FY2012 CSR Website CSR > Site Reports > Worksites > Takaoka Plant

Toyama Prefecture was ranked second in a 2011 survey of the “happiest” places tolive in Japan (conducted by Hosei University), and is widely considered to be one of
the most livable prefectures in the country. The prefecture is commonly referred toas the “Home of Manyo” after the poet Otomo no Yakamochi, an 8th century
statesman-poet who famously penned the poetry collection “Manyo-shu (Anthologyof a Myriad Leaves).” The founder of Takaoka was Toshinaga Maeda, a 16thcentury samurai lord, and the area has been known for its unique Takaoka

Aerial view of the Takaoka Plant

copperware and lacquerware. Along with its arts, the city has been the center of a thriving commercial area in theHokuriku District along the Sea of Japan.
The Takaoka Plant is situated along the Oyabe River, which runs north-south through the city. The plant wasestablished in 1956 to manufacture polyvinyl chloride resins and expanded as the mass production site for theproduct over a half century until the company exited the business in 2008. During that time, the plant began
producing such current mainstay products as hydrogenated nitrile rubber Zetpol ® and semiconductors etching gas
ZEORORA®. The plant also became home to the Precision Optics Laboratory and a medical laboratory, establishingitself as the center of cutting-edge research at ZEON.
The plant is adjacent to a residential community and strives to ensure the security of the local community throughdaily safety-assurance activities and regular emergency-preparedness training. ZEON was the organizer of the 6th
Toyama-Takaoka District Responsible Care Community Dialogue conference held in fiscal 2011 to foster deeper
dialogue with the local community through an introduction of safety initiatives and a plant tour. The conference was
highly regarded among the participants.
In 2012, the plant turns 56 years of age, but it is still well in its prime and all employees continue to strive towards
excellence with the spirit that the future of ZEON will be born in Takaoka. The plant will continue to listen carefully tothe needs of the local community to ensure the sustainment of an environment rich in harmony and co-prosperity.

The Takaoka Plant has evolved from a mass producer of polyvinyl chloride resins to an R&D-style plant focused on
the development of cutting-edge technologies. The fact remains, however, that a quiet residential community sits
just a step outside the plant gate. With this in mind, ZEON takes into consideration the possible impact of new
products tests and newly introduced product materials on the local community from the R&D phase of productdevelopment, as it has done with the manufacturing of its current products. Each and every employee of the plantunderstands the CSR Policy, and based on this policy they strive to ensure ZEON has a reason for being from theperspective of the local community and can continue to make contributions to that community and society as awhole.

-1-FY2012 CSR Website CSR > Site Reports > Worksites > Takaoka Plant

1. Reducing toxic chemical emissions
The plant terminated the manufacture of polyvinyl chloride resins in March 2008, and therefore the amount of
release and transfer of PRTR*1-regulated substances declined in fiscal 2008 to less than one-tenth the amount of
the previous year. As part of the initiative to achieve zero emissions*2, the plant has newly installed equipment tocollect organic solvents used in the manufacturing process and plans to reduce the amount used in stages goingforward.
*1. Pollutant Release and Transfer Register
A database of hazardous chemical substances released into the environment and transferre d off-site in waste. It provides the public with important information such as where andhow much pollutants are being released and transferred.
*2. Zero emissions
The establishment of systems that discharge no emissions into the natural world, and the fun damental idea behind such establishment.

Substances subject to PRTR law

2. Reducing industrial waste
In fiscal 2011, the Takaoka Plant achieved zero emissions of industrial waste by recycling all of the waste plastics,
rubber, and sludge emitted from wastewater processing facilities, which were previously disposed of at external
landfills. In fiscal 2012, though the amount and type of industrial waste are expected to change as the plant begins
operation of new facilities and conducts new testing, the plant will study new ways to achieve 100% recycling andmaintain zero landfill waste.

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Amount of Waste to Landfill

3. Reducing air and water pollution
Substances emitted into the air by the plant’s boiler, which uses heavy fuel oil A*1, is one of the environmental issues
the plant has been dealing with. Until fiscal 2011, the plant has controlled boiler emissions by creating appropriate
operating conditions collectively with steam emissions inside the plant. From fiscal 2011, however, the plant plans toswitch from heavy fuel oil A to liquefied natural gas (LNG)*2, which will help to significantly reduce CO 2 in the nearfuture.
*1. Heavy fuel oil A
A heavy oil classified as type 1 heavy viscosity under JIS standards.
*2. LNG
Liquefied natural gas. Emits less CO 2 than many other fossil fuels when combusted and therefore is seen as a more environmentally friendly fuel.

CO2 emissions-3-FY2012 CSR Website CSR > Site Reports > Worksites > Takaoka Plant

SOX and NOX emissions

Total effluent waste water discharge, COD emissions, total nitrogen discharge and total phosphorus discharge

4. Saving resources and energy
The plant takes conservation measures through meticulous efforts to efficiently use energy, including theminimization of steam used in drying rubber. In fiscal 2011, amid concerns about electric power shortages during thesummer months, the Takaoka Plant smoothed electricity consumption by shifting the operation of equipment usinglarge amounts of electricity to earlier, off-peak hours. The plant plans to enhance energy efficiency even further by
getting all employees involved in conservation efforts.

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Total amount of energy and Unit energy consumption index

5. Environmental Data
Takaoka Plant
Toxic substances
Substances
subject to PRTR
law

Industrial waste

Atmosphericemissions

FY2007

FY2008FY2009FY2010FY2011

Vinyl chloride monomer consumption (tons)

759

0.0

0.0

0.0

0.0

Vinyl chloride monomer emissions (tons)

1.0

0.0

0.0

0.0

0.0

1,277

116

114

210

223

4.3

0.1

0.1

0.2

0.2

3,751

3,199

2,130

3,458

4,730

1,522

764

388

671

529

1,016

312

129

174

0

CO2 emissions (tons)

55,114

20,981

17,817

24,20824,427

SOX emissions (tons)

5214

8.7

7.06.849

17

19

14

15---

3,732

3,799

6,919

4,284

3,516

3,050

3,398

42

12

12

9.2

13.0

0.5

0.9

0.4

0.2

0.7

5.6

23

19

1016

Total consumption (crude oil equivalent, kL)

20,983

8,465

8,112

9,750

9,015

Unit consumption index (1990 = 100)

101%

102%

93%

94%

95%

10,762

4,337

4,523

5,419

4,866

Consumption (tons)
Amount emitted (tons)
Amount generated (before volume reduction)(tons)
Amount generated (after volume reduction)(tons)
Amount sent to landfill (tons)

NOX emissions (tons)
Water resources (Industrial water + Ground water +3Waterworks) consumption (1,000m )Total effluent waste water discharge
3(1,000m )COD emissions (tons)
Waste water
Total phosphorus discharge (tons)
Total nitrogen discharge (tons)
EnergyProduction of PDR equivalent (tons)-5-

FY2012 CSR Website CSR > Site Reports > Worksites > Takaoka Plant

To support the realization of ZEON’s Mid-Term Management Plan, SZ-20, and the enterprise blueprint for 2020,“ZEON creates the future today through the power of chemistry,” the Takaoka Plant is aiming to achieve a 100%
yield rate*. To achieve this goal, the plant will rely on science to analyze and visualize the underlying causes ofquality anomalies as well as to devise measures to address the problems.
* Yield rate
The percentage of products rolling off the production line that pass quality inspections. A 100% yield rate means that no def ective products were produced.

VOICE Stabilizing processes starts with visualizing processes quantitatively
Chemical companies rely on science to perform work. We abide by the following
policies in order to stabilize the manufacturing processes and deliver products withconsistent quality.
1.

We analyze and visualize manufacturing technologies quantitatively based on
accepted scientific standards.

2.

We determine management values and ranges and standardize work processes
based on accepted scientific standards after a discussion of various quantitative

Hiroshi Fujisawa, Corporate Officer andTakaoka Plant Managerdata.
3.

We aim to realize and sustain a 100% yield rate by using the Quality Assurance Conference as the primaryorganization for quality enhancement measures, along with management reviews of quality, technology, andsafety by various committees.

4.

We develop new manufacturing technology and incorporate it into our products to achieve a 100% yield rate
immediately after product commercialization by building deep bonds between the R&D organizations and theplant from the product development stage.
Based on the above policies, we will ensure that we operate a stable and safe plant.

1. Contributing to the community through volunteer work
On June 5, 2011, some 180 employees and family members representing the entire
ZEON Takaoka Group, not just those from the Takaoka Plant, took part in the HimiWaterfront Cleanup organized by a local environmental organization. In July as well,about 180 members of the Group took part in the Fushiki-Kokubu Waterfront Cleanuporganized by the Takaoka-Fushiki Beautification Volunteer Group and put their hearts
into cleaning up the beach.
The Takaoka Plant has also carried out Group blood drives and promoted blood

Himi Mayor Shigeru Douko at the Himi
Waterfront Cleanup

donations since 1971. The plant’s contribution was recognized on July 24, 2011 at the47th national blood drive convention held in Toyama City with a citation from the Minister of Health, Labour andWelfare. The citation was presented by Toyama Prefecture Governor Takakazu Ishii at a special ceremony. Taking
pride in the award, the entire ZEON Takaoka Group will strive to expand blood drives in the future.

-6-FY2012 CSR Website CSR > Site Reports > Worksites > Takaoka Plant

2. Interaction with the local community
ZEON Takaoka Group Summer Festival
The annual ZEON Takaoka Group Summer Festival was held on July 22, 2011. This year, the festival featured anindoor banquet instead of outdoor activities to prevent rain from canceling the occasion. Members of the local
community were invited to joint in the festivities. Neighborhood children enjoyed special games while the adults wereoffered sake brewed in the northern Tohoku region as a token of support for areas recovering from the Great East
Japan Earthquake. Altogether, some 450 people attended the lively festival, which ended with a prize drawing.

Futagami Manshou Kai
Employees from the Takaoka Plant actively take part in the Futagami Manshou Kai, an industry-academiagovernment association in the Futagami district as a way to deepen ties to the local community.

Takaoka Manyo Festival
Takaoka City holds an annual Takaoka Manyo Festival. The Takaoka Plant takes partin the annual main event, the recitation of all 20 volumes of the “Manyo-shu(Anthology of a Myriad Leaves).” In 2011, the event was held on October 7, and 19
plant employees—well over the five employees who participated last year - took part in
the festivities, awakening their feelings of bygone days to recite many a Japanese
poem at the gathering.

Employees taking part in therecitation of “Manyo-shu”-7-