Responsible Care Report
2006
Our Commitment to the Environment, Safety and HealthTOKUYAMA Responsible Care Report

CONTENTS
01

Summary of Business02

Message from the President

Summary of BusinessCompany Outline Established:

February 16, 1918
Headquarters: Shibuya Konno Bldg. 3-1, Shibuya 3-chome,
Shibuya-ku, Tokyo 150-8383, Japan
Production and Research Sites:
Tokuyama Factory, Kashima Factory, Tsukuba
Research Laboratory
Capital:JPY 29,975 million (as of March 31, 2006)

RC Management
03

Basic Philosophy of Responsible
Care

04

Material Flow Balance in Our
Production Activities

05

Results and Evaluation of Fiscal
2005 Activities

06

Environmental Accounting07

RC Promotion and Management
Systems Operation

Sales

Current Profit
Non-consolidated

3,000

Consolidated
2,633

2,500
2,269

2,255

160
1,711

1,500

1,514

1,554

1,450

Recycling Outside Waste

11

Reducting and Recycling ofWaste Materials

12

Reduction of Air and Water Pollutants

15

Development of Environmentally
Friendly Products and Environmental
Technologies

140
120
92

1,000

63

60

17

Reliable Company

19

Relationship with Employees

21

Relationship with Customers
Quality Assurance/Comprehensive
Safety Management of Chemicals
Promoting Safety and Environmental
Management in the Distribution
Process

23

25

25

20
0

2001

2002

2003

2005
2004
(Fiscal year)

Segmental Sales Breakdown

0

2001

840
32%

Tokuyama Factory

28

Kashima Factory

29

Environmental Activities of Group
Companies

30

Tokuyama RC Activities—Historical
Overview

2004
2005(Fiscal year)

4,685

4,615

4,568

Consolidated
4,614

4,630

4,000

Chemicals

3,500

1,026
39%

2,276

2,179

2,113

2,000

Specialty Products

2,004

2,028

1,000

767
29%
(JPY 100 million)

0

2001

2002

2003

2005
2004
(Fiscal year)

Business Segments and Main Products (including group companies)
Segment

Main Products

Chemicals

Caustic soda, soda ash, calcium chloride, sodium silicate, vinyl chloride monomer, polyvinyl
chloride resin, propylene oxide, isopropyl alcohol, methylene chloride, biaxial-oriented
polypropylene films, coextrusion multilayer film, cast polypropylene films, microporous films

Specialty
products

Polycrystalline silicon, amorphous precipitated silica, fumed silica, aluminum nitride,
dental materials, pharmaceutical, agricultural chemical bulks and intermediates,
plastic lens materials, ion-exchange membranes, methylene chloride for washingmetal, solvent for semiconductor base materials, environment-related items,
medical diagnosis systems, gas sensitive semiconductors

Site Reports
27

Total
2,633

2003

Non-consolidated

5,000

Cement,Building
materials
andOthers

2002

Number of Employees(Fiscal 2005)

Process Safety and Disaster
Prevention/Occupational Healthand Safety
Harmonious Coexistence with
Communities and Society

66

40

37

40

500

(Persons)

Social Performance

86

80

Prevention of Global Warming

13

161

153

100

Environmental Performance
09

200
180

2,375
2,193

2,000
1,540

Consolidated
214

Non-consolidated

220(JPY 100 million)(JPY 100 million)

Cement,Ordinary Portland cement, high early strength Portland cement, blast furnace slag
Building
cement, ready-mixed concrete, plastic window sashes, cement type stabilizer,
materials,
and Others waste treatment

Editorial Notes
The Responsible Care Report 2006 was prepared with the aim of bringing Tokuyama’s activities on the society, environment, safety and health in fiscal 2005 to the attention of
all concerned, including shareholders, investors, trading partners, employees and their families, people living near its sites and the public in general. This report carries
messages from our employees and we have also made efforts this year to make the report easier to read. The Responsible Care Report 2006 is prepared based on theEnvironmental Reporting Guidelines (Fiscal 2003 Edition; Ministry of the Environment). The Responsible Care Report 2006 is also available on our Web site.
http://www.tokuyama.co.jp

Scope of Report
Period:All performance data is for fiscal 2005 (from April 2005 to March 2006). Activities are for fiscal 2005 in general, with some for fiscal 2006.
Companies: Tokuyama Corp. For certain performance data, a total of eleven main production subsidiaries (see page 29) is also indicated.
Region:Activities in Japan

01 Tokuyama Corporation

Message from the President
We are contributing to the “Creationof an Environmentally Friendly Country” throughthe development of eco-friendly products andenvironmental technologies. We promote CSR
activities with the aim of creating a sustainable
society for the benefit of future generations.
Economic and social activities in the 20th century, characterized by mass production
and mass consumption, have greatly benefited human beings. On the other hand, they
have also brought about environmental problems, such as global warming and concerns
about the depletion of natural resources. Reflecting on this situation, we must be
determined to make the 21st century the “Century of the Environment,” in which we pay
full respect to the value of the global environment and make efforts to ensure ourharmonious coexistence with it. The chemical industry has made available a variety ofchemical products to society and contributed to enhancing the wealth of our life. At thesame time, as a chemical company, we are well aware of the indispensable necessity ofgiving due consideration to the environment and human health to ensure that they are
not harmed by chemical products.
By acting on the principle of responsible care that is followed globally by chemicalindustries, Tokuyama joined Japan Responsible Care Council when it was founded in
1995. Since then, we have been conducting voluntary activities for a decade to protect
people’s health and the environment and to maintain safety for the whole life cycle ofchemical products from manufacturing, logistics, use, to final consumption anddisposal.
We have positioned environmental management as one of the core strategies andincluded a theme of “environment and energy” as one of the important growth strategies
in our medium-term business plan. Environmental management is a business philosophy
that places a priority on the environment. We aim at enhancing corporate values andachieving a sustainable society by transforming all our business activities into
environmentally friendly ones. In particular, we have concentrated our energy on
recycling waste and by-products by utilizing our ability to manufacture chemical
products and cement. In fiscal 2005, we received waste and by-products in the amountof 1.90 million tons from the outside to manufacture cement. We are proud of the factthat the Tokuyama Group is contributing to the “creation of an environmentally friendly
country” through the development of various eco-friendly products and environmental
technologies.
In the new three-year business plan starting from fiscal 2005, we introduced theconcept of corporate social responsibility (CSR) to ensure the sustainability credentials
of our company. Based on this concept, we will enhance a framework to promote
environmental management, process safety, compliance and energy saving to help
prevent global warming and so forth. In other words, we aim at developing excellent“human resources” through the enhanced framework and the promotion of the abovementioned activities.
Today, it is required to achieve a society in which each person can truly feelhappiness to pass on to future generations. We are required to simultaneously improve
environmental, economic and social elements to create a sustainable society.
Tokuyama, as a chemical enterprise with excellent technologies, aims at becoming a“company consistently relied on by society and customers “by contributing to theimprovement of these elements.
Following on from last year, our report on our environmental and social activities has
been enriched. We sincerely hope that you will be able to gain a deeper understandingof our activities and give us your opinions and comments.
July 20, 2006

Shigeaki Nakahara
President
Responsible Care Report 2006 02

RC Management

Basic Philosophy of Responsible CareTo contribute to the creation of a sustainable society and fulfill our company’s social responsibilities, wehave established a basic policy and action objectives. We are promoting “Environmental Management,”
which emphasizes the environment in all of our business activities. We are voluntarily and actively
promoting responsible care activities on a company-wide basis.

Basic

PolicyAs a member of the Japan Responsible Care Council, Tokuyama Corporation carries out
Responsible Care activities that protect the environment and preserve safety and healththroughout the entire chemical substance life cycle, from development and manufacturing, todistribution, use, final consumption and disposal.
Our social mission is to aggressively tackle and solve environmental issues in particular, which,in turn, will lead to sustainable corporate and social development. Based on this recognition, weare promoting “Environmental Management,” a management policy that emphasizes theenvironment, in all of our business activities, including development, manufacturing and sales.

ActionObjectives

1 Promote environmental protection.
● Implement ISO14001 based Environmental Management System and reduce environmental loads.

2 Observe laws and regulations.
● Observe international rules, local laws and regulations and industrial standards.
● Thoroughly practice internal export control rules.

3 Promote energy conservation and curb global warming.
● Achieve the lowest unit energy consumption in the industry for each of our products.

4 Promote resource recycling and work towards the reduction
and proper management of waste materials.
● Promote material recycling and thermal recycling of resources.
● Work towards the paperless office.

5 Promote process safety, disaster prevention andoccupational health and safety.
● Aim for zero accidents and disasters based on principles of safety self-management and self-

responsibility.
● Secure comfortable work environment and protect people’s safety and health.

6 Ensure strict product safety standards.
● Offer environmentally-oriented products that can be safely used.
● Provide clear information on how to use the product and what care to take.

7 Deepen trusting relationships with the society.
● Publicly disclose information on Company’s activities concerning environmental protection,

process safety, occupational health and safety and chemical product safety.
● Actively pursue dialogue with local communities.

Responsible Care: Responsible Care (RC) is a self-management activity by a company that either manufactures orhandles chemical substances, to implement and improve measures for protecting the “Environment, Safety and Health” ofsociety and staff throughout the chemical substance handling process—from inception in the research and development
through manufacture, distribution and use, to final consumption and disposal. These activities also includes public
disclosure of company performance and social dialogue.
Born in Canada in 1985, Responsible Care has spread to 52 countries. The Japan Responsible Care Council (JRCC) wasestablished in 1995 within the Japan Chemical Industry Association and has 103 companies registered as of April 2006.

03 Tokuyama Corporation

Most of the raw materials and energy we use are for producing our main products, including cement,chemical products and polycrystalline silicon. Most of the energy needed for producing these products is
supplied from our private power plant. We are making efforts to reduce environmental impacts byaccurately assessing and managing the input and output of our manufacturing operations.

INPUTOUTPUT

Waste andby-products
1,910

Carbon dioxide

Fuel
2,100

(CO2)

7,260
Waste materials(incinerated/landfill)

Privatepower plant(53,900,000GJ)

Raw materials
7,690

Tokuyama
Factory

Cementplant

Chlorine
derivatives
plant

Chlorine

Chlor-alkali
plant
Chlorine, hydrogen, alkaline
Alkaline

Silicon andsilica plant

Alkaline

Industrial water
49,500

Soda ash plant

EnergyWaste andby-products

21
Environmentalload materials
14
Industrial
wastewater
21,400Wastewater,such as coolingwater

Kashima Factory(unit: 1,000 tons)(All figures are for fiscal 2005 and relate to Tokuyama Corporation only.)

Products
7,220

Chemicalproducts● Caustic soda
● Soda ash

Caustic soda manufacturing plant● Polyvinyl chloride

resin● Polypropylene film

Polyvinyl chloride resin

Soda ash

Polypropylene film

Specialty
products

Aluminum nitride

Cement, Building
materials and Others● Polycrystalline silicon● Cement● Aluminum nitride● Cement type stabilizer● Dental materials● Plastic window sashes● Solvents for semiconductor● Construction andbase materials

housing materials
Plastic window sashes

Dental materials
Polycrystalline silicon

Solvents for semiconductor
base materials

Ready-mixed concrete production plant(Products of Tokuyama Group companies are included.)

Responsible Care Report 2006 04

RC Management

Material Flow Balance in Our Production Activities

RC Management

Results and Evaluation of Fiscal 2005 Activities
On a company-wide basis, we are promoting Responsible Care (RC) activities in the categories ofenvironmental preservation, process safety, occupational health and safety, chemical product safety,
trusting relationships with local communities and others. We have already achieved our environmental
goal for the period up to fiscal 2005: “reduction of unit energy consumption by 15% from the level of fiscal
1990”; and also achieved the environmental goal for a period up to fiscal 2010: “reduction of unit energy
consumption by 17.5% from the level of fiscal 1990.”
We have established priority themes for each of thecategories of RC activities and promoted activities on acompany-wide basis. To improve RC activities on acontinual basis, we have established a new three-year plancommencing with fiscal 2005 and are appropriately
implementing environmental, quality and occupational healthand safety management systems.
In fiscal 2005, we further improved unit energy
consumption by promoting our energy saving efforts. The
waste utilization rate slightly decreased from the level of theprevious fiscal year because some waste was used for

landfills. Despite this, the waste utilization rate remained at ahigh level of 93.9%.
We have significantly reduced the emission of PRTR
substances and hazardous air pollutants by implementing
effective emission reduction measures.
We will continue to make efforts to reduce the emissionof SOx and COD that have increased slightly.
In the category of occupational health and safety,
Tokuyama Factory, our main production site, has achieved
the Category III zero-accident record.

■ Fiscal 2005 RC Activities—Priority Issues and Performance
Segment

Priority Issues

Performance

Related pages

Management• Review by Senior Management• RC Administration Committee• Safety and Environmental Audit

P.7
P.8

Environmental
preservation• Environmental load
reduction• Energy conservation• Waste recycling• Reduction in environmental burdens(air, water quality, etc.)• Reduction in the emission of PRTR
substances and hazardous air pollutants• Decrease in unit energy consumption• Promotion of zero-emission activities• Promotion of green purchase• Reduction of the emission of NOx, soot, dust, etc.
• Reduction of the emission of 1,2-dichloroethane (EDC) , etc.
• Promotion of energy conservation• Utilization of waste as raw materials and fuel for producing cement• Green Procurement of office supplies and lighting equipment• Faithful implementation of the Environmental Management System

P.13–14
P.13–14
P.12
P.9–10
P.8
P.7

Process safety• No accident• Promotion of risk management• Promotion of safety self-management• Acquisition of the certificate of authorized high pressure gas
inspector• Safety education and training for logistics companies and audit

P.23
P.22

Occupational
health and safety• No disaster• Achievement of Category III zero-accident record

P.23

Chemical productsafety• Ensured product safety• Product assessment, labeling inspection• Improvement of MSDS, investigation of potentially poisonous anddeleterious substances• Participation in the HPV program

P.21–22

Trusting relationships
with local communities
and society at large• Participation in community activities• Harmonious coexistence with local
communities and society at large

Promotion of RC program
to group companies• Dissemination of RC activities• Participation in community’s volunteer activities• Dialogue meetings on RC activities with local communities

P.25–26(on a regional basis, or on a factory basis)• Factory tours for stake holders• Safety and environmental inspection• Acquisition of ISO certification• Sharing of RC-related information

P.29–30■ Performance of Environmental Preservation Measures in Fiscal 2005 (Tokuyama Factory)
Base fiscal
year

FY 2005 target

Soot and Dust

2004

10% reduction

5% reduction

11% reduction

COD

2004

0%

8% increase

0%

N

2004

0%

1% increase

0%

P

2004

0%

48% decrease

0%

PRTR

2004

25% reduction

13% reduction

29% reduction(vinyl chloride monomer (VCM), EDC)

2004

40% reduction

19% reduction

46% reduction

Energy conservation

Unit energy consumption
index

1990

15% improvement

18.1% improvement

17.5% improvement(FY 2010)

Recycling

Waste material effective
utilization rate—

94.4% or more

94.0%

94.7% or more

Zero-emission

Zero emission rate—

99.8% or more

Segment

Items
Air

Reduction ofenvironmental
impacts

Water

PRTR

Global environment
conservation
Reduced wastematerials

Hazardous air pollutants

FY 2005
performance

99.8%* Evaluation (05 Tokuyama Corporation: achieved,

Evaluation*

FY 2007 target

99.9% or more
: almost achieved,: unsatisfactory)RC Management

Environmental Accounting
From fiscal 2000, we have adopted an Environmental Accounting System with the aim of assessing andanalyzing the investment and expenditure needed for environmental conservation activities and theireconomic benefits and utilizing the data for more efficient environmental management. In fiscal 2005, theinvestment increased by about 800 million yen over the previous year’s level due to the expansion offacilities to convert waste plastics into fuel, etc. Expenses and economic benefits remained almost
unchanged from the previous year’s level.
■ Trends of Accumulated Environmental
Investments (cumulative since FY 1990)

Environmental Conservation Costs
About 30% of environmental investment is used for pollution
prevention and about 70% for conservation of the global
environment. In fiscal 2005, environmental investment was
mainly made for the renewal of electric precipitators at ourpower generation plant, the adoption of new coolers for
cement plants and the expansion of facilities to convert
waste plastics into fuel.

Economic Benefits

300(JPY 100 million)

272
246

250
208

218

228

200

150

Economic benefits are evaluated based only on actual
revenue figures, where any projected benefits are excluded,in areas of energy conservation, sales of relevant materials
and reutilization of waste materials, which helps minimize
processing for disposal and reduce consumption of raw
materials and fuel. In fiscal 2005, economic benefits in theamount of about 1.3 billion yen were generated. This amountremains almost unchanged from the previous year’s level.

100

50

0

01

02

03

04

05 (Fiscal year)

Amount Invested(JPY million)

Total Expenditure(JPY million)

698

3,343

1,876

885

3

965

0

0

■ Environmental Conservation Costs
Major Expenditure Items

Classification

Factory site costs

Pollution
prevention

Renewal of electric precipitators and bag filters,
conversion of the exhaust gas treatment tower,
and improvement of drain ditches

Global environment
conservation
Resource
recycling

Adoption of new model cement coolers andinstallation of energy saving equipment
Efficient use of resources

Upstream/downstream costs
Costs of management activities

Installation of environmental analyzer

12

286

Research and development costs

Development of waste treatment technology

099

Costs of social activities

Tree-planting at factories and preparation of the
Responsible Care Report249

Costs of environmental damage

Levies and management of disused mines

0

180

2,591

5,807

Total

■ Economic Benefits
Material Benefits(1,000 tons)

Economic Benefits(JPY million)

Remarks

Benefits from energy conservation—

125

Benefits from lower electricity and steam
consumptions

Revenues from salable materials

96

219

Revenues from selling metal scraps,
waste oils, waste acids and alkalis

222

569

Processing costs reduced by reutilizationof waste materials

225

414

Item

Benefits from lower waste materials
processing costs
Benefits from lower raw material and fuelconsumption realized by waste reutilization
Total

1,327

* Costs were compiled according to “Environmental Accounting Guideline—2002” of the Ministry of the Environment.
Responsible Care Report 2006 06

RC Management

RC Promotion and Management Systems Operation
We have a company-wide system to conduct RC activities that are defined in the “RC Action Objectives.”
Pursuant to the respective management systems and based on the “Plan, Do, Check, Action” (PDCA)
cycle, we are making continuous improvements. In fiscal 2005, Tokuyama Factory established a new
Safety Management System.

RC Promotion System
Our RC Administration Committee, which draws up thehighest-level policies on our RC activities, is chaired by the
President and comprises board members. The committee
discusses and approves company-wide RC policies andother environment, safety and quality-related measures.
Under this committee are various subordinate
organizations: the Environmental Measures Committee, theSafety Measures Committee, the Products Safety andQuality Assurance Committee and the Product Assessment
Committee. These subordinate organizations are
responsible for discussing specific action plans andassessing product safety. Each subcommittee is chaired bya director responsible for company-wide issues concerning
the environment, safety, or quality. Heads of relatedcompany departments are appointed as subcommittee
members.

Evaluation and Management System
for RC Activities
We have made a three-year plan starting from fiscal 2005.
To achieve the goals of this three-year plan, we set yearly
policies and related goals, based on which, eachdepartment prepares a specific implementation plan. The
activities undertaken are assessed at the fiscal year end
and the results reflected in plans for the following year.

RC Administration
Committee

Safety andEnvironmental
Assessment
Subcommittee

Decision-making
Function

Organization for Standardization (ISO) and provides the requirements for Environmental
Management Systems. ISO 14001 certification is awarded to an organization that, based on theenvironmental management system implemented according to a systematized process, operates its
business in an environment-oriented manner and achieves continual improvements throughcorrective actions, as necessary.

ISO 9001 Quality Management System
We have also acquired an ISO 9001 certification (Quality
Management System) for our main products. All
departments of our company, including sales anddevelopment departments, have implemented this systemsince fiscal 2002.

■ Evaluation and Management System for
RC Activities (Environmental Preservation)
RC Activity Goals

Environmental
MeasuresCommittee
Safety Measures
Committee
Product Safety andQuality AssuranceCommittee

RC ResearchLaboratory(Support
Organization)

Responsible
Care & Eco
Management Dept.
(Secretariat)

Checks safety of chemicals
and assesses theirenvironmental impacts
using simulations.
Environmental
measurements, work
environment measurements
and ultra-trace analyses ofcontrolled substances andchemical pollutants are also
carried out.

Promotes RC activities
throughout the Company andits group companies covering
areas of the environment,
safety and quality.

07 Tokuyama Corporation

ISO 14001: ISO 14001 is one of the major international standards developed by the International

Reflected in next year’s goals and plans

Product Assessment
Committee(Labeling Assessment
Subcommittee)

ISO 14001 Environmental Management System
Tokuyama and Kashima Factories have already acquired
ISO 14001 certification, an international standard forEnvironmental Management Systems.
In line with company-wide environmental policy, eachfactory sets itself an environmental policy and the specificgoals to be achieved in areas covering lowering
environmental loads, energy conservation, reducing wastematerial disposal and promoting resource recycling.
At the company headquarters, branch offices andresearch laboratories, activities are under way based on
their respective policies and goals in the areas of energy
conservation, reducing waste material disposal and resource
recycling.

ISO 9001: ISO 9001 is one of the major international standards developed by the International
Organization for Standardization (ISO) and provides the requirements for Quality Management
Systems. It enables a company to establish dependable quality management systems within its
organizations and thereby further address customer satisfaction.

■ RC Promotion System

Assessment
Function

Operation of Management Systems

Environmental Load
Reduction Goals
Mid-term Environmental
Plan
Environmental
Management Plan

Environmental
Management Activities

ISO 14001 Environmental
Management System
Safety and Environment
Assessment System
RC Inspection and
Auditing System

Assessment of
Activities

Environmental Accounting
Environmental
PerformanceHealth and Safety Management System: In the area of occupational health and safety, thissystem requires the company to list dangerous/hazardous tasks, make risk assessments
and provide appropriate measures to be adopted for such tasks in the order of the highest
risk first, thereby lowering the overall risk level. Performance is continually andsystematically improved as the above activity proceeds in a cycle of“Planning—Action—Assessment—Corrective Action.” The “JCIA—New Occupational Healthand Safety Guidelines” are prepared for chemical companies, based on the relevant
guidelines issued by the Ministry of Health, Labor and Welfare, as well as International
Standard OHSAS 18001.

Assessment Systems
With the necessary assessment systems in place, we areworking towards lowering environment- and safety-related
risk levels.
The Safety and Environmental Assessment
Subcommittee and the Product Assessment Committee areat work making strict assessments on environmental, safety
and product safety management performance.
Safety and Environmental Assessment
Before any facility is newly installed, expanded or
refurbished, we require a safety and environmental
assessment to be carried out. The assessment is designed tocheck the design safety of equipment, the safety of thematerials being handled, compliance with laws andregulations and impacts on the environment. This helps us in
our effort to make our facilities safe and easy to operate,easy to maintain and accident-free. The assessments apply
to three stages: Basic Plan Assessment, Design Assessment
and Pre-Operational Assessment. Through such stages,
assessments are made to ensure that facilities are of safeand environment-oriented design, built to the design
requirements and ready for operation.
Product Assessment and Labeling Assessment
To ensure product safety, our Product Assessment process
is in effect at each stage, from research and development
through to shipment of our products. This risk assessment
covers a variety of aspects including safety of the chemical
substances involved, environmental impacts, human healtheffects, compliance with laws and regulations, etc. Our
Labeling Assessment helps us ensure that the labels that we
carry on our products contain no defects in their instructions
and/or warnings and that they contain sufficient and easyto-understand information.

Auditing System
Our Auditing System is in place to verify that activities
undertaken at each factory are in line with company-wide
policies.
Safety and Environmental Auditing
We conduct this type of auditing on a yearly basis to verify
the appropriateness of our accident/disaster prevention
measures and management activities for environmental
conservation. The auditing team is headed by the director
chairing the Environmental and Safety Measures Committee
and conducts auditing for all factories and offices,
authorized inspection organizations under the High Pressure
Gas Safety Law, logistics departments and the HealthManagement Center. A report is compiled based on theauditing results and distributed to all departments
concerned. The results are also presented to the President.

RC Management

Health and Safety Management System
Based on the “JCIA—New Occupational Health and Safety
Guidelines” of the Japan Chemical Industry Association, we
have implemented a Safety and Health Management System
within our respective factories and commenced operation ofthese in fiscal 2003. In fiscal 2005, Tokuyama Factory
expanded this system into a Safety Management System,
including various safety-related activities.

Safety andenvironmental audit(Tokuyama
Factory, February
6, 2006)

Internal Auditing
Our internal auditing is carried out periodically in accordancewith ISO 9001, ISO 14001 and Safety and HealthManagement System procedures. Progress status of theplanned actions and the systems operational status areaudited and areas of nonconformity identified for corrective
actions.

Internal auditing inaccordance with
ISO 14001(Kashima Factory,
October 20, 2005)

Third Party Auditing
Even after acquisition of the ISO 9001 and ISO 14001
certifications, to ensure continuous improvement we areregularly audited by certification and registration bodies.

ISO 9001
certification
renewal inspection(January 27, 2006)

Promotion of Green Procurement
We have included the promotion of Green Procurement inour basic procurement policy. We are actively promoting a
Green Procurement campaign in purchasing copy paper,
office supplies and lighting equipment.

Education and Training
Employee education and training on the Responsible Care
activities are provided on a hierarchical group basis.
For environmental management, safety management,
occupational health and safety and quality management,“On-the-Job-Training” is provided so that employees canlearn through actual management activities.

Responsible Care Report 2006 08

Environmental Performance

Recycling Outside Waste
Our cement plant actively accepts and effectively recycles a large quantity of inside and outside waste andby-products as heat energy or as raw materials for cement. These waste-reduction activities greatly
contribute to the prevention of global warming through the conservation of natural resources and areduction in CO2 emissions and to the creation of a recycling-oriented society.

Efficient Use of Resources and Energy
Our cement plant, which commenced operations in 1938,
was designed to be capable of effectively utilizing the byproducts from our own soda ash plant and coal cinders fromour own power plant as part of the raw materials for cement.
Today we also accept and recycle a large quantity of waste
and by-products from outside.
Most waste and by-products contain the same elements
as those contained in limestone, clay, silica, etc. that areused as raw materials for cement. Therefore, they can beused as raw materials for producing cement. Flammablewaste can be used as an alternative fuel instead of coal. Theinternal temperatures of the cement kiln* reach as high as
1000–1800°C, high enough to allow complete combustion of
any flammable materials. Another feature is that the ash
remaining after combustion is still used as a constituents of
cement, thereby leaving no residues such as incinerationash. Another feature is that the ash remaining after
combustion can be used as a constituent of cement, thereby

leaving no residue-unlike ordinary incinerators.
Thus, elements of waste are effectively recycled as heat
energy or as raw materials for cement. Therefore, theeffective utilization of waste and by-products at the cement
plant greatly contribute to the creation of a recycle-oriented
society through a reduction in consumption of exhaustible
resources, help to reduce global warming due to a decrease
in CO2 emissions and contribute to the extension of service
life of final disposal sites in Japan.
The waste materials and by-products reutilized in ourcement plant in fiscal 2005 amounted to 2,210,000 tons,
including 310,000 tons of waste from inside our company. Of
this, 2,140,000 tons were used as the raw material
substitutes (Material Recycling) and the remaining 70,000
tons were used as fuel substitutes (Thermal Recycling). Unit
consumption of waste/by-products per ton of cement
increased by 3.4% from 406 kg in fiscal 2004 to 420 kg.

■ Flow Diagram of the Waste and By-products Recycling Process in Cement Manufacturing(Figures represent those of fiscal 2005)

Products
As raw materials
Ash after
combustion(material recycle)

2.14 mil. tons
No residue
Used as elementsof cement■ Trend of unit consumption of waste
and by-products

As fuels(thermal recycle)

500(kg/t-cement)

396
400
300

381

401

406

420

70,000 tons

277

200

Cement plant

100
0

91

01

02

03

04

05
(Fiscal year)* A cement kiln is a rotating furnace used to sinter the raw materials in the cement plant.

09 Tokuyama Corporation

VOICE

Recycling a Variety of Waste Materials“We pursue recycling without
any secondary waste. This is aworthwhile job, although we still
have much to do.”Waste Plastics
We began thermal recycling of waste plastics at the cementkiln in 1999 and have expanded recycling capacity year by
year. In December 2005, the No. 4 unit at the waste plastic
crushing facility started operation and annual recycling
capacity increased to 125,000 tons. In fiscal 2005, a total of
59,000 tons of waste plastics were recycled.

Coal Ash/Sludge
We accepted a total of 1,020,000 tons of coal ash fromthermal power plants, sewage sludge from municipal
sewerage systems and waste soils from construction sites
and used them as the clay substitute in fiscal 2005.

Manager, Resource Recycling Business Group,
Cement Business Division

Waste recycling at the cement plant without generating secondary
waste is eco-friendly recycling without causing further environmental
impact. Constituents and properties of waste vary from lot to lot and it
sometimes contains foreign materials. Therefore, it is important tocheck the constituents of waste before accepting it and maintain its
conditions after accepting it in order to maintain the quality of cement.
The increased demand for waste plastics as an alternative fuel due tothe high cost of fossil fuels, as well as their export to China because of
their high value, make it increasingly difficult to collect waste plastics.
Under these conditions, we are actively engaged in waste plastic
recycling in an effort to contribute to the realization of a recycleoriented society.

tons of dehydrated cakes of municipal waste incineration
ash from Yamaguchi Eco-Tech and used them as raw
materials for cement.

Dehydrated Cakes of Municipal Waste Incineration Ash
Yamaguchi Eco-Tech Co. (a joint venture company recyclingof municipal garbage incineration ash generated in
Yamaguchi prefecture. The incineration ash originating frommunicipal garbage and industrial waste is processed fordioxin removal and water wash desalting and then used as
raw materials for cement. In fiscal 2005, we accepted 19,000

Waste and By-Products Generated from Inside
Our Company and Accepted from the Outside■ Volume of Material Recycling

SludgeConstruction sludge, water works sludge, sewage sludge, paper sludge, fuelsludge, industrial wastewater sludge

Waste Soils

1.973

2,000
(1,000 tons)

Construction waste soilsd

1,819

1,962

2,004

03

04

2,143

1,550

Waste Incineration Ash

1,500

We recycle incineration ash generated from municipal
waste incineration facilities in Yamaguchi prefecture after
the ash is pre-treated by Yamaguchi Eco-Tech.

1,000

Coal Ash
Coal ash generated from thermal power plants, including
our private power generation plant

Facility to treat sludge

500

Waste Liquid
Film developer and waste alkali

0

Slag

91

01

02

Blast furnace slag, converter slag, steel-making slag, neutralization slag

Waste Plastics (Excluding Vinyl Chloride)
We have developed the technology to inject quantities of crushed waste
plastics into the front portion of the cement kiln. We have expanded ourcapacity to accept, crush and incinerate such waste each year in
response to increased requirements.

Heavy Fuel Oil Ash■ Volume of Thermal Recycling
80

80

85

(1,000 tons)

70

60
51

Heavy fuel oil ash generated from thermal power plants, etc.

Waste Tires

05(fiscal year)

55

40

Acceptance of chipped waste tires

Animal Sludge
Meat-and-bone meal

20

Wood Chips
Waste Liquid
Inflammable waste liquid

4

Facility to accept waste
film developer

0

91

01

02

03

04

05
(fiscal year)

Responsible Care Report 2006 10

Environmental Performance

No. 4 unit at the waste
plastic crushing facility

Yoshinori MizumotoEnvironmental Performance

Reducing and Recycling Waste Materials
We are making an effort to reduce waste generation and recycle waste with an aim of achieving zero
emissions (zero emissions: aim of reducing the quantity of the waste from factories etc. that is sent tolandfills to zero). In fiscal 2005, the zero emission rate remained at 99.8%.

Waste Management
Waste materials generated from our facilities amounted to350,000 tons in fiscal 2005. We have actively promoted therecycling of waste materials generated both inside andoutside our company, such as the reutilization of wastematerials as raw materials and fuel for producing cement at
Tokuyama Factory. Since some waste materials were used

■ Breakdown Graph of Industrial Waste Handlingin Fiscal 2005
Zero emission rate
99.8%

Effective utilization rate
93.9%
Incineration

18.2
5.2 %

Management and Disposal of PCB Waste

Landfills

20.6

0.7

5.9%

Outsiderecycling

for landfills, the quantity of waste materials used as raw
materials for cement was reduced. As a result, effective
utilization rate of waste materials remained at 93.9%, whichis slightly lower than the figure for the previous year.
Our efforts in the field of minimizing landfill waste andmaximizing recycling of such waste allowed us to achieve a
99.8% “zero-emission” rate for landfill waste.
In fiscal 2004, Tokuyama Factory acquired certification of“Yamaguchi Prefecture Eco Factory,” as an appreciation of
their efforts. Under the “Eco Factory Certification System,”
Yamaguchi prefectural government grants a certification to
those factories that are actively involved in the reduction andrecycling of industrial waste generated. The system intends
to contribute to the formation of a recycle-oriented society.

Both Tokuyama and its group companies properly storetransformers, capacitors, etc. containing PCBs,* inaccordance with the requirements of the “Special Measures
Law for the Proper Treatment of Polychlorinated Biphenyl
Waste.” In fiscal 2005, we placed an advance order for PCB
disposal with Japan Environmental Safety Corporation by
utilizing its early registration system. We continue toappropriately dispose of all PCB-containing waste.

0.2%

Total
waste
generation
350(Unit: 1,000 tons)

Inside recycling(Raw materials and fuels)

310
88.7%

Zero emission rate (%) = 1 –Recycled Volume (inside & outside)
Total Waste Generated

100■ Waste Materials Flow * All numbers refer to fiscal 2005.
Disposal to landfill(inside company)
200 tons

Disposal to Landfill (inside & outside)
Total Waste Generated

100

Waste
generated
350,000 tons

VOICE
Our slogan is: “They are refuse,
if mixed—but they are resources,
when sorted.”
Assistant Manager, Environmental Control Section,
Environmental & Safety Department, Tokuyama Factory

Tokuyama Factory has established its own waste sorting and collection
system to promote the reduction of landfill waste. Thanks to thissystem, we have significantly reduced the quantity of landfill waste toabout one-third of the level before the introduction of the system. We
believe it is our mission to maintain and upgrade this system to meetthe needs of the times. We will continue efforts with the aim ofachieving genuine zero emissions under the slogan, “They are refuse, if
mixed—but they are resources, when sorted.“

Waste
discharged
outside19,400 tons

Incineration(outsidecompany)
700 tons

Recycled internally Inside
Outside310,000 tons
company company

Recycled outside
18,200 tons

■ Effective Utilization Rate for Waste andDisposal to Landfill
40

93.9

36.3

94.8
●

●

94.3
●

93.9
●

95

●

91.2
Landfills (1,000 tons)

Hiromasa Yamakado

Incineration(insidecompany)
19,900 tons

Disposal to landfill(outside company)
500 tons

●

30

90

20

85

10
76.9●
0

90

80

5.5
01

1.2

0.7

0.6

02

03

04

0.7

75
05 (Fiscal year)

Effective utilization rate (%)

Effective utilization rate (%) =* PCB is an abbreviation for Polychlorinated Biphenyl. This is a chlorinated organic compound and produces dioxins when burnt at low temperatures. It is chemically stable, heat-

11 Tokuyama Corporation

resistant, chemical-resistant and provides excellent electrical characteristics such as high insulation performance. It had many applications in electrical equipment, such as utility
transformers, capacitors, etc., until 1972 when its production and use were banned due to the fact that it is harmful to humans. The law requires that transformers, capacitors andthe like, that are already in the market be brought to safe storage at appropriate business units.

Prevention of Global Warming
Tokuyama Factory had established a goal of improving unit energy consumption by 17.5% by fiscal 2010
from the level of 1990 and has been promoting energy saving activities. Tokuyama Factory achieved thisgoal as early as fiscal 2005. Recognizing that it is a company that has a social responsibility to reducegreenhouse gas emissions to help prevent global warming, we continue improving unit energy
consumption to the greatest possible extent.

Promotion of Energy Saving Efforts

Contribution to Global Warming
Prevention Measures of Consumer andTransportation Sectors
Both Tokuyama and its group companies have contributed
to a reduction in CO2 emissions in the consumer andtransportation sectors, in which CO2 emissions havesignificantly increased, through the sales of products,
including silica for energy saving tires. Furthermore, we aredeveloping technologies for the prevention of global
warming, including those for polycrystalline silicon for solar
cells and electrolyte membrane for fuel cells.

We participate in the “Cool Biz” campaign that started as anational movement in the summer of 2005. In addition toconventional energy saving activities at our offices, we
encouraged our employees to work in light clothing and thetemperature of air-conditioned rooms was strictly
maintained at 28°C. Thanks to these efforts, Tokyo head
office could reduce power consumption in four months from
June to September 2005 by 15% from the level of thecorresponding period of the previous fiscal year.

■ Energy Consumption

Tokuyama alone

60,000(1,000 GJ)

50,0001,700Group companies

2,800

3,400

53,900

1,600

1,800

50,00051,90053,10049,400

01

02

03

04

40,00030,00020,00038,10010,000
0

90

05(Fiscal year)■ CO2 Emissions

Fuel sourced

8,000

Raw material
sourcedGroup companies

200

90

170

2,220

2,290

4,400

4,640

4,800

4,910

02

03

04

05

(1,000 tons)

90

100

2,180

2,150

4,360

01

6,000

2,350

1,960

4,000

2,000
3,350

VOICE
Our task is to reduce CO2
emissions, even if production
increases
Masataka ImadaManager, Factory Administration Department,
Tokuyama Factory

In fiscal 2005, production at the Tokuyama Factory totaled
approximately 16 million tons in cement equivalent, representing morethan a 70% increase over fiscal 1990. Since we have an output
increase plan, production in fiscal 2010 is expected to increase by
more than 100% over fiscal 1990. Accordingly, energy consumption will
increase. However, energy consumption in fiscal 2005 increased byonly about 40% over fiscal 1990 thanks to the energy saving and waste
recycling efforts of our departments. Energy consumption in fiscal 2010is expected to increase by only about 70% over fiscal 1990. We intend
to further diversify our efforts to contribute to the prevention of global
warming.

0

90(Fiscal year)* Figures of group companies are included in and after fiscal 2001. As for Tokuyama Plant
of Sun Tox Co., Ltd., their actual figures have been included in the Tokuyama data until
fiscal 2004 and included in the group company data since fiscal 2005.

■ Unit Energy Consumption Index (Tokuyama Factory)(Reduction rate %)

0

●

0

-2
-4
-6
-8
-10
-12.1

-12

●

-13.4
●

-14

-16.7

-16

●

-16.9
●

-18
-20

-18.1

-17.5 (Target)
●

●

90

01

02

03

04

05

10
(Fiscal year)

Responsible Care Report 2006 12

Environmental Performance

We place a priority on contributing to the prevention of
global warming and are promoting energy saving activities
to reduce CO2 emissions.
Tokuyama Factory, which accounts for more than 99% of
total energy consumption of our company, has established a
midterm target to improve unit energy consumption by 17.5%
by fiscal 2010 as compared with fiscal 1990 and is promoting
energy saving activities. Tokuyama Factory has alreadyachieved this target in fiscal 2005. Tokuyama Factory’s target
for fiscal 2010 is far more challenging than the overall target ofJapan Chemical Industry Association (improvement in unit
energy consumption by 10% by fiscal 2010 as compared withfiscal 1990).
In fiscal 2005, Tokuyama Factory could improve unit
energy consumption by 18.1%, which is larger than the figure
achieved in fiscal 2004, as compared with fiscal 1990. This
performance is attributable to equipment improvements andhigher capacity equipment replacements in the private power
generation plant, chemical product manufacturing process,etc. Tokuyama Factory is continuing its efforts for further
improvement in unit energy consumption.

Efforts at Our Offices

Environmental Performance

Reduction of Air and Water Pollutants
We have long taken various measures to reduce air and water pollutants. For pollutants specified in the
PRTR Law and the Air Pollution Control Law, in particular, the emission of these pollutants has been
gradually reduced due to our active efforts.

SOx Emissions

NOx Emissions

SOx* (sulfur oxides) are emitted from facilities such as
boilers, sintering furnaces, drying furnaces, etc., where
heavy fuel oil or coal is combusted. In our case, most SOx
emissions are from power plant boilers. To reduce SOx
emissions, we have installed flue gas desulfurizationequipment in each boiler system.
In fiscal 2005, SOx emissions increased as the operating
rate of our power plant increased.

■ NOx Emissions■ SOx Emissions
3,000

NOx* (nitrogen oxides) are also emitted from facilities suchas boilers, sintering furnaces, drying furnaces, etc., where
heavy fuel oil or coal is combusted. Most NOx emissions
from our facilities are from power plant boilers and cement
sintering furnaces. We have already installed denitrationequipment and low NOx burners in these boilers andsintering furnaces.
In fiscal 2005, NOx emissions slightly decreased due tothe enhancement of denitration, despite the high operating
rate of the facilities.

12,0002,890

10,800(Tons)(Tons)

2,500

2,310

2,260
2,010

2,000

1,880

10,000

1,000

4,000

500

2,000

01

02

03

11,50011,400

8,000
6,000

90

10,900

1,720

1,500

0

10,00010,400

04

0

05

90

01

02

03

04

05
(Fiscal year)(Fiscal year)

Soot and Dust Emissions

VOICE“Operational mistakes are eliminatedby developing ideas and checking
operations thoroughly. We aim at
maintaining zero discharge of hot media.”

Soot and dust* are emitted in the combustion process of fueland other materials in the power plant boilers and cement
sintering furnaces. We have installed high performance dust
collectors to reduce soot and dust emissions.
In fiscal 2005, soot and dust emissions decreased as thedust collectors worked effectively due to periodic inspections.

Hiroyasu Morikawa■ Soot and Dust Emissions

Assistant Manager, Advanced Materials
Manufacturing Department, Kashima Factory(Tons)

When producing chemical products under the batch processing
system, we adjust temperatures by sending either a hot medium or acoolant to the outer casing of the reaction vessel. Since thischangeover is made manually, we must avoid operating mistakes.
Therefore, we make it a rule to make “finger pointing and calling” when
any changeover is made and to check things out after the changeover
has been effected. In addition, we use not only chemical symbols but
also “kanji” (Chinese characters) to indicate the fluids inside the pipes
so that we can visually confirm the fluid with ease. In fiscal 2005, we
achieved zero discharge of hot media into the environment byerroneous operations. From now on, we will promote a reduction inenvironmental impacts by developing ideas and continuing zero
discharge.

300

275

272

259

254

250

235

200

179

150
100
50
0

90

01

02

03

04

05

(Fiscal year)* SOx refer to sulfur oxides, which are produced primarily by the combustion of fossil fuels such as coal and oil. They are known to cause respiratory disorders and to be a

13 Tokuyama Corporation

causative agent of acid rain.

* NOx refer to nitrogen oxides, which are included in the exhaust gases from automobiles and factories. They are a contributor to photochemical smog and acid rain.
* Soot and dust refer to fine particles of soot and dust contained in the emissions from smoke stacks.

Factory Wastewater

Hazardous Air Pollutants ReleaseTokuyama Factory releases some 20 million tons of factory
wastewater each year into public waters. We have a stringent
monitoring system to keep the hydrogen-ion concentration(pH) and suspended solids within their respective limits.
The wastewater from our Kashima Factory is treated at
the terminal treatment facilities.

Of the twelve substances left to corporate self-management
under the Air Pollution Control Law, four substances,including chloroethylene (vinyl chloride), are produced byour company. We have set ourselves a voluntary program toachieve the necessary reductions.

■ Hazardous Air Pollutants Release120(Tons)

25.0

Chloroethylene (vinyl chloride)

103(Million tons)

21.1

20.0

18.8

19.8

21.2

21.4

1,2-dichloroethane

100

Chloroform

21

Dichloromethane (Methylene chloride)

80
15.0

14.3
60

47

10.0

54

53

12

10

18

22

49
11

40
5.0

7
20

0

90

01

02

03

04

(Fiscal year)

0

33
9

10

8

17

14

11

11

01

02

03

2
5
04

10

28

05

19

95

Release of COD, Nitrogen and Phosphorus
We have a system in place to prevent water pollution.
Activated sludge process equipment is in operation
downstream of the process where organic constituents are
involved, to reduce COD* (Chemical Oxygen Demand).
We began to measure the release of nitrogen andphosphorus in fiscal 2004 because these substances are
subject to the total amount controlled under the Water
Pollution Control Law in that year. The release of thesesubstances is well below control levels.

■ COD Release

3 1
05(Fiscal year)

We compile reports on all PRTR substances and file them asnecessary in accordance with the PRTR* Law, while at thesame time, we pursue reductions in releasing such
substances. In fiscal 2005, we had 27 substances that wewere required to report on.
In fiscal 2005, the total release of these substances
decreased to 60 tons as we implemented measures todecrease the release of 1,2-dichloroethene (EDC) andenvironmental equipment worked effectively.

Tokuyama alone
157

150
128

134

135

145

250
(Tons)

Group companies

237

200
146

150
100

120
100

90

88

98

110

100
68

50

50
0
90

9

Release of Substances Regulatedby the PRTR Law

180

0

12

■ Release of Substances Regulated by the PRTR Law

200(Tons)

25

01

02

03

04

98

01

02

03

04

100
60

05
(Fiscal year)

05(Fiscal year)■ Release of Nitrogen and Phosphorus(kg/day)

Item

Legal regulation
value

2004
Fiscal year

2005
Fiscal year

Nitrogen

5,280

260

260

Phosphorus

270

21

11

Dioxin Measures
Waste incinerator, waste oil incinerators and part of the vinyl
chloride monomer (VCM) production facilities are regulated by
the Special Measures Law for Countermeasures against
Dioxins.
The measured concentrations of dioxin in emission gas
and wastewater are well below control levels.

* COD is the abbreviation for Chemical Oxygen Demand. It shows the amount of oxygen required to oxidize organic matter in the water and indicates the level of watercontamination.

* PRTR Pollutant Releases and Transfer Register, is a system for the compilation and publication of data concerning harmful chemical substances with respect to theirsources, the amount of their environmental emissions and the amount released from factory in waste materials.

Responsible Care Report 2006 14

Environmental Performance■ Factory Wastewater ReleaseEnvironmental Performance

Development of Environmentally Friendly
Products and Environmental Technologies
The development of environmentally friendly products and recycling technology constitutes one of theimportant elements needed for creating a recycling-oriented society. In fiscal 2005, Tokuyama and its
group companies promoted various activities, including the development of “hydrocarbon-based
electrolyte membranes” for fuel cells and material recycling of liquid developer waste.

Development of “Hydrocarbon-BasedElectrolyte Membranes” for Fuel Cells*

Polycrystalline Silicon for Solar Cells
Contribution to Energy Saving through Solar Cells

Broad Lineup of Products, Including an Anion Type
Direct methanol fuel cells (DMFCs)* are expected to become
the next generation power source for portable terminals,
including cell phones and laptop PCs, replacing lithium ion
batteries. In fiscal 2004, we developed low cost, highperformance hydrocarbon-based electrolyte membranes* for
DMFCs. In fiscal 2005, we established a system to introduce
products of various types to meet the needs of users, suchas high-output type and highly concentrated methanol fueltype, in the DMFC market that is expected to emerge in2007. Furthermore, we developed anion-type hydrocarbonbased electrolyte membranes as a world first and began tosupply samples. As is the case with hydrocarbon-based
electrolyte membranes for DMFCs, anion-type hydrocarbonbased electrolyte membranes can be produced at low costand power generation efficiency of these two types is thesame. The above-mentioned products are intended mainly
for the portable terminal fuel cell market. We are now
promoting a study on hydrocarbon-based electrolyte
membranes for fuel cells for cars and houses.

The amount of solar energy that the earth receives in an houris said to be equivalent to the amount of energy consumedby human beings in a year. If solar energy could be usedeffectively through solar cells, a huge amount of otherenergy may be saved. Therefore, facilities to manufacture
photovoltaic generation systems are now being vigorously
constructed in many parts of the world.
As one of the leading companies manufacturing
polycrystalline silicon for solar cells, we place a priority on
technology to manufacture polycrystalline silicon for solar
cells at a lower cost. In fiscal 2005, we constructed averification plant (with a production capacity of 200
tons/year) using the VLD method to manufacture
polycrystalline silicon for solar cells at a higher speed andmore efficiently than the conventional method. Then, we
started a study on full-scale commercial production. We aredetermined to promote energy saving through the diffusionof solar cells.

Verification
plant tomanufacture
polycrystalline
silicon for solar cells

Anion-typehydrocarbon-based
electrolyte
membranes for fuelcells

Ion Exchange Membranes (ASTOM Corporation)

VOICE“Aiming at commercial use
of more environmentallyfriendly fuel cells”
Takeo Kawahara
Assistant Manager, Fine Chemical Sales Department,
Advanced Materials Business Division

In the fuel cell market, technological innovation is rapid. For example,
anion-type hydrocarbon-based electrolyte membranes have been said
to be impractical as fuel cells because their power output was too low
in the past. At present, however, the anion type is said to be next
generation membranes for fuel cells following the DMFC and theperformance of the anion type has recently been significantly
improved. If the anion type is commercially used, it can use bio-ethanol
as fuel. The market will expand further as low-cost metals, such as ironand nickel, can be used as an electrolytic catalyst. We are making aneffort towards our dream of “realizing an environmentally friendly
society.”

Prevention of Environmental Pollution
through Clean Technology
ASTOM Corporation, a Tokuyama Group company,
contributes to the solution of environmental problems with
its separation technology based on ion exchange
membranes, “NEOSEPTA,” and high performance dialyzer,“ACILYZER.” Ion exchange membranes enable selective
permeation of positive and negative ions dissociated insolutions. Traditionally, ion exchange membranes have beenused for salt production, food, fresh water generation,
pharmaceuticals and the treatment of various waste liquids.
Recently, ion exchange membranes have been used toseparate and collect acid and alkaline in waste liquids, treat
leachate at waste disposal facilities and eliminate nitrate
nitrogen from groundwater as part of efforts to prevent theenvironmental pollution. Thus, ion exchange membranes asclean technology are attracting the attention of theinternational community. As a bio-refinery technology that
contributes to the creation of a recycle-oriented society, ion
exchange membranes will be utilized for separating and* Fuel cell: A chemical battery to generate electricity via a chemical reaction between hydrogen inside the fuel cell and oxygen in the air in contrast withelectrolysis of water.

15 Tokuyama Corporation* DMFC: Direct methanol fuel cell that converts fuel methanol into hydrogen using a catalytic electrode in the fuel cell.
* Electrolyte membrane: Membrane to selectively conductions.

High performance
dialyzer “ACILYZER“

about three years and countermeasures appropriately taken.
From now on, we will make our utmost efforts to further
improve this technology and reduce costs so that the closed
system may be utilized not only by liquid crystal
manufacturers but also by other users of liquid developers
without anxiety. We will continue efforts to develop
technologies to manufacture and dispose liquid developersthat generate less environmental impacts throughout the
supply chain (manufacture of liquid developers, use bycustomers and disposal of used liquid developers).

■ Closed System for Liquid Developers at
Sharp Corporation’s Mie Plant“Shanon” Plastic Window Sashes(Shanon Co., Ltd.)

High-Performance Windows Contributeto Household Energy Conservation
Shanon Corporation, one of our group companies,
manufactures and sells “Shanon” plastic window sashes,
which provide an excellent airtight quality, heat and soundinsulation and prevent moisture condensation.
To help prevent global warming, all companies andcitizens are being required to reduce greenhouse gas
emissions. Although reductions are being steadily achievedin the industrial sectors, household emissions are on the riseand need to be addressed through more effective measures.
In this connection, plastic window sashes are receiving
attention due to their ability to conserve energy. A simulation
run by the “Plastic Window Sash Promotional Committee”
indicates a significant improvement in insulation efficiency,
or some 40% reduction in CO2 emissions, can be achieved
per house if single-glazed aluminum window sashes were all
replaced with double-glazed plastic window sashes fittedwith a low emission glass. The government of Japan actively
encourages the diffusion of double-glazed plastic window
sashes. Shanon’s plastic window sashes are a promisingenergy saving measure that will contribute to the preventionof global warming in the future.

“Shanon”—environmentallyfriendly doubleglazed plastic
window sashes

Closed System for Liquid Developers
Goes into Operation

Undiluted liquid
developers

Dilutionadjustment
equipment

Photolithography
process
Used liquid
developers

Tokuyama(dedicated plant)

Used liquid
developers

Recyclingequipment

Sharp Corporation’s
Mie Plant

Chelating Agent “PURIFEED”(Tokuyama Siltech Co., Ltd.)

Supplemental raw material with insignificant
environmental impacts for detergents
Tokuyama Siltech Co., Ltd., our group company,
manufactures and sells crystalline layered sodium silicate“PURIFEED.” This product is a mineral manufactured fromsilica sands and alkaline. In many cases, these products withchelate and alkaline properties are used as supplemental
raw materials for detergents (for both home and industrial
usage).
Traditionally, phosphoric acid and organic materials havebeen used as chelating agents. These chelating agents
caused problems such as the eutrophication of lakes andmarshes and residues in the environment due to low
biodegradability. On the other hand, “PURIFEED” is madeonly of oxygen, silicon and sodium, which exist in quantities
in nature. Therefore, it causes almost no adverse effects on
the natural environment. “PURIFEED” ultimately returns tosand and salts after use. Therefore, this product is now
attracting the attention of many sectors as a supplemental
raw material for detergents with less environmental impact.

Material Recycling of Used Liquid Developers
Tokuyama and Sharp Corporation completed a process todevelop a “material-recycling technology for used liquid
developers at liquid crystal plants.” In April 2005, thecommercial operation of this closed system for liquid
developers (collection, recovery and reuse) commenced,
involving Sharp Corporation’s Mie plant (in Taki-gun, Mie
Prefecture) and our own dedicated plant. Our dedicatedplant could speedily begin operations on a commercial basis
and continued operations satisfactorily. This is because
practical problems were resolved from various viewpoints byconducting practical tests at the pilot plant over a period of

Chelating Agent“PURIFEED”(Electron microscope
photograph:x 40,000
magnification)

Responsible Care Report 2006 16

Environmental Performancerefining organic acid used for biodegradable plastics andcleaning animal waste to make manure.

Social Performance

Reliable Company
Our basic management policy places a priority on compliance as part of corporate social responsibility(CSR). In fiscal 2005, we implemented a Compliance Promotion Program, which contains company-wide
education, awareness building activities, etc., with the aim of establishing a more effective compliancesystem. In addition, we are now working to establish an Internal Control System.

secretariat conducts compliance promotion activities.

Improvement of the Compliance System
Basic Concept
The newly enacted Company Law obligates all companies toestablish an internal control system. Therefore, we are now
working to establish our own Internal Control System. We
understand that compliance is one of the core parts of theInternal Control System and also believe that compliance isessential for a company to fully perform its CSR.
Promotion of Compliance
In July 2003, we revised the “Tokuyama Code of Behavior.”
In March 2004, we established the “Tokuyama Behavioral
Guidelines” and distributed copies to all employees. All
employees are required to carry a copy of the “Tokuyama
Behavioral Guidelines,” which containing “Tokuyama’s Five
Conscience Clauses.”Compliance Promotion System
The Compliance Committee, headed by the President,
determines the basic concept, company-wide policies andsystems/organizations concerning compliance. Its

Establishment of the Compliance Promotion Program
The Compliance Committee established a Compliance
Promotion Program for fiscal 2005 and determined that its
secretariat should conduct the following activities on apriority basis:
1) Enhancement of awareness of compliance2) Assistance to group companies in establishing their own
compliance systems
Implementation of Compliance Promotion Program[Fiscal 2005] As part of education and awareness building
activities, we organized explanatory meetings on the Law for
Prohibition of Private Monopoly and Maintenance of Fair Tradeand the newly enacted Company Law. We investigated thecurrent conditions of compliance systems of our groupcompanies and assisted them in establishing more effective
compliance systems.
[Fiscal 2006] We will implement the PDCA cycle* forcompliance activities.

■ Tokuyama’s Compliance Vision

Tokuyama Code of Behavior

Stakeholders
Localcommunities

Trading partners,
includingcustomers

Shareholders

1. Fair Business Operations
Employees

We will compete with rival companies in a fair, transparent and liberal manner.
We will maintain sound and normal relationships with politicians andadministrative organizations.

2. Compliance
We will comply with laws, regulations and rules. We will never succumb toantisocial groups that will threaten the order or security of civil society.

Socialresponsibilities

3. Responsible Care
• We will develop and manufacture socially useful products by paying attention to

Corporate
activities

their safety and provide them to society in order to secure the confidence of ourconsumers and customers.
•We will be voluntarily and actively engaged in activities to help conserve theenvironment from broad viewpoints of the global environment, resource
recycling, etc.

ComplianceOpen corporate culture

4. Communications
We will enhance communications with various stakeholders in society, including
our shareholders, through proactive and fair disclosure of information.

5. Social Contributions•As a “good corporate citizen,” we will conduct social contributions in a positive■ Compliance Systemmanner.

•We will respect local cultures and customs in foreign countries and promote

Informers/advice seekers

business operations that may contribute to the development of local
communities.

Information, reports, etc.
Communications

Auditing Dept.

We will make an effort to secure a safe, less inhibited and comfortable work
environment in which our employees can realize spiritual and physical affluenceand the personality and individuality of each employee are respected.

Helpline

7. Roles of Top Management

Reports
Instructions

Compliance
Committee

Reports

Board ofDirectors
Instructions

Communications

Board of Auditors

6. Corporate Culture

Top management must understand that their role is to comply with the philosophyof this charter, take the initiative, make an effort to improve the internal system tocollect internal and external opinions and ensure the strict observance ofcorporate ethics.
If a situation infringing any of the provisions of this charter takes place, top
management must immediately disclose information to society in a proper
manner and perform accountability. In this case, top management must
investigate the causes of such a situation and take countermeasure to avoid
repetition, as well as take disciplinary actions against persons involved, including
themselves, after having identified responsible persons.

* PDCA cycle: This is a management cycle to continuously improve compliance activities by implementing the process of Plan (establishment of a basic plan of

17 Tokuyama Corporation

activities), Do (implementation of the plan and follow-up and monitoring of activities), Check (review of the plan of activities based on the results of monitoring etc.)
and Action (establishment of a new plan of activities).

VOICE

Protection of Information Security■ Organization of the Information Security
Committee“We pursue proactive
compliance activities
instead of passive ones.”
Shoji Iida
Officer in charge of the Compliance Committee
and Managing Director

Compliance is not only a matter of morals or attitude. I believecompliance management is identical to risk management. Compliance isessential for the Tokuyama Group to achieve sustainable growth in astable manner by avoiding the risks of violating laws, regulations, or
corporate ethics and by preventing corporate scandals. A company must
perform its self-cleaning function by assessing current risks at an earlystage, evaluating the degrees of risk and taking countermeasures rapidly
and appropriately. For this purpose, we are committed to maintaining
and improving our “open corporate culture“ in which employees can
exchange opinions frankly and openly.

Each department of Tokuyama implements particular
activities in accordance with the common rules contained in
the Information Security Policy that was established in
March 2002. Each group company has established various
regulations in view of the Information Security Policy. Thus,
Tokuyama and its group companies are making efforts toenhance information security.

Chairperson

System control
managerMember in chargeof affiliates

Member in chargeof financeMember in chargeof manufacturing

Member in chargeof R&D

Member in chargeof general affairs
and personnel
management

Member in chargeof salesInformation Security Secretariat

Information Security
Audit Group
System control
manager

Director in
charge ofBusiness
Division

Information Security
Secretariat

Information Security
Management Officer

Information Security
Manager
General Manager

Information
Security Staff

Manager, AssistantManager
Person in chargeof departmental
systems

Person in Chargeof Systems

Departmental management

Information Security Committee

Company-wide
management■ Information Security Management Structure

Personal Information Protection Management System
In recognition that the protection of personal information is
one of the most important aspects of CSR, we haveestablished a Personal Information Protection Management
System.
We have nominated a Personal Information Protection
Promotion Director who works as the superintendent incharge of personal information protection management. We
have also established the Personal Information Protection
Promotion Committee, its Secretariat and an Inquiry Desk.
A Personal Information Management Leader is nominatedfor each department. These leaders promote effective
management and utilization of personal information andimplement educational activities for the members of theirdepartments.

Improvement of the Crisis Management System
If a grave crisis threatening the survival of our company
should take place, an Emergency Headquarters headed by
the President will be immediately established. The
Emergency Headquarters will conduct crisis management
operations across the company with the objective of
restoring normal business operations as soon as possible.
The particulars of our Crisis Management Promotion System
are specified in the “Crisis Management Regulations.” These
regulations provide standards, guidelines, etc. for properly
responding to individual crises, including “security
environment crises,” “product-related crises,” and “humanlife crises in foreign countries.”
Since the risk of a large-scale earthquake, such as anearthquake in the capital, a Nankai/Tonankai earthquake, ora Tokai earthquake, (regional earthquakes) has increased
recently, the importance of establishing an emergency
contact system is widely recognized. In fiscal 2005, we
introduced various emergency communication tools andstudied the means to enhance cooperation between
business establishments. In fiscal 2006, we will build up ourcompany-wide crisis management system to make crisis
management operations even more reliable.

Responsible Care Report 2006 18

Social Performance

Company-Wide Efforts
We are actively promoting the introduction of IT with an aimof reforming business operations of all group companies. In
the meantime, we fully understand that the importance of
information security will increase as employees are
increasingly dependent on information and networking
systems as a result of the diffusion of IT. Therefore, we haveenhanced efforts to ensure that we can utilize “information”
as an important asset while protecting it in a proper manner.
In 2001, top management declared that measures toprotect information security should be implemented with theparticipation of all employees. As a result, the “Information
Security Committee,” which establishes and implements
overall and particular measures, was formed. The“Information Security Committee” has established the“Information Security Policy” containing overall security
measures with an aim of actively utilizing information assets
held by our company (information and the information system)
while protecting their security. It has also finalized the basic
policy of information security for Tokuyama group companies
and promotes an educational campaign.

Social Performance

Relationship with Employees
Tokuyama and its group companies are making efforts to improve the work environment so that all
employees may exhibit their abilities and engage in their work with satisfaction. In fiscal 2005, weestablished an action plan based on the Law for Measures to Support the Development of the Next
Generation and promoted the reemployment of retired persons and the employment of persons withdisabilities.

Personnel Management System
to Maintain and Develop Dynamism

Diversified Work Styles

Introduction of Annual Salary Scheme for Managerial
Employees
Our Personnel Management System is based on the principleof capability development and attaches importance to thedevelopment and utilization of human resources. The system isa kind of ability-based grade system that has been adopted bymany enterprises. We review the Personnel Management
System from time to time in order to meet the needs of thetimes, while making the best use of principles of this worthysystem.
In fiscal 2005, we introduced an annual salary scheme formanagerial employees. This scheme is intended to reformmanagers’ attitudes toward management and businessperformances, to activate the organization and to improve
corporate financial performance. With the annual salaryscheme, we have abolished seniority and personal factors andseek to pay compensation to managers depending on theirduties, roles and achievements based on the principle of“work-and-you-will-be-rewarded.”

Employment of Physically-Challenged Individuals
The employment rates of physically-challenged individuals at
our company in fiscal years 2003 and 2004 were 1.39% and1.59%, respectively, regrettably falling short of the legal
employment rate of 1.8%. In fiscal 2005, this rate improved to
1.80%. We will continue to make efforts to provide physicallychallenged individuals with employment opportunities.
Approach to the Law for Measures to Support theDevelopment of the Next Generation
Against the background of an increasingly aging society withfewer children, the Law for Measures to Support theDevelopment of the Next Generation was enacted to help
create an environment where the number of children may
increase and all children grow up in good health. As a responseto the declining birthrate, we have established an “Action Plan”
for the three fiscal years from 2005 to 2007 as follows.

Action Plan under the Law for Measures to Support
the Development of the Next Generation
1. The progress of childcare leave during the plan period should be
as follows:
For male employees: At least one employee takes childcare leave
For female employees: Average childcare leave taking rate is 70%
or moreCommendation scheme
We have expanded our commendation scheme. At present, wehave three main types of commendation as follows:
1) President’s award: This award is given to persons who havecontributed to the identification, development and expansionof new businesses.
2) Invention award: This award (including compensation)
established in 2001, is given to persons who have obtained
patent rights earning a significant amount of profit.
3) Division award: This award was established in 2001 tocommend persons who have made outstanding
contributions to their division and through which the division
could achieve its annual targets.
In accordance with the Commendation and Disciplinary
Regulations, we commend our employees who obtained patentrights or who made proposals for improvement, as well as
those who received external awards, as the case may be.

At present, we are making efforts to achieve these fourtargets across the company. We aim at acquiring certification*by actively implementing the Action Plan.

■ Trend of Employment Ratesof Physically-Challenged Individuals■ Number of Female Employees Who Took
Childcare Leave

2
(%)

1.80
●

1.68
●

1.5

1.48
●

1.59

2. With the aim of introducing a more effective maternal support
scheme in the future, we will study potential ideas, including“short-time work” and “reemployment.”
3. We will improve the childcare leave scheme.
4. We will implement measures to encourage employees to takelonger annual paid leave in a planned manner.

20
1.80
●

(Unit: Person)

●

15

15

1.39

1

10

0.5

5

0

00

01

02

03

04

05

(Fiscal year)

0

13

13

●

9

9

3

00

01

02

03

04

05

(Fiscal year)* Certification: If a company implementing measures to support the development of the next generation based on its action plan achieves the targets specified in the action plan

19 Tokuyama Corporationand satisfies the following conditions: establishment of “childcare leave scheme, short-time work scheme and the like“ for employees with children aged three or older who have
not reached school age; and one or more male employees have taken childcare leave during a plan period and childcare leave taking rate of female employees has reached 70%
or more, the company will be qualified to receive certification from the Ministry of Health, Labour and Welfare under Article 13 of the Law for Measures to Support the Developmentof the Next Generation.

VOICE

Measures for Elder Employees
To respond to the gradual postponement of the pensionable
age for welfare benefits for the elderly and to help transfer theskills of retiring baby boomers to younger generations, wecreated a reemployment scheme for retired employees infiscal 2001, ahead of many other companies in our industry.
Although this scheme was temporarily suspended due to poor
financial performance, we restarted it in fiscal 2005. In fiscal
2005, 35 of 50 retiring persons desired to be reemployed and23 persons were reemployed in various positions.

Head office and branches are less well-equipped withwelfare facilities than Tokuyama Factory. To meet thevarious needs of employees at these offices, therefore, we
introduced a selective welfare system in fiscal 2001. In theautumn of 2005, we applied this selective welfare system toall employees, including those of Tokuyama Factory.
We are providing employees at our head office andbranches with “cafeteria points.” Each employee is given acertain number of points (each point has a certain
denomination value) during each year. Cafeteria points canbe used for travel, leisure activities and childcare/nursing
services.
To encourage self-development and healthmanagement, a cafeteria point is allotted a higher
denomination if used for self-development or healthmanagement activities.
At first, this cafeteria plan was utilized only by a small
number of employees as it had not been widely publicized.
Now, however, cafeteria points are being utilized not only forleisure activities but also for self-development.

Aya Shiigi
Public Health Nurse, Health Care Center

I introduce essential points of health promotion to employees so thatthey can better manage their health in their daily lives. These “minihealth classes” are opened at each workplace and therefore attendants
can be relaxed and conversations are animated. Although the allocatedtime is short, I make an effort to talk on familiar and concrete themes incommunicating with attendants. I hope my mini health classes will be agood opportunity for employees to review their lifestyles and thereby
contribute to their health promotion.

“Soft Volleyball” gameat Tokuyama Factory(January 2006)

Promotion of Total Health Promotion Plan (THP)
Health Promotion under THP
In accordance with the “Guidelines of the Total Health
Promotion Plan (THP)” established by Ministry of Health,Labour and Welfare, we established the THP Committee tocarry out various health promotion activities. We alsoestablished three expert panels: a Mental Health Panel, aLifestyle Panel and an Education and Publicity Panel. Mental
health workshops are organized for managerial employees.
Employees may also utilize the helpline services of a
specialized institution.
The Lifestyle Panel dispatches its health management
staff to workplaces to run a “mini health class.” This mini
health class is run when employees gather for a safety
meeting, etc. At this class, health management staff talk on
essential points of health promotion for about twenty
minutes. The theme covers, for example, “soft drinks” or“alcohol,” changing on a six-monthly basis. This mini healthclass started in October 2005 and has been attended by atotal of 157 employees at 13 workplaces (as of the end of
March 2006.)
The Education and Publicity Panel issues a healthmagazine entitled “Dou?” and conducts educational andawareness building activities.
Promotion of Internal Recreational Activities
We are promoting recreational activities for better
communications and health with the aim of creating a“cheerful and lively workplace.” The objective of theserecreational activities is to encourage communication
among employees, which tends to be insufficient in the IT
environment and to help create a stress-free and vibrantworkplace. Employees in charge of recreational activities
mainly plan and conduct these activities at factories,
divisions, branches and offices.

At the “mini health class,”
explanations are madeon familiar themes,such as the “quantityof sugar in juices.”

The health magazine titled “Dou?”issued by the THP Committee
introduces recreational activities
held at various workplaces.

■ THP Promotion System
Mental Care●●

Health Promotion Activities●

Workshops for
managerial employees
Helpline (in-houseinterview or outside
consultant)●

Recreational activities
Active participation in club
activities, etc.

Vigorous
Tokuyama
Employees

Lifestyle Improvements

Publicity/Education Activities
Issue titled “Dou?”magazine●Establishment of HealthManagement Center
intranet site●

Enhancement of individual
health advice●Health advice at a mini healthclass (at workplace)●Advice on quitting smoking●

Responsible Care Report 2006 20

Social Performance

Introduction of Cafeteria Plan

“I aim at improving
the lifestyles of employees
by running “mini health class.””

Social Performance

Relationship with Customers
We adopt customer-focused quality assurance based on the ISO 9001 quality management system. We are
implementing strict quality management for all product-related processes, carrying out comprehensive
safety management of chemicals and making every effort to conserve the environment and securepeople’s safety and health.

Quality Assurance
We aim at being a much more customer-focused company
that is continuously relied on by our customers. Therefore,
we place a top priority on the provision of quality products
and services that can offer satisfaction and a sense of
security to our customers.
Our company, including branches, sales departments
and R&D divisions, implements quality management andquality assurance activities in accordance with the ISO 9001
quality management system. By including branches andsales departments in the system, we can rapidly and properly
respond to requests and complaints from our customers.

Each division publicizes
information on requests andcomplaints in their portal of
our “groupware” intranet, sothat division members may
share the same information.

Chemical Division portal site(in Japanese only)

Comprehensive Safety Management of Chemicals
Data Acquisition and Analysis on the Safety of Chemical
Substances
We assess the safety of chemical substances by acquiring
and analyzing safety-related data. Such data is used in
preparing safety information for our products, wastematerials, etc.
In fiscal 2005, we assessed the hazards related with all
chemical substances handled internally, including products,
raw materials and waste, reviewed handling methods andprovided a variety of information.
Risk Assessment and Management of Chemicals
We are conducting activities to prevent environmental
pollution by monitoring the concentration of chemicals in
effluents and gas emissions.
In addition, we simulate concentration distribution forchemicals and analyze their detailed behaviors. Risks arecharacterized based on a combination of concentration dataand safety data and the characterized results are reflected in

VOICE“We are checking on the safetyof chemicals in cooperation withpersons in charge of responsible
care (RC) of other companies.”
Norikazu Hattori
Senior Research Chemist, RC Research Laboratory

I had very valuable experience by participating in the HPV (High
Production Volume) chemicals program. Under this program,
representatives from seven companies handling TMAH
(tetramethylammonium hydroxide) and its related products gathered tocheck the safety of the chemical. All of these representatives were in
charge of RC. In these HPV activities, each company brought its safety
data, shared the cost of conducting toxicity tests and mutually verified
respective safety assessment documents. In the work related to thesafety of chemicals, there should be no barriers between different
companies. I really felt that HPV work cannot be done by a single
company alone.

21 Tokuyama Corporation

enhancing our equipment safety measures and handlingprocedures and in educating workers involved in handling
products and waste. These efforts eventually help us
improve our product safety and provide accurate
information to our customers.

Estimatedconcentration
distribution ofdichloromethane in
the air based on
PRTR data andestimated releaseof non-PRTR
chemicals in 2004
(using AIST-ADMER
ver.1.5.2 of National
Institute of Advanced
Industrial Science andTechnology)

Participation in HPV Program
The HPV Program (High Production Volume Chemicals
Program) is an international program to conduct safetyassessment of chemicals that are manufactured in no lessthan two countries with a volume of 1,000 tons or more andOECD (Organization for Economic Co-operation andDevelopment) lists as priority chemicals (about 1,000
chemicals). We actively participate in the HPV Program inregards to 17 chemical substances and conduct safetyassessments of them.
As a leader of the international consortium for calcium
chloride HPV, we participated in an international conference
held in 2002. At present, we are promoting activities as aleader of the international consortium for TMAH
(tetramethylammonium hydroxide) HPV, which is used as aliquid developer in the photolithography process forsemiconductors and liquid crystal panels. In fiscal 2005, we
prepared an HPV Assessment Report, had the document
reviewed by the government authorities and submitted it to
the OECD’s secretariat. In April 2006, we attended theinternational conference (SIAM22) held in France where our
HPV Assessment Report was accepted.

Provision of Information on Our Chemical Products
We provide MSDSs for all our products and prototypes toour customers and distribution agents.
MSDSs are prepared for about 400 types of products. Of
these, MSDSs for 32 types of products that are transported
in large quantities and heavily used by our customers are
publicized on our company’s Web site.
We also have each driver carry a “Yellow Card”** that is
prepared with emergency
instructions for use if an
incident occurs duringtransportation. MSDSs and“Yellow Cards” on our
products and wastematerials are also posted on
our intranet Web site so that
this type of safety-related
The MSDSs of our major products
are publicized on our Web site.
information can be shared.

■ Assessment Flow Diagram for Ensuring Safety
and Environmental Preservation
Safety andEnvironmental
assessment

Assessment
stages

Product
assessment

Labeling
assessment

Researchcommenced

Development groupleaders

Development
commenced

R&D department heads

Commercialization
under study

Product assessment
committee

Safety and Environment
Assessment Subcommittee

Labeling Assessment
Subcommittee(Tertiary assessment)(Basic Plan)(Products)(Primary assessment)

Labeling Assessment
Subcommittee(Secondary assessment)(Prototypes)

Product
equipment
being designed

Safety and Environment
Assessment Subcommittee

Pre-marketing(pre-operation)

Safety and Environment
Assessment Subcommittee

Post-operation

Report on actual conditions(Designing)(Pre-operation)(Environmental)

Safety Management of Waste Materials
Waste materials are handled in the same way as our
products. We have prepared the necessary MSDSs for
waste materials and distribute them to waste handling
contractors and distribution agents to ensure safe handlingand transportation of such waste materials. Also each driveris made to carry a “Yellow Card” prepared for the wastematerials in case an incident occurs during transportation.
We have so far prepared 68 MSDSs for waste materials.

(in Japanese only)

Promoting Safety and Environmental Management in the Distribution Process
Providing Our Logistics Companies with Guidance and
Education on Safety Management
We regularly hold local safety meetings with our nation-wide
logistics companies whom we commission for transportation
services. We conduct safety inspections for these logistics
companies to help improve their management levels. Within
the premises of our Tokuyama Factory, our safety specialists
regularly make inspections of the loading terminal and visit thetransporters in dock, providing safety guidance as necessary
in cooperation with the logistics companies.
We also have a range of emergency measures in place.
For example, each truck driver is required to carry a “Yellow
Card” and appropriate emergency tools so that the driver cantake suitable and speedy actions based on the emergency
measures specified on the card if an incident occurs during
land transportation. An emergency network and relatedorganizations also form part of our emergency measures.
Distribution Risk Assessment
Before hazardous materials are transported, we conduct
risk assessments to verify the safety of the means oftransportation and the trucking route and any emergency
measures to be taken in the event of an accident. We also
conduct drills based on accident
simulations.When a logistics
facility is newly constructed orenlarged inside or outside ourfactory, facility safety assessments
are always conducted.
Crisis Management System
Drill assuming a truck accident
To deal with potential crises in(at Shunan district)logistics operations, we haveestablished emergency response criteria and disasterprevention equipment and materials are always ready for use.

In the Shunan and Kanto districts, we have established amutual disaster assistance system with related logistics
companies. This system has also been recently establishedin the Kansai district.
Environmental Preservation Measures and Energy
Conservation
We urge trucking companies to introduce vehicles adapted
to exhaust regulations, fuel-efficient vehicles and eco-driving
support devices (for example, digital tachographs and soforth).
Following the revision of the Law concerning the Rational
Use of Energy (Energy Saving Law), we participated in the“Trial Project for Computation of Energy Needed by Cargo
Owners, etc. to Comply with the Energy Saving Law,” agovernmental model project and reflected our opinions inoperational guidelines.

VOICE“We make our best efforts to conduct
education on the prevention of
accidents and conduct drills to
respond to emergency situations.”
Takayuki Sera
General Manager, Safety, Environment and Quality
Assurance Office, Tokuyama Logistics Corporation.

To prevent a logistics accident or disaster, our 2006 Safety
Management Plan attaches great importance to education and drills
conducted by logistics companies. We inspect the contents of theirtraining for truck drivers and their responses to potential accidents andthereby support their activities.
We conduct various kinds of drills just in case an accident ordisaster occurs. Through field-oriented activities, we aim at improving
logistics operations in accordance with ISO 9001 standards.

* MSDS is the abbreviation for Material Safety Data Sheet. It is a document that contains information such as the name of the chemical material, appropriate safety andemergency measures required, etc., related to that material and is intended to ensure safe handling by providing information about any hazards related with the specificmaterial.

** The “Yellow Card” is the common name of a card prepared for emergency use, which explains to the truck driver, relevant persons, fire crews and police officers what to do in
the event of a truck accident involving the chemicals being transported.

Responsible Care Report 2006 22

Social Performance

Assessment of Products and Labeling
We appropriately assess the safety of both the chemicals
and equipment units that we manufacture, in stages fromresearch and development through commercialization. We
made 51 assessments of this kind in fiscal 2005.
We also carry out labeling assessments for our catalogues,
MSDSs,* and other technical documents. The appropriatenessand legality of representations on labeling and packaging ofproducts, prototypes and sample products are assessed andinappropriate representations are corrected.
In fiscal 2005, we conducted about 230 labelingassessments.

Social Performance

Process Safety and Disaster Prevention/
Occupational Health and Safety
We place top priority on safe operations and promote process safety and disaster prevention activities torealize operations without accidents or disasters. In fiscal 2005, Tokuyama Factory achieved a Category III
Zero-Accident record of 12.2 million hours. In cooperation with our contractors, we conduct safety
education and training to ensure occupational health and safety and a comfortable working environment.

Commitment to Safety and Disaster Prevention
Comprehensive Disaster Prevention and Safety Activities
Tokuyama Factory—our main production site—is located in
the vicinity of a residential area. Based on a determination to
do our utmost to prevent any accidents, we are making every
possible effort to secure safety through enhanced educationand strict safety management in our operations. We also
conduct various types of drills so that proper action can be
rapidly taken in the event of an emergency. In the event of alarge-scale accident, Tokuyama Factory has formed a SelfDefense Disaster Prevention Unit and conducts joint disasterprevention drills in collaboration with group companies,
neighboring enterprises and related public authorities basedon various simulated accident and disaster scenarios. Thesedrills are open to and observed by, local residents so thatthey can better understand and rely on the safety activities ofTokuyama Factory.
We also steadily continue traditional activities, including
safety patrols, hazard prediction activities, avoidance of
dangerous carelessness, 5S activities and verbal safety
checks (pointing at the item to be checked and voicing its
name). Recently, we are actively “securing safety inadvance” by identifying potential sources of danger andreducing and eliminating the risks involved.

We are committed to stable plant operations bypromoting the self-administered safety management of ouroperational management division and by reinforcing thespecialized maintenance skills of our facilities management
division. In particular, the cement plant actively promotes
TPM* activities and received the TPM Superior Continuation
Prize (first class) in fiscal 2005.

On-site inspections
before receiving
certification of“Certified Safety
Inspector” and“Certified Completion
Inspector”(June 15, 2005)

Safety Audit
We conduct inspections for all of our facilities to identify thestatus of Process Safety and Disaster Prevention/
Occupational Health and Safety. If the audit identifies any
incidents of nonconformance, these are pointed out andnecessary guidance is given for corrective action. The
results of audits are reported to the Safety Measures
Committee and are reflected in the action policy for thefollowing fiscal year.

Safety inspection at Kashima
Factory (November 15, 2005)

Achievement of Category III Zero-Accident hours
Total of 12.2 million
Annual ceremony cum internal comprehensive disaster prevention drill(held on January 20, 2006)

Self-Administered Safety Management
Tokuyama Factory has actively obtained certifications of“Certified Safety Inspector” and “Certified Completion
Inspector” in accordance with the High-Pressure Gas Safety
Law. In fiscal 2005, Tokuyama Factory renewed “Certified
Safety Inspector“ certification and newly acquired “Certified
Completion Inspector“ certification for its 12 facilities, including
the VCM production plant. Tokuyama Factory is determined tocomply with the conditions of these certifications and to
improve safety management activities by conducting the“PDCA” cycle based on the principles of self-administeredsafety management and self-responsibility.

In June 2005, Tokuyama Factory achieved the record of
Ministry of Health, Labour and Welfare’s Category III ZeroAccident hours total of 12.2 million. In the past, Tokuyama
Factory achieved the record of Category I five times, but thisis the first time since its start-up that it has achieved therecord of Category III. This is the result of all employees’
determined efforts to continue zero-accident operations.
Now, Tokuyama Factory aims at achieving Zero-Accident
hours total of 15 million.
Kashima Factory has continued zero-accident and zerodisaster operations for the past 20 years since its start-up.
Tsukuba Research Laboratory has also continued zerodisaster operations for the past 16 years since its foundation.
In fiscal 2005, we invested 430 million yen on process
safety, including a large water cannon truck for use in theevent of a chemical accident.

* TPM: Total Productive Maintenance is an abbreviation for Total Productive Maintenance. It is intended for achieving zero-losses with

23 Tokuyama Corporation

the participation of all employees, in pursuit of maximized production efficiencies, by implementing systems that prevent any losses
due to accidents, defective products, equipment failures, etc.

VOICE

Commitment to Occupational Health and Safety■ Accident Severity Rates*
0.25

Total
industries
Chemicalindustry
Tokuyama

(%)
●

0.2
●

0.15

●

●

●
●

●

●
●

●

●

●

●

●

●

0.1
●
●

●

0.05

●
●

0

●

●

96

97

●

98

●

99

00

●

●

●

●

01

02

03

04

05

(Fiscal year)* Accident Severity Rate refers to the number of work days lost in 1000 cumulative“All of us are making
efforts to ‘secure safetyin advance.’”
Noriaki Saiki
Manager, Safety and Health Section, Environment &Safety Department, Tokuyama Factory“No accident” and “No disaster.” These are the most important goals
for all of us, including our group companies and contractors. They can
only be achieved by acting and thinking together. At Tokuyama
Factory, we improve safety with “Safety by visualization” and “Safety
by Thinking” slogans, as well as “Secure safety in advance” byidentifying risk factors in advance and eliminating them.
We are determined to continue “no-accident and no-disaster”
operations through the concerted efforts of all persons concerned. We
are making every effort in order that our factory can enjoy continued
safety and can be relied on by local communities.

Safety Education and Training in Close Coordination with
Contractors
We are promoting activities to ensure “no-accident and nodisaster” operations in close coordination with contractors,
such as safety meetings for information sharing attended by
employees of Tokuyama and its contractors, management
improvements through safety patrols, safety education andseminars for improvement of knowledge of various themes
and drills for the improvement of skills.

work hours and represents the severity of industrial accidents.

■ Rates of Lost Work Time Injuries*
2
(%)

●
●

●

●

●

●

●

●

●

●

●

Total
industries
Chemicalindustry
Tokuyama

1.5

1

●

●
●

●

●
●

●

●
●

Maintaining a Comfortable Work Environment
Aiming to prevent health hazards and create pleasantworking conditions, we continue to monitor the workplaceenvironment where specified chemicals, organic solvents
etc. are handled and continue to improve the work
procedures and equipment involved. Thanks to these efforts,
all worksites of Tokuyama Factory are rated as Control
Category I.* Tokuyama Factory has established its own
voluntary standards to further improve safety activities.

0.5
●

0

●

●

●

96

97

98

99

00

●

●

●

●

01

02

03

04

05
(Fiscal year)* Rate of Lost Work Time Injuries refers to the number of workers away from work due
to workplace injuries in 1 million cumulative work hours and represents the frequency
of industrial accidents.
Source: “Survey on Industrial Accidents” of the Ministry of Health, Labour and Welfare

Our Situation in the Asbestos Problems
1. Health Related Reports
Our company has never manufactured products containing
asbestos in the past. It has not been reported so far that any of
our employees, persons retired from our company or employeesof contractors suffered health hazard from asbestos, or havequalified for workers’ compensation for health hazards relatedwith asbestos. Our Tokuyama, Kashima and Tsukuba facilities
have not received any reports about health problems from any
neighboring residents.
At our company, a small quantity of asbestos was used to
repair a part of chemical manufacturing plants over a short period
in the past. Therefore, we conducted medical checks for those
persons who handled the asbestos (including active and retired
employees). Fortunately, none of these persons have had
asbestos-related health problems.
2. Handling of Items Containing Asbestos andCountermeasures
As is the case in many general manufacturing facilities, heatinsulation and fireproof materials containing asbestos are used in
our facilities. In the case of normal use, however, there is noconcern that the asbestos may disperse into the air. In order not
to have asbestos be dispersed into the air when structurescontaining asbestos are scrapped or renewed, the department incharge of facility management has established handlingguidelines and also conducts specialized repair work, etc.
We are replacing asbestos-containing items with nonasbestos-containing ones in a planned manner.
3. Asbestos-Sprayed Buildings and Countermeasures
In our company, we found a few exposed portions whereasbestos was sprayed inside buildings that were built in the late1960s and 1970s. Our environmental measurement data haverevealed that these asbestos-sprayed materials are notimmediately dangerous to life or health.
Although there is little concern about those asbestossprayed portions, we have decided to remove them to ensure asafer work environment. At present, removal work has been
almost completed and will be fully completed in fiscal 2006.
With regard to these problems, we will take all appropriate
measures to protect the health of our current and retired
employees, employees of contractors and local residents.

* Control Category I refers to a condition in which an atmospheric concentration of hazardous substances is below the control levelin most part (over 95%) of the unit work area. There are three classes of Control Category: Category I, II and III, of which I is themost desirable.

Responsible Care Report 2006 24

Social Performance

Expansion of the Safety Management System
Each facility has been implementing an Occupational Healthand Safety Management System since the establishment of
this system in fiscal 2003. In fiscal 2005, Tokuyama Factory
expanded this system into a full Safety Management System
by including process safety and conducting risk assessment
not only for work operations but also for processes andplant maintenance in a planned manner. In fiscal 2005, weinvested 190 million yen in occupational health and safety
activities.

Social Performance

Harmonious Coexistence with Communities and Society
We are enhancing communications with local residents in the vicinity of our facilities through RC
dialogues, active participation in local environmental conservation activities and events and other social
contributions. We always make efforts to rapidly provide all stakeholders with information in a transparent
manner to maintain good communications and build trusting relationships with them.

Communications with Communities and Society
Tokuyama Science Foundation
This foundation was established in 1988 with the aim ofcreating a new field of science as part of the project forcommemorating our company’s 70th anniversary. Each year,
the foundation grants subsidies to young researchers in the
study of new materials and conducts various fostering
projects, including “International Exchange Assistance,”“International Symposium Assistance,” and “Science andTechnology Awareness Building Assistance.” A total of 253
studies have been granted subsidies, with the total
subsidies amounting to 490 million yen (as of March 2006.)
The foundation and the Chugoku/Shikoku Branch of the
Chemical Society of Japan cosponsored the “Interesting andExciting World of Chemistry–2005 Hiroshima Chemical
Exhibition,” held from August 19 to 21, 2005, in Hiroshima
City. The purpose of this exhibition was to “raise children’sinterest in matters related to chemistry and science andtechnology and help them understand the importance ofharmonization with the natural environment.” Our company
opened a booth with a theme of “Let’s make ‘karumerayaki!’” (crunchy candy).” In the experiment, children
observed how ‘karumera-yaki’ would rise due to thepyrolysis of baking soda, one of our products. The exhibition
attracted 4,219 visitors in total, with more than 300 persons
visiting our booth over the three days.

“2005 Hiroshima
Chemical Exhibition”
Children are enjoying
making “karumera-yaki.”(August 19, 2005)

Afforestation Activities in China
In many parts of China, desertification is rapidly progressing.
We have four group companies in China. Since
desertification is a serious problem, we planted 13,000
seedlings in Houning, Hebei Province, which is situated 180
km north of Beijing, in April 2001, through the Nature
Conservation Fund of the Nippon Keidanren. Since then, ourlocal subsidiaries have participated in afforestation activities
every year in an effort to help prevent desertification.

Our two group companies
participate in afforestation
activities(February 28, 2006)

25 Tokuyama Corporation

Donation of Previous Uniforms to Nepal
We donated previous uniforms from our female employees to
Nepalese children who are living in rather harsh conditions.
When their previous uniforms were being replaced with newones, some female employees made this donation proposal
as a means of effectively utilizing limited resources. About
200 uniforms were delivered
to Nepal through a volunteer
group. The previous uniforms
are used as winter clothes for
Nepalese children living inmountainous areas.
Nepalese junior high girls
in uniform (in August 2005)

Communications between Tokuyama Factory and
Local Communities◆ Every year, “RC dialogues with community” are organizedwith the aim of increasing community awareness ofenvironmental conservation efforts made by companies in
the Shunan district. In fiscal 2005 a number of presentations
and plant tours were held.
Tokuyama Factory has also held its own “RC dialogues
with the community” since
fiscal 2004. In fiscal 2005, 25
women from local
communities (community
associations) participated in
our RC dialogues. At thesemeetings, opinions were
exchanged under the themeof “Efforts for Environmental “RC dialogues with community people”
held at Tokuyama FactoryConservation and Process(August 22, 2005)
Safety.”◆ Each year, we actively participate in forestry maintenanceactivities, called “Activities for Community-Forest-Water
Interaction,” organized to help preserve the forests in thecommunity area. In fiscal 2005 (our 9th year), 127 people
participated in this event, mowing grass, thinning out the
woodland and trimming the branches of trees at Mt.
Iinoyama in Shunan City.
◆ We aim at being a company open to society. Anyone
interested can make afactory tour by submitting
an application in advance.
In fiscal 2005, Tokuyama
Factory became one of thetour sites for “Factory andSightseeing Tours,” whichwere organized by the“Chamber of Commerce andIndustry” in Shunan district.
Thanks to that, we hadsome 3,700 visitors,
Factory tour by employees’ families
including about 130 school(August 8, 2005)
children, to our Tokuyama

Communications between Kashima Factory and Local
Communities◆ We have designated May 30 as “Zero Refuse Day,” andcarry out coordinated cleaning work inside and outside
Kashima Factory every year.
◆ As a member of the Hasaki District Companies Network(Hasakiren), we undertook odor patrols and coordinatedcleaning around the industrial complex.
◆ There was a complaint from local residents to Hasakirenthat offensive odors were experienced in the northeast
district of the complex. Although we eventually found that
we were not responsible for that incident, our Administration
Section took the role of coordinating with the parties
concerned.

VOICE“A factory tour offers a good
opportunity for interaction between
Tokuyama and local residents.”
Yumiko Yamada
General Affairs Department, Tokuyama Factory

In fiscal 2005, “Factory and Sightseeing Tours” were started.
Participants in the events enjoyed our factory in the Shunan district. We
have received many applications for our “Factory tours.” Participants,
ranging from school children to elders, have made the following
comments: “I visited a real factory for the first time and was surprised
at everything I saw”; and “I came to know for the first time that yourcompany is producing the raw materials for the products I use.” I will
do my best to make our factory tour more interesting and help visitors
to feel familiar with Tokuyama.

Environmental Communications
Responsible Care Report and Web Site
Every year since 1997,we have issued our “Responsible
Care Report” (both Japanese and English editions) tocommunicate our stance on society, the environment and on
safety and health issues and report on our activities during
the previous year.
Our Web site includes pages with information on ourefforts in making environmental and social contributions.
“Responsible Care Report 2005”

Our Web site introduces our environmental
and social activities.

Exhibition at Environmental Events◆ SEMICON Japan 2005
From December 7 to 9, 2005, “SEMICON Japan 2005,” anexhibition of semiconductor manufacturing equipment andmaterials, was held in Makuhari Messe. We exhibited our
products at this exhibition. At the “Photovoltaic Generation
Technology Symposium ” which was set up as an annex tothe exhibition, we gave apresentation under thetheme of “Current
Conditions andProspects for Silicon asa Raw Material for Solar
Cells.” The seminarroom for thepresentation was so fullof attendants that many Presentation by Tokuyama at SEMICON
listened standing up.
Japan 2005

◆ NEW EARTH 2005
The “Global Environment Technology Show & International
Symposium (NEW EARTH 2005)” was held at INTEX OSAKA for
four days from October 26, 2005. Tokuyama Siltech Co., Ltd., agroup company, exhibited“Prefeed,” a multifunctional
ingredient for detergents and“Ecolayer,” a new heavy metal
sequestrant. Many people
visited the company booth,making inquiries and providing Tokuyama Siltech’s booth atvaluable opinions.
the NEW EARTH 2005
◆ Yamaguchi Iki-Iki Eco Fair
An environmental event titled the “Yamaguchi Iki-Iki EcoFair” was organized by the Yamaguchi prefectural
government (from October 15 to 16, 2005.) We opened abooth under the theme of “Eco Life Tokuyama.” We widely
publicized to prefecturalresidents that Tokuyama
manufactures polycrystalline
silicon as a raw material forsolar cells with the aim ofrealizing an energy-savingsociety, thus helping to prevent
Many people visited our boothglobal warming through theat the Yamaguchi Iki-Iki Eco Fair
diffusion of solar cells.
◆ EXPO 2005 Aichi JapanFIGARO Engineering Inc., a group company, opened a boothat the EXPO 2005 Aichi Japan, held in Nagoya, jointly with
U-Dome Co., Ltd. and Nagoya Sangyo University. FIGARO
actively introduces gas sensors in the field of global
environmental measuring. At the booth, the company
introduced technology for“solid-electrolyte CO2 sensors,”
which it has begun to sellahead of competitors
throughout the world.

FIGARO’s booth at the EXPO
2005 Aichi Japan

Responsible Care Report 2006 26

Social Performance

Factory, taking a tour of the cement plant where waste
recycling facilities are in operation.
◆ There were eight environmental complaints in fiscal 2005,
five of which were considered attributable to our Tokuyama
operations. We investigated the causes and implemented
the necessary measures, including equipment repair.

Site Reports

Tokuyama Factory■ Release of Chemical Substances Subject to the
PRTR Law100(Tons)

95.0

Others1,2-dichloropropane

90

Higashi Plant

80

84.1

80.0

Chloroform

Dichloromethane
Toluene70

Chloromethane

65.6

Cresol60

Nanyo Plant

57.2

1,2-dichloroethane
Chloroethylene

Tokuyama Plant

50
40

Location: 1-1, Mikage-cho, Shunan City,
Yamaguchi Prefecture
Number of Employees: 1,566
Area of Factory: 1,650,000 m2 (total area)(Tokuyama Plant, Nanyo
Plant and Higashi Plant)
Main Products Cement, inorganic andorganic chemical products, polycrystalline
silicon, silica, vinyl chloride monomer, etc.

30
20
10
Executive Managing
Director andTokuyama Factory
General Manager

0

01

02

03

04

Hisami Tanimoto

Facing the Tokuyama bay, the Tokuyama Factory is conveniently
located for sea transportation of raw materials and products. The
cement plant contributes to recycling waste materials andbyproducts. Electric power and steam are supplied from our own
power generation plant.

Certification of Ministry of
Health, Labour andWelfare’s Category III ZeroAccident record of 12.2
million hours presented(June 14, 2005)■ Release and Transfer of PRTR Substances Sorted
by Item (FY 2005)*(in tons** except dioxins, in mg-TEQ)
Amount released
LegallyAmountspecifiedTo
To
substanceTotransferredpublicatmowater
number spheresoils Subtotal
systems

Toluene67 0.0 22.9
77 11.8 0.0
116 9.3 0.0
135 3.8 0.0
227 3.2 0.0

0.0
0.0 22.9
0.0 11.8
0.0
0.0
0.0 9.3
0.0 3.8 187.4
0.0 3.2 106.4

Chloromethane(Methyl chloride)

96

3.1

0.0

0.0

3.1

0.0

Dichloromethane(Methylene chloride)

145

1.7

0.0

0.0

1.7

0.9

1,2-dichloropropane

Chloroform
1,2-epoxypropane(Propylene oxide)

95

0.7

0.0

0.0

0.7

0.0

56

0.6

0.0

0.0

0.6

2.3

Ethylene glycol

0.1
0.0
0.0
0.0

0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0

0.1
0.0
0.0
0.0

0.0
0.0
0.0
0.2

Copper and its water-soluble
salts (excluding complex salt)

207

0.0

0.0

0.0

0.0

1.9

Nickel compounds

232
253

0.0
0.0

0.0
0.0

0.0
0.0

0.0
0.0

0.0
0.0

Hydrogen fluoride and its
water soluble salt

283

0.0

0.0

0.0

0.0

0.0

Boron and its compounds
Dioxins

304 0.0 0.0
179 (75.1) (64.5)

0.0 0.0(0.0) (139.6)

0.0
(0.0)

Total

34.3 22.9

0.0 57.2

299.1

Benzene2,2’-azobisisobutyronitrile

Hydrazine* Scope of survey includes PRTR-law specified substances with an amount handled ofmore than 1 ton per year and dioxins.
** While the PRTR Law says the amount of release shall be given in kilograms to two
significant figures, the amount in this report is given in tons, rounded to the nearest
1/10 ton (dioxins in mg-TEQ).

27 Tokuyama Corporation

10,000
●

●

●

●

●

99.7

99.8

99.8

99.8

100

98.2
●

112
299
13
43

Carbon tetrachloride■ Volume of Finally Disposed Waste, Utilization
Rates, etc.

8,000

●
●

94.0

94.8

95
●

94.4

●

94.0

●

91.4
6,000

90
5,420

Zero emission rate

1,2-dichloroethane

●

4,000

85

2,000

80
1,170
650

610

660

03

04

05 (Fiscal year)

75

0

01

02

Waste utilization rate (%)

CresolChloroethylene (Vinyl chloride)

Volume of final disposal (in tons)

Name of substance05 (Fiscal year)Kashima Factory

Kashima Factory is located within the Hasaki
Industrial Complex that forms a part of theKashima Coastal Industrial Region. It
comprises the plants of Tokuyama’s threegroup companies. They are all engaged in
manufacturing specialty chemical productsthat contribute to human health.

Kashima Factory
General Manager

Osamu Iwamoto

Tokuyama’s Kashima Factory
Bulk pharmaceuticals (x-ray contrast agents, stomach andduodenal ulcer treatment drugs); optical materials (plastic lensmonomers, light modulating materials, hard coat solutions); metal
washing solutions

Tree planting to celebrate
the 20th anniversary ofzero-accident operations(September 27, 2005)

Kashima Plant of Tokuyama Dental Corporation
Dental materials (restorative materials, adhesives, denture relining
materials, impression materials, dental stone, implant materials)
Kashima Works of A&T Corporation
Reagents for clinical analysis (electrolyte analysis reagents,
glucose analysis reagents)■ Release of Hazardous Air Pollutants(Total of Three Companies)(Total of Three Companies)

Toluene(in tons**)

Amount released
LegallyAmountspecifiedTo
To
substanceTotransferredpublicatmowater
number spheresoils Subtotal
systems
227

Dichloromethane(Methylene chloride)

145

Chloroform
Acetonitrile

1.7

0.0

0.0

1.7

Chloroform
1.5

1

0.0

0.0

1.2

5.4

95

0.4

0.0

0.0

0.4

1.5

12

0.0

0.0

0.0

0.0

4.3

Ethylene glycol

43

0.0

0.0

0.0

0.0

0.3

1,4-dioxane

113

0.0

0.0

0.0

0.0

0.1

N,N-dimethylformamide

172

0.0

0.0

0.0

0.0

14.2

2-vinylpyridine

256

0.0

0.0

0.0

0.0

0.2

Methacrylic acid

314

0.0

0.0

0.0

0.0

0.0

2,3-epoxypropyl methacrylate

316

0.0

0.0

0.0

0.0

0.0

Methyl methacrylate

320

0.0

0.0

0.0

0.0

0.0

α-methylstyrene

335

0.0

0.0

0.0

0.0

0.0

3.3

0.0

0.0

3.3

54.5

1.1

1.5

1.2

0.9
0.5

28.5

1.2

Total

Carbontetrachloride
Dichloromethane

1.5

0

0.3

0.4

0.3

0.2

01

02

03

04

0.4
05 (Fiscal year)■ Volume of Finally Disposed Waste, Utilization
Rates, etc.
(Total of Three Companies)
100
Volume of final disposal (in tons)

Name of substance

0.1(Tons)

●

95.4

●

94.1

●
●

93.2

96.2

●

98.0

80

80
60
40

100

61.2
●

53

64.1
●

66.1
●

60

47. 3

●

●

47.2

39

43

40
29

20
0

15

01

02

03

04

Zero emission rate
Waste utilization rate (%)■ Release and Transfer of PRTR Substances Sorted
by Item (FY 2005)*

2

20
0

05 (Fiscal year)* Scope of survey includes PRTR-law specified substances with an amount handled ofmore than 1 ton per year.
** While the PRTR Law says the amount of release shall be given in kilograms to two
significant figures, the amount in this report is given in tons, rounded to the nearest
1/10 ton.
Responsible Care Report 2006 28

Site Reports

Location: 26 Sunayama, Kamisu City,
Ibaraki Prefecture
Number of Employees: 78
2
Area of Factory: 101,000 m

Hazardous air pollutants: The gross release of dichloromethaneand chloroform remained the same as the previous year’s level.
Tokuyama Dental changed processing solutions fromdichloromethane to aqueous solvent for a number of products.
We will continue efforts to reduce the release of dichloromethaneby changing processing solutions for other products.
Volume of final disposal: In fiscal 2005, the volume of final
disposal decreased to 15 tons (-48%) due to recycling of
inorganic sludge and material recycling of metals.
Environmental conservation: All employees of our factory
participated in the “Stop Engine-Idling Campaign,”
promoted by the Ibaraki prefectural government to help
conserve the environment.
Process safety: At the end of fiscal 2004, all operators
participated in an experience-based seminar on valve
operations. In fiscal 2005, the incidence of wrong valve
operations was reduced to zero. Five operators participatedin an experience-based seminar on burns from heat or
chemicals to improve their capability to predict hazards andprevent errors in operations. In March 2006, we conducted adrill on the handling of fire extinguishers to improve
employees’ awareness of fire prevention.
Occupational health and safety: As a result of a work
environment assessment, one workplace was rated as Control
Category II. Therefore, we increased the number of ducts atduring our periodic repairs in the second half of the year toregain the rating of Control Category I for the workplace.

Site Reports

Environmental Activities of Group Companies
We believe we should jointly address Responsible
Care activities with our group companies. To
provide support for their activities, we haveexchanged a memorandum of agreement on RC
management with respective group companies thatare engaged in production activities at home andabroad.
We assess overall RC activities by reviewing the
RC activity data of group companies, such as theirenvironmental impacts, safety management
indicators, etc. and also by making safety andenvironmental inspections of a number ofcompanies on a yearly basis.
We share information on relevant laws andregulations with our group companies and also help
them acquire ISO 14001 and ISO 9001 certification.
In fiscal 2005, ASTOM Corporation acquired ISO
9001 certification.

■ ISO 9001 and ISO 14001
Acquisition Status for 11
Group Companies
Company name

ISO 9001 ISO 14001

●
●
●
●
●
●
●

Sun Tox Co., Ltd.

Safety and environmental
inspections of group companies(Kuriyama Plant, Shanon Co., Ltd.,
October 27, 2005)

Shanon Co., Ltd.
Tohoku Shanon Co., Ltd.
A&T Corporation
Figaro Engineering Inc.
Tokuyama Dental Corporation
Tokuyama Siltech Co., Ltd.

●
●
●
●
●
●
●
●
●
●

Sun Arrow Chemical Co., Ltd.

●ASTOM Corporation
Shin Dai-ichi Vinyl Corporation

ASTOM Corporation acquires ISO
9001 certification●●=Included as a group site

Tokuyama Polypropylene Co., Ltd.

●=Certified

Sun Tox Co., Ltd.
Established: February 14, 1992
Shareholders: Tokuyama Corporation (100%)

Head office: Annex to Tokuyama Bldg. 1-4-5, Nishi-Shimbashi, Minato-ku, Tokyo, 105-8429
Business:
Manufacture and sales of biaxially oriented polypropylene films and cast polypropylene
films (including multi-layer co-extruded films)

Shimasu, Itako City,
Kanto Plant 3075-18,
Ibaraki Prefecture, 311-2434

Harumi-cho, Shunan City,
Tokuyama Plant 7-7,
Yamaguchi Prefecture, 745-0024

Plant manager:
Hideki Tanaka
Employees: 167
2
Area: 55,800 m

Plant manager:
Toshiyuki Yamaoka
Employees: 145
2
Area: 24,100 m

Kanto Plant is located in the Itako Industrial Park in Ibaraki
Prefecture and manufactures a total quantity of 25,000 tons
a year of biaxially oriented PP films and cast PP films. Kanto
Plant has actively pursued energy saving from thestandpoint of environmental conservation.
In fiscal 2005, we reduced heavy oil consumption by
38% as compared with the previous year by operating thecogeneration plant at full scale. In fiscal 2006, we aim at
reducing heavy oil consumption by 50% as compared withfiscal 2004. We kicked off activities to acquire ISO 14001.
We promote the PDCA cycle aiming at running our plant inharmony with society, together with implementing ISO 9001
and the Occupational Health and Safety Management
System.

■ Performance Data (FYs 2001-2005)

Tokuyama Plant is located within the Tokuyama Factoryand manufactures about 23,000 tons a year of biaxiallyoriented PP film. The plant conducts coordinated RC activities
with Tokuyama Factory and also maintains ISO 14001 forenvironmental conservation. In fiscal 2005, we made all-out
efforts to “drastically reduce manufacturing losses” Thanks tothese efforts, we achieved an 8% reduction in unit raw
material consumption and a 5% decrease in unit energy
consumption. For these achievements, we were presented
with the President’s Award for Tokuyama Group companies.
Regarding safety and health, we began to implement an
occupational health and safety management system andpromoted various activities laying stress on risk assessment.
In fiscal 2006, we continued efforts under the slogan of “Feeljoy in production; Be stringent with quality; and Adhere tosafety,” so that our plant can continue to be relied on bysociety and by our customers.

Unit

2001

2002

2003

2004

2005

Power consumption

1,000 kWh

21,73026,89027,81028,47028,480

Heavy oil consumption

kl/year

1,280

1,480

1,460

1,470

910

Unit

2001

2002

2003

2004

2005

SOx

tons/year

1.4

2.2

2.0

2.0

0.7

Power consumption

1,000 kWh

34,42034,92036,17035,74035,770NOx

tons/year

2.5

2.8

3.3

3.3

0.9

2,500

2,450

3,080

2,610

2,930

tons/year

0.6

0.1

0.3

0.3

0.04

Consumption of 0.3 MPa
steamkl/yearSoot particles■ Performance Data (FYs 2001-2005)

Industrial water consumption

tons/year

62

56

52

53

63

Consumption of 2.1 MPa
steam

tons/year

37,69039,67042,27042,76044,830Waste generation

tons/year

300

100

27

90

22

Waste generation

tons/year

670

270

100

80

160

Volume of external final disposal

tons/year

7

10

20

0

0

COD

tons/year

0.01

0.02

0.02

0.02

0.02

Volume of external
final disposal

tons/year

36

18

4

2

0

29 Tokuyama Corporation

Sun Arrow Chemical Co., Ltd.
Head office: Kitahama-Chuo Bldg., 2-2-22, Kitahama, Chuo-ku, Osaka City, 541-0041
Business: Manufacture and sales of vinyl chloride compounds

1-2, Harumicho, Shunan City,

Tokuyama Plant Yamaguchi Prefecture, 745-0024

Plant manager:
Shigefumi Kunihiro
Employees: 25
2
Area: 3,280 m

Our Tokuyama Plant is located within the Higashi Plant of
the Tokuyama Factory and manufactures about 12,000 tonsof vinyl chloride compounds a year.
Out of recognition that RC activities should be carriedout regardless of the size of a company, our plant conducts
its own RC activities harmonized with those of Tokuyama
Factory.
In fiscal 2005, we established goals for reducing waste
and 100% recycling of waste plastics. We achieved thesegoals by exhaustively sorting out such waste materials.
As for occupational health and safety, we uphold astringent corporate policy of “Safety First,” fully realizing the■ Performance Data (FYs 2001-2005)
Units

2001

2002

2003

2004

2005

Power
consumption

1,000
kWh

2,310

2,570

2,790

3,020

3,210

Consumption of
0.3 MPa steam

tons/
year

240

240

240

240

240

Industrial water
consumption

1,000
tons/year

65

65

65

65

65

Volume of external
final disposal

tons/
year

21.1

7.3

0

0

0

importance of preventing any kind of disaster. Therefore, we
enthusiastically conduct activities in response totechnological progress and the diversification of materials
with assistance from Tokuyama Corporation and makecontinuing efforts to reduce or eliminate potential risks. We
will plan a transition to the Occupational and Health and
Safety Management System in fiscal 2006 and establish thesystem in fiscal 2007.

Site Reports

Established: February 1, 1999
Shareholders: Tokuyama Corporation (100%)

Tokuyama RC Activities—Historical Overview
July 1991
March 1993
April 1994
June
April 1995
May 1997
September
April 1998
DecemberJanuary 1999
June
DecemberAugust 2000
April 2001
April 2002

Established Global Environmental Issues Committee
Established RC Administration Committee,
Instituted voluntary plan for Total Management ofEnvironment, Safety and Quality
Acquired ISO 9002 certification for High-Purity
Isopropyl Alcohol
Improved product warranty systems, such as productand labeling assessments
Became a member of the Japan Responsible CareCouncilAcquired ISO 9001 certification for Cement
Manufacturing
Issued RC Report (First edition)
Acquired ISO 9001 certification for Dental Materials
Manufacturing
Acquired ISO 9001 and 9002 certifications foraluminum nitride and Functional Powders
Manufacturing; Tokuyama Factory was certified to
ISO 14001
Kashima Factory was certified to ISO 14001.
Acquired ISO 9002 certification for Chemical
Products, Polypropylene, Films, etc.
Set up Ecological Management Initiative Department.
Acquired ISO 9002 certification for polycrystalline
silicon, organic solutions, etc.
Created Recycling and Environmental Business
Department
Established Yamaguchi Eco-Tech Corporation
Acquired ISO 9002 certification for vinyl chloride
monomer and polyvinyl chloride

June

Kashima Factory won the Ibaraki Prefecture award inrecognition of it being an “Earth-Friendly Company”.
March 2003
Received the award of distinction in “Resource
Recycling Technologies and Systems” from the
Director-General of Industrial Science andTechnology Policy and Environment Bureau, Ministryof Economy, Trade and Industry
April
Updated certification to ISO 9001: 2000; company’ssales sector was newly certified
December
Underwent the Responsible Care verification
process. Tokuyama Factory achieved a Category II
zero-accidents record (8.1 million hours for thechemical industry) as defined by the Ministry of
Health, Labor and Welfare.
October 2004 Figaro Engineering Inc. acquired an ISO 14001
certification. Kashima Factory was granted the
Director-General of Labor Bureau of the Ibaraki
Prefectural Government Award.
February 2005 Tokuyama Factory was granted the Director-Generalof the Agency of Natural Resources and EnergyAward for Excellent Energy Management Plant(Electricity Sector).
March
Tokuyama Factory acquired a certification of the
Yamaguchi Prefecture Eco Factory.
June
Tokuyama Factory achieved the Ministry of Health,Labour and Welfare’s Category III Zero-Accident
record (chemical industry: 12.2 million hours).
September
ASTOM Corporation acquired ISO 9001 certification.

Responsible Care Report 2006 30

Tokuyama Corp.
Responsible Care & Eco Management Dept.
Shibuya Konno Bldg., 3-1, Shibuya 3-chome
Shibuya-ku, Tokyo 150-8383
Phone: +81 3-3499-8478
Fax: +81 3-3499-8961
URL: http://www.tokuyama.co.jp
e-mail: rc-toukatsu@tokuyama.co.jp

This report is printed on FSC-accredited paper with pure plant oil ink, which contains no volatile organic
compounds and in a dry printing process that uses no water, thus precluding release of any harmful effluents.

Date of issue: September 30, 2006
Next issue: Scheduled for September 2007