MUSASHI
Environmental Report2015

■Contents
Company Profile

2

CEO Message
Musashi Philosophy
Environmental Policy

344GrobalMusashi Group Environmental Management
Musashi Affiliates Environmental Management
Musashi Group Environmental Impact
Group-Wide Reduction Efforts on Environmental Impact
Japan
Initiatives on Environmental Management
Environmental Management
Environmental Goals and Achievements
Material Flow
Environmental Accounting

5
6
6
7
9
10
11
12
12

Environmental Initiatives in Production Engineering
Environmental Initiatives in Production
Environmental Initiatives in Transport
Environmental Initiatives in Purchasing

13
15
16
16

SocialSocial Contribution and Nature Conservation Activities

17

Environmental Data
Environmental Data Overseas
Environmental Data Japan

19
21■Period Covered
This report covers the activities in FY2014（April 2014 to March 2015）■Organization
Information in this report refers to all consolidated organizations.
We primarily report on Musashi Seimitsu Industry Co.,Ltd. for activities in Japan.

■Editorial Policy
Reference was made to the Environment Agency‘s guidelines on environmental reports
in drawing up this document.

MUSASHI Environmental Report 2015

1 / 22Company Profile【 Company Profile 】
Company Name

Musashi Seimitsu Industry Co.,Ltd.

Headquarters

39-5, Daizen, Ueta-Cho, Toyohashi, Aichi

FoundedApril 1938

Established

January 22, 1944

Capital

2,973 million yen

Employees (Group)

13,543 （As of March, 2015）

Employees (Japan)

1,322 （As of March, 2015）

Main Business Activities

Manufacturing and Sales of Transportation Equipment
Head Office / Ueta Plant
Akemi Plant #1
Akemi Plant #2
Horai Plant
Suzuka Plant

Japan(Toyohashi, Aichi)(Toyohashi, Aichi)(Toyohashi, Aichi)(Shinshiro, Aichi)(Suzuka, Mie)

Japan：Kyushu Musashi Seimitsu Co.,Ltd. etc. (2 affiliates)
Overseas：EU, Asia etc.
(18 affiliates)

Affiliated Companies【FY2014 Financial Result】（Million Yen）
Consolidated

Non-consolidated

Net Sales

158,20945,429Ordinary Income※

11,8752,298

Net Income

6,379

1,363

【Net Sales (million yen) 】※Conformed with Japan GAAP

Consolidated Net Sales

Non-consolidated Net Sales

160,000
140,000
120,000
100,000
80,00060,00040,00020,0000Year ended
March 31, 2011

Year ended
March 31, 2012

Year ended
March 31, 2013

Year ended
March 31, 2014

Year ended
March 31, 2015

【Closing Date】

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CEO Message

Creating Environmentally Friendly Musashi Brand Products

As an organization Musashi is committed toconserving the global environment and the healthand safety of our employees and local residents.
We do this by both avoiding environmental
pollution and also by continuously reducing
the impact that our business activities haveon the environment.
Whilst the automotive market for both two andfour wheel vehicles is expected to grow over the
coming years, stricter environmental legislationand increased local sourcing of materials issimultaneously reshaping the industry.
Under these circumstances, Musashi will be able
to quickly embrace the many new opportunities
for light weight, high efficiency and competitive
products that we are able to offer.
By establishing a more efficient global management
system we will focus our activities on an optimizedbalance of environmental measures and businessefficiency.
In response to these needs, we have beendeveloping cutting edge technologies by
establishing design, analysis and testing
facilities in order to create Musashi brandproducts which our customers’ needs whilst
protecting the environment. Our Light weight
Differential Assembly equipped with MS
Differential gears is a good example of thisactivity, and has already earned a successful
reputation among customers around the world.

We have been striving to reduce our environmental
footprint and prevent environmental pollution
throughout the Musashi Group by further
developing our Global Environmental Management
System. This has delivered positive results inenergy saving and resource conservation acrossthe whole Group.
This report summarizes the global environmental
protection activities and achievements of theMusashi Group in the financial year 2014/15.
We hope that this report will help to give thereader a better understanding of the Musashi
Group’s activities in this field.
June 2015
Musashi Seimitsu Industry Co.,Ltd.
President & CEO Hiroshi Otsuka

MUSASHI Environmental Report 2015

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Musashi Philosophy
Musashi Philosophy consists of 3 elements:“Sprit of Foundation”, “Corporate Mission” and “Guidance for Conduct”【Sprit of Foundation】
Shitsujitsu-Goken
Shisei-Ikkan(Simple and Sturdy)(Consistent Sincerity)【Corporate Mission】 【Guidance for Conduct】
We will continue to explore and develop
our original Monozukuri and thereby
contribute to the global society byproviding trusted and attractive products.

The “Musashi Spirit”
1. Customer first
2. Integrity
3. Resourcefulness
4. Hard work
5. Cooperation for the common goal
6. Remember our rights and responsibilities

Environmental Policy■Basic Principle■
Musashi recognizes that environmental preservation is one of the most important problems as amember of society. We preserve the global environment and enhance mankind's prosperity
through its corporate activities for the society and the environment. We set the following
guidelines toward achieving the goal to maintain the sprit of innovation.

■Basic Policy■
Musashi, as a good corporate citizen in global society, strives to achieve environmental management
based on the guidelines stated below.
①Not only complying with the international rules and local laws, Musashi establishes the necessary
self-imposed standards for meeting social and stake holders requirements.
Waste water, Air, Noise, Odor, Vibration, Waste, Hazardous materials, Soil contamination②Musashi reduces the environmental load as much as possible in the business area of the organization.
We shall endeavor to continuously maintain and improve our environmental management system.
③Musashi ensures the effective use of energy and other resources in our business activities andpursues the appropriate management of chemical substances and reduction of waste.
④Musashi will continue to actively engage with local groups and undertake further environmental
conservation projects to protect and preserve our global environment.
We ensure that all individuals working in or for our organization are fully aware of these environmental
policies and maintain harmonious ties with local communities.
We establish objectives and targets based on this policy and formulate an environmental action
plan to achieve these objectives and targets, which we implement, evaluate and revise.
Also, we ensure that all individuals working in or for our organization are fully aware of theseenvironmental policies by posting and disclosing such policies to the general public.
May 1, 2006
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Musashi Group Environmental Management

Global■Global Business Development
In addition to announcing the expansion of production sites in China, the Vietnam plant has become
consolidated in 2014. Also we are expanding global productions by starting full-scale operationsin Mexico and Bangalore, India.
In light of this environment, it has been increasingly important to conduct more global environmental
management. We actively give due consideration to the environment and contribute to protecting
the environment and building a sustainable society to be a trusted enterprise in society.
Vietnam Plant

Mexico Plant※

Bangalore Plant, India(Established in Nov. 2010)(Musashi Auto Parts Vietnam Co.,Ltd.)(Established in March 2012)(Musashi Auto Parts Mexico, S.A. de C.V.)(Established in Jun. 2013)(Musashi Auto Parts India Pvt. Ltd.)※ Non-consolidated as of March,2015■Global Environmental Management Promotion System
Musashi Group is advancing environmental management under the ISO 14001 standard. Based on
the standard, we have conducted activities, the quantitative grasp of the environmental data,
environmental improvement technologies and information-sharing regarding environmental
measures.
Various environmental data in each region are shared across the Group each month and its
achievement and activities are reviewed at the Global Top Meeting, representing all management.
This collection of actual cases of environmental improvement has been published on the company
intranet. We also share advance improvement activities in each region at the Global QC
Circle Conference.
The Musashi Group is striving to reduce the environmental impact by planned and continuous
promotion of activities across the Group.

Eachaffiliate

Implementation Plan
Development

Implementing
Measures

Activity andAchievement Report

Reviewing Plans/Problem Extraction

HQ

Global Environmental Management Promotion System

Company-Wide
PolicyProviding Measures/Technical Support

Review

Data Analysis
SupportAt the Global QC Circle Conference

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Musashi Affiliates Environmental Management

Global■Musashi Group ISO14001 Certification Status
Since obtaining ISO 14001 certification in August 1998 in Japan, we have been promoting toobtain ISO 14001 certification to reduce environmental load of the Group.
Currently, 11 consolidated companies and new plant have acquired or are in the process ofacquiring ISO14001.
Countries

Date of Acquisitionof ISO14001 Certification

Name of Company

Japan

Musashi Seimitsu Industry Co.,Ltd.

August, 1998

Japan

Kyushu Musashi Seimitsu Co.,Ltd.

November, 1998

US

Musashi Auto Parts Michigan Inc.

July, 1999

ThailandMusashi Auto Parts Co.,Ltd.

February, 2002(#1 and #2 Plant)

Indonesia

P.T. Musashi Auto Parts Indonesia

March, 2003

CanadaMusashi Auto Parts Canada Inc.

May, 2000

BrazilMusashi do Brasil Ltda.

November, 2001

Musashi Hungary Manufacturing, Ltd.

February, 2005

BrazilMusashi da Amazonia Ltda.

June, 2008

India

Musashi Auto Parts India Pvt. Ltd.

March, 2003

China

Musashi Auto Parts (Zhongshan)Co., Ltd.

February, 2006

VietnamMusashi Auto Parts Vietnam Co.,Ltd.

Currently acquiring

HungaryMusashi Group Environmental Impact
Musashi, including those outside Japan, have been continuously promoting environmental load
reduction such as saving energy and conserving resources to contribute to the development of asustainable society and planet.

■Energy Input（MJ）
2,500
2,000

2,106
1,729

1,830

■Greenhouse Gases※（1,000ton-CO2）
2,137

1,849

EuropeSouth America

1,500North America

1,000

Asia

300
243
250
182

200

189

246

213

South America
North America

150

Asia

100
China

500

Japan
0
2010

2011

2012

2013

China

50

Japan

0

2014

2010

2011

2012

2013

2014

■Water Consumption（ton）■Waste Emissions（ton）

1,400

25,000

1,184

1,200
1,000

1,189

Europe

1,042
916

919

South America

Europe19,40320,00017,544

Europe19,01016,74016,158South America

800

North America

15,000600

Asia

10,000

Asia

China

5,000

China

400
200

Japan

0
2010

2011

2012

2013

2014

North America

Japan

0
2010

2011

2012

2013

2014

※Calculation protocol of Greenhouse gases refer mainly to WRI/WBCSD (2004), The Greenhouse Gas Protocol (Revised Edition)” for Scope1 and Scope2. Scope2
is calculated using for 2010 electric power emission factor from International Energy Agency (2013), “CO2 Emissions From Fuel Combustion Highlights 2013”.

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Group-Wide Reduction Efforts on Environmental Impact

GlobalSolar Street Lights■Introduction of Solar Street Lights（Thailand：MAP-TH）
For reductions in CO2 emissions, all external lights on
the factory premises were changed from mercury
lamps to Solar lights generated by a solar panel. We
will continue promoting the replacement .

LED Ceiling Lightings■Switchover to LED Lighting in the Plant（Indonesia：MAP-IN）
For reductions in CO2 emissions, about 2/3 of ceilinglights in KARAWANG Plant have been replaced to LED
lighting, which led to cut CO2 emissions by approx.33
tons per year. MAP-IN will be improved in the future to
replace the lighting in the remaining area of KARAWAN
Plant, machining process area of CIKARANG Plant (Forging,
Heat Treatment area have been replaced in 2013)

Materials on the Mesh Beltto the Normalizing Furnace■Improvement of Operating Methods ofNormalizing Furnace Mesh Belt
（India：MAP-ID）
Since power usage of the forging equipment is rather high,based on the improvement of efficiency from Japan,
MAP-ID conducted to reduce CO2 by improvement ofoperating methods of the normalizing furnace such as
setting change of the standby mode. This efforts enabled
the reduction of CO2 output by approx.11 tons per year.

■Measures for Air Leakage

Inspection for Air Gun and Filter（Vietnam：MAP-VN）
At the Vietnam Plant, MAP-VN was promoted to minimize
air leakage during manufacturing processes.
Inspecting piping joints, air gun, air filter and solenoid
valves etc. parts with the air leak have been repaired or
replaced. Those efforts enabled the reduction of CO2
emissions by approx.28 tons per year.

■Shortening Machining Time of Differential Case

Differential Case
Machining Methods Improved（China：MAP-CH）
In the differential case machining line, chamfering
methods of a screw hole have been improved. Thereby,
the chamfering time have been shortened by 16% andimproved machine utilization rate by improvement oftool life. These efforts have led to an annual 68 ton
reduction in CO2 emissions.

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Group-Wide Reduction Efforts on Environmental Impact■Waste Tray Recycling System Established

GlobalWaste Tray

（America：MAP-MI）
MAP-MI has established a recycling system for the waste
tray for product transportation which had been disposedin landfill March, 2014. This efforts enabled recycling of
the waste tray by approx.19 tons per year and reducing
landfill waste.

■Recycling of Cylinder Oil for Forging（Canada：MAP-CA）

Recycled Cylinder Oil(From the Left: Used Oil, Recycled Oil, New Oil)

MAP-CA has started recycling of cylinder oil for forging.
Nearly 6,000 liters of cylinder oil have been used annuallyin the forging process. By refining and recycling such
waste oil, MAP-CA has achieved reduction of use of oil
approx. by 3,000 tons and reductions of costs, wastes
and carbon footprint※.
※LCA-based analysis method at all stage of product life cycle.

■New Normalizing Furnace Heater（Brazil：MSB）

Comparison of Power Consumption

MWh

4,000

MSB has switched from the existing normalizing furnace
heater in the forging process to a more efficient heater,which consumes less power, contributes to reducing
standby power consumption while maintaining treatment
conditions and product quality. This enabled the reductionof CO2 output by approx.67 tons annually.

2,873

3,000

2,240

2,000
1,000
0

Cut by 21%

Before
2013

After
2014

Plan to Reduce CO2
by New Air Conditioners■Introduction of Inverter Air Conditioners（Brazil：MDA）
MDA has reduced power consumptions by switching to
inverter air conditioners from existing air conditioners.
New inverter air conditioners auto adjust controls tomaintain a constant, set temperature throughout regardlessof the temperature. This is expected to reduce CO2
emissions by approx. 4.5 tons annually in 2015 compared
to 2014.

LED Lighting for High Ceiling■LED Lighting in Plant（Hungary：MHM）
Bulbs in the Plant had been progressively replaced by
LED lighting and completed in April, 2014. By replacing
the metal halide lamp to LED lighting, MHM has reduced
power consumption by approx. 65% while ensuring
luminous intensity equivalent. This means a reduction of
CO2 emissions by approx. 136 tons per year.

MUSASHI Environmental Report 20158 / 22

Initiatives on Environmental Management

Japan■Current Status of Environmental Issues and Future Challenges
In Japan, “Climate change and energy issues” are a key issue for global environmental
conservation. It is becoming more critical not only in production areas but also in the reductionof environmental impact throughout life cycles stages of the product such as the supply chain
management and the environmental performance of products.
With the expansion of our businesses on a global scale, in domestic business, from environmental
perspectives, reduction of environmental impact including energy conservation, saving resources
and pollution prevention are required.
We need to step up efforts to reduce environmental impacts in all product life cycle stages tocontinue to be a frontrunner of environmental activities.

All Product
Life Cycle
StagesMajor Initiatives in Each Domain
R&D

Production
Engineering

Production

Purchasing

Production
Management

New Product
R&D

Develop & Change
in Manufacturing
Process

Increasing
Efficiency
in SiteReducing
Environmental
Impact with Suppliers

Improve
Distribution Efficiency& Simplified Packaging

Leading Musashi Global Environmental Activities■The Environmental Award from Customers～ FY2014 Presentation of the Environmental Award for Suppliers～

The Environmental Award

We have received the Environmental Award from ourmain customer, Honda Motor Co., Ltd. This means that
we have implemented measures and showed exceptional
progress in reducing environmental impacts.
We are accelerating our efforts to reduce environmentalload across production life cycles.

■Evaluation by External Organization～An Environmentally Responsible Management Evaluation by DBJ～

The Highest Mark in DBJ
Environmental Rating

We have received the highest mark in Development
Bank of Japan (DBJ) Environmental Rating for offering
environmentally friendly products, for our initiatives
aimed at reducing its environmental burden.
This is because our environmental initiatives are higher
than those of other industries or companies.

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Environmental Management

Japan■Environmental Management Organization
To establish a company-level environmental management, Musashi has formed the Central
Environment Committee to orchestrate a Group-wide response to the environmental issues.
Also, we are implementing the examination by an external certification body and internal auditing
since we acquired ISO 14001 certification in August 1998.
In FY2014, we implemented an external audit in August 2014 and January 2015. There was one
case of minor nonconformity in “environmental aspects and update of environmental aspects”,
which was immediately corrected.

President and CEO
Environmental
Management Supervisor
Environmental
Management Manager

Central Environmental
Committee
Ueta Plant
Environmental
Committee

Akemi #2 Plant
Environmental
Committee

Akemi #1 Plant
Environmental
Committee

Horai Plant
Environmental
Committee

Suzuka Plant
Environmental
Committee

Ueta Plant
Environmental
ManagerAkemi #2 Plant
Environmental
ManagerAkemi #1 Plant
Environmental
Manager

Horai Plant
Environmental
Manager

Suzuka Plant
Environmental
Manager

Factory
Personnel
Meeting

Ueta Plant
Qualified Person
for Environmental
Activities

Akemi #2 Plant
Qualified Person
for Environmental
Activities

Akemi #1 Plant
Qualified Person
for Environmental
Activities

Horai Plant
Qualified Person
for Environmental
Activities

Suzuka Plant
Qualified Person
for Environmental
Activities

EnergyConservation
Meeting

Ueta Plant
Qualified Person
for Energy
Management

Akemi #2 Plant
Qualified Person
for Energy
Management

Akemi #1 Plant
Qualified Person
for Energy
Management

Horai Plant
Qualified Person
for Energy
Management

Suzuka Plant
Qualified Person
for Energy
Management

Indirect department

Environmental
Meeting

Indirect Department
Qualified Person for Environmental Activities■Environmental Laws and Regulations
We are implementing a compliance officer system for global workplaces with a designatedemployee in charge of compliance promotion. Companywide compliance is implemented
thoroughly through the internal control committee made up of compliance officers,
directors, executive officers, and monitoring investigations on a regular basis.
Regarding observance of environment-related laws and regulations, we confirm regularly
the result of regulation values, notification circumstances and facilities that could have amajor environmental impact.

■Environmental Risks
We are taking safety countermeasures against possible accidents of the facilities that could havea major environmental impact, emergency communication protocols and equipment are in place,and we are investigating group wide deployment.
Each workplace prepares for accidents by putting in place emergency facilities, equipment,
response procedures, and checking that all will function properly when accidents do occur
through periodic drills. Our business partners also participate in such drills.

MUSASHI Environmental Report 201510 / 22

Environmental Goals and Achievements

Japan

We cleared targets and improved for environmental impacts in each category below in 2014.
FY2014
Category

Global WarmingCountermeasures/Energy Saving

Resource
SavingEnvironmental Activity

Control Items

Green-House Gas
Reduction

FY2015
TargetTargetResultAchievement

CO2 Emissions per Unit
（CO2ton／million yen)

１％ Reduction(baseline:2013)

２.２％
Reduction◎

２％ Reduction(baseline:2013)

Reduction ofTransportation-Related
CO2 Emissions

CO2 per Unit
（CO2ton／million yen）

１％ Reduction(baseline:2013)

８.３％
Reduction◎

２％ Reduction(baseline:2013)

Water Consumption
Reduction

Water Consumption(m3)

６％ Reduction(baseline:2008)

８.２％
Reduction◎

７％ Reduction(baseline:2008)

Industrial Waste
Reduction

Waste Volume per Unit
(ton／million yen)

４％ Reduction(baseline:2011)

３.３％
Reduction△

５％ Reduction(baseline:2011)

Recycling Rate(％)

Recycling Rate
９５％ or Higher

９７.６％

○

Maintain
Recycling Rate
９５％ or Higher

Landfill Rate(%)

Landfill Rate
0.1％

0％

○

MaintainLandfill Rate
0.1％

８０％ Reduction(baseline:2000)

９０.１％
Reduction◎

８０％ Reduction(baseline:2000)

Promotionof the Recyclingof Waste

Reductions inEnvironmental
PRTR※-Listed Substances
Emissions of Chemical
Load-Reducing(ton)
Substances＜Target achieved＞ ◎：105% or higher, ○：95% to 105％, △：80% to 95％、 ×：80％ or lower※A PRTR (Pollutant Release and Transfer Register) is a national or regional database of information on the environmental release and off-site transfer ofpotentially hazardous chemical substances from industrial and other facilities.

■Reduction of GHG Emission
In fiscal 2014, CO2 emissions have reduced by 17%
from 2013 due to CO2 emission reduction initiatives
in each production level and decrease of domestic
production. CO2 consumption rate, an expression ofenergy efficiency was reduced by about 2.2% from thefiscal 2013 level by changing the forging process andmachining methods.
In the years ahead, we will strive to reinforce energy
reduction by improving process and production as wellas introduction of energy saving equipment.

■Reduction of Industrial Waste
In the fiscal year 2014, we achieved further reductionof industrial waste by 17% in comparison with thefiscal year 2011 due to reduction of water-based cutting
fluid and decrease of domestic production. As for theindustrial waste per unit of sales is reduced by 3.3%
compared to the fiscal 2011 level.
Also, direct landfill waste amount remains zero and its
recycling rate is over 95 %.
We engage in initiatives to generate less industrial waste
by reducing water-based cutting fluid and sludge
produced by the treatment of wastewater.

CO2 Emissions and Unit Energy Consumption（Presented as an index with fiscal 2013 as 100）
：CO₂ emission index
(％)

120

：CO₂ unit index

106.2

104.1

102.9

100.0

97.8

105

99

105

100

83

2010

2011

2012

2013

2014

100
80
60
40
20
0

(Base
Line)

Industrial Waste and Unit Waste Emission（Presented as an index with fiscal 2011 as 100）
：waste emission index
(％)

120

106.0

：waste emission unit index

100.0

95.9

97.0

96.7

100

102

100

83

2011

2012

2013

2014

100
80
60
40
20
0

106
2010

MUSASHI Environmental Report 2015

(Base Line)

11 / 22Material FlowJapan

■Fiscal 2014 INPUT ＆ OUTPUT（materials, energy flow）
We ascertain the annual environmental loads created by all stages of its business activities,
namely from raw material procurement to production, transportation, distribution, use anddisposal. The data is used to set target for reduction of CO2 and waste.

＜ Production ＞＜INPUT＞
Raw Materials
Steels※1

Forging＜OUTPUT＞
Byproducts
Metals8,992 ton

19,802

ton

Resins37

ton

Used Oils

149 kℓGrease15

ton

Others (Paper etc.)

130 tonSecondary Materials
Oils

471

MachiningkℓEnergyPurchased Electricity

Waste Disposal

1,506 ton

Direct Landfill

48,371 MWh

Kerosene374kℓGasoline

1.5

kℓ

LPG
City Gas

529

ton

366

1,000Nm3

Heat
Treatment

Finishing

Water Resources
Ground Water

45,251

m3

Tap Water

49,089m3

10,579m3

Water Recycle

Industrial Waste Disposal

Assembling

0 ton

Environmental Impact Substance
GHG Emission※2

28,175 ton

Total Water Discharge 38,909 m3
BOD(biochemical oxygen demand)

124

kg

COD(chemical oxygen demand)

398

kg

Nitrogen

329

kg

56

kg

5,284

kg

NOx

404

kg

SOx

34

kg

Phosphorus

PRTR Substances

Calculation Period: April 1, 2014 to March 31, 2015
※1 Excluding supplier processed parts.
※2 The subjects of CO2 emissions have been those under the Energy Saving Act. Accordingly, the actual emission factor in the “CO2 Emission Factors of EachElectricity Utility” publicized by the Ministry of the Environment of Japan in November 2014 was used.

Environmental Accounting
We introduced environmental accounting to collect data on our environmental conservation costs.
“Investment” is the investment for tangible fixed assets in FY2014, “Expense” is the expense forenvironmental measures in FY2014.
(million yen)
Cost Classification

Main Initiatives

Investment Expenses

8.8

88.6

air pollution, water pollution, soil pollution etc.

1.9

28.7

heat treatment process integration, compressor(1)-2 Global Environmental Preservation update etc.

6.4

3.8

0.5

56.1

0.0

0.0

1.3

75.3

5.0

143.6

0.0

1.2

0.0
0.0

0.0
0.0

(1) Costs within the Business Area
(1)-1 Pollution Prevention
Break
down

(1)-3 Circulation of Resources

waste treatment, recycling costs etc.

(2) Upstream and Downstream Costs(3) Management Activity Costs(4) Research and Development Costs(5) Social Activity Costs

ISO regular inspection, environmental education,
environmental labor costs etc.
development products that conserve energy andresources (size and weight reduction)community clean-up activities, Musashi woodland
project etc.

(6) Costs for Environmental Damage(7) Other Costs
Total

MUSASHI Environmental Report 2015

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12 / 22

Environmental Initiatives in Production EngineeringJapan

The production Engineering Division is promoting improvement of manufacturing process andproduct with minimal environmental impact based on the following policies.
【Product Design Area】●Pay attention to the environmental impacts at every stage of the product life cycle,
from design and manufacture to distribution and disposal, aiming to “provide andcreate reliable products that are supported by our customers”●For complying with environmental laws and regulations, we conduct chemical substancesand environment recyclability evaluation through LCA※1.
【Production Engineering Area】●In process design, we promote to simplify manufacturing process.
●Introduce cutting-edge equipment with less environmental load and reduce the environmental
impact.

■Global Expansion of Lightweight Differential Assembly
The driving system (transmission etc.) can be made more compact and lighter, which can improvefuel consumption. The differential design with lightweight differential case allows us to realize a
15-percent weight savings※2. The mother R&D center with a FEM analysis※3 and function assurance
system are pushing forward to develop a lightweight differential assembly to our global customers.

Lightweight Differential Case Development Flow
DesignFunction Assurance

Production

3D-Modeling

Conventional Productabout 6kg
Lightweight caseabout 5kg

FEM-Analysis
Detailed simulation using the
3D modeling software andFEM analysis.

Shape is determined byfunctional test with a tester.

Differential case walls to be thinner
A Weight Savings of Approximately 1 kg

North
America

EuropeAsia
Lightweight Differential
Assembly in Global Market.

South
America※1 LCA (Life Cycle Assessment) is a technique to assess environmental impacts associated with all the stages of a product's life from cradle to grave (i.e.,from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling).
※2 We achieved weight saving by more than 10% than conventional products. It differs according to models. (compared with our products)※3 Numerical simulation based on the finite element method to predict behavior and strength of complex geometrical objects such as a differential case.

MUSASHI Environmental Report 201513 / 22

Environmental Initiatives in Production EngineeringJapan

Forging Engineering Division is continuously promoting process-saving with full consideration of
the environmental effects.
Main initiatives are as follows:●Process Design by Accumulated Forging Technology●Formability Verification Through Simulation Technology●Challenge to a High-Efficiency Forging■High-Efficiency Hot Forging (Challenge to Yield Optimization)
In forging area, we are continuously challenging to reduce the processes and machining allowance
as “load reduction” and “process less” in post-processing steps are constantly required. In thepresent instance, we have reduced our annual CO2 emission by 11.7ton by “reducing machining
allowance in the lathing process” and “disusing of trimming in forging” through the repeatedsimulations for optimal molding.

●Reduction of Machining Allowance（Yield Optimization Improvement）
We succeeded in reducing allowance at the back of the tooth by repeating moldability simulation
verification. This effort realized drastic reduction in the amount of allowance in post-processing
step, lathing as well as reduction in machining times. This resulted in reduction of CO2 emission
by about 10 ton annually.
BeforeAfter

Allowance in Post-Processing

Reduction of Allowance●Disusing of Trimming Process in Forging
We disused “trimming process”(deburring) by utilizing a simulation with accumulated forging
designs, which we predict underfill and overfill in forging and enabled reduction of CO2 emission
by about 1.7 ton annually.
Before：Deburring is necessary by trimming

After：Deburring is unnecessary

Longitudinal
Burr

Old
Process

Cutting

Shot

Forging

New
Process

Side Burr

Cutting

Shot

Forging

Trimming(Deburring)

Trimming(Deburring

MUSASHI Environmental Report 2015

Shot

Lathing(Cutting)

Shot

Lathing(Cutting)

14 / 22

Environmental Initiatives in Production■Switch Over to LED Lighting

Japan
LED Lighting（Ueta Plant）
Ueta Plant is promoting use of LED lighting in aplanned manner.
In fiscal 2014, 6 security lights in the parking
area, 28 of fluorescent lights in the office andinspection area have been replaced to LED
lighting. This effort saved power consumption
by below 60 % and about 3 ton of CO2 emission.

■Automatic Control of Cooling Tower

Automatic Control of Cooling Tower■Energy Saving by Efficient Operationof Normalization Furnace

After

In fiscal 2014, we applied an automatic control tothe cooling tower for the compressor. Although
the compressor had been auto controlled bycontrolling the number of operating units, thecooling tower had been manually controlled.
Therefore, we manufactured an automatic control
circuit for the cooling tower to link to the compressor
operation. This enabled reduction of CO2 emission
by about 12 ton annually.

Before（Akemi #1 Plant）

Operationcommand
Auto operation
control system

Auto control
compressor
×4 units
24-hour operation(Manual)
Cooling tower×4

Operationcommand
Cooling
Auto operation Tower
Control
control system Panel Operation(In-house) command

Auto control
compressor
×4 units
Auto control
Cooling tower×4(Link with Compressor)

Improved Normalization Furnace（Akemi #2 Plant）
We improved operation method of the normalization
furnace in forging which consume the most powerby improving equipment installation, operation
control circuit for shut-down and material wait
time as well as reviewing operation shift.
As a result, CO2 emission fell to 51 ton per year.

■Update of an Once-Through Boiler
and Recycle of Exhaust Steam（Kyushu Musashi Seimitsu Co.,Ltd）

Image of the New Boiler and Recycle of Exhaust Stream

Kyushu Musashi Seimitsu Co.,Ltd uses three
once-through boiler as a heat source in production.
Due to the its age and thermal inefficiency,
one boiler was replaced in 2013, two in 2014.
We employed a boiler with an economizer※ touse waste steam heat for feed water heatingwhen flashing. This enabled reduction of CO2
emission by 22 ton annually.
※Heat collection from the exhaust gas.

MUSASHI Environmental Report 2015

Heat
Exchanger

Feed
Water
(Soft
Water)

Waste
Steam
(High
temp.)

40～
60℃
To a Boiler

Drain
Tank

Water
SupplyTank

15 / 22

Environmental Initiatives in Transport●Cutting Transportation Distance of Chartered Trucks●Improving Load Efficiency of Chartered Trucks

CO2 Emissions and Sales Unit during Transport：CO₂ emission (t-CO₂)：Sale basic unit (t-CO₂/million yen)

2,000

●Flexible Transport Arrangement to the Production Change

0.080

1,500

0.060

1,000

0.040

500

0.020

0

Sales unit※

Production Management Division is focusing on the following
points in order to improve transportation efficiency byworking closely with customers and transport companies,
and pursuing CO2 emissions reduction during shipping.

CO2 emission■Transportation Efficiency

Japan

0.000

Since FY2013, we have applied “pick-up” method which* Sales unit：CO2 emissions (t-CO2)÷Sales（million yen）
is our customers CO2 reduction program, and in FY2014,
reduction of CO2 emission has expanded at all the points Transportation Areas of Chartered Trucks
Tochigi：FY2012of our supply chain.
2010 2011 2012 2013 2014

■Reduction of CO2 Emissions during Shipping①Cutting Transportation Distance of Chartered Trucks
by “Pick-Up Transportation※”
This FY2015, we have expanded “pick-up transportation”
we set forth a year ago. This reduced CO2 emissions bychartered trucks and thereby contributing to a reduction
in CO2 emission throughout the supply chain.
②Improving Loading Efficiency and Cutting Transportby Special Racks
Special racks for a package delivered from HQ to Suzuka
plant has been introduced which is allowed to use theinterspaces above containers. As a result, the loading
efficiency was improved to contribute halving the numberof trucks per day.

Gunma

：FY2013：FY2014：Logistics base

Saitama

Aichi
Shizuoka
Mie

Effect of Introduction of Special Racks
Before:２trucks/day
Toyohashi

10t(HQ Plant)

10t

SuzukaArea

After:1 truck/day
Toyohashi 10t(HQ Plant)
10t

SuzukaArea※Logistic system that a maker goes to a supplier production base to pick up parts etc.

Environmental Initiatives in Purchasing■Suppliers’ CO2 Emission Survey
From a product lifecyle perspective, the survey started
in 2010 with the aim of recognizing CO2 emission ofpurchasing and use of raw materials at the suppliers’
level. We will continue initiatives to recognize the data
and to reduce CO2 emission in the entire supply chain.

Customers’
CO2Transport

Musashis’
CO2Transport

Cooperation with customers is necessary to provide
environmentally-friendly products.
Purchasing division issues ”Green Purchasing Guidelines”
and promoting reduction of environmental impacts
throughout product life cycles across the supply chain
through meetings with suppliers and visiting suppliers.

CO2 Emissions in the Entire Supply Chain
Suppliers’
CO2■Environmental Burden Reduction Activities
Across the Entire Supply Chain

Data Grasp Rateof the Suppliers’ CO2 Emission

Survey Year Grasp Rate
FY201089%
FY201182%
FY2012100%
FY2013100%
FY2014
100%

MUSASHI Environmental Report 201516 / 22Social Contribution and Nature Conservation Activities

SocialAs a global company, we will continue efforts towards social contribution and nature conservation
activities tailored to the needs of communities in each region to contribute to the sustainablemutual development of both society and the local community.

■India：Tree Planting/Cleanup Activities■Vietnam：Donations for Local Schools

People in MAP-IN plant trees in the factory site
every year. Also, cleanup activities in thesurrounding area are organized every Tuesday.
Now all employees participate to beautify theregional environment.

MAP-VN is devoted to providing scholarshipand donating Personal computers for the
benefit of children in special need for future
growth for the region.

■China：Activity for “Left Behind Children※”■Japan：Community Clean-up Activities

In addition to continuing support for seniorcitizens who live by themselves or children
who live separately with parents, MAP-CH has
been cleaning up neighboring kindergartensand nursing homes every year.

Musashi organizes “community clean up
activities” every year. More than 500 people
including employee's families and retirees
took part in 2014.

※Their parents are working in the urban areas who have left their children
home to live with grandparents. It has become a social problem.

■Japan：Musashi Summer Festival
Our summer festival is open to everyone in thelocal area and has become a very popular eventfor the community. Many different food stalls
and events are available throughout the dayalong with a spectacular firework display in theevening.

MUSASHI Environmental Report 201517 / 22SocialSocial Contribution and Nature Conservation Activities■Indonesia：Planting Mangrove Trees■Brazil：Collaboration with the Community

MAP-IN donated 2,000 mangrove trees forprotection against rises in sea level due to global
warming. Some of our employees were involvedin planting them.

In addition to MDA initiates waste recycling andwastewater treatment in industrial area, MDA isconducting the environmental education targetingat the local elementary school on World Water Day.

■Thailand：Planting in Nature Park

■Canada：The Earth Day※ Activities

MAP-TH takes part in tree planting activities
every year to improve employees’ environmental
awareness and environmental protection in
Khao-I-To Waterwfall park.

MAP-CA organizes clean up activity on EarthDay every year. They are also supporting theoperations of local schools by purchasing goods.

※ An annual event, on which day events worldwide are held to demonstrate
support for environmental protection（April 22)■Japan：Musashi Woodland Project

We initiated our “Musashi Woodland Project” in 2009 with the intention of raisingawareness of the flora and fauna in woodland areas, along with the potential impact of
global warming on such areas. This is an activity participated by Musashi employees
and its family members to maintain local woodland areas. Every spring and fall many
participants from Musashi can be seen helping to maintain this area of woodland.

MUSASHI Environmental Report 201518 / 22

Environmental Data

Overseas■Thailand Musashi Auto Parts Co.,Ltd. (MAP-TH)＜Energy Consumption＞
Items

Employees：1,610＜Waste Generated＞
Unit

Results

Items

Electricity

MWh61,316

Liquefied Petroleum Gas (LPG)

ton

583

Quantity

ton■Indonesia P.T. Musashi Auto Parts Indonesia (MAP-IN)＜Energy Consumption＞
Items

Results

Electricity

MWh69,131

Dieselkℓ113

Gasolinekℓ92

1,000Nm3

568

ton

351

Liquefied Petroleum Gas (LPG)

Items
Quantity＜Energy Consumption＞
Results

Electricity

MWh33,040Type-A Heavy Oil

kℓ

5,128

Dieselkℓ5,225

Liquefied Petroleum Gas (LPG)

ton

1,003

Items
Quantity＜Energy Consumption＞

123

Unit

Results
3,049

Employees：421＜Waste Generated＞
Unit

Results

Electricity

MWh

8,952

Liquefied Petroleum Gas (LPG)

ton

68

Items
Quantity＜Energy Consumption＞

Unit
ton

■China Musashi Auto Parts(Zhongshan)Co.,Ltd. (MAP-CH)

Results
383

Employees：1,031＜Waste Generated＞
Unit

Results

Electricity

MWh20,540

Dieselkℓ0Liquefied Petroleum Gas (LPG)

ton

49

1,000Nm3

351

City Gas

Results

Employees：3,011

ton■Vietnam Musashi Auto Parts Vietnam Co.,Ltd. (MAP-VN)

Items

Unit

＜Waste Generated＞
Unit

Items

3,764

Employees：2,587

ton■India Musashi Auto Parts India Private Ltd. (MAP-ID)
Items

Results＜Waste Generated＞
Unit

Natural Gas

Unit

Items
Quantity

MUSASHI Environmental Report 2015

Unit
ton

Results
374

19 / 22

Environmental Data

Overseas■US, Michigan Musashi Auto Parts Michigan Incorporated (MAP-MI)＜Energy Consumption＞
Items＜Waste Generated＞
Unit

Results

Electricity

MWh44,068Natural Gas

1,000Nm3

2,967

Items
Quantity＜Energy Consumption＞
Results

Electricity

MWh25,061Natural Gas

1,000Nm3

Items
Quantity

Natural Gas
Liquefied Petroleum Gas (LPG)

Unit

Results

Items

MWh

28,136kl

121,000Nm3

408

ton

21

＜Energy Consumption＞

Electricity

836

Employees：884

Quantity

Unit
ton

Results
4,287

Employees：573＜Waste Generated＞
Unit

Results

Items

MWh

12,334

Dieselkl

1

Liquefied Petroleum Gas (LPG)

ton

235

Quantity＜Energy Consumption＞

Unit
ton

■Hungary Musashi Hungary Manufacturing, Limited (MHM)
Items

Results＜Waste Generated＞■Brazil, Amazonia Musashi Da Amazonia Ltda. (MDA)
Items

Unit

709

＜Energy Consumption＞

Diesel585

Employees：551

ton■Brazil, Pernambuco Musashi Do Brasil Ltda. (MSB)

Electricity

Results＜Waste Generated＞
Unit

Items

Unit
ton

■Canada Musashi Auto Parts Canada Incorporated (MAP-CA)
Items

Employees：642

Results
2,009

Employees：196＜Waste Generated＞
Unit

Results

Electricity

MWh

5,486

Natural Gas

1,000Nm3

Items
Quantity

Unit
ton

Results
956

48

MUSASHI Environmental Report 2015

20 / 22

Environmental DataJapan

■ Ueta Plant

Employees：803 （at March 2015）<Energy・Water Consumption>
No.

Items

1 Electricity
2 Kerosene
3 LPG
4 Water<Water Quality>
No.

<Air>
Unit

Results

MWh
kℓ
ton
m3

15,314147
480
51,350Date：May 22, 2014

Control Items

1 pH(hydrogen ion concentration)
2 BOD(biological oxygen demand)
3 COD(chemical oxygen demand)
4 Nitrogen Content
5 Phosphorus Content
6 SS(suspended solids)

Unit

Regulation
Value*

Measured
Value

mg/ℓ
mg/ℓ
mg/ℓ
mg/ℓ
mg/ℓ

5.8～8.625(20)
25(20)
120(60)16(8)30(20)

6.8
4.0
9.7
6.2
1.6
＜1

Date：Dec. 17, 2014

No. Control Items Object Facility

Unit

Regulation
Value

Measured
Value

Heater, West Plant

g/Nm3

0.30
0.30
1.8
0.87
180
180

＜0.003＜0.002＜0.002＜0.002
49
39

Unit
ton
ton

Results
515
0

1

Dust

2

Sulfur Oxide

3 Nitrogen Oxide

Heater, South Plant g/Nm3
Heater, West Plant

Heater, South Plant<Waste>No.
Items
1 Amount
2 Amount Sent Directly to Landfills*Self-imposed standards except BOD, bracket () shows daily average effluent standard

Employees：166 （at March 2015）<Energy・Water Consumption>
Items

<Air>
Unit

1 Electricity
2 Kerosene
3 LPG
4 Water

MWh
kℓ
ton
m3

Results
8,276
121
43
18,658<Water Quality>

Date：Feb. 18, 2015

No. Control Items Object Facility

1 pH(hydrogen ion concentration)
2 BOD(biological oxygen demand)
3 COD(chemical oxygen demand)
4 Nitrogen Content
5 Phosphorus Content
6 SS(suspended solids)

Unit

Regulation
Value*

6.0～8.5
mg/ℓ
10
mg/ℓ
10
mg/ℓ
20
mg/ℓ
2
mg/ℓ
10

Heater, Plant #1

ppm

150

67

ppm
ppm

150
150

64
33

Unit
ton
ton

Results
161
0

Heater, Plant #1
Sulfur Oxide Heater, Plant #2<Waste>No.
Items
1 Amount
2 Amount Sent Directly to Landfills

Employees：223（at March 2015）<Energy・Water Consumption>
Items

1 Electricity
2 City Gas
3 LPG
4 Water

Control Items

1 pH(hydrogen ion concentration)
2 BOD(biological oxygen demand)
3 COD(chemical oxygen demand)
4 Nitrogen Content
5 Phosphorus Content
6 SS(suspended solids)

<Air>
Unit

Results

MWh

17,165366
718,1101,000Nm3

ton
m3

Unit

Regulation
Value*

6.0～8.5
mg/ℓ
20
mg/ℓ
20
mg/ℓ
20
mg/ℓ
2
mg/ℓ
30

Measured
Value

7.3
2.0
5.3

Date：Feb. 2, 2015

No. Control Items Object Facility

Unit

Regulation
Value

Measured
Value

Normalizing Furnace g/Nm3
Dust
1
0.10 <0.002
Sulfur Oxide Normalizing Furnace Nm3/h 0.014 <0.002
2
3 Nitrogen Oxide Normalizing Furnace ppm
150<5<Waste>Date：Feb. 3, 2015 No.

<Water Quality>
No.

g/Nm3

Heater, Plant #3■ Akemi Plant #2
No.

MeasuredValue

3 Nitrogen Oxide Heater, Plant #2

Heater, Plant #2
Heater, Plant #3

Measured
Value

7.1
1.0
4.5
12
1.3
<1

Regulation
Value

Heater, Plant #3

Dust

Date：March 5, 2015

Control Items

Unit

0.10 ＜0.003
g/Nm3 0.10 ＜0.002
g/Nm3 0.10 ＜0.003
Nm3/h 0.053 ＜0.0009
Nm3/h 0.053 ＜0.002
Nm3/h 0.28 ＜0.002

Heater, Plant #1

1

2
No.

ppm
ppm

Heater, West Plant■ Akemi Plant #1
No.

Nm3/h

Heater, South Plant Nm3/h

Unit

Results

1 Amount

Items

ton

286

2 Amount Sent Directly to Landfills

ton

0

NCW
NCW

<1

*Self-imposed standards except BOD, bracket () shows daily average effluent standard

MUSASHI Environmental Report 2015

21 / 22

Environmental Data

Japan

■ Horai Plant

Employees：115（at March 2015）<Energy・Water Consumption>
No.

<Air>

Items

1 Electricity
2 Kerosene
3 Water<Water Quality>
No.

Date：Dec. 22, 2014

Results

No. Control Items Object Facility

Unit

MWh
kℓ
m3

7,542
107
6,055

1
2
3

g/Nm3
Nm3/h
ppm

HeaterHeaterHeaterDust
Sulfur Oxide
Nitrogen Oxide

1 pH(hydrogen ion concentration)
2 BOD(biological oxygen demand)
3 COD(chemical oxygen demand)
4 Nitrogen Content
5 Phosphorus Content
6 SS(suspended solids)

Unit

Regulation
Value*

MeasuredValue

5.8～8.6mg/ℓ
20mg/ℓ 160(120)mg/ℓ 120(60)
mg/ℓ
16(8)
mg/ℓ 200(150)

7.5
6.1
13
30
2.1
4

No.

Items

1 Amount
2 Amount Sent Directly to Landfills

Items

1 Electricity
2 Water

1
2 BOD(biological oxygen demand)
3 COD(chemical oxygen demand)
4 Nitrogen Content
5 Phosphorus Content
6 SS(suspended solids)
pH(hydrogen ion concentration)

Results

MWh
m3

75
167

No. Control Items

Unit

Regulation
Value*

5.8～8.6mg/ℓ
20mg/ℓ 160(120)mg/ℓ 120(60)
mg/ℓ
16(8)
mg/ℓ 200(150)

Measured
Value

6.7
10
33
85
10
4

Object Facility

Items

1 Electricity
2 Kerosene
3 Type-A Heavy Oil
4 Gasoline
5 LPG
6 Water

Unit

Items

Measured
Value

Unit

Resultston

10

2 Amount Sent Directly to Landfills

ton0*Self-imposed standards except BOD, bracket () shows daily average effluent standard<Air>

Date：Sep. 12, 2014

Unit

Results

No. Control Items Object Facility

MWh
kℓ
kℓ
kℓ
ton
m3

30,3132
21
19
718
227,359

Dust
Private Generator g/Nm3
1
2 Sulfur Oxide Private Generator Nm3/h
3 Nitrogen Oxide Private Generator ppm

Regulation
Value*

MeasuredValue

5.8～8.6
mg/ℓ
600
mg/ℓ
mg/ℓ
240
mg/ℓ
32
mg/ℓ
600

Regulation
Value

1 Amount

Unit<Waste>No.
Items
1 Amount
Date：Jan. 22, 2015 2 Amount Sent Directly to Landfills<Water Quality>
1 pH(hydrogen ion concentration)
2 BOD(biological oxygen demand)
3 COD(chemical oxygen demand)
4 Nitrogen Content
5 Phosphorus Content
6 SS(suspended solids)

Unit

Employees：715（at March 2015）<Energy・Water Consumption>

Control Items

534
0

Not Applicable■ Kyushu Musashi Seimitsu

No.

Results

ton
ton

<Air>
Unit

<Waste>Date：Aug. 27, 2014 No.

<Water Quality>
Control Items

Unit

Employees：15 （at March 2015）<Energy・Water Consumption>No.

0.30 < 0.002
1.7 <0.003
180
57*Self-imposed standards except BOD, bracket () shows daily average effluent standard■ Suzuka Plant

No.

Measured
Value

Date：Feb. 11, 2015 <Waste>

Control Items

No.

Regulation
Value

Unit

Regulation
Value*

Measured
Value

0.1
3.23
950

0.01
0.69
770

Unit
ton
ton

Results
608
0

7.2
57
NCW

13
44

*Self-imposed standards except BOD, bracket () shows daily average effluent standard

MUSASHI Environmental Report 201522 / 22

MUSASHI Environmental Report 2015
Musashi Seimitsu Industry Co.,Ltd.
39-5 Daizen, Ueta-cho, Toyohashi, Aichi 441-8560

Date of Publication：July 2015
Publisher：General Affairs Division
Manager：Toru Uchida