Tokuyama Corporation
CSR Report 2012

Corporate Social Responsibility Division
Kasumigaseki Common Gate West Tower
2-1, Kasumigaseki 3-chome, Chiyoda-ku, Tokyo 100-8983, Japan
Tel: +81-3-6205-4835 Fax: +81-3-6205-4882
www.tokuyama.co.jp

Cover Story
The leaves on the cover symbolize people, society and the environment. A combination of orange and green conveys Tokuyama’s vibrant, active and dynamic corporate
image. Also, the design on the cover depicts the fusion of two colors, with the green
and the orange on the page blending with each other. This represents the positive
stance of the Tokuyama Group toward pursuing corporate growth and achieving its
Centennial Vision.

Date of issue: February 2013
Next issue: Scheduled for October 2013

In Harmony with People,
Society and the Environment
CSR Report 2012

Contents
Toward Achieving theCentennial Vision

Growing
Toward Achieving the Centennial Vision

Strengthen Strategically Growing Businesses(See page 16)
Upholding a basic strategy, “Strengthen Strategically Growing Businesses” under its Centennial Vision,
Tokuyama is currently constructing a new Malaysia Factory for the manufacture of polycrystalline silicon forCentennial Vision
Centennial
VisionFebruary 16, 2018 will mark Tokuyama’s centennial founding anniversary. The basic
strategies under the Centennial Vision call for a selection and concentration approach

Human Resource-based Management
Promotion of CSR Activities

2 The Tokuyama Group at a Glance
4 Top Message
6 Tokuyama News File

8 Tokuyama’s CSR
16 Special Featuressolar cells. This new factory will serve as the second flagship manufacturing base for this product following its

16 Growing

Tokuyama Factory. Moreover, Tokuyama aims to expand the capacity of both factories to keep improving its

Tokuyama Aggressively

world-class supply capability.

Expanding Growth Businesses

24 Creating

to strengthen strategically growing businesses and to bolster international competi-Strengthen
Growing
StrategicallyBusinesses

1 Accelerating Our Growth Strategies

tiveness. We will concentrate our energies on promoting human resource-based

Tokuyama Creating New

management and CSR activities, as these activities provide the foundations of ourTechnologies and Businesses

basic strategies.

30 Integrating

An Ideal Tokuyama Group“A prominent manufacturer that is responsive to society and helps create a better
future through the vitality of its human resources and the creativity of chemistry”

Accelerating Our Growth Strategies
Tokuyama is promoting the three growth strategies under its management slogan,“Venture Spirit & Innovation,”
toward achieving its Centennial Vision.

Creating
Create New Businesses (See page 24)
Tokuyama creates environmental technologies and products with the emphasis on social contribution andreducing environmental impact, even from the development stage. Focusing on three growth fields of “information and electronics,” “environment and energy” and “life and healthcare,” Tokuyama is leveraging the inorganic

Three
2GrowthStrategies

Tokuyama Bolstering
International Competitiveness42 Promoting Environmental
Management
42 Tokuyama’s Environmental
Management
43 Environmental Accounting

chemical and crystal technologies that it has accumulated over the years to accelerate product development. As
the latest accomplishment of its R&D activities, Tokuyama is proceeding with the commercialization of sapphire
single crystal wafers for LED chip manufacturing.

44 Commitment to the Prevention ofGrobal Warming
45 Reduction of Air and Water Pollutants
47 Reducing Waste and Promoting
Recycling

Editorial Policy• The CSR Report 2012 has been compiled with the aim of bringing Tokuyama’s activities—directed at meeting its corporate social responsibility in fiscal 2011—to theattention of all concerned, including shareholders, investors, trading partners, employees and their families, people living near its production sites and other people in general.
• As with the 2011 edition, Tokuyama asked Ms. Eriko Nashioka of the Institute for Environmental Management Accounting to offer independent comments on this report. The
purpose of the independent comments is to continuously seek feedback and ratings that help the Company to fulfill its social responsibility. Details of Ms. Nashioka’scomments are available on page 54.
• This CSR report has been prepared based on the Environmental Reporting Guidelines (Fiscal 2007 edition) published by the Ministry of the Environment.
• This CSR report is also available via Tokuyama’s website at:www.tokuyama.co.jp/eng/csr/report/

Integrating
Bolster International Competitiveness(See page 30)

Scope of the Report

The sources of competitiveness of our Tokuyama Factory are the unparalleled energy efficiency and superior

Period:All performance data is for fiscal 2011, from April 1, 2011 to March 31, 2012. Certain activities undertaken after April 1, 2012 are included.

technologies that we have nurtured at the frontlines of manufacturing operations. By refining its integrated

Companies:

Tokuyama Corporation (Environmental performance data is for the Tokuyama Factory and the Kashima Factory.); certain environmental performance data

manufacturing operations, Tokuyama is working to establish a highly profitable business structure. At the same

includes total values for 11 major production companies within the Tokuyama Group (see page 50).

time, by developing the Tokuyama Factory into its “Mother Factory,” the Company will continue to reinforce its

Activities in Japan (including some overseas Group companies)

international competitiveness. Furthermore, we aim to make the Tokuyama Factory a manufacturing base that

Region:Date of issue: February 28, 2013 (The next edition will be issued in October 2013)48 Site Report
48 Tokuyama Factory
49 Kashima Factory
50 Activities of Group Companies

52 Code of Conduct andGuidelines for Business
Activities
54 Third-Party Comments
55 In Response to Third-Party Comments

coexists and grows with local communities while establishing close communication with our stakeholders.
1The Tokuyama Group at a Glance(as of March 31, 2012)

Company Outline

Tokuyama’s Global Network

Company name:

Tokuyama Corporation

Established:

February 16, 1918

Capital:¥53,458 million

Registered address:

1-1, Mikage-cho, Shunan-shi, Yamaguchi, Japan

Head office:Kasumigaseki Common Gate West Tower, 3-2-1,
Kasumigaseki, Chiyoda-ku, Tokyo, Japan

Branches and offices:

Sendai, Nagoya, Osaka, Takamatsu,
Hiroshima and Fukuoka

Production andresearch sites:

Tokuyama Factory, Kashima Factory and
Tsukuba Research Laboratory

Number of consolidated
subsidiaries:

48

Number of equity-method
companies:

8

China
• Tokuyama Trading (Shanghai) Co., Ltd.
• Shanghai Tokuyama Plastics Co., Ltd.
Manufacture and sale of microporous films• Tianjin Tokuyama Plastics Co., Ltd.*2
Manufacture and sale of microporous films• Tianjin Figaro Electronic Co., Ltd.
Manufacture and sale of gas sensors and applied products• Tokuyama Chemicals (Zhejiang) Co., Ltd.

Sales Breakdown by Segment (Fiscal 2011)

Manufacture and sale of fumed silica

OthersTaiwan¥40.3billion• Taiwan Tokuyama Corporation(12.7%)¥43.5billion(13.8%)

Total¥282.3billion*1

CementGermany¥85.2billion(26.9%)
Specialty Products• Tokuyama Europe GmbHSouth Korea• Tokuyama Dental Deutschland GmbH

• Tokuyama Korea Co., Ltd.

Sale of dental materials and equipment• Hantok Chemicals Co., Ltd.

¥79.0billion¥68.4 billion(21.6%)• Tokuyama Dental Italy S.r.l.

Malaysia
Total¥282.3Asia• Tokuyama Asia Pacific Pte. Ltd.

Sale of dental materials and equipment¥13.5billion(4.8%)

Sale of dental materials and equipment

Manufacture of high-purity chemicals forelectronics manufacturing

Italy

Other

Sale of gas sensors and applied products• Tokuyama Dental America Inc.

• Tokuyama Electronic Chemicals Pte. Ltd.

Design, manufacture and sale of electrodialyzers

Sales by Region (Fiscal 2011)• Figaro USA, Inc.

Singapore• Eurodia Industrie S.A.

*1 Segment’s figures include inter-segment sales.

• Tokuyama America Inc.

Manufacture and sale of photoresist developer

France(25.0%)USA

Manufacture and sale of high-purity chemicals forelectronics manufacturing

Chemicals

Advanced Componentsbillion• Tokuyama Malaysia Sdn. Bhd.

Japan

¥227.0 billion

Manufacture and sale of polycrystalline silicon*2 Production is scheduled to begin in December 2012 (See p6).

(80.4%)

41.8billion(14.8%)Net Sales

Operating Income

Number of Employees(¥ billion)(¥ billion)(persons)

350
307.4

300

300.9

289.7

35.3

282.3

273.1

30

250
200

6,000

40

28.5

4,000
206.1

202.6

187.9

197.7

185.0

22.3 22.7
20.1

20
150
14.8

100

16.4

3,000

15.9
13.7

2,000

2,127

10

1,000

07

08

Non-consolidated

09

Consolidated

10

11

(FY)

2,175

661

581

828

709

0

0

0

2,195

2,172

2,161

10.3

50

2

5,506

5,493

5,444

5,295

5,057

5,000

07

08

Non-consolidated

09

Consolidated

10

11

(FY)

07

08

Non-consolidated

09

Consolidated

10

11

(FY)

Overseas Employees

3Top Message

improving the competitiveness of our basic material businesses.

Prefecture, we put this awareness into concrete action, paying the utmost
attention to safety.

The Foundation of the Centennial Vision’s BasicIn Shunan, the city where Tokuyama was founded, we have been pur-

Strategies—Human Resources and CSRsuing a number of initiatives with the aim of creating a factory that inter-

As for human resource-based management, we believe that it is essential

acts proactively with local communities. As part of the Responsible Carefor us to offer our employees a vibrant and lively working environment that(RC) activities we have been carrying out for over 16 years, we promoteinspires devotion to duty. Aiming to enhance on-site capabilities, we will

information disclosure by proactively inviting people from local communi-

further elevate the skills of our staff on the manufacturing frontlines. Of

ties to meetings and on factory tours.

course, we also recognize that nurturing globally capable human resources

We are also promoting a recycling approach that is responsive to theis an urgent issue. We believe Tokuyama’s corporate culture will be positively

needs of society. For example, waste and by-products generated inside

affected by the return to Japan of those who are now participating in the

the Company or accepted from outside are recycled into raw materials andMalaysia Project, where they have gone to gain broader experience infuel for cement production, helping to maintain the zero-emission rate at

global business. At the same time, we expect that they will disseminate thehigh levels.

philosophy and traditions of Tokuyama in Malaysia and elsewhere overseas.

Guided by the “safety first” basic policy that underlies our operations,Without young and vigorous employees and a vibrant workplace,

we are thoroughly improving manufacturing processes and promoting

Tokuyama cannot expect to achieve sustainable growth into the future.

energy conservation as we work to provide products with high quality and

Because of that, we encourage employees to make suggestions proactively

high efficiency.

and to take action to realize their ideas.
As for the promotion of Corporate Social Responsibility (CSR) activities,

Through such initiatives, we strive to gain the confidence of society
while continuing to grow in scale and enhance quality.

we recognize employees as important stakeholders. In line with this recog-

Under our new Three-Year

Stepping up Growth Strategies to Realize Our

nition, we are facilitating the setting of career goals to ensure that eachCommunication with Stakeholders Is Key to CSR

Centennial Visionemployee is motivated in their work, while promoting their mental andActivities

Management Plan, we will pursue

As 2018 approaches, the year in which Tokuyama Corporation will markphysical health, and improving work-life balance. By doing so, we are seek-

Strengthening our initiatives to take on global challenges, including thethe centennial anniversary of its founding, the Tokuyama Group is evolving

ing to create a vibrant workplace that enables them to practice “Venture

protection of human rights and environment preservation, the Tokuyama

reforms as we get ready to meet

into something new. The underlying principle of Tokuyama’s Centennial

Spirit & Innovation.”Group decided to publically announce the “Tokuyama Group Guidelines for

Vision is “Venture Spirit & Innovation.” This principle has grown out ofglobal competition.

Business Activities,” which were drawn up in line with its basic philosophy

our belief that no corporation can survive in the global market unless it

Creating a Highly Transparent Management Structure

continues to change.

to Earn the Trust of Stakeholders Worldwide

On the other hand, we have implemented various measures to prevent

Fiscal 2012, ending March 31, 2013, is the first year of the Three-Year

When pursuing globalization, we believe that it is indispensible to earn thethe recurrence of the mislabeling of fireproof specifications on plastic

Management Plan we have newly launched. Under this plan, we are striving

trust of stakeholders worldwide, including shareholders, investors andwindow sashes, since we announced measures designed to prevent suchto reform our product range to meet not only domestic demand but also

customers. In polycrystalline silicon operations, specifically, we must build

mislabeling in March 2009. To regain the trust of our customers and otherforeign demand. Moreover, within the Group we are raising awareness ofstrong relationships of trust with the people and the government of

stakeholders in the Tokuyama Group, we have rallied all the strength of the

global competition and accelerating efforts to ensure an optimal structure

Malaysia, where our operations are growing. Tokuyama undertook man-Group, stepping up efforts to complete repairs of such sashes.

and systems that are capable of excelling on the global stage.

agement structure reforms in 2011 to enhance the transparency of man-Taking the matter seriously and looking ahead, we will continue to ask

During fiscal 2011, Tokuyama struggled amid a series of adversities

agement. We appointed an outside director to reinforce the supervisory

ourselves the same question, “What is our social responsibility?” Working

that threatened the success of its growth strategy, namely, the Great East

function of the Company’s Board of Directors and introduced an executive

diligently and constantly to find the right answers to this question, we will

Japan Earthquake, the flooding in Thailand and the European debt crisis.

officer system to clearly separate the supervisory and business execution

consistently promote CSR-oriented global corporate management.

Despite the circumstances, we kicked off the expansion of polycrystalline

functions.

silicon production facilities at the Tokuyama Factory and in Malaysia. We
also established Tianjin Tokuyama Plastics Co., Ltd. in China. Moreover, we

Looking ahead, we will continue to pursue initiatives to strengthen

We invite readers to provide us with feedback and welcome a frankexchange of views with them in connection with this report.

corporate governance.
July 2012

initiated a verification test for sapphire single crystal wafers with the aim

4

on CSR management.

of launching a new business. These actions have persistently moved

The Tokuyama Factory Is Always on the Side of Local

Tokuyama toward the realization of its Centennial Vision. We will strive to

Communities of Shunan City

steadily implement the Malaysia Project, which focuses on polycrystalline

We believe that the highest-priority issue for us is to remain a company

silicon operations as a core strategically growing business, while continu-

that deserves the trust of local communities. With strong awareness that

Kazuhisa Kogo

ing to work toward launching new businesses as early as possible andour Tokuyama Factory is one of the largest plants in Shunan, Yamaguchi

President
5Tokuyama News File

Growing
Strengthen StrategicallyGrowing Businesses

Creating
Create New Businesses

November 2011

November 2011

August and November 2011

Groundbreaking Ceremony at Tianjin
Tokuyama Plastics Co., Ltd.

Expansion of Polycrystalline Silicon
Production Facilities

Integration of Tokyo Head Office andRelocation of Osaka Branch

To kick off the construction of a factory for the manufacture of microporous film for use in disposable diapers,
Tianjin Tokuyama Plastics Co., Ltd.—a subsidiary in
China—held a groundbreaking ceremony. Upon completion, the new factory will serve as our second Chinese
production base following Shanghai Tokuyama Plastics
Co., Ltd., which was established in 2002. Production at
Tianjin Tokuyama Plastics is scheduled to begin in
December 2012 and will yield 10 million square meters
per month. In tandem with Shanghai Tokuyama Plastics,
which produces 20 million square meters per month,
Tianjin Tokuyama Plastics aims to expand its business in
the Chinese disposable diaper market, which is expected
to keep growing by 20% or more every year.

To meet increasing demand for polycrystalline silicon, weare expanding our production facilities at the Tokuyama
Factory and Tokuyama Malaysia Sdn. Bhd. At the
Tokuyama Factory, a new plant has been under construction since November 2011 and is scheduled to begin
operations in spring 2013. Upon completion, the total
annual capacity of the Tokuyama Factory will increase
from 9,200 tonnes to 11,000 tonnes. Meanwhile,
Tokuyama Malaysia has been carrying out second-phase
plant construction since February 2012. This second plantis scheduled to begin operations in spring 2014. Oncecompleted, combined annual production capacity of thefirst and second plants will amount to 20,000 tonnes.

In August 2011, we integrated our Tokyo Head Office—which was previously divided between two locations, one in
Shibuya and the other in Shimbashi—and reopened it in
Kasumigaseki, Chiyoda-ku. In addition, we relocated the
Osaka branch in November 2011 from Kitahama, Chuo-ku, toNakanoshima, Kita-ku. Both new offices were designed withdue consideration given to the environment and with agreater emphasis on workplace safety while providing an
atmosphere conducive to communication, spurring evengreater devotion to their work among staff members.

Tianjin Tokuyama Plastics Co., Ltd.

New Offices
Tokyo Head Office: Kasumigaseki Common Gate West
Tower, 2-1, Kasumigaseki 3-chome, Chiyoda-ku, Tokyo, Japan
Osaka Branch: Nakanoshima Central Tower, 2-7,
Nakanoshima 2-chome, Kita-ku, Osaka City, Osaka, JapanThe Kasumigaseki Common Gate West Tower, whichhouses Tokuyama’s Tokyo Head Office

April 2011

October 2011

January 2012

Initiated Sales of an Inkjet Printing Plaster
Sheet “Fresco Giclee”

Verification Testing Facility for Sapphire Single
Crystal Wafers Started Operations in Akita

Exhibited at the “LED/OLED Lighting
Technology Expo”

We initiated sales of Fresco Giclee, a new-generation
inkjet printing sheet developed based on our proprietary
plaster (shikkui ) thinning technology. Although we are
currently aiming to meet demand from professional photographers with this product, we will eventually expand
sales to amateur photo enthusiasts. We are proactively
promoting “Fresco Giclee” by exhibiting it at various
trade shows.

We completed the construction of a new verification
testing facility in Misato-cho, Senboku-gun, Akita
Prefecture. The facility produces wafers for LEDs fromingots of sapphire single crystals made at the Tokuyama
Factory. Trial operations were initiated in November 2011
and sample products have been already produced andshipped from the facility (see page 24).

Tokuyama exhibited a number of products at the fourth“LED/OLED Lighting Technology Expo” held at the Tokyo
Big Sight. The Advanced Materials Sales Department presented aluminum nitride (AlN) fillers that can be used forvarious parts of LEDs, while the Corporate Development
Department exhibited sapphire single crystal wafers forLEDs. Both products attracted attention from industry
representatives.

Verification testing facility at the Corporate
Development Department (Akita)

CP+ Camera & Photo Imaging Show 2012

Integrating September 2011
Bolster International
Competitiveness

October 2011

December 2011

Adopting Palm Kernel Shell as a Biomass
Fuel for the In-House Power Plant

Autumn General Disaster Drill at the
Tokuyama Factory

Highest Ranked in Environmental Ratingsby the Development Bank of Japan

Aiming to reduce CO 2 emissions and fuel costs, we
decided to adopt Palm Kernel Shell (PKS) to fuel the
in-house power plant at the Tokuyama Factory. We
imported approximately 10,000 tonnes of PKS, evaluatedthe impact of handling PKS at the factory unloading dockand tested its combustibility when blended with coalover an extended time period. Testing proved the usefulness of the PKS material as a biomass fuel. Looking
ahead, we will proactively adopt PKS to promote thereduction of CO2 emissions.

Based on the scenario of a major disaster caused by anearthquake, a disaster drill was held at the Tokuyama
Factory. In this case, a fire in the microporous film raw
material storage facility was followed by a leakage ofprinting ink and a spill of polyethylene pellets accompanying anticipated aftershocks. Aiming to strengthen oursafety and disaster prevention capability, we practiced
and simulated disaster response procedures which beganwith an emergency call and covered all the broad phases,
including initial fire extinguishing efforts, quenching thefire using fire engines, treating injured persons and holding a press conference.

Tokuyama has been assigned the highest-level ranking in
the environmental ratings of the Development Bank ofJapan (DBJ). The aim of the rating system is to evaluatebusiness operators in terms of their initiatives for environmental management and thereby identify excellent
companies. Depending on the evaluations, favorable loan
conditions are set for qualifying companies. The DBJ
ranking was granted in light of Tokuyama’s advanced
environmental activities.

A chute for PKS

PKS: Palm Kernel Shell

6

Emergency command post (above)
In-house fire-fighting team practices fire extinguishing(below)

7

Accelerating Our CSR Initiatives
our RC activities, we have also been promoting environmental management andachieved significant reductions in unit energy consumption as well as the commer-

Tokuyama’s CSR

cialization of resource recycling utilizing our cement plant.
Recently, the Group has been accelerating the augmentation of its CSR founda-

Management That Is Responsive to Society

tions, aiming to enhance transparency and ethical standards. Moreover, we havebeen seeking to strengthen corporate governance through management structure
Tatsuo Segawa

reforms and to improve our internal control system, with a focus on compliance andDirector, Senior Managing Executive
Officerrisk management. Of course, we recognize that global CSR has become an essential
issue as we expand our overseas operations.

I recognize that the fulfillment of our Corporate Social Responsibility must involve

As 2018 approaches, the year in which Tokuyama Corporation will mark thethe cultivation of harmonious relationships with our stakeholders. More specifically,

centennial anniversary of its founding, the Tokuyama Group is evolving into some-

we must always be aware of the social and environmental impact that each phase ofthing new. The underlying principle of Tokuyama’s Centennial Vision is “Venture

our business operations exerts while maintaining complete accountability for our

Spirit & Innovation.” This principle has grown out of our belief that no corporation

impact. Based on this premise, the Tokuyama Group is seeking to contribute to thecan survive unless it continues to change. Looking ahead, we are accelerating ourcreation and development of a sustainable future through its CSR activities.

CSR activities to better respond to society’s evolving expectations.

Aiming to remain a “prominent manufacturer that is responsive to society,” formany years the Tokuyama Group has been pursuing Responsible Care (RC) activities
initially begun in the form of voluntary chemical substances management. ThroughTokuyama’s CSR
Tokuyama approaches its CSR activities in accordance with its basic policy of

have distributed a handbook containing the Tokuyama Group Code of Conduct,

engaging in management that is responsive to society. We believe that CSR activities

the Responsibility of Senior Management under the Tokuyama Group Code ofhelp us to sustainably grow our business and enable us to work with society to build

Conduct and the Tokuyama Group’s Five Conscience Clauses to every executive anda sustainable future. To increase stakeholder satisfaction, we are committed to

employee of the Group (see page 53).

Basic Philosophy of Tokuyama’s CSR-Oriented Management
Tokuyama approaches its CSR activities in accordance with a basic philosophy of continuously working with society to build a sustainable future andpromoting corporate activities that are evaluated highly by its various stakeholders, namely, shareholders, customers, employees, trading partners,
communities and society as a whole.

promoting activities that are evaluated highly by stakeholders and all members ofsociety. (See chart on the right.)

Tokuyama’s CSR

Tokuyama’s Major Stakeholders

Tokuyama has positioned the assurance of sound corporate governance andestablishing effective internal control systems as a significant part of its CSR foundations, and the promotion of compliance and risk management underpins our internal
control. Along with Responsible Care (RC) activities—an important area in the man-

Basic
Philosophy

agement of the Tokuyama Group—we are working to achieve optimally balanced
CSR foundations.
During fiscal 2011, Tokuyama focused on reinforcing compliance education,
raising employee awareness on compliance and strengthening its risk management
structure, with a newly established CSR Promotion Council spearheadingthese efforts.
Adhering to the Tokuyama Group Code of Conduct and the Tokuyama Group
Guidelines for Business Activities (see pages 52 and 53), we will continue to establish good relationships with our stakeholders and practice management that is

Tokuyama conducts customer-focused quality
assurance activities based on implementation of
its ISO 9001-compliant quality management
system. Chemical substances are comprehensively managed to ensure safety at all stages ofthe manufacturing process.

GlobalEnvironment

Customers

Tokuyama conducts environmentally friendly
management operations with an emphasis on
the environmental perspective in every aspect ofits business activities.

Basic Policy
Management thatis responsive to society
Implementation of CSR Activities
Build good relationships withvarious stakeholders
CSR Foundations

Tokuyama strives to improve theworking environment and the mental
and physical health of its employees sothat every employee can exhibit his or
her abilities and perform duties actively
and with a high level of motivation.

Communities
and Society

Tokuyama

Employees

Ensuring sound corporate governance
Establishing effective internal control system

Tokuyama is engaged in many different
activities directed at contributing tosociety. They include financial support forscientific development and technology,
activities to foster new generations andlocal volunteer activities. We are also
working on communication with local
communities by providing opportunities
for RC community dialogues.

Securing compliance
Strengthening risk management

responsive to society, thereby maintaining the Tokuyama Group’s status as a corpo-

Promoting Responsible Care activities

rate group of choice for our customers.

Tokuyama Group Code of Conduct

To ensure that compliance is promoted Groupwide in a tangible manner, we

8Tokuyama Group Guidelines for Business Activities

Tokuyama is committed to creating
relationships of trust with all trading
partners through honest business dealings.
Tokuyama also practices CSR in its
purchasing activities.

Trading
Partners

Shareholders

Tokuyama offers information in a prompt
and appropriate manner to gain theunderstanding and trust of shareholders
and investors.

9Tokuyama’s CSR

Tokuyama’s CSR Foundations: Corporate Governance andInternal Control
Basic Approach to Corporate Governanceofficer candidates before Board of Directors meetings take place.

Executive Committee

Internal Control, Risk Management and Compliance
Promotion Systems

Product Safety and Quality Assurance Committee

Tokuyama believes that corporate governance is an important foundation for maximizing its corporate value. Tokuyama also believes that it must conduct daily inspec-

Tokuyama has established the Executive Committee as an advisory body to the pres-

Promotion Systems Supported by Companywide Committees

safety and quality. In addition, the committee discusses and approves the plans andtions and take necessary steps to ensure its corporate governance systems always

ident. This committee consists of the president and the executive officers selected by

Tokuyama has established the Risk Management and Compliance Committee underresults of our product safety and quality management activities.

function appropriately.

the president. The committee meets twice a month to make decisions regarding

the CSR Promotion Council. Also, under the CSR Promotion Council, we have estab-This committee deliberates and makes decisions on our policies regarding productbusiness operations in a flexible manner.

lished the Financial Reporting Committee, Pricing Committee, Export Control

Promotion of Risk Managementwith corporate ethics, laws and regulations as a means of enhancing its corporate

Strategy Committee

Committee, Information Security Committee, Environmental Measures Committee,

The Group has been continuously improving its risk management systems, including

value. Furthermore, we believe that we can gain the trust of stakeholders—including

The Strategy Committee is an advisory body to the president and consists of the

Safety Measures Committee, and Product Safety and Quality Assurance Committee.

rules and guidelines for managing risks that may result in loss or damage. To further

shareholders, customers, employees, trading partners and local communities—bypresident and the executive officers selected by the president. This committee meets

These seven committees handle Companywide (cross-divisional) issues, particularly

promote risk management, the Risk Management Promotion Subcommittee is posi-

accurately understanding our social responsibility and pursuing management that isonce a month to discuss the implementation and plans for such important mattersthose deemed important from the perspective of risk management and compliance,tioned under the Risk Management and Compliance Committee. At this

responsive to society.

as the launch, withdrawal and discontinuation of businesses and the implementa-

in the areas coinciding with each committee’s mandate.

Subcommittee, we identify significant Groupwide risk factors specific to the

At the same time, Tokuyama is working consistently to strengthen its compliancetion of large-scale infrastructure investments. Through these discussions, the com-

Corporate Governance Structure

mittee helps the president determine the Company’s policies for business operations

Board of Directors and Executive Officer System

relating to those important matters.

Tokuyama’s Board of Directors meets at least once a month to deliberate and make

CSR Promotion Council

resolutions on important matters regarding business operations while supervising

Our CSR Promotion Council sets policies on CSR and lays out the goals of our CSR

business operations. As of June 26, 2012, the Board of Directors consisted of eightactivities, facilitating the execution and attainment of all such activities and goals.

directors. To reinforce the supervisory function of the Board of Directors, the

The Council focuses on the strengthening of corporate governance and improve-

Company has appointed one outside director.

ment of internal control systems, which together are the foundations of CSR. It also

CSR Promotion Structure

Tokuyama Group through discussions with related divisions and departments. Afterevaluating the gravity of each factor and considering possible countermeasures, we

CSR Promotion Council

set targets for risk management and assess the Group’s current status to clarify the

Risk Management and Compliance Committee

issues which need to be addressed. Of these, we select the most pressing issues to

Each member of
the CSR Promotion
Council Secretariat is
assigned as a memberof a committee ora member ofthe secretariat ofa committee.

Seven committees handling Companywide(cross-divisional) issues, particularly thosedeemed important from the perspectiveof risk management and compliance
Financial Reporting Committee

address with priority. In fiscal 2012, the Group plans to further examine priority
issues and determine possible countermeasures.

Whistle-blowing System (Helpline System)

Tokuyama introduced an executive officer system in April 2011 with the aim of

makes other important determinations on matters regarding internal control. The

separating the supervisory and executive functions for business operations. As ofCouncil is chaired by the president and attended by the members of the Board ofJune 26, 2012, the Company had 23 executive officers. With the Board of Directors

Directors and the Executive Committee.

delegating authority for business operations to executive officers and supervising

Risk Management and Compliance Committee

these operations, the Company has established a management structure that stresses

Tokuyama’s Risk Management and Compliance Committee—chaired by the director

clear accountability and efficient decision making and is capable of responding tosupervising the Corporate Social Responsibility Division—operates under the CSRchanges in operating conditions flexibly. In addition, the term of office of directors is

Promotion Council. The Committee takes the initiative in promoting risk manage-

set to one year to ensure clear accountability and management capability toment and compliance, which are positioned as central to the development of effec-

Financial Reporting Committee

promptly adjust to changes in the Company’s operating environment.

tive internal control systems.

This committee has been formed to ensure the reliability of Tokuyama’s financial

Board of Auditors

Helpline Committee

reporting. The committee manages the processes of preparing financial reports

The Company’s Board of Auditors consists of four auditors, two of whom are exter-

The Helpline Committee is responsible for the administration of Tokuyama’s

following end-of-period closing procedures. It consists of members selected from thenally appointed. The Board of Auditors holds meetings to report, discuss and makewhistle-blowing system, which has been established for the purpose of enabling theManagement Support Center, which is responsible for end-of-period closing proce-

resolutions on important matters. Also, auditors frequently attend Board of Directors

internal reporting of legally questionable actions and behaviors by Group executives

dures, and other related departments.

meetings and various other key meetings to oversee the execution of duties by

and employees.

Pricing Committee

directors through discussions and other activities.

Departments Responsible for Internal Auditing

This committee has been established with the aim of ensuring the fair pricing of

Human Resources Committee

Tokuyama has established the Auditing Department and the RC Management

Tokuyama’s products and services. The committee deliberates on and approves the

The Human Resources Committee consists of the representative directors and an

Department, which are responsible for internal auditing. These departments perform

revision to selling prices of the Company’s products and services.

outside director. This committee holds discussions on such matters as the remunera-internal audits of individual divisions and departments of the Company as well as ofExport Control Committeetion for directors and executive officers and the selection of director and executive

Group companies.

This committee has been established to ensure that Tokuyama appropriately manag-

Youji Miyamoto

es its export products to help maintain international peace and security. Also, theGeneral Manager, Foreign Trade Control Departmentcommittee works to prevent the Company from violating laws and regulations relat-

Tokuyama has obtained a “Bulk License” from theing to export and other types of transactions.

Minister of Economy, Trade and Industry. Under

Information Security Committee

this license, Tokuyama is able to export certain

This committee has been launched with the mission of maintaining the security oftypes of products and technologies that are sub-Corporate Governance Structure
Shareholders’ Meeting
Appoint/dismiss

ReportAppoint/dismiss

Board of Directors

Appoint/dismiss

Accounting Auditors

Whistle-blowing System

Executive Committee
Strategy Committee

Audit
Business
Operations

Auditors

Decide/supervise

President

Collaborate

Helpline
Audit

Auditing Dept.
RC Management Dept.
Internal audit

Helpline Committee

Risk Management andCompliance Committee
Seven Committees(see the chart on page 11)

Instruct/educate/raise awarenessBusiness Divisions, Back-Office Divisions, Research Laboratories, Factories and Group Companies

10

assets. The committee makes decisions about the Company’s basic policies on overallawareness of information security among Group executives and employees. It also

CSR Promotion Council

Tokuyama has launched a helpline system. Through this system, employees andother persons are allowed to anonymously report or seek consultations regarding
compliance violations, including possible violations, within the Tokuyama Group. The
system has been designed to prevent any disadvantageous treatment of persons
who have made reports or sought consultations.

undertakes activities to promote the protection of private information.

ReportReport/consult

Helpline Contacts
Instruct

Report (Anonymous) Report(Anonymous)

Helpline Committee

Board of Directors

Helpline Users

matters relating to information security while engaging in activities to increase the

Audit

Departments Responsible
for Internal Auditing

The CSR Promotion Council
Secretariat members
perform their duties as
Information Security Committee
members or secretariat
Environmental Measures Committee members in theirrespective committees
and provide important
Safety Measures Committee
information to the CSR
Product Safety and Quality Assurance Committee Promotion Council.
Export Control Committee

the Tokuyama Group’s information assets and promoting the active use of these

Board of Auditors
Human Resources
Committee

Pricing Committee

Instruct

Establishment of Foreign Trade Control Department
To Enhance Ethical Standards on Export

ject to the export restrictions set forth in theForeign Exchange and Foreign Trade Control Act without obtaining specific,
item-by-item government approval.
The law requires the implementation and enhancement of compliance

Environmental Measures Committee

programs to maintain the license. Therefore, the Foreign Trade Control

This committee deliberates and makes decisions on Tokuyama’s environmental poli-

Department was established in October 2011 to accelerate the implementa-

cies as well as on plans and measures for the Company’s environmental manage-

tion of the compliance program, which it is doing by providing instructional

ment activities.

education for the personnel of divisions and departments handling exports as

Safety Measures Committee

well as by auditing and improving the export management system to meet theThis committee deliberates and makes decisions on our safety policies. Also, the commit-

needs of outside customers as well as in-house users.

tee discusses and approves the plans and results of our safety management activities.
11

Tokuyama’s CSR

RC Promotion Structure and Operation of Management Systems
Responsible Care

RC Promotion Structure

RC Activity Evaluation and Management System

Safety and Environmental Assessment

Responsible Care (RC) refers to the voluntary management activities of companies

Chaired by the president and consisting of members of the Board of Directors andTokuyama adopts a medium-term plan in the area of Responsible Care and deter-

Prior to installing, expanding or modifying any facility, we conduct safety and envi-that manufacture and handle chemical substances to protect the environment andmembers of the Executive Committee, the CSR Promotion Council is Tokuyama’s top

mines its policies and targets for each fiscal year to achieve the plan. Under these pol-ronmental assessment. We check the safety design of equipment, the safety level ofmaintain the safety and health of members of the public and employees in all pro-decision-making body for RC activities. Under the CSR Promotion Council, theicies, the individual departments create specific plans and engage in their activities.

the materials handled, compliance with the laws and regulations and the impact on

cesses covering the development, manufacturing, distribution, use, final consump-

Company has established the Environmental Measures Committee, Safety Measures

The results of these activities are assessed at the end of each fiscal year so that thethe environment, thereby ensuring that our facilities are safe, easy to operate, easytion and disposal of chemical substances. Also, RC activities involve the publication

Committee and Product Safety and Quality Assurance Committee as decision-mak-plans for the following fiscal year will reflect the findings. Tokuyama formulated a new

to maintain, and accident- and disaster-resistant. The assessments apply to threeof the results of the activities and the promotion of dialogues and communication

ing bodies. Also, the Company has established several subcommittees—such as thefour-year plan starting in fiscal 2011. Activities under the plan are now in progress.

stages: Basic Plan Assessment, Design Assessment and Pre-Operational Assessment.

with society. The RC concept originated in Canada in 1985, and it is now in place in

Product Assessment Subcommittee—which provide various assessment functions.
All these committees and subcommittees promote specific initiatives in their respec-

was established in 1995 within the Japan Chemical Industry Association (JCIA). It

tive areas of responsibility.

had 97 corporate members as of May 2012, Tokuyama being one of the founding

RC Promotion Structure

members. We actively promote RC activities as the basis of our environmental man-

CSR Promotion Council

agement and CSR activities.

Assessment Function

Decision-Making Function

CSR Activities Centered on RC Activities
Tokuyama’s CSR activities center on RC activities. A Companywide promotion structure has been established to soundly operate various management systems. In thisway, we continue to improve our environmental, safety, and quality management
systems.

Environmental Measures Committee

Product Assessment Subcommittee(Labeling Assessment Subcommittee)

Safety Measures Committee

Safety and Environmental
Assessment Subcommittee

Product Safety and Quality
Assurance Committee

RC Research Laboratory(support organization)

Responsible Care Management
Department (Secretariat)

This laboratory checks the safety of chemicals and assesses their environmental
impact using simulations. It also carries
out environmental measurements, working environment measurements andultra-trace analysis of substances underregulation and chemical pollutants.

This department promotes RC activities
throughout the Group, covering the areasof the environment, safety and quality.

Basic Philosophy of Responsible Care
Basic Policy

Action Objectives

As a member of the Japan Responsible

1 Promote environmental protection

Care Council, Tokuyama Corporation
carries out Responsible Care activities• Implement an ISO 14001-based Environmental Management System and reduce environmental impact

2 Observe the laws and regulations

that protect the environment and pre-• Observe international rules, domestic laws and regulations and industrial standards

serve safety and health throughout the• Thoroughly implement export management rules on materials under control

entire chemical substance life cycle,
from development and manufacturing
to distribution, use, final consumption
and disposal.
Our social mission is to aggressively
tackle and systematically solve environmental issues in particular, which, inturn, will lead to sustainable corporate
and social development. Based on thisrecognition, we promote Environmental

3 Promote energy conservation and curb global warming• Achieve top-class unit energy consumption in the industry for each product4 Promote resource recycling and work toward reduction and the proper
management of waste materials

and environment-oriented design, that they have been built to the design requirements and that they are ready for operation.

RC Activity Goals

Product Assessment and Labeling Assessment
To ensure product safety, Tokuyama conducts a product safety assessment at each

Environmental Impact Reduction Goals

Environmental Management Plan

Environmental Management Activities

Assessment of Activities

Medium-Term
Environmental Plan

stage, from research and development to commercialization. We assess the risk eval-

ISO 14001 Environmental
Management Systemuation and examine compliance with the statutory requirements from a wide range

Safety and Environment
Assessment System
RC Audit Systemof perspectives, including the safety of the chemical substances involved, the environmental impact and the effect on human health. We also assess the labeling to ensure

Environmental Accountingthat the product information in catalogs, manuals on safe handling, material safety

Environmental Performancedata sheets (MSDSs)* and other types of labeling contain no deficiencies in relation
to the instructions and/or warnings and that there are no inappropriate statements.

Operation of Management Systems
ISO 14001 Environmental Management System
The Tokuyama Factory and the Kashima Factory have already acquired ISO 14001 cer-

* A material safety data sheet is a document that deals with the hazard and toxicity of achemical substance. It is prepared to ensure the safe handling of a particular substance and provides information on the name of the substance, safety measures, theaction to be taken in the event of an emergency, and so forth.

tification. ISO 14001 is an international standard for environmental management systems. In line with the Companywide environmental policy, each factory sets out an

Education and Training

environmental policy and the specific goals to be achieved in areas covering environ-

Employee education on Responsible Care activities is provided for all members with-mental impact reduction, energy conservation, waste reduction and resource recycling.

in the framework of level-specific group education.

At the Company’s head office, branch offices and research laboratories, activities

Practical education and training in relation to environmental management, safety

are underway based on their respective policies and goals set out according to the

management, occupational health and safety, and quality management are offered as

scale of their operations, covering energy conservation, waste reduction, resource

part of actual management activities. To take environmental management for exam-

recycling and other activities.

ple, the Tokuyama Factory and the Kashima Factory have formulated specific educa-

ISO 9001 Quality Management Systemtion and training plans in accordance with the ISO 14001 environmental manual.

Tokuyama has also acquired ISO 9001 certification for its quality management

They offer education on the importance of environmental conservation and compli-

system. Since fiscal 2002, this system has been operated as a system covering sales,

ance with relevant laws and regulations to employees and contracted workers alike.

development and all other divisions of the Company.

In safety management and occupational health and safety, we offer hazard prediction training, hands-on experience training, pre-work hazard prediction activities,

In accordance with the Japan Chemical Industry Association (JCIA) New Occupationalsafety regulation education, internal special education on electricity, oxygen defi-

5 Promote process safety, disaster prevention and occupational health and safety

Health and Safety Guidelines, Tokuyama has built and promoted occupational healthciency, waste incinerators and other areas, foreman education, troubleshooting• Aim for zero accidents and disasters based on the principles of self-responsibility andthe self-management of safety

and safety management systems at individual factories and offices. In fiscal 2005, thetraining, training on the use of fire prevention and extinguishing systems, evacuation

Tokuyama Factory upgraded its system into a comprehensive safety management

drills, general disaster drills, traffic safety education, and training on aid activities

system covering various safety-related activities.

following external accidents and disaster prevention. For quality management,• Promote the material recycling and thermal recycling of resources• Work toward achieving a paperless office• Achieve a comfortable working environment and protect people’s safety and health

6 Ensure strict product safety standards• Offer environmentally friendly products that can be used with safetythat emphasizes the environment, in all• Provide proper information on how to use products and what precautions to takedevelopment, manufacturing and sales.

At these stages, assessments are conducted to verify that the facilities have a safety-

Occupational Health and Safety Management System

Management, a management policyof our business activities, including

Incorporate assessment results into goals
and plans for the following fiscal year

52 countries around the world. In Japan, the Japan Responsible Care Council (JRCC)

RC Activity Evaluation and Management System(Environmental Preservation)

7 Deepen the relationship of trust with society• Publicly disclose information on the Company’s activities concerning environmental protection,
process safety and disaster prevention, occupational health and safety, and chemical product safety

every workplace separately organizes safety meetings and other opportunities forAssessment Systems

ISO-related education. Twenty-two key personnel at different workplaces have

Tokuyama has set up several assessment systems in an effort to reduce environmental

completed the ISO 9001 internal auditor development course. In September 2011,

and safety risks.

we organized a skills seminar for internal auditors with in-house lecturers.

• Actively engage in dialogue with the local communities

1213

Tokuyama’s CSR

Regaining the Trust of Our Customers
On the other hand, the initiatives undertaken to repair customers’ houses and

RC Promotion Structure and Operation of

Third-Party Audit

Measures against Plastic Window Sash Problem

Management Systems

Tokuyama undergoes ISO 9001 and ISO 14001 examinations conducted by accredi-

Since we announced measures to prevent the recurrence of the mislabeling of fire-other buildings to ensure legal compliance included the installation of a test furnacetation organizations. The latest examination for renewal of the ISO 9001 certifica-

proof specifications on plastic window sashes in March 2009, we have rallied theat Excel Shanon’s Kuriyama Factory, the establishment of repair technologies andAuditing Systems

tion took place in January 2012. The Company has implemented remedial measuresstrength of the entire Group, aiming to regain the trust of our customers by stepping

the proper acquisition of authorization for fireproof and fire-resistant specifications.

Tokuyama has an auditing system aimed at verifying that individual factories andfor identified issues.

up prevention measures and efforts to complete the repair of customers’ houses and

The abovementioned initiatives led to significant progress in repair work in fiscal

other buildings to ensure legal compliance.

2010. As a result, the Group had completed repair and replacement work for 90%

offices engage in appropriate activities in line with Companywide policies.

Safety and Environmental Audit

As for preventive measures, we have completed the formulation and implemen-of the affected customers by March 31, 2012. In fiscal 2012, backed by the

Tokuyama conducts safety and environmental audits on a yearly basis to verify thetation of “medium-term measures.” The Group has developed structures for auditing

strengthened cooperation between Tokuyama and Excel Shanon, we will strive toappropriateness of its accident/disaster prevention measures and management

and Group management and has strengthened its compliance system. Meanwhile,complete the remaining work, providing detailed repair services tailored to each

Excel Shanon Corporation expanded the scope of its ISO 9001 certification with thehouse or building in need of repair.

aim of bolstering its quality assurance system. These structures and systems are now

Total number of houses and other buildings where the repair

in place operating effectively.

of the plastic window sashes in question was completed

Examination for renewal of
ISO 9001 certification at the
Tokuyama Factory on
January 25, 2012

the director who chairs the Safety Measures Committee and the Environmental
Measures Committee, and the team conducts audits of all factories, laboratories andoffices, organizations designated for inspection under the High Pressure Gas Safety

1 January 2009: Publically announced the mislabeling problem and set up theexternal investigative committee

Act, the Purchasing & Logistics Department and the Health Management Center. The

Internal Audit

results of the audits are compiled in reports and distributed to all departments

Tokuyama conducts internal audits on a regular basis in accordance with the ISO

concerned. They are also presented to the president.

9001 and ISO 14001 standards and with the occupational health and safety man-

2 March 2009:

Received the external investigative committee’s report andannounced urgent, short-term and medium-term measures tobe undertaken to prevent the recurrence of the problem

agement system. The progress of action plans and the status of system operations

3 June 2009:

are audited. If a problem is found, it is notified to related parties, and corrective

4 October 2009: Introduced a test furnace at Excel Shanon’s Kuriyama Factory
5 March 2010:

actions are instituted.

Completed the urgent measures

Completed the short-term measures
Completion rate of repair work as of the end of fiscal 2009: 18%

6 June 2010:

Began introducing products newly authorized for repair use

7 March 2011:

Completed the medium-term measures
Completion rate of repair work as of the end of fiscal 2010: 56%

8 March 2012:

Completion rate of repair work as of the end of fiscal 2011: 90%(on the basis of the number of notifications submitted to the Ministry of Land,
Infrastructure, Transport and Tourism)
5,000

Number of houses and buildings in question: 4,206(Number of houses and buildings)

activities in relation to environmental conservation. The auditing team is headed by

4,000

3,000

2,000

1,000

0

2009

2010

2011

2012

Fiscal 2011 RC Activities: Priority Issues and Results
Category

Priority Issue

Results

Related Pages

Management• Review by top management• CSR Promotion Council• Safety and environmental audit

P10
P12-14

Environmental conservation• Reduction in environmental impact(air, water quality, etc.)• Reduction in the emission of PRTR substancesand hazardous air pollutants• Decrease in unit energy consumption• Promotion of zero-emission activities• Reduction in the emission of SOx, NOx, soot, etc.

P45

• Environmental impact reduction• Energy conservation• Waste recycling

P46• Promotion of energy conservation• Facilitation of the use of waste as raw materials
and fuel of cement production• Steady operation of the environmental
management system• Proper operation of the safety management system• All-inclusive safety and disaster prevention activities

Occupational health and safety• Zero disasters• Efforts to maintain zero-disaster status• Promotion of risk assessment

Chemical product safety• Securing product safety• Implementation of product assessment andlabeling assessment• Improvement of MSDSs and promotion of researchon new raw materials

Cultivation of a relationship oftrust with society and local
communities
Promotion of RC activities at
Group companies

14• Participation in community activities• Harmonious coexistence with society andlocal communities• Expansion of RC activities

Installation of fire-resistant parts

Replacement of plastic window sashes

Status of Implementation of Measures to Prevent Recurrence• Zero accidents• Promotion of risk management• Promotion of independent safety management

Process safety

P44
P34-35,
P47
P12-14

P36-37

Implemented by

Measures to Prevent
Recurrence
1 Enhance auditing• Participation in community volunteer activities• Holding of RC Community Dialogues(regional, organized by each factory)• Provision of factory tours• Safety, quality and environmental audits• Encouragement of ISO certification acquisition• Sharing of RC-related information

system

P36-37
2 Improve GroupP12-14Tokuyama

management
mechanism
3 Strengthen

P40-41
P33

compliance system

P32
4 Expand the scope ofP50-51

Excel Shanon

ISO 9001 certification

Implementation Status• We defined checklists and executing bodies for audits of Group companies and clarified the division of roles in auditing.
• We set the rule of mandating audits on the status of the acquisition of fireproof and fire-resistant authorizations by
Tokuyama’s individual divisions and departments and by Group companies.
• We identified and evaluated risks inherent in fixed personnel allocation at Group companies. Evaluation results were sharedacross the Tokuyama Group and related parties to establish a system to cope with risks through collaborative efforts.
• We created a database containing information about Group companies on Tokuyama’s information network. Based on thisdatabase, we established a structure to promote information sharing among Tokuyama, Group companies and related parties.
• We investigated the status of Group companies’ compliance with laws, regulations, and internal rules and guidelines andgained detailed knowledge about their compliance status and systems.
• We positioned the Corporate Social Responsibility Division as the body responsible for providing compliance-related
instruction and education. Also, we strengthened our Groupwide compliance systems by, for example, opening theCompliance Study Room intranet site.
• Previously, only certain manufacturing departments acquired the ISO 9001 certification. All divisions—including development, design and sales, as well as all factories, branches and sales offices—have completed the acquisition of the certification by July 7, 2010.

15

Tokuyama Malaysia produces polycrystalline silicon,
an essential material in the manufacture of solar cells

Growing
Tokuyama Aggressively Expanding Growth Businesses
Under its Centennial Vision, Tokuyama aims to strengthen strategicallygrowing businesses. Our polycrystalline silicon business is the mainstay
among these growing businesses. Polycrystalline silicon has been developed as a material for electronic parts and components, particularly for

The Bakun Dam hydropower plant in Sarawak State, Malaysia,
supplies electricity to Tokuyama Malaysia’s factory

Growing Business to Cultivate Solar Cell Applications

To date, Tokuyama has operated its Tokuyama Factory in Shunan City, Yamaguchi

From the standpoint of strengthening its strategically growing businesses, Tokuyama

Prefecture, Japan, as its sole manufacturing base for this material. The Tokuyama

began constructing a new factory in Malaysia. Serving as a base for the manufacture

Factory is now capable of producing 9,200 tonnes of the material annually. With thisof polycrystalline silicon for solar cells, this new Malaysia Factory, when completed,capacity, the Company commands a world-class market share. However, market

will boast an annual capacity of 6,200 tonnes.

competition is ever-intensifying, reflecting market entries by South Korean andTokuyama decided to build this factory on the back of the rapid expansion of theChinese counterparts. By mass-producing polycrystalline silicon at the Tokuyama

global renewable energy market. Worldwide economic growth was driven by the

Factory and the new Malaysia Factory, we expect to boast an annual capacity ofcomputer industry in the 1980s and by the network and IT industries in the 1990s.

17,200 tonnes in 2013. Moreover, as second-phase construction currently under

The world witnessed the evolution of financial technologies and then experienced

way at the Malaysia Factory is completed, bringing its total annual capacity to

the burst of the bubble economy during the first decade in the new millennium.

20,000 tonnes, the Group’s annual capacity is expected to rise further, reaching

Today, countries across the globe are entering the era of renewable energy. In par-31,000 tonnes in spring 2014.

ticular, the introduction of photovoltaic generation is accelerating on a global scale,Through the strengthening of our capacity, we aim to maintain the current global

semiconductor applications. In line with the ongoing development of theand photovoltaic power capacity has shown an average 10-time increase in major

share of more than 20% in polycrystalline silicon for semiconductor applications. For

semiconductor industry, Tokuyama has steadily expanded this business,countries from the 2000 level, with world leader Germany boasting the largest

solar cell applications, we will work to more than double our market share from thewhich has, in turn, contributed to the growth of the Tokuyama Group. In

capacity, at 5,500 megawatts peak (MWp).

current 5% (Tokuyama estimate).

recent years, polycrystalline silicon has become indispensable in today’ssociety, increasingly used for photovoltaic power converters in solar cells,
the use of which is rapidly spreading as a means to curb global warming.

New Business Model Initiated by the Sarawak State Government

In addition to the area of electronic parts and components for semiconductors, Tokuyama is concentrating its management resources on the environmental and energy field. By increasing the production capacity throughits global production network, Tokuyama is working to further strengthen
its world-class competitiveness in the polycrystalline silicon business.
16

Supply of electricity by the
Bakun Dam hydropower plant

Manufacture of polycrystalline
silicon by Tokuyama

Manufacture of solar cells

Spread of electric vehicles

17

View of pipe rack modules erected during first-phase constructionin the background of groundwork for second-phase construction

Growing Globally with Renewable Energy

Contributing to the Prosperity of Malaysian Industry with an
Eco-Friendly Business Cycle
Overview of the Malaysia Project

A Breath of Fresh Air from Malaysia to Rejuvenate Tokuyama

In the Samalaju Industrial Park, which is situated in the state of Sarawak,
Malaysia, the Company is currently constructing a factory for the manufactureof polycrystalline silicon. The anticipated annual capacity of the factory after thecompletion of first-phase plant construction in 2013 is 6,200 tonnes, a figure

Akira Sanuki

that is expected to rise to 20,000 tonnes with the completion of a second plant

Managing Executive Officer of Tokuyama
Corporation, President of Tokuyama
Malaysia Sdn. Bhd.

with a planned annual capacity of 13,800 tonnes. The groundbreaking ceremonies for first- and second-phase construction took place on February 16, 2011
and February 16, 2012, respectively. Construction of the factory is proceeding
steadily along with the development of the area around the factory. Production
at the first plant is scheduled to commence in June 2013.
The considerable cost of factory construction, which is estimated at approxi-

It has been a year and a half since the groundbreaking ceremony for thefactory’s first-phase construction. From my viewpoint, however, the Malaysia
Project has only just begun. When I consider operating a company with aworkforce of over 500 employees after production commences, I feel wehave to move into high gear from here on out. It is a challenging task to

Sarawak Corridor of Renewable Energy

New Business Model to Promote Clean Energy Development

Malaysia consists of 13 states and 3 federal territories. Since Mr. Najib Razak

In further developing solar cell-related industries, Malaysia is focusing on

I think the most critical stage of starting a new company in Malaysia is

took office as Prime Minister of Malaysia in 2009, the entire country has

nurturing upstream businesses as well as downstream areas. Through such aat the point of gaining recognition as a part of local society…or not. At thispromoted the spread of renewable energy use and the development of environ-focus, the country aims to establish a comprehensive value chain to bolster the

A number of Asian companies are expanding into the Samalaju Industrial

stage, Tokuyama’s corporate character and dignity will be examined.

mental technologies. Located on the island of Borneo, Sarawak is the largest

competitiveness of these industries.

Park, and it is growing into a huge factory complex. As the first Japanese com-

Because of this, we are aiming to create a factory deeply rooted in the local

state of Malaysia and has the fourth largest population among Malaysian

Tokuyama’s polycrystalline silicon project in Malaysia involves the use ofpany expanding into the park, Tokuyama is proud to be a “top runner.”community, focusing on nurturing local employees who have excellent per-states and federal territories. In accordance with its clean energy policy, dubbed

clean electricity generated at the Bakun Dam hydropower plant, which wassonalities as well as high capabilities in manufacturing.

mately ¥200 billion, includes the installation of utilities (such as power transmission facilities and hydrogen generators) and the development of
infrastructure (such as roads and wastewater treatment facilities). For first-phaseand second-phase operations, Tokuyama plans to employ 1,000 people.

establish a new company from the ground up, groping our way forward toopen up a frontier, all the while under pressure to succeed.

Sarawak Corridor of Renewable Energy (SCORE), the state of Sarawak is accel-

constructed by the state of Sarawak, and the manufacture of polycrystalline

Tokuyama has been growing and accumulating its technologies over aerating its economic growth and development while strengthening invitations

silicon, a material used in solar cells. The solar cells that are manufactured based

Tokuyama has long considered the establishment of a second polycrystalline

history of many years in Japan, beginning in Shunan City, and the Company

to participate in renewable energy projects. The Samalaju Industrial Park has

on our materials will, in turn, generate clean electricity, which will be used forsilicon manufacturing base in addition to the one in Japan in light of diversifying

has nurtured an abundance of human resources. At present, 70 engineers inbeen designated as an economic development area under SCORE, andthe promotion of electric vehicles. In this way, we are working to establish an

risks and to respond to the expected medium- and long-term demand expansion

various fields have been deployed to Malaysia from the Tokuyama Factory,

Tokuyama’s new factory is the first investment project undertaken in this area.

eco-friendly business cycle.

Abundant Electricity and Human Resources

for this material used in solar cells. Following careful examination of locations,the Company has selected the Samalaju Industrial Park in Malaysia. There weremany reasons for the selection of this site, such as the region’s sufficient electricity supply capacity, which is a prerequisite for the manufacture of polycrystalline silicon, the abundance of water resources for industrial use and highly
educated human resources. In addition, Tokuyama will be able to receive preferential tax treatment and support for the acquisition of permits and licenses
from the Malaysian federal government and the Sarawak state government.

and, eventually, we will accept 120 such engineers. Of course, we note thatdue consideration must be paid when we bring our technology to different
societies, no matter how excellent such technology might be. Such technology
should be applied in line with the character and culture of the local society.

cause good ripple effects on local supporting industries, providing diversified
business opportunities for many parties.
Kuala LumpurState of Sarawak
Samalaju Industrial Park

Tokuyama Malaysia can also take a key role in realizing “Venture Spirit &on the site totaling approximately 40 hectares. The 2,400-MW Bakun Dam

Innovation,” the underlying principle of Tokuyama’s Centennial Vision.

Malaysia

November 2011

The dam can hold 43.8 billion cubic meters of water, more than the maximum storage
capacities of all the dams in Japan. The surface area of the reservoir lying behind thedam is 695 square kilometers, equivalent to the land area of Singapore or the surface
plant will boast a power generation capacity of 2,400 megawatts, about the same as
the output of two of the latest nuclear power generators. As the key component of theState of Sarawak’s “Sarawak Corridor of Renewable Energy (SCORE),” it is representative of the abounding electricity resources of a state that has extended an invitation to a

Location of the Samalaju Industrial Park

December 2011

Situated 200 kilometers south of the Samalaju Industrial Park, the Bakun Dam is one ofarea of Lake Biwa, Japan’s largest lake. Upon completion, the Bakun Dam hydropower

As such, I believe that the Malaysia Project is essential for the TokuyamaGroup to achieve true globalization.

Bakun Damthe world’s largest dams at 205 meters in height and 750 meters in length at its crest.

everything is already prepared and settled. By returning with this experience,ation given to future extension. The first phase will involve factory construction

18of experienced engineers and highly educated workers. Furthermore, it willwith in Malaysia. This could never happen in domestic operations where

nate Tokuyama. By nurturing such globally capable human resources,

September 2011

cesses. Therefore, the project is expected to create and expand the employment

Japan and Malaysia.

considerable discretion and great responsibilities they have been entrusted

vast site, Tokuyama has secured approximately 200 hectares with due consider-

February 2011

contributions to the growth of environmental businesses promoted by bothproject, and I believe that the value of their experience is redoubled by theI expect that they will bring with them a breath of fresh air that will rejuve-

supplies electricity to the factory.

On the other hand, our project includes sophisticated manufacturing pro-

I admire the Japanese expatriates devoting their hard work to thisThe Samalaju Industrial Park boasts a site of 8,000 hectares. Within thishydropower plant—situated about 200 kilometers south of the factory site—Thus, expectations are heightening for this factory project to make significant

February 2012

February 2012

number of energy-intensive industries (see page 17 for a photo).

March 2012

May 2012

19

Growing Globally with People

Passing on Tokuyama’s “DNA” to Malaysian Staff

From left:
Yukinobu Aimoto
Manager, Manufacturing Section,
Manufacturing Department,
Tokuyama Malaysia Sdn. Bhd.

Nor Komariah

Tan Sheng Yong

Yasushi Okuno

Manufacturing Department,
Tokuyama Malaysia Sdn. Bhd.

Manufacturing Department,
Tokuyama Malaysia Sdn. Bhd.

Project Manager of TMP Project (PS-1),
Tokuyama Malaysia Sdn. Bhd.

Keeping Malaysian Staff

I Would Like to Succeed

I Would Like to Make

Laying the Groundwork forHighly Motivatedthrough Career Development

Tokuyama Malaysia the No. 1

Growth in the Local

Yukinobu Aimotoin Tokuyama Malaysia

Company in Malaysia

Community

Tan Sheng Yong

Nor Komariah

Yasushi Okuno

Manufacturing Department,
Tokuyama Malaysia Sdn. Bhd.

Manufacturing Department,
Tokuyama Malaysia Sdn. Bhd.

Project Manager of TMP Project (PS-1),
Tokuyama Malaysia Sdn. Bhd.

Having graduated with a first-class honors
degree in Mechanical and Manufacturing
Engineering from Universiti Malaysia Sarawak(UNIMAS), Mr. Yong, now aged 25, began his
career at Tokuyama Malaysia with a view to
self-development.

Manager, Manufacturing Section,
Manufacturing Department,
Tokuyama Malaysia Sdn. Bhd.

Malaysia, however, we found that those who had already been studying in

Our present goal is to launch the new factory as early as possible and to stabilize

Born in Bahagian Miri, Sarawak, and a
graduate of Universiti Malaysia Pahang (UMP)
as a Bachelor of Science in Mechanical and
Manufacturing Engineering, Ms. Komariah
worked for another company before joining
Tokuyama Malaysia. She is fond of mechanics
and interested in the maintenance of thefactory’s facilities.

Japan were quick to grasp the material. Meanwhile, the communication capa-

its operations. I believe that we can benefit shareholders and contribute to the

My goal is to make Tokuyama Malaysia the most sought-after company in

expectations from colleagues Groupwide, as well as attention from industry

bilities of our Japanese expatriates are advancing day by day. Their improve-

development of society while achieving prosperity by increasing the factory’s

Malaysia by increasing its profitability and publicity. To this end, the company isrepresentatives outside the Group, as we approach the start of operations.

ment is beyond my expectations.

return on investment through efficient and sustained operations.

in need of excellent human resources. I would like to be one of those human

To develop the infrastructure associated with our factory, we engaged inresources—one who is diligent and bursting with a wealth of ideas. I see work-

negotiations with the government of Malaysia, the state government and terri-ing with Japanese people as an excellent chance to further my own growth.

torial authorities on many occasions. Moreover, it took a lot of effort to manage

Currently, we have 94 Malaysian staff members participating in training,
including those who received training in Japan last year. Our biggest challenge
during training was communicating in English. Once we began training in

Another issue we face is raising safety awareness among Malaysian staff

On the other hand, I would like to gain experience in such areas as launching

who have less experience in plant operations. We begin with giving them afactory and trial operations in the field, and I would like to acquire various

thorough grounding in the importance of complying with predetermined rules

technologies and skills. My ultimate goal in doing so is to be a mechanicaland then move on to nurturing their risk sensitivity through in-the-field training.

engineer engaged in the engineering design of plant processes.

Second-phase construction of our factory has been kicked off while first-phase
construction has entered a key stage. It is very pleasing to see the factory taking
shape day by day. On the other hand, I am feeling a heightened sense of mission to accomplish the project on schedule, seeing that we are drawing greater

Looking back at my training period in Japan, I didn’t know any Japaneseconstruction firms with little or no experience in building a polycrystalline

while many of the Japanese staff had only poor English, and that madesilicon factory with a high standard of quality. We encountered a number of

We found that the Malaysian staff who returned from last year’s training in

Right after joining Tokuyama Malaysia, I was sent to Japan and given

communication between us so difficult. Nevertheless, they were determined tochallenges that were quite unlike anything we had encountered with similar

Japan were better prepared and motivated to take leadership roles than staff

training with other Malaysian staff. At first, it was difficult communicating withpass on the knowledge needed to operate the factory production process to us.

projects in Japan. It was not simply a matter of language skill; I found it

who joined us this year. We recognize that one of our most important tasks is

the Japanese staff. For example, some of the same English-language technical

Inspired by their dedication, I became enthusiastic to learn what they could teachessential to present logical explanations and to take a broader perspective whento establish a personnel system that maintains and further increases employee

terms are used in both the Japanese and Malaysian factories but the meanings

me, and I thought that I would really like to work with them. Consequently,

entering into discussions with negotiating partners, giving consideration to theirmotivation. It should be noted that a high percentage of Tokuyama Malaysia’s

are different. This hindered the exchange of ideas when we tried to communi-

I was able to learn about a number of advanced techniques and gain knowledge.

ways of thinking and customs. Also, I became aware that sometimes an

employees are women and that many are highly qualified individuals. In filling

cate in English. However, our communication difficulties were eventually ironed

It has been about a year since I joined Tokuyama Malaysia. The hour-longapproach that is thought to be normal in Japan has to be streamlined oreach position, the Company assesses employees’ aptitude on an individual

out thanks to the great efforts of Japanese staff who tried to teach us with

commute by bus each way to Samalaju is a little long and hard, but I do not

modified in line with the local situation. As such, I believe that each member ofbasis to ensure the right person is appointed to the right job.

enthusiasm by painstakingly confirming every single technical term. In the end,

allow it to be an excuse not to do my best at work. In order to refresh myself, I

staff must proactively think and act beyond the existing business framework in

the Malaysian staff’s understanding and knowledge was deepened.

sometimes visit my home in Miri or meet friends on the weekend, trying toorder to build Tokuyama Malaysia’s foundations. Such foundations will, in turn,make the most of my time.

support us to develop as a company rooted in the local community.

If I had missed out on the chance to join Tokuyama Malaysia, I might havebeen an everyday engineer doing only in routine work in some other factory,

If I had not entered Tokuyama Malaysia, I might never have had the chance

Once we have created a factory that is able to operate safely and is steadily

which would not be stimulating for me. The tasks I tackle in Tokuyama Malaysia

to work in a factory, which was one of my dreams. Moreover, I would not havesupported by the capabilities of its Malaysian staff, we will pass on ourare really challenging. In fact, operating a polycrystalline silicon factory is in nolearned any technologies from Japan. I am so delighted to be part of Tokuyama

technologies to them so that they can maintain and improve plant operations

way simple. It requires great effort to acquire the techniques related to the pro-

Malaysia.

on their own.

duction of polycrystalline silicon. By meeting challenges at Tokuyama Malaysia,
I am developing my career and achieving success as an engineer.

20

21Growing Globally with People

Nurturing Human Resources That Bolster Tokuyama’s Growth on
the Global StageA Key Factor for Sustained Growth—Nurturing and

Basic Policy for Nurturing Human Resources

Utilizing Globally Capable Human Resources

We seek to nurture those who have a strong awareness of the company’ssocial mission and proactively take action toward the realization of that mission
in a creative manner through continuous effort to enhance their competencies,
develop their capabilities and support their character growth.

The Understanding of Colleagues Is Key to Reinstatement

Sustainably Growing Company Regards Its Employees as
True Stakeholders

Reinstated in October 2011 after one year ofchildcare leave, Ms. Yamasaki has been
assigned to foreign trade control. Utilizing the
flextime system, she works from 8:00 a.m. to
3:45 p.m. and is striving to balance her careerand raising a daughter aged one year andseven months.

Ichiyo Matsuzaki, M.D., Ph.D., is a researcher
in the fields of industrial psychiatry and aerospace psychiatry at the Graduate School ofComprehensive Human Sciences, University ofTsukuba. Proactively tackling the health management problems of intellectual laborers,
which include mental health diseases, Dr.
Matsuzaki proposes labor management methods to create workplaces that are agreeable toboth companies and their employees.
Moreover, working in collaboration with theJapan Aerospace Exploration Agency, he isconducting research into the health management of astronauts working in unique environments that are completely closed to theoutside world.

Miwako Yamasaki
Foreign Trade Control Department

The Manjiro Plan: Nurturing Globally Capable Human

Ichiyo Matsuzaki,
M.D., Ph.D.

Resources

In my fourth year after joining Tokuyama, I was seconded to Tokuyama Dental

In fiscal 2011, we launched the “Manjiro Plan,” a new training plan that is

Corporation, which became an independent subsidiary of Tokuyama

open to all employees, aiming to nurture globally capable human resources.

Corporation. Because of this, I had been away from the Head Office for a long

Professor, Graduate School ofComprehensive Human Sciences,
University of Tsukuba

Taishi Kutose

This plan is voluntary in order to encourage self-motivated participation.

time when I had my daughter. Accordingly, I was not abreast of the situation in

In spring 2012, I went to Malaysia with a medical staff of ten to review the mental

Executive Officer, General Manager of
the Personnel Department

As employees gain wider experience under this plan, they are given further

the Head Office and had no idea about which department I would be assigned

health of Japanese staff working at Tokuyama Malaysia. Right after the initiation ofopportunities to take on the challenge of advanced training. The plan was

to when reinstated or what kind of work I was going to be given. In fact, thethe Malaysia Project, Tokuyama dispatched a team of medical specialists andOne of our basic strategies in the Centennial Vision is to strengthen strategically

named after John Manjiro, an important historical figure in Japan famous forlack of information increased my anxiety, as I wondered how I was going to

growing businesses. As a first step under this strategy, our Malaysia Project is

his challenging spirit and determination, reflecting our wish for employees tobalance my career and raising a child. I believe that my case is not unique, but

now proceeding. To bolster those basic strategies, which encompass the pursuit

be people who boldly stride forward and strive for achievement.

common to all of those who are on childcare leave.

ensured that counseling was available for Japanese staff working at the local base.
This kind of initiative enhances employee loyalty and motivation.
My impression is that it is part of Tokuyama’s corporate culture to show a lot of
consideration for their employees. I assume that this culture springs from the localof the Malaysia Project, we are putting emphasis on human resource-based

Participants in the plan must work independently and can move to the next

At that time, a woman in the Personnel Department provided me with

community in Shunan City, Yamaguchi Prefecture, where Tokuyama is deeply rooted.

management and CSR activities. To promote our management strategies, we

step only after achieving success at the preceding level. This approach is quitedetailed information, responding to my inquiries over the phone and throughAs a medical specialist, I recognize that my role is to scientifically analyze such abelieve that it is essential to nurture and utilize globally capable humandistinct from the existing training system set up within the personnel system.

e-mail. Thanks to her, I was able to choose the reinstatement plan best suiteddesirable corporate culture, which in this case has grown out of tradition, and toresources, more specifically, those who are able to adapt to foreign cultures.

However, it calls for the kind of assertiveness that is exactly what is required toto me. Company magazines regularly delivered to my home kept me apprised

uphold “Venture Spirit & Innovation,” the underlying principle of Tokuyama’sof the situation at work and eased my anxiety.

The training of Tokuyama Malaysia staff at the Tokuyama Factory is a key
issue in the promotion of the abovementioned strategies. At the same time, we

Centennial Vision.

utilize my expertise to convert it into something with a recognizable format that istransferable to next generation.
I am also involved in such fields as the selection of astronauts and stress man-

I was assigned to my present position in the Foreign Trade Control

agement in outer space. In these and broader fields, my role is to support worker’s

are trying to motivate the Japanese staff who work with them to proactively

The plan does not impose technically difficult assignments, rather, it places

Department just a year after my child was born. Right after I was reinstated, I

mental health management scientifically and systematically by suggesting three

get involved in cross-cultural communication. Of course, the ability of theparticipants in situations where they are not able to communicate in their own

felt guilty for causing inconvenience to my co-workers because I had to fre-major approaches to dealing with mental problems. First of all, I propose the course

Japanese staff to work in a multicultural setting should be further enhanced solanguage and their cultural norms may not apply. Such a situation throws

quently take days off as my daughter kept running a fever. However, a female

to take to maintain a mentally healthy, cheerful workforce that will continue to bethat they are prepared to engage in operations at the Malaysia Factory. Therea spotlight on the nature of the participant. The series of training sessions

senior staff member in my department who had a three-year old child at the

productive. I call it “primary prevention.” To this end, I provide education on healthare many issues to be addressed.

gradually builds character by forcing the participants to rethink what it meanstime gave me some concrete advice on both my career and raising a child thatto respect each other and how to effectively work as a team.

encouraged me a lot. I also appreciated my co-workers’ willingness to cover my

As for the nurturing of Japanese expatriates, we need to build a personnel

self-management and how to deal with stress. Second, I emphasize the importanceof early detection as “secondary prevention.” I encourage managers to contact me
directly as soon as they notice mental problems in a staff member. Third, I provide

system that evaluates and identifies those who proactively enjoy the challeng-

The qualities that Tokuyama staff members acquire through the plan willtasks when I needed to be absent. They showed a lot of understanding andsupport for the reinstatement of employees who take a leave of absence due to aes, stress and even trouble associated with cross-cultural communication, thegrow more significant as we seek to bolster the future growth of the Group.

offered warm encouragement. To meet their expectations, I would like tomental problem. I carefully diagnose their symptoms and assess the root cause ofThis applies equally to operations in Malaysia, China and even Japan.

broaden my job role in export management and increase my knowledge intheir problem, for example, whether it comes from a personal issue or a workplace

In addition, plans call for incorporating overseas training in actual opera-such fields as export-related laws, balancing all this with raising a child.

issue. In the latter case, the working environment should be improved. Thus, an

As for the Malaysian staff, since the majority of operations at Tokuyama

tions to allow participants to learn what it is like to work overseas from theMoreover, I would like to contribute to the Group’s compliance as well as CSR

Malaysia will be entrusted to them in the future, we recognize that a personnel

very beginning. Our wish for each employee is for him or her to summon theactivities to become a good role model for junior colleagues.

system that is more suitable to this aim should be established.

courage to take that extra stride toward a new frontier and success as one ofgenerously treating its employees as important stakeholders can achieve sustained

the Group’s key employees. This is the foundation of our Centennial Vision.

growth. Moreover, the above approach to employment management is thought tokind of employees who seek to transform themselves with a spirit of challengethrough trials in their careers.

Also key to a personnel system that enables staff to grow through their

2011

201X

M3

respect and creating a workplace that enables mutual support among our
employees.

M2
M1

Communication training
Training on understandingof foreign cultures

TOEIC test

201Y

Support for the Balancing of Work and Raising Children
Tokuyama’s employees can apply for childcare leave until their child turns two years

Managerial staff training

old. Aside from such leave, male employees can take five days of paid childcare leave

TOEIC test

within eight weeks of their spouse giving birth. As for female employees, paid maternity
leave is granted for a period up to six weeks prior to delivery and for the eight weeks
following. To support the balancing of work and raising a child, eligible employees canAssessing intercultural communication skills

work shorter hours from ten weeks before the delivery until their children enter ele-

Registration

mentary school. Moreover, flextime due to childcare is available from the time preg-

TOEIC

22

From the perspective of a mental health specialist, I believe that only a company

The Manjiro Planit; to function, the understanding and support of colleagues is required. We
encourage employees’ long-term career development by fostering mutualsuch mental health problems.

be the essence of CSR.

career development is the working environment. Take, for example, a childcare
leave system. Such a system will not work if we go no further than formulating

industrial doctor and the Personnel Department must work together to respond to

nancy is confirmed through the time the child graduates from elementary school.

2006

2007

2008

2009

2010

2011

Number of employees utilizingchildcare leave

FY

3

11

6

5

7

10

Number of employees utilizing
family-care leave

0

0

0

1

0

0

Number of employees utilizing
flextime due to childcare

0

1

5

10

14

9

23

Silicone encapsulants(fumed silica)
Fluorescent material(high purity aluminum nitride powder)

LED chips(sapphire single crystal wafers)
Package substrate(aluminum nitride ceramics)

Insulating layer(aluminum nitride filler)

How Tokuyama’s products are used in LED bulbs(parentheses indicate the Company’s products)

Creating
Tokuyama Creating New Technologies and Businesses
As it works to create environmental technologies and eco-friendly

Manufacturing a Sapphire Single Crystal Using

products, Tokuyama emphasizes social contributions and environmental

the “Czochralski (CZ)”** Method

impact reduction efforts, even from the development stage. Researchers
today are under increasing pressure to quickly develop innovativetechnologies and new materials that meet the rapidly changing needs

Radio frequency current
Crucibleof society. Our R&D mission is to contribute to the healthy develop-

limeters or six inches in diameter) for LED chip manufacturing.

Department (Akita)

Sapphire single crystal wafers are commonly used for manufacturing LED chips that

In October 2011, we completed the construction of a new verification testing facility

are used for illumination. Demand for such wafers is increasing, especially for use infor the development of sapphire single crystal wafers (the Corporate Development

the backlights of smartphones and liquid crystal televisions. Moreover, the ongoing

Department (Akita)) in Misato-cho, Senboku-gun, Akita Prefecture. Trial operations

changeover from conventional to LED lighting is expected to further expand thewere initiated in November 2011, with the facility processing sapphire single crystal

market for sapphire single crystal wafers.

ingots made at the Tokuyama Factory and producing wafers for LEDs.

Tokuyama’s manufacture of sapphire single crystal reflects expertise accumulat-

Our decision to expand in Akita was backed by such factors as the generous

ed over many years and begins with aluminum oxide that has been melted at a tem-support offered by the prefectural and municipal governments of Akita, the sur-perature of more than 2,000 degrees Celsius. A seed crystal is brought into contact

rounding area’s abundance of clean water, which is indispensible to the manufac-

with the melt of aluminum oxide and a crystalline lump, or ingot, forms around it asture of wafers, and the fact that a number of optical instrument manufacturers with

it is slowly pulled upward. We have established proprietary technology for this “pull-

excellent technological capabilities are already operating in the area.

up” method of manufacturing a sapphire single crystal, which enables us to manu-

inches). However, Tokuyama is able to produce larger wafers of up to 150 millimeInduction
heating coilters, or six inches, in diameter. This allows a larger number of LED chips to be pro-Tokuyama is assiduously working to commercialize sapphire single crystal wafers
for LEDs as quickly as possible.

* Single crystal: Crystalline solid in which all parts have the same crystal
orientation

Tokuyama Factory

Corporate Development Department (Akita)(Growing sapphire single crystal)(Processing and finishing sapphire single crystal wafers)

duced from one wafer and is thus expected to significantly help LED chip
manufacturers improve their productivity as well as product quality.

have accumulated over the years to accelerate product development.
with the commercialization of sapphire single crystal* wafers (150 mil-for LED Chip Manufacturing

Usually, such wafers range in diameter from 50 to 100 millimeters (from two to four

Focusing on three growth fields, namely, “information and electron-

As the latest accomplishment of our R&D activities, we are proceeding

Initiatives Undertaken by the Corporate Development

The sapphire single crystal is then thinly sliced to yield wafers for LED chips.

materials through continuous inquiry and ceaseless effort.

leveraging the inorganic chemical and crystal technologies that we

Large Diameter Sapphire Single Crystal Wafers Ideal

facture high-quality, large-diameter single crystals with minimal defects.

ment of society by delivering such innovative technologies and newics,” “environment and energy” and “life and healthcare,” we are

The entrance of Tokuyama’s office in Tokyo features LED lighting

Melting
Single crystallization

Slicing
Lapping
Cleansing

CoringRawmaterial(aluminum oxide)** The “Czochralski (CZ)” method, also known as the pull-up method,
is a method of growing a cylindrical single-crystal ingot by bringing
a seed single crystal into contact with the melted raw material and

Ingot

Core

Wafers(150 millimeters in diameter)

slowly pulling the seed crystal upward.

24

25

Creating A New Life

Tokuyama’s Technologies Shaping the Future of Eco-Friendly Cities
Through the proliferation of solar energy and fuel cell use,
Tokuyama’s technologies are contributing to the realization ofa society underpinned by a distributed energy infrastructure.
When we consider global warming and resource depletion, we come to a conclusion: an energy-intensive society can no longer continue unchecked; wemust do something about this. In the near future, we will see the realization ofa society where general households are using solar power generation systems
and electric vehicles, and, in turn, such systems and vehicles are each connectedElectrolyte Membrane for Fuel Cells

Polycrystalline Silicon for Solar Cells

Aluminum Nitride Filler for LED Lights

in every aspect of living. It is expected that new buildings will be equipped with

Roughly 20% of worldwide CO2 emissions is attributable to automobiles. The

The effective use of solar energy underpins eco-friendly, future-oriented cities.

In general, LED bulbs consume 10% of the electricity consumed by filament

renewable energy systems and be built using construction materials that boast

shift to electric and fuel-cell cars will definitely have a significant effect on theThrough the worldwide supply of polycrystalline silicon for solar cells, Tokuyama

bulbs. Tokuyama provides such products as aluminum nitride fillers, which

excellent heat insulation and dissipation properties. It is also expected that new

reduction in the environmental impact of society at large. By offering electrolyte

is helping realize a society supported by a distributed energy infrastructure.

contribute to the improved luminosity, lighter weight and longer service life ofurban development projects will increasingly involve ground enhancement somembranes and electrode catalysts, Tokuyama is contributing to the spread of

LED bulbs, and is engaged in the development and commercialization of sap-that soil liquefaction is not caused by earthquakes and other phenomena.

fuel cell use.

phire single crystal wafers for LED chips.

to power stations via a communications network to ensure efficient energy use

Today, the entire world is witnessing the development of eco-friendly,
future-oriented cities in various locations, shifting away from the urban development model of the 20th century. Through the provision of polycrystalline silicon
for solar cells and various materials for fuel cells, Tokuyama is contributing to
the development of such cities.

Heat sink substrates for rolling stock andautomotive motors: Tokuyama’s aluminum
nitride ceramics Shapal® is used as heat sink
substrates for power semiconductors controllingthe motor output of hybrid cars. The use of
Shapal® enables the longer service life of power
semiconductors and the higher output ofmotors. Shapal® contributes to effective heatdissipation in various electronic devices as well.

Plastic window sashes: The Shanon Window®,
which combines a high-performance plastic
window sash with a double-glazed window, is anenvironmentally conscious product that reduces
the energy consumption of housing and thereby
contributes to a reduction in CO2 emissions.
With triple the thermal insulation properties ofan aluminum-sash, single-glazed window, theShanon Window ® boasts excellent airtight,
sound proof, and moisture condensation proof
characteristics. Moreover, during this product’s
manufacturing process, we are promoting
material recycling by recovering and reusing
plastic offcuts and waste products and minimizing the amount of waste to be disposed of.

Silica: Tokuyama’s silica products are used forwide-ranging applications, including silicone
encapsulants, polishing agents for silicon wafers
and encapsulants for semiconductor packages.

Cement/soil stabilization material: Tokuyama’s cement and soil stabilizationmaterial is becoming increasingly important as a basic material to support safety
and security in people’s lifestyles. Meanwhile, in environmentally advanced cities,buildings are required to have a greater level of heat insulation properties andenergy efficiency. By providing a variety of exterior and interior construction materials, Tokuyama is contributing to eco-friendly urban development.

26

27

Creating Environmental Technologies

Tokuyama’s R&D Facilities Creating Innovative Technologies
Mission of Tokuyama’s R&D

surveys, marketing surveys and quality assurance. Moreover, as a long-term tar-

Recent years have seen rising concerns about environmental and energy issues.

get we aim to develop and commercialize new materials that support an energy

In line with such a trend, innovative materials relating to clean energy andrevolution. Pursuing this target, we are developing innovative technologies thatenergy-saving technologies, including those for solar power generation and LED

center on technologies and materials in areas in which we are highly competitive

lighting applications, are drawing attention from industries across the board.

while cooperating with universities and other research institutions as needed. By

Like those in other industries, Tokuyama’s researchers and engineers are

doing so, we are moving toward the creation of new products and new busi-

required more than ever before to quickly develop new technologies and mate-nesses that offer solutions for future energy issues, in line with our R&D mission.

rials to accommodate needs that change along with advances of the times. The

As for ongoing projects, we are advancing the development of electrolyte

R&D sphere is also increasingly involved in globalization, which in turn, further

materials for use in fuel cells, which are increasingly recognized as a clean

intensifies development competition. Reflecting this, there is a growing need toenergy source, leveraging our strengths in ion exchange membranes and elec-

accelerate R&D efforts in new technological and product areas, further increas-

trochemical technologies. In addition, we aim to supply large diameter sapphireing the difficulty of R&D projects.

single crystal wafers for use in LED chips, utilizing the single-crystal growth

In order to expand its business while contributing to society as a chemical

RC Research Laboratory

technologies that we have accumulated over the years.

Intellectual Property Department

department will strategically manage the Company’s patents and other intellec-

and products ahead of its competitors. To this end, we are focusing on the

Research Department

As a manufacturing company, Tokuyama must create and effectively utilize

tual property rights in Japan and overseas. In doing so, the department will vig-

development of new materials and innovative technologies, utilizing the exper-

We are seeking to strengthen our technological competitiveness to increase theintellectual property to achieve sustainable corporate growth and make social

orously promote the creation of new businesses and strengthening of existingtise we have accumulated over many years in such areas as silicon-related

growth potential of existing businesses while working to create new products

contributions. Tokuyama’s Intellectual Property Department adheres to the basic

businesses toward the realization of Tokuyama’s Centennial Vision, thereby

materials, aluminum nitride and ion exchange membranes as well as crystalli-

and new businesses that may become future growth drivers. To this end, thepolicy of “maximizing the Company’s corporate value through the creation andcontributing to the enhancement of the Group’s corporate value.

zation technologies, electrolytic technologies and fine particle technologies.

Research Department searches for future technologies, next-generation tech-effective utilization of intellectual property.” In line with this policy, theWe will promote efficient and timely R&D, striking a balance between short-,

nologies and new materials. Reflecting the fruits of the abovementioned

Intellectual Property Department works to protect the outcome of themedium- and long-term projects.

search, we are drawing up R&D themes and seeking to create the seeds of new

Company’s R&D activities through the appropriate management of intellectual

As a manufacturer, in addition to cost reductions through the improvement

technologies under these themes. Once a proprietary technology based on suchproperty rights. At the same time, it conducts risk management to ensure thatof manufacturing processes, Tokuyama sees the development of new materials

a seed is established, the Corporate Development Department andthe Company respects the intellectual property rights held by other parties.

and innovative technologies as an ever-present challenge. Through constant

Development Departments in each business division move toward the commer-

inquiry and ceaseless effort, we will continue to contribute positively to a

cialization of new products.

maker, Tokuyama must continue to create “Only One” or “No. 1” technologies

By securing the outcome of product and technology R&D—the crystallizationof the wisdom of Group researchers—through the establishment and manage-

R&D Expenses(¥ billion)

14
12

namely, “information and electronics,” “environment and energy” and “lifeto maintain the competitiveness of Tokuyama’s operations. Moreover, theR&D Structureand healthcare,” and seek to fully utilize materials and technologies in areas indepartment implements intellectual property strategies closely linked with busi-

With regard to its R&D structure, Tokuyama’s Research & Development Division

which the Group is highly competitive. On the other hand, we also proactively

ness and technological strategies to maximize the utilization of its intellectual2

is in charge of medium- and long-term research and development and theseek to introduce technologies from external organizations such as universities,

property portfolio. As the Tokuyama Group bolsters business globalization, the0Company maintains both a Development Department and a Planning Department

when we find those technologies necessary.
Moreover, drawing on a wide range of technologies we are striving to

R&D projects that place particular emphasis on relationships with its customers.

enhance our technical capabilities by creating synergies in close cooperation

In addition, the Research & Development Division’s subordinate departments,

with Development Departments placed at each business division and technology

including the Intellectual Property Department and RC Research Laboratory,

development sections of our affiliates.

support corporate-wide R&D activities.

Tokuyama’s R&D Organization

Corporate Development Department
The Corporate Development Department maintains its independence from

Cement Business Div.

Development Dept.

Chemicals Business Div.

Development Dept.
Development Dept.
Fine Chemicals Development Dept.

Research & Development Div.

Research Dept.

new product in fiscal 2017, the year of Tokuyama’s centennial anniversary,

Manufacturing Technology Div.

Corporate Development Dept.

individual project teams are steadily pursuing development themes with an eye

Management of Technology Div.

Intellectual Property Dept.

ucts and businesses that will support the sustainable growth of the TokuyamaGroup. Setting their sights on achieving the medium-term sales targets of eachto the commercialization of new products.

President

Specialty Products Business Div.
Independent Business Management Div.

Tokuyama’s business divisions and undertakes R&D projects to create new prod-

11.8

11.4

11.4

11.7

09

10

11

12.2

8

ment of intellectual property rights, the Intellectual Property Department strives

in each business division. Through these departments, the Company is advancing

11.1

10

As we search for R&D themes, we are focusing on three growth fields,changing society—this is the mission of our R&D activities.

10.7

6
4

06

07

08

12 (FY)(plan)

Tsukuba Research Laboratory

Tokuyama Research Laboratory

RC Research Laboratory

The Tsukuba Research Laboratory is situated in thepeaceful setting of Tsukuba Science City in Ibaraki
Prefecture. This laboratory conducts research on
fundamental and advanced technologies from a
medium- and long-term perspective while promoting
research in medical products and organic fine chemicals. Also, the laboratory goes beyond basic R&D forfunctional materials, performing applied R&D forsystems and services.

Located within the Tokuyama Factory site, theTokuyama Research Laboratory is in charge of theCompany’s core R&D. Taking advantage of its close
proximity to the Tokuyama Factory, this laboratory
incorporates requests from business divisions into its
product development in a timely manner. Coveringwide-ranging fields—from basic chemical products
to cement—the laboratory undertakes basic andapplied R&D as well as process development.

Positioned under the Research & Development
Division, the RC Research Laboratory focuses on thedevelopment of cutting-edge technologies to analyzematerials while supporting R&D activities aimed atcreating new businesses that will underpin the future
growth of the Tokuyama Group. To enable Tokuyama
to protect the global environment and promote business activities centered on product safety, this laboratory applies its expertise in environmental analysis
and risk assessment, maximizing the effectiveness of
the Group’s Responsible Care activities.

RC Research Laboratory

While working together as one toward the commercialization of new prod-

Tsukuba Research Laboratoryucts, the members of each project team not only pursue the development ofTokuyama Research Laboratory

innovative technology, but also take into consideration factory construction

R&D Planning Dept.
Research & Development Quality Assurance Dept.

28

29

The factory’s tallest smokestack is 200 meters high andis a popular landmark of local residents

Integrating
Tokuyama Bolstering International Competitiveness

Developing the Tokuyama Factory into Our “Mother Factory”

Sophistication in System and Process Integration

We are working to improve the productivity at our Tokuyama Factory and on a

The Tokuyama Factory is located within the Shunan Petrochemical Complex inGroupwide scale through the reestablishment of manufacturing and information

Shunan City, Yamaguchi Prefecture, and it is the Company’s core production base,infrastructures. To strengthen our manufacturing infrastructure, we have positioned

integrating diverse manufacturing operations. The Tokuyama Factory consists of thethe factory as the Company’s “Mother Factory” responsible for the Tokuyama

Higashi Plant, which produces polycrystalline silicon and organic chemicals, theGroup’s technologies and expertise. Based on this positioning, the Tokuyama Factory

Tokuyama Plant, which mainly produces soda ash and other inorganic chemicals,

will accelerate collaboration with the Kashima Factory and other factories operated

and the Nanyo Plant, which produces cement. These plants and production facilities

by Group companies. The Tokuyama Factory boasts advantages in the manufacturing

work together to effectively use raw materials, products and by-products, and the“The Tokuyama Factory is always on the side of local communities ofprocesses and technologies required to launch mass production after product devel-

Tokuyama Factory has constantly pursued its vision of becoming an integrated pro-Shunan City.”

opment is completed. We will leverage these advantages—fostered through opera-

duction base, where energy, materials and technologies support close links amongtions at the frontlines of manufacturing technology development—to expand ourdifferent businesses.

The sources of competitiveness of our Tokuyama Factory are theunparalleled energy efficiency and superior technologies that we havenurtured at the frontlines of manufacturing operations. With pride anda strong awareness of being one of the largest plants in Shunan, thebirthplace of the Company, we are providing society with high-quality,
highly efficient products while paying the utmost attention to safety.
Placing top priority on remaining a factory that deserves the trust of
local communities, we are solidifying the foundation of the Tokuyama

global operations. In addition, Tokuyama will optimize its production network andAt the heart of the integration at the Tokuyama Factory is its in-house power

promote cost reductions and awareness-raising through steady, thorough rational-

plant, which boasts one of the largest capacities in Japan at 552,000 kilowatts. The

ization, thereby bolstering its international competitiveness—a growth strategy

electricity and steam generated are supplied through power lines and pipes to eachunder its Centennial Vision.

plant. In addition, the Tokuyama Factory has been making exhaustive efforts to recy-

To enhance its information infrastructure, Tokuyama has been promoting thecle waste generated from within and effectively use such waste as fuel and raw

introduction of an enterprise resource planning (ERP) system Groupwide. Throughmaterials for cement production. Thanks to these efforts, the Tokuyama Factory

the reinforcement of management accounting, we will work to improve the produc-achieved a zero-emission rate of 99.9% in fiscal 2011.

tivity not only in our manufacturing divisions, but also our back office divisions.

Factory as a Mother Factory of the Tokuyama Group.

30

31

Integrating with Communities

Tokusou Bridge

Creating a Factory That Interacts Proactively with Local Communities

river is known as a good fishing spot for Chinu (black sea bream)

A bridge over the Tonda river, 145 meters in length. This stretch of theamong local fishing fans.

Tokuyama Factory Tour Map
Tokuyama’s manufacturing operations originated inLeads to Shunan Bulk Terminal Co., Ltd. (see page 38 and 39)

Shunan City (the former Tokuyama City). With theHigashi Plant: organic chemicals
and electronic materials

pride of being one of the largest plants in Shunan, we

Members of women’s associations toured thefactory after the dialogue

Nanyo Plant: cement

are providing society with high-quality, highly efficient

8

products while paying the utmost attention to safety.

Polycrystalline silicon plant

Tokuyama Factory RC Community Dialogues
On August 18, 2011, the fiscal 2011 RC Community

With the aim of creating a factory that interacts proac-

Dialogue took place at Tokuso Kaikan. With thetively with local communities, we have been promot-

Yamaguchi Eco-tech
Corporation

ing communication with local people through suchobjective of gaining the understanding of community associations around the Tokuyama Factory

initiatives as inviting them on factory tours, aiming toconcerning the Company’s environmental, safety

gain the confidence of local society.

and disaster prevention efforts, this event was the1Tokuyama Plant: inorganic chemicals

eighth of its kind. In addition, this dialogue invited

Cement kilns

women’s associations, following in the footsteps ofFactory Tours for Employees’ Families

the third dialogue, which was held five years ago.

A factory tour for employees’ families was held on

The event drew 27 participants from women’s

5August 22, 2011, welcoming 63 people from 23
families wishing to see their loved ones at work,2

community associations and two from the Shunan

Plant for making waste plastic-based fuelCaustic soda manufacturing plant

City Government. Ms. Tsubokane, chief of thesomething they do not usually get to see. After abriefing on the Company sprinkled with quizzes,

3UNs4OX #O ,TD

participants climbed aboard a bus and the tour

Undersea tunnel

Government, delivered a presentation on the environment of Shunan City. From participants, weSalt piles

began. As the tour bus neared the gigantic smoke-heard such comments as “I was impressed with4

stacks and huge piles of salt, cheers broke out from3

the children. Later, such comments as “my dad
looked good when he was working,” “it is amazing

Environmental Policy Division of the Shunan City

Tokusou
BridgeCentral power plant
3UN !RROW +ASEI #O ,TDhe can work in such a hot place” and “I would liketo join Tokuyama when I grow up” were heard
from the children. It was impressive to see that

Tokuyama’s prompt actions against the problemsof noise and dust,” “I was surprised to see theTonda Riverfactory is so clean,” “I feel safer now after hearing

7

about the fully equipped disaster prevention facili-

4OKUYAMA 0OLYPROPYLENE #O ,TDties and superbly trained staff” and “I would likeVinyl chloride monomer plant

Soda ash plant

Tokuyama to continue operations aimed at inspir-

6

they became even prouder of their parents aftering the dreams of children.” Looking ahead, weseeing them in the workplace.

will continue to pursue our voluntary management
activities to remain a factory that deserves thetrust of local communities.

From thefront entrance

Front entrance

S
START!!

Tokuyama station

3HUNAN 3WIMMING #LUB #O ,TD
(utilizing waste heat)

Families participated in the factory tour

1 Cement kilns

2 Plant for making waste plastic-based fuel3 Central power plant

4 Salt piles

5 Caustic soda manufacturing plant

6 Soda ash plant

7 Vinyl chloride monomer plant

8 Polycrystalline silicon plant

Our cement production plant is contributing significantly to the enhancement of
the Tokuyama Factory’s zero-emission rate.

Waste plastics crushed at this plant are used for fuel incement production.

All of the electricity needed to run the Tokuyama Factory
is covered by in-house power generation, which is a corefunction of the factory. The plant stably supplies low-costenergy to other plants in the factory.

Salt is essential to the production of
Tokuyama chemical products. Transported
from Mexico and Australia, salt is directly
offloaded at the factory dock called the “saltwharf” from large cargo vessels.

This plant is equipped with the latest “zerogap electrolyzers.”

The soda ash plant is where Tokuyama’s operations
began. Soda ash is a basic raw material for such products
as glass and soap and is utilized in a variety of otherindustrial fields.

Utilizing chlorine gas, which is a by-product of the caustic
soda production process, this plant manufactures a raw
material for vinyl chloride resin.

The polycrystalline silicon manufactured at
this plant is an essential material used insilicon wafers for semiconductor applications
and solar panels.

32

33

Unit Consumption of Waste and By-Products

Integrating with Communities(kg/tonnes of cement)

A Recycling Approach That Is Responsive to the Needs of Society

500

430

424

414

07

08

09

430

446

400

300

277

Recycling System in the Nanyo Plant’s Cement Production
200

Local governments
Incinerated ash

100

Yamaguchi
Eco-tech
Corporation

0

91

10

11

(FY)

Raw
material
crusher

Natural resources

Preheater

Limestone

Raw material powder silo

Raw material dryer

Local governments

Silica stone

Outside corporations

Sewage sludge

Outside corporations
Slag

Outside corporations

SludgeCoal ashConstruction waste soil

In-house

Waste plastics

Outside corporations

In-house

Preincineration

Organic sludge

Waste plastics

Waste liquid

In-house

Coal ash

Organic sludge

Kiln

In-house
Incombustible caustic lime
SludgeNatural resources

Construction waste soil

Coalcrusher

Coal

Clinker silo

Outside corporations

Outside corporations

Waste carbon

Plaster
Finishing crusher

In-house
Plaster
Material and Thermal Recycling Volumes(1,000 tonnes)

Main raw materials

Main energy source

Alternative raw materials

Alternative energy sources

2,000

Proactively Accepting Waste from Local Communities
and Other Companies(1,000 tonnes)

2,500

2,100

1,500

Since the start of its operations, the Nanyo Plant, a cement production basegenerated through the business activities of other companies, including

within the Tokuyama Factory, has been promoting the reuse of by-products andslag from steel manufacturers, coal ash from power companies and sludge

waste—such as incombustible caustic lime from the Company’s soda ash plantfrom paper manufacturers. In particular, Tokuyama has proactively developed

and coal ash from the in-house power plant—as alternative raw materials fortechnologies for reusing burnable waste, including waste plastics, to reduce thecement production. In addition, the Nanyo Plant proactively accepts a signifi-

use of fossil fuels. Having developed a technology to enable the stable injection

cant volume of waste and by-products from local communities and outside cor-of large quantities of crushed plastics from the front of its cement kiln, in 1999

porations, promoting a recycling approach that is responsive to the needs ofTokuyama became the first Japanese cement maker to establish a plant withsociety. For example, the Nanyo Plant accepts sewage sludge as well as inciner-

waste plastic crushing and combustion facilities. The Company has continued toated ash generated from household waste from local governments within andexpand the plant’s crushing capacity ever since and the plant is now equipped

outside Yamaguchi Prefecture for reuse as alternative raw materials for cement.

with seven crushing machines as well as three combustion lines that enable itMore specifically, incinerated ash generated at local incineration plants is sentto accept more than 100,000 tonnes of waste plastics a year.

to Yamaguchi Eco-tech Corporation, which then removes chlorine and other

The temperature in the cement kiln reaches 1,800 degrees Celsius. At thissubstances unwanted for cement production from the ash to improve ash quality

high temperature, the waste used as an alternative thermal energy source is

1,561
82

0

75

80
70

67

completely combusted, leaving only ash, which is then used as an ingredient

70

25

4

for cement. This makes our cement kiln quite unlike typical incinerators in thatit generates no burnt residue. Therefore, it can be said that the abovementioned recycling and reusing methods are ideal technologies as they produce

07

08

Material recycling volume

Low-moisture sludge facilities

34

100

1,610

50

91

Cement shipment

1,430

1,000

500

Cement silo

1,947

1,550

to a level sufficient for reuse. The Nanyo Plant accepts this processed ash.
The Nanyo Plant also accepts and reuses a variety of waste and by-products

125

09

10

11

(FY)

0

no hazardous substances emissions or secondary waste.

Thermal recycling volume

High-moisture sludge facilities

Coal ash facilities

35

Integrating with Communities

Process Safety, Disaster Prevention and Occupational Health and Safety
Tokuyama believes that safety is an essential part of business activities andthat ensuring safety is the first step in achieving coexistence with society. In
taking this stance on safety, Tokuyama thoroughly conducts process safetyand disaster prevention activities as well as occupational health and safety
efforts. By doing so, the Company endeavors to prevent accidents and disasters while striving to provide a favorable working environment.

Commitment to Safety and Disaster Prevention• Encouraging Voluntary Safety Activities

Commitment to Occupational Health and Safety• All-Inclusive Safety and Disaster Prevention Activities

The Tokuyama Factory is accredited as a certified safety inspection operator and• Promoting the Safety Management System

Tokuyama has three safety principles. According to these principles, safety is,a certified completion test operator for twelve facilities pursuant to the High

Tokuyama has established Occupational Health and Safety Management

By holding active dialogues on safety, Tokuyama and its contractors share theirin the first instance, a social responsibility to be met as a corporate citizen.

Pressure Gas Safety Act and is qualified to continuously operate boilers andSystems for individual factories, laboratories and offices. The systems were put

wisdom and eliminate potential risks associated with work in the field, thereby

Second, safety is given priority over all other business activities; and third,other equipment.

into operation in fiscal 2003. In fiscal 2005, the Tokuyama Factory upgradedcollaboratively promoting safety management activities. These activities include:

security can be achieved by the fact that all staff members have a responsible
attitude and engage in responsible activities.

• Implementation of Safety and Health Activities in Concert
with Contractors through Active Dialogues on Safety

In fiscal 2010, we renewed our accreditation under the High Pressure Gas

such a system into a comprehensive Safety Management System to additionally

1. General joint meetings on safety and health in which employees of both

Safety Act. Moreover, we renewed and additionally obtained certification allow-

support process safety activities. This factory continues to make improvements

Tokuyama and its contractors participate as well as departmental joint

In line with these principles, we make painstaking efforts to ensure theing the biennial open inspection of boilers and other facilities in fiscal 2011by performing risk assessment in terms of work, facilities and processes with ameetings on safety and health that involve dialogues aimed at enrichingsafety of facilities and processes. Specifically, we continually strive to improveand submitted to an on-site investigation assessing our eligibility for quadren-

view toward completely removing potential risk factors.

training on and support for safety

our level of security control, identify the sources of hazards and enrich ournial open inspection (Under Japanese law, unless otherwise certified, industrial

To enhance safety management to the level required for voluntary safety

security education and training. Accordingly, we promote such efforts as safety

boilers must be inspected annually). In addition, we implement the plan-do-

management accreditation, we have enlarged the scope of risk assessment

patrol operations, Kiken Yochi (KY) hazard prediction activities, Hiyari Hatto

check-act (PDCA) cycle in safety management with complete consistency. While(reporting issues to be addressed by Hiyari Hatto accident prevention activities

accident prevention activities, the five-S activities,*1 as well as the practice ofraising the awareness of safety among all workers, we endeavor to preventand conducting risk assessments of such issues) while reviewing and improving

pointing and calling a name out loud. In addition to these basic activities, we

accidents and disasters.

the measurement process to determine the effects brought by changes ofoperate and continuously improve risk management and crisis management• Efforts to Maintain the Safety Performance and to Prolong

safety management methods. In fiscal 2011, the Company invested aboutsystems.

the Accident-Free Period

We have also launched a project for formulating countermeasures against

Our safety and disaster prevention activities have been promoted to meet the goals

earthquake and tsunami at the Tokuyama Factory in response to the occurrenceof achieving a zero-accident and zero-disaster status by creating and nurturing aof the Great East Japan Earthquake. Current project activities include discus-

safety-oriented culture while ensuring the safety of people, facilities and society.

sions now under way from the viewpoint of disaster prevention.
Moreover, we renewed our full-size fire engines that carry special chemical
agent equipment and introduced video transmission devices to enrich our

In fiscal 2011, we invested about ¥430 million for the purpose of safety
In addition to safety management activities based on comprehensive line
management, the Tokuyama Factory has developed safety activities under the*1 Five-S activities: An initiative to ensure the five-S features at the workplace. The five-S’s

Safety Day initiative. We also proactively held dialogues on safety with our con-refer to Seiri (tidy), Seiton (organized), Seiketsu (clean), Seiso (cleaning) and Shitsuke

tractors. However, one on-the-job accident forced a Tokuyama employee to take(disciplined).

a leave of absence while a similar incident involved contractors, preventing us

for the inspection of facilities
3. Safety patrols at construction sites, including joint patrols to provide training and support
4. Hazard experience education and training, dialogues on safety, training andsupport for each section.

¥240 million to enhance and strengthen occupational health and safety.

In these ways, Tokuyama is striving to safeguard all personnel working at its

Trend in the Accident Frequency Rate*2

plants from accidents and disasters.
• Maintaining a Favorable Working Environment

2.5

1.85

1.95

1.90

With the goal of ensuring a comfortable working environment conducive to

1.83
1.75

2.0

1.62

1.61

good mental and physical health, we implement such steps as continually

1.62

taking measurements at worksites where specified chemical substances andand disaster prevention.

disaster prevention system.

2. Safety checks at the worksites of contractors and training on and support

1.5

1.10
0.88

0.90

0.88

0.84

organic solvents are handled. Our industrial doctor inspects these worksites

0.88

1.0

0.72

and we take other steps to improve facilities and working methods.

0.72

At present, all worksites at every factory, laboratory and office fall under
0.67

0.5

0.27

0.00
0.0

0.26

0.26

0.00

04

05

06

07

0.25

Control Category I.*4 We have introduced tighter voluntary standards for the

0.00
09

08

10

11

(FY)

purposes of improvement.

• Disaster Drills

from accomplishing the target of completely eradicating on-the-job accidents.

Tokuyama conducts a variety of disaster drills including general disaster drills in

An accident occurred at the Kashima Factory as well, ending an unbroken*2 The accident frequency rate refers to the number of workers forced into absence

guidance through face-to-face counseling based on the results of health check-tandem with the Shunan City Government.

record of 26 zero-accident years dating back to its inauguration. On the otherthrough industrial accidents per one million cumulative working hours. This reflects

ups and issued written notifications to encourage those who failed to undergo

hand, the Tsukuba Research Laboratory has maintained its zero-accident andzero-disaster status for 14 years.
We will continue our efforts to protect all workers from accidents.

All industries

Chemical industries

TokuyamaTthe frequency at which industrial accidents occur.

a recommended complete checkup to do so. Consequently, a large number ofTrend in the Accident Severity Rate*3
0.15

employees underwent secondary health checkups. As for measures against
mental health problems, we conducted an online survey on occupational stress

0.13
0.12

0.12

0.12
0.11
0.10

that covered all Tokuyama staff. Based on the survey results, our medical care

0.11

0.10

personnel offered treatment to those who seemed to be having problems.

0.10

0.07

0.06

0.07

0.09

0.04

*4 Control Category I refers to the state in which the concentration of hazardous sub-0.09

stances in the atmosphere does not exceed the standard control concentration inmost (at least 95%) worksite units. There are three control categories, namely I, II

0.04 0.04

and III. Control Category I corresponds to the most desirable condition.

0.05

0.022 0.020
0.000
0.00

0.000 0.000

04

05

06

All industries

The New Year’s Fire Review (January 20, 2012)36

Safety Audit (Kashima Factory)

To combat lifestyle related diseases, in fiscal 2011, we provided health

07

08

0.005
09

Chemical industries

0.015
0.000
10

11

(FY)

TokuyamaT*3 The accident severity rate refers to the number of lost work days per one thousand
cumulative working hours. This reflects the magnitude of industrial accidents thathave taken place.

37

Integrating with Communities

Expanding Infrastructure to Support the Development ofLocal Communities
Tokuyama’s Procurement Policies

Promotion Port* and Shunan Bulk Terminal took on the role of developing the

Tokuyama’s Purchasing & Logistics Department adheres to procurement

facilities required to handle cargo distribution. In April 2012, following the com-policies emphasizing: (1) stability; (2) strict compliance; (3) eco-friendliness;pletion of the facilities, Shunan Bulk Terminal launched full-scale operations.

and (4) economic efficiency. Tokuyama heavily relies on overseas suppliers for

Shunan Bulk Terminal rents the whole of public wharf and cargo handlingthe procurement of the raw materials and fuels it uses. Therefore, it is importantarea from the governments involved and handles such business as the storage

how we meet these policies through our procurement operations, particularly

and shipment of bulk cargoes. The large-scale harbor infrastructure components

those undertaken with overseas suppliers.

it operates include a 14-meter-deep berth. This enables us to use over-Panamax
cargo vessels with a 90,000-tonne capacity, approximately double that of the

Coal—An Essential Fuel Powering the Tokuyama Factory

bulk carriers we previously used.

One of the foundations of our “mother” Tokuyama Factory is its in-house power

Because of the large scale of each shipment of fuel, we are able to reduce

generation capability, which supplies the substantial amount of electricity

procurement costs and thus further strengthen the international competitive-

required to run its manufacturing and other operations. This low-cost energy

ness of the Shunan Petrochemical Complex.

source makes the factory internationally competitive. The power plant is* The aim of the Waterfront Industrial Area is to enhance transportation efficiency forcoal-fired, consuming approximately two million tonnes of coal per year, all ofwhich is imported using large bulk carriers including 90,000-tonne bulk carriers,
the largest among ships of this kind. The procurement of coal with strict adherence to the aforementioned policies requires that we continually work to develop
and augment our transportation infrastructure. In the following section, we
introduce our initiatives to develop such infrastructure.

Strengthening Tokuyama’s International
Competitiveness and Revitalizing the Shunan Areabulk and other cargo through strengthened cooperation between the wharf operated

View of the coal storage yard from the shipping facility

Location of Internationally Strategic Bulk Cargo Ports

Shunan Bulk
Terminal Co., Ltd.

by private businesses and adjoining areas. The purpose of establishing the Waterfront
Industrial Area Promotion Port, as designated by the Ministry of Land, Infrastructure,
Transport and Tourism, is to augment the international competitiveness of Japan’s

Yoshito Kawamura

Hiroshima Prefecture

local industrial sectors by establishing Waterfront Industrial Areas upon the application

We Strive to Please Cargo Owners
President, Shunan Bulk Terminal Co., Ltd.

of port management bodies.

Internationally Strategic Bulk Cargo Port

Tokuyama
Corporation
Purchasing &Logistics
Department

In managing this company, we would like to

Yamaguchi Prefecture

make cargo owners in the Seto Inland Sea
feel the benefits of utilizing our services, so

Teruyuki Sumiji

we are making efforts to reduce storage

Tokuyama Factory

Toward Stable Procurement
Ube Port

Tokuyama
Kudamatsu Port

fees by increasing our annual handling
capacity for bulk cargo from two million

Ehime Prefecture

tonnes to more than three million tonnes

General Manager, Purchasing & Logistics Department

In recent years, the size of the bulk carriers used to transport coal has increased

as soon as possible. We believe that by

Our goals in purchasing activities are to

doing so, we can strengthen the interna-

worldwide. The larger the carrier, the more coal it can carry and the greater theensure stable procurement and minimize

tional competitiveness of the Shunan

reduction in transportation costs. On the other hand, such bulk carriers cannot

procurement risk through fair and friendly

Petrochemical Complex and contribute topartnerships with our suppliers. Not only athe local economy.

operate without sufficiently deep harbors and docks equipped with thematter of delivery time, stable procure-requisite infrastructure, including a quay wall.

ment includes reliability with regard toquality, compliance with the law and the

In many locations overseas, harbors boast large-scale dock infrastructure

maintenance of fair prices. Further, we constantly strive to achieve greater transpar-

capable of accommodating bigger vessels. In Japan, however, such infrastruc-ency, fairness and appropriateness withture is less common so shippers must use smaller vessels. This negatively
impacts the international competitiveness of Japanese industry.
In 2008, Shunan Bulk Terminal Co., Ltd. was established with the aim ofstrengthening the international competitiveness of the Shunan Petrochemical
Complex and contributing to the local economy. In the same year, Tokuyama
Kudamatsu Port was designated as the nation’s first Waterfront Industrial Area

90,000-tonne bulk carrier38

regard to our purchasing activities in thecourse of our daily business, all with the aim of accomplishing and surpassing
our aforementioned goals.
As for overseas procurement that enables us to enjoy the benefits of yen
appreciation, we recognize the importance of striking a balance between
keeping costs low and controlling risk.
Having launched the full-scale operation of Shunan Bulk Terminal in spring
2012, we aim to strengthen Tokuyama’s international competitiveness by
reducing procurement costs.

View of the carrier’s deck from the wheelhouse

Offloading coal

The Waterfront Industrial Area Promotion Port andInternationally Strategic Bulk Cargo Port
Shunan Bulk Terminal holds a long-term rental contract for a public wharf inTokuyama Kudamatsu Port, which was designated as the nation’s first
Waterfront Industrial Area Promotion Port in 2008, and has been proceedingwith the development of the site.

Outline of Shunan Bulk Terminal Co., Ltd.
Location: 8, Harumi-cho, Shunan-shi, Yamaguchi Prefecture, Japan
Capital: ¥150 million
Employees: 26 (as of March 31, 2012)
Shareholders: Tokuyama Corporation, Idemitsu Kosan Co., Ltd.,
Tokuyama Kairiku Unso K.K.,
Zeon Corporation and the Shunan City Government
Coal storage capacity: 1,000,000 tonnes (planned)
Cargo off-loading capacity: 30,000 tonnes per day (from cargo vessels); to be

In May 2011, the port was also designated as an “Internationally Strategic
Bulk Cargo Port” by the Ministry of Land, Infrastructure, Transport and Tourism,

increased to 45,000 tonnes per day from April 2013
Shipment operation: 24 hours a day, using both trucks and ships
Others: Equipped with four foreign matter inspection devices

along with Ube Port, which is situated in the same prefecture.

Piling up coal for storage

Loading a domestic vessel for shipment

Taking temperature measurements of coal piles

39Integrating with Communities

Making Ongoing Contributions to Local Society through Small Acts
Saishokai* Volunteer Tour at Tono City

perspective, unavailable solely through work, on local community; some mem-

’11 Kagawa Chemistry Show—The Exciting World of

To support reconstruction in coastal areas of Iwate Prefecture which werebers have even found their own outlook on life transformed. Looking ahead, we

Chemistryheavily devastated by the Great East Japan Earthquake, the member companies

will pass on this precious activity to younger generations and pursue volunteer

This annual chemistry show was held from August 26 to 28, 2011 at Tenmaya

of Saishokai supported volunteer activities in Tono City.

activities deeply rooted in the local community.

Department Store in Takamatsu City, Kagawa Prefecture.
Sponsored by the Chugoku/Shikoku Branch of the Chemical Society ofFive Tokuyama staff members participated, including one who has relatives
directly affected by the earthquake and had previously engaged in similar activ-

Forest Volunteer Activities: The Meeting for Exchange

Japan, the show was co-hosted by the Tokuyama Science Foundation. The 26

ities twice. The participants began by taking a night bus to an accommodation

among the City, the Forest and the Water

booths in the show held exhibits presented by Kagawa University, academic

facility for volunteers that was run by the NPO “Tono Magokoro Net.”The 15th Meeting for Exchange among the City, the Forest and the Water, ainstitutions and companies.

On the first day, participants cleared debris in Akahama District, Otsuchi-cho,project for creating a forest for water conservation, took place under the aus-

Tokuyama’s booth demonstrated how to make fuel cells as well as

which was devastated by a massive tsunami and a huge fire following thepices of the Yamaguchi Prefectural Shunan Agriculture and Forestry Office at

Karumerayaki sugar cookies. Of the 4,000 children who visited the show overearthquake. This district, where more than 1,300 residents were deemed deadthe municipal Fureai-no-Mori forest at Susuma, Shunan City.

the three days, 1,200 took part in experiments at Tokuyama’s booth. It wasor missing due to the earthquake, became well known as the place where a

Aimed at securing a stable supply of high-quality water by creating a forest

inspiring to see the serious expressions on their faces turned into smiles withpleasure ship ran aground atop a guest house, footage of which was aired onserving as a green dam, which is among the multiple functions of forests, thistheir eyes brightening as the Karumerayaki sugar cookies swelled up and when

the news day after day. On the second day, the volunteers headed to Kamaishi

volunteer program included the removal of weeds that impede the growth offuel cells made the LEDs light up.

City in which two “miraculous schools,” Unosumai elementary school andtrees, pruning, thinning, and the planting of broad leaf trees. Tokuyama has

Kamaishi Higashi junior-high school, are located. The miracle was that althoughbeen proactively participating in this program since 1997. At the meeting held

both these schools were situated in coastal areas gravely damaged by tsunami,

in 2011, some 247 participants, including 144 Tokuyama staff members, took

all 570 students of the schools were evacuated safely.

part in the project and worked under the guidance of forestry instructors.

Tokuyama’s booth at the Kagawa Chemistry Show, where children experienced
Karumerayaki

Tokuyama Science Foundation
The Tokuyama Science Foundation was establishedWe acknowledge that such volunteer activities that take place over only aon September 19, 1988, to commemorate the 70thfew days and sometimes called “volunteer sightseeing” will never be as effective

anniversary of Tokuyama’s founding. This mission ofas the long-term activities undertaken by volunteers from all over the world.

the foundation is to offer financial support for

Nevertheless, we did our best to pay the utmost respect to the souls of thoseresearch into new materials and related subjects in

who died.

science and technology, and to raise awareness of

Research grants: ¥679 million to 349 recipients
The foundation offers research grants to young researchers aged 45 or younger atuniversities and research institutions in Japan. After the financial support period, aresearch presentation meeting takes place with the participation of all recipients.

Cumulative total financial support
from fiscal 1988 to fiscal 2011:¥815 million¥81

science and technology, thereby enabling socioeco-

The foundation subsidizes the participation of young researchers aged 45 or younger
at universities and research institutions in Japan at overseas meetings. After returning to Japan, the recipients are required to submit reports on the results.

nomic development and the improvement of people’s lives.

Financial support for international symposia:¥19 million to 42 projects

The foundation has to date offered a cumulative
Forest volunteer activities, the Meeting for Exchange among the City, the Forest
and the Water

total of ¥815 million for 710 projects. Many who

The foundation provides financial support for the operations of international conferences to enable researchers to exchange information with peers overseas.

enjoyed support from the foundation as youths are“Mikage” Book Donation Program

today leading professors at universities nationwide.

Grants for campaigns on science and technology:¥48 million to 59 projects

Through this program, which marked its 35th anniversary in 2011, we have been
donating book coupons to elementary and junior high schools in Shunan City.

The foundation backs campaigns that present the excitement and wonders of scienceand technology to children. The Chugoku/Shikoku Branch of the Chemical Society ofJapan plays a central role in organizing a series of exhibitions titled “An Exciting
World of Chemistry” in the summer vacation season. In Yamaguchi Prefecture, there
are “invention clubs” for boys and girls operating in seven cities, towns and villages.

The program title “Mikage” reflects two things: the Tokuyama Factory’s
Saishokai volunteer tour held at Tono City
* Saishokai is a group of companies that was founded in 1953 in recognition of the virtues of Katsujiro Iwai, the founder of the Iwai industrial group, to deepen cooperationand friendly relationships among member companies. The group was named after apart of Mr. Iwai’s Buddhist name, “Saisho-in.” At present, the group consists of thefollowing nine companies: Kansai Paint Co., Ltd.; Daicel Corporation; Toabo
Corporation, Tokuyama Corporation; Nisshin Steel Co., Ltd.; Japan Bridge Corporation;
NHK Spring Co., Ltd.; FUJIFILM Corporation; and Sojitz Corporation.

address, at 1-1 Mikage-cho; and the Japanese term “Okage” (the Chinesecharacters for “Mikage” can also be pronounced as “Okage”) meaning indebtedness and gratitude.

Cumulative Total of Grants and Financial Support

In 2011, Tokuyama donated ¥100,000 each to 47 schools. With this year’s
donations, the amount of donations to date, including book coupons and bookshelves, totaled ¥175.35 million.

Financial support for international exchange:¥69 million to 260 recipients(¥ million)

1,000

Invention club for boys and girls
800“Mochitsuki Zosan” Volunteers Held a Charity Bazaar
600

for Reconstruction
In fiscal 2011, Mochitsuki Zosan, a group of volunteers from among

400

Tokuyama’s staff members, held a charity bazaar to support reconstruction
200

from the Great East Japan Earthquake. It was impressive to know so many
people have the kind heart to support those who were devastated. Mochitsuki
Zosan was started 29 years ago. Through its activities, we gain a broader

40

3
Mr. Yamada, General Manager of the Tokuyama Factory,
handed the Mayor of Shunan, Mr. Kimura, the list of contribution

All the recipients of research grants in fiscal 2010

0

37

73

109

143

180

215

250 283313

404
343 374

440

474

515

550

585 620

656

704

741

777 81588 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 (FY)41

Fiscal 2011 Results of Environmental Preservation Activities (Tokuyama Factory)

Promoting Environmental Management

Category

Tokuyama’s Environmental Management:
Performance for Fiscal 2011

Items
AtmosphereTokuyama strives to obtain accurate data on the input and output of materials and substances in its business activities and reduce the environmental impact of these activi-

27%

҂

±0%

±0%

−5%

쎻

±0%

−2%

쎻

±0%

Phosphorus (Compared to the average
emission from fiscal 2008 to 2010)

±0%

−7%

쎻

±0%

PRTR

PRTR (Compared to the average emission
from fiscal 2008 to 2010)

±0%

−5%

쎻

±0%

EnergyConservation

Unit Energy Consumption Index(Compared to the fiscal 1990)—*

24% lower than the fiscal 1990 level쎻

24% lower than the fiscal 1990 level

Maintain at 94%

94%

쎻

Maintain at 94%

Maintain at 99.9%

99.9%

쎻

Maintain at 99.9%

Global Environment
RecyclingConservation
Waste Reduction

ties to meet its environmental targets.

Fiscal 2012 Target±0%

Protecting the Global Environment

Tokuyama’s Environmental Performance for Fiscal 2011

±0%

Rating

COD (Compared to the fiscal 2010)
Water Quality

on environmental perspectives in all of its business activities.

Fiscal 2011 Result

Nitrogen (Compared to the fiscal 2010)

Environmental
Impact Reduction

One of our most important corporate social responsibilities is to actively protect the global environment. Tokuyama practices environmental management with an emphasis

Fiscal 2011 Target

Soot and Dust (Compared to the average
emission from fiscal 2008 to 2010)

Rating: 쎻 : Satisfied; ҂: Not satisfied

Rate of Effective Waste Utilization

Zero Emission Zero-Emission Rate

In fiscal 2011, Tokuyama satisfied its targets for water pollutant reductions, PRTR, energy conservation, recycling and zero emissions.
* Tokuyama did not set an energy conservation target for fiscal 2011. The Company has set the target for fiscal 2012 at “24% lower than the fiscal 1990 level.”

Major environmental investments in fiscal 2011 included the installation of new

Environmental
Accounting

neutralizing facilities, the replacement of existing neutralizing facilities and thereplacement of existing facilities for the treatment and stabilization of waste.

To accurately grasp and analyze the amounts of investments and costs
associated with environmental preservation activities and improve theeffectiveness of environmental investment, Tokuyama has implemented
environmental accounting since fiscal 2000.

Economic Benefits
To analyze the economic benefits, we calculate nothing but the real benefits ofgains on reduction in energy consumption, gains on sale of valuable waste, gains on
reduction in waste disposal costs through waste recycling, and gains on reduction inraw material and fuel costs through waste recycling. Thus, Tokuyama does not calcu-

Environmental Costs

late de facto economic benefits based on estimates whatsoever.

Of Tokuyama’s total environmental investment during fiscal 2011, investments relating

Flow of Materials in Business Activities(Unit: 1,000 metric tons)

to pollution control and global environmental conservation activities accounted for
76% and 12%, respectively. At the same time, investments relating to social activities

In fiscal 2011, Tokuyama achieved economic benefits totaling approximately¥1.7 billion, up about ¥260 million from fiscal 2010.

Economic Benefits in Fiscal 2011and management activities accounted for a few percent each. Costs relating to pol-

INPUT

Production Activity

OUTPUT

Tokuyama

Categoryfor 67%, 15% and 11%, respectively, of the Company’s total environmental costs

Gains on Reduction in Energy Consumption

for the same period.

Waste and by-products

Carbon dioxide (CO2)

1,680

6,510

Fuel

21

(52,500 thousand GJ)

Substances withenvironmental impact

Raw materials

5,880

11
24,300
Process effluent

Industrial water

43,900

Environmental Preservation Costs
Category

Waste (incinerated and landfill)

2,270

Products

5,700(Coolant water and other types of effluent)

Pollution Control
Costs in theBusiness
GlobalAreas
Environmental
Conservation

Major Activities

Amount Invested
Costs(¥ million)(¥ million)
438

4,709

Replacement of existing
facilities for the treatment andstabilization of industrial waste

71

771

189

Gains on Sale of Valuable Waste

85

322

Gains on Reduction in Waste Disposal Costs
through Waste Recycling

266

688

Gains on Reduction in Raw Material and FuelCosts through Waste Recycling

267

482
1,681

Cumulative Total Environmental Investments (since fiscal 1990)(¥ billion)

40

Upstream and Downstream Costs
Management Activity Costs

10

Environmental analysis
equipment, etc.

Research and Development Costs

Economic Benefits(¥ million)

Total

Installation of new neutralizing
facilities, replacement ofexisting neutralizing facilities

Resource Recycling Effective use of resources

1,091
30.0

2

31.4

33.2

35.3

35.8

10

11

30

36

273

0

0

Social Activity Costs

Greenery development,
production of CSR report

33

67

Costs for Environmental Damage

Imposition, management of aformer mining site

1

156

580

7,071

Total

42

Material Benefit(1,000 metric tons)

lution control, resource recycling and global environmental conservation accounted

20

10

0

07

08

09

(FY)

43

Promoting Environmental Management

Commitment to the Preventionof Global Warming
Prevention of global warming is key to the future of the human race.
Tokuyama is making steady energy conservation achievements in its

Unit Energy Consumption Index* (Tokuyama Factory)

Global Warming Prevention Support Program

Reduction rate (%)

In April 2008, Tokuyama set up this program to encourage Tokuyama Group employ-00

ees to take action aimed at helping prevent global warming, as part of its environTokuyama has set atarget for fiscal 2012at 24% lower than
the fiscal 1990 level.

-5

-10

business activities while supporting energy conservation in employee
households.

Promotion of Energy Conservation
Tokuyama consumes a huge amount of energy in manufacturing its core products,
such as caustic soda, cement and polycrystalline silicon. Carbon dioxide, one of thegreenhouse gases, is generated chiefly by burning fossil fuels and also by the decarboxylation of limestone used as a raw material in cement production.
Aware of the high priority of preventing global warming, the Company is conducting energy conservation activities to reduce carbon dioxide emissions. The
Tokuyama Factory is responsible for more than 99% of the Company’s energy

promotion. Through the program, the Company covers part of the costs incurred by
employees purchasing and installing specific eco-friendly products closely related to
the Group’s business, namely the plastic window sash for residential use and the

-15

-25

90

07

08

-24.6

-24.2

-24.0

10

11

12
(Target)09* The unit energy consumption index is calculated using a method
recommended by the Japan Chemical Industry Association (JCIA).

(FY)

2,800

50,00040,000

The table below shows the status of use of the program by Group employees in

52,5002,700
50,7002,800
49,900

Plastic Window Sashes
Number of Cases(Units)of Subsidization

2,800
52,50037,60030,00020,000saving activities. As a result, the Tokuyama Factory has managed to keep the unit

10,000energy consumption index (with unit energy consumption in fiscal 1990 set as 0) at

0-24.2%, a level virtually unchanged from the previous fiscal year.

Solar Power Generation Systems
Number of Cases(kW)
of Subsidizationoxides (SOx), nitrogen oxides (NOx) and soot emissions.
In fiscal 2011, SOx, NOx and soot emissions increased year on year in line withan increase in facility utilization.

12

177

Fiscal 2009

7

141

8

33.35

SOx, NOx and Soot Emissions

Fiscal 2010

7

91

30

129.41(metric tons)

Total

13
39

174
583

6

NOx burners and high-performance dust collectors in an attempt to reduce sulfur

Fiscal 2008

Fiscal 2011

the switchover from coal to alternative fuels as well as the acceleration of energy

We have equipped our boilers, cement kilns and other sources of air pollutants withsuch emission control systems as flue gas desulfurizers, denitration equipment, low

the past four years.

3,800
55,500the atmosphere and into water environments.

Air Pollutant Emissions

encouraging them to save energy.

Status of Use of the Global Warming Prevention Support Program

60,000record of initiatives to reduce environmental pollutants released into

household sector by raising Group employees’ awareness of global warming andEnergy Consumption(1,000 GJ/year)

Actively seeking to protect the environment, Tokuyama has a longsolar power generation system. Its objective is to help reduce CO2 emissions in the

-22.4

-18.6

consumption. Although our energy consumption volume at the Tokuyama Factory
grew year on year in fiscal 2011 due to increased production, we have promoted

mental, energy-saving and social contribution activities from the standpoint of CSR

-16.4

-20

Reduction of Air andWater Pollutants

22
66

24.01

87.04
273.81

12,000During fiscal 2011, despite the economic stagnation following the Great East
90

07

08

쐽 Tokuyama Corporation

Efforts at Our Offices

CO2 Emissions

In fiscal 2011, due to the effects of the Great East Japan Earthquake, limits on elec-(1,000 metric tons/year)

09

10

Japan Earthquake, the program has been continuously utilized as before. We assume쐽 Group companies

by 15% in summer 2011. In response, we again implemented the Cool Biz campaign, in which we have been taking part every year, at our Tokyo Head Offices in

the program on the Group’s intranet site, which also introduces external websites
280
260
2,100

6,000

3,000

10,000320

10,100

9,000

20
1,930

5,000

210
250
2,000

200
230

210
230

200
240

275

(FY)

11

global warming prevention. We post data and status updates on the utilization of

9,000

Business Act. These limits included a requirement for small-scale operators toengage in voluntary energy-saving activities to reduce peak electricity consumption

400

11,1008,800
223

providing additional information on global warming prevention for the enlighten-

161

137

8,000
148

6,000

this reflects deep rooted awareness, even for private households, of the need fortricity use were imposed on business operators in accordance with the Electricity(metric tons)

15,000

2,890
3,000

0

1,930

90
SOx emissions

07

1,190

1,300

1,630

08

09

10

NOx emissions

8,600
240

191

160

2,180
80

11

(FY)

0

Soot emissions

ment of employees.

1,550

1,620

1,420

4,730

4,570

4,510

4,730

08

09

10

11

Intranet site dedicated for the program

3,290

Shibuya and Shimbashi from May 2011, which was earlier in the year than usual.
Moreover, thermo-hygrometers that also display the heat stress index as wellas electric fans were installed on every floor of the offices. Utilizing this equipment,
we were able to carefully control the air-conditioner temperature settings. We also
removed some lighting at the offices and changed the settings of all the PCs

0

90

07

쐽 Attributable to fuel
쐽 Attributable to waste(FY)쐽 Attributable to raw materials
쐽 Attributable to Group companies

used in the offices to energy saving mode. As for laptop PCs, we used only battery
power during the day, aiming to cut energy use at the peak consumption time. As aContributing to Global Warming Prevention Efforts inresult, we have succeeded in reducing energy consumption by more than 15% on a

the Consumer Sector

year-on-year basis in June and July 2011.

Through the provision of Shanon®—a plastic window sash that supports energy

Prior to relocating and integrating our Tokyo Head Offices in August 2011 to ourconservation in residential houses—and other products, the Tokuyama Group has

new office in Kasumigaseki Common Gate West Tower, which was designed with

been helping to reduce CO2 emissions in the consumer sector, where CO2 emissions

due consideration given to the environment, we removed some of the lighting. Also,

have significantly increased. We focus our efforts on the development of technolo-

we continued to strictly control air-conditioner temperature settings after the reloca-

gies that contribute to the prevention of global warming through such initiatives astion. Thanks to these continuing efforts, we have succeeded in reducing the entire

the development of a new production method for polycrystalline silicon for solarbuilding’s energy consumption by more than 15% on a year-on-year basis.

cells, the development of electrolyte membranes for fuel cells and so forth.

44

45

Promoting Environmental Management

PRTR*1 Substance Emissions

Flow of Industrial Waste Treatment

Industrial Effluent and Water Pollutant Emissions

Twenty-six substances among those handled by Tokuyama in fiscal 2011 are subject

To meet the statutory limits as well as the limits agreed with local governments, theto notification under the Pollutant Release and Transfer Register (PRTR) legislation.

Tokuyama Factory has set tighter voluntary limits to carry out stringent control

In fiscal 2011, the Company continued to promote Companywide efforts to reduce

through pollutant monitoring and purification using wastewater treatment equipment.

the emission of PRTR substances. As a result, Tokuyama Corporation’s total PRTR

The levels of COD,*2 nitrogen and phosphorus are subject to regulation in terms

substance emissions (non-consolidated basis) decreased by about 4 metric tons yearof total emissions in relation to water quality. To ensure compliance with indicators foron year to 34 metric tons.

these three items, Tokuyama is working to reduce the levels of their emissions through*1 The pollutant release and transfer register (PRTR) refers to a system of collecting
and publishing data on the sources of hazardous substances, the amounts ofsuch substances emitted into the environment or carried away from businesssites in the form in which they are contained in waste.

the use of activated sludge treatment facilities and other equipment.

PRTR Substance Emissions(metric tons)

250

237

Reducing Waste andPromoting Recycling

Waste Generated

380
Incineration (internal)

19.9

As a result of its exhaustive efforts to reduce and recycle waste,
Internal Recycling

Tokuyama maintained the effective waste utilization rate at 94%

331

and the zero-emission rate at 99.9% in fiscal 2011.

Landfill (internal)

Inside theCompany0

In fiscal 2011, the COD level and nitrogen emissions decreased slightly year on
Outside theCompany

year. In contrast, phosphorus emissions increased year on year.

Waste Management*2 Chemical oxygen demand is an indicator used to measure water quality andrefers to the amount of oxygen required to oxidize organic compounds in water.

In fiscal 2011, Tokuyama generated 380 thousand metric tons of waste. The(million metric tons)

Incineration (external)

1.0

Company actively recycled this waste internally and externally, mainly reusing it as

Landfill (external)

0.5materials, pallets and other wood waste were crushed into woodchips so that they

(metric tons)

180

40

28.8

raw materials and fuel for cement production at the Tokuyama Factory. Packing

Industrial Effluent and COD Level

200

Waste Generated

200

External Recycling

could be effectively used as fuel at power plants. As we worked diligently to recycle

166

27.3

waste into raw materials for cement, we maintained our effective waste utilization
82

70
50

50

29

34 40

38 38

29

120
24.9

20

22.9

109

128

123

25.6

24.3

20.6

100

07

쐽 Tokuyama Corporation

08

09

10

11

Landfill Volume, Zero-Emission Rate and Effective Utilization Rateaccordingly, maintained our high landfill zero-emission rate at 99.9%.

40,000Incineration
0

90

07

쐽 Industrial effluent

Countermeasures against Dioxin

08

09

10

11

(FY)

0

COD level

21.0(5.5%)

External Recycling

27.3(7.2%)

Waste oil incinerators and part of vinyl chloride monomer manufacturing facilities
are subject to regulations under the Special Measures Law for Countermeasures

Nitrogen and Phosphorus Emissions

against Dioxins. Tokuyama measures dioxin concentrations in flue gas and wastewater, and the figures remain far below the control levels.

Fiscal 2007

Fiscal 2008

Fiscal 2009

Fiscal 2010

Fiscal 2011

112

108

140

110

108

Phosphorus

4.5

2.9

3.6

2.3

2.8

99.9

99.9

(%)

94.1

94.1

93.5

93.5

94.4

76.9

80

30,00060

36,26040

20,00010,000(metric tons)

Nitrogen

99.9

100

82.4

(Unit: 1,000 metric tons)

50

99.9

50,000(FY)쐽 Group companies

99.9(metric tons)

Breakdown of Industrial Waste by Treatment for Fiscal 201120

Landfill

0.5(0.1%)

0쐽 Landfill volume

Total Waste
Generation
380

Hazardous Air Pollutant Emissions

90

520

480

440

430

500

07

08

09

10

11

Effective utilization rate

(FY)

Effective utilization rate / Zero-emission rate

98

rate at 94%. We stepped up our activities for reusing and reducing waste and,

14.3
10

0

* Figures are for fiscal 2011 and in the unit of 1,000 metric tons.

150

Landfill volume

70

30

COD level

100

Industrial effluent

150

0

Zero-emission rate

Management and Treatment of PCB Waste

Tokuyama sets out a voluntary reduction plan for four substances that it produces,

Internal Recycling(into materials and fuel for reuse)

The Tokuyama Group has 79 transformers and capacitors containing polychlorinatedincluding chloroethylene, among the 12 substances subject to voluntary control

331(87.1%)

biphenyl (PCB).*1 The Group has already stopped using them. In compliance within accordance with the Air Pollution Control Law. In accordance with the plan,

Effective Utilization Ratethe Special Measures Law for the Proper Treatment of Polychlorinated Biphenyl

94.4%

the Company consistently implements measures to reduce the emission of these

Waste, they are retained and managed in an appropriate manner. Legislation

Zero-Emission Rate

99.9%

substances.

requires all PCB waste to have been treated by July 2016. In accordance with theplan of the Japanese government, wide-area PCB treatment facilities are being

Hazardous Air Pollutant Emissions(metric tons)

120
100

Effective Utilization Rate (%) =
103

40
20
0

Zero-Emission Rate (%) = 1 —47

constructed at various locations in Japan, and some of these facilities have started
×100

operation. Taking advantage of the early registration program, the Tokuyama Group

Landfill Volume (internal and external)
Total Waste Generation

×100

December 2005 and commenced the treatment in fiscal 2009. In the future, we will
properly treat our PCB waste in line with the timetables of the wide-area treatment
project in separate districts.

7

30
13

28

12 2 331
11
12 4 4

95

07

08

22
8 3
2
9

24
10 1
3
10

21
11 1
1
8

09

10

11

쐽 Dichloromethane (methylene chloride) 쐽 Chloroform
쐽 1,2-dichloroethane 쐽 Chloroethylene (vinyl chloride)46

Total Waste Generation

finished its registration to Japan Environmental Safety Corporation (JESCO) in

21

80
60

Recycling Volume (internal and external)(FY)*1 PCB is an organic chlorinated compound that emits dioxins when burnt at a
low temperature. Chemically stable and excelling in thermal resistance,
chemical resistance, insulation and other electric characteristics, it was formerly used in many different electric products including transformers andcapacitors. However, it has been banned from production or utilization since1972 because of its hazardousness to humans. Transformers, capacitors andother PCB-containing products that have already been distributed have to beretained at business establishments.

47

Site Report

Tokuyama Factory

Kashima Factory

Location: 1-1, Mikage-cho, Shunan-shi, Yamaguchi Prefecture, Japan

Location: 26, Sunayama, Kamisu-shi, Ibaraki Prefecture, Japan

Employees: 1,699

Employees: 75

Factory Area: 1,910,000 square meters (total area)

Factory Area: 101,000 square meters

Main Products: Cement, inorganic and organic chemical products, polycrystalline silicon,

Main Products: Tokuyama Corporation’s Kashima Factory

fumed silica, vinyl chloride monomer and others

Tetsushi Yamada
General Manager of theTokuyama Factory

Fiscal 2007

Fiscal 2008

Fiscal 2009

Fiscal 2010

Fiscal 2011

SOx Emissions

Metric tons

1,930

1,190

1,300

1,630

2,180

NOx Emissions

Metric tons

11,10010,100

8,800

8,000

8,600

Soot Emissions

Metric tons

223

161

137

148

191

Industrial Water Consumption

Million metric tons

41.1

40.6

41.8

40.5

43.8

Effluent

Million metric tons

24.8

22.8

20.5

25.5

24.2

COD Level

Metric tons

161

116

107

124

119

Total Nitrogen Emissions

Metric tons

112

108

140

110

108

Total Phosphorus Emissions

Metric tons

4.5

2.9

3.6

2.3

2.8

Metric tons

67

66

48

37

32

Thousand metric tons

363

344

300

312

379

Final Waste Disposal Volume

Metric tons

480

460

420

417

490

Energy Consumption*

Thousand GJ

55,40052,40050,60049,80052,400Thousand metric tons

5,000

4,730

4,570

4,500

4,730

6

0

1

5

3

CO2 Emissions (attributable to fossil fuel)*
Complaints

Complaints* The calorific power and other figures have been recalculated retrospectively to 1990, following the amendment of the Act on the Rational Use of Energy.

Emissions and Transfer of PRTR Substances in Fiscal 2011

Unit: metric tons (mg-TEQ for dioxins)
Emissions

Government
Ordinance Number

To Air

To Water

To Soil

Subtotal

AmountTransferred

Chloroethylene (vinyl chloride)

94

10.8

0.0

0.0

10.8

0.0

1,2-Dichloroethane

157

7.9

0.0

0.0

7.9

1.2

Cresol

86

0.0

4.9

0.0

4.9

0.0

Toluene

300

3.0

0.0

0.0

3.0

48.4

Substance

coating solutions); materials for electronic materials and metal washing solutions
Main Products: Tokuyama Dental Corporation’s Kashima Factory

Unit

PRTR Substance Emissions

drugs); optical materials (plastic lens monomer, light modulating materials, hard

General Manager of theKashima Factory

Performance Data

Waste Generated

Pharmaceutical bulks (X-ray contrast agents, stomach and duodenal ulcer treatment

Fumiaki Iwasaki

Dental materials (restorative materials, adhesives, denture relining materials,
impression materials and investing materials)
At the Kashima Factory, we have positioned the appropriate management of chemical
substance handling as its most important issue and have simultaneously promoted

In addition, our final landfill volume decreased to a record-low seven metric tons. Also, thezero-emission rate at our factory exceeded 99% in fiscal 2011.

waste recycling. As a result, in fiscal 2011 we achieved an effective waste utilization

Tokuyama Dental Corporation has changed the materials of some products from dichloro-

rate of 81%, second only to the rate of 82% achieved in fiscal 2009. Looking ahead,methane to water-based materials, as part of efforts to reduce dichloromethane emissions into

we will actively seek ways to realize material and thermal recycling for more catego-

the atmosphere. Consequently, the emission volume was more than halved compared with theries of waste with the aim of further improving our effective utilization rate for all theprevious fiscal year.

waste we generate.

Performance Data
Unit

Fiscal 2007

Industrial Water Consumption

Thousand metric tons

107

Fiscal 2008

78

Fiscal 200944

Fiscal 2010

77

Fiscal 201171

Effluent

Thousand metric tons

129

95

58

93

90

COD Level

Metric tons

5

4

2

4

4

PRTR Substance Emissions

Metric tons

4

5

4

2

2

Waste Generated

Metric tons

965

770

560

857

909

Final Waste Disposal Volume

Metric tons

32

27

11

12

7

Energy Consumption

Thousand GJ

58

55

53

60

57

CO2 Emissions (attributable to fossil fuel)Metric tons

2,320

2,230

2,110

2,340

2,324

Complaints

Complaints

0

0

0

0

0

Water-soluble zinc compounds

1

0.0

2.3

0.0

2.3

0.0

Chloromethane (methyl chloride)

128

1.4

0.0

0.0

1.4

0.0

Dichloromethane (methylene chloride)

186

0.8

0.0

0.0

0.8

0.0

Chloroform

127

0.5

0.0

0.0

0.5

0.0

1,2-Epoxypropane (propylene oxide)

68

0.4

0.0

0.0

0.4

2.4

1,2-Dichloropropane

178

0.4

0.0

0.0

0.4

191.9

2,2’-Azobisisobutyronitrile

16

0.0

0.0

0.0

0.0

0.0

Carbon tetrachloride

149

0.0

0.0

0.0

0.0

0.0

Acetonitrile

13

0.0

0.0

0.0

0.0

1.1

Hydroterphenyl

238

0.0

0.0

0.0

0.0

0.0

1,4-Dioxane

150

0.0

0.0

0.0

0.0

0.0

Nickel compounds

309

0.0

0.0

0.0

0.0

0.0

N,N-Dimethylacetamide

213

0.0

0.0

0.0

0.0

2.2

Hydrazine

333

0.0

0.0

0.0

0.0

0.0

N,N-Dimethylformamide

232

0.0

0.0

0.0

0.0

19.7

Hydrogen fluoride and its water-soluble salt

374

0.0

0.0

0.0

0.0

0.0

Triethylamine

277

0.0

0.0

0.0

0.0

3.6

Benzene

400

0.0

0.0

0.0

0.0

0.0

2-Vinylpyridine

338

0.0

0.0

0.0

0.0

0.2

Boron compounds

405

0.0

0.0

0.0

0.0

0.0

2,3-Epoxypropyl Methacrylate

417

0.0

0.0

0.0

0.0

0.0

(Dioxins)

243

18.4

1.6

0.0

20.0

0.0

Alpha-Methylstylene

436

0.0

0.0

0.0

0.0

0.0

25.2

7.2

0.0

32.4

244.0

1.3

0.5

0.0

1.8

113.3

Total (excluding dioxins)

Substances are listed in descending order of emissions and, for substances with no emissions, in order of government ordinance number., Emissions to water indicate therelease into public waters., Amount transferred indicates the sum of the quantity transferred to sewerage and the quantity subject to intermediate treatment., Total figures
are rounded to the first decimal place.

48

Emissions and Transfer of PRTR Substances in Fiscal 2011

Unit: metric tons
Emissions

Government
Ordinance Number

To Air

To Water

To Soil

Subtotal

AmountTransferred

Toluene

300

0.7

0.1

0.0

0.8

66.8

Chloroform

127

0.4

0.3

0.0

0.7

1.2

Dichloromethane (methylene chloride)

186

0.3

0.0

0.0

0.3

18.5

Substance

Total

Substances are listed in descending order of emissions and, for substances with no emissions, in order of government ordinance number., Emissions to water indicate therelease into public waters., Amount transferred indicates the sum of the quantity transferred to sewerage and the quantity subject to intermediate treatment., Total figures
are rounded to the first decimal place.

49

Site Report

Activities of Group Companies
Status of ISO 9001 and ISO 14001 Certification
Tokuyama understands that RC activities should be conducted on a Groupwide basis. To

ISO 9001

ISO 14001

support their activities, the Company has signed RC management agreements withSun •Tox Co., Ltd.

Group Company

쏹쏹

Tokuyama Group companies, both inside and outside Japan, that are engaging in produc-

Excel Shanon Corporation

쏹—tion activities.

Tohoku Shanon Co., Ltd.

쏹A&T Corporation

쏹management indicators and conduct safety, environmental and quality audits at the rate ofFigaro Engineering Inc.

several Group companies per year. By means of these actions, we monitor and enforce RC

Sun Arrow Chemical Co., Ltd.

Tokuyama Polypropylene Co., Ltd.

쏹

Established: February 1, 1999

Established: April 2, 2001

쏹Ownership: Tokuyama Corporation (100%)

Ownership: Tokuyama Corporation (50%) and Prime Polymer Co., Ltd. (50%)

쏹쏹Head Office: Nakanoshima Central Tower, 2-2-7, Nakanoshima, Kita-ku, Osaka, Japan

Head Office: 1-1, Harumi-cho, Shunan-shi, Yamaguchi Prefecture, Japan

Tokuyama Dental Corporation—*

쏹Business: Manufacture and sale of polyvinyl chloride compounds

Business: Manufacture and sale of polypropylene resin and soft polyolefin resin

activities conducted at individual Group companies. Also, changes and other movements

Tokuyama Siltech Co., Ltd.

쏹쏹in statutory regulations and other information are shared with our Group companies.

Sun Arrow Chemical Co., Ltd.

—쏹ASTOM Corporation

쏹쏹Shin Dai-ichi Vinyl Corporation—쏹

Location: 1-2, Harumi-cho, Shunan-shi, Yamaguchi Prefecture, Japan

Location: 1-1, Harumi-cho, Shunan-shi, Yamaguchi Prefecture, Japan

Tokuyama Polypropylene Co., Ltd.

쏹쏹

Employees: 24

Employees: 65

We collect data on the environmental impact of Group companies and their safety

In addition, we provide Group companies with assistance in acquiring ISO 9001 andISO 14001 certification.

쏹 =Certified

Sun•Tox Co., Ltd.

Tokuyama Plant

Tokuyama Plant

Site Area: 3,280 square meters

Site Area: 70,997 square meters

쏹 =Included in certified sites*Certified under ISO 13485

Established: February 14, 1992
Ownership: Tokuyama Corporation (100%)
Head Office: Tokuyama Bldg., 1-4-5, Nishi Shimbashi, Minato-ku, Tokyo, Japan
Business: Manufacture and sale of biaxial-oriented polypropylene films and cast polypropylene films

Kanto Plant

Tokuyama Plant

Yasuto Yasuzawa

Hiroaki Endo

Plant Manager

Plant Manager

Located on the premises of the Higashi Plant in Tokuyama Corporation’s Tokuyama

Our Tokuyama Plant is located on the premises of the Higashi Plant, which constitutes

Location: 3075-18, Shimasu, Itako-shi, Ibaraki Prefecture, Japan

Location: 7-7, Harumi-cho, Shunan-shi, Yamaguchi Prefecture, Japan

Factory, our Tokuyama Plant manufactures pipes and joints, which are essential in devel-

part of the Tokuyama Factory of Tokuyama Corporation. The plant manufactures and sells

Employees: 191

Employees: 134

oping infrastructure, in addition to polyvinyl chloride compounds, which are used in such

200,000 metric tons of polypropylene resins and 7,000 metric tons of soft polyolefin res-products as plastic window sashes to attain excellent energy conservation effects. While itins each year. This plant runs three systems for safety management, environmental man-is common practice to add lead-based stabilizer to polyvinyl chloride compounds, weagement, and quality management and undertakes RC activities in tandem with thecontinued our efforts to develop a lead-free formula in fiscal 2011, as we did in fiscal

Tokuyama Factory.

Site Area: 55,800 square meters

Site Area: 24,100 square meters

2010, in response to the requests of users.

Toshiyuki Yamaoka

Koji Tanaka

Plant Manager

Plant Manager

With respect to safety management, we perform risk assessments of processes, facili-

To protect the environment, we have been promoting the ISO 14001 management

ties, and work. We are also promoting Companywide Hiyari Hatto Kigakari (HHK) accident

system. In particular, we have pursued the theme of “reducing the volume of substances

prevention and hazard identification activities to eradicate accidents, disasters and risks.

with environmental impact” in accordance with the Tokuyama Corporation’s Environment

As a result of these efforts, we succeeded in maintaining the zero-accident and zero-Management Program. Product development activities based on this theme are graduallydisaster status that we have enjoyed for 37 years, since the days when we operated asbringing results.

Tokuyama Corporation’s Polypropylene Manufacturing Department.

With respect to safety, health, security and disaster prevention, we proactively carriedIn fiscal 2010, we renewed five-year accreditation for safety inspection as defined

Located in the Itako Industrial Park in Ibaraki Prefecture, the Kanto Plant produces 25,000

Located on the premises of the Higashi Plant in Tokuyama Corporation’s Tokuyama

out full-participation Five-S activities, Hiyari Hatto accident prevention activities, Kiken

under the High Pressure Gas Safety Act. In the same year, we acquired a two-year renewal

metric tons of biaxial-oriented and cast polypropylene films per year. As a Type I Energy

Factory, the Tokuyama Plant produces 22,000 metric tons of biaxial-oriented polypropylene

Yochi hazard prediction training and activities to maintain a trouble-free status. As a result

and a new four-year accreditation for open boiler inspections defined under the Industrial

Management Designated Facility, it has been taking steps to ensure effective energy utili-

films, which are mainly used for food wrapping, per year. In environmental aspects, weof these activities, we have successfully maintained our zero-accident and zero-disaster

Safety and Health Act. Building on these accreditations, we are further promoting volun-

zation by introducing in-house power generation facilities and energy-efficient facilities,

work together with Tokuyama Corporation’s Tokuyama Factory to address environmental

record since the company’s establishment.

tary safety initiatives.

among other initiatives.

conservation and to carry out ISO 14001 activities. The Tokuyama Plant is continuing with

Looking ahead, we will continue to operate the plant in fiscal 2012 with a commit-

In accordance with a biennial schedule, fiscal 2012 is a year of the plant’s periodic

In summer 2012, an electric power shortage was predicted in the Kanto region just as

its positive efforts to slash production losses, and through such efforts we have more thanment to environmental conservation, safety and security, thoroughly implementing internalmaintenance. Using this opportunity as a springboard, we will step up RC activities in a

the last year. In response, we again strove to support a stable electricity supply in the Kanto

halved our waste generation. Also, we are promoting activities to recycle all waste film

control as a member of the Tokuyama Group.

bid to maintain our zero-accident and zero-disaster record, to reduce our environmental

region by heightening the ratio of in-house power generation and promoting energy

materials.

saving efforts.

footprint, and to eliminate all customer quality complaints.

We obtained certification for the Occupational Safety and Health Management

We have obtained certification for three management systems covering occupational safety

System (OSHMS) in February 2008. Since fiscal 2009, no disasters causing absence fromand health (OSHMS), the environment (ISO 14001) and quality (ISO 9001). To make steadywork occurred at our plant although in fiscal 2011, three minor accidents were recorded.

Performance Data

Performance Data

improvements throughout the plant, we are continuously enhancing these three systems.

Going forward, we will continue to promote safety and health activities centered on

We are also striving to create a plant that harmoniously coexists with local communi-

risk assessment, and enhance such activities through a PDCA cycle. Under the slogan ofPower Consumption

Thousand kWh

3,470

2,810

2,662

2,735

2,763

ties. Nominating the thirtieth day of each calendar month as No-Garbage Day, we are“Take pleasure in production, be stringent with quality and adhere to safety,” we are aim-

Waste Plastics Generated

Metric tons

158

157

119

124

110

engaging in cleaning activities in the neighboring areas.

ing to create a plant that deserves lasting trust of society, the customers and employees.

Waste Plastics Effectively
Used

Metric tons

158

157

119

124

110

Performance Data

Final Waste Disposal
Volume (external)

Metric tons

0.0

0.6

3.8

12.5

10

Steam Consumption

Metric tons

240

240

240

240

240

Unit Energy Consumption
Index (Fiscal 2002 = 100)

Industrial Water
Consumption

Thousandmetric tons

65

65

65

65

65

* Year with periodic maintenance

Performance Data
Unit

Fiscal 2007 Fiscal 2008 Fiscal 2009 Fiscal 2010 Fiscal 2011

Unit

Fiscal 2007 Fiscal 2008 Fiscal 2009 Fiscal 2010 Fiscal 2011

Waste Generated

Metric tons

60

34

43

56

57

Waste Generated

Metric tons

200

120

90

80

70

Final Waste Disposal Volume

Metric tons

29

5

16

38

43

Final Waste Disposal Volume

Metric tons

11

20

6

9

1
448

Energy Consumption

Thousand GJ

310

327

334

344

341

Energy Consumption

CO2 Emissions

Thousand metric tons

17

18

18

19

19

CO2 Emissions

SOx Emissions

Metric tons

0.4

0.4

0.3

0.3

0.4

NOx Emissions

Metric tons

0.7

0.7

0.5

0.6

0.7

Soot Emissions

Metric tons

0.04

0.08

0.05

0.04

0.04

50

Thousand GJ

463

413

414

434

Thousand metric tons

27

24

25

26

26

PRTR Substance Emissions

Metric tons

—

—

0.1

0.1

0.0

Complaints

Complaints

0

0

0

0

0

Unit

Fiscal 2007 Fiscal 2008 Fiscal 2009 Fiscal 2010 Fiscal 2011

Unit

Fiscal 2007 Fiscal 2008 Fiscal 2009 Fiscal 2010 Fiscal 2011

Industrial Water
Consumption

Thousandmetric tons

417

322

354

329

366

Waste Generated

Metric tons

141

159

134

180

123

Final Waste Disposal
VolumeMetric tons

4

18*

6.5

3.8*

0

%

85

98

97

86

88

51

(3) The Group will select its trading partners not only based on economic rationality, but

Tokuyama Group Code of Conduct
All Tokuyama Group members will commit to operating in a way that is compatible with society and to fulfilling the Group’s corporatesocial responsibility, following the principles below and endeavoring to achieve sustained growth by earning the support of our clients.
1. Compliance
We act with good corporate ethics and common sense, based on the understanding that compliance with laws and corporate rules is the mostimportant requirement in pursuing any kind of business.
2. Fair Business Activities• We aim to be moderate and reasonable in our business through fair, free, and transparent competition.
• We will maintain fair and reasonable relations with political and governmental organizations.

3. Compliance with Labor-Related Laws and Regulations

also after taking into account the initiative shown by these trading partners to fulfill

The Group will comply with labor-related laws and regulations and strive to maintain atheir social responsibilities.

comfortable working atmosphere.

(4) The Group will comply with laws and regulations related to the protection of
4. Workplace Safety and the Promotion of Healthsubcontractors.

(1) The Group will strive to maintain a safe and clean working environment.
3. Entertainment and Gift Giving(2) The Group will steadily take steps to prevent work-related injuries or deaths.

(1) When any person in the Group’s employ entertains or provides gifts to customers or(3) The Group will always pay attention to the mental and physical health conditions of
the persons in its employ.

trading partners or is the recipient of gifts or entertainment, the value and nature ofsuch gifts and entertainment shall not be in excess or violation of social norms or of

3. Responsible Care
• We develop, produce and supply products and services that have value to the community, with a constant focus on safety requirements, so that we
can satisfy our clients and consumers and earn their trust.
• We voluntarily and proactively address environmental issues based on an understanding of their significance to all humanity and their importanceto the continuation of business activities.
4. Respect for Human Rights and Personality• We respect the basic rights of people in our business and will not discriminate on the base of race, gender, creed, nationality or religion.
• We value diversity in the workplace and will provide a safe and comfortable working atmosphere to provide satisfaction and opportunity to each
employee.

Ⅵ. Our Handling of Group Assets and Financial Reportinginternationally accepted conventional wisdom.
(2) With the desire to abolish empty formalities, all persons in the Group’s employ should

The Group will efficiently utilize its tangible and intangible assets, protect such assets

the individual level, except in those cases that fall within acceptable business norms.

against impairment and theft, prohibit any personal use of such assets and ensure thatsuch assets are appropriately administered.

4. Other Companies’ Trade Secrets(1) The Group shall not, directly or indirectly, acquire other companies’ trade secrets in adishonest manner. Also, in no case shall it, directly or indirectly, use such secrets in a(1) The Group will implement proper accounting procedures in accordance with generally
accepted accounting standards. Accordingly, the Group will accurately record all trans-(2) The Group shall not use another company’s trade secrets except for purposes permitted

6. Social Contributions• We actively seek to contribute to our community as a good corporate citizen.
• We contribute to the development of local regions in our international business activities, respecting not only international rules, local laws andregulations, but also local cultures and customs.

Ⅳ. Relationship with Shareholders and Investors

7. Exclusion of Antisocial Forces
We will not enter into any business arrangement with antisocial forces that threaten public order and safety.

and financial status, but non-financial information, including data on the products andTokuyama Group Guidelines for Business Activities

2. Reliable Financial Reporting

dishonest manner.

5. Communications
We make fair and positive public disclosure of information about our Group, including its business activities and financial reports, to maintain goodcommunication with society.

(Established on May 12, 2009)

1. Appropriate Use of Group Assets

abstain from inter-Group gift-giving as well as exchanges of gifts or other items onby the said company.

actions related to business activities and properly maintain such records.
(2) The Group will not make any false or fictitious statements or reports of financial
information.

1. Timely, Appropriate and Easy-to-Understand Information Disclosure

3. Management of Confidential Information

The Group will endeavor to disclose not only information on its business management(1) The Group will properly manage its own confidential information in accordance with
its corporate rules.

services that it provides to society as well as on the environmental and social aspects of its(2) In the event the Group needs to disclose such confidential information to the outside,business operations. In addition to its shareholders and investors, the Group will publicly

the Group shall ensure that prior approval has been obtained in accordance withdisclose such information for the benefit of society and strive to make such disclosure

predetermined procedures set out in its corporate rules and work to prevent the

timely, appropriate and easy-to-understand.

unexpected leakage of information by taking such steps as concluding non-disclosureagreements.

Preface

3. Establishment of Systems for Ensuring Safety

2. Prevention of Insider Trading

These Guidelines set out the essential principles that govern the ongoing business activi-

In the course of the research, development and manufacture of its products as well as in

The Group will strive to prevent any person in its employ from exploiting non-public

only within the scope of its purpose of use. In cases where the Group needs to use suchties of the Tokuyama Group (hereinafter referred to as the “Group”), which aims to realize

the storage and transportation of its products and goods, including those manufactured

information pertaining to matters inside or outside the Group that he/she has come topersonal information for purposes beyond said scope, it shall obtain prior consent froma sustainable future in tandem with society and to gain the trust and appreciation ofby other companies, and in the provision of its services, the Group will comply withknow of in the course of his/her duties for the purpose of selling or buying securities,

the individual concerned.

individual stakeholders.

safety-related laws and regulations. At the same time, the Group will continually strive toincluding stocks, for his/her own gain and, further, to prevent such persons from exploiting

increase the sophistication of its systems for ensuring safety.

non-public information to provide benefits or favors to a third party.

The Group will not only comply with laws, regulations and its corporate rules, but also

4. Security and Export Control

Ⅴ. Relationship with Executives and Employees

adhere to strict corporate ethics and conduct its business activities with decency.

To fulfill its responsibility to help maintain international peace and safety, the Group will

1. Respect for Human Rights and Prohibition of Discrimination

comply with laws and regulations that control the export of cargo and technologies.

(1) The Group will value the diversity, character and personality of each person in its employ(3) The Group shall handle any personal information acquired in the course of business

4. Appropriate Use of Information Systems

Ⅰ. Basic Principle

The Group will appropriately use and administer its in-house information systems in

Ⅱ. Relationship with Society

accordance with its corporate rules.

and will not discriminate on the basis of race, ethnic origin, gender, creed, nationality,

1. Contribution to Society

5. Nurturing Sound Relationships with Political and Governmental Organizations(1) While perceiving the needs of consumers and customers, the Group will develop and

The Group will nurture highly transparent relationships with political and governmental(2) The Group will have no involvement with child labor or forced labor.

provide products and services that have value to society with the aim of contributingorganizations, avoid behavior that can be alleged to constitute misconduct, and cultivate(3) The Group will allow no person in its employ to degrade individual dignity in any

to sustainable social development.

fair and sound relationships with such organizations.

5. Protection and Use of Intellectual Property Rights(1) The Group will appropriately use its own intellectual property rights as important

religion, disability, disease or educational background.

assets and work to protect and maintain such rights.
(2) The Group will use the intellectual properties for which another party holds the rights
only after concluding an appropriate agreement between the Group and said othermanner, including by speaking or acting in ways that bring discomfort to others.

party, and it shall not use such rights in a dishonest manner.

(2) As it responds to the globalization of business operations, the Group will respect local
cultures and customs as well as the interests of the local stakeholders while complying

6. Severing Ties with Antisocial Forces

2. Respect for Privacy

with international and local rules, laws and regulations. In doing so, the Group will

The Group will take a firm stand against antisocial forces that pose a threat to public order

The Group will respect the privacy of the persons in its employ and properly manage theirnies may partially amend the content of these Guidelines to reflect appli-

contribute to regional development in the course of its international business activities.

and safety, and will thoroughly separate itself from any relationship with such forces.

personal information.

cable laws and regulations as well as local cultural considerations.

Supplement Upon the prior consent of Tokuyama Corporation, Group member compa-(3) Each company of the Group will actively seek to engage in social contribution activities
as a good corporate citizen.

(Established on March 28, 2012)

Ⅲ. Relationships with Customers and Trading Partners
1. Reliability of Products and Services

2. Environmental Conservation and Protection

With a constant focus on safety requirements, the Group will develop and manufacture(1) The Group will voluntarily address environmental issues based on a recognition of theirproducts and services that have value to society. In doing so, the Group will strive tosignificance to all humanity and their vital importance to the continuation of business

implement a higher level of quality assurance in order to meet the quality requirements ofactivities.

its customers and consumers and earn their trust.

2 Conform to the Tokuyama Group Code of Conduct

in the sale and disposal of its products and goods, including those manufactured by

2. Fair, Free and Transparent Competition and Reasonable Trade

3 Justify the trust of customers and trading partners

other companies, the Group will at all times remain fully aware of the importance of(1) The Group will comply with laws and regulations relating to cartels, bid rigging, the main-

environmental protection. The Group will produce environmentally conscious products,

tenance of resale prices and abuses of dominant position. In doing so, the Group will

4 Earn the respect of society and general consumers

complying with environment-related laws and regulations.

conduct reasonable transactions by engaging in fair, free and transparent competition.

(2) In the course of the research, development and manufacture of its products as well as

52

Tokuyama Group’s Five Conscience Clauses

Our behavior shall:

1 Comply with laws, regulations and internal rules(2) The Group will establish and comply with basic purchasing policies to ensure the fair-

5 Maintain standards that can be spoken of with pride in front offamily members and coworkers

ness and transparency of its procurement activities, including work that is consigned(Established on May 12, 2009)or contracted out.

53

Third-Party Comments

A Review of Tokuyama’s CSR Report 2012
Eriko Nashioka
Certified Public Accountant, Certified Tax Accountant and Director of the Institute for Environmental Management Accounting

A part-time lecturer in environmental accounting and environmental auditing for the Faculty of Commerce of Doshisha University. In 1991, shejoined the Environmental Auditing Section, the Third Department at the Osaka Office of Ota Showa & Co., currently Ernst & Young ShinNihon
LLC, where she worked as a consultant concerning accounting audits (the Commercial Code, the Securities Exchange Law and the Small andMedium-sized Enterprise Investment Business Corporation Act), environmental accounting and environmental reports. She completed her studies
in environmental management at the Doshisha University Graduate School of Policy and Management in 1997. From April 2001 to March 2004,
she was chief researcher in the Enterprises and the Environment project run by the Kansai Research Center of the Institute for Global Environmental
Strategies. In April 2004, she joined the management of the Institute for Environmental Management Accounting. She was involved in a numberof committees, including the technical subcommittee on sustainability information disclosure in the Management Research Committee of theJapanese Institute of Certified Public Accountants and other committees under the Ministry of the Environment and the Ministry of Economy, Tradeand Industry. She is a member of the primary screening committee for the Environmental Report Award co-organized by Toyo Keizai Inc.

Foundations of CSR Management Establisheda global expansion best practice. This Report shows that Tokuyama is proactively

Positioning Corporate Social Responsibility (CSR) as an important management

giving consideration to CSR when it promotes such initiatives as cross-culturalissue, Tokuyama clarified its basic philosophy on CSR management and formulated

exchanges, the nurturing of human resources and the provision of education andthe Tokuyama Group Guidelines for Business Activities. Keeping in mind its relation-

training. Such consideration is an essential part of CSR management. I have growing

ships with the six types of stakeholders, Tokuyama is working to strengthen its man-

expectations of the excellent synergies that will be brought about in both Japan andagement, focusing on CSR management as one of the foundations of its corporate

Malaysia by Tokuyama’s activities.

activities. I highly praise Tokuyama for these approaches toward CSR. It is notablethat Tokuyama has established the groundwork for accomplishing further global

Corporate Social Responsibility in a Post-Earthquake Japan

expansion and undertaking R&D activities with an eye to developing new businesses.

After the Great East Japan Earthquake, business operators across Japan began

Implementing the Three Growth Strategies Defined by thealso reminded them of the importance of having a business continuity plan that can

View of the central power plant from the Nanyo Plant

reviewing their safety measures and emergency response methods. The earthquake

In Response to Third-Party Comments

Centennial Vision

be effectively implemented at a time of disaster. As presented in detail in this CSR

In fiscal 2011, we were provided invaluable com-

Noting that it will mark the centennial anniversary of its founding in 2018,

Report , Tokuyama, in taking steps pertaining to such safety measures and emergency

ments regarding the promotion of a global

Tokuyama announced its Centennial Vision in 2008. This ten-year plan envisions the

response methods, is putting emphasis on information disclosure and contributing

approach in our CSR activities. We also strove todirection and future of the Group. This Report clearly communicates the specificto local communities, especially at the Tokuyama Factory. Not only is it taking steps

achieve transparency in our initiatives aimed atsteps Tokuyama has taken toward achieving this long-term vision, illustrating theto secure safety at the Factory, Tokuyama is also committed to facilitating communi-

steady progress the Group has made. Having clarified the Centennial Vision’s threecation with local communities to gain their understanding of such steps and to give

strategies—“Growing,” “Creating” and “Integrating”—in 2011, Tokuyama lays out

local residents a sense of ease. Moreover, Tokuyama is devoting considerable effort

concrete steps in 2012. These steps focus on three areas: global expansion strategies,

to bolstering local infrastructure through its business. It is very encouraging for me tonurturing of globally capable human resources

as represented by the new Malaysia Factory; new technologies and new businesses

see that Tokuyama has such a strong awareness of its social responsibilities in local

and the provision of education and training, for example, at our Malaysia

focusing on solutions for future energy shortages; and the renovation of the namesake

communities. In addition, Tokuyama has been continuously reporting on the steps

Project. We are very pleased that she evaluated our efforts so highly in thisTokuyama Factory, which the Company was named after, to create a factory thatthat have been taken since the window sash incident came to light. By showing its

proactively interacts with the local community and maintains respect for its roots

determination to make sure that the incident will not be forgotten, Tokuyama

realization of the Centennial Vision. We will tackle this issue and strive to make

Under this symbol, the Tokuyama Group will not only promote

while pursuing business expansion. However, most of the information presented in

impresses me as reliable. Looking ahead, I expect that Tokuyama will come to showthese reports “visualize” the entire Tokuyama Group, in line with the strong

compliance and efficiency in its business operations, but will

the CSR Report 2012 is qualitative. Moving forward, it will be essential to incorporate

greater presence in the world as a reliable company through prompt and accurate

recognition of our role in society as a company.

also work to develop into a vibrant, sound corporate entity

more quantitative information, for example, indexes that clearly show the Group’s

information disclosure utilizing such tools as the CSR Report and by further

progress toward its targets for 2018.

enhancing our CSR activities, to this end working
to solidify our CSR management foundation. As
for our global CSR approach, we have introduced
such initiatives as cross-cultural exchanges, theregard. Moreover, we appreciate the invaluable opinion she gave regarding theneed to make it easier to see how much progress we are making toward theMasao Fukuoka
Executive Officer, General Manager of the Corporate Social Responsibility Division

progressing toward the realization of its Centennial Vision.

Tokuyama has created the above symbol for CSR promotion.
Depicting a sunflower, the symbol is intended to convey theCompany’s active, healthy and honest stance toward CSR.

that provides societal and environmental benefits and istrusted by all stakeholders.

Nurturing Human Resources Globally
Beginning with the February 2011 groundbreaking ceremony for the new Malaysia

For inquiries, please contact:

Factory, Tokuyama has been promoting the exchange and nurturing of humanCorporate Social Responsibility Divisionresources in a variety of ways, aiming to pass on Tokuyama’s DNA to Malaysianstaff. By devoting considerable space to such initiatives in the CSR Report 2012 ,Tokuyama demonstrates its determination to create a new corporate culture, slowly
but surely, by closely working together, while maintaining high regard for both theCompany’s existing corporate culture and Malaysia’s local culture and natural environment. Its actions with regard to its Malaysian operations will be highly praised as

54

Kasumigaseki Common Gate West Tower, 2-1, Kasumigaseki 3-chome, Chiyoda-ku, Tokyo 100-8983, Japan
Ms. Nashioka interviewing
members of the Corporate
Social Responsibility Division
for the preparation of her
third-party comments

Phone: +81-3-6205-4835
Fax:+81-3-6205-4882*To ensure accessibility to as many readers as possible, our CSR reports are also available via Tokuyama’s website.

www.tokuyama.co.jp/eng/csr/report/
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