow Chemical Co., Ltd.

−△

Taiwan Tokuyama Corporation○○

Tokuyama Electronic Chemicals Pte. Ltd.

○○

Pornpat Chemicals Co., Ltd.

○○Group Companies○＝ Certified△＝ Certified as a Tokuyama site

■ Historical Overview of Tokuyama's RC Activities■ Commitment to Environmental
Protection
・ The factory operates ISO14001 Environmental
Management Systems in an effort to reduce environmental impact.
・ The companies are committed to a reduction inemission levels of substances subject to registrationin the PRTR and to a reduction in the amount ofwaste disposed of as landfill.
・ In an effort to prevent soil pollution in the factory,
annual studies on soil pollution are made by analyzing the water quality of an observation well. The
results have demonstrated that no soil pollution has
occurred.
・ In 2002, the small-sized waste incinerator was
taken out of operation as a measure against dioxin
emissions.

"Earth-Friendly Company" Distinction Award Ceremony■ Commitment to Safety and Health・ The Factory stages a range of planned activities , including danger prediction drills, seminar and lecture
events, acquisition of official qualifications andstudy sessions in which the Safety and Health Committee assumes a key role. The factory has had noaccident or disaster in the whole 18 years of its existence.
・ In 2002, the Safety and Health Management System was introduced and went into operation.
・ In readiness for accidents and disasters, annual
training including general disaster response drills,
fire extinguisher training and water discharge training were carried out.

07/1991

Global Environmental Issues Committee established

03/1993

RC Administration Committee established — Voluntary plan for overall management of environment,
safety and quality established.

04/1994

ISO9002 certification acquired for high-purity isopropyl alcohol

06/1994

Arrangements for quality assurance system, including product safety and labeling assessment

12/1994

Internal Export Control Committee established

04/1995

Participation in Japan RC Council

02/1997

First edition of RC Report issued

05/1997

ISO9001 certification acquired for cement

04/1998

ISO9001 certification acquired for dental materials

12/1998

ISO9001 and ISO9002 certification acquired for aluminum nitride, precipitated silica, etc.
— Tokuyama Factory acquired ISO14001 certification.

01/1999

Kashima Factory acquired ISO14001 certification.

06/1999

ISO9002 certification acquired for inorganic chemicals, polypropylene, film, etc.

12/1999

Ecological Management Initiative Dept. inaugurated. ISO9002 certification acquired for polycrystalline
silicon, organic solvents, etc.

08/2000

Recycling and Environmental Business Dept. inaugurated

04/2001

Yamaguchi Eco-Tech. Co., Ltd. established

04/2002

Vinylchloride, polyvinylchloride - Acquisition of ISO9002 certification

06/2002

Kashima Factory awarded the "Earth-Friendly Company" Distinction by Ibaraki Prefecture

03/2003

Awarded the "Resource Recycling Technology System Award" by the Head of the Industrial Science andTechnology Policy and Environment Bureau

Our homepage has a Questionnaire Website giving you an opportunity to voice your opinions concerning this report.
http:// www.tokuyama.co.jp/care/enquette.html
Kashima Factory

Environmental Report 2003

20

21

Track Record of Our Activities and Group Company Profile

Site Report

We are determined to move forward toward therealization of a sustainable society.

Kashima Factory■ Overview of the Kashima Factory
・ Location:
26 Sunayama, Hasaki-machi,
Kashima, Ibaraki Prefecture
・ Site:Land area: 100,000 sq.m.
Located at Hasaki Industrial Parkin Kashima Industrial Zone.
Two member companies within thecompound:□Tokuyama Dental Corporation□A&T Corporation
・ Main products: bulk pharmaceuticals, optical materials, electronic materials and finechemical products such as detergents (Tokuyama Corporation);
dental materials (Tokuyama Dental
Corporation); medical diagnostic
drugs (A&T Corporation).

■ Symbiosis with our Local Communities
・ The Kashima factory participates in local environmental protection activities. In 2002, the factory
took part in the regional Kashima dialogue on Responsible Care and announced its RC activities.
・ We attracted much acclaim for our positive commitment to the environment and were awarded theIbaraki Prefecture distinction of being an "Earthfriendly Company."■ Commitment of our Member Companies
towards the Environment
Based on the RC Administration Pact signed by
us with member companies of the Tokuyama Group,
efforts are made to diffuse RC activities by implementing safety and environmental inspection each year.
Among group members, the number of those acquiring ISO9001 and ISO14001 certification is steadily
growing.
Since 2002, RC activity data, including members' environmental load data and safety management indices,
have been collected and statistically evaluated to obtain a fuller picture of the RC activities within the Tokuyama Group.

■ Progress Status of our Member Companies inacquisition of ISO9001/ISO14001 Certification
ISO
9001

ISO
14001

Sun・Tox Co., Ltd.

○△

Shanon Co., Ltd.

○−

Tohoku Shanon Co., Ltd.

○−

Tokuyama Logistics Corporation○−

A&T Corporation○△

Figaro Engineering Inc.

○−

Tokuyama Dental Corporation○△

Tokuyama Ready Mixed Concrete Co., Ltd.

○−

Tokuyama Siltech Co., Ltd.

○△Sun Arrow Chemical Co., Ltd.

−△

Taiwan Tokuyama Corporation○○

Tokuyama Electronic Chemicals Pte. Ltd.

○○

Pornpat Chemicals Co., Ltd.

○○Group Companies○＝ Certified△＝ Certified as a Tokuyama site

■ Historical Overview of Tokuyama's RC Activities■ Commitment to Environmental
Protection
・ The factory operates ISO14001 Environmental
Management Systems in an effort to reduce environmental impact.
・ The companies are committed to a reduction inemission levels of substances subject to registrationin the PRTR and to a reduction in the amount ofwaste disposed of as landfill.
・ In an effort to prevent soil pollution in the factory,
annual studies on soil pollution are made by analyzing the water quality of an observation well. The
results have demonstrated that no soil pollution has
occurred.
・ In 2002, the small-sized waste incinerator was
taken out of operation as a measure against dioxin
emissions.

"Earth-Friendly Company" Distinction Award Ceremony■ Commitment to Safety and Health・ The Factory stages a range of planned activities , including danger prediction drills, seminar and lecture
events, acquisition of official qualifications andstudy sessions in which the Safety and Health Committee assumes a key role. The factory has had noaccident or disaster in the whole 18 years of its existence.
・ In 2002, the Safety and Health Management System was introduced and went into operation.
・ In readiness for accidents and disasters, annual
training including general disaster response drills,
fire extinguisher training and water discharge training were carried out.

07/1991

Global Environmental Issues Committee established

03/1993

RC Administration Committee established — Voluntary plan for overall management of environment,
safety and quality established.

04/1994

ISO9002 certification acquired for high-purity isopropyl alcohol

06/1994

Arrangements for quality assurance system, including product safety and labeling assessment

12/1994

Internal Export Control Committee established

04/1995

Participation in Japan RC Council

02/1997

First edition of RC Report issued

05/1997

ISO9001 certification acquired for cement

04/1998

ISO9001 certification acquired for dental materials

12/1998

ISO9001 and ISO9002 certification acquired for aluminum nitride, precipitated silica, etc.
— Tokuyama Factory acquired ISO14001 certification.

01/1999

Kashima Factory acquired ISO14001 certification.

06/1999

ISO9002 certification acquired for inorganic chemicals, polypropylene, film, etc.

12/1999

Ecological Management Initiative Dept. inaugurated. ISO9002 certification acquired for polycrystalline
silicon, organic solvents, etc.

08/2000

Recycling and Environmental Business Dept. inaugurated

04/2001

Yamaguchi Eco-Tech. Co., Ltd. established

04/2002

Vinylchloride, polyvinylchloride - Acquisition of ISO9002 certification

06/2002

Kashima Factory awarded the "Earth-Friendly Company" Distinction by Ibaraki Prefecture

03/2003

Awarded the "Resource Recycling Technology System Award" by the Head of the Industrial Science andTechnology Policy and Environment Bureau

Our homepage has a Questionnaire Website giving you an opportunity to voice your opinions concerning this report.
http:// www.tokuyama.co.jp/care/enquette.html
Kashima Factory

Environmental Report 2003

20

21

Tokuyama Corporation

Environmental Report
A Statement of Our Commitment
to the Environment and Safety and Health●For all inquiries, please do not hesitate to contact us at:

Responsible Care
Responsible Care & Eco-Management Dept.
Shibuya Konno Bldg., 3-1, Shibuya 3-chome
Shibuya-ku, Tokyo 150-8383, Japan
TEL : +81-3-3499-8478
FAX : +81-3-3499-8961
URL : http//www.tokuyama.co.jp
e-mail : rc-toukatsu@tokuyama.co.jp
Responsible Care (RC) is a self-management activity to
implement and improve measures concerning theenvironment and safety and health.
It is an activity of a corporation producing or handlingchemical substances that pledges in its management
policy to protect the environment and to ensure safety
and health throughout the entire chemical substance life
cycle, from development, manufacturing, distribution, use
and final consumption to disposal on the basis of theprinciple of self-determination and self-responsibility.

This Environmental Reports uses paper made100% from old paper.

The printing ink used for printing
this Environmental Report uses
soybean oil in and endeavor to reduce an environmental impact.

GP.03101000