2007

2007
CSR Report

ZEON CORPORATION
http://www.zeon.co.jp

2007

Corporate Social Responsibility

CSR ReportShin-Marunouchi Center Building, 1-6-2 Marunouchi,
Chiyoda-ku,Tokyo 100-8246 Japan
TEL:03-3216-1341
FAX:03-3216-0516

This booklet has been printed on paper
made from forests that are managed inaccordance with internationally agreed
principles and standards with respect
to economic, social and environmental
considerations.

ZEON CORPORATIONZEON CORPORATION CSR Department

ZEON CORPORATIONCSR Report

M essage

Message
Introducing the 2007 CSR Report

Table of Contents
Message

The 3-year mid-term management plan known as PZ-3 commenced in 2005.
As part of this program, ZEON acknowledges the importance and necessityof CSR*1 (Corporate Social Responsibility) across the entire Group, and is
working to incorporate CSR principles into all aspects of business
operations.
2005 saw the establishment of a CSR Department with a CSR Officer. The“Responsible Care*2 Activity Report” was renamed the “CSR Report” andexpanded to include information about CSR activities at ZEON.
The year 2006, two years into the 3-year plan, was chosen as the time frame
for introducing and implementing CSR throughout the entire ZEON group. To
this end, presentations on the ZEON approach to CSR were conducted in allareas of the Group.
Flexible structures and mechanisms allow us to satisfy the demands andexpectations of shareholders and other stakeholders*3 associated with the
ZEON group, while continuing to contribute to wider society through ourcore areas of business.

Management
8
9
10
12

Message

Management Policy and System
Corporate Philosophy and CSR Strategies
Environment Philosophy and Safety Philosophy
Corporate Governance and Internal Controls
CSR Promotion System

Performance

20
22
23
24
25
26
27
28
29
30
31
32

Site Rreports

Organizations Covered
ZEON and the following subsidiaries and affiliates are included
Japan:ZEON Kasei Co., Ltd. (including the Ibaraki Plant), ZEON Polymix Co., Ltd., Optes Inc., ZEON
Chemicals Yonezawa Co., Ltd., ZEON Logistical Materials Co., Ltd., RIMTEC Corp., Tokyo
Zairyo Co., Ltd., ZEON Environmental Materials Co., Ltd., ZEON Medical Inc., Okayama
Butadiene Co., Ltd.
Overseas: ZEON Chemicals LP. (USA), ZEON Chemicals Europe Ltd. (UK), ZEON Chemicals Thailand
Co., Ltd. (Thailand), ZEON Advanced Polymix Co., Ltd. (Thailand)

Period Covered
April 2006 –to March 2007 (also includes some new information from after April 2007)*1 An abbreviation for "Corporate Social Responsibility”.
*2 Activities in the chemical industry, which involve maintaining voluntary standards for the “environment,

safety and health” in the development of production, logistical, usage (consumption) and disposal
processes for chemical substances. The publication of activity results also attempts to stimulate a
dialogue with the local community and society.
*3 All parties with business interests or concerns associated with the ZEON group.

Head Office (Shin- Marunouchi Center Building)R&D and Plant Activities
R&D Center
Takaoka Plant
Kawasaki Plant
Tokuyama Plant
Mizushima Plant
Affiliate Activities
ZEON Kasei Co., Ltd.
ZEON Polymix Co., Ltd.
Optes Inc.
ZEON Chemicals Yonezawa Co., Ltd.
ZEON Logistical Materials Co., Ltd.
RIMTEC Corp.
ZEON Environmental Materials Co., Ltd.
Tokyo Zairyo Co., Ltd., ZEON Medical Co., Ltd.
Environmental Data
Overseas Affiliate Activities
Third-party Verification

36
38
40
42
44
46
48
49
50
51
52
53
54
55
56
58

3

Site Reports

This activity report was created in line with the following basic policy.
(1) CSR strategies are outlined in “Corporate Mission and CSR Strategies” (page 8)(2) The CSR field and associated functions are described in “CSR Framework” (page 12).
(3) We commission independent verification by the JRCC (Japan Responsible Care Council), in order toreceive an evaluation of ZEON’s activities from a third party.
(4) This activity report is issued annually.

17
19

Performance

Report policy

13
14
16

Management

Social Activity Performance2006 Topics
Relationship with Customers
Relationship with the Local Community and
the General Public
Relationship with Employees
Relationship with Shareholders and Investors
Environmental and Safety Activity Performance
Product Development
Activity Results
Safety and Accident Prevention
Occupational Health and Safety
PRTR Activity
Toxic Chemicals and Waste
Air and Water
Resource and Energy Conservation
Environment and Safety for Logistics
AuditsEnvironmental and Safety Training
Environmental Policy from the Economic Perspective

September 2007

2

4
6

President’s Message
Business Outline

CSR Report

M essage

Message
Introducing the 2007 CSR Report

Table of Contents
Message

The 3-year mid-term management plan known as PZ-3 commenced in 2005.
As part of this program, ZEON acknowledges the importance and necessityof CSR*1 (Corporate Social Responsibility) across the entire Group, and is
working to incorporate CSR principles into all aspects of business
operations.
2005 saw the establishment of a CSR Department with a CSR Officer. The“Responsible Care*2 Activity Report” was renamed the “CSR Report” andexpanded to include information about CSR activities at ZEON.
The year 2006, two years into the 3-year plan, was chosen as the time frame
for introducing and implementing CSR throughout the entire ZEON group. To
this end, presentations on the ZEON approach to CSR were conducted in allareas of the Group.
Flexible structures and mechanisms allow us to satisfy the demands andexpectations of shareholders and other stakeholders*3 associated with the
ZEON group, while continuing to contribute to wider society through ourcore areas of business.

Management
8
9
10
12

Message

Management Policy and System
Corporate Philosophy and CSR Strategies
Environment Philosophy and Safety Philosophy
Corporate Governance and Internal Controls
CSR Promotion System

Performance

20
22
23
24
25
26
27
28
29
30
31
32

Site Rreports

Organizations Covered
ZEON and the following subsidiaries and affiliates are included
Japan:ZEON Kasei Co., Ltd. (including the Ibaraki Plant), ZEON Polymix Co., Ltd., Optes Inc., ZEON
Chemicals Yonezawa Co., Ltd., ZEON Logistical Materials Co., Ltd., RIMTEC Corp., Tokyo
Zairyo Co., Ltd., ZEON Environmental Materials Co., Ltd., ZEON Medical Inc., Okayama
Butadiene Co., Ltd.
Overseas: ZEON Chemicals LP. (USA), ZEON Chemicals Europe Ltd. (UK), ZEON Chemicals Thailand
Co., Ltd. (Thailand), ZEON Advanced Polymix Co., Ltd. (Thailand)

Period Covered
April 2006 –to March 2007 (also includes some new information from after April 2007)*1 An abbreviation for "Corporate Social Responsibility”.
*2 Activities in the chemical industry, which involve maintaining voluntary standards for the “environment,

safety and health” in the development of production, logistical, usage (consumption) and disposal
processes for chemical substances. The publication of activity results also attempts to stimulate a
dialogue with the local community and society.
*3 All parties with business interests or concerns associated with the ZEON group.

Head Office (Shin- Marunouchi Center Building)R&D and Plant Activities
R&D Center
Takaoka Plant
Kawasaki Plant
Tokuyama Plant
Mizushima Plant
Affiliate Activities
ZEON Kasei Co., Ltd.
ZEON Polymix Co., Ltd.
Optes Inc.
ZEON Chemicals Yonezawa Co., Ltd.
ZEON Logistical Materials Co., Ltd.
RIMTEC Corp.
ZEON Environmental Materials Co., Ltd.
Tokyo Zairyo Co., Ltd., ZEON Medical Co., Ltd.
Environmental Data
Overseas Affiliate Activities
Third-party Verification

36
38
40
42
44
46
48
49
50
51
52
53
54
55
56
58

3

Site Reports

This activity report was created in line with the following basic policy.
(1) CSR strategies are outlined in “Corporate Mission and CSR Strategies” (page 8)(2) The CSR field and associated functions are described in “CSR Framework” (page 12).
(3) We commission independent verification by the JRCC (Japan Responsible Care Council), in order toreceive an evaluation of ZEON’s activities from a third party.
(4) This activity report is issued annually.

17
19

Performance

Report policy

13
14
16

Management

Social Activity Performance2006 Topics
Relationship with Customers
Relationship with the Local Community and
the General Public
Relationship with Employees
Relationship with Shareholders and Investors
Environmental and Safety Activity Performance
Product Development
Activity Results
Safety and Accident Prevention
Occupational Health and Safety
PRTR Activity
Toxic Chemicals and Waste
Air and Water
Resource and Energy Conservation
Environment and Safety for Logistics
AuditsEnvironmental and Safety Training
Environmental Policy from the Economic Perspective

September 2007

2

4
6

President’s Message
Business Outline

President’s Message

CSR Repoet

MessageOur corporate name ZEON is an amalgamation of the
Greek words “GEO”(meaning the “EARTH”) and “EON”(meaning “ETERNITY”).
It represents a direct statement of our corporate mission.

CSR initiatives are concentrated in the following three areas.
1. Stringent compliance systems: ZEON has prepared a set of basic guidelines on internal
controls systems in accordance with the provisions of the new Corporate Law.
We have launched an internal reform program that promotes the development andimplementation of flexible procedures and structures designed to enable a rapid responseto changes in the business environment, as well as adherence to all relevant laws andregulations.
An organizational restructuring at the end of June involved the classification of all areas of
the company into eight categories. One of these is CSR, which has responsibility formonitoring and auditing of internal controls over corporate activity.
2. Safe and secure production facilities: We are working to expand our highly successful
responsible care programs to promote ongoing innovation and reform at production
facilities. Our ultimate aim is to create production facilities that make an important
contribution to local communities as well as providing products for our clients.
3. Partnerships with local communities: ZEON is working closely with local communities
through exchange programs, voluntary releases of information and active involvement involunteer initiatives such as local clean-up campaigns.
At ZEON, our aim is to make a lasting contribution to the eternity of the earth and theprosperity of the human race. To this end, we strive to accommodate the needs andexpectations of all stakeholders, including local communities as well as our clients andshareholders.

Management
Performance
Site Reports

4

Message

The management of ZEON made a strong and public
commitment to CSR in 2005. This was reflected in our 3year mid-term management plan (PZ-3) that is currently inprogress.
Under PZ-3, we are continually striving to upgrade
compliance systems, improve the safety and security of
production facilities, and enhance the quality of ourpartnerships with local communities. In our role as asocial organization, we are pursuing the three goals ofagility, dialogue and contribution to society with a view tonurturing both public trust and employee pride in ourcompany.
We believe very strongly that incorporating the principles
of CSR into our business operations is the best way toenhance our true corporate value.
At ZEON, our mission is to make a positive contribution to
the eternity of the earth and the prosperity of the humanrace. This is highly consistent with the fundamental
principles of CSR, and is directly linked to our ongoing
contributions in the areas of environmental conservationand human and social advancement.
The semiconductor etching gas product ZEORORA (winner of the prestigious Stratospheric
Ozone Protection Award in the US) and the low environment risk cyclo olefin polymer
products ZEONEX and ZEONOR are examples of the fruits of our innovative R&D program
predicated on the development of technology that is both unique and non-replicable. ZEON iscommitted to the development of new products with less impact on the environment.

Finally, I would like to take this opportunity to say thank you for reading this report, and wewelcome your opinions and suggestions.

5President’s Message

CSR Repoet

MessageOur corporate name ZEON is an amalgamation of the
Greek words “GEO”(meaning the “EARTH”) and “EON”(meaning “ETERNITY”).
It represents a direct statement of our corporate mission.

CSR initiatives are concentrated in the following three areas.
1. Stringent compliance systems: ZEON has prepared a set of basic guidelines on internal
controls systems in accordance with the provisions of the new Corporate Law.
We have launched an internal reform program that promotes the development andimplementation of flexible procedures and structures designed to enable a rapid responseto changes in the business environment, as well as adherence to all relevant laws andregulations.
An organizational restructuring at the end of June involved the classification of all areas of
the company into eight categories. One of these is CSR, which has responsibility formonitoring and auditing of internal controls over corporate activity.
2. Safe and secure production facilities: We are working to expand our highly successful
responsible care programs to promote ongoing innovation and reform at production
facilities. Our ultimate aim is to create production facilities that make an important
contribution to local communities as well as providing products for our clients.
3. Partnerships with local communities: ZEON is working closely with local communities
through exchange programs, voluntary releases of information and active involvement involunteer initiatives such as local clean-up campaigns.
At ZEON, our aim is to make a lasting contribution to the eternity of the earth and theprosperity of the human race. To this end, we strive to accommodate the needs andexpectations of all stakeholders, including local communities as well as our clients andshareholders.

Management
Performance
Site Reports

4

Message

The management of ZEON made a strong and public
commitment to CSR in 2005. This was reflected in our 3year mid-term management plan (PZ-3) that is currently inprogress.
Under PZ-3, we are continually striving to upgrade
compliance systems, improve the safety and security of
production facilities, and enhance the quality of ourpartnerships with local communities. In our role as asocial organization, we are pursuing the three goals ofagility, dialogue and contribution to society with a view tonurturing both public trust and employee pride in ourcompany.
We believe very strongly that incorporating the principles
of CSR into our business operations is the best way toenhance our true corporate value.
At ZEON, our mission is to make a positive contribution to
the eternity of the earth and the prosperity of the humanrace. This is highly consistent with the fundamental
principles of CSR, and is directly linked to our ongoing
contributions in the areas of environmental conservationand human and social advancement.
The semiconductor etching gas product ZEORORA (winner of the prestigious Stratospheric
Ozone Protection Award in the US) and the low environment risk cyclo olefin polymer
products ZEONEX and ZEONOR are examples of the fruits of our innovative R&D program
predicated on the development of technology that is both unique and non-replicable. ZEON iscommitted to the development of new products with less impact on the environment.

Finally, I would like to take this opportunity to say thank you for reading this report, and wewelcome your opinions and suggestions.

5Business Guide

CSR Report

M essage

ZEON makes an important contribution tosociety with unique technology
Company Profile

ZEON boasts a world-beating range of products including: special synthetic rubber
especially designed for timing belts and other safety-critical components in automobile
engines; green note aroma chemicals (leaf alcohol) for perfumes and food flavors; andenvironmentally-friendly products such as lightweight, transparent cycloolefin polymer
resins and etching gases that do not harm the ozone layer.
At ZEON, we strive for innovative and revolutionary new technology andcontinuous improvement in our core strengths. Our ultimate aim is toestablish a leading presence in society.

Specialty Material
Business

Other Businesses

Sales Share(2006)

Head office

Shin-Marunouchi Center Building, 1-6-2
Marunouchi, Chiyoda-ku,Tokyo 100-8246
Japan
TEL. 03-3216-1772 (Representative)
FAX. 03-3216-0501

Specialty
Materials
Business
16.7%

Elastomer Business

Chemicals
Aroma chemicals, organic synthesis chemicals
Information Materials
Photoresist, etching gas, products related to
toner, binder resin for electromagnetic tape, etc.
Specialty Plastics
Cycloolefin polymers and processed products

Other Businesses
RIM
Combined septic tank, housing equipment components, RIM(Reaction Injection Molding) combination
liquid, construction/farming equipment components,
game console cases, etc.
Medical Devices
Various therapeutic catheters, etc.
OthersVinyl chloride resin (OEM), vinyl chloride compound,licensing of butadiene extraction technology, isoprene
extraction technology, butane-1 extraction technology,
synthetic rubber and latex manufacturing technology,
packaging and distribution materials, housing/architecture materials
Returnable metal
box pallet

Cycloolefin polymer
Raw film
Timing belt usingsynthetic rubber
Gaskets

Gloves usingsynthetic latex

6

Cellular phoneusing specialty
plastics

Perfumes using
aroma chemicals

Construction equipment
exterior covering made by RIM(Reaction Injection Molding)

Medical equipment(IABP balloon)

Hundred million yen

2,800
2,700
2,600
2,500
2,400
2,300
2,200
2,100

Consolidated net sales

,

2,000
1,900
1,800
1,700
1,600

2 133

00

01

02

03

04

05

Year

06

Hundred million yen

320
Operating income, Ordinary income
300
280
268
260
240
200
180
160
298
140
129
120 Operating188
100 income
9280
Ordinary
60
income
77
40
00

01

02

03

04

05

06

Year

7

Site Reports

Synthetic Rubber
Styrene-butadiene rubber, butadiene rubber, isoprenerubber, high-styrene rubber, acrylonitrile-butadiene
rubber, acrylic rubber, epichlorohydrin rubber,hydrogenated nitrile rubber, carbon master batch, etc.
Synthetic Latices
Styrene-butadiene latex, butadiene latex, acrylonitrilebutadiene latex, acrylate latex
Chemical Products
C5 petroleum resin, thermoplastic elastomer SIS,
water-based dispersing agent, epoxy hardener, etc.

Specialty Material Business

Elastomer
Business
62.6%

Performance

Other
Business
20.7%

Management

Elastomer
Business

Description of Elastomer BusinessBusiness
Synthetic rubbers, synthetic latices,chemical products
Specialty Material Business
Fine chemical products, information materials, specialty materials, etc.
Other Businesses
RIM combination liquid/molded item,
medical equipment materials, genetic
recombination vaccine, butadiene
extraction technology, etc.
Vinyl chloride resin manufacturing (OEM),vinyl chloride compounds, packaging anddistribution materials, housing equipment
components, etc.

Message

ZEON's Business Sectors

Company name Nippon Zeon Co., Ltd.
(ZEON CORPORATION)
Established
April 12, 1950
Capital24.2 billion Yen (As of March 31, 2007)
Employees
1,961 (As of March 31, 2007)

Business Guide

CSR Report

M essage

ZEON makes an important contribution tosociety with unique technology
Company Profile

ZEON boasts a world-beating range of products including: special synthetic rubber
especially designed for timing belts and other safety-critical components in automobile
engines; green note aroma chemicals (leaf alcohol) for perfumes and food flavors; andenvironmentally-friendly products such as lightweight, transparent cycloolefin polymer
resins and etching gases that do not harm the ozone layer.
At ZEON, we strive for innovative and revolutionary new technology andcontinuous improvement in our core strengths. Our ultimate aim is toestablish a leading presence in society.

Specialty Material
Business

Other Businesses

Sales Share(2006)

Head office

Shin-Marunouchi Center Building, 1-6-2
Marunouchi, Chiyoda-ku,Tokyo 100-8246
Japan
TEL. 03-3216-1772 (Representative)
FAX. 03-3216-0501

Specialty
Materials
Business
16.7%

Elastomer Business

Chemicals
Aroma chemicals, organic synthesis chemicals
Information Materials
Photoresist, etching gas, products related to
toner, binder resin for electromagnetic tape, etc.
Specialty Plastics
Cycloolefin polymers and processed products

Other Businesses
RIM
Combined septic tank, housing equipment components, RIM(Reaction Injection Molding) combination
liquid, construction/farming equipment components,
game console cases, etc.
Medical Devices
Various therapeutic catheters, etc.
OthersVinyl chloride resin (OEM), vinyl chloride compound,licensing of butadiene extraction technology, isoprene
extraction technology, butane-1 extraction technology,
synthetic rubber and latex manufacturing technology,
packaging and distribution materials, housing/architecture materials
Returnable metal
box pallet

Cycloolefin polymer
Raw film
Timing belt usingsynthetic rubber
Gaskets

Gloves usingsynthetic latex

6

Cellular phoneusing specialty
plastics

Perfumes using
aroma chemicals

Construction equipment
exterior covering made by RIM(Reaction Injection Molding)

Medical equipment(IABP balloon)

Hundred million yen

2,800
2,700
2,600
2,500
2,400
2,300
2,200
2,100

Consolidated net sales

,

2,000
1,900
1,800
1,700
1,600

2 133

00

01

02

03

04

05

Year

06

Hundred million yen

320
Operating income, Ordinary income
300
280
268
260
240
200
180
160
298
140
129
120 Operating188
100 income
9280
Ordinary
60
income
77
40
00

01

02

03

04

05

06

Year

7

Site Reports

Synthetic Rubber
Styrene-butadiene rubber, butadiene rubber, isoprenerubber, high-styrene rubber, acrylonitrile-butadiene
rubber, acrylic rubber, epichlorohydrin rubber,hydrogenated nitrile rubber, carbon master batch, etc.
Synthetic Latices
Styrene-butadiene latex, butadiene latex, acrylonitrilebutadiene latex, acrylate latex
Chemical Products
C5 petroleum resin, thermoplastic elastomer SIS,
water-based dispersing agent, epoxy hardener, etc.

Specialty Material Business

Elastomer
Business
62.6%

Performance

Other
Business
20.7%

Management

Elastomer
Business

Description of Elastomer BusinessBusiness
Synthetic rubbers, synthetic latices,chemical products
Specialty Material Business
Fine chemical products, information materials, specialty materials, etc.
Other Businesses
RIM combination liquid/molded item,
medical equipment materials, genetic
recombination vaccine, butadiene
extraction technology, etc.
Vinyl chloride resin manufacturing (OEM),vinyl chloride compounds, packaging anddistribution materials, housing equipment
components, etc.

Message

ZEON's Business Sectors

Company name Nippon Zeon Co., Ltd.
(ZEON CORPORATION)
Established
April 12, 1950
Capital24.2 billion Yen (As of March 31, 2007)
Employees
1,961 (As of March 31, 2007)

Management Policy and System

CSR Reportte Philosophy andategies

Environment Philosophy and
Safety Philosophy

Management

ontribute to the preservationh and the prosperity of theEnvironment Philosophy and Safety Philosophy

More stringent
compliance Systems
Enhanced compliancetraining programs
Risk prevention systems

Partnerships withlocal communities

Safe and secure
production facilities
Re-accreditation under voluntary
safety accreditation scheme
Investment in environmental
safetyFactory revitalization strategies

Active involvement in local
communities
Advertising in local
Newspapers

Speed

Dialogue

Recognizing our role as asocial organization, we aim
to be a company that istrusted by society and ofwhich its employees canbe proud.

SocialContribution

ZEON’s 7 Articles

the environment and safety.

rs products that satisfy the customers.
s an organization that makes the bestduals.
omes challenges through full particiistributes the benefits fairly.
speed of decision-making and delivery.
8

1.Safety is the foundation of all businessactivities and the greatest priority.
2.Our basic belief regarding safety is that
we can prevent all accidents.
3.Safety will be achieved by performing
the 5Ss and when everyone takes
responsibility for their own actions.
*5s scampaign: Seiri (neatness), Seiton (order),

Seisou (cleanliness), Seiketsu (hygiene), andShitsuke (discipline)

Responsible Care Policy
1.Prioritize the environment and safety

5.Take the environment and safety intoProtecting the environment and ensuringsafety are preconditions for all businessactivities and are the most important priorities.
We will work continuously to enact full
accident prevention countermeasures, andprovide education and training for all employees to prevent safety and environmental
accidents.
2.Collect and distribute the latest
information on chemical products
We will collect, store and manage the latest
information required for the appropriate
handling, use and disposal of chemical
products, and distribute them to employees
and users.
3.Minimize the discharge of toxic
chemicals and waste
We will work to reduce the discharge of toxic
chemicals, minimize waste, and develop
technology for recycling and reusingmaterials.
4.Promote activities for conserving
resources and energy
We will aim to dramatically reduce the amountof energy we use and help alleviate global
warming by developing innovative technology
and actively promoting resource and energy
conservation activities that involve all employees.

account when developing new processes
and products and performing quality
assurance
We will perform thorough environmental andsafety evaluations from the initial stages ofresearch, develop technology and productsthat take the environment and safety into
account, and work to maintain and improve
the quality of technology and products.
6.Live together with society
We will strictly observe regulations related tothe environment and safety, whether the
regulations come from the local community,
the national government, overseas, ororganizations to which we belong. While
cooperating in these activities, we will work toenhance our communication with the local
community and society in order to receive a
better understanding of ZEON's activities andfurther strengthen the trust that society has inour company.
7.Perform continuous improvements
We will continuously improve our environment
safety management and technology by
operating a Responsible Care Audit, theSafety Management System, an Environment
Management System based on ISO14001,
and an Occupational Health and Safety
Management System.
9

Site Reports

ributes to society with innovative

1.Environmental protection is a missionof a socially responsible organization.
2.Our basic belief is that environmental
protection can be achieved with
innovative technology.
3.Environmental protection will beachieved when all employees work
together with a sense of mission to
overcome challenges.

Performanceaces corporate ethics and acts as aonsible organization.

SafetyPhilosophy

Management

The Company as a social organization

CSR Strategies

Environment
Philosophy

Message

Company that is trusted bysociety and of which its
employees can be proud

Management Policy and System

CSR Reportte Philosophy andategies

Environment Philosophy and
Safety Philosophy

Management

ontribute to the preservationh and the prosperity of theEnvironment Philosophy and Safety Philosophy

More stringent
compliance Systems
Enhanced compliancetraining programs
Risk prevention systems

Partnerships withlocal communities

Safe and secure
production facilities
Re-accreditation under voluntary
safety accreditation scheme
Investment in environmental
safetyFactory revitalization strategies

Active involvement in local
communities
Advertising in local
Newspapers

Speed

Dialogue

Recognizing our role as asocial organization, we aim
to be a company that istrusted by society and ofwhich its employees canbe proud.

SocialContribution

ZEON’s 7 Articles

the environment and safety.

rs products that satisfy the customers.
s an organization that makes the bestduals.
omes challenges through full particiistributes the benefits fairly.
speed of decision-making and delivery.
8

1.Safety is the foundation of all businessactivities and the greatest priority.
2.Our basic belief regarding safety is that
we can prevent all accidents.
3.Safety will be achieved by performing
the 5Ss and when everyone takes
responsibility for their own actions.
*5s scampaign: Seiri (neatness), Seiton (order),

Seisou (cleanliness), Seiketsu (hygiene), andShitsuke (discipline)

Responsible Care Policy
1.Prioritize the environment and safety

5.Take the environment and safety intoProtecting the environment and ensuringsafety are preconditions for all businessactivities and are the most important priorities.
We will work continuously to enact full
accident prevention countermeasures, andprovide education and training for all employees to prevent safety and environmental
accidents.
2.Collect and distribute the latest
information on chemical products
We will collect, store and manage the latest
information required for the appropriate
handling, use and disposal of chemical
products, and distribute them to employees
and users.
3.Minimize the discharge of toxic
chemicals and waste
We will work to reduce the discharge of toxic
chemicals, minimize waste, and develop
technology for recycling and reusingmaterials.
4.Promote activities for conserving
resources and energy
We will aim to dramatically reduce the amountof energy we use and help alleviate global
warming by developing innovative technology
and actively promoting resource and energy
conservation activities that involve all employees.

account when developing new processes
and products and performing quality
assurance
We will perform thorough environmental andsafety evaluations from the initial stages ofresearch, develop technology and productsthat take the environment and safety into
account, and work to maintain and improve
the quality of technology and products.
6.Live together with society
We will strictly observe regulations related tothe environment and safety, whether the
regulations come from the local community,
the national government, overseas, ororganizations to which we belong. While
cooperating in these activities, we will work toenhance our communication with the local
community and society in order to receive a
better understanding of ZEON's activities andfurther strengthen the trust that society has inour company.
7.Perform continuous improvements
We will continuously improve our environment
safety management and technology by
operating a Responsible Care Audit, theSafety Management System, an Environment
Management System based on ISO14001,
and an Occupational Health and Safety
Management System.
9

Site Reports

ributes to society with innovative

1.Environmental protection is a missionof a socially responsible organization.
2.Our basic belief is that environmental
protection can be achieved with
innovative technology.
3.Environmental protection will beachieved when all employees work
together with a sense of mission to
overcome challenges.

Performanceaces corporate ethics and acts as aonsible organization.

SafetyPhilosophy

Management

The Company as a social organization

CSR Strategies

Environment
Philosophy

Message

Company that is trusted bysociety and of which its
employees can be proud

Business Policy and System

CSR ReportManagement

Corporate Governance andInternal Controls

Seeking to be a “company trusted by all stakeholders”, we are committed to thoroughly
implementing compliance management.

Our Basic Philosophy Regarding
Corporate Governanceare determined to enhance our corporate governancesystem.
Internal controls system
At a Board meeting on April 28, 2006, before theCompany Law came into force on May 1st of thesame year, our company decided on a “Basic Policy
concerning the Establishment of an Internal Controls
System”.
In order to put this policy into practice, we havecreated a “Corporate Governance and Internal
Controls System” and have been promoting activities
for enhanced compliance and thoroughness in risk
management across the whole of the ZEON group.

Management

Introduction of the operating officers structure
The operating officers group structure was set up on
June 28, 2007 in a bid to improve management
efficiency and speed up executive operations.

We have been working to strengthen ZEON group’s
risk management and compliance system through thecreation and expansion of three committees “theRisk Management Committee”, “the Compliance
Committee”, and “the Anti-trust Compliance Committee” (established under the Risk Management
Conference, which is chaired by the President).
“The Risk Management Committee” is responsible forcontrolling potential risks and handling actual
incidents that occur at the company, as well as
implementing measures to prevent recurrence. The
Committee dealt with such incidents in 2006 andpreventative measures were put in place. The internalreporting system was utilized for some of theseincidents.

“The Compliance Committee” is the body in charge ofeducation, training and auditing activities to prevent
violations of laws and regulations.
The Compliance Committee also helps to raiseawareness of compliance among directors andemployees in the ZEON Group. In 2006, for instance,
directors and employees were tested for comprehension of compliance concepts using an e-learning
software package.
“The Anti-trust Compliance Committee” is a special
committee established to prevent in advance any
breaches of the Antimonopoly Law by executives or
employees of ZEON or the ZEON Group.
In 2006, we performed multiple product pricerevisions due to the rise in the cost of oil, and theAnti-trust Compliance Committee performed a strict
assessment of the revision contents.

MessageOur company focuses on achieving benefits for ourshareholders and other diverse stakeholders. We aim
to increase profits while balancing various interests,
constantly enhancing our corporate value.
To achieve this, we have continued to put effort into
corporate governance, building a system to allow
efficient and healthy corporate management.
In addition, by establishing an internal controls
system, we are clarifying the functions and roles ofeach agency and organization within the company,
enabling speedy decision-making and implementation.
We are also conducting appropriate monitoring andinformation disclosure in respect of the progress andoutcomes of our activities, improving business
transparency.
In order to carry out these functions effectively, weStrengthening the Risk Management
and Compliance System

ZEON Risk Management and Compliance System

Fundamental Principle: Making ZEON a source of pride for all employees“Corporate governance and internal controls diagram”

General meeting of shareholders
Board ofdirectors

Business
auditsAuditors(board)Business
audits

Decisions, supervision(Appointment, dismissal)

Environment
and Safety
PolicyExports
complying
with law

Accounting
audits

Audit
staff

Collaboration

CEO

Environment
PublicSecurity andand Safety
Relations
ExportControl
Promotion
Committee
Committee
Committee

Accounting
auditorReporting

Risk Management
Conference
Anti-trust
Compliance
Committee

Appropriate
information Executive
disclosure Committee

Compliance
Committee

Risk
Management
Committee

Prevention,
ProblemComplianceeducation,
processing,with
Anti-monopoly training, audits preventive
measures
Law

Reporting(internal)

External
lawyerBusiness divisions, related departments, research laboratories, plants
Control, monitoring

Control, monitoring

Control, monitoring

Reporting(internal)

Reporting(external)

Compliance Committee
Compliance Subcommittee(Plant site)
Prevention - Education - Training - Auditing

Anti-trust Compliance
Committee
Anti-monopoly Law Compliance
Regulations

Problem processing
Preventive measures

Reporting
SystemInternal route(1) Supervisor(2) Committee(3) E-mail(4) Public Relations
Department

External route(1) ExternallawyerAnti-monopoly Law Manual

ZEON Constitution Action Guide = Compliance Action Guide(1) Relationship with society (local residents)(2) Relationship with customers and vendors(3) Relationship with shareholders and investors(4) Relationship with employees(5) Relationship with the company and company
assets <Employee Pledge>

ZEON group stakeholders: directors • employees, shareholders, customers etc.
Internal Reporting Flowchart

Informant

Risk Management
Committee

Reception ofreport, recordingof facts,
Reporting ofresults

External lawyer

Investigation offacts, response

Compliance
HOTLINE(Discovery of
risk, discovery ofcompliancebreach)Risk Management Committee
Reporting System andInformant Protection

Supervisor

Subsidiaries, affiliated companies

10

Risk Management
Committee

Site Reports

PL Basic
PolicyCollaboration

Internal
auditsPL
Committee(Dismissal)

Collaboration(assistance)

Audit group

Business implementation andinternal controls system(Appointments,
dismissals)(Appointments,
dismissals)

Decisions, supervision(Appointments, dismissals)

Chairman:

Risk Management Conference President

ZEON Constitution

1. Corporate ethics compliance•Legal compliance•Symbiotic existence with the local
community•Disclosure of proper information at propertime
2. Efforts toward environmental protection
and safety
3. Contribute to society through unique
technologies
4. Supply of safe products
5. •Free and fair competition•Workplace vitality
6. Participation of all employees and a fair
distribution of benefits
7. Emphasis on speed

Performance

Governance system

Report or information

Feedback

A new route for reporting to “the Risk Management Committee was introduced in April 2004 to
improve systems” for detecting hidden “Risks”.
This route, (named the Compliance HOTLINE)and controlled by a reliable external legal office,has been prepared to supplement the internalreporting route that had been establishedpreviously for reporting compliance violations to
the Risk Management Committee. In addition,
procedures and measures to protect anonymity
have been introduced in order for informants tofeel safe when reporting via either route.

11

Business Policy and System

CSR ReportManagement

Corporate Governance andInternal Controls

Seeking to be a “company trusted by all stakeholders”, we are committed to thoroughly
implementing compliance management.

Our Basic Philosophy Regarding
Corporate Governanceare determined to enhance our corporate governancesystem.
Internal controls system
At a Board meeting on April 28, 2006, before theCompany Law came into force on May 1st of thesame year, our company decided on a “Basic Policy
concerning the Establishment of an Internal Controls
System”.
In order to put this policy into practice, we havecreated a “Corporate Governance and Internal
Controls System” and have been promoting activities
for enhanced compliance and thoroughness in risk
management across the whole of the ZEON group.

Management

Introduction of the operating officers structure
The operating officers group structure was set up on
June 28, 2007 in a bid to improve management
efficiency and speed up executive operations.

We have been working to strengthen ZEON group’s
risk management and compliance system through thecreation and expansion of three committees “theRisk Management Committee”, “the Compliance
Committee”, and “the Anti-trust Compliance Committee” (established under the Risk Management
Conference, which is chaired by the President).
“The Risk Management Committee” is responsible forcontrolling potential risks and handling actual
incidents that occur at the company, as well as
implementing measures to prevent recurrence. The
Committee dealt with such incidents in 2006 andpreventative measures were put in place. The internalreporting system was utilized for some of theseincidents.

“The Compliance Committee” is the body in charge ofeducation, training and auditing activities to prevent
violations of laws and regulations.
The Compliance Committee also helps to raiseawareness of compliance among directors andemployees in the ZEON Group. In 2006, for instance,
directors and employees were tested for comprehension of compliance concepts using an e-learning
software package.
“The Anti-trust Compliance Committee” is a special
committee established to prevent in advance any
breaches of the Antimonopoly Law by executives or
employees of ZEON or the ZEON Group.
In 2006, we performed multiple product pricerevisions due to the rise in the cost of oil, and theAnti-trust Compliance Committee performed a strict
assessment of the revision contents.

MessageOur company focuses on achieving benefits for ourshareholders and other diverse stakeholders. We aim
to increase profits while balancing various interests,
constantly enhancing our corporate value.
To achieve this, we have continued to put effort into
corporate governance, building a system to allow
efficient and healthy corporate management.
In addition, by establishing an internal controls
system, we are clarifying the functions and roles ofeach agency and organization within the company,
enabling speedy decision-making and implementation.
We are also conducting appropriate monitoring andinformation disclosure in respect of the progress andoutcomes of our activities, improving business
transparency.
In order to carry out these functions effectively, weStrengthening the Risk Management
and Compliance System

ZEON Risk Management and Compliance System

Fundamental Principle: Making ZEON a source of pride for all employees“Corporate governance and internal controls diagram”

General meeting of shareholders
Board ofdirectors

Business
auditsAuditors(board)Business
audits

Decisions, supervision(Appointment, dismissal)

Environment
and Safety
PolicyExports
complying
with law

Accounting
audits

Audit
staff

Collaboration

CEO

Environment
PublicSecurity andand Safety
Relations
ExportControl
Promotion
Committee
Committee
Committee

Accounting
auditorReporting

Risk Management
Conference
Anti-trust
Compliance
Committee

Appropriate
information Executive
disclosure Committee

Compliance
Committee

Risk
Management
Committee

Prevention,
ProblemComplianceeducation,
processing,with
Anti-monopoly training, audits preventive
measures
Law

Reporting(internal)

External
lawyerBusiness divisions, related departments, research laboratories, plants
Control, monitoring

Control, monitoring

Control, monitoring

Reporting(internal)

Reporting(external)

Compliance Committee
Compliance Subcommittee(Plant site)
Prevention - Education - Training - Auditing

Anti-trust Compliance
Committee
Anti-monopoly Law Compliance
Regulations

Problem processing
Preventive measures

Reporting
SystemInternal route(1) Supervisor(2) Committee(3) E-mail(4) Public Relations
Department

External route(1) ExternallawyerAnti-monopoly Law Manual

ZEON Constitution Action Guide = Compliance Action Guide(1) Relationship with society (local residents)(2) Relationship with customers and vendors(3) Relationship with shareholders and investors(4) Relationship with employees(5) Relationship with the company and company
assets <Employee Pledge>

ZEON group stakeholders: directors • employees, shareholders, customers etc.
Internal Reporting Flowchart

Informant

Risk Management
Committee

Reception ofreport, recordingof facts,
Reporting ofresults

External lawyer

Investigation offacts, response

Compliance
HOTLINE(Discovery of
risk, discovery ofcompliancebreach)Risk Management Committee
Reporting System andInformant Protection

Supervisor

Subsidiaries, affiliated companies

10

Risk Management
Committee

Site Reports

PL Basic
PolicyCollaboration

Internal
auditsPL
Committee(Dismissal)

Collaboration(assistance)

Audit group

Business implementation andinternal controls system(Appointments,
dismissals)(Appointments,
dismissals)

Decisions, supervision(Appointments, dismissals)

Chairman:

Risk Management Conference President

ZEON Constitution

1. Corporate ethics compliance•Legal compliance•Symbiotic existence with the local
community•Disclosure of proper information at propertime
2. Efforts toward environmental protection
and safety
3. Contribute to society through unique
technologies
4. Supply of safe products
5. •Free and fair competition•Workplace vitality
6. Participation of all employees and a fair
distribution of benefits
7. Emphasis on speed

Performance

Governance system

Report or information

Feedback

A new route for reporting to “the Risk Management Committee was introduced in April 2004 to
improve systems” for detecting hidden “Risks”.
This route, (named the Compliance HOTLINE)and controlled by a reliable external legal office,has been prepared to supplement the internalreporting route that had been establishedpreviously for reporting compliance violations to
the Risk Management Committee. In addition,
procedures and measures to protect anonymity
have been introduced in order for informants tofeel safe when reporting via either route.

11

Management Policy and System

CSR Promotion Organization
On June 28, 2007, ZEON introduced a new internal structure consisting of eight categories. Thechange was designed to more clearly define CSR, which is responsible for fulfilling the social
obligations of the company.

CSR Promotion System

President

CSR Department

Business management

Audit section

Business planning

Safety Environmental Affairs Department

Research and development

Quality Assurance Department

Production
Administration

Mizushima and Tokuyama plants regain
qualification for self safety inspection accreditation
ZEON is working to upgrade and enhance high-pressure gas
safety procedures throughout the company
November 2003 saw the Mizushima andTokuyama plants stripped of their accreditation
due to nonconformities and other issues. ZEON
responded by launching a “company-wide
compliance master plan” under the leadership of
the President in a bid to restore its reputation in
the industry. Following a concerted effort by theentire workforce, the production plants were able
to regain qualifications for self safety inspection
accreditation.
Accreditation was previously conducted by thePrefecture, and included annual safety inspections and completion inspections of new
construction work. Today, however, facilities withthe appropriate qualifications are responsible for
their own accreditation evaluation processes.
The Mizushima Plant was accredited in
December 2006, followed by the Tokuyama
Plant in March 2007.
Safety management systems have been coordinated across all production plants to improveconsistency and boost safety levels.

Management

Core business2006 Topics

Message

CSR

Performance

Functional business

Promotion Organization
Risk Management Committee(2/year)Meetings

Environment and Safety
Promotion Meeting (2/year)
Discussions and decisions concerningcompany-wide policy for the environmentand safety, and the items to implement
Chairman: President

Discussions and decisions concerning
fundamental, company-wide items related
to chemical safety and product liability
Chairman: President

Environment
Improvement
Projects

Training session at
Tokuyama Plant

Assessments of issues, planning, reports andproposals related to the environment and safety

Plant Safety and Environment
Meeting (every month)
Discussions and decisions for items related to
the Plant environment and safety

Winner of the City of Kawasaki Urban
Planning Design AwardIn May 2006, the new eight-story R&D building
was completed with financial assistance from
Kanagawa Prefecture. Boasting a total floor

PL Countermeasure Meeting (2/year)
Planning, discussions and reports for specificpolicies and countermeasures related tochemical safety and product liability(1) Reducing the discharge of toxic chemicals(2) Reducing waste and reusing materials(3) Conserving resources and energy

space of 10,000 m2, the new facility will be
used for research geared toward the creation of
next-generation business fields.The new R&D
building has been designed from the outset with
an emphasis on environmental and safety
considerations. The design also incorporates
aesthetic input from the urban planning
regulations.
In November 2006, the R&D building wasawarded the City of Kawasaki Urban Planning
Design Award for design excellence.

Site Reports

PL Meeting (2/year)

Environment and Safety Meeting (4/year)

Performance

Discussions and decisions concerning
progress reports from the three committees (Risk Management, Compliance andAnti-Monopoly)
Chairman: President

Company-wide Audits

Audits12(1) Diagnosis by top management (1/year)
Chairman: President(2) Responsible Care audit (1/year)
Auditor: Employee in charge of environment and safety(3) Operation Department PL audit (1/year)
Auditor: Head of the Quality Assurance Department(4) Voluntary safety audit(5) Special audit by the head of the Safety Environmental
Affairs Department(6) Plant technology audit

Internal Plant Audits(1) Diagnosis by the Plant manager(2) Environment ISO internal audit(3) Quality ISO internal audit
New R&D Building (No. 10 Building)

The Mayor of Kawasaki, Takao Abe
presents the award to Senior Managing
Director Tadao Natsuume13

Management Policy and System

CSR Promotion Organization
On June 28, 2007, ZEON introduced a new internal structure consisting of eight categories. Thechange was designed to more clearly define CSR, which is responsible for fulfilling the social
obligations of the company.

CSR Promotion System

President

CSR Department

Business management

Audit section

Business planning

Safety Environmental Affairs Department

Research and development

Quality Assurance Department

Production
Administration

Mizushima and Tokuyama plants regain
qualification for self safety inspection accreditation
ZEON is working to upgrade and enhance high-pressure gas
safety procedures throughout the company
November 2003 saw the Mizushima andTokuyama plants stripped of their accreditation
due to nonconformities and other issues. ZEON
responded by launching a “company-wide
compliance master plan” under the leadership of
the President in a bid to restore its reputation in
the industry. Following a concerted effort by theentire workforce, the production plants were able
to regain qualifications for self safety inspection
accreditation.
Accreditation was previously conducted by thePrefecture, and included annual safety inspections and completion inspections of new
construction work. Today, however, facilities withthe appropriate qualifications are responsible for
their own accreditation evaluation processes.
The Mizushima Plant was accredited in
December 2006, followed by the Tokuyama
Plant in March 2007.
Safety management systems have been coordinated across all production plants to improveconsistency and boost safety levels.

Management

Core business2006 Topics

Message

CSR

Performance

Functional business

Promotion Organization
Risk Management Committee(2/year)Meetings

Environment and Safety
Promotion Meeting (2/year)
Discussions and decisions concerningcompany-wide policy for the environmentand safety, and the items to implement
Chairman: President

Discussions and decisions concerning
fundamental, company-wide items related
to chemical safety and product liability
Chairman: President

Environment
Improvement
Projects

Training session at
Tokuyama Plant

Assessments of issues, planning, reports andproposals related to the environment and safety

Plant Safety and Environment
Meeting (every month)
Discussions and decisions for items related to
the Plant environment and safety

Winner of the City of Kawasaki Urban
Planning Design AwardIn May 2006, the new eight-story R&D building
was completed with financial assistance from
Kanagawa Prefecture. Boasting a total floor

PL Countermeasure Meeting (2/year)
Planning, discussions and reports for specificpolicies and countermeasures related tochemical safety and product liability(1) Reducing the discharge of toxic chemicals(2) Reducing waste and reusing materials(3) Conserving resources and energy

space of 10,000 m2, the new facility will be
used for research geared toward the creation of
next-generation business fields.The new R&D
building has been designed from the outset with
an emphasis on environmental and safety
considerations. The design also incorporates
aesthetic input from the urban planning
regulations.
In November 2006, the R&D building wasawarded the City of Kawasaki Urban Planning
Design Award for design excellence.

Site Reports

PL Meeting (2/year)

Environment and Safety Meeting (4/year)

Performance

Discussions and decisions concerning
progress reports from the three committees (Risk Management, Compliance andAnti-Monopoly)
Chairman: President

Company-wide Audits

Audits12(1) Diagnosis by top management (1/year)
Chairman: President(2) Responsible Care audit (1/year)
Auditor: Employee in charge of environment and safety(3) Operation Department PL audit (1/year)
Auditor: Head of the Quality Assurance Department(4) Voluntary safety audit(5) Special audit by the head of the Safety Environmental
Affairs Department(6) Plant technology audit

Internal Plant Audits(1) Diagnosis by the Plant manager(2) Environment ISO internal audit(3) Quality ISO internal audit
New R&D Building (No. 10 Building)

The Mayor of Kawasaki, Takao Abe
presents the award to Senior Managing
Director Tadao Natsuume

13

Social Activity Performance

Relationship with Customers
Quality Assurance

Chemical Safety and Product Safety

ZEON delivers products that satisfy the customers : Article 4 of “ZEON's 7
Articles , the principles that form the basic policy at ZEON. We put this article
into practice by providing a stable supply of products that satisfy ourcustomers.

We are making every effort to ensure the safety of products delivered to our customers andchemical substances handled in laboratories & production plants.

Quality management that links production,
sales and technology

Quality Management

Objective

Mechanism for
management
planning & review

Mechanism where the unit manager (plant manager andOperation Department head) evaluate the status of results
in relation to the issues in the organizational layer, identify
for themselves the strategy that can be taken for the next
improvement, and which enables the continuous
improvement of the organization's quality management

Design reviews for thedesign and developmentof products

Product safety is reviewed at every stage from the initialresearch stage to final product sales using our own
checklist to verify the safety of products from various
aspects.

Mechanism forproduct
safety evaluations

Mechanism for evaluating product safety in all stages, fromthe initial stages of research to the sale of the product andfinally to disposal, and for performing a multifaceted safety
check for the product.

Mechanism for
modification
management

Mechanism for establishing rules when modifying aprocess, such as when improving a product, and forpreventing in advance the occurrence of any issues.

Mechanism for
dealing withabnormalities

Mechanism for pinpointing the cause of a processabnormality that occurs in the production equipment, and for
eliminating the quality abnormality by removing the cause
and taking a permanent recurrence countermeasure.

Mechanism for dealing
with complaints

Mechanism for responding quickly and openly to customer
complaints and improving quality by preventing recurrence.

In order to ensure the stable supply to customersof high-quality products, we have constructedvarious quality assurance mechanisms based on
ISO9001:2000, an international standard for quality
management systems.

Status of ISO9001 Acquisition
At ZEON, all four plants and the operation
departments (polymer departments and specialty
materials departments) have already acquired
ISO9001:2000.
At our affiliates, ISO9001 certification registration
has been performed, focusing on the production
departments.
Further, some affiliates have also performed
assessment and registration in combination with
ISO14001 (environment management system) inorder to construct a comprehensive management
system.

Status of ISO9001 Acquisition at the ZEON group

Status of ISO9001 Acquisition at the ZEON
Registration Registration Date of Latest
TargetUpdate or Renewal
No.
Dete
JSAQ012 1994.10 Jul. 2006 (update)
Takaoka Plant
Tokuyama Plant JSAQ013 1994.10 Sep. 2006 (update)
Kawasaki Plant JSAQ016 1995. 1 Nov. 2006 (update)
Mizushima Plant JSAQ046 1995. 6 May. 2007 (update)
Polymer Departments JSAQ432 1999. 2 Feb. 2007 (renewal)
Specialty Materials JSAQ1972 2004. 4 May. 2007 (update)
Departments

TargetRegistration No Registration Date Date of Latest Update or Renewal
2001. 5 May. 2007 (update)
ZEON Kasei Co., Ltd., Ibaraki Plant
JTA-0424
2000. 4 Apr. 2007 (renewal)
ZEON Polymix Co., Ltd.*JSAQ93
2002.12 Dec. 2006 (update)ToyamayPlant JQA-QMA9271
Optes Inc.
2003.12 Dec. 2006 (renewal)
JQA-QMA10869
Sano Plant
2006. 6 Jun. 2007 (renewal)
ZEON Chemicals Yonezawa Co., Ltd.*
03319-A
2000. 7 Jun. 2007 (renewal)
ZEON Logistical Materials Co.,Ltd.
JMZOA-705
2004.10 Sep. 2006 (renewal)
RIMTEC Corporation
JQA-QMA11709
2004.10 Sep.
Tokyoy Zairyoy Co.,Ltd.
p 2006 (renewal)
JQA-QMA11669
ZEON Medical Co.,Ltd.**
p 2007 ((renewal))
SY 50041053 0001 2004. 4 Apr.
2000. 4 Mar. 2007 (renewal)
ZEON Chemicals (ZCLP)()()
CERT-01747
1989. 6 May.y & Nov. 2007 (renewal)
ZEON Chemicals Europep ((ZCEL))()
FM01982
2003. 9 Jun. 2007 (renewal)
ZEON Chemicals Thailand CO., Ltd. (ZCT)C2003-02279
2004. 2 Dec. 2006 (renewal)
ZEON Advanced Polymix
y Co., Ltd. (ZAP)( )()
149044* Assessment and registration combined with ISO14001** Assessment and registration is included in ISO13485 (quality management standard for thedesign, development, production and sales of medical equipment)

the long-term issues related to the impacts thatchemicals may have on the health of human and theenvironment.

(3)Far East subcommittee of IISRP (developing
strategies to reduce the environmental impact
of synthetic rubbers)*IISRP: International Institute of Synthetic Rubber

Japanese Government and industry for collecting the

Producers

Domestic and International
Chemical Regulations*RoHS Directive: Restriction of the use of certain

In response to the new EU RoHS directive effective
July 1 2006 and the introduction of mandatorylabeling for designated chemical substances under
the Law for Promotion of Effective Utilization of
Resources (J-Moss) in Japan,
We are delivering products that are compliant withthe maximum content limits on heavy metals such as
cadmium, lead, mercury and hexavalent chromium,as well as designated toxic chemicals such as
bromine-based flame retardants.
Meanwhile, the new EU chemicals policy REACH
was adopted in December 2006 and came into effecton June 1, 2007.
The EU legislation places considerable emphasis on
the information flow within the supply chain, which
has an enormous impact outside the EU.
ZEON is a member of JAMP and is actively involved
in initiatives designed to enhance the accuracy ofchemical safety information in the supply chain.

Hazardous Substances*J-Moss: The marking for presence of the specificchemical substances for electrical and electronicequipment(JIS C 0952)*REACH policy: The Registration, Evaluation, Authorisation and Restriction of Cemicals*JAMP: the Japan Article Management Promotion
consortium
A consortium of upstream and downstream manufacturers of input materials, components and finishedproducts dedicated to creating concrete frameworks forthe administration and disclosure of product chemical
content information

Following the introduction of GHS labeling anddocument exchange requirements for designatedchemicals from December 2006 under amendments to
the Occupational Health and Safety Law, ZEON has
modified labeling on products and test specimens
listed in the legislation.
*GHS: Global Harmonization System of Classificationand Labeling of Chemicals

Other Efforts for Chemicals andProduct Safety
Implementation of Product Safety Review
Product safety is reviewed at every stage from theinitial research stage to final product sales using ourown checklist to verify the safety of products fromvarious aspects.
MSDS Publication
Information regarding product safety is supplied tocustomers by MSDS (Material Safety Data Sheet).
MSDSs have been published for all products and a
portion of waste materials, even for materials notcontaining any hazardous substance (Reporting isrequired by Occupational Health and Safety Act,PRTR Law, or Poisonous and Deleterious SubstanceControl Law).

MSDS

Education on Chemical Product Safety
Education on chemical product safety such as
application procedure of new chemical substances
and worldwide trend of chemical regulation has beenpromoted.
We have provided in-house training on GHS andcompliance with the new GHS labeling and document
exchange requirements for designated chemicals
introduced in December 2006 under amendments to
the Occupational Health and Safety Law.
15

Site Reports

Mechanism for identifying the issues at each organizational
layer based on the President's policy, and then carrying out
the required countermeasures.

existing High Production Volume chemical substances*Japan Challenge Program: A joint initiative of the(2) LRI (supporting R&D toxicity evaluation)*LRI: Long-range Research Initiative, the research on

Performance

Mechanism fordeveloping policy

Quality Assurance Mechanisms

We are actively involved in the following researchand evaluation programs on hazardous chemical
substances and safety evaluations, including support
through ongoing funding and data sharing.
(1) HPV Initiative•A consortium of companies producing hydrocarbon solvents in association with European andAmerican counterparts (HSJP)•Japan Challenge Program*HPV Initiative: An initiative for hazard assessment ofsafety information on existing high production volume
chemical substances*HSJP: Hydrocarbon Solvent Japan Panel, the domestic panel of the International Hydrocarbon Solvent
Consortium (IHSC)Management

Mechanism

World-wide Activities for Product Safety
Review of Chemical Substances

Message

We are working to strengthen the links between theplants, Operation Department and research units
Plants(R&D Center) in order to improve quality(production)
management on a company-wide basis andcreate an integrated organization for producAssess current conditions
Common view between plantstion, sales and technology.
Planning improvements and
The Quality Assurance Department continues tomodifications
maintain close communication with the quality
Quality Assurance
assurance units at the plants in order to solve
any issues that arise at the plants.
Department
On-site training
The Quality Assurance Department investigates
Assess issues
Strengthen the building-in of quality
the causes of defects and evaluates counterImprovement activities
in design and development
measures at production facilities, working toresolve issues from the client perspective.
R&D Center
Operation Departmen
Our aim is to eliminate customer complaints(R&D)(sales, technology)
completely by reducing process errors (which are
directly related to complaints) at all production
facilities in the group.
Main mechanisms supporting quality assurance at ZEON14

CSR Report

Performance

Social Activity Performance

Relationship with Customers
Quality Assurance

Chemical Safety and Product Safety

ZEON delivers products that satisfy the customers : Article 4 of “ZEON's 7
Articles , the principles that form the basic policy at ZEON. We put this article
into practice by providing a stable supply of products that satisfy ourcustomers.

We are making every effort to ensure the safety of products delivered to our customers andchemical substances handled in laboratories & production plants.

Quality management that links production,
sales and technology

Quality Management

Objective

Mechanism for
management
planning & review

Mechanism where the unit manager (plant manager andOperation Department head) evaluate the status of results
in relation to the issues in the organizational layer, identify
for themselves the strategy that can be taken for the next
improvement, and which enables the continuous
improvement of the organization's quality management

Design reviews for thedesign and developmentof products

Product safety is reviewed at every stage from the initialresearch stage to final product sales using our own
checklist to verify the safety of products from various
aspects.

Mechanism forproduct
safety evaluations

Mechanism for evaluating product safety in all stages, fromthe initial stages of research to the sale of the product andfinally to disposal, and for performing a multifaceted safety
check for the product.

Mechanism for
modification
management

Mechanism for establishing rules when modifying aprocess, such as when improving a product, and forpreventing in advance the occurrence of any issues.

Mechanism for
dealing withabnormalities

Mechanism for pinpointing the cause of a processabnormality that occurs in the production equipment, and for
eliminating the quality abnormality by removing the cause
and taking a permanent recurrence countermeasure.

Mechanism for dealing
with complaints

Mechanism for responding quickly and openly to customer
complaints and improving quality by preventing recurrence.

In order to ensure the stable supply to customersof high-quality products, we have constructedvarious quality assurance mechanisms based on
ISO9001:2000, an international standard for quality
management systems.

Status of ISO9001 Acquisition
At ZEON, all four plants and the operation
departments (polymer departments and specialty
materials departments) have already acquired
ISO9001:2000.
At our affiliates, ISO9001 certification registration
has been performed, focusing on the production
departments.
Further, some affiliates have also performed
assessment and registration in combination with
ISO14001 (environment management system) inorder to construct a comprehensive management
system.

Status of ISO9001 Acquisition at the ZEON group

Status of ISO9001 Acquisition at the ZEON
Registration Registration Date of Latest
TargetUpdate or Renewal
No.
Dete
JSAQ012 1994.10 Jul. 2006 (update)
Takaoka Plant
Tokuyama Plant JSAQ013 1994.10 Sep. 2006 (update)
Kawasaki Plant JSAQ016 1995. 1 Nov. 2006 (update)
Mizushima Plant JSAQ046 1995. 6 May. 2007 (update)
Polymer Departments JSAQ432 1999. 2 Feb. 2007 (renewal)
Specialty Materials JSAQ1972 2004. 4 May. 2007 (update)
Departments

TargetRegistration No Registration Date Date of Latest Update or Renewal
2001. 5 May. 2007 (update)
ZEON Kasei Co., Ltd., Ibaraki Plant
JTA-0424
2000. 4 Apr. 2007 (renewal)
ZEON Polymix Co., Ltd.*JSAQ93
2002.12 Dec. 2006 (update)ToyamayPlant JQA-QMA9271
Optes Inc.
2003.12 Dec. 2006 (renewal)
JQA-QMA10869
Sano Plant
2006. 6 Jun. 2007 (renewal)
ZEON Chemicals Yonezawa Co., Ltd.*
03319-A
2000. 7 Jun. 2007 (renewal)
ZEON Logistical Materials Co.,Ltd.
JMZOA-705
2004.10 Sep. 2006 (renewal)
RIMTEC Corporation
JQA-QMA11709
2004.10 Sep.
Tokyoy Zairyoy Co.,Ltd.
p 2006 (renewal)
JQA-QMA11669
ZEON Medical Co.,Ltd.**
p 2007 ((renewal))
SY 50041053 0001 2004. 4 Apr.
2000. 4 Mar. 2007 (renewal)
ZEON Chemicals (ZCLP)()()
CERT-01747
1989. 6 May.y & Nov. 2007 (renewal)
ZEON Chemicals Europep ((ZCEL))()
FM01982
2003. 9 Jun. 2007 (renewal)
ZEON Chemicals Thailand CO., Ltd. (ZCT)C2003-02279
2004. 2 Dec. 2006 (renewal)
ZEON Advanced Polymix
y Co., Ltd. (ZAP)( )()
149044* Assessment and registration combined with ISO14001** Assessment and registration is included in ISO13485 (quality management standard for thedesign, development, production and sales of medical equipment)

the long-term issues related to the impacts thatchemicals may have on the health of human and theenvironment.

(3)Far East subcommittee of IISRP (developing
strategies to reduce the environmental impact
of synthetic rubbers)*IISRP: International Institute of Synthetic Rubber

Japanese Government and industry for collecting the

Producers

Domestic and International
Chemical Regulations*RoHS Directive: Restriction of the use of certain

In response to the new EU RoHS directive effective
July 1 2006 and the introduction of mandatorylabeling for designated chemical substances under
the Law for Promotion of Effective Utilization of
Resources (J-Moss) in Japan,
We are delivering products that are compliant withthe maximum content limits on heavy metals such as
cadmium, lead, mercury and hexavalent chromium,as well as designated toxic chemicals such as
bromine-based flame retardants.
Meanwhile, the new EU chemicals policy REACH
was adopted in December 2006 and came into effecton June 1, 2007.
The EU legislation places considerable emphasis on
the information flow within the supply chain, which
has an enormous impact outside the EU.
ZEON is a member of JAMP and is actively involved
in initiatives designed to enhance the accuracy ofchemical safety information in the supply chain.

Hazardous Substances*J-Moss: The marking for presence of the specificchemical substances for electrical and electronicequipment(JIS C 0952)*REACH policy: The Registration, Evaluation, Authorisation and Restriction of Cemicals*JAMP: the Japan Article Management Promotion
consortium
A consortium of upstream and downstream manufacturers of input materials, components and finishedproducts dedicated to creating concrete frameworks forthe administration and disclosure of product chemical
content information

Following the introduction of GHS labeling anddocument exchange requirements for designatedchemicals from December 2006 under amendments to
the Occupational Health and Safety Law, ZEON has
modified labeling on products and test specimens
listed in the legislation.
*GHS: Global Harmonization System of Classificationand Labeling of Chemicals

Other Efforts for Chemicals andProduct Safety
Implementation of Product Safety Review
Product safety is reviewed at every stage from theinitial research stage to final product sales using ourown checklist to verify the safety of products fromvarious aspects.
MSDS Publication
Information regarding product safety is supplied tocustomers by MSDS (Material Safety Data Sheet).
MSDSs have been published for all products and a
portion of waste materials, even for materials notcontaining any hazardous substance (Reporting isrequired by Occupational Health and Safety Act,PRTR Law, or Poisonous and Deleterious SubstanceControl Law).

MSDS

Education on Chemical Product Safety
Education on chemical product safety such as
application procedure of new chemical substances
and worldwide trend of chemical regulation has beenpromoted.
We have provided in-house training on GHS andcompliance with the new GHS labeling and document
exchange requirements for designated chemicals
introduced in December 2006 under amendments to
the Occupational Health and Safety Law.
15

Site Reports

Mechanism for identifying the issues at each organizational
layer based on the President's policy, and then carrying out
the required countermeasures.

existing High Production Volume chemical substances*Japan Challenge Program: A joint initiative of the(2) LRI (supporting R&D toxicity evaluation)*LRI: Long-range Research Initiative, the research on

Performance

Mechanism fordeveloping policy

Quality Assurance Mechanisms

We are actively involved in the following researchand evaluation programs on hazardous chemical
substances and safety evaluations, including support
through ongoing funding and data sharing.
(1) HPV Initiative•A consortium of companies producing hydrocarbon solvents in association with European andAmerican counterparts (HSJP)•Japan Challenge Program*HPV Initiative: An initiative for hazard assessment ofsafety information on existing high production volume
chemical substances*HSJP: Hydrocarbon Solvent Japan Panel, the domestic panel of the International Hydrocarbon Solvent
Consortium (IHSC)Management

Mechanism

World-wide Activities for Product Safety
Review of Chemical Substances

Message

We are working to strengthen the links between theplants, Operation Department and research units
Plants(R&D Center) in order to improve quality(production)
management on a company-wide basis andcreate an integrated organization for producAssess current conditions
Common view between plantstion, sales and technology.
Planning improvements and
The Quality Assurance Department continues tomodifications
maintain close communication with the quality
Quality Assurance
assurance units at the plants in order to solve
any issues that arise at the plants.
Department
On-site training
The Quality Assurance Department investigates
Assess issues
Strengthen the building-in of quality
the causes of defects and evaluates counterImprovement activities
in design and development
measures at production facilities, working toresolve issues from the client perspective.
R&D Center
Operation Departmen
Our aim is to eliminate customer complaints(R&D)(sales, technology)
completely by reducing process errors (which are
directly related to complaints) at all production
facilities in the group.
Main mechanisms supporting quality assurance at ZEON14

CSR Report

Performance

Social Activity Performance

CSR Report

Relationship with the Local
Community

Our relationship with the local community is also described in the site reports “Living together with thelocal community” on page 35 onwards.

Television appearances

As part of the centenary anniversary celebrations at
Tohoku University in 2007, ZEON exhibited phasedifference films and diffuser panels at a “large-screen
LCD television” exhibition staged in March 2007 by
the New IT Industry Creation Division of the New
Industry Creation Hatchery Center (NICHe), a joint
university-industry initiative of Tohoku University.

ZEON´s exhibit at NICHe

Responsible Care and Community
DialogueAt ZEON, we believe that a truly competitive
company is the sum of the skills of its employees. To
this end, the corporate environment is designed tomotivate and inspire employees to rise to newchallenges while pursuing continuous improvement
through innovation, predicated on clearly enunciatedduties and outcomes for every individual coupledwith equitable remuneration for the achievement of
expected outcomes.
The company is committed to rewarding innovative
practices that generate added value and maintaining
fair and equitable distribution of opportunities andoutcomes.
Fair performance assessment procedures
All employees are subject to performance assessment
through a goal-oriented evaluation process predicated on fair and equitable evaluation of individual
outcomes and achievements together with positive
encouragement for personal development andimprovement.
Details of the performance assessment process arefreely available to all employees, and evaluation
discussion meetings are held in all departments anddivisions at the start and end of every accounting
period. These initiatives are designed to ensure
fairness and equity from multiple perspectives. In
addition, individual employees are provided withdirect feedback on the results of their evaluation.
Merit-based bonuses
The merit-based bonus system at ZEON uses a clearly
defined formula of targets versus achievements toensure fair and equitable sharing of benefits among
all employees. The bonus system considers
achievement at three levels - by the individual, by thedepartment/division and by the company as a whole and is designed to promote a collective sense of
purpose in working towards challenging targets.
Awards system the ZEON Challenge Award
Awards schemes include Employee of the Month

Okayama Community Dialog

Yamaguchi East Community Dialog

16

FY2006 recipientsof the President’sAward(bestowed by department managers on a monthly
basis) and the annual President's Award, whereby
individual employees and departments nominate
specific challenge at the start of the year and are
judged on their progress in the nominated area.
The selection process emphasizes individual
achievement, in terms of identifying employees whomake an outstanding contribution to the company.
The annual presentation of the annual President's
Award involves a lavish ceremony and dinner
function.
The event always includes surprises - for example, thefamilies of the winners are invited to attend,
unbeknownst to the winners themselves. It provides
an important opportunity to celebrate theirachievements while looking forward to the challengesof the coming year.

Promoting dialogue and improving
the workplace environment
ZEON has led the industry in introducing workplace
initiatives predicated on the key concepts of“Reliability”, “Motivation”, “Achievement”, “Security”
and confidence. The company also provides a rangeof employee health and welfare programs including“Better Workplace Environments”, “Promoting
Dialogue”, “Improve Your Health” and “Supporting
Self-Reliance Based on Life Plan”.
The “Promoting Dialogue” program encompasses all
forms of dialogue including dialogue between
management and workers, dialogue between thecompany and workplaces, and inter-workplacedialogue (also known as communication). The aim is
to break down the barriers between organizations andensure that the entire workforce is pulling in the same
direction. In this way, we can make the company asource of pride and inspiration for employees.
Discretionary work hours scheme
In recognition of the diversification of living andworking patterns, ZEON has introduced initiatives
designed to allow employees a greater degree ofchoice in “working arrangements”. “A discretionary
work hours scheme for employees” engaged in R&D
was introduced in April 2000.
This was followed by a similar scheme for employees
involved in planning and development work, launchedin November 2005.
Child care and nursing care support schemes
ZEON provides support for employees balancing
work and family commitments in the form of paidchild care leave (conditions apply).
Employees who take advantage of child care andnursing care leave are eligible for special support
subsidies.
17

Site Reports

The 5th Responsible Care Regional Dialog in
Yamaguchi East was held in September 2006.
Management of the community dialog event, held
every two years, is shared on a rotating basis among
16 companies that own production facilities in the
Shunan industrial complex with 5 organizing
companies.
The Tokuyama Plant acted as an organizer for themost recent community dialogue, which attracted
some 166 people including local and national
government, industry bodies and education

authorities.
In November 2006, the Mizushima Plant organized
the Responsible Care Dialogue for the Okayama
region, which witnessed a lively discussion among
130 people including the government and companies
members as well as various other interested parties.

Encouraging employees to take up newchallenges and achieve their goals

Performance

Sawa (see page 53) appeared on the Okayama
television program “I Love Café” to talk about
ZEON’s water-saving products such as the combined
kitchen and toilet sewage treatment system.

ZEON strives to be a company that inspires pride in each and every employee
We strives to be a company as well as a trusted presence in the community and inspires pridein every employee. To this end, the company pursues the three key goals of “Speed”, “Dialogue”
and “Social Contribution” in line with the ZEON`s 7 articles, particularly article 5 (Utilizing thestrengths and abilities of the individual within the organization) and article 6 (Working together
as a team and sharing the benefits fairly).

Management

Television interview

Relationship with Employees

Message

In February 2007, President Furukawa made a
special appearance on the Toyama Television
program The Good Life to thank the local community
following the 50th anniversary of the Takaoka Plant
in 2006. He also spoke of the mission to “makeToyama a leading international production hub” andextolled the virtues of “working at ZEON”.
Meanwhile, ZEON Environmental Materials president

Joint initiatives with universities

Performance

Social Activity Performance

CSR Report

Relationship with the Local
Community

Our relationship with the local community is also described in the site reports “Living together with thelocal community” on page 35 onwards.

Television appearances

As part of the centenary anniversary celebrations at
Tohoku University in 2007, ZEON exhibited phasedifference films and diffuser panels at a “large-screen
LCD television” exhibition staged in March 2007 by
the New IT Industry Creation Division of the New
Industry Creation Hatchery Center (NICHe), a joint
university-industry initiative of Tohoku University.

ZEON´s exhibit at NICHe

Responsible Care and Community
DialogueAt ZEON, we believe that a truly competitive
company is the sum of the skills of its employees. To
this end, the corporate environment is designed tomotivate and inspire employees to rise to newchallenges while pursuing continuous improvement
through innovation, predicated on clearly enunciatedduties and outcomes for every individual coupledwith equitable remuneration for the achievement of
expected outcomes.
The company is committed to rewarding innovative
practices that generate added value and maintaining
fair and equitable distribution of opportunities andoutcomes.
Fair performance assessment procedures
All employees are subject to performance assessment
through a goal-oriented evaluation process predicated on fair and equitable evaluation of individual
outcomes and achievements together with positive
encouragement for personal development andimprovement.
Details of the performance assessment process arefreely available to all employees, and evaluation
discussion meetings are held in all departments anddivisions at the start and end of every accounting
period. These initiatives are designed to ensure
fairness and equity from multiple perspectives. In
addition, individual employees are provided withdirect feedback on the results of their evaluation.
Merit-based bonuses
The merit-based bonus system at ZEON uses a clearly
defined formula of targets versus achievements toensure fair and equitable sharing of benefits among
all employees. The bonus system considers
achievement at three levels - by the individual, by thedepartment/division and by the company as a whole and is designed to promote a collective sense of
purpose in working towards challenging targets.
Awards system the ZEON Challenge Award
Awards schemes include Employee of the Month

Okayama Community Dialog

Yamaguchi East Community Dialog

16

FY2006 recipientsof the President’sAward(bestowed by department managers on a monthly
basis) and the annual President's Award, whereby
individual employees and departments nominate
specific challenge at the start of the year and are
judged on their progress in the nominated area.
The selection process emphasizes individual
achievement, in terms of identifying employees whomake an outstanding contribution to the company.
The annual presentation of the annual President's
Award involves a lavish ceremony and dinner
function.
The event always includes surprises - for example, thefamilies of the winners are invited to attend,
unbeknownst to the winners themselves. It provides
an important opportunity to celebrate theirachievements while looking forward to the challengesof the coming year.

Promoting dialogue and improving
the workplace environment
ZEON has led the industry in introducing workplace
initiatives predicated on the key concepts of“Reliability”, “Motivation”, “Achievement”, “Security”
and confidence. The company also provides a rangeof employee health and welfare programs including“Better Workplace Environments”, “Promoting
Dialogue”, “Improve Your Health” and “Supporting
Self-Reliance Based on Life Plan”.
The “Promoting Dialogue” program encompasses all
forms of dialogue including dialogue between
management and workers, dialogue between thecompany and workplaces, and inter-workplacedialogue (also known as communication). The aim is
to break down the barriers between organizations andensure that the entire workforce is pulling in the same
direction. In this way, we can make the company asource of pride and inspiration for employees.
Discretionary work hours scheme
In recognition of the diversification of living andworking patterns, ZEON has introduced initiatives
designed to allow employees a greater degree ofchoice in “working arrangements”. “A discretionary
work hours scheme for employees” engaged in R&D
was introduced in April 2000.
This was followed by a similar scheme for employees
involved in planning and development work, launchedin November 2005.
Child care and nursing care support schemes
ZEON provides support for employees balancing
work and family commitments in the form of paidchild care leave (conditions apply).
Employees who take advantage of child care andnursing care leave are eligible for special support
subsidies.
17

Site Reports

The 5th Responsible Care Regional Dialog in
Yamaguchi East was held in September 2006.
Management of the community dialog event, held
every two years, is shared on a rotating basis among
16 companies that own production facilities in the
Shunan industrial complex with 5 organizing
companies.
The Tokuyama Plant acted as an organizer for themost recent community dialogue, which attracted
some 166 people including local and national
government, industry bodies and education

authorities.
In November 2006, the Mizushima Plant organized
the Responsible Care Dialogue for the Okayama
region, which witnessed a lively discussion among
130 people including the government and companies
members as well as various other interested parties.

Encouraging employees to take up newchallenges and achieve their goals

Performance

Sawa (see page 53) appeared on the Okayama
television program “I Love Café” to talk about
ZEON’s water-saving products such as the combined
kitchen and toilet sewage treatment system.

ZEON strives to be a company that inspires pride in each and every employee
We strives to be a company as well as a trusted presence in the community and inspires pridein every employee. To this end, the company pursues the three key goals of “Speed”, “Dialogue”
and “Social Contribution” in line with the ZEON`s 7 articles, particularly article 5 (Utilizing thestrengths and abilities of the individual within the organization) and article 6 (Working together
as a team and sharing the benefits fairly).

Management

Television interview

Relationship with Employees

Message

In February 2007, President Furukawa made a
special appearance on the Toyama Television
program The Good Life to thank the local community
following the 50th anniversary of the Takaoka Plant
in 2006. He also spoke of the mission to “makeToyama a leading international production hub” andextolled the virtues of “working at ZEON”.
Meanwhile, ZEON Environmental Materials president

Joint initiatives with universities

Performance

Social Activity Performance

CSR Report

Performance

Relationship with Employees

Hits on our home page are steadily increasing
following the establishment of the [Site for Individual
Investors] in fiscal 2005.
In recognition of the fact that timely communicationof information to shareholders and investors isincreasingly important, we are focusing on IR
activities.

Recruitment of female employees
For working women, bearing children and raisingthem while holding down a job are very important
issues.
As the result of our yearly expansion of the nextgeneration child-rearing assistance system, thenumber of workers who take up the system is on theincrease.
In fiscal 2006, 100% of female employees who gavebirth also took child-care leave. The rate of employees
resuming work after child-care leave is currently atleast 80%.
These advantages are furthering the recruitment offemale employees.

Communication with corporate investors andanalysts
We are responding positively to visits and media
coverage by corporate investors and analysts fromboth within Japan and abroad.
At the briefing sessions for analysts held mid-term
and at the settlement period, in addition to an
explanation of final accounts, the head ofmanagement is reporting on progress in the 3-year
medium-term management plan PZ-3 that we are
currently tackling with the aim of “Realize dramatic
progress” and “Improve corporate value”.

[Web] Investor Relations - 3-Year Medium-Term
Management Plan
http://www.zeon.co.jp/ir/pz3.html

ZEON Master system
In fiscal 2006, we introduced a retired worker
reemployment system, and many veteran employees
are active in various workplaces.
As of July 1, 2006, 86 (70%) of our 123 retired workers
have been reemployed.
Career design training
In addition to traditional training and development,
we are conducting career design training courses for
employees aged 30, 40, 50 or 57 as part of humanresource development and training aimed at selfreliance and self-fulfillment by the individual.
Each individual is making gradual but steady progressby depicting future images of work and personal life,
establishing future objectives, forming the objectives
into an implementation plan, and undertaking regularpost-course follow-up training in line with theindividual's ability and aptitude and based on theindividual's own values and awareness of issues.

Introduction to products following
the annual shareholders' meeting

Operation of a site for individual investors
The site for individual investors not only shows upto-date final accounts information in [Latest Final
Accounts Information] but also shows in graph form
the transition in business performance over the past
five years under [Business Performance Highlights] in[About ZEON]. It also contains a video giving a brief
15-minute introduction to the company.

Site Reports

Head office dialogue promotion(coastal dragline fishing)

We aim at a workplace that enables a diverse range ofhuman resources to participate actively regardless ofgender and even after the retirement age.
We also assist each employee to work actively toward
his or her goal.

Communication with shareholders
To make it easier for shareholders to understand ourbusiness, on the day of the fixed general meeting we
exhibit and showcase a display panel along withcommercial products and models that use ourmanufactured goods.
We provide video on our home page showing
progress on the 3-year medium-term management
plan [PZ-3] explained at the briefing sessions foranalysts.

[Web] Site for Individual
Investorshttp://www.zeon.co.jp/kojinir/index.html

Career design training course (group discussion)

18

Performance

Dialogue planning
We hold dialogue promotions at each office andworkplace aimed at all employees with the goal of
creating a culture of mutual regard and improving
situated empowerment. We are thus creating anenvironment in which employees can interact freely
and openly with one another.

Relations with Shareholders andInvestors

Management

Dialogue with management level
Importance is attached to dialogue between
management and employees at, for example, theannual policy meeting held by the president himself
at the head office and other offices, audits by thepresident together with management level, andresearch hearings.
After the president's audit and research hearings, we
promote even deeper interaction over drinks.

“Human Resources” Utilization
Policy that gives Consideration toEach Individual's Career

Message

Rent subsidy system and home ownershipallowance
In response to employees' diverse needs, we have put
effort into expanding the housing assistance system.
In addition to conventional assistance such ascompany-owned dormitories and corporate housing,
we have introduced a rent subsidy system and ahome ownership allowance.

Relationship with Shareholders
and Investors

19Social Activity Performance

CSR Report

Performance

Relationship with Employees

Hits on our home page are steadily increasing
following the establishment of the [Site for Individual
Investors] in fiscal 2005.
In recognition of the fact that timely communicationof information to shareholders and investors isincreasingly important, we are focusing on IR
activities.

Recruitment of female employees
For working women, bearing children and raisingthem while holding down a job are very important
issues.
As the result of our yearly expansion of the nextgeneration child-rearing assistance system, thenumber of workers who take up the system is on theincrease.
In fiscal 2006, 100% of female employees who gavebirth also took child-care leave. The rate of employees
resuming work after child-care leave is currently atleast 80%.
These advantages are furthering the recruitment offemale employees.

Communication with corporate investors andanalysts
We are responding positively to visits and media
coverage by corporate investors and analysts fromboth within Japan and abroad.
At the briefing sessions for analysts held mid-term
and at the settlement period, in addition to an
explanation of final accounts, the head ofmanagement is reporting on progress in the 3-year
medium-term management plan PZ-3 that we are
currently tackling with the aim of “Realize dramatic
progress” and “Improve corporate value”.

[Web] Investor Relations - 3-Year Medium-Term
Management Plan
http://www.zeon.co.jp/ir/pz3.html

ZEON Master system
In fiscal 2006, we introduced a retired worker
reemployment system, and many veteran employees
are active in various workplaces.
As of July 1, 2006, 86 (70%) of our 123 retired workers
have been reemployed.
Career design training
In addition to traditional training and development,
we are conducting career design training courses for
employees aged 30, 40, 50 or 57 as part of humanresource development and training aimed at selfreliance and self-fulfillment by the individual.
Each individual is making gradual but steady progressby depicting future images of work and personal life,
establishing future objectives, forming the objectives
into an implementation plan, and undertaking regularpost-course follow-up training in line with theindividual's ability and aptitude and based on theindividual's own values and awareness of issues.

Introduction to products following
the annual shareholders' meeting

Operation of a site for individual investors
The site for individual investors not only shows upto-date final accounts information in [Latest Final
Accounts Information] but also shows in graph form
the transition in business performance over the past
five years under [Business Performance Highlights] in[About ZEON]. It also contains a video giving a brief
15-minute introduction to the company.

Site Reports

Head office dialogue promotion(coastal dragline fishing)

We aim at a workplace that enables a diverse range ofhuman resources to participate actively regardless ofgender and even after the retirement age.
We also assist each employee to work actively toward
his or her goal.

Communication with shareholders
To make it easier for shareholders to understand ourbusiness, on the day of the fixed general meeting we
exhibit and showcase a display panel along withcommercial products and models that use ourmanufactured goods.
We provide video on our home page showing
progress on the 3-year medium-term management
plan [PZ-3] explained at the briefing sessions foranalysts.

[Web] Site for Individual
Investorshttp://www.zeon.co.jp/kojinir/index.html

Career design training course (group discussion)

18

Performance

Dialogue planning
We hold dialogue promotions at each office andworkplace aimed at all employees with the goal of
creating a culture of mutual regard and improving
situated empowerment. We are thus creating anenvironment in which employees can interact freely
and openly with one another.

Relations with Shareholders andInvestors

Management

Dialogue with management level
Importance is attached to dialogue between
management and employees at, for example, theannual policy meeting held by the president himself
at the head office and other offices, audits by thepresident together with management level, andresearch hearings.
After the president's audit and research hearings, we
promote even deeper interaction over drinks.

“Human Resources” Utilization
Policy that gives Consideration toEach Individual's Career

Message

Rent subsidy system and home ownershipallowance
In response to employees' diverse needs, we have put
effort into expanding the housing assistance system.
In addition to conventional assistance such ascompany-owned dormitories and corporate housing,
we have introduced a rent subsidy system and ahome ownership allowance.

Relationship with Shareholders
and Investors

19

Environment and Safety Activity Performance

CSR Report

PerformanceEco-friendly Product Development
Products Contributing to Ozone Layer Protection and Global Warming Prevention
Next generation fluorocarbon detergent

Products Promoting Energy Saving

ubber for fuel-efficient

Products Promoting Energy Saving

Etching Gas“Zeorora®ZFL-58”

EPA Ozone
Protection Award
Detergent Objects
Automobile tire made offuel-efficient synthetic rubber

Conventional toner(pulverization method)•Limitation in lowering fixing
temperature•Limitation in decreasing particle
size•More energy consumption

piers
the
that
be
be

Global Warming
Prevention

Reduction of
VOC Emissions

Reduction ofEnvironmental
Risks

Polymerized Toner
oner
ality
sible
ting
ergy

Toner electron microscope
image“Zeoglobule®”●Advantages•Low fixing temperature throughencapsulation technique•High imaging quality throughsmall particle diameter•Reduced energy consumption
through low temperature fixing

National Science Museum Exhibit

Performance

Energy Saving

Management●Disadvantages

Conventional detergents for semiconductor manufacturing, not only chlorofluorocarbons but also manychlorofluorocarbon replacement materials, have been
regarded as a big problem for global environmental
protection, because of their ozone depletion potential
and global warming potential.
“Zeorora®H” is a detergent developed by ZEON withzero ozone depletion and with low impact on global
warming while maintaining the characteristics of existingluorocarbon detergents such as non-flammable, fastdrying and low toxicity. This point has been acclaimed
and received many commendations such as the U.S.
EPA Stratospheric “Ozone Protection Award”. It is now
exhibited at the “Aiming for Green Chemistry” booth at
the National Science Museum in Tokyo.
In addition, “Zeorora®ZFL-58”, a low-dielectric constantinterlayer insulation film (Low-K) material used as an
etching gas in the
manufacture of semiconductors also has
zero ozone depletion
potential and is also
an environmentallyfriendly material due
to its extremely shortatmospheric lifespan.

Messagee top position in production capacity
rubbers used in such products asobile tires and abundant varieties ofrubber including “Zetpol®”.
eneral-purpose rubber for tires thatby 20% was developed. Fuel conduced by 1.5% (estimate by ZEON)
ires made of this rubber, and thiscing CO2 emissions.

“Zeorora®H”

Products Contributing to Solvent-free Technology

Previously, VOC (volatile organic compound) reduction werereleased into the environment because solvents were used in
the adhesive tape manufacturing process.
An adhesive tape manufacturer can produce tape products,
without solvent, based on hot melt technology by application of“Quintac®”, which has a block structure of polystyrene andpolyisoprene. In addition, this technology contributes to savingof energy which used to be required to evaporate solvents inthe post manufacturing process.

Products Promoting Solvent-free Technology

C5 petroleum resin“Quintone®” for hot-melt roadmarking

etroleum resin

20

Hot melt road marking using “Quintone®” C200
series as a binder component are road marking
paints that can be used in construction without
solvents. This contributes to VOC (volatileorganic compound) reduction.

Site Reports

Non-solvent type thermoplastic elastomer “Quintack®” for adhesive tape

Products made with
Zeonex, Zeonor

Products with Low Environmental Risks
Cycloolefin polymer“ZEONEX®”“ZEONOR®”

Lenses and Prisms

ZEONEX and ZEONOR are new thermoplastics having superior physicalproperties developed with our unique
Syringetechnology in consideration of environment, safety and health.
Compared to other plastics, impurities are minimal,
substances with low environmental risks are used as
ingredients and no hazardous gases are generated atincineration.
They are widely used in various fields including cameras
and OA equipment, liquid crystal and optical component
applications, medical and inspection equipment
applications, containers and electronic devices.
Compact discs

Large-size light guiding film
for notebook Pcs

21

Environment and Safety Activity Performance

CSR Report

PerformanceEco-friendly Product Development
Products Contributing to Ozone Layer Protection and Global Warming Prevention
Next generation fluorocarbon detergent

Products Promoting Energy Saving

ubber for fuel-efficient

Products Promoting Energy Saving

Etching Gas“Zeorora®ZFL-58”

EPA Ozone
Protection Award
Detergent Objects
Automobile tire made offuel-efficient synthetic rubber

Conventional toner(pulverization method)•Limitation in lowering fixing
temperature•Limitation in decreasing particle
size•More energy consumption

piers
the
that
be
be

Global Warming
Prevention

Reduction of
VOC Emissions

Reduction ofEnvironmental
Risks

Polymerized Toner
oner
ality
sible
ting
ergy

Toner electron microscope
image“Zeoglobule®”●Advantages•Low fixing temperature throughencapsulation technique•High imaging quality throughsmall particle diameter•Reduced energy consumption
through low temperature fixing

National Science Museum Exhibit

Performance

Energy Saving

Management●Disadvantages

Conventional detergents for semiconductor manufacturing, not only chlorofluorocarbons but also manychlorofluorocarbon replacement materials, have been
regarded as a big problem for global environmental
protection, because of their ozone depletion potential
and global warming potential.
“Zeorora®H” is a detergent developed by ZEON withzero ozone depletion and with low impact on global
warming while maintaining the characteristics of existingluorocarbon detergents such as non-flammable, fastdrying and low toxicity. This point has been acclaimed
and received many commendations such as the U.S.
EPA Stratospheric “Ozone Protection Award”. It is now
exhibited at the “Aiming for Green Chemistry” booth at
the National Science Museum in Tokyo.
In addition, “Zeorora®ZFL-58”, a low-dielectric constantinterlayer insulation film (Low-K) material used as an
etching gas in the
manufacture of semiconductors also has
zero ozone depletion
potential and is also
an environmentallyfriendly material due
to its extremely shortatmospheric lifespan.

Messagee top position in production capacity
rubbers used in such products asobile tires and abundant varieties ofrubber including “Zetpol®”.
eneral-purpose rubber for tires thatby 20% was developed. Fuel conduced by 1.5% (estimate by ZEON)
ires made of this rubber, and thiscing CO2 emissions.

“Zeorora®H”

Products Contributing to Solvent-free Technology

Previously, VOC (volatile organic compound) reduction werereleased into the environment because solvents were used in
the adhesive tape manufacturing process.
An adhesive tape manufacturer can produce tape products,
without solvent, based on hot melt technology by application of“Quintac®”, which has a block structure of polystyrene andpolyisoprene. In addition, this technology contributes to savingof energy which used to be required to evaporate solvents inthe post manufacturing process.

Products Promoting Solvent-free Technology

C5 petroleum resin“Quintone®” for hot-melt roadmarking

etroleum resin

20

Hot melt road marking using “Quintone®” C200
series as a binder component are road marking
paints that can be used in construction without
solvents. This contributes to VOC (volatileorganic compound) reduction.

Site Reports

Non-solvent type thermoplastic elastomer “Quintack®” for adhesive tape

Products made with
Zeonex, Zeonor

Products with Low Environmental Risks
Cycloolefin polymer“ZEONEX®”“ZEONOR®”

Lenses and Prisms

ZEONEX and ZEONOR are new thermoplastics having superior physicalproperties developed with our unique
Syringetechnology in consideration of environment, safety and health.
Compared to other plastics, impurities are minimal,
substances with low environmental risks are used as
ingredients and no hazardous gases are generated atincineration.
They are widely used in various fields including cameras
and OA equipment, liquid crystal and optical component
applications, medical and inspection equipment
applications, containers and electronic devices.
Compact discs

Large-size light guiding film
for notebook Pcs

21

Environment and Safety Activity Performance

CSR Report

Performance

Safety and Accident Prevention

Achievements

A manufacturer's starting point is the plant. Our management and plants work together every day to achieve
their shared mission of “Emphasizing safety, the environment and quality, and ensuring a 100% accidentfree, casualty-free workplace”.

Overview of 2006 Plan and Results
Item1

53 investigations performed(2)Enhance the safety 5Ss and expand to affiliates

The same 5S diagnosis was performed companywide at 45 workplaces (1/year), and affiliate safety
5S diagnosis also performed(3)Training for raising awareness of accident prevention

Implemented at all 4 plants (also implemented athead office and one affiliated company)(4)Zero environment abnormalities, zero safety abnormalities

Zero environment abnormalities, zero safety
abnormality(1)Fully establish the Occupational Health and Safety
Management System and eliminate dangers with risk
assessment

Risk assessment for on-site operations for each
workplace
implemented
annually
3.8
times/workplace(2)Zero accidents that result in work leave, zero serious
accidents that do not result in work leave

2 accidents that resulted in work leave, zero
serious accidents that did not result in work leave(1)Implement a voluntary management plan for air-polluting toxic
substances
Reduce the butadiene air discharge from the 2005 level of 25t
to 15.1t
Reduce the acrylonitrile air discharge from the 2005 level of
25.2t to 22t

Reduceenvironmental (2)Implement a zero emissions plan for industrial waste
burdens
Reduce final landfill amount from the 2005 level of 2,210 t to

Butadiene: 25.1t (0.4% up from the previous year)
Acrylonitrile: 24.7t (2% reduction from the previous
year)

Final landfill amount: 1300 t

1,212 tSpecific energy consumption reduced to 92.1% of
the 1990 level
Explained to the four plants and R&D Center, andreported in fiscal 2006

(1)Implement product safety reviews for new products and new
applications

12 reviews required, 12 completed

Promote(2)Provide customers with environment and safetychemicalinformation(MSDS)
safety and(3)Report new substances (laws related to chemical substanceproduct safety
investigation and production regulations, Occupational Health

Issued MSDS for all products and implemented
corrections (implementation rate: 100%)
Performed correctly

and Safety Law)

5

Promotedistribution
safety(4) Zero law violations

zero law violations(1) Full operation of the yellow card

Training performed through the logistics council(2) Reduce environmental burdens

Simplification of package shapes and containers
and increasing the efficiency of liquid producttransport are currently being implemented(3) Zero logistics accident

Zero logistics accident

Target achieved

Target was almost reached

Require's Improvement

Input
Handled Amount
Energy(Substances
291,000 kl
subject to(Converted to
the PRTR law)crude oil)
780,000 tons
Water Resources
20,901,000 m3

Products
1,144,000 tons
Takaoka Plant

Mizushima Plant
Tokuyama Plant

R&D Center
Kawasaki Plant

Air Discharge•Substances subject to
the PRTR law 67 tons
189,000 tons-c•CO2
730 tons•SOx
480 tons•NOx

Industrial Waste•Final landfill 1,300 tons
•Recycled
7,114 tons

Water Discharge•Total water
19,442,000 m3
amount
193 tons•COD
235 tons•Total nitrogen•Total phosphorus 3 tons

Recognizing that safety takes priority over all othermanagement issues, the president is at the forefrontof efforts to establish the best possible safety
management system across the whole company, inline with the Company-wide Compliance Master Plan.
The president verifies progress by direct audit.
1.Introduction of an equipment information
management system to prevent omissions(“Never rely on ‘maybe’ or ‘should’”).
We have started to fully utilize the new system that
we introduced in 2004.
We are effectively using all the functions such as
the ledger, inspection plan, inspection history andinspection omission detection.
2.Plant deterioration countermeasures andfoolproof measures (“Good judgments savemoney”)The essential elements for a safe and stableworkplace are “people”, “equipment” and “money”.
We formulate systematic countermeasures on ascientific basis, such as residual life predictions forequipment.
We are advancing fool-proofing to prevent
accidents by involving all employees in brainstorming.
3.Review of past accidents and recurrence
prevention (“Never rely on ‘maybe’ or‘should’”).
To eliminate safety abnormalities and prevent
worker accidents, we use modern technology toreview past accidents, determine whether current
countermeasures are effective and consider
whether and technology is available to provide
even better recurrence prevention.
Inspection tour by
the president(Mizushima Plant)

In fiscal 2006, our Mizushima and Tokuyama Plants
were accredited as certified safety inspectors.
All our offices were accredited as certified safety
inspectors. (In 2005, the Takaoka Plant renewed its
accreditation based on the new code, and in 2007 theKawasaki Plant plans to renew its accreditation basedon the new code.)
In order to build a safety management system andensure that safety is enforced more reliably, we areundertaking work to pinpoint the sources of danger
lurking in plants and establish measures that willlessen the extent of their impact on safety.
In addition, the plant safety inspections that weundertake ourselves are conducted soundly inaccordance with the prescribed method, and we arebolstering our two approaches to ensuring safety: ahardware-based safety system using facilities and alsoa software-based system.

Plant Safety Evaluation
When we establish a new line at a plant, we evaluate
the plant’s safety in five stages from the basic design
to the start of production and we set detailed check
items and evaluate the safety in order to create amore stable and safer plant.
We performed this 53 times in 2005 and 54 times in
2006.

All ZEON Safety Conference
April of each year is Nippon ZEON Safety Month inwhich we strengthen our safety activities.
During this period, we hold our All ZEON Safety
Conference.
As a part of our effort to create a climate of safety at
our company. Staff make presentations on the action
they took to prevent accidents and workplace injuries
and prizes are awarded to personnel who showed
dedication in their safety activities.
Following on from last fiscal year, thisyear we again invited an outside
lecturer to give us a presentation on
accidents, problems and human error.
The Safety Conference is broadcasted
to all offices with a view to enhancing
safety awareness.

All ZEON Safety Conference22

23Site Reports

Overview of Environmental Burdens

Output

The President Takes the Lead in
Promoting Safety Management

Accreditation of all offices ascertified safety inspectors

Performance

4(3)Strengthen the company-wide energy conservation project
Reduce specific energy consumption to 90.6% of the 1990
level
Aggregation of distribution-related energy

Not only is there dialogue between management andthe top officials of the plants, but management holds
direct dialogue with plant employees working on theplant's front line, earnestly discussing how to create amore stable, safer and better plant.
The president visited plants on 50 days in 2004, on 56
days in 2005, and on 43 days in 2006, thus ensuringthat dialogue remains invigorated.

Management

3

Promoteoccupational
health andsafety(1)Full implementation of plant safety evaluations

Self
evaluation

4.Review of standards (“Observe all standards,
change the standards that cannot be observed”)
We constantly try to improve our standards bymaking them easier to observe and easier tounderstand.
We eliminate unnecessary standards, simplify thecontents of others, and make full use of picturesand diagrams to make the standards easier to use.

Message2

Eliminateenvironmentand safety
abnormalities

2006 Results2006 Plan

Dialogue between Management
and Plants

Environment and Safety Activity Performance

CSR Report

Performance

Safety and Accident Prevention

Achievements

A manufacturer's starting point is the plant. Our management and plants work together every day to achieve
their shared mission of “Emphasizing safety, the environment and quality, and ensuring a 100% accidentfree, casualty-free workplace”.

Overview of 2006 Plan and Results
Item1

53 investigations performed(2)Enhance the safety 5Ss and expand to affiliates

The same 5S diagnosis was performed companywide at 45 workplaces (1/year), and affiliate safety
5S diagnosis also performed(3)Training for raising awareness of accident prevention

Implemented at all 4 plants (also implemented athead office and one affiliated company)(4)Zero environment abnormalities, zero safety abnormalities

Zero environment abnormalities, zero safety
abnormality(1)Fully establish the Occupational Health and Safety
Management System and eliminate dangers with risk
assessment

Risk assessment for on-site operations for each
workplace
implemented
annually
3.8
times/workplace(2)Zero accidents that result in work leave, zero serious
accidents that do not result in work leave

2 accidents that resulted in work leave, zero
serious accidents that did not result in work leave(1)Implement a voluntary management plan for air-polluting toxic
substances
Reduce the butadiene air discharge from the 2005 level of 25t
to 15.1t
Reduce the acrylonitrile air discharge from the 2005 level of
25.2t to 22t

Reduceenvironmental (2)Implement a zero emissions plan for industrial waste
burdens
Reduce final landfill amount from the 2005 level of 2,210 t to

Butadiene: 25.1t (0.4% up from the previous year)
Acrylonitrile: 24.7t (2% reduction from the previous
year)

Final landfill amount: 1300 t

1,212 tSpecific energy consumption reduced to 92.1% of
the 1990 level
Explained to the four plants and R&D Center, andreported in fiscal 2006

(1)Implement product safety reviews for new products and new
applications

12 reviews required, 12 completed

Promote(2)Provide customers with environment and safetychemicalinformation(MSDS)
safety and(3)Report new substances (laws related to chemical substanceproduct safety
investigation and production regulations, Occupational Health

Issued MSDS for all products and implemented
corrections (implementation rate: 100%)
Performed correctly

and Safety Law)

5

Promotedistribution
safety(4) Zero law violations

zero law violations(1) Full operation of the yellow card

Training performed through the logistics council(2) Reduce environmental burdens

Simplification of package shapes and containers
and increasing the efficiency of liquid producttransport are currently being implemented(3) Zero logistics accident

Zero logistics accident

Target achieved

Target was almost reached

Require's Improvement

Input
Handled Amount
Energy(Substances
291,000 kl
subject to(Converted to
the PRTR law)crude oil)
780,000 tons
Water Resources
20,901,000 m3

Products
1,144,000 tons
Takaoka Plant

Mizushima Plant
Tokuyama Plant

R&D Center
Kawasaki Plant

Air Discharge•Substances subject to
the PRTR law 67 tons
189,000 tons-c•CO2
730 tons•SOx
480 tons•NOx

Industrial Waste•Final landfill 1,300 tons
•Recycled
7,114 tons

Water Discharge•Total water
19,442,000 m3
amount
193 tons•COD
235 tons•Total nitrogen•Total phosphorus 3 tons

Recognizing that safety takes priority over all othermanagement issues, the president is at the forefrontof efforts to establish the best possible safety
management system across the whole company, inline with the Company-wide Compliance Master Plan.
The president verifies progress by direct audit.
1.Introduction of an equipment information
management system to prevent omissions(“Never rely on ‘maybe’ or ‘should’”).
We have started to fully utilize the new system that
we introduced in 2004.
We are effectively using all the functions such as
the ledger, inspection plan, inspection history andinspection omission detection.
2.Plant deterioration countermeasures andfoolproof measures (“Good judgments savemoney”)The essential elements for a safe and stableworkplace are “people”, “equipment” and “money”.
We formulate systematic countermeasures on ascientific basis, such as residual life predictions forequipment.
We are advancing fool-proofing to prevent
accidents by involving all employees in brainstorming.
3.Review of past accidents and recurrence
prevention (“Never rely on ‘maybe’ or‘should’”).
To eliminate safety abnormalities and prevent
worker accidents, we use modern technology toreview past accidents, determine whether current
countermeasures are effective and consider
whether and technology is available to provide
even better recurrence prevention.
Inspection tour by
the president(Mizushima Plant)

In fiscal 2006, our Mizushima and Tokuyama Plants
were accredited as certified safety inspectors.
All our offices were accredited as certified safety
inspectors. (In 2005, the Takaoka Plant renewed its
accreditation based on the new code, and in 2007 theKawasaki Plant plans to renew its accreditation basedon the new code.)
In order to build a safety management system andensure that safety is enforced more reliably, we areundertaking work to pinpoint the sources of danger
lurking in plants and establish measures that willlessen the extent of their impact on safety.
In addition, the plant safety inspections that weundertake ourselves are conducted soundly inaccordance with the prescribed method, and we arebolstering our two approaches to ensuring safety: ahardware-based safety system using facilities and alsoa software-based system.

Plant Safety Evaluation
When we establish a new line at a plant, we evaluate
the plant’s safety in five stages from the basic design
to the start of production and we set detailed check
items and evaluate the safety in order to create amore stable and safer plant.
We performed this 53 times in 2005 and 54 times in
2006.

All ZEON Safety Conference
April of each year is Nippon ZEON Safety Month inwhich we strengthen our safety activities.
During this period, we hold our All ZEON Safety
Conference.
As a part of our effort to create a climate of safety at
our company. Staff make presentations on the action
they took to prevent accidents and workplace injuries
and prizes are awarded to personnel who showed
dedication in their safety activities.
Following on from last fiscal year, thisyear we again invited an outside
lecturer to give us a presentation on
accidents, problems and human error.
The Safety Conference is broadcasted
to all offices with a view to enhancing
safety awareness.

All ZEON Safety Conference22

23Site Reports

Overview of Environmental Burdens

Output

The President Takes the Lead in
Promoting Safety Management

Accreditation of all offices ascertified safety inspectors

Performance

4(3)Strengthen the company-wide energy conservation project
Reduce specific energy consumption to 90.6% of the 1990
level
Aggregation of distribution-related energy

Not only is there dialogue between management andthe top officials of the plants, but management holds
direct dialogue with plant employees working on theplant's front line, earnestly discussing how to create amore stable, safer and better plant.
The president visited plants on 50 days in 2004, on 56
days in 2005, and on 43 days in 2006, thus ensuringthat dialogue remains invigorated.

Management

3

Promoteoccupational
health andsafety(1)Full implementation of plant safety evaluations

Self
evaluation

4.Review of standards (“Observe all standards,
change the standards that cannot be observed”)
We constantly try to improve our standards bymaking them easier to observe and easier tounderstand.
We eliminate unnecessary standards, simplify thecontents of others, and make full use of picturesand diagrams to make the standards easier to use.

Message2

Eliminateenvironmentand safety
abnormalities

2006 Results2006 Plan

Dialogue between Management
and Plants

Environment and Safety Activity Performance

Performance
CSR Report

PRTR Activity

Occupational Health and Safety

The entire company is making efforts to reduce the amount of PRTR subject substancedischarge and transfer.

Industrial health and safety initiatives
ZEON is committed to creating accident-freeworkplaces for the sake of employee health andwell-being.
At ZEON, our principal focus is on developing safe
and stable production facilities in line with thepresident’s exhortation of an “ongoing dedication toquality, capacity , safety and stability at production
facilities”. To this end, we employ a range ofTrend of frequency of accidents
resulting in work leave

2.5

Discharge and Transfer Data of Substances Restricted by Law

Manufacturing industry (statistics from
the Ministry of Health, Labor and Welfare)

1.5

Government
adherence control
numberChemical industry (statistics from
the Ministry of Health, Labor and Welfare)

1
0.5

Good

ZEON CORPORATION
0
90

91

92

93

94

95

96

97

Safety 5S Diagnosis

ZEON is committed to promoting the health of
employees through regular health checks, healtheducation programs and health advisory services.
The Company provides a systematic and ongoingprogram incorporating health walks, healthy working
practices, health seminars dietary advice,strength testing andotherinitiatives
designed to promote thephysical and mental
wellbeing of employees.
With the rapidly aging
Health programs (Tokuyama Plant)
population, there is an
24

00

01

02

03

04

05

06

increasing incidence of lifestyle-related illnesses andhealth problems.
We provide a wide range of health checks, including
the regular health checkup prescribed by law, special
health checkups, screening tests for metabolic(visceral fat) syndrome, bowel cancer tests, eyeexaminations, gastric examinations, gynecologicaltests, tumor marker tests and family check-ups.

Mental Health
The increasing intensity and complexity of working
requirements and the pace of technological change,
particularly in the area of IT, have combined to cause
a rising incidence of work-related stress disorders
and mental health problems.
In particular, the number of workers experiencing
unease, stress and worry in relation to work andworkplace issues is steadily increasing.
ZEON is committed to promoting the well-being of
employees through an annual mental health training
conference for all company employees.
In 2006 we held 10 training conference for all
managers and supervisors based on the theme of“counseling skills commensurate with theirleadership status”.
To improve workplace health care at each plant, wehired mental healthexperts to work athead office, R&D
Center and other individual plants to enable more relevant care
to be given.
Mental health study session (Kawasaki Plant)

Total amount ofdischarge(tons)
0.1
0.0
2.5
0.1
24.7
0.0
2.0
0.0
0.7
0.0
0.9
0.0
0.0
0.0
0.0
0.1
1.3
0.0
0.0
0.0
4.3
1.3
0.0
3.1
0.1
0.0
0.4
0.0
25.1
0.0
0.0
0.0
0.0
0.0
0.7
0.1
0.0
0.0
1.6
0.0
67.8

Amount oftransfer( tons)
0.0
0.0
0.0
0.0
17.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
6.5
0.0
343.2
137.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
504.6

* Units of dioxins are mg-TEQ ** Benzene represents impurities in raw materials
Note: The PRTR Law specifies the amount in units of "kg" with fractions to 2 significant digits, but the table above shows in units of "tons".
25

Site Reports

Health Management99

Acrylamide
Acrylic acid
Ethyl acrylate
Methyl acrylate
Acrylonitrile
Acryl alcohol
1-allyloxy-2, 3-epoxy propane
linear alkylbenzenesulfonate and salt thereof
Isoprene
Bisphenol Atype epoxy resin
Ethylene oxide
Ethylene diamine
Ethylenediamine tetraacetic acid
Epichlorohydrin
Propylene oxide
XyleneVinyl chloride
Vinyl acetate
Diphenylamine
N, N-dimethylformamide
StyreneDioxins*
Tetrahydromethyl phthalic anhydrideTolueneNickelNickel compound
2-vinylpyridine
Phenol
1, 3-butadiene
Bis phthalate (2-ethylhexyl)
Benzene**Poly(oxyethylene) alkylether
Poly(oxyethylene) nonylphenyl ether
Formaldehyde
Maleic anhydride
Methacrylic acid
Methacrylic acid 2,3-epoxy propyl
Methacrylic acid (n-butyl)
Methyl methacrylate
Methacrylonitrile
Total

Emission into Discharge into
Amount used theAtmosphere
Water(tons)(tons)(tons)
0.0
75.3
0.1
0.0
125.0
0.0
0.0
2,024.1
2.5
0.0
31.6
0.1
0.0
24,490.5
24.7
0.0
56.5
0.0
0.0
193.7
2.0
0.0
1,024.1
0.0
0.0
164,425.7
0.7
0.0
10.6
0.0
0.0
1,279.8
0.9
0.0
1.8
0.0
0.0
66.4
0.0
0.0
794.5
0.0
0.0
29.4
0.0
0.0
1,905.7
0.1
0.0
777.0
1.3
0.0
327.3
0.0
0.0
3.9
0.0
0.0
209.8
0.0
0.0
46,614.2
4.3
0.1
1.3
1.2
0.0
3,432.0
0.0
1.2
5,060.0
1.9
0.0
49.2
0.1
0.0
76.3
0.0
0.0
238.8
0.4
0.0
187.3
0.0
0.0
516,427.8
25.1
0.0
268.3
0.0
0.0
3,460.6
0.0
0.0
66.7
0.0
0.0
67.7
0.0
0.0
2.1
0.0
0.0
2,958.5
0.7
0.0
1,764.9
0.1
0.0
9.3
0.0
0.0
2.9
0.0
0.0
1,427.6
1.6
0.0
4.6
0.0
1.2
779,971.5
66.6

Performance

Based on our safety philosophy of “Safety will beachieved by performing the 5Ss and when everyone
takes responsibility for their own actions”, we
perform the “Safety 5S Diagnosis” at our sites,
affiliates and partner companies.
In 2006 visits weremade to five ZEON
sites, 13 sites of our 11
affiliates and threepartnercompanies.
Emphasis was given
not only to pointing out
defects, but also tosuggestalternative
Safety 5S Diagnosis (ZEON Polymix)
methods of doing
things. Awards were given for each department at the
All-ZEON Safety Conference in recognition ofoutstanding practices.

98

2
3
4
6
7
22
23
24
28
30
42
46
47
54
56
63
77
102
159
172
177
179
202
227
231
232
256
266
268
272
299
307
309
310
313
314
316
319
320
321

Substance nameManagement

Frequency of accidents
resulting in work leave

2

Bad

The PRTR (Pollutant Release and Amount of Discharge and Transfer of PRTR Subject Substances (2006)
Transfer Register) Law applies to 40
Amount of Emission into the Atmosphere (66.6 tons)
Total
substances used throughout ZEON.
Amount ofAmount of Discharge into Water (1.2 tons)
This is two less than in 2005 when
Discharge
Amount of
(67.8
tons)
Discharge
we had 42 listed substances.
Amount of Discharge into Soil (zero)
Transfer
The total discharge has been andTotal(572.4 tons)
Amount of Transfer (504.6 tons)
increased slightly from 65.9 tons in
Amount ofTransfer
2005 to 67.8 tons in 2006.
Landfill (zero)(504.6 tons)
We have created a mid- to long-term
plan, and are making efforts to
reduce the amount of discharges and transfers.

Messageinitiatives designed to promote safe and stableproduction systems, such as: classes foradministrators and supervisors on learning to identify
potential dangers; workplace-specific campaigns toeliminate workplace accidents by identifying
potential dangers; educational campaigns on
prevention of workplace accidents involving older
employees; hands-on training on accidents involving
getting caught in machinery; and safety training ataffiliated companies.

Environment and Safety Activity Performance

Performance
CSR Report

PRTR Activity

Occupational Health and Safety

The entire company is making efforts to reduce the amount of PRTR subject substancedischarge and transfer.

Industrial health and safety initiatives
ZEON is committed to creating accident-freeworkplaces for the sake of employee health andwell-being.
At ZEON, our principal focus is on developing safe
and stable production facilities in line with thepresident’s exhortation of an “ongoing dedication toquality, capacity , safety and stability at production
facilities”. To this end, we employ a range ofTrend of frequency of accidents
resulting in work leave

2.5

Discharge and Transfer Data of Substances Restricted by Law

Manufacturing industry (statistics from
the Ministry of Health, Labor and Welfare)

1.5

Government
adherence control
numberChemical industry (statistics from
the Ministry of Health, Labor and Welfare)

1
0.5

Good

ZEON CORPORATION
0
90

91

92

93

94

95

96

97

Safety 5S Diagnosis

ZEON is committed to promoting the health of
employees through regular health checks, healtheducation programs and health advisory services.
The Company provides a systematic and ongoingprogram incorporating health walks, healthy working
practices, health seminars dietary advice,strength testing andotherinitiatives
designed to promote thephysical and mental
wellbeing of employees.
With the rapidly aging
Health programs (Tokuyama Plant)
population, there is an
24

00

01

02

03

04

05

06

increasing incidence of lifestyle-related illnesses andhealth problems.
We provide a wide range of health checks, including
the regular health checkup prescribed by law, special
health checkups, screening tests for metabolic(visceral fat) syndrome, bowel cancer tests, eyeexaminations, gastric examinations, gynecologicaltests, tumor marker tests and family check-ups.

Mental Health
The increasing intensity and complexity of working
requirements and the pace of technological change,
particularly in the area of IT, have combined to cause
a rising incidence of work-related stress disorders
and mental health problems.
In particular, the number of workers experiencing
unease, stress and worry in relation to work andworkplace issues is steadily increasing.
ZEON is committed to promoting the well-being of
employees through an annual mental health training
conference for all company employees.
In 2006 we held 10 training conference for all
managers and supervisors based on the theme of“counseling skills commensurate with theirleadership status”.
To improve workplace health care at each plant, wehired mental healthexperts to work athead office, R&D
Center and other individual plants to enable more relevant care
to be given.
Mental health study session (Kawasaki Plant)

Total amount ofdischarge(tons)
0.1
0.0
2.5
0.1
24.7
0.0
2.0
0.0
0.7
0.0
0.9
0.0
0.0
0.0
0.0
0.1
1.3
0.0
0.0
0.0
4.3
1.3
0.0
3.1
0.1
0.0
0.4
0.0
25.1
0.0
0.0
0.0
0.0
0.0
0.7
0.1
0.0
0.0
1.6
0.0
67.8

Amount oftransfer( tons)
0.0
0.0
0.0
0.0
17.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.2
6.5
0.0
343.2
137.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
504.6

* Units of dioxins are mg-TEQ ** Benzene represents impurities in raw materials
Note: The PRTR Law specifies the amount in units of "kg" with fractions to 2 significant digits, but the table above shows in units of "tons".
25

Site Reports

Health Management99

Acrylamide
Acrylic acid
Ethyl acrylate
Methyl acrylate
Acrylonitrile
Acryl alcohol
1-allyloxy-2, 3-epoxy propane
linear alkylbenzenesulfonate and salt thereof
Isoprene
Bisphenol Atype epoxy resin
Ethylene oxide
Ethylene diamine
Ethylenediamine tetraacetic acid
Epichlorohydrin
Propylene oxide
XyleneVinyl chloride
Vinyl acetate
Diphenylamine
N, N-dimethylformamide
StyreneDioxins*
Tetrahydromethyl phthalic anhydrideTolueneNickelNickel compound
2-vinylpyridine
Phenol
1, 3-butadiene
Bis phthalate (2-ethylhexyl)
Benzene**Poly(oxyethylene) alkylether
Poly(oxyethylene) nonylphenyl ether
Formaldehyde
Maleic anhydride
Methacrylic acid
Methacrylic acid 2,3-epoxy propyl
Methacrylic acid (n-butyl)
Methyl methacrylate
Methacrylonitrile
Total

Emission into Discharge into
Amount used theAtmosphere
Water(tons)(tons)(tons)
0.0
75.3
0.1
0.0
125.0
0.0
0.0
2,024.1
2.5
0.0
31.6
0.1
0.0
24,490.5
24.7
0.0
56.5
0.0
0.0
193.7
2.0
0.0
1,024.1
0.0
0.0
164,425.7
0.7
0.0
10.6
0.0
0.0
1,279.8
0.9
0.0
1.8
0.0
0.0
66.4
0.0
0.0
794.5
0.0
0.0
29.4
0.0
0.0
1,905.7
0.1
0.0
777.0
1.3
0.0
327.3
0.0
0.0
3.9
0.0
0.0
209.8
0.0
0.0
46,614.2
4.3
0.1
1.3
1.2
0.0
3,432.0
0.0
1.2
5,060.0
1.9
0.0
49.2
0.1
0.0
76.3
0.0
0.0
238.8
0.4
0.0
187.3
0.0
0.0
516,427.8
25.1
0.0
268.3
0.0
0.0
3,460.6
0.0
0.0
66.7
0.0
0.0
67.7
0.0
0.0
2.1
0.0
0.0
2,958.5
0.7
0.0
1,764.9
0.1
0.0
9.3
0.0
0.0
2.9
0.0
0.0
1,427.6
1.6
0.0
4.6
0.0
1.2
779,971.5
66.6

Performance

Based on our safety philosophy of “Safety will beachieved by performing the 5Ss and when everyone
takes responsibility for their own actions”, we
perform the “Safety 5S Diagnosis” at our sites,
affiliates and partner companies.
In 2006 visits weremade to five ZEON
sites, 13 sites of our 11
affiliates and threepartnercompanies.
Emphasis was given
not only to pointing out
defects, but also tosuggestalternative
Safety 5S Diagnosis (ZEON Polymix)
methods of doing
things. Awards were given for each department at the
All-ZEON Safety Conference in recognition ofoutstanding practices.

98

2
3
4
6
7
22
23
24
28
30
42
46
47
54
56
63
77
102
159
172
177
179
202
227
231
232
256
266
268
272
299
307
309
310
313
314
316
319
320
321

Substance nameManagement

Frequency of accidents
resulting in work leave

2

Bad

The PRTR (Pollutant Release and Amount of Discharge and Transfer of PRTR Subject Substances (2006)
Transfer Register) Law applies to 40
Amount of Emission into the Atmosphere (66.6 tons)
Total
substances used throughout ZEON.
Amount ofAmount of Discharge into Water (1.2 tons)
This is two less than in 2005 when
Discharge
Amount of
(67.8
tons)
Discharge
we had 42 listed substances.
Amount of Discharge into Soil (zero)
Transfer
The total discharge has been andTotal(572.4 tons)
Amount of Transfer (504.6 tons)
increased slightly from 65.9 tons in
Amount ofTransfer
2005 to 67.8 tons in 2006.
Landfill (zero)(504.6 tons)
We have created a mid- to long-term
plan, and are making efforts to
reduce the amount of discharges and transfers.

Messageinitiatives designed to promote safe and stableproduction systems, such as: classes foradministrators and supervisors on learning to identify
potential dangers; workplace-specific campaigns toeliminate workplace accidents by identifying
potential dangers; educational campaigns on
prevention of workplace accidents involving older
employees; hands-on training on accidents involving
getting caught in machinery; and safety training ataffiliated companies.

Environment and Safety Activity Performance

CSR Report

Hazardous Chemical Substanceand Industrial Waste

Air and Water Quality

We are continuing our company-wide efforts to reduce the burden on the environment, and when
installing a new plant or expanding a plant, we try our best to prevent increasing the burden
through technological improvements. We will continue to make additional efforts in the future.

Reduction of Hazardous Chemical Substance Emissions into the Atmosphere
We are actively promoting a reduction in the amount of butadiene and acrylonitrile emissions.

Amount of butadiene emission
into the atmosphere

tons

120

300
401.9

100

100

an increase in production capacity.
Waste water quality continues to meet the requirements of the Clean Water Act Law and agreementswith local governments.
The 6th Total Volume Control pollutant regulations
include phosphorus and nitrogen targets for 2009.
To this end, We are busy working on new treatment
techniques and equipment modifications.
At the Kawasaki Plant, total nitrogen levels in exhaustgases are rising, a direct result of increased
production of products such as NBR (acrylonitrile
and butadiene rubber) associated with high output of
waste water by-products.
The nitrogen removal rate at the Kawasaki Plant has
improved significantly with the installation of newnitrogen removal equipment in March 2007.

Amount of SOx emission

tons

1,200
80

600

1,000

60

107.3

40
20
25.1

24.7

800
600
730

400

0
95

96

97

98

99

00

01

02

03

04

05

06

95

96

97

98

99

00

01

02

03

04

05

200

06

500
400
300
480
200
100
0

0

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

Reduction of Industrial Waste

19.4

Amount of total phosphorus
discharge
Amount of Emission

Amount of Emission

Amount of Emission

200

5
4
3
3.0

150
235
100
50

1
0

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

Amount of total nitrogen
discharge

tons

250

6

2
1,300

193

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

tons

9,620

150

0

0

7

5,000

200

50

8

10,000

250

100

5

Amount of final landfill of waste

15,000

0

26

15

300

0
95

96

97

98

99

00

01

02

03

04

05

06

95

96

97

98

99

00

01

02

03

04

05

06

27

Site Reports

tons

350

20

10

Amount of COD discharge

tons

400

Amount of Emission

20,000We are working on the mid- and long-term goal forthe amount of industrial waste for final landfill,which is reaching the zero emission defined as 10% of
the emission amount in 1995. The goal is expected tobe achieved by the year 2010.
Currently, examination of active sludge volume
reduction and examination of effective sludge
utilization and incineration are continuing while thesorting, recycling, and effective utilization ofindustrial waste are actively being promoted.

Amount of Emission

We are making efforts to reduce the amount ofindustrial waste generated in each stage of the
production process, and the effects of reduction can
be clearly observed.
The amount of industrial waste for external final
landfill disposal reduced by approximately 841 tons
in 2006 over the previous year.
In particular, improved product sorting and recycling
procedures at Takaoka Plant saw a reduction of 300
tons in landfill disposal.

Amount of total waste water
discharge

million m3
25

Performance0

Amount of NOx emission

tons

700

Amount of Emission

200

Amount of acrylonitrile emission
into the atmospheretons

Amount of Emission

Amount of Emission

Amount of Emission

400

With regard to the environmental atmosphereemission has been improved by the changeover of theTokuyama Plant boiler to a NOx oxide burner in
2003.
The Tokuyama Plant generates relatively highemissions of SOx, and regular analysis of emission
gases (conducted six times per year) has shown
significant fluctuations in emission levels.
Since the sulfur level in heavy oil tends to remain
fairly constant from year to year, SOx observations at
Tokuyama Plant are now calculated on the basis ofsulfur levels in input materials. Data since 2002 hasbeen modified in accordance with this approach,which delivers greater consistency in measurement
results.
Total waste water output has risen slightly, in spite ofvarious recycling and recirculation initiatives, due toManagement500

Meanwhile, the synthetic rubber manufacturing line
at Tokuyama Plant will be upgraded during 2007 tocompletely eliminate emissions from the monomer
recovery process.
At the Kawasaki Plant, the new exhaust combustion
facilities installed in 2005, was only able to operate on
a trial basis during 2006 due to the need forequipment modifications.
It is hoped that the exhaust combustion facilities will
be fully operational during 2007.
We have reduced acrylonitrile emissions by operating
an additional monomer recovery system and areplanning to expand the recovery process in the near
future.

Message

Efforts are being made headed by the Chemical
Industry Association of Japan to recognize andreduce the amount of emission into the atmosphere
for the 12 substances that are a top-priority
challenge.
ZEON has been making efforts to actively reduce theamount of emission with an emphasis on three
related substances.
Through establishing technology and process
improvements we completely eliminated the use ofbenzene (as an input material) in 2000 and consequently have achieved zero atmospheric emission.
Through complete combustion in the Tokuyama
Plant boiler, butadiene emissions have been reduced
from 56 tons in 2003 to 19.8 tons in 2004.

Performance

Environment and Safety Activity Performance

CSR Report

Hazardous Chemical Substanceand Industrial Waste

Air and Water Quality

We are continuing our company-wide efforts to reduce the burden on the environment, and when
installing a new plant or expanding a plant, we try our best to prevent increasing the burden
through technological improvements. We will continue to make additional efforts in the future.

Reduction of Hazardous Chemical Substance Emissions into the Atmosphere
We are actively promoting a reduction in the amount of butadiene and acrylonitrile emissions.

Amount of butadiene emission
into the atmosphere

tons

120

300
401.9

100

100

an increase in production capacity.
Waste water quality continues to meet the requirements of the Clean Water Act Law and agreementswith local governments.
The 6th Total Volume Control pollutant regulations
include phosphorus and nitrogen targets for 2009.
To this end, We are busy working on new treatment
techniques and equipment modifications.
At the Kawasaki Plant, total nitrogen levels in exhaustgases are rising, a direct result of increased
production of products such as NBR (acrylonitrile
and butadiene rubber) associated with high output of
waste water by-products.
The nitrogen removal rate at the Kawasaki Plant has
improved significantly with the installation of newnitrogen removal equipment in March 2007.

Amount of SOx emission

tons

1,200
80

600

1,000

60

107.3

40
20
25.1

24.7

800
600
730

400

0
95

96

97

98

99

00

01

02

03

04

05

06

95

96

97

98

99

00

01

02

03

04

05

200

06

500
400
300
480
200
100
0

0

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

Reduction of Industrial Waste

19.4

Amount of total phosphorus
discharge
Amount of Emission

Amount of Emission

Amount of Emission

200

5
4
3
3.0

150
235
100
50

1
0

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

Amount of total nitrogen
discharge

tons

250

6

2
1,300

193

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

tons

9,620

150

0

0

7

5,000

200

50

8

10,000

250

100

5

Amount of final landfill of waste

15,000

0

26

15

300

0
95

96

97

98

99

00

01

02

03

04

05

06

95

96

97

98

99

00

01

02

03

04

05

06

27

Site Reports

tons

350

20

10

Amount of COD discharge

tons

400

Amount of Emission

20,000We are working on the mid- and long-term goal forthe amount of industrial waste for final landfill,which is reaching the zero emission defined as 10% of
the emission amount in 1995. The goal is expected tobe achieved by the year 2010.
Currently, examination of active sludge volume
reduction and examination of effective sludge
utilization and incineration are continuing while thesorting, recycling, and effective utilization ofindustrial waste are actively being promoted.

Amount of Emission

We are making efforts to reduce the amount ofindustrial waste generated in each stage of the
production process, and the effects of reduction can
be clearly observed.
The amount of industrial waste for external final
landfill disposal reduced by approximately 841 tons
in 2006 over the previous year.
In particular, improved product sorting and recycling
procedures at Takaoka Plant saw a reduction of 300
tons in landfill disposal.

Amount of total waste water
discharge

million m3
25

Performance0

Amount of NOx emission

tons

700

Amount of Emission

200

Amount of acrylonitrile emission
into the atmospheretons

Amount of Emission

Amount of Emission

Amount of Emission

400

With regard to the environmental atmosphereemission has been improved by the changeover of theTokuyama Plant boiler to a NOx oxide burner in
2003.
The Tokuyama Plant generates relatively highemissions of SOx, and regular analysis of emission
gases (conducted six times per year) has shown
significant fluctuations in emission levels.
Since the sulfur level in heavy oil tends to remain
fairly constant from year to year, SOx observations at
Tokuyama Plant are now calculated on the basis ofsulfur levels in input materials. Data since 2002 hasbeen modified in accordance with this approach,which delivers greater consistency in measurement
results.
Total waste water output has risen slightly, in spite ofvarious recycling and recirculation initiatives, due toManagement500

Meanwhile, the synthetic rubber manufacturing line
at Tokuyama Plant will be upgraded during 2007 tocompletely eliminate emissions from the monomer
recovery process.
At the Kawasaki Plant, the new exhaust combustion
facilities installed in 2005, was only able to operate on
a trial basis during 2006 due to the need forequipment modifications.
It is hoped that the exhaust combustion facilities will
be fully operational during 2007.
We have reduced acrylonitrile emissions by operating
an additional monomer recovery system and areplanning to expand the recovery process in the near
future.

Message

Efforts are being made headed by the Chemical
Industry Association of Japan to recognize andreduce the amount of emission into the atmosphere
for the 12 substances that are a top-priority
challenge.
ZEON has been making efforts to actively reduce theamount of emission with an emphasis on three
related substances.
Through establishing technology and process
improvements we completely eliminated the use ofbenzene (as an input material) in 2000 and consequently have achieved zero atmospheric emission.
Through complete combustion in the Tokuyama
Plant boiler, butadiene emissions have been reduced
from 56 tons in 2003 to 19.8 tons in 2004.

Performance

Environment and Safety Activity Performance

CSR Report

Resource and Energy Saving
In order to achieve the goal of "Reducing the energy consumption rate to 90% of the 1990 levelby 2010" set by the Japan Chemical Industry Association, we have strengthened our companywide projects and continue the challenges driven by our unique technology.

300

102
100

100
250

98

98.1

96

96.6

150

94.6

100

94
93.6

92
92.1

50

90

0

88
90

02

03

04

05

06

ZEON has instituted the “Yellow Card Management
Rules” when transporting products that are toxic or
dangerous. The driver must carry a yellow card when
the product is shipped.
The drivers are trained periodically in how tounderstand and observe the rules.
Further, training is performed at each plant in how toproperly handle the products, to help prevent
logistics accidents.

Amount of CO2 emitted
Yellow Card

200.0

Environmental Countermeasure
for Logistics

150.0
100.0

168.2

189.2

191.2

194.2

02

03

04

183.4

188.8

05

06

50.0

1. Using metal containers to pack synthetic
rubber products.
We had previously used wooden boxes to packsynthetic rubber, but to help protect the world’s

forests, we decided to change to metal box
pallets.
Metal crates have already been introduced forexport products, while the phase-out of wooden
boxes in domestic distribution has been inprogress since 2005 and is currently around 80%
complete as of 2007.

0.0
90

subject to additional requirements.
The Ministry of Economy, Trade and Industry
formally declared ZEON a designated major
consigner on June 14, 2007, on the basis of total
freight shipping volumes (including the four
production plants and the R&D Center).
We will continue in the future to do our very best toconserve energy in distribution process as well as inproduction process.

Domestic Wooden Box Pallet

2. Amendments to the Energy Conservation Law
As a designated major consignor, ZEON is committed
to efficiency improvements designed to minimize
energy consumption.
ZEON has introduced a variety of strategies in thisDomestic Metal Box Pallet

area, including methodologies for collection of
performance data, a modal shift towards railway andmarine transport, higher loading ratios and an idlingstop campaign to encourage truck drivers.

Energy-saving topics
At the Mizushima industrial complex precinct, Asahi
Kasei Chemicals, ZEON and Nippon Petroleum
Refining (the refining arm of ENEOS) have started
work on a joint program to save energy by recycling
petroleum residue.
In December 2006, the New Energy and Industrial
Technology Development Organization (NEDO)
nominated a joint project between Asahi Kasei
Chemicals and ZEON involving construction of aboiler fuelled by petroleum residues for the “2006NEDO Energy Conservation Project Support
scheme”.
Under the project, Nippon Petroleum Refining will28

build a new solvent de-asphalting line at theMizushima Refinery for extracting kerosene andlight oil from asphalt and other heavy oil distillates.
The petroleum residue (or pitch) generated during
the extraction process will be used as fuel for new
boilers to be built by Asahi Kasei Chemicals and
ZEON.
This will reduce overall consumption of heavy oils
and enable significant energy savings.
It is estimated that the total energy saving acrossthe entire industrial complex will be equivalent to98,000 kl of crude oil. Commercial operation is due
to commence in July 2009.

2006 Modal Shift award

29

Site Reports

Under amendments to the Energy Conservation Law,
responsibility for development and implementationof energy-saving strategies rests with the party
responsible for transportation of goods (i.e., theconsignor).
A company with an annual freight volume of 30
million ton-kiloliter or more is defined as a designated major consignor under the amended Law and is

Logistics Safety

Performance

Energy consumption associatedwith transportation

Our company’s logistics department promotes safety and works on reducing environmental
burdens.

Management200

1,000 tons-C

250.0
Amount emitted (carbon equivalent)

Consumption (crude oil equivalent)

Amount of energy consumed andconsumption rate index

Consumption rate index (compared to 1990 levels)

1,000KL

350

Environment andsafety for Logistics

Messagecrude oil conversion ratios was revised in 2006
together with the unit consumption index.
As a result, the energy consumption rate index(compared to 1990) has been improved to 92.1%
through those energy saving activities, approaching
the 2010 goal of 90%.
CO2 emissions are calculated retrospectively to 1990,
based on the Law Concerning the Promotion of
Measures to Combat Global Warming.

As a concrete example of the efforts in 2006, thecogeneration power facility in the Kawasaki plant
was modernized to improve its power generation
efficiency.
At Mizushima Plant, we are working to boost
productivity in resin manufacturing and improve theefficiency of the monomer extraction distillation
process to minimize steam consumption.
The power conversion coefficient used to calculate

Performance

Environment and Safety Activity Performance

CSR Report

Resource and Energy Saving
In order to achieve the goal of "Reducing the energy consumption rate to 90% of the 1990 levelby 2010" set by the Japan Chemical Industry Association, we have strengthened our companywide projects and continue the challenges driven by our unique technology.

300

102
100

100
250

98

98.1

96

96.6

150

94.6

100

94
93.6

92
92.1

50

90

0

88
90

02

03

04

05

06

ZEON has instituted the “Yellow Card Management
Rules” when transporting products that are toxic or
dangerous. The driver must carry a yellow card when
the product is shipped.
The drivers are trained periodically in how tounderstand and observe the rules.
Further, training is performed at each plant in how toproperly handle the products, to help prevent
logistics accidents.

Amount of CO2 emitted
Yellow Card

200.0

Environmental Countermeasure
for Logistics

150.0
100.0

168.2

189.2

191.2

194.2

02

03

04

183.4

188.8

05

06

50.0

1. Using metal containers to pack synthetic
rubber products.
We had previously used wooden boxes to packsynthetic rubber, but to help protect the world’s

forests, we decided to change to metal box
pallets.
Metal crates have already been introduced forexport products, while the phase-out of wooden
boxes in domestic distribution has been inprogress since 2005 and is currently around 80%
complete as of 2007.

0.0
90

subject to additional requirements.
The Ministry of Economy, Trade and Industry
formally declared ZEON a designated major
consigner on June 14, 2007, on the basis of total
freight shipping volumes (including the four
production plants and the R&D Center).
We will continue in the future to do our very best toconserve energy in distribution process as well as inproduction process.

Domestic Wooden Box Pallet

2. Amendments to the Energy Conservation Law
As a designated major consignor, ZEON is committed
to efficiency improvements designed to minimize
energy consumption.
ZEON has introduced a variety of strategies in thisDomestic Metal Box Pallet

area, including methodologies for collection of
performance data, a modal shift towards railway andmarine transport, higher loading ratios and an idlingstop campaign to encourage truck drivers.

Energy-saving topics
At the Mizushima industrial complex precinct, Asahi
Kasei Chemicals, ZEON and Nippon Petroleum
Refining (the refining arm of ENEOS) have started
work on a joint program to save energy by recycling
petroleum residue.
In December 2006, the New Energy and Industrial
Technology Development Organization (NEDO)
nominated a joint project between Asahi Kasei
Chemicals and ZEON involving construction of aboiler fuelled by petroleum residues for the “2006NEDO Energy Conservation Project Support
scheme”.
Under the project, Nippon Petroleum Refining will28

build a new solvent de-asphalting line at theMizushima Refinery for extracting kerosene andlight oil from asphalt and other heavy oil distillates.
The petroleum residue (or pitch) generated during
the extraction process will be used as fuel for new
boilers to be built by Asahi Kasei Chemicals and
ZEON.
This will reduce overall consumption of heavy oils
and enable significant energy savings.
It is estimated that the total energy saving acrossthe entire industrial complex will be equivalent to98,000 kl of crude oil. Commercial operation is due
to commence in July 2009.

2006 Modal Shift award

29

Site Reports

Under amendments to the Energy Conservation Law,
responsibility for development and implementationof energy-saving strategies rests with the party
responsible for transportation of goods (i.e., theconsignor).
A company with an annual freight volume of 30
million ton-kiloliter or more is defined as a designated major consignor under the amended Law and is

Logistics Safety

Performance

Energy consumption associatedwith transportation

Our company’s logistics department promotes safety and works on reducing environmental
burdens.

Management200

1,000 tons-C

250.0
Amount emitted (carbon equivalent)

Consumption (crude oil equivalent)

Amount of energy consumed andconsumption rate index

Consumption rate index (compared to 1990 levels)

1,000KL

350

Environment andsafety for Logistics

Messagecrude oil conversion ratios was revised in 2006
together with the unit consumption index.
As a result, the energy consumption rate index(compared to 1990) has been improved to 92.1%
through those energy saving activities, approaching
the 2010 goal of 90%.
CO2 emissions are calculated retrospectively to 1990,
based on the Law Concerning the Promotion of
Measures to Combat Global Warming.

As a concrete example of the efforts in 2006, thecogeneration power facility in the Kawasaki plant
was modernized to improve its power generation
efficiency.
At Mizushima Plant, we are working to boost
productivity in resin manufacturing and improve theefficiency of the monomer extraction distillation
process to minimize steam consumption.
The power conversion coefficient used to calculate

Performance

Environment and Safety Activity Performance

Performance
CSR Report

AuditsEnvironment and Safety Training

We perform a variety of audits to check the implementation status of our policies, such as our
Responsible Care activities.

We are fully committed to safety management with training carried out at head office andspecial training exercises performed at each plant.

ZEON and Affiliate Audits
Responsible Care Audit
Every year, an audit team led by the director in
charge of the environment and safety visits plants toperform a Responsible Care audit.
The progress of improvements is checked in the audit
using the “Specified Improvement Plan and Implementation Report”.

Affiliate Safety Inspection
A team led by the head of the Safety Environmental
Affairs Department performs a diagnosis of theimplementation status of Responsible Care activities
at affiliates and offers guidance at least once a year.

Manager and Supervisor Training
The Human Resource Department and Safety
Environmental Affairs Department jointly host a two
day head office Group Leader Central Training
program for the plants “Production & MaintenanceManagement” and “Production & Maintenanse
Supervisor” groups.
Group Leader Centeal Training for the plants hasformed a core elememt of ZEON's safety management. Since 2004, the participants have been trainedby the Head Officer Management with the contents
set with the agreement of both the production andmaintenance departments.
The contents of the training is as follows: basic
training about equipment management and the rolesof the manager and supervisor, repeat compliancetraining, training about laws related to high-pressuregas, and training to raise awareness levels by
discussing in groups case studies of accidents andworkplace injuries at ZEON.

The Safety Environmental Affairs Department also
provides executives from affiliated companies withannual training designed to promote awareness ofsafety issues.
In addition, since 2004 manager environment andsafety training has been performed when a new
person has been appointed as production section
head or environment and safety section head.
Safety Training by Retired Employees
We decided to test a new system where retired
workers with a lot of knowledge and experiencewould provide safety training for our employees.
Since 2003 we asked a retired worker who used to bea plant manager to be a lecturer and participate inour safety training for all the plant employees.
A presentation held in 2006 on multi-faceted
investigation using the m-shell analysis model toidentify the “Causes of Serious Workplace Accidents”
involving human error was particularly well received,
and will be repeated in future.

Performance

Plant Responsible
Care audit(Mizushima Plant)

Affiliate Safety Inspection

Management

Other Audits and Inspections
The head of the Safety Environmental Affairs
Department performs special audits as required.
The central workplace doctor also inspects the plants
about once a year to check the working environmentand health management.

Training at the Head OfficeMessage

PL Audits
An audit focused on PL (product liability) andchemical safety is performed once a year at the R&D
center, plants and affiliates, by an audit team led by
the head of Quality Assurance Department.

Plant Technology Audit
A plant technology auditor is appointed to audit theplant equipment for safety and stability during
operation at the four Plants and the ZEON Chemicals
Yonezawa Co., Ltd. at least once a year.

Production Group
Head Office Training
Accident Case Study Training byExperienced former Plant Manager

Site Reports

RC audit inspection(Mizushima Plant)

Environment and Safety Training
and Exercises at the Plants
Internal Plant Audits
Diagnosis by the Plant Manager
All the plant managers perform a diagnosis of theimplementation status of Responsible Care at theirown plant at least once a year.

30

Environment ISO internal Audit
A regular audit is performed to check the EMS(Environment Management System) implementation
status, in line with the ISO14001 manual.
Both internal and external courses are provided ateach plant to train employees to be internal auditors.

We perform “Abnormality Anticipation Drills”,“Emergency Training”, “Comprehensive Fire Drills”
and “Report Training” in line with an annual plan.
We are also involved in everyday activities toimprove safety, such as “Contests that Encourage
the Wearing of Protective Gear” or “Safe Forklift
Driving”.
In 2006 we fully extended to the plants the practicallearning system that we had launched in 2004, andwe are continuously training employees using
simulations to raise their awareness of safety.
Specifically, we performed an explosion experimentand a simulation of being caught up in a roll mill.

Practical Learning at Tokuyama Plant

31

Environment and Safety Activity Performance

Performance
CSR Report

AuditsEnvironment and Safety Training

We perform a variety of audits to check the implementation status of our policies, such as our
Responsible Care activities.

We are fully committed to safety management with training carried out at head office andspecial training exercises performed at each plant.

ZEON and Affiliate Audits
Responsible Care Audit
Every year, an audit team led by the director in
charge of the environment and safety visits plants toperform a Responsible Care audit.
The progress of improvements is checked in the audit
using the “Specified Improvement Plan and Implementation Report”.

Affiliate Safety Inspection
A team led by the head of the Safety Environmental
Affairs Department performs a diagnosis of theimplementation status of Responsible Care activities
at affiliates and offers guidance at least once a year.

Manager and Supervisor Training
The Human Resource Department and Safety
Environmental Affairs Department jointly host a two
day head office Group Leader Central Training
program for the plants “Production & MaintenanceManagement” and “Production & Maintenanse
Supervisor” groups.
Group Leader Centeal Training for the plants hasformed a core elememt of ZEON's safety management. Since 2004, the participants have been trainedby the Head Officer Management with the contents
set with the agreement of both the production andmaintenance departments.
The contents of the training is as follows: basic
training about equipment management and the rolesof the manager and supervisor, repeat compliancetraining, training about laws related to high-pressuregas, and training to raise awareness levels by
discussing in groups case studies of accidents andworkplace injuries at ZEON.

The Safety Environmental Affairs Department also
provides executives from affiliated companies withannual training designed to promote awareness ofsafety issues.
In addition, since 2004 manager environment andsafety training has been performed when a new
person has been appointed as production section
head or environment and safety section head.
Safety Training by Retired Employees
We decided to test a new system where retired
workers with a lot of knowledge and experiencewould provide safety training for our employees.
Since 2003 we asked a retired worker who used to bea plant manager to be a lecturer and participate inour safety training for all the plant employees.
A presentation held in 2006 on multi-faceted
investigation using the m-shell analysis model toidentify the “Causes of Serious Workplace Accidents”
involving human error was particularly well received,
and will be repeated in future.

Performance

Plant Responsible
Care audit(Mizushima Plant)

Affiliate Safety Inspection

Management

Other Audits and Inspections
The head of the Safety Environmental Affairs
Department performs special audits as required.
The central workplace doctor also inspects the plants
about once a year to check the working environmentand health management.

Training at the Head OfficeMessage

PL Audits
An audit focused on PL (product liability) andchemical safety is performed once a year at the R&D
center, plants and affiliates, by an audit team led by
the head of Quality Assurance Department.

Plant Technology Audit
A plant technology auditor is appointed to audit theplant equipment for safety and stability during
operation at the four Plants and the ZEON Chemicals
Yonezawa Co., Ltd. at least once a year.

Production Group
Head Office Training
Accident Case Study Training byExperienced former Plant Manager

Site Reports

RC audit inspection(Mizushima Plant)

Environment and Safety Training
and Exercises at the Plants
Internal Plant Audits
Diagnosis by the Plant Manager
All the plant managers perform a diagnosis of theimplementation status of Responsible Care at theirown plant at least once a year.

30

Environment ISO internal Audit
A regular audit is performed to check the EMS(Environment Management System) implementation
status, in line with the ISO14001 manual.
Both internal and external courses are provided ateach plant to train employees to be internal auditors.

We perform “Abnormality Anticipation Drills”,“Emergency Training”, “Comprehensive Fire Drills”
and “Report Training” in line with an annual plan.
We are also involved in everyday activities toimprove safety, such as “Contests that Encourage
the Wearing of Protective Gear” or “Safe Forklift
Driving”.
In 2006 we fully extended to the plants the practicallearning system that we had launched in 2004, andwe are continuously training employees using
simulations to raise their awareness of safety.
Specifically, we performed an explosion experimentand a simulation of being caught up in a roll mill.

Practical Learning at Tokuyama Plant

31

Environment and Safety Activity Performance

CSR Report

Performance

Environmental Economic Perspective
Environmental Accounting

Since 2002, ZEON has publicly released its environmental
protection costs and environmental protection effects (physical effects and economic effects), in line with theguidelines issued by the Ministry of the Environment. This environmental accounting report has been created basedon the main items in the Ministry of the Environment’s “Environmental Accounting Guidebook 2002” and the“Procedures for Environmental Protection Cost Classification” (April 2003).

Environmental Protection Costs

was modernized to improve its power generation
efficiency.
At Mizushima Plant, we are working to boost
productivity in resin manufacturing and improve theefficiency of the monomer extractive distillation
process to minimize overall steam consumption.

Including Affiliates

Investment
AmountExpenses

688.7

2,362.8

Investment
Amount750.7(1) Pollution prevention costs

521.3

1,719.5

566.9

1,776.8(2) Global environment protection costs

120.1

238.1

136.4

242.7

(3) Resource recycling costs

47.3

405.2

47.4

432.7

Classification
1. Costs within the business area
Breakdown

ZEON Only

Expenses
2,452.2

2. Upstream and downstream costs

64.3

4.8

64.3

4.8

3. Management activity costs

18.0

119.7

20.7

133.2

4. Research and development costs

122.0

733.9

122.0

735.9

5. Social activity costs

0.0

39.4

0.1

40.2

6. Environmental damage handling costs

0.0

109.0

0.0

109.0

893.0

3,369.6957.9

3,475.3

Total

Amount (Million Yen)

Item

ZEON Only

Including Affiliates

Total investment amount within applicable period

25,947

26,370Total research and development costs
within applicable period

11,543

11,76932

Accounting Range
ZEON Only:
ZEON Head Office, R&D Center, Takaoka
Plant, Kawasaki Plant, Tokuyama Plant,
Mizushima Plant
Affiliates:
Kawagoe Plant and Otsu Plant, ZEON
Polymix Co., Ltd.; Sano Plant, Optes Inc.;
Ibaraki Plant, ZEON Kasei Co., Ltd.;
Mizushima Plant, Okayama Butadiene
Co., Ltd.; ZEON Chemicals Yonezawa
Co., Ltd.; Yamaguchi Plant and Shunan
Plant, ZEON Logistical Materials Co., Ltd.;
Mizushima Plant, RIMTEC Corp.; Takaoka
Plant, ZEON Medical Inc.
Period Covered
April 1, 2006 to March 31, 2007

SOx emissions (tons)

730

12

731

12

NOx emissions (tons)

480

21

481

21

COD emissions (tons)
CO2 emissions (amount ofcarbon) (tons)
Amount of final landfill ofindustrial waste (tons)

193

2

193

2

188,789

5,343

191,763

5,293

1,300

839

1,768

665

Total emission of PRTR
applicable substances (tons)

68

2

75

4

Economic Effects
The economic effects shown here include only thosefor which an actual monetary amount can berecognized. We do not include any risk avoidance
effects or supposed effects that are calculated byestimating incidental loses and damage costs that
may result if environmental preservation costs are
not paid.
The stated economic benefit is limited to that which
can be demonstrably verified in cash terms.
Industrial waste treatment costs are continuing to be
reduced as a result of our efforts in reducing losses in
the production process, waste oil and effective
Economic effects associated with environmental
preservation measures (million yen)
Description of effects

Accounting Range
ZEON Only:
ZEON Head Office, R&D Center, Takaoka
Plant, Kawasaki Plant, Tokuyama Plant,
Mizushima Plant
Affiliates:
Kawagoe Plant and Otsu Plant, ZEON
Polymix Co., Ltd.; Sano Plant, Optes Inc.;
Ibaraki Plant, ZEON Kasei Co., Ltd.;
Mizushima Plant, Okayama Butadiene
Co., Ltd.; ZEON Chemicals Yonezawa
Co., Ltd.; Yamaguchi Plant and Shunan
Plant, ZEON Logistical Materials Co., Ltd.;
Mizushima Plant, RIMTEC Corp.; Takaoka
Plant, ZEON Medical Inc.
Period Covered
April 1, 2006 to March 31, 2007

utilization of such resources for products.
In addition, the results of our waste oil/waste
solution efforts can be seen.
Also, focusing on efforts in energy saving activities in
the monomer extraction process, a reduction insteam consumption is continuing and the results are
improving.
Productivity enhancements in functional resin
production have improved unit energy consumption,
while unit manufacturing costs have also fallen.
Cost reduction through catalyst recovery/reuse iscontinuing and a result of approximately 480 million
yen can be seen.
Accounting Range

ZEON
Only

Includingaffiliates

Cost effect achieved through reclaiming and utilization as fuel
Cost reduction through energy saving
Reduction of industrial waste treatment cost
Cost reduction through reduction andrecovery/reuse of solvent and catalyst

1,028.5
170.2
2.3

1,032.0
173.2
9.7

483.1

492.9

Total

1,684.1

1,707.8

ZEON Only:
ZEON Head Office, R&D Center, Takaoka
Plant, Kawasaki Plant, Tokuyama Plant,
Mizushima Plant
Affiliates:
Kawagoe Plant and Otsu Plant, ZEON
Polymix Co., Ltd.; Sano Plant, Optes Inc.;
Ibaraki Plant, ZEON Kasei Co., Ltd.;
Mizushima Plant, Okayama Butadiene
Co., Ltd.; ZEON Chemicals Yonezawa
Co., Ltd.; Yamaguchi Plant and Shunan
Plant, ZEON Logistical Materials Co., Ltd.;
Mizushima Plant, RIMTEC Corp.; Takaoka
Plant, ZEON Medical Inc.
Period Covered
April 1, 2006 to March 31, 2007

33

Site Reports

Environment Protection Costs (Million Yen)

Description of effects

Performance2006 Environment Accounting Sheet

Effects of Environmental
Preservation

Management

Environmental Protection Costs
We are developing technology for minimizing waste
water, and reducing the volatile substances thatremain in products.
We are particularly focused on reducing butadiene
and acrylonitrile, which are toxic air pollutants, andon developing technology, designing equipment andestablishing operating conditions for reducing
substances that place a load on waste water, such as
T-N and COD.
Since 2003, we have not recorded in the accounts theinvestments or costs for developing products that
contribute to environment protection, but in 2006 theresearch and development expenditures was 730
million yen.
Management costs related to the environment also
increased, as we revised our legal handbook andreviewed the Responsible Care Report, deciding toissue an English version CSR Report to provide ouroverseas customers with information.
Affiliates concentrates on maintenance and improvement activities to renew or construct their own
environment management systems.

production of NBR (Acrylonitrile and Butadiene
Rubber) and other products that generate a highoutput of waste water by-products.
The nitrogen removal rate at the Kawasaki Plant has
improved significantly following the installation of
new nitrogen removal equipment which was started
in March 2007.
The amount of industrial waste for external final
landfill disposal was reduced by approximately 841
tons in 2006 from the previous year.
In particular, improved product sorting and recycling
procedures at the Takaoka Plant saw a 300 ton
reduction in total landfill disposal.
Regarding the PRTR (VOC) emission objective, thereduction of acrylonitrile and butadiene emissions
did not advance.
So the investment for continues improvement is now
planned for following the
fiscal year 2007 and it isComparison
Comparison
Including
ZEON Only
expected to control the
index
index
affiliates
exhaust below 1 ton each
ComparedtoComparedtoEnvironmental
Environmental
respectively by year 2010.
previousyear
previousyear
burdengoal
burden goal

Physical Effects
With regard to the environmental atmosphere
protection NOx emission has been improved andsteadily declining since converting the Tokuyama
Plant boiler to a low-NOx burner in 2003.
Waste water quality continues to meet therequirements of the Clean Water Act and agreementswith local governments.
The 6th regulation on total waste water dischargeadvances with new phosphorus and nitrogen targets
for 2009.
ZEON is busy developing new treatment techniquesand equipment modifications geared towards
obtaining these targets.
At the Kawasaki Plant the T-N (Total Nitrogen) levelin waste water has increased as a result of increased

Message

Capital Investment for Environmental Protection
The main investment in 2006 for pollution prevention
was the installation of new aeration tanks at the
Kawasaki Plant to reduce Total Nitrogen (T-N) and
COD levels in waste water.
Although the ratio of input materials (including
nitrogen) to finished product is rising and T-N
increased in 2006, this trend is expected to turnaround during 2007.
The Kawasaki Plant budgeted in 2005 for an upgrade
to its new industrial waste facility, which wasconstructed in 2006. It began operating in 2007 to
reduce environmental odors.
A new carbonization gas furnace - the first in the
Kawasaki municipality - incinerates waste products
by converting them to gas form. This process
generates far lower atmospheric emissions of carbon
monoxide, nitrogen oxide, sulfur oxide and dioxins
compared to conventional incineration.
The new facility does not offer any major increase inwaste treatment capacity; however it will reduce
toxicity concentrations by a factor of ten and cut
emission gases by 60%.
The Tokuyama Plant has made an additional
investment in replacing wooden STEC (synthetic
rubber packing cases) with recyclable metal
equivalents to reduce the overall environmental
impact of packaging.
As a concrete example of the energy saving efforts,
the cogeneration power facility in the Kawasaki plant

Environmental Protection Effects

Environment and Safety Activity Performance

CSR Report

Performance

Environmental Economic Perspective
Environmental Accounting

Since 2002, ZEON has publicly released its environmental
protection costs and environmental protection effects (physical effects and economic effects), in line with theguidelines issued by the Ministry of the Environment. This environmental accounting report has been created basedon the main items in the Ministry of the Environment’s “Environmental Accounting Guidebook 2002” and the“Procedures for Environmental Protection Cost Classification” (April 2003).

Environmental Protection Costs

was modernized to improve its power generation
efficiency.
At Mizushima Plant, we are working to boost
productivity in resin manufacturing and improve theefficiency of the monomer extractive distillation
process to minimize overall steam consumption.

Including Affiliates

Investment
AmountExpenses

688.7

2,362.8

Investment
Amount750.7(1) Pollution prevention costs

521.3

1,719.5

566.9

1,776.8(2) Global environment protection costs

120.1

238.1

136.4

242.7

(3) Resource recycling costs

47.3

405.2

47.4

432.7

Classification
1. Costs within the business area
Breakdown

ZEON Only

Expenses
2,452.2

2. Upstream and downstream costs

64.3

4.8

64.3

4.8

3. Management activity costs

18.0

119.7

20.7

133.2

4. Research and development costs

122.0

733.9

122.0

735.9

5. Social activity costs

0.0

39.4

0.1

40.2

6. Environmental damage handling costs

0.0

109.0

0.0

109.0

893.0

3,369.6957.9

3,475.3

Total

Amount (Million Yen)

Item

ZEON Only

Including Affiliates

Total investment amount within applicable period

25,947

26,370Total research and development costs
within applicable period

11,543

11,76932

Accounting Range
ZEON Only:
ZEON Head Office, R&D Center, Takaoka
Plant, Kawasaki Plant, Tokuyama Plant,
Mizushima Plant
Affiliates:
Kawagoe Plant and Otsu Plant, ZEON
Polymix Co., Ltd.; Sano Plant, Optes Inc.;
Ibaraki Plant, ZEON Kasei Co., Ltd.;
Mizushima Plant, Okayama Butadiene
Co., Ltd.; ZEON Chemicals Yonezawa
Co., Ltd.; Yamaguchi Plant and Shunan
Plant, ZEON Logistical Materials Co., Ltd.;
Mizushima Plant, RIMTEC Corp.; Takaoka
Plant, ZEON Medical Inc.
Period Covered
April 1, 2006 to March 31, 2007

SOx emissions (tons)

730

12

731

12

NOx emissions (tons)

480

21

481

21

COD emissions (tons)
CO2 emissions (amount ofcarbon) (tons)
Amount of final landfill ofindustrial waste (tons)

193

2

193

2

188,789

5,343

191,763

5,293

1,300

839

1,768

665

Total emission of PRTR
applicable substances (tons)

68

2

75

4

Economic Effects
The economic effects shown here include only thosefor which an actual monetary amount can berecognized. We do not include any risk avoidance
effects or supposed effects that are calculated byestimating incidental loses and damage costs that
may result if environmental preservation costs are
not paid.
The stated economic benefit is limited to that which
can be demonstrably verified in cash terms.
Industrial waste treatment costs are continuing to be
reduced as a result of our efforts in reducing losses in
the production process, waste oil and effective
Economic effects associated with environmental
preservation measures (million yen)
Description of effects

Accounting Range
ZEON Only:
ZEON Head Office, R&D Center, Takaoka
Plant, Kawasaki Plant, Tokuyama Plant,
Mizushima Plant
Affiliates:
Kawagoe Plant and Otsu Plant, ZEON
Polymix Co., Ltd.; Sano Plant, Optes Inc.;
Ibaraki Plant, ZEON Kasei Co., Ltd.;
Mizushima Plant, Okayama Butadiene
Co., Ltd.; ZEON Chemicals Yonezawa
Co., Ltd.; Yamaguchi Plant and Shunan
Plant, ZEON Logistical Materials Co., Ltd.;
Mizushima Plant, RIMTEC Corp.; Takaoka
Plant, ZEON Medical Inc.
Period Covered
April 1, 2006 to March 31, 2007

utilization of such resources for products.
In addition, the results of our waste oil/waste
solution efforts can be seen.
Also, focusing on efforts in energy saving activities in
the monomer extraction process, a reduction insteam consumption is continuing and the results are
improving.
Productivity enhancements in functional resin
production have improved unit energy consumption,
while unit manufacturing costs have also fallen.
Cost reduction through catalyst recovery/reuse iscontinuing and a result of approximately 480 million
yen can be seen.
Accounting Range

ZEON
Only

Includingaffiliates

Cost effect achieved through reclaiming and utilization as fuel
Cost reduction through energy saving
Reduction of industrial waste treatment cost
Cost reduction through reduction andrecovery/reuse of solvent and catalyst

1,028.5
170.2
2.3

1,032.0
173.2
9.7

483.1

492.9

Total

1,684.1

1,707.8

ZEON Only:
ZEON Head Office, R&D Center, Takaoka
Plant, Kawasaki Plant, Tokuyama Plant,
Mizushima Plant
Affiliates:
Kawagoe Plant and Otsu Plant, ZEON
Polymix Co., Ltd.; Sano Plant, Optes Inc.;
Ibaraki Plant, ZEON Kasei Co., Ltd.;
Mizushima Plant, Okayama Butadiene
Co., Ltd.; ZEON Chemicals Yonezawa
Co., Ltd.; Yamaguchi Plant and Shunan
Plant, ZEON Logistical Materials Co., Ltd.;
Mizushima Plant, RIMTEC Corp.; Takaoka
Plant, ZEON Medical Inc.
Period Covered
April 1, 2006 to March 31, 2007

33

Site Reports

Environment Protection Costs (Million Yen)

Description of effects

Performance2006 Environment Accounting Sheet

Effects of Environmental
Preservation

Management

Environmental Protection Costs
We are developing technology for minimizing waste
water, and reducing the volatile substances thatremain in products.
We are particularly focused on reducing butadiene
and acrylonitrile, which are toxic air pollutants, andon developing technology, designing equipment andestablishing operating conditions for reducing
substances that place a load on waste water, such as
T-N and COD.
Since 2003, we have not recorded in the accounts theinvestments or costs for developing products that
contribute to environment protection, but in 2006 theresearch and development expenditures was 730
million yen.
Management costs related to the environment also
increased, as we revised our legal handbook andreviewed the Responsible Care Report, deciding toissue an English version CSR Report to provide ouroverseas customers with information.
Affiliates concentrates on maintenance and improvement activities to renew or construct their own
environment management systems.

production of NBR (Acrylonitrile and Butadiene
Rubber) and other products that generate a highoutput of waste water by-products.
The nitrogen removal rate at the Kawasaki Plant has
improved significantly following the installation of
new nitrogen removal equipment which was started
in March 2007.
The amount of industrial waste for external final
landfill disposal was reduced by approximately 841
tons in 2006 from the previous year.
In particular, improved product sorting and recycling
procedures at the Takaoka Plant saw a 300 ton
reduction in total landfill disposal.
Regarding the PRTR (VOC) emission objective, thereduction of acrylonitrile and butadiene emissions
did not advance.
So the investment for continues improvement is now
planned for following the
fiscal year 2007 and it isComparison
Comparison
Including
ZEON Only
expected to control the
index
index
affiliates
exhaust below 1 ton each
ComparedtoComparedtoEnvironmental
Environmental
respectively by year 2010.
previousyear
previousyear
burdengoal
burden goal

Physical Effects
With regard to the environmental atmosphere
protection NOx emission has been improved andsteadily declining since converting the Tokuyama
Plant boiler to a low-NOx burner in 2003.
Waste water quality continues to meet therequirements of the Clean Water Act and agreementswith local governments.
The 6th regulation on total waste water dischargeadvances with new phosphorus and nitrogen targets
for 2009.
ZEON is busy developing new treatment techniquesand equipment modifications geared towards
obtaining these targets.
At the Kawasaki Plant the T-N (Total Nitrogen) levelin waste water has increased as a result of increased

Message

Capital Investment for Environmental Protection
The main investment in 2006 for pollution prevention
was the installation of new aeration tanks at the
Kawasaki Plant to reduce Total Nitrogen (T-N) and
COD levels in waste water.
Although the ratio of input materials (including
nitrogen) to finished product is rising and T-N
increased in 2006, this trend is expected to turnaround during 2007.
The Kawasaki Plant budgeted in 2005 for an upgrade
to its new industrial waste facility, which wasconstructed in 2006. It began operating in 2007 to
reduce environmental odors.
A new carbonization gas furnace - the first in the
Kawasaki municipality - incinerates waste products
by converting them to gas form. This process
generates far lower atmospheric emissions of carbon
monoxide, nitrogen oxide, sulfur oxide and dioxins
compared to conventional incineration.
The new facility does not offer any major increase inwaste treatment capacity; however it will reduce
toxicity concentrations by a factor of ten and cut
emission gases by 60%.
The Tokuyama Plant has made an additional
investment in replacing wooden STEC (synthetic
rubber packing cases) with recyclable metal
equivalents to reduce the overall environmental
impact of packaging.
As a concrete example of the energy saving efforts,
the cogeneration power facility in the Kawasaki plant

Environmental Protection Effects

Environment and Safety Activity Performance

Environmental Economic Perspective

About Environment and Safety
Investment
Not only are we making the environmental investments related to pollution prevention equipment andresource and energy conservation equipment that are
shown in the environmental accounting, but we arealso continuing to make investments to improvesafety and eliminate dangers.
The main investment has been on upgrading fire
100 Million Yen

Accumulated amount (ZEON Only)

250

P36

Takaoka Plant

P38

Kawasaki Plant

P40

150

Tokuyama Plant

P42

196

100

Mizushima Plant

P44

ZEON Kasei Co., Ltd.

P46

ZEON Polymix Co., Ltd.

P48

Optes Inc.

P49

ZEON Chemicals Yonezawa Co., Ltd.

P50

ZEON Logistical Materials Co., Ltd.

P51

RIMTEC Corp.

P52

ZEON Environmental Materials Co., Ltd.

P53

Tokyo Zairyo Co., Ltd.

P54ZEON Medical Inc.

P54

ZEON Chemicals L.P.

P56

ZEON Chemicals Europe Ltd.

P56

ZEON Chemicals Thailand Co., Ltd.

P57

ZEON Advanced Polymix Co., Ltd.

P57

Management

Investment AmountR&D Center

200

175

50
8

15

90

91

0

29

35

37

44

52

92

93

94

95

96

56

64

72

97

98

99

86

93

110

77

00

01

02

03

136

04

05

06

Accounting Range

Environment and Safety Investment Amount
ZEON
Only

Affiliates

Grand
Total

Environment-related

8.93

0.24

9.17

Safety-related

12.54

0.52

13.06

Total

21.47

0.76

22.23

Site Reports

2006 Investment Amount(100 Million Yen)

ZEON Only:
ZEON Head Office, R&D Center, Takaoka
Plant, Kawasaki Plant, Tokuyama Plant,
Mizushima Plant
Affiliates:
Kawagoe Plant and Otsu Plant, ZEON
Polymix Co., Ltd.; Sano Plant, Optes Inc.;
Ibaraki Plant, ZEON Kasei Co., Ltd.;
Mizushima Plant, Okayama Butadiene
Co., Ltd.; ZEON Chemicals Yonezawa
Co., Ltd.; Yamaguchi Plant and Shunan
Plant, ZEON Logistical Materials Co., Ltd.;
Mizushima Plant, RIMTEC Corp.; Takaoka
Plant, ZEON Medical Inc.
Period Covered
April 1, 2006 to March 31, 2007

Performance

Note that our affiliates also started environment
accounting in 2003. Their investment amounts areshown in the chart below.

34

The site report describe environment andsafety activities at the R&D Center, four plants in Japan,
nine affiliates and four overseas affiliates.

Messagedetectors and fire protection equipment andduplicating leak detectors and other detection
devices in order to provide a comprehensive early
warning system.
The total of these environment and safety investments is indicated in the graph below, which shows
the trend in recent years of the total accumulated
investments for the environment and safety area.

Site Reports

35

Environment and Safety Activity Performance

Environmental Economic Perspective

About Environment and Safety
Investment
Not only are we making the environmental investments related to pollution prevention equipment andresource and energy conservation equipment that are
shown in the environmental accounting, but we arealso continuing to make investments to improvesafety and eliminate dangers.
The main investment has been on upgrading fire
100 Million Yen

Accumulated amount (ZEON Only)

250

P36

Takaoka Plant

P38

Kawasaki Plant

P40

150

Tokuyama Plant

P42

196

100

Mizushima Plant

P44

ZEON Kasei Co., Ltd.

P46

ZEON Polymix Co., Ltd.

P48

Optes Inc.

P49

ZEON Chemicals Yonezawa Co., Ltd.

P50

ZEON Logistical Materials Co., Ltd.

P51

RIMTEC Corp.

P52

ZEON Environmental Materials Co., Ltd.

P53

Tokyo Zairyo Co., Ltd.

P54ZEON Medical Inc.

P54

ZEON Chemicals L.P.

P56

ZEON Chemicals Europe Ltd.

P56

ZEON Chemicals Thailand Co., Ltd.

P57

ZEON Advanced Polymix Co., Ltd.

P57

Management

Investment AmountR&D Center

200

175

50
8

15

90

91

0

29

35

37

44

52

92

93

94

95

96

56

64

72

97

98

99

86

93

110

77

00

01

02

03

136

04

05

06

Accounting Range

Environment and Safety Investment Amount
ZEON
Only

Affiliates

Grand
Total

Environment-related

8.93

0.24

9.17

Safety-related

12.54

0.52

13.06

Total

21.47

0.76

22.23

Site Reports

2006 Investment Amount(100 Million Yen)

ZEON Only:
ZEON Head Office, R&D Center, Takaoka
Plant, Kawasaki Plant, Tokuyama Plant,
Mizushima Plant
Affiliates:
Kawagoe Plant and Otsu Plant, ZEON
Polymix Co., Ltd.; Sano Plant, Optes Inc.;
Ibaraki Plant, ZEON Kasei Co., Ltd.;
Mizushima Plant, Okayama Butadiene
Co., Ltd.; ZEON Chemicals Yonezawa
Co., Ltd.; Yamaguchi Plant and Shunan
Plant, ZEON Logistical Materials Co., Ltd.;
Mizushima Plant, RIMTEC Corp.; Takaoka
Plant, ZEON Medical Inc.
Period Covered
April 1, 2006 to March 31, 2007

Performance

Note that our affiliates also started environment
accounting in 2003. Their investment amounts areshown in the chart below.

34

The site report describe environment andsafety activities at the R&D Center, four plants in Japan,
nine affiliates and four overseas affiliates.

Messagedetectors and fire protection equipment andduplicating leak detectors and other detection
devices in order to provide a comprehensive early
warning system.
The total of these environment and safety investments is indicated in the graph below, which shows
the trend in recent years of the total accumulated
investments for the environment and safety area.

Site Reports

35

Site Report

Site Report

CSR Report

R&D Center

Founded: 1959
Address: 1-2-1 Yako, Kawasaki-ku, Kawasaki City,
Kanagawa Prefecture 210-8507
Tel: 044-276-3721 Fax: 044-276-3720

The R&D Center develops innovative product technologies that are “original
and without comparison” and “inimitable” in order to modify and improve
conventional product materials. In new fields, the creative skills of the R&D
Center enable technology to be developed that delivers the required highperformance product materials for the electronics and IT industries.
The staff take environment, safety and health issues into account from theinitial stages of research.

2006 Environment and Safety Activity Policy

Environment and Safety Activities
The R&D Center concentrated on the following
activities in line with the 2006 Environment and
Safety Policy.

p

25

3

3

20
15
10

13
3

5

1

0

27

1

1
0
99

2

1

0
98

32

28

2

00

01

02

0
03

No. of safety inspections

0

0
04

0
05

New Employee Training ( emergency response
procedures conducted by the fire department officials)

Trend of workplace
injury occurrence

8
7
6

06

No. of near-misses

5
4

Chemical Substance Handling Restrictions andManagement
Safety management was performed for chemical
substances by giving consideration to environment,
safety and health issues. An authorization system wasestablished where, from the initial stages of research,
the Permission of the Environment and Safety Unit
was required whenever particularly poisonous, toxic
or dangerous chemical substances were purchased,
used or disposed.
36

Chemical Safety Training
1.Chemical classification and labeling regulations
and internal handling procedures
2.Chemical substance regulations and safety
management (for all employees)
3.Chemical substance safety training (for newly
promoted employees and research leaders)

Improvement of
new employee
training

3
2
1

2

0
00

01

New or transferred
employees

02

03Less than
10 years

Accidents not resulting in work leave04
10 yearsor more05

06
Accidents resulting
in work leave“The Horror of Fire and Explosions!”: a Practical
Training Course by an External Organization

37

Site Reports

No. of safety inspections of
new experiments

430

No. of near-misses associatedwith new experiments

535

Environment and safety training programs
1.New employee training (for all employees whojoined the company in 2006)(1)Safety knowledge and practical skill training
once every month (total of 10 times)(2)“Train the trainer” for OJT instructors of new
recruits and recently transferred employees(3)New recruit training based on facility-specifictraining programs
2.Level-specific safety training for middle-ranking
researchers(1)Safety training by organizational layer (for newly
promoted employees and research leaders)(2)Hands-on safety training for middle-ranking
researchers (out-sourced)
3. Full workforce training(1)Safe and stable production technology training
performed by the head of the Environment and
Safety Section at the plant (for all employees)(2)Reviews of past workplace accidents by
experienced foremer plant managers(3)Safety training based on the Workplace Injury
Elimination Campaign (for all employees)

Performancey40

Environment and Safety Training and Chemical
Safety Training
Environment and safety training consists of a
combination of classroom-style sessions run by theEnvironment and Safety Office along with OJT (Onthe Job Training) in the workplace.
The training program for new and transferredpersonnel has been expanding since 2002, with the
happy result that the last few years have seen zero
workplace accidents involving new and transferredpersonnel.
In 2006 there were four workplace accidents
involving middle-ranking researchers with around ten
years’ experience. Although none of the accidents

resulted in the employee taking leave, the safety
training program for middle-ranking researchers has
been upgraded in response to this situation.
The priority areas for the current financial year aredescribed below.

Management

Safety Inspections for New Experiments
The Center performed advance safety inspections for
new experiments whenever new test equipment orwork was introduced, or when a new chemical
substance was being handled. Permission was given
to start the experiment only after making sure there
would be no negative effects on the environment,
safety or health.
The introduction of prior risk assessments and danger
evaluation with respect to equipment, procedures andhandling of chemicals and other substances reduced
the incidence of equipment problems and accident
near-misses during new experiments.

Reduction of industrial Waste
To reduce industrial waste, the R&D Center has fully
implemented separate collection for its waste and is
promoting the recycling of disposed plastic (which
result in high emissions). Further, they have hired
external contractors to perform heat recovery
processes and are working to reduce the amount ofindustrial waste disposed in landfills. We perform
inspections every year to make sure that theexternally contracted work is being processed
correctly.

Message(1)Promoting awareness of the importance of safe
and stable production technology(2)Restructure the research facilities so that safety
and environment protection is the top priority(3)Proceed steadily with research and development
environment improvements(4)Enhance education and training, and pass on
information about safety technology

General Manager, R&D Center
Tadao Natsuume (Managing Director)

Site Report

Site Report

CSR Report

R&D Center

Founded: 1959
Address: 1-2-1 Yako, Kawasaki-ku, Kawasaki City,
Kanagawa Prefecture 210-8507
Tel: 044-276-3721 Fax: 044-276-3720

The R&D Center develops innovative product technologies that are “original
and without comparison” and “inimitable” in order to modify and improve
conventional product materials. In new fields, the creative skills of the R&D
Center enable technology to be developed that delivers the required highperformance product materials for the electronics and IT industries.
The staff take environment, safety and health issues into account from theinitial stages of research.

2006 Environment and Safety Activity Policy

Environment and Safety Activities
The R&D Center concentrated on the following
activities in line with the 2006 Environment and
Safety Policy.

p

25

3

3

20
15
10

13
3

5

1

0

27

1

1
0
99

2

1

0
98

32

28

2

00

01

02

0
03

No. of safety inspections

0

0
04

0
05

New Employee Training ( emergency response
procedures conducted by the fire department officials)

Trend of workplace
injury occurrence

8
7
6

06

No. of near-misses

5
4

Chemical Substance Handling Restrictions andManagement
Safety management was performed for chemical
substances by giving consideration to environment,
safety and health issues. An authorization system wasestablished where, from the initial stages of research,
the Permission of the Environment and Safety Unit
was required whenever particularly poisonous, toxic
or dangerous chemical substances were purchased,
used or disposed.
36

Chemical Safety Training
1.Chemical classification and labeling regulations
and internal handling procedures
2.Chemical substance regulations and safety
management (for all employees)
3.Chemical substance safety training (for newly
promoted employees and research leaders)

Improvement of
new employee
training

3
2
1

2

0
00

01

New or transferred
employees

02

03Less than
10 years

Accidents not resulting in work leave04
10 yearsor more05

06
Accidents resulting
in work leave“The Horror of Fire and Explosions!”: a Practical
Training Course by an External Organization

37

Site Reports

No. of safety inspections of
new experiments

430

No. of near-misses associatedwith new experiments

535

Environment and safety training programs
1.New employee training (for all employees whojoined the company in 2006)(1)Safety knowledge and practical skill training
once every month (total of 10 times)(2)“Train the trainer” for OJT instructors of new
recruits and recently transferred employees(3)New recruit training based on facility-specifictraining programs
2.Level-specific safety training for middle-ranking
researchers(1)Safety training by organizational layer (for newly
promoted employees and research leaders)(2)Hands-on safety training for middle-ranking
researchers (out-sourced)
3. Full workforce training(1)Safe and stable production technology training
performed by the head of the Environment and
Safety Section at the plant (for all employees)(2)Reviews of past workplace accidents by
experienced foremer plant managers(3)Safety training based on the Workplace Injury
Elimination Campaign (for all employees)

Performancey40

Environment and Safety Training and Chemical
Safety Training
Environment and safety training consists of a
combination of classroom-style sessions run by theEnvironment and Safety Office along with OJT (Onthe Job Training) in the workplace.
The training program for new and transferredpersonnel has been expanding since 2002, with the
happy result that the last few years have seen zero
workplace accidents involving new and transferredpersonnel.
In 2006 there were four workplace accidents
involving middle-ranking researchers with around ten
years’ experience. Although none of the accidents

resulted in the employee taking leave, the safety
training program for middle-ranking researchers has
been upgraded in response to this situation.
The priority areas for the current financial year aredescribed below.

Management

Safety Inspections for New Experiments
The Center performed advance safety inspections for
new experiments whenever new test equipment orwork was introduced, or when a new chemical
substance was being handled. Permission was given
to start the experiment only after making sure there
would be no negative effects on the environment,
safety or health.
The introduction of prior risk assessments and danger
evaluation with respect to equipment, procedures andhandling of chemicals and other substances reduced
the incidence of equipment problems and accident
near-misses during new experiments.

Reduction of industrial Waste
To reduce industrial waste, the R&D Center has fully
implemented separate collection for its waste and is
promoting the recycling of disposed plastic (which
result in high emissions). Further, they have hired
external contractors to perform heat recovery
processes and are working to reduce the amount ofindustrial waste disposed in landfills. We perform
inspections every year to make sure that theexternally contracted work is being processed
correctly.

Message(1)Promoting awareness of the importance of safe
and stable production technology(2)Restructure the research facilities so that safety
and environment protection is the top priority(3)Proceed steadily with research and development
environment improvements(4)Enhance education and training, and pass on
information about safety technology

General Manager, R&D Center
Tadao Natsuume (Managing Director)

Plant Activities

Site Report
CSR Report

Takaoka Plant

The Takaoka Plant was established in 1956 as a plant for
PVC production. It began the production of a specialty
synthetic rubber called hydrogenated nitrile rubber in
1983. After that, it began its foray into new areas and is currently making huge advancements in theareas of medical products and fabrication of cycloolefin polymer, an environmentally friendly next
generation fluorine solvent, and expanding into optical component applications. A research department
was formed as well to assist the full-scale research activities on those new areas in 2005. The plant is
continuing the transformation into an up-and-coming future-oriented plant.

Environment and Safety Activities(1)Reducing the amount of harmful substanceemission
We are making efforts to reduce the amount ofemissions through closed process methods andare expanding our facilities for further reductionof emissions of un-reacted vinyl chloride monomer
and organic solvents.
We are making efforts to improve recovery andrecycling rate of organic solvents used in
manufacturing through upgrading facilities.

120

Energy consumption/
consumption rate Index

2.5

Consumption rate index goal

100

80

35,000 (90% or lower of the 1990 level)230,000

3.4

2.2

1.9

1.7

1.5 1.4
1.2
0.72

0
97

98

99

00

01

02

03

04

05

06

kl/y 10,000

Goal

0.5

60
25,00020,00040

15,000
20

5,000
0

0
99

00

01

02

03

04

05

06

50th anniversary of Takaoka Plant

Environmental Related Data from the Takaoka Plant
Year
Vinyl chloride
monomer**
PRTR applicable
substances**
Industrial waste
Emission into
the Atmosphere

Waste water

Energy38(3)Clean-up activities in conjunction with local
government
On May 30(“Zero Trash Day”) 2007, employees
from the Takaoka Plant took part in a clean-up
campaign in the general vicinity of the Plant
together with the local residents’ association.
Activities included clearing the roads of rubbish,
collecting empty cans and removing weeds.

Amount of consumption (tons)
Amount of emissions (tons)
Amount of consumption (tons)
Amount of emissions (tons)
Amount of production (tons)
Amount of final landfill (tons)
Amount of CO2 emissions (tons-C*)
Amount of SOx emissions (tons)
Amount of NOx emissions (tons)
Total effluent waste water discharge (thousand m3)
Amount of COD emission (tons)
Amount of total phosphorus discharge (tons)
Amount of total nitrogen discharge (tons)
Total amount (crude oil equivalent, kl)
Consumption rate index(1990 = 100)of carbon converted* Amount
Totals for vinyl chloride monomer and PRTR Law listed substances were modified in 2004 to** show
consumption and emissions for ZEON Corporation only (production subcontractor Shin
Dai-Ichi Vinyl Co.,Ltd. not included)

99

00

01

02

03

04

05

06

47,00068
49,247106
11,2942,811
18,388
55
56
6,131
50
3
24
27,84144,00088
46,146
127
7,904
2,176
17,811
39
59
5,545
57
2
5
27,13945,20053
47,145
96
7,569
1,909
16,772
22
47
6,158
36
2
5
24,89741,60040
42,338
83
6,068
1,692
17,494
30
56
6,464
35
4
7
26,46240,30040
42,575
85
5,255
1,497
16,856
53
70
6,649
46
3
25
26,341

785
1
1,439
4
5,143
1,437
17,760
41
69
6,441
29
1
15
27,494

656
1
1,312
4
4,358
1,114
17,567
33
31
5,901
31
1
15
28,692

777
1
1,405
5
3,536
895
17,638
51
50
6,587
33
1
16
31,417

114

101

106

98

90

83

80

75

39

Site Reports

07

2.7 2.8

1

95 96

0.67

Energy Consumption

3.1 3.3

Consumption rate index (compared to 1990 levels)

Energy Consumption
Consumption rate index

31.5(2)Local community participation in the ZEON
Dainoryo (Large Summer) Festival
The ZEON Dainoryo Festival was held on July 29,
2006 in the parking lot in front of the Takaoka
Plant.
The festival attracted visitors from neighboring
local government precincts, including many
children, and was a resounding success.

ZEON Dainoryo Festival

Amount of final landfill ofindustrial wastes (95 - 06)

1,000 tons

(1)50th anniversary of the Takaoka Plant
A ceremony to commemorate the 50th anniversaryof the Takaoka Plant, held on October 13, 2006
was attended by distinguished guests from alllevels of government (including neighboring local
governments) and members of parliament andtheir associates.
After a speech from former Chairman Nakano
representing the Company, the celebrations kicked
off with a traditional barrel-opening ceremony
featuring the governor of Toyama prefecture, themayors of Takaoka and Himi cities and company
representatives.

Performance

3.5(4) Resource and energy saving
We are committed to reducing specific energy
consumption to below 90% from 1990 levels by theyear 2010, in line with the Kyoto Protocol targets.
Although the 90% target was successfully achievedin 2003, we continue to promote operational
manage-ment programs and strive for further
reductions through the use of automatedproduction technology.

Living Together with the Local Community

Management(2)Reducing industrial waste
Around 80% of industrial waste is excess sludge
from waste water treatment facilities.
Resins in the sludge can be separated out forrecycling, thereby reducing the volume of waste
sent to landfill.
De - watering processing equipment will be set up
in 2007, and further equipment modifications arecontinuing.
We are recycling glass and converting waste oil tofuel in conjunction with waste disposal
contractors.

General Manager, Takaoka Plant
Yoshio Umezawa (Corporate Officer)

Message(3)Reducing the burden on the atmosphere andwater quality
Operational modifications to the boilers in linewith steam consumption within the plant havehelped to smooth out fluctuations in emission
levels of atmospheric pollutants.
We use a range of measure to combat emissions ofpolluting substances into waterways, including
stable operation of waste water treatment
facilities and crisis management involving
detection systems to prevent accidental emission
incidents.

Founded: 1956
Address: 630 Ogino, Takaoka City, Toyama Prefecture
933-8516
Tel: 0766-21-0252 Fax: 0766-21-4568

Plant Activities

Site Report
CSR Report

Takaoka Plant

The Takaoka Plant was established in 1956 as a plant for
PVC production. It began the production of a specialty
synthetic rubber called hydrogenated nitrile rubber in
1983. After that, it began its foray into new areas and is currently making huge advancements in theareas of medical products and fabrication of cycloolefin polymer, an environmentally friendly next
generation fluorine solvent, and expanding into optical component applications. A research department
was formed as well to assist the full-scale research activities on those new areas in 2005. The plant is
continuing the transformation into an up-and-coming future-oriented plant.

Environment and Safety Activities(1)Reducing the amount of harmful substanceemission
We are making efforts to reduce the amount ofemissions through closed process methods andare expanding our facilities for further reductionof emissions of un-reacted vinyl chloride monomer
and organic solvents.
We are making efforts to improve recovery andrecycling rate of organic solvents used in
manufacturing through upgrading facilities.

120

Energy consumption/
consumption rate Index

2.5

Consumption rate index goal

100

80

35,000 (90% or lower of the 1990 level)230,000

3.4

2.2

1.9

1.7

1.5 1.4
1.2
0.72

0
97

98

99

00

01

02

03

04

05

06

kl/y 10,000

Goal

0.5

60
25,00020,00040

15,000
20

5,000
0

0
99

00

01

02

03

04

05

06

50th anniversary of Takaoka Plant

Environmental Related Data from the Takaoka Plant
Year
Vinyl chloride
monomer**
PRTR applicable
substances**
Industrial waste
Emission into
the Atmosphere

Waste water

Energy38(3)Clean-up activities in conjunction with local
government
On May 30(“Zero Trash Day”) 2007, employees
from the Takaoka Plant took part in a clean-up
campaign in the general vicinity of the Plant
together with the local residents’ association.
Activities included clearing the roads of rubbish,
collecting empty cans and removing weeds.

Amount of consumption (tons)
Amount of emissions (tons)
Amount of consumption (tons)
Amount of emissions (tons)
Amount of production (tons)
Amount of final landfill (tons)
Amount of CO2 emissions (tons-C*)
Amount of SOx emissions (tons)
Amount of NOx emissions (tons)
Total effluent waste water discharge (thousand m3)
Amount of COD emission (tons)
Amount of total phosphorus discharge (tons)
Amount of total nitrogen discharge (tons)
Total amount (crude oil equivalent, kl)
Consumption rate index(1990 = 100)of carbon converted* Amount
Totals for vinyl chloride monomer and PRTR Law listed substances were modified in 2004 to** show
consumption and emissions for ZEON Corporation only (production subcontractor Shin
Dai-Ichi Vinyl Co.,Ltd. not included)

99

00

01

02

03

04

05

06

47,00068
49,247106
11,2942,811
18,388
55
56
6,131
50
3
24
27,84144,00088
46,146
127
7,904
2,176
17,811
39
59
5,545
57
2
5
27,13945,20053
47,145
96
7,569
1,909
16,772
22
47
6,158
36
2
5
24,89741,60040
42,338
83
6,068
1,692
17,494
30
56
6,464
35
4
7
26,46240,30040
42,575
85
5,255
1,497
16,856
53
70
6,649
46
3
25
26,341

785
1
1,439
4
5,143
1,437
17,760
41
69
6,441
29
1
15
27,494

656
1
1,312
4
4,358
1,114
17,567
33
31
5,901
31
1
15
28,692

777
1
1,405
5
3,536
895
17,638
51
50
6,587
33
1
16
31,417

114

101

106

98

90

83

80

75

39

Site Reports

07

2.7 2.8

1

95 96

0.67

Energy Consumption

3.1 3.3

Consumption rate index (compared to 1990 levels)

Energy Consumption
Consumption rate index

31.5(2)Local community participation in the ZEON
Dainoryo (Large Summer) Festival
The ZEON Dainoryo Festival was held on July 29,
2006 in the parking lot in front of the Takaoka
Plant.
The festival attracted visitors from neighboring
local government precincts, including many
children, and was a resounding success.

ZEON Dainoryo Festival

Amount of final landfill ofindustrial wastes (95 - 06)

1,000 tons

(1)50th anniversary of the Takaoka Plant
A ceremony to commemorate the 50th anniversaryof the Takaoka Plant, held on October 13, 2006
was attended by distinguished guests from alllevels of government (including neighboring local
governments) and members of parliament andtheir associates.
After a speech from former Chairman Nakano
representing the Company, the celebrations kicked
off with a traditional barrel-opening ceremony
featuring the governor of Toyama prefecture, themayors of Takaoka and Himi cities and company
representatives.

Performance

3.5(4) Resource and energy saving
We are committed to reducing specific energy
consumption to below 90% from 1990 levels by theyear 2010, in line with the Kyoto Protocol targets.
Although the 90% target was successfully achievedin 2003, we continue to promote operational
manage-ment programs and strive for further
reductions through the use of automatedproduction technology.

Living Together with the Local Community

Management(2)Reducing industrial waste
Around 80% of industrial waste is excess sludge
from waste water treatment facilities.
Resins in the sludge can be separated out forrecycling, thereby reducing the volume of waste
sent to landfill.
De - watering processing equipment will be set up
in 2007, and further equipment modifications arecontinuing.
We are recycling glass and converting waste oil tofuel in conjunction with waste disposal
contractors.

General Manager, Takaoka Plant
Yoshio Umezawa (Corporate Officer)

Message(3)Reducing the burden on the atmosphere andwater quality
Operational modifications to the boilers in linewith steam consumption within the plant havehelped to smooth out fluctuations in emission
levels of atmospheric pollutants.
We use a range of measure to combat emissions ofpolluting substances into waterways, including
stable operation of waste water treatment
facilities and crisis management involving
detection systems to prevent accidental emission
incidents.

Founded: 1956
Address: 630 Ogino, Takaoka City, Toyama Prefecture
933-8516
Tel: 0766-21-0252 Fax: 0766-21-4568

Site Report

Site Report
CSR Report

Kawasaki Plant

The Kawasaki Plant has a long and successful
history. In 1959 it was the first factory in Japan toindustrialize “acrylonitrile butadiene rubber”, which isa special synthetic rubber. This plant is in the Greater Tokyo metropolitan area and so has had theopportunity to continuously perform Responsible Care activities. The Plant is committed to ongoinginvestment in air and water pollution countermeasures and associated technological improvements,
particularly with respect to reducing toxic chemical emissions and industrial waste output frommanufacturing processes. We continuing to develop such technology with the objective of creating a plantthat is as environmentally friendly as possible in 2007.

Environment and Safety Activities

40
35
30
25
20
15
10
5
0
99

45

tons

00

01

02

03

04

05

06

Trends of acrylonitrile emissions

40
35
30
25
20

2006 Topics(1)New treatment tanks were added to the waste
water treatment facility in February 2007 to reduce
total nitrogen levels.
(2)The addition of a new low-emission incinerator in
conjunction with the incinerator upgrade wasapproved by the City of Kawasaki. The new incinerator was built between December 2006 and May
2007.

10
5
0
99

00

01

02

03

04

05

06
Clean-up of factory area

Foreign visitors on
factory inspection tour

Environmental Related Data from the Kawasaki Plant

Harmfulsubstances
PRTR applicable
substances
Industrial
Waste
Emission
into theAtmosphere

Energy*Amount of carbon converted

Year

99

00

01

02

03

04

05

06

Amount of butadiene consumption (tons)
Amount of butadiene emission (tons)
Amount of acrylonitrile consumption (tons)
Amount of acrylonitrile emission (tons)
Amount of consumption (tons)
Amount of emission (tons)
Amount of production (tons)
Amount of final landfill (tons)
Amount of CO2 emission (tons-C*)
Amount of SOx emission (tons)
Amount of NOx emission (tons)
Total effluent discharge (1,000m3)
Amount of COD emission (tons)
Amount of total phosphorus discharge (tons)
Amount of total nitrogen discharge (tons)
Total amount (crude oil equivalent, kl)

31,50945
10,886
31
56,571
81
64,976
168
14,400
1
31
1,869
55
0
64
21,89030,64945
10,837
36
63,27389
52,11560
13,911
1
28
1,942
49
0
49
22,806

29,05839
11,25738
57,42984
48,60650
13,356
2
29
1,942
56
0
70
21,96627,33534
10,93729
55,62969
70,261
230
13,226
1
29
1,726
49
1
68
20,911

29,87632
12,33632
59,00170
63,75924
13,077
1
27
1,825
57
1
107
20,95530,72629
12,95338
59,53073
44,758238
13,077
3
28
2,006
53
1
107
20,836

29,694
8
12,34524
58,96054
37,158520
13,894
1
18
1,906
52
1
118
20,49028,278912,44624
56,75156
47,826
189
11,918
2
28
1,988
55
1
125
20,092

109

107

108

110

101

99

103

101

Consumption rate index(1990 = 100)41

Site Reports

More waste water treatment tanks were added in
2006.
An analysis of current operating conditions identified
a potential improvement in the total nitrogen removal
rate from 30% to at least 50% via the use of improved
technology. Further optimization of operating
conditions will be undertaken in 2007.

Treatment tanks

40

In preparation for accidents or natural disasters, thePlant carries out disaster drills twice every year incooperation with the Disaster Preparation Organization.
The Kawasaki Plant actively pursues interaction withthe wider community by hosting a large number ofdomestic and foreign students and inviting representatives from neighboring companies and neighborhood association committees to key events at the
Plant.
Since the Plant wants to be firmly rooted in the local
community, it is involved in local clean-up campaigns
and picks up trash from the streets near the plant.

15

Waste water

Incinerator underconstruction

Living Together with the Local Community

Performance(3)Reduction of Air and Water Environmental
Burdens
2007 will see the new incinerator reach fulloperating capacity as part of a program to reduce
atmospheric emissions of NOx, carbon monoxideand soot.
The Plant is also continuing to reduce total
nitrogen from the discharge effluent water as acountermeasure for reducing the environmental
burden on water.

(4)Resource and Energy Conservation
The target for unit energy consumption is a 10%
reduction relative to the 1990 level to be achievedby 2010.
A new gas engine introduced as part of the cogeneration facility upgrade in 2005 formallycommenced operation in 2006, and operational
efficiency is on the increase according to plan.
Meanwhile, the introduction of environmental
equipment and higher levels of energy
consumption by non-production departments
necessitates further work on reducing unit energy
consumption and cutting carbon dioxide
emissions.

Trend of butadiene emissions

Management(2)Reduction of Industrial Waste
The Plant separates all its waste for collection andis working towards greater reuse of resources(recycling and heat recovery).
2006 saw landfill disposal decreased from 520 to
190 tons, due mainly to a systematic program
designed to enable incineration of waste water
treatment sludge at the plants.
The new incinerator facility was completed in May
2007.
With the new incinerator reaching full operation,
landfill volumes are expected to decrease further.

tons

General Manager, Kawasaki Plant
Makoto Yamamoto (Corporate Officer)

Message(1)Reduction of Toxic Chemical Emissions
The full utilization of the catalytic combustor thatwas introduced in 2004 has reduced emissions of
butadiene, the main raw material in synthetic
rubber and synthetic latex, to 8.5tons.
The conversion to closed process methods helped
to boost the processing capacity of the
combustion system in 2006.
It is expected that butadiene consumption will
drop to approximately 4 tons in 2007.
The new acrylonitrile recovery process began
operation in 2005.
The recovery process underwent modifications
during 2006 to improve the utilization rate.
Acrylonitrile consumption is expected to dropfrom 24 to 16 tons in 2007.
New technologies currently in development will
reduce butadiene and acrylonitrile consumption
still further.

45

Founded: 1959
Address: 1-2-1 Yako, Kawasaki-ku, Kawasaki City,
Kanagawa Prefecture 210-8507
Tel: 044-276-3700 Fax: 044-276-3720

Site Report

Site Report
CSR Report

Kawasaki Plant

The Kawasaki Plant has a long and successful
history. In 1959 it was the first factory in Japan toindustrialize “acrylonitrile butadiene rubber”, which isa special synthetic rubber. This plant is in the Greater Tokyo metropolitan area and so has had theopportunity to continuously perform Responsible Care activities. The Plant is committed to ongoinginvestment in air and water pollution countermeasures and associated technological improvements,
particularly with respect to reducing toxic chemical emissions and industrial waste output frommanufacturing processes. We continuing to develop such technology with the objective of creating a plantthat is as environmentally friendly as possible in 2007.

Environment and Safety Activities

40
35
30
25
20
15
10
5
0
99

45

tons

00

01

02

03

04

05

06

Trends of acrylonitrile emissions

40
35
30
25
20

2006 Topics(1)New treatment tanks were added to the waste
water treatment facility in February 2007 to reduce
total nitrogen levels.
(2)The addition of a new low-emission incinerator in
conjunction with the incinerator upgrade wasapproved by the City of Kawasaki. The new incinerator was built between December 2006 and May
2007.

10
5
0
99

00

01

02

03

04

05

06
Clean-up of factory area

Foreign visitors on
factory inspection tour

Environmental Related Data from the Kawasaki Plant

Harmfulsubstances
PRTR applicable
substances
Industrial
Waste
Emission
into theAtmosphere

Energy*Amount of carbon converted

Year

99

00

01

02

03

04

05

06

Amount of butadiene consumption (tons)
Amount of butadiene emission (tons)
Amount of acrylonitrile consumption (tons)
Amount of acrylonitrile emission (tons)
Amount of consumption (tons)
Amount of emission (tons)
Amount of production (tons)
Amount of final landfill (tons)
Amount of CO2 emission (tons-C*)
Amount of SOx emission (tons)
Amount of NOx emission (tons)
Total effluent discharge (1,000m3)
Amount of COD emission (tons)
Amount of total phosphorus discharge (tons)
Amount of total nitrogen discharge (tons)
Total amount (crude oil equivalent, kl)

31,50945
10,886
31
56,571
81
64,976
168
14,400
1
31
1,869
55
0
64
21,89030,64945
10,837
36
63,27389
52,11560
13,911
1
28
1,942
49
0
49
22,806

29,05839
11,25738
57,42984
48,60650
13,356
2
29
1,942
56
0
70
21,96627,33534
10,93729
55,62969
70,261
230
13,226
1
29
1,726
49
1
68
20,911

29,87632
12,33632
59,00170
63,75924
13,077
1
27
1,825
57
1
107
20,95530,72629
12,95338
59,53073
44,758238
13,077
3
28
2,006
53
1
107
20,836

29,694
8
12,34524
58,96054
37,158520
13,894
1
18
1,906
52
1
118
20,49028,278912,44624
56,75156
47,826
189
11,918
2
28
1,988
55
1
125
20,092

109

107

108

110

101

99

103

101

Consumption rate index(1990 = 100)41

Site Reports

More waste water treatment tanks were added in
2006.
An analysis of current operating conditions identified
a potential improvement in the total nitrogen removal
rate from 30% to at least 50% via the use of improved
technology. Further optimization of operating
conditions will be undertaken in 2007.

Treatment tanks

40

In preparation for accidents or natural disasters, thePlant carries out disaster drills twice every year incooperation with the Disaster Preparation Organization.
The Kawasaki Plant actively pursues interaction withthe wider community by hosting a large number ofdomestic and foreign students and inviting representatives from neighboring companies and neighborhood association committees to key events at the
Plant.
Since the Plant wants to be firmly rooted in the local
community, it is involved in local clean-up campaigns
and picks up trash from the streets near the plant.

15

Waste water

Incinerator underconstruction

Living Together with the Local Community

Performance(3)Reduction of Air and Water Environmental
Burdens
2007 will see the new incinerator reach fulloperating capacity as part of a program to reduce
atmospheric emissions of NOx, carbon monoxideand soot.
The Plant is also continuing to reduce total
nitrogen from the discharge effluent water as acountermeasure for reducing the environmental
burden on water.

(4)Resource and Energy Conservation
The target for unit energy consumption is a 10%
reduction relative to the 1990 level to be achievedby 2010.
A new gas engine introduced as part of the cogeneration facility upgrade in 2005 formallycommenced operation in 2006, and operational
efficiency is on the increase according to plan.
Meanwhile, the introduction of environmental
equipment and higher levels of energy
consumption by non-production departments
necessitates further work on reducing unit energy
consumption and cutting carbon dioxide
emissions.

Trend of butadiene emissions

Management(2)Reduction of Industrial Waste
The Plant separates all its waste for collection andis working towards greater reuse of resources(recycling and heat recovery).
2006 saw landfill disposal decreased from 520 to
190 tons, due mainly to a systematic program
designed to enable incineration of waste water
treatment sludge at the plants.
The new incinerator facility was completed in May
2007.
With the new incinerator reaching full operation,
landfill volumes are expected to decrease further.

tons

General Manager, Kawasaki Plant
Makoto Yamamoto (Corporate Officer)

Message(1)Reduction of Toxic Chemical Emissions
The full utilization of the catalytic combustor thatwas introduced in 2004 has reduced emissions of
butadiene, the main raw material in synthetic
rubber and synthetic latex, to 8.5tons.
The conversion to closed process methods helped
to boost the processing capacity of the
combustion system in 2006.
It is expected that butadiene consumption will
drop to approximately 4 tons in 2007.
The new acrylonitrile recovery process began
operation in 2005.
The recovery process underwent modifications
during 2006 to improve the utilization rate.
Acrylonitrile consumption is expected to dropfrom 24 to 16 tons in 2007.
New technologies currently in development will
reduce butadiene and acrylonitrile consumption
still further.

45

Founded: 1959
Address: 1-2-1 Yako, Kawasaki-ku, Kawasaki City,
Kanagawa Prefecture 210-8507
Tel: 044-276-3700 Fax: 044-276-3720

Site Report

CSR Report

Site Report

Tokuyama Plant

The Tokuyama Plant started operations in 1965. The Plant
uses the “ZEON Process of Butadiene” (GPB), its original
extraction distillation technology, to produce the butadiene
raw material. It uses this to manufacture the synthetic rubber and synthetic latex that is then sold on the global market.
Recently we have also made plans to increase production of polymerized toner becoming the first in the world tosuccessfully industrialize this form of toner. Given the close proximity of this Plant to residential areas, we placeconsiderable importance on maintaining a dialogue with the local community. In 2006, we were granted official
accreditation for high-pressure gas safety self inspection procedures. The entire workforce at the Plant is committed tocreating an environment friendly workplace that is safe and stable and trusted by the local community.

Environment Safety Activities

tons

Emissions of the substances
subject to the PRTR Law

500,000

600

400,000500
300,000

400

Amount of emission
Amount of consumption

300

General Manager, Tokuyama Plant
Hiroshi Asahina (Corporate Officer)

200,000

200(4)Resource and Energy Conservation
The entire workforce at the Plant is working
towards the target of a 60% reduction in unit
energy consumption relative to 1990 levels.
The target has not yet been achieved but weare making steady progress.
We remains committed to energy saving
activities.

liter/ton

Energy unit Consumption andrate index

200
180

105
160

100,000

100

140
0

0
99

00

01

02

03

04

05

100

06

unit consumption
rate index

120
tons

Amount of final landfill ofindustrial waste

700

100

600
Amount of final landfill

500

Living Together with the Local Community(1)Women’s team joins the 29th annual cutter
race at the Tokuyama Nonta Festival
The annual cutter race is a common sight at
festivals in the region.
This year, Tokuyama Plant entered both men’s andwomen’s teams in the festival.

400
300
200
100

90
99

00

01

02

03

04

05

06

0
99

2)Water
Effective activities for reducing emissions of COD
and total nitrogen have been performed since
2002.
These have produced successes such as theinstallation of new dewatering presses at waste
water treatment and improvements to theprocessing conditions.

tons

01

02

03

04

05

06

Amount of emission into
the atmosphere

1,000

SOX
NOX

800
600
400
Nonta Festival
Cutter race0

Environmental Related Data from the Tokuyama Plant
99

tons

00

01

02

03

04

05

06

Amount of total COD and total
Amount of COD
nitrogen emission
emission

180
160

Amount of total
nitrogen discharge

140
120
100
80
60

Year
PRTR applicable
substances
Harmfulsubstances
Industrial
Waste
Emission
into theAtmosphere

40

Waste water

20
0
99

42

Higashi-gawa river clean-up

200

00

01

02

03

04

05

06

EnergyAmount of consumption (tons)
Amount of emission (tons)
Amount of Butadiene emission (tons)
Amount of Acrylonitrile emission (tons)
Amount of production (tons)
Amount of final landfill (tons)
Amount of CO2 emission (tons-c*)
Amount of SOx emission (tons)
Amount of NOx emission (tons)
Total effluent discharge (1,000m3)
Amount of COD discharge (tons)
Amount of total phosphorus discharge (tons)
Amount of total nitrogen discharge (tons)
Total amount (crude oil equivalent, kl)
Consumption rate index(1990 = 100)

99

*Amount of carbon converted
00

01

02

03

04

05

06

397,770 406,473 361,690 432,694 398,557 398,387 395,821 380,312
23
126
495
541
577
505
67
23
24
45
26
35
24
19
16
17
0.7
4
9
4
10
0.2
0.8
0.6
2,916
2,709
2,950
2,676
3,095
4,042
3,650
5,151
260
295
603
401
469
216
134
81
72,630 75,651
75,632 78,253 73,577 72,834 71,615 70,352
640
731
823
733
864
666
684
674
326
423
372
387
411
309
384
315
8,904
8,361
8,561
8,619
6,725
9,822
8,080
8,293
148
156
143
90
110
108
138
95
0.7
0.3
0.7
0.5
0.8
0.6
0.8
0.8
54
62
52
46
54
38
52
49
97,965 101,560
94,449 106,249 100,057 99,088 96,729 95,281
103

103

104

100

100

99

98

100

43

Site Reports(3)Reduction of Air and Water Environmental
Burdens1)AirNOx emissions are steadily declining thanks toequipment modifications such as the low-NOx
burners installed in the boiler combustion facility.
Since 2002, we have been measuring SOx
emissions based on sulfur input levels. We willcontinue to pursue equipment modifications
designed to keep emissions at a low level on aconsistent basis.

00

Performance(2)Fifty employees in a Volunteer Clean-up
Campaign on the Higashi-gawa river
Including the plant foreman and several section
managers took part in a clean-up the river, whichruns adjacent to the Tokuyama Plant.
Together with the local community, we helped toclean the river up.

Management(2) Reduction of Industrial waste
Our ultimate target is to reduce final landfill
disposal of industrial waste to 10% of the 1995
figure of 800 tons. This target (80 tons) is definedas zero emissions.
In 2006, landfill waste was just 81 tons, thanks to arange of recycling and other initiatives.

110

Message(1) Reduction of Toxic Chemical Emissions
Atmospheric emissions of toxic substances andsubstances subject to the PRTR law have been
greatly reduced when the full processing of drying
gas emissions to the boiler for combustion wasachieved. The Plant is committed to performing
more activities to further reduce emissions.
With the upgrade of the butadiene recovery systemcompleted in June 2007, we have taken a major
step towards the eventual target of zero emissions.

tons

700

Founded: 1965
Address: 2-1 Nachi, Shunan City, Yamaguchi Prefecture745-0023
Tel: 0834-21-8501 Fax: 0834-21-8793

Site Report

CSR Report

Site Report

Tokuyama Plant

The Tokuyama Plant started operations in 1965. The Plant
uses the “ZEON Process of Butadiene” (GPB), its original
extraction distillation technology, to produce the butadiene
raw material. It uses this to manufacture the synthetic rubber and synthetic latex that is then sold on the global market.
Recently we have also made plans to increase production of polymerized toner becoming the first in the world tosuccessfully industrialize this form of toner. Given the close proximity of this Plant to residential areas, we placeconsiderable importance on maintaining a dialogue with the local community. In 2006, we were granted official
accreditation for high-pressure gas safety self inspection procedures. The entire workforce at the Plant is committed tocreating an environment friendly workplace that is safe and stable and trusted by the local community.

Environment Safety Activities

tons

Emissions of the substances
subject to the PRTR Law

500,000

600

400,000500
300,000

400

Amount of emission
Amount of consumption

300

General Manager, Tokuyama Plant
Hiroshi Asahina (Corporate Officer)

200,000

200(4)Resource and Energy Conservation
The entire workforce at the Plant is working
towards the target of a 60% reduction in unit
energy consumption relative to 1990 levels.
The target has not yet been achieved but weare making steady progress.
We remains committed to energy saving
activities.

liter/ton

Energy unit Consumption andrate index

200
180

105
160

100,000

100

140
0

0
99

00

01

02

03

04

05

100

06

unit consumption
rate index

120
tons

Amount of final landfill ofindustrial waste

700

100

600
Amount of final landfill

500

Living Together with the Local Community(1)Women’s team joins the 29th annual cutter
race at the Tokuyama Nonta Festival
The annual cutter race is a common sight at
festivals in the region.
This year, Tokuyama Plant entered both men’s andwomen’s teams in the festival.

400
300
200
100

90
99

00

01

02

03

04

05

06

0
99

2)Water
Effective activities for reducing emissions of COD
and total nitrogen have been performed since
2002.
These have produced successes such as theinstallation of new dewatering presses at waste
water treatment and improvements to theprocessing conditions.

tons

01

02

03

04

05

06

Amount of emission into
the atmosphere

1,000

SOX
NOX

800
600
400
Nonta Festival
Cutter race0

Environmental Related Data from the Tokuyama Plant
99

tons

00

01

02

03

04

05

06

Amount of total COD and total
Amount of COD
nitrogen emission
emission

180
160

Amount of total
nitrogen discharge

140
120
100
80
60

Year
PRTR applicable
substances
Harmfulsubstances
Industrial
Waste
Emission
into theAtmosphere

40

Waste water

20
0
99

42

Higashi-gawa river clean-up

200

00

01

02

03

04

05

06

EnergyAmount of consumption (tons)
Amount of emission (tons)
Amount of Butadiene emission (tons)
Amount of Acrylonitrile emission (tons)
Amount of production (tons)
Amount of final landfill (tons)
Amount of CO2 emission (tons-c*)
Amount of SOx emission (tons)
Amount of NOx emission (tons)
Total effluent discharge (1,000m3)
Amount of COD discharge (tons)
Amount of total phosphorus discharge (tons)
Amount of total nitrogen discharge (tons)
Total amount (crude oil equivalent, kl)
Consumption rate index(1990 = 100)

99

*Amount of carbon converted
00

01

02

03

04

05

06

397,770 406,473 361,690 432,694 398,557 398,387 395,821 380,312
23
126
495
541
577
505
67
23
24
45
26
35
24
19
16
17
0.7
4
9
4
10
0.2
0.8
0.6
2,916
2,709
2,950
2,676
3,095
4,042
3,650
5,151
260
295
603
401
469
216
134
81
72,630 75,651
75,632 78,253 73,577 72,834 71,615 70,352
640
731
823
733
864
666
684
674
326
423
372
387
411
309
384
315
8,904
8,361
8,561
8,619
6,725
9,822
8,080
8,293
148
156
143
90
110
108
138
95
0.7
0.3
0.7
0.5
0.8
0.6
0.8
0.8
54
62
52
46
54
38
52
49
97,965 101,560
94,449 106,249 100,057 99,088 96,729 95,281
103

103

104

100

100

99

98

100

43

Site Reports(3)Reduction of Air and Water Environmental
Burdens1)AirNOx emissions are steadily declining thanks toequipment modifications such as the low-NOx
burners installed in the boiler combustion facility.
Since 2002, we have been measuring SOx
emissions based on sulfur input levels. We willcontinue to pursue equipment modifications
designed to keep emissions at a low level on aconsistent basis.

00

Performance(2)Fifty employees in a Volunteer Clean-up
Campaign on the Higashi-gawa river
Including the plant foreman and several section
managers took part in a clean-up the river, whichruns adjacent to the Tokuyama Plant.
Together with the local community, we helped toclean the river up.

Management(2) Reduction of Industrial waste
Our ultimate target is to reduce final landfill
disposal of industrial waste to 10% of the 1995
figure of 800 tons. This target (80 tons) is definedas zero emissions.
In 2006, landfill waste was just 81 tons, thanks to arange of recycling and other initiatives.

110

Message(1) Reduction of Toxic Chemical Emissions
Atmospheric emissions of toxic substances andsubstances subject to the PRTR law have been
greatly reduced when the full processing of drying
gas emissions to the boiler for combustion wasachieved. The Plant is committed to performing
more activities to further reduce emissions.
With the upgrade of the butadiene recovery systemcompleted in June 2007, we have taken a major
step towards the eventual target of zero emissions.

tons

700

Founded: 1965
Address: 2-1 Nachi, Shunan City, Yamaguchi Prefecture745-0023
Tel: 0834-21-8501 Fax: 0834-21-8793

Site report

CSR Report

Site Report

The Mizushima Plant was founded in 1968 as apart of the Mizushima Industrial Zone in Kurashiki
City. This Plant is a symbol of ZEON. It brings
together ZEON’s advanced, independently
developed technology that cannot be imitated by other companies. We respond to customer needs acrossa wide range of fields. For example, it has licensed its butadiene extraction facilities for use at 47 plants in
19 countries around the world. As a “C5 Fraction Total Use Business”, it is also involved with opticalmaterial resins aromatic chemicals and petroleum resin.
We are committed to pursuing innovative production technology in order to ensure safe and stableproduction operations and win the confidence of the local community.

Mizushima Plant
Environment Safety Activities
The Plant works to create a safe and stable workplace by following the General Manager’s “ABC
Safety System” (being sure to perform the basics
properly).

tons

5
4

4.7

2
2.4

0
00

*1 Combined rubbish processing facility that handles bothordinary waste from the Kurashiki municipality and industrial
waste from the Mizushima industrial complex. Jointly owned
by 10 companies.

0

0

0

04

05

06

(3)Reduction of Air and Water Environmental
Burdens
Improved management of waste water generation
at individual facilities has helped to minimize load
fluctuation at the waste water treatment plant,
thereby enabling better treatment of waste water
output.

A program run by the Ministry of Education, Culture, Sports,*2 Scienceand Technology which acknowledges schools with astrong focus on science and math subjects, designed to
identify and nurture the potential leading scientists of the
future.

(4)Resource and Energy Conservation
As a voluntary target, the Plant is working towards
reducing its energy use to 90 % of the 1990 level by
2010.
Already we are down to 91.6 %, thanks to initiatives undertaken in 2006.
Unit energy consumption is declining due to a
combination of reduced steam usage and heatrecovery strategies.
tons

Factory inspection andwalking tour

Amount of landfill of industrial waste

5,000
4,500
4,000

Super Science High School

3,500

Environmental Related Data from the Mizushima Plant

3,000
2,500

Year

4392

2,000

PRTR applicable
substances
Harmfulsubstances

3260

1,500
1,000

1859
1091

500

1185

1032

264

109

0
00

01

02

03

04

05

06

Industrial
Waste
Emission
into theAtmosphere
Waste water

Energy44

Amount of consumption (tons)
Amount of emission (tons)
Amount of butadiene consumption (tons)
Amount of butadiene emission (tons)
Before volume reduction (tons)
After volume reduction (tons)
Amount of final landfill (tons)
Amount of CO2 emission (tons-C*)
Amount of SOx emission (tons)
Amount of NOx emission (tons)
Total effluent discharge (1,000m3)
Amount of COD emission (tons)
Amount of total phosphorus discharge (tons)
Total nitrogen discharge (tons)
Total amount (crude oil equivalent, kl)
Consumption rate index(1990 = 100)

99

*Amount of carbon converted
00

01

02

03

516,092 489,028 266,725 303,967 342,931
2
6
34
7
23
145,476 146,879 143,583 153,919 163,521
0
0
5.6
2.4
4.7
35,663 57,975
55,821 62,575 56,398
6,142
6,256
6,623
5,807
5,425
1,185
1,091
4,392
1,859
3,260
130,109 95,371
90,016 102,320 109,147
3.5
1.9
1.7
3.3
0.5
76
58
134
70
121
2,021
1,782
3,559
2,025
2,148
13
13
22
13
15
0.5
0.4
1.4
0.5
0.6
21
23
40
22
19
188,178 138,178 128,654 145,725 154,962
101

104

101

97

94

04

05

06

335,458 336,308 343,930
1
1
1
149,435 154,510 154,899
000
60,975 57,425 57,773
7,891
8,366
7,217
109
1,032
264
111,326 111,194 119,216
3
3
1
87
81
68
2,559
2,290
2,242
15
14
14
0.7
1.0
0.5
20
22
13
159,927 160,179 175,037
93

93

92

45

Site Reports(2)Reduction of Industrial Waste
ZEON is one of the investors in Mizushima Ecoworks*1, a resource recycling type of waste
processing facility. It started operation in 2005,
since then the final landfill disposal amount has
been dramatically reduced from 1,032 tons to 264
tons in 2005, and to 109 tons in 2006.
We are also promoting the three R’s (reduce, reuse
and recycle) in a bid to cut industrial waste output
further.

003

Performance(1) Reduction of Toxic Chemical Emissions
The plant discontinued the use of benzene in 2001,
and after completing the recovery and closed
processing system for butadiene in 2002, theamount of emissions into the air has been zero.
We are dedicated to ongoing development ofenvironmental strategies including measures toreduce VOC emissions.

002clean-up campaigns in the vicinity of the factory andsurrounding areas.
We are nurturing closer integration with the local
area through joint public-private-academic sector
initiatives such as factory tours of the Mizushima
Plant and classroom sessions extolling theimportance and fun of science for the benefit ofscience students at Kurashiki Amagi prefectural highschool (a designated Super Science High School*2
under the Ministry of Education, Culture, Sports,
Science and Technology program) in Okayama
prefecture.
These initiatives, which continue in 2007, aredesigned to stimulate an interest in science andtechnology among young people.

Management

ABC program

01

The Plant’s objective is to “Create a Plant that istrusted by the local community”. It proactively
communicates with the local community throughpublic activities such as meetings to report businessactivities and meetings to explain plans for new
facilities.
It also supports and participates in the events ofresidents’ associations. Further, the Plant joins
together with neighboring companies in the
Mizushima Industrial Zone to perform joint disasterplanning to reassure the people living in the local
community.
We are served as regional sponsor for the Okayama
region in the Responsible Care Local-Area dialogue
Meeting in 2006, which involved factory inspections
and walking tours with locals and helped in local

Message

3

1

General Manager, Mizushima Plant
Masafumi Miyamoto(Managing Director and Executive Director)

Living Together with the Local Community

Trend of butadiene emissions

6

Founded: 1968
Address: 2767-1 Aza niihama, Shionasu, Kojima,
Kurashiki City, Okayama Prefecture 711-8511
Tel: 086-475-0021 Fax: 086-475-1169

Site report

CSR Report

Site Report

The Mizushima Plant was founded in 1968 as apart of the Mizushima Industrial Zone in Kurashiki
City. This Plant is a symbol of ZEON. It brings
together ZEON’s advanced, independently
developed technology that cannot be imitated by other companies. We respond to customer needs acrossa wide range of fields. For example, it has licensed its butadiene extraction facilities for use at 47 plants in
19 countries around the world. As a “C5 Fraction Total Use Business”, it is also involved with opticalmaterial resins aromatic chemicals and petroleum resin.
We are committed to pursuing innovative production technology in order to ensure safe and stableproduction operations and win the confidence of the local community.

Mizushima Plant
Environment Safety Activities
The Plant works to create a safe and stable workplace by following the General Manager’s “ABC
Safety System” (being sure to perform the basics
properly).

tons

5
4

4.7

2
2.4

0
00

*1 Combined rubbish processing facility that handles bothordinary waste from the Kurashiki municipality and industrial
waste from the Mizushima industrial complex. Jointly owned
by 10 companies.

0

0

0

04

05

06

(3)Reduction of Air and Water Environmental
Burdens
Improved management of waste water generation
at individual facilities has helped to minimize load
fluctuation at the waste water treatment plant,
thereby enabling better treatment of waste water
output.

A program run by the Ministry of Education, Culture, Sports,*2 Scienceand Technology which acknowledges schools with astrong focus on science and math subjects, designed to
identify and nurture the potential leading scientists of the
future.

(4)Resource and Energy Conservation
As a voluntary target, the Plant is working towards
reducing its energy use to 90 % of the 1990 level by
2010.
Already we are down to 91.6 %, thanks to initiatives undertaken in 2006.
Unit energy consumption is declining due to a
combination of reduced steam usage and heatrecovery strategies.
tons

Factory inspection andwalking tour

Amount of landfill of industrial waste

5,000
4,500
4,000

Super Science High School

3,500

Environmental Related Data from the Mizushima Plant

3,000
2,500

Year

4392

2,000

PRTR applicable
substances
Harmfulsubstances

3260

1,500
1,000

1859
1091

500

1185

1032

264

109

0
00

01

02

03

04

05

06

Industrial
Waste
Emission
into theAtmosphere
Waste water

Energy44

Amount of consumption (tons)
Amount of emission (tons)
Amount of butadiene consumption (tons)
Amount of butadiene emission (tons)
Before volume reduction (tons)
After volume reduction (tons)
Amount of final landfill (tons)
Amount of CO2 emission (tons-C*)
Amount of SOx emission (tons)
Amount of NOx emission (tons)
Total effluent discharge (1,000m3)
Amount of COD emission (tons)
Amount of total phosphorus discharge (tons)
Total nitrogen discharge (tons)
Total amount (crude oil equivalent, kl)
Consumption rate index(1990 = 100)

99

*Amount of carbon converted
00

01

02

03

516,092 489,028 266,725 303,967 342,931
2
6
34
7
23
145,476 146,879 143,583 153,919 163,521
0
0
5.6
2.4
4.7
35,663 57,975
55,821 62,575 56,398
6,142
6,256
6,623
5,807
5,425
1,185
1,091
4,392
1,859
3,260
130,109 95,371
90,016 102,320 109,147
3.5
1.9
1.7
3.3
0.5
76
58
134
70
121
2,021
1,782
3,559
2,025
2,148
13
13
22
13
15
0.5
0.4
1.4
0.5
0.6
21
23
40
22
19
188,178 138,178 128,654 145,725 154,962
101

104

101

97

94

04

05

06

335,458 336,308 343,930
1
1
1
149,435 154,510 154,899
000
60,975 57,425 57,773
7,891
8,366
7,217
109
1,032
264
111,326 111,194 119,216
3
3
1
87
81
68
2,559
2,290
2,242
15
14
14
0.7
1.0
0.5
20
22
13
159,927 160,179 175,037
93

93

92

45

Site Reports(2)Reduction of Industrial Waste
ZEON is one of the investors in Mizushima Ecoworks*1, a resource recycling type of waste
processing facility. It started operation in 2005,
since then the final landfill disposal amount has
been dramatically reduced from 1,032 tons to 264
tons in 2005, and to 109 tons in 2006.
We are also promoting the three R’s (reduce, reuse
and recycle) in a bid to cut industrial waste output
further.

003

Performance(1) Reduction of Toxic Chemical Emissions
The plant discontinued the use of benzene in 2001,
and after completing the recovery and closed
processing system for butadiene in 2002, theamount of emissions into the air has been zero.
We are dedicated to ongoing development ofenvironmental strategies including measures toreduce VOC emissions.

002clean-up campaigns in the vicinity of the factory andsurrounding areas.
We are nurturing closer integration with the local
area through joint public-private-academic sector
initiatives such as factory tours of the Mizushima
Plant and classroom sessions extolling theimportance and fun of science for the benefit ofscience students at Kurashiki Amagi prefectural highschool (a designated Super Science High School*2
under the Ministry of Education, Culture, Sports,
Science and Technology program) in Okayama
prefecture.
These initiatives, which continue in 2007, aredesigned to stimulate an interest in science andtechnology among young people.

Management

ABC program

01

The Plant’s objective is to “Create a Plant that istrusted by the local community”. It proactively
communicates with the local community throughpublic activities such as meetings to report businessactivities and meetings to explain plans for new
facilities.
It also supports and participates in the events ofresidents’ associations. Further, the Plant joins
together with neighboring companies in the
Mizushima Industrial Zone to perform joint disasterplanning to reassure the people living in the local
community.
We are served as regional sponsor for the Okayama
region in the Responsible Care Local-Area dialogue
Meeting in 2006, which involved factory inspections
and walking tours with locals and helped in local

Message

3

1

General Manager, Mizushima Plant
Masafumi Miyamoto(Managing Director and Executive Director)

Living Together with the Local Community

Trend of butadiene emissions

6

Founded: 1968
Address: 2767-1 Aza niihama, Shionasu, Kojima,
Kurashiki City, Okayama Prefecture 711-8511
Tel: 086-475-0021 Fax: 086-475-1169

Affiliate Activities

CSR Report

Site Report

ZEON Kasei Co.,Ltd
In 1981 the Manufactured Goods Division of the ZEON was made independent andestablished as ZEON Kasei Co., Ltd.
It has grown steadily since then, taking the lead role in the Specialty Manufacturing
Goods Field.
Ibaraki Plant Front Gate Sign

Environmental Protection

Living Together with the Local Community

Strength improvement data for deteriorated
slate (built in 1971; 29 years old)
Base materials
JIS requirements (1971)
BeforeAfter

46

Bend failureload test
Over 3430N(100%)
2545N(74%)
3511N(102%)

Shock
resistance test
120cm
100cm
120cm

Emergency response drill at the Ibaraki Plant
The entire Ibaraki Plant took part in emergency drills
in November 2006 conducted in conjunction with thelocal Bando Fire Station (part of the Shunan Fire
Department).

1-6-2 Marunouchi, Chiyoda-ku, Tokyo,
100-0005(Shin Marunouchi Center Building)Tel: 03-5208-5111 Fax: 03-5208-5290
Locations
Ibaraki Plant
Main business Manufacturing & Sales of PVC compounds,
construction and packing materials

education model school in Ibaraki Prefecture, islocated close to the ZEON Kasei’s Ibaraki Plant, andseveral graduates from the school now work at ZEON
Kasei.
Many students from Iwainishi High ride their bicycles
to school along the national highway, and ZEON
Kasei has donated road safety campaign photographs
as a community service.
Completion of the new functional sheeting
factory
Construction of the new functional sheeting factory
finished in February 2007. The completion ceremony
was attended by the chairman of the Iwai Chamber ofCommerce, the head of the Bando Fire Station andthe director of the Kuguido swamp reclamation
project.
We are committed to maintaining positive andconstructive relations with local residents andcontributing in a meaningful way to the local area.

ISO9001 accreditation
In January 2007, the processed goods production
section of the Ibaraki Plant, which had previously
been outside the scope of ISO9001, was also
accredited, bringing the entire Plant under ISO9001.
A joint accreditation application in conjunction withthe head office and the R&D center is planned for
February 2008. This will provide a fully integrated
quality management system covering production,
distribution, technology and research.
ISO14001 accreditation renewal
The ISO14001 accreditation of head office and the
R&D center was renewed in May 2007, while the
Ibaraki Plant was inspected for accreditation in
September 2006.

Instruction with local high school
Iwainishi Prefectural High School, the only Morality
47

Site Reports

The photographs show
before and after the repairs

Head office

PerformanceeShin Nikkei

Name
ZEON Kasei Co., Ltd.
Established
October 1, 1981
Capital
462 million yen
No.of Employees 66

Management

New roofing on KC plant facility at Ibaraki Plant
reduces waste output
The KC plant facility at the Ibaraki Plant wasconstructed in 1965 with a slate roof.
Some 40 years after completion, the roof was starting
to warp and leaks were beginning to appear.
The original plan to completely replace the roof wasabandoned, due to the enormous cost as well as
concerns about the impact on production processesof foreign matter generated during construction.
It was also felt that the slate tiles would represent a
considerable volume of waste when removed.
After considerable research, it was decided to repair
the slate roof using a “chemical calcion pack”
technique.
The chemical calcion pack was a success on many
levels: it restored the strength of the slate roof to therequired level as stipulated in JIS standards; it cost
three times less than replacing the roof outright; it
had minimal effect on the ongoing operations of the
KC plant; and the main component of the calcion
material provided excellent thermal insulation.
It took just one month to complete the roof repairs.

Company Profile
Environmental materials
ZEON Kasei has successfully developed a lead-freecompound for use in combined aluminum-resin
window sash members.
The window sash consists of an aluminum exterior
with low thermal conductivity resin on the interiorside, combined with double-glazing. It offers vastly
superior heat and noise shielding and characteristics
compared to the conventional single-layer glass withaluminum sash. It also reduces condensation, thereby
helping to extend the life span of the home.
The Environment Ministry has officially acknowledged the environmental credentials of this productin helping to combat global warming by reducing
energy consumption and CO2 emissions, and is
promoting its usage in colder regions.
The surface resin material is made from a PVC blendthat exhibits good thermal insulation and flame
resistance characteristics, is highly durable, and canbe shaped and molded readily while holding its
dimensions well. Conventional PVC composites usedin building materials often employ lead-basedstabilizers to improve molding and shaping characteristics.
We have already developed materials such as foam
and wood flour for products in the construction
materials field. The lead-free sash compoundsubstantially improves molding and shaping
performance and constitutes a major step forward inthis area.
The sash material has already been adopted byseveral leading sash manufacturers, creating prospects for further increases in demand.

Message

Low NOx boilers
The new factory, completed in January 2007, boasts
new environmentally friendly high-efficiency
commercial boilers.
The new boilers are more efficient and generate
fewer nitrogen oxides. The two cans per two unitsinter-operation regime uses less heavy oil fuel.

Affiliate Activities

CSR Report

Site Report

ZEON Kasei Co.,Ltd
In 1981 the Manufactured Goods Division of the ZEON was made independent andestablished as ZEON Kasei Co., Ltd.
It has grown steadily since then, taking the lead role in the Specialty Manufacturing
Goods Field.
Ibaraki Plant Front Gate Sign

Environmental Protection

Living Together with the Local Community

Strength improvement data for deteriorated
slate (built in 1971; 29 years old)
Base materials
JIS requirements (1971)
BeforeAfter

46

Bend failureload test
Over 3430N(100%)
2545N(74%)
3511N(102%)

Shock
resistance test
120cm
100cm
120cm

Emergency response drill at the Ibaraki Plant
The entire Ibaraki Plant took part in emergency drills
in November 2006 conducted in conjunction with thelocal Bando Fire Station (part of the Shunan Fire
Department).

1-6-2 Marunouchi, Chiyoda-ku, Tokyo,
100-0005(Shin Marunouchi Center Building)Tel: 03-5208-5111 Fax: 03-5208-5290
Locations
Ibaraki Plant
Main business Manufacturing & Sales of PVC compounds,
construction and packing materials

education model school in Ibaraki Prefecture, islocated close to the ZEON Kasei’s Ibaraki Plant, andseveral graduates from the school now work at ZEON
Kasei.
Many students from Iwainishi High ride their bicycles
to school along the national highway, and ZEON
Kasei has donated road safety campaign photographs
as a community service.
Completion of the new functional sheeting
factory
Construction of the new functional sheeting factory
finished in February 2007. The completion ceremony
was attended by the chairman of the Iwai Chamber ofCommerce, the head of the Bando Fire Station andthe director of the Kuguido swamp reclamation
project.
We are committed to maintaining positive andconstructive relations with local residents andcontributing in a meaningful way to the local area.

ISO9001 accreditation
In January 2007, the processed goods production
section of the Ibaraki Plant, which had previously
been outside the scope of ISO9001, was also
accredited, bringing the entire Plant under ISO9001.
A joint accreditation application in conjunction withthe head office and the R&D center is planned for
February 2008. This will provide a fully integrated
quality management system covering production,
distribution, technology and research.
ISO14001 accreditation renewal
The ISO14001 accreditation of head office and the
R&D center was renewed in May 2007, while the
Ibaraki Plant was inspected for accreditation in
September 2006.

Instruction with local high school
Iwainishi Prefectural High School, the only Morality
47

Site Reports

The photographs show
before and after the repairs

Head office

PerformanceeShin Nikkei

Name
ZEON Kasei Co., Ltd.
Established
October 1, 1981
Capital
462 million yen
No.of Employees 66

Management

New roofing on KC plant facility at Ibaraki Plant
reduces waste output
The KC plant facility at the Ibaraki Plant wasconstructed in 1965 with a slate roof.
Some 40 years after completion, the roof was starting
to warp and leaks were beginning to appear.
The original plan to completely replace the roof wasabandoned, due to the enormous cost as well as
concerns about the impact on production processesof foreign matter generated during construction.
It was also felt that the slate tiles would represent a
considerable volume of waste when removed.
After considerable research, it was decided to repair
the slate roof using a “chemical calcion pack”
technique.
The chemical calcion pack was a success on many
levels: it restored the strength of the slate roof to therequired level as stipulated in JIS standards; it cost
three times less than replacing the roof outright; it
had minimal effect on the ongoing operations of the
KC plant; and the main component of the calcion
material provided excellent thermal insulation.
It took just one month to complete the roof repairs.

Company Profile
Environmental materials
ZEON Kasei has successfully developed a lead-freecompound for use in combined aluminum-resin
window sash members.
The window sash consists of an aluminum exterior
with low thermal conductivity resin on the interiorside, combined with double-glazing. It offers vastly
superior heat and noise shielding and characteristics
compared to the conventional single-layer glass withaluminum sash. It also reduces condensation, thereby
helping to extend the life span of the home.
The Environment Ministry has officially acknowledged the environmental credentials of this productin helping to combat global warming by reducing
energy consumption and CO2 emissions, and is
promoting its usage in colder regions.
The surface resin material is made from a PVC blendthat exhibits good thermal insulation and flame
resistance characteristics, is highly durable, and canbe shaped and molded readily while holding its
dimensions well. Conventional PVC composites usedin building materials often employ lead-basedstabilizers to improve molding and shaping characteristics.
We have already developed materials such as foam
and wood flour for products in the construction
materials field. The lead-free sash compoundsubstantially improves molding and shaping
performance and constitutes a major step forward inthis area.
The sash material has already been adopted byseveral leading sash manufacturers, creating prospects for further increases in demand.

Message

Low NOx boilers
The new factory, completed in January 2007, boasts
new environmentally friendly high-efficiency
commercial boilers.
The new boilers are more efficient and generate
fewer nitrogen oxides. The two cans per two unitsinter-operation regime uses less heavy oil fuel.

Affiliate Activities

CSR Report

Site Report

ZEON Polymix Co., Ltd.

Optes Incorporated

ZEON Polymix Co., Ltd. was first established as Kinki
Rubber Processing, Co., Ltd. in 1967 in order to expand into
the carbon master batch (CM) field as a part of the ZEON's
rubber business developments. In 1989 it merged with
Higashi Rubber Processing Co., Ltd. and changed its nameto ZEON Polymix Co., Ltd.

Optes Inc. was established in 1990 as a joint venture between the
ZEON and Sekinos Co., Ltd., as a strategic processor of a cycloolefin
polymer that had been developed by ZEON. In 1997, Optes Inc.
became a wholly-owned subsidiary of the ZEON.
It designs, develops, manufactures and sells plastic optical parts, andis equipped with advanced processing technology such as injection
molding, vacuum deposition processing and molten extrusion.

Kawagoe Plant
Otsu Plant

Toyama Plant

Sano Plant

Environmental Protection

941-1 Kamiigusa, Kawajima-machi, Hikigun,
Saitama Prefecture 350-0152
Tel: 049-297-1511 Fax: 049-297-4709
Kawagoe Plant and Otsu Plant
Locations
Main business Molding CM and synthetic rubber CM (synthetic and natural rubbers blended with carbon
black and other chemicals and supplied to
manufacturers as processed rubber intermediate goods for the manufacture of auto partsand other molded rubber products)
Head office

1-6-2 Marunouchi, Chiyoda-ku, Tokyo,
100-8246(Shin Marunouchi Center Building)Tel: 03-3216-1793 Fax: 03-3216-1777
Locations
Sano Plant and Toyama Plant
Main business ZEONOR Film®, Light Diffusion Panel, prisms,
micro lenses

Living Together with the Local Community
Employees from the Otsu and Kawagoe Plants help
clean up the local environment by picking up trashfrom the roads in the vicinity of the Plant andregularly cleaning up illegally dumped trash.
Otsu Plant also acts as a rest station for the Otsu City
Marathon (staged by the Otsu City Athletic
Association), providing toilet and indoor facilities forparticipants.

Various Lenses

ZEONOR Film

Light Diffusion Panel

ent

Living Together with the Local Community
Both the Sano and Toyama Plants employees help
clean up the local environment in the vicinity of theirplants to live with local community.
Clean-up worknear the Otsu
Plant

tem
em

Some 200 m of the factory rooftop has been given
over to plantation in a bid to compensate for thegeneral shortage of natural growth in the area andcontribute to the environment.
2

We prepares for the unexpected by systematically
performing natural disaster preparation drills, fire
drills, and by training staff to make emergency calls.

We prepare for the unexpected by systematically
performing natural disaster preparation drills, fire
drills, and by training staff to make emergency calls.
We are committed to the highest standards ofhonesty and integrity,
as exemplified by thestringent CSR internal
control system.
Rooftop planting at the Toyama Plant
Natural disaster
preparation drill(Kawagoe Plant)

Natural disaster preparation drill

49

Site Reports

48

Head office

Performance

NB: CM = Carbon Master batch
SHEQMS: Safety, Health, Environment and Quality
Management System

Optes Incorporated
NameApril 2, 1990
Established
400 million yen
CapitalNo.of Employees 476

3.Reduction of industrial waste: 30% reduction inrubber scrap output relative to 2006

Otsu Plant during the Otsu
City marathon

We are now in the fourth year of an accredited
environmental management system (EMS) program.
In the three years of the program the company iscontinuing with improvements based on the fiveenvironment items (research and development of
products for reducing environmental burdens, green
procurement, reduction of industrial waste,
reduction of noise and vibration, reduction of energyused).
Over the next three years, stage two of the Environmental Impact program will see employees working
with the local community to make ZEON Polymix amore environmentally conscious business.
The three environmental items :1.Research and development of products for
reducing environmental burdens : 100 % conversion to alternate products
2.Reduction of energy used : 10% reduction relative
to 2006

Reduction of disposed plastic
The Sano Plant reduced its disposed plastic as acountermeasure for environmental protection. 2006
saw a 2 % improvement compared to 2005.

Company Profile

Management

Oppegawa River andwooden bridge(near Kawagoe Plant)

ZEON Polymix Co., Ltd.
Name
April 7, 1967
Established
240 million yen
CapitalNo.of Employees 95

The risk management system was reviewed andimproved, for example by updating the emergency
system to cope with any sudden expansion in
operations. The compliance system was also
strengthened by reviewing ZEON’s rules and holding
training courses on the principles of compliance.

Message

The Otsu Plant is located in Otsu City, Shiga
Prefecture, on the shore of Lake Biwa. Lake Biwa is
the largest lake in Japan. Otsu City has establishedregulations for environment improvements with theobjective of achieving a recycling and environment
system that befits a city that is located next to such agreat natural resource.
The Otsu Plant agreed with this objective and its
detailed activities are described in the “Environment
Treasure Chest” section of the Otsu City website. Asa type two designated energy management factory,
we are committed to reducing energy consumption
levels.
The photograph shows the beautiful scenery behind
the Kawagoe Plant, which has appeared in several
films and is a popular spot for meeting and watching
spectacular sunsets.
We have built a comprehensive safety, health,environment and quality (SH·E·Q) management system and iscontinuously striving
to improve its SHEQ
performance.

stem
tem

Company Profile

Affiliate Activities

CSR Report

Site Report

ZEON Polymix Co., Ltd.

Optes Incorporated

ZEON Polymix Co., Ltd. was first established as Kinki
Rubber Processing, Co., Ltd. in 1967 in order to expand into
the carbon master batch (CM) field as a part of the ZEON's
rubber business developments. In 1989 it merged with
Higashi Rubber Processing Co., Ltd. and changed its nameto ZEON Polymix Co., Ltd.

Optes Inc. was established in 1990 as a joint venture between the
ZEON and Sekinos Co., Ltd., as a strategic processor of a cycloolefin
polymer that had been developed by ZEON. In 1997, Optes Inc.
became a wholly-owned subsidiary of the ZEON.
It designs, develops, manufactures and sells plastic optical parts, andis equipped with advanced processing technology such as injection
molding, vacuum deposition processing and molten extrusion.

Kawagoe Plant
Otsu Plant

Toyama Plant

Sano Plant

Environmental Protection

941-1 Kamiigusa, Kawajima-machi, Hikigun,
Saitama Prefecture 350-0152
Tel: 049-297-1511 Fax: 049-297-4709
Kawagoe Plant and Otsu Plant
Locations
Main business Molding CM and synthetic rubber CM (synthetic and natural rubbers blended with carbon
black and other chemicals and supplied to
manufacturers as processed rubber intermediate goods for the manufacture of auto partsand other molded rubber products)
Head office

1-6-2 Marunouchi, Chiyoda-ku, Tokyo,
100-8246(Shin Marunouchi Center Building)Tel: 03-3216-1793 Fax: 03-3216-1777
Locations
Sano Plant and Toyama Plant
Main business ZEONOR Film®, Light Diffusion Panel, prisms,
micro lenses

Living Together with the Local Community
Employees from the Otsu and Kawagoe Plants help
clean up the local environment by picking up trashfrom the roads in the vicinity of the Plant andregularly cleaning up illegally dumped trash.
Otsu Plant also acts as a rest station for the Otsu City
Marathon (staged by the Otsu City Athletic
Association), providing toilet and indoor facilities forparticipants.

Various Lenses

ZEONOR Film

Light Diffusion Panel

ent

Living Together with the Local Community
Both the Sano and Toyama Plants employees help
clean up the local environment in the vicinity of theirplants to live with local community.
Clean-up worknear the Otsu
Plant

tem
em

Some 200 m of the factory rooftop has been given
over to plantation in a bid to compensate for thegeneral shortage of natural growth in the area andcontribute to the environment.
2

We prepares for the unexpected by systematically
performing natural disaster preparation drills, fire
drills, and by training staff to make emergency calls.

We prepare for the unexpected by systematically
performing natural disaster preparation drills, fire
drills, and by training staff to make emergency calls.
We are committed to the highest standards ofhonesty and integrity,
as exemplified by thestringent CSR internal
control system.
Rooftop planting at the Toyama Plant
Natural disaster
preparation drill(Kawagoe Plant)

Natural disaster preparation drill

49

Site Reports

48

Head office

Performance

NB: CM = Carbon Master batch
SHEQMS: Safety, Health, Environment and Quality
Management System

Optes Incorporated
NameApril 2, 1990
Established
400 million yen
CapitalNo.of Employees 476

3.Reduction of industrial waste: 30% reduction inrubber scrap output relative to 2006

Otsu Plant during the Otsu
City marathon

We are now in the fourth year of an accredited
environmental management system (EMS) program.
In the three years of the program the company iscontinuing with improvements based on the fiveenvironment items (research and development of
products for reducing environmental burdens, green
procurement, reduction of industrial waste,
reduction of noise and vibration, reduction of energyused).
Over the next three years, stage two of the Environmental Impact program will see employees working
with the local community to make ZEON Polymix amore environmentally conscious business.
The three environmental items :1.Research and development of products for
reducing environmental burdens : 100 % conversion to alternate products
2.Reduction of energy used : 10% reduction relative
to 2006

Reduction of disposed plastic
The Sano Plant reduced its disposed plastic as acountermeasure for environmental protection. 2006
saw a 2 % improvement compared to 2005.

Company Profile

Management

Oppegawa River andwooden bridge(near Kawagoe Plant)

ZEON Polymix Co., Ltd.
Name
April 7, 1967
Established
240 million yen
CapitalNo.of Employees 95

The risk management system was reviewed andimproved, for example by updating the emergency
system to cope with any sudden expansion in
operations. The compliance system was also
strengthened by reviewing ZEON’s rules and holding
training courses on the principles of compliance.

Message

The Otsu Plant is located in Otsu City, Shiga
Prefecture, on the shore of Lake Biwa. Lake Biwa is
the largest lake in Japan. Otsu City has establishedregulations for environment improvements with theobjective of achieving a recycling and environment
system that befits a city that is located next to such agreat natural resource.
The Otsu Plant agreed with this objective and its
detailed activities are described in the “Environment
Treasure Chest” section of the Otsu City website. Asa type two designated energy management factory,
we are committed to reducing energy consumption
levels.
The photograph shows the beautiful scenery behind
the Kawagoe Plant, which has appeared in several
films and is a popular spot for meeting and watching
spectacular sunsets.
We have built a comprehensive safety, health,environment and quality (SH·E·Q) management system and iscontinuously striving
to improve its SHEQ
performance.

stem
tem

Company Profile

Affiliate Activities

CSR Report

ZEON Chemicals Yonezawa Co., Ltd.

ZEON Logistical Materials Co.,Ltd.

ZEON Chemicals Yonezawa Co., Ltd. was established in 1996 as a
production company for fine chemical products, and started to produce
synthetic aromatic chemicals with “Leaf Alcohol” as the main raw material.
Since 1988 it has also been producing liquid compounds for reaction
injection molding with “Dicyclopentadiene” as the main raw material. The
opening of ZEON's new research buildings in April 2006 brought anincrease in research and development work.

ZEON Logistical Materials Co., Ltd. was previously a part of ZEON
Kasei Co., Ltd., a company that was established when the
Manufactured Goods Division of the ZEON was made independent
Yamaguchi Plant
in 1981. In 2003, ZEON Kasei Co., Ltd. decided to make its
logistics materials business independent, and so ZEON Logistical
Materials Co., Ltd. was established. One of their main products is“STEC® ”, a container that is very economical because it reduces the costs of packing and cargo work
while streamlining storage and management. It is a ground breaking logistics tool that makes a large
contribution to the environment, and has been highly rated by various industries.

Overview of facility

Company Profile

Head office3-446-13 Hachimanpara, Yonezawa City,
Yamagata Prefecture, 992-1128
Tel: 0238-29-0055 Fax: 0238-29-0053
Main business Leaf alcohol synthetic aromatics, products in
the intermediate field between medicine andagriculture, RIM liquid compounds

The exhibit showcased displays designed for a range
of applications including industrial equipment andincar display, as well as transport boxes and the“STEC®(Strong Tight Economical Container) ”
returnable folding container designed by ZEON
Logistical Materials.
Our specially designed suspension containers foradvanced optical film products offer a stackable,
space-saving and cost-effective for transporting film
products safely and securely.

Development and Marketing of New Produc
duc

Flower bed maintenance

Employees and families

Small snow lanterns

Design concepts(1) Product quality and environmental
considerations
Environmental modifications to buildings include
installing low-energy thermal insulation ceiling sheets, introducing low-power strategies and reducing
lighting to more appropriate levels.
(2) Safety strategies
Forklift safety has been improved through clearer
separation between forklift operation areas, productassembly areas and product storage areas.
(3) Products and processes
Following an analysis of processes and products
across the factory, the layout configuration was
optimized to accommodate
increased
production of “STEC®”
in the con-text of alargescale production
to order system.

Low-Resource
Saving Resource
type container

No. 4 Plant

51

Site Reports

Joint Clean-up of the Industrial Park
ZEON Chemicals Yonezawa took part in environment
clean-up activities in the Yonezawa Hachimanpara
Industrial Park in which it is situated, and also put agreat deal of effort into other activities to improve
the local environment.

The configuration of production lines has been
reoptimized in conjunction with the increase in“STEC®” production capacity, including constructionof additional final product assembly and productwarehouse facilities.

Development and marketing of parison productstorage solutions and returnable container
products
The returnable container designed by ZEON
Logistical Materials is (1)lightweight, (2)low-cost,(3)environmentally-friendly, (4)easy to use, (5)durable and (6)designed to withstand compression. It
weighs 25% less than conventional containers,
requires less resources to produce, and can be folded
up when not in use.

Performance

Zero pollution slogan

Yonezawa Snow Lantern Festival
Since 1999, ZEON Chemicals Yonezawa has supported the snow lantern festival, which is a
traditional winter event in Yonezawa. Bothemployees and their families come together every
year to build two snow lanterns. This year, in theabsence of snow due to the unusually warm winter,the contribution was a number of smaller lanterns.

ZEON Logistical Materials, Co., Ltd.
July 1, 2003
100 million yen
36
1-6-2 Marunouchi, Chiyoda-ku, Tokyo 100-0005
Head office(Shin-Marunouchi Center Building)
TEL: 03-5208-5167 FAX: 03-5208-5296
Yamaguchi Plant and Shunan Plant
Locations
Main business Design, production, distribution and collection of
STECs folding returnable container products,
maintenance of containers.

* Flat Panel Display (FPD)

Suspension typecontainer

Living Together with the Local Community

Name
Established
CapitalNo.of Employees

Management

Zero pollution slogan
The zero pollution slogan at ZEON Chemicals
Yonezawa, “Naseba Naru” (Can Do), is taken fromthe famous exhortation of Yozan Uesugi, ninth leaderof the Yonezawa feudal clan.
“Naseba Naru” inspires the spirit of ZEON Chemicals
Yonezawa work force in striving for zero emissions.

Name
ZEON Chemicals Yonezawa Co., Ltd.
Established
April 26 1996
Capital90 million yen
No.of Employees 35

Company Profile

Message

ISO14001 accreditation
ZEON Chemicals Yonezawa obtained ISO14001
accreditation in June 2006. During the first year, thefocus was on reducing output of waste water andother waste liquids generated during man ufacturing
processes.

50

Site ReportAffiliate Activities

CSR Report

ZEON Chemicals Yonezawa Co., Ltd.

ZEON Logistical Materials Co.,Ltd.

ZEON Chemicals Yonezawa Co., Ltd. was established in 1996 as a
production company for fine chemical products, and started to produce
synthetic aromatic chemicals with “Leaf Alcohol” as the main raw material.
Since 1988 it has also been producing liquid compounds for reaction
injection molding with “Dicyclopentadiene” as the main raw material. The
opening of ZEON's new research buildings in April 2006 brought anincrease in research and development work.

ZEON Logistical Materials Co., Ltd. was previously a part of ZEON
Kasei Co., Ltd., a company that was established when the
Manufactured Goods Division of the ZEON was made independent
Yamaguchi Plant
in 1981. In 2003, ZEON Kasei Co., Ltd. decided to make its
logistics materials business independent, and so ZEON Logistical
Materials Co., Ltd. was established. One of their main products is“STEC® ”, a container that is very economical because it reduces the costs of packing and cargo work
while streamlining storage and management. It is a ground breaking logistics tool that makes a large
contribution to the environment, and has been highly rated by various industries.

Overview of facility

Company Profile

Head office3-446-13 Hachimanpara, Yonezawa City,
Yamagata Prefecture, 992-1128
Tel: 0238-29-0055 Fax: 0238-29-0053
Main business Leaf alcohol synthetic aromatics, products in
the intermediate field between medicine andagriculture, RIM liquid compounds

The exhibit showcased displays designed for a range
of applications including industrial equipment andincar display, as well as transport boxes and the“STEC®(Strong Tight Economical Container) ”
returnable folding container designed by ZEON
Logistical Materials.
Our specially designed suspension containers foradvanced optical film products offer a stackable,
space-saving and cost-effective for transporting film
products safely and securely.

Development and Marketing of New Produc
duc

Flower bed maintenance

Employees and families

Small snow lanterns

Design concepts(1) Product quality and environmental
considerations
Environmental modifications to buildings include
installing low-energy thermal insulation ceiling sheets, introducing low-power strategies and reducing
lighting to more appropriate levels.
(2) Safety strategies
Forklift safety has been improved through clearer
separation between forklift operation areas, productassembly areas and product storage areas.
(3) Products and processes
Following an analysis of processes and products
across the factory, the layout configuration was
optimized to accommodate
increased
production of “STEC®”
in the con-text of alargescale production
to order system.

Low-Resource
Saving Resource
type container

No. 4 Plant

51

Site Reports

Joint Clean-up of the Industrial Park
ZEON Chemicals Yonezawa took part in environment
clean-up activities in the Yonezawa Hachimanpara
Industrial Park in which it is situated, and also put agreat deal of effort into other activities to improve
the local environment.

The configuration of production lines has been
reoptimized in conjunction with the increase in“STEC®” production capacity, including constructionof additional final product assembly and productwarehouse facilities.

Development and marketing of parison productstorage solutions and returnable container
products
The returnable container designed by ZEON
Logistical Materials is (1)lightweight, (2)low-cost,(3)environmentally-friendly, (4)easy to use, (5)durable and (6)designed to withstand compression. It
weighs 25% less than conventional containers,
requires less resources to produce, and can be folded
up when not in use.

Performance

Zero pollution slogan

Yonezawa Snow Lantern Festival
Since 1999, ZEON Chemicals Yonezawa has supported the snow lantern festival, which is a
traditional winter event in Yonezawa. Bothemployees and their families come together every
year to build two snow lanterns. This year, in theabsence of snow due to the unusually warm winter,the contribution was a number of smaller lanterns.

ZEON Logistical Materials, Co., Ltd.
July 1, 2003
100 million yen
36
1-6-2 Marunouchi, Chiyoda-ku, Tokyo 100-0005
Head office(Shin-Marunouchi Center Building)
TEL: 03-5208-5167 FAX: 03-5208-5296
Yamaguchi Plant and Shunan Plant
Locations
Main business Design, production, distribution and collection of
STECs folding returnable container products,
maintenance of containers.

* Flat Panel Display (FPD)

Suspension typecontainer

Living Together with the Local Community

Name
Established
CapitalNo.of Employees

Management

Zero pollution slogan
The zero pollution slogan at ZEON Chemicals
Yonezawa, “Naseba Naru” (Can Do), is taken fromthe famous exhortation of Yozan Uesugi, ninth leaderof the Yonezawa feudal clan.
“Naseba Naru” inspires the spirit of ZEON Chemicals
Yonezawa work force in striving for zero emissions.

Name
ZEON Chemicals Yonezawa Co., Ltd.
Established
April 26 1996
Capital90 million yen
No.of Employees 35

Company Profile

Message

ISO14001 accreditation
ZEON Chemicals Yonezawa obtained ISO14001
accreditation in June 2006. During the first year, thefocus was on reducing output of waste water andother waste liquids generated during man ufacturing
processes.

50

Site ReportAffiliate Activities

CSR Report

Site Report

RIMTEC Corporation

ZEON Environmental Materials Co., Ltd.

Previously, both the ZEON and Teijin Metton Co., Ltd. were providing
thermosetting resin that was molded using the reaction injection molding
method with dicyclopentadiene as the main raw material.
Sales are being promoted not only in Japan, but also in Europe, North
America and East Asian countries such as South Korea.

ZEON Environmental Materials Co., Ltd. was established on July 1, 2001 and started with two businessdepartments: civil engineering materials and purification tanks. At the end of December 2003, the civilengineering material department was sold to Maeda Kosen Co., Ltd. From January 2004, ZEON
Environmental Materials has been a sales company that is focused exclusively on the purification
septic tank business.
In September 2004, ZEON Environmental Materials expanded into the sale and installation of
purification septic tank systems and associated peripheral products, in a move designed to strengthen
the organization and provide a more extensive range of services.

Overview of offices

Name
Established
CapitalNo.of Employees

RIMTEC Corporation
August 1, 2003
490 million yen
29

1-6-2 Marunouchi, Chiyoda-ku, Tokyo
100-0005(Shin-Marunouchi Center Building)
TEL:03-5220-8581 FAX:03-5220-8584
Mizushima Plant
Location
Main business Liquid compounds for reaction injection
molding (RIM) with dicyclopentadiene as themain raw material and RIM liquid compounds.
Head office

RIMTEC is looking to phase out conventional FRP(Fiberglass Reinforced Plastic) products in favor of
the new rigid compound products.

Living Together with the Local Community

Pool panels

Living Together with the Local Community•Cherry-blossomrviewing with affiliate employees
and their families (April)•Cleaning the Takashima Harbor Road (May)•Summer Festival (ZEON Mizushima Summer
Festival member) (August)

Other CSR Activities

Truck Air Deflectors (Lightweight
Structure Improves Vehicle Fuel
Economy)52

2767-22 Aza Niihama, Shionasu, Kojima,
Kurashiki City, Okayama Prefecture 711-0934(Inside the ZEON’s No. 2 Mizushima Plant))
TEL: 086-470-3711 FAX: 086-470-3722
Fukushima,Yonezawa,Osaka,Wakayama,
Location
Kurashiki,Okayama,Shikoku,Yamaguchi,
Fukuoka,Kagoshima
Main business Combined Septic Tanks
Head officeparticipated by exhibiting our “PENTAM®” purification septic tanks. .

Others•This Plant assembly facilities work to enhancesafety levels in conjunction with local Mizushimaexternal contractors.
•We are working with subcontractors to instill theprinciple of the 5 S's as the fundamental prerequisite
for safety, along with workplace improvement
programs, KYT (Kiken Yochi Training), and nearmiss prevention strategies.
•The purification tank assembly plant is aiming forthe highest safety and efficiency standards in Japan.

Site Reports

Combined Septic Tanks(Effective in Reducing
Water Burdens)•We joined forces with the ZEON's Mizushima Plant
to participate in a local clean-up campaign.
•Following the success of Green Day 2006 theprevious year, on April 21, 2007, the “Green Day
2007” Executive Committee and the Soja City
authorities in Okayama Prefecture jointly organized
an event for exploring issues related to the city's
natural environment, such as “How to protect the
Takahashi River”. As the local company that deals
with domestic waste water purification, we

ZEON Environmental Materials Co., Ltd.
Name
September 1, 2004
Established
95 million yen
CapitalNo.of Employees 28

Performance•We have contributed to improving the water
environment of the local community by selling“PENTAM®” purification septic tanks to households
and burying them in the ground.
•Water from toilets and everyday use is purified withthe “PENTAM®” purification septic tank and thenreleased back into the environment•The objective of returning water is to recycle theclear water of the local community, water retention
in rivers, and to maintain the cleanliness of rivers
and nature.
•It takes 2,000 tons of water to produce one ton ofgrain. The purification septic tank system
contributes to healthy water circulation in theenvironment.
•Nitrogen and phosphorus eutrophication of closed
waterways such as swamps, lakes, harbors andinlets has become a major issue in recent years. The“PENTAM®” home septic system is helping to tackle
the problem with advanced nitrogen andphosphorus removal technology.

Management

Main Applications for Reaction Injection Molded
Products
RIMTEC has launched a series of products madefrom newly developed high-rigidity compounds.

Company Profile

Company Profile

Message

Providing Environmentally-friendly Molding
Liquid Compounds and Molded Products
Resin with dicyclopentadiene as its main component
has a strength that is equivalent to general-purpose
engineering plastic and has the advantage of having
high productivity in manufacture because of thereaction injection molding method. Changing to thistype of resin will also have the following benefits:(1)The metallic molds can be made lighter than withpress molding.
(2)The energy consumed by molding can be
reduced due to productivity improvements.
(3)Since the resin is made up of nearly 100 %hydrocarbons, it can be completely burned andso reduces environmental burdens.

Green Day 2007 venue•Passed the regular ISO 9001:2000 inspection(September 2006)•Passed the regular ISO 14001:2004 inspection(October 2005)•Exhibit at the Lyon Pool Show (Piscine 2006),
Franc (November 2006)

53

Affiliate Activities

CSR Report

Site Report

RIMTEC Corporation

ZEON Environmental Materials Co., Ltd.

Previously, both the ZEON and Teijin Metton Co., Ltd. were providing
thermosetting resin that was molded using the reaction injection molding
method with dicyclopentadiene as the main raw material.
Sales are being promoted not only in Japan, but also in Europe, North
America and East Asian countries such as South Korea.

ZEON Environmental Materials Co., Ltd. was established on July 1, 2001 and started with two businessdepartments: civil engineering materials and purification tanks. At the end of December 2003, the civilengineering material department was sold to Maeda Kosen Co., Ltd. From January 2004, ZEON
Environmental Materials has been a sales company that is focused exclusively on the purification
septic tank business.
In September 2004, ZEON Environmental Materials expanded into the sale and installation of
purification septic tank systems and associated peripheral products, in a move designed to strengthen
the organization and provide a more extensive range of services.

Overview of offices

Name
Established
CapitalNo.of Employees

RIMTEC Corporation
August 1, 2003
490 million yen
29

1-6-2 Marunouchi, Chiyoda-ku, Tokyo
100-0005(Shin-Marunouchi Center Building)
TEL:03-5220-8581 FAX:03-5220-8584
Mizushima Plant
Location
Main business Liquid compounds for reaction injection
molding (RIM) with dicyclopentadiene as themain raw material and RIM liquid compounds.
Head office

RIMTEC is looking to phase out conventional FRP(Fiberglass Reinforced Plastic) products in favor of
the new rigid compound products.

Living Together with the Local Community

Pool panels

Living Together with the Local Community•Cherry-blossomrviewing with affiliate employees
and their families (April)•Cleaning the Takashima Harbor Road (May)•Summer Festival (ZEON Mizushima Summer
Festival member) (August)

Other CSR Activities

Truck Air Deflectors (Lightweight
Structure Improves Vehicle Fuel
Economy)52

2767-22 Aza Niihama, Shionasu, Kojima,
Kurashiki City, Okayama Prefecture 711-0934(Inside the ZEON’s No. 2 Mizushima Plant))
TEL: 086-470-3711 FAX: 086-470-3722
Fukushima,Yonezawa,Osaka,Wakayama,
Location
Kurashiki,Okayama,Shikoku,Yamaguchi,
Fukuoka,Kagoshima
Main business Combined Septic Tanks
Head officeparticipated by exhibiting our “PENTAM®” purification septic tanks. .

Others•This Plant assembly facilities work to enhancesafety levels in conjunction with local Mizushimaexternal contractors.
•We are working with subcontractors to instill theprinciple of the 5 S's as the fundamental prerequisite
for safety, along with workplace improvement
programs, KYT (Kiken Yochi Training), and nearmiss prevention strategies.
•The purification tank assembly plant is aiming forthe highest safety and efficiency standards in Japan.

Site Reports

Combined Septic Tanks(Effective in Reducing
Water Burdens)•We joined forces with the ZEON's Mizushima Plant
to participate in a local clean-up campaign.
•Following the success of Green Day 2006 theprevious year, on April 21, 2007, the “Green Day
2007” Executive Committee and the Soja City
authorities in Okayama Prefecture jointly organized
an event for exploring issues related to the city's
natural environment, such as “How to protect the
Takahashi River”. As the local company that deals
with domestic waste water purification, we

ZEON Environmental Materials Co., Ltd.
Name
September 1, 2004
Established
95 million yen
CapitalNo.of Employees 28

Performance•We have contributed to improving the water
environment of the local community by selling“PENTAM®” purification septic tanks to households
and burying them in the ground.
•Water from toilets and everyday use is purified withthe “PENTAM®” purification septic tank and thenreleased back into the environment•The objective of returning water is to recycle theclear water of the local community, water retention
in rivers, and to maintain the cleanliness of rivers
and nature.
•It takes 2,000 tons of water to produce one ton ofgrain. The purification septic tank system
contributes to healthy water circulation in theenvironment.
•Nitrogen and phosphorus eutrophication of closed
waterways such as swamps, lakes, harbors andinlets has become a major issue in recent years. The“PENTAM®” home septic system is helping to tackle
the problem with advanced nitrogen andphosphorus removal technology.

Management

Main Applications for Reaction Injection Molded
Products
RIMTEC has launched a series of products madefrom newly developed high-rigidity compounds.

Company Profile

Company Profile

Message

Providing Environmentally-friendly Molding
Liquid Compounds and Molded Products
Resin with dicyclopentadiene as its main component
has a strength that is equivalent to general-purpose
engineering plastic and has the advantage of having
high productivity in manufacture because of thereaction injection molding method. Changing to thistype of resin will also have the following benefits:(1)The metallic molds can be made lighter than withpress molding.
(2)The energy consumed by molding can be
reduced due to productivity improvements.
(3)Since the resin is made up of nearly 100 %hydrocarbons, it can be completely burned andso reduces environmental burdens.

Green Day 2007 venue•Passed the regular ISO 9001:2000 inspection(September 2006)•Passed the regular ISO 14001:2004 inspection(October 2005)•Exhibit at the Lyon Pool Show (Piscine 2006),
Franc (November 2006)

53

Affiliate Activities

CSR Report

Tokyo Zairyo Co., Ltd.

Environment Related Data

*Total amount emitted into the air, water and soil**Amount of carbon converted

Tokyo Zairyo Co., Ltd. was established in 1947 with the objective ofproviding a stable supply of raw materials to the rubber industry. It
took charge of the sales for the synthetic rubber that was imported by
ZEON, and when ZEON started to produce synthetic rubber
domestically in 1959, it started to perform the role of sales distributor
for ZEON's main clients. In July 2000, Tokyo Zairyo merged withZEON Trading Co., Ltd., which had been a subsidiary of ZEON Kasei
Co., Ltd., and became a member of the ZEON group.

We started operation of an environmental management system in April 2006, promoting activities suchas those for strengthening its response to regulationof chemical substances and for advancing the sale ofenvironment-conscious products, with the result thatthe company gained ISO14001 certification in
December 2006 (registration number JQA-EM5592).

Compliance and Internal Controls(1)Management of chemical substances
With the amendment of the Occupational Safety and
Health Act as it relates to the GHS (Globally
Harmonized System of Classification and Labeling ofChemicals), we have trained all employees and havepushed the revision of labels and MSDS (Material
Safety Data Sheets) based on the amend-ment.

(1)Management of chemical substances
With the amendment of the Occupational Safety and
Health Act as it relates to the GHS (Globally
Harmonized System of Classification and Labeling ofChemicals), we have trained all employees and havepushed the revision of labels and MSDS
(Material Safety Data Sheets) based on the amendment.

We introduced monthly meetings of the Risk
Management and Compliance Committees in fiscal
2006 along with tackling the following issues.

(2)Establishment of administrative regulations
and ensuring familiarity with the regulations
Following on from last year, we have conductedindividual training for each position to further
development of administrative regulations and toensure that all employees
are familiar with newadministrative
regulations.

(2)Establishment of administrative regulations
and ensuring familiarity with the regulations
Following on from last year, we have conductedindividual training for each position to further

ISO Promotional ConferenceTokyo Zairyo Co., Ltd.
Established
December 1947
Capital227.6 million yen
No. of Employees 128
Head Office
1-6-2 Marunouchi, Chiyoda-ku, Tokyo 1000005(Shin Marunouchi Center Building)
TEL: 03-5219-2171 FAX: 03-5219-2201
Locations
Nagoya Office, Osaka Office and Okayama
OfficeRepresentative Office Vietnam Representative OfficeSubsidiaryTokyo Zairyo (U.S.A.) Inc., Tokyo Zairyo(Shanghai) Co., Ltd. and 3 other offices in
China,
Tokyo Zairyo (Thailand) Co., Ltd. and 3other offices in South-east Asia
Main Business Trading of various chemicals and products

development of administrative regulations and toensure that all employees are familiar withnewadministrative
regulations.

ZEON Medical Incorporated

Clean Room

54

Test for Reviewing Emergency
Procedures

2006

Substance number
Amount of consumption (tons)
Amount emitted (tons)()
Amount of p
production (tons)()
Industrial waste
Amount of final landfill (tons)
Amount of CO2 emitted (tons-C)**
Amount of energy
gy consumed (crude oil equivalent,
q
kl)

5
442
49
244
195
790
1,789
,

5
237
30
410
322
1,116
2,470

3
179
16
387
61
725
2,015

3
114
13
426
62
935
2,382

2
88
7
1,057
190
931
2,334

2002

2003

2004

2005

2006

Substance number
Amount of consumption
p((tons))Amount emitted (tons)()
Amount of production (tons)
Industrial waste
Amount of final landfill (tons)
Amount of CO2 emitted (tons-C)()**
Amount of energy consumed (crude oil equivalent, kl)

5
340
0
180
160
707
1,800

7
262
0
190
182
720
1,789

6
214
0
139
111
710
1,809

6
161
0
144
118
691
1,800

6
164
0
186
120
668
1,777

ZEON Polymix Inc. Kawagoe Plant

2002

2003

2006

6
129
0
102
0
320
904

2004
5
74
0
102
62
242
832

2005

3
148
0
100
0
343
826

6
50
0
121
70
236
596

6
53
0
129
84
247
635

2002

2003

2004

2005

2006

1
0
0
89
17
454
1,336

1
0
0
178
25
525
1,575

1
0
0
112
28
519
1,531

1
0
0
52
25
510
1,500

1
0
0
39
16
509
1,502

2002

2003

2004

2005

2006

Substance number
Amount of consumption (tons)
Amount of emission (tons)()
Amount of production (tons)
Industrial waste
Amount of final landfill (tons)
Amount of CO2 emitted (tons-C)**
Amount of energy consumed (crude oil equivalent, kl)

0
0
0
249
249
1,377
1,082
,

0
0
0
533
259
2,344
1,842

0
0
0
997
0
4,059
3,261

0
0
0
1,981
0
5,821
4,678

0
0
0
840
0
8,695
6,987

ZEON Chemicals Yonezawa Co., Ltd.

2002

2003

2004

2005

2006

2
5
0
145
4
167
315

4
20
0
207
4
213
390

4
25
0
258
8
262
511

4
24
0
259
7
290
566

4
22
0
271
5
392
699

2002

2003

2004

2005

2006

1
4
2
61
60
37
92

1
1
1
54
53
30
80

1
2
1
16
12
41
108

1
1
1
6
0
47
122

1
1
0
77
53
43
115

ZEON Polymix Inc. Ohtsu Plant
PRTR applicable
substances

Substance number
PRTR applicable
Amount of consumption (tons)
substances
Amount emitted (tons)
Amount of emission (tons)
Industrial waste
Amount of final landfill (tons)
Amount of CO2 emitted (tons-C)**
Amount of energy consumed (crude oil equivalent, kl)

Optes Inc. Sano Plant
Substance number
Amount of consumption (tons)
Amount of emission (tons)()
Amount of production (tons)
Industrial waste
Amount of final landfill (tons)
Amount of CO2 emitted (tons-C)**
Amount of energy consumed (crude oil equivalent, kl)
PRTR applicable
substances

Optes Inc. Toyama Plant
PRTR applicable
substances

ZEON Medical Laboratory

Company Profile

We are striving toward enhanced quality, shorter leadtimes and improved productivity by promoting
activities for reforming production.
Meanwhile, the company relocated its medicallaboratory from the R&D Center in Kanagawa

2005

ZEON Medical Incorporated
May 1, 1989
400 million yen
105
2-4-1 Shiba Koen, Minato-ku, Tokyo
Head Office105-0011(7th Floor, Shiba Park Building B)
TEL: 03-3578-7724 FAX: 03-3578-7749
LocationsTakaoka Plant
Main Business Medical equipment
Name
Established
CapitalNo. of Employees

Prefecture to the Takaoka Plant in May 2007 with theaim of integrating research and development withproduction.

Substance number
PRTR applicable
Amount of consumption (tons)
substances
Amount of emission (tons)
Amount of production (tons)
Industrial waste
Amount of final landfill (tons)
Amount of CO2 emitted (tons-C)**
Amount of energy consumed (crude oil equivalent, kl)

ZEON Logistical Materials Co., Ltd.
Substance number
Amount of consumption (tons)
Amount of emission (tons)
Amount of production (tons)
Industrial waste
Amount of final landfill (tons)
Amount of CO2 emitted (tons-C)**
Amount of energy consumed (crude oil equivalent, kl)
PRTR applicable
substances

Site Reports

ZEON Medical Inc. was established in May 1989 and the medical equipment
production plant at Takaoka City, Toyama Prefecture was completed thefollowing year. The company is committed to the research, development,
manufacture and sales required for providing its customers, who are doctors,
with innovative medical equipment (or instruments). These devices are fully up
to date with the latest medical technology, responding to diverse needs inmedical workplaces and supporting health professionals as they do their best to
protect life.

Laboratory Relocated2004

PRTR applicable
substances

Company Profile

Compliance and Internal Controls

2003

Performance

We started operation of an environmental management system in April 2006, promoting activities suchas those for strengthening its response to regulationof chemical substances and for advancing the sale ofenvironment-conscious products, with the result thatthe company gained ISO14001 certification in
December 2006 (registration number JQA-EM5592).
The company's success in obtaining certification
after such short-term activities is probably due to thefact that all employees were given awareness training
in the environment management system, coupledwith the fact that the company as a whole worked
toward operation of the system.

2002

Management

Environmental Protection

ZEON Kasei Co., Ltd. Ibaraki Plant

Message

Environmental Protection

We introduced monthly meetings of the Risk
Management and Compliance Committees in fiscal
2006 along with tackling the following issues.

Site Report55

Affiliate Activities

CSR Report

Tokyo Zairyo Co., Ltd.

Environment Related Data

*Total amount emitted into the air, water and soil**Amount of carbon converted

Tokyo Zairyo Co., Ltd. was established in 1947 with the objective ofproviding a stable supply of raw materials to the rubber industry. It
took charge of the sales for the synthetic rubber that was imported by
ZEON, and when ZEON started to produce synthetic rubber
domestically in 1959, it started to perform the role of sales distributor
for ZEON's main clients. In July 2000, Tokyo Zairyo merged withZEON Trading Co., Ltd., which had been a subsidiary of ZEON Kasei
Co., Ltd., and became a member of the ZEON group.

We started operation of an environmental management system in April 2006, promoting activities suchas those for strengthening its response to regulationof chemical substances and for advancing the sale ofenvironment-conscious products, with the result thatthe company gained ISO14001 certification in
December 2006 (registration number JQA-EM5592).

Compliance and Internal Controls(1)Management of chemical substances
With the amendment of the Occupational Safety and
Health Act as it relates to the GHS (Globally
Harmonized System of Classification and Labeling ofChemicals), we have trained all employees and havepushed the revision of labels and MSDS (Material
Safety Data Sheets) based on the amend-ment.

(1)Management of chemical substances
With the amendment of the Occupational Safety and
Health Act as it relates to the GHS (Globally
Harmonized System of Classification and Labeling ofChemicals), we have trained all employees and havepushed the revision of labels and MSDS
(Material Safety Data Sheets) based on the amendment.

We introduced monthly meetings of the Risk
Management and Compliance Committees in fiscal
2006 along with tackling the following issues.

(2)Establishment of administrative regulations
and ensuring familiarity with the regulations
Following on from last year, we have conductedindividual training for each position to further
development of administrative regulations and toensure that all employees
are familiar with newadministrative
regulations.

(2)Establishment of administrative regulations
and ensuring familiarity with the regulations
Following on from last year, we have conductedindividual training for each position to further

ISO Promotional ConferenceTokyo Zairyo Co., Ltd.
Established
December 1947
Capital227.6 million yen
No. of Employees 128
Head Office
1-6-2 Marunouchi, Chiyoda-ku, Tokyo 1000005(Shin Marunouchi Center Building)
TEL: 03-5219-2171 FAX: 03-5219-2201
Locations
Nagoya Office, Osaka Office and Okayama
OfficeRepresentative Office Vietnam Representative OfficeSubsidiaryTokyo Zairyo (U.S.A.) Inc., Tokyo Zairyo(Shanghai) Co., Ltd. and 3 other offices in
China,
Tokyo Zairyo (Thailand) Co., Ltd. and 3other offices in South-east Asia
Main Business Trading of various chemicals and products

development of administrative regulations and toensure that all employees are familiar withnewadministrative
regulations.

ZEON Medical Incorporated

Clean Room

54

Test for Reviewing Emergency
Procedures

2006

Substance number
Amount of consumption (tons)
Amount emitted (tons)()
Amount of p
production (tons)()
Industrial waste
Amount of final landfill (tons)
Amount of CO2 emitted (tons-C)**
Amount of energy
gy consumed (crude oil equivalent,
q
kl)

5
442
49
244
195
790
1,789
,

5
237
30
410
322
1,116
2,470

3
179
16
387
61
725
2,015

3
114
13
426
62
935
2,382

2
88
7
1,057
190
931
2,334

2002

2003

2004

2005

2006

Substance number
Amount of consumption
p((tons))Amount emitted (tons)()
Amount of production (tons)
Industrial waste
Amount of final landfill (tons)
Amount of CO2 emitted (tons-C)()**
Amount of energy consumed (crude oil equivalent, kl)

5
340
0
180
160
707
1,800

7
262
0
190
182
720
1,789

6
214
0
139
111
710
1,809

6
161
0
144
118
691
1,800

6
164
0
186
120
668
1,777

ZEON Polymix Inc. Kawagoe Plant

2002

2003

2006

6
129
0
102
0
320
904

2004
5
74
0
102
62
242
832

2005

3
148
0
100
0
343
826

6
50
0
121
70
236
596

6
53
0
129
84
247
635

2002

2003

2004

2005

2006

1
0
0
89
17
454
1,336

1
0
0
178
25
525
1,575

1
0
0
112
28
519
1,531

1
0
0
52
25
510
1,500

1
0
0
39
16
509
1,502

2002

2003

2004

2005

2006

Substance number
Amount of consumption (tons)
Amount of emission (tons)()
Amount of production (tons)
Industrial waste
Amount of final landfill (tons)
Amount of CO2 emitted (tons-C)**
Amount of energy consumed (crude oil equivalent, kl)

0
0
0
249
249
1,377
1,082
,

0
0
0
533
259
2,344
1,842

0
0
0
997
0
4,059
3,261

0
0
0
1,981
0
5,821
4,678

0
0
0
840
0
8,695
6,987

ZEON Chemicals Yonezawa Co., Ltd.

2002

2003

2004

2005

2006

2
5
0
145
4
167
315

4
20
0
207
4
213
390

4
25
0
258
8
262
511

4
24
0
259
7
290
566

4
22
0
271
5
392
699

2002

2003

2004

2005

2006

1
4
2
61
60
37
92

1
1
1
54
53
30
80

1
2
1
16
12
41
108

1
1
1
6
0
47
122

1
1
0
77
53
43
115

ZEON Polymix Inc. Ohtsu Plant
PRTR applicable
substances

Substance number
PRTR applicable
Amount of consumption (tons)
substances
Amount emitted (tons)
Amount of emission (tons)
Industrial waste
Amount of final landfill (tons)
Amount of CO2 emitted (tons-C)**
Amount of energy consumed (crude oil equivalent, kl)

Optes Inc. Sano Plant
Substance number
Amount of consumption (tons)
Amount of emission (tons)()
Amount of production (tons)
Industrial waste
Amount of final landfill (tons)
Amount of CO2 emitted (tons-C)**
Amount of energy consumed (crude oil equivalent, kl)
PRTR applicable
substances

Optes Inc. Toyama Plant
PRTR applicable
substances

ZEON Medical Laboratory

Company Profile

We are striving toward enhanced quality, shorter leadtimes and improved productivity by promoting
activities for reforming production.
Meanwhile, the company relocated its medicallaboratory from the R&D Center in Kanagawa

2005

ZEON Medical Incorporated
May 1, 1989
400 million yen
105
2-4-1 Shiba Koen, Minato-ku, Tokyo
Head Office105-0011(7th Floor, Shiba Park Building B)
TEL: 03-3578-7724 FAX: 03-3578-7749
LocationsTakaoka Plant
Main Business Medical equipment
Name
Established
CapitalNo. of Employees

Prefecture to the Takaoka Plant in May 2007 with theaim of integrating research and development withproduction.

Substance number
PRTR applicable
Amount of consumption (tons)
substances
Amount of emission (tons)
Amount of production (tons)
Industrial waste
Amount of final landfill (tons)
Amount of CO2 emitted (tons-C)**
Amount of energy consumed (crude oil equivalent, kl)

ZEON Logistical Materials Co., Ltd.
Substance number
Amount of consumption (tons)
Amount of emission (tons)
Amount of production (tons)
Industrial waste
Amount of final landfill (tons)
Amount of CO2 emitted (tons-C)**
Amount of energy consumed (crude oil equivalent, kl)
PRTR applicable
substances

Site Reports

ZEON Medical Inc. was established in May 1989 and the medical equipment
production plant at Takaoka City, Toyama Prefecture was completed thefollowing year. The company is committed to the research, development,
manufacture and sales required for providing its customers, who are doctors,
with innovative medical equipment (or instruments). These devices are fully up
to date with the latest medical technology, responding to diverse needs inmedical workplaces and supporting health professionals as they do their best to
protect life.

Laboratory Relocated2004

PRTR applicable
substances

Company Profile

Compliance and Internal Controls

2003

Performance

We started operation of an environmental management system in April 2006, promoting activities suchas those for strengthening its response to regulationof chemical substances and for advancing the sale ofenvironment-conscious products, with the result thatthe company gained ISO14001 certification in
December 2006 (registration number JQA-EM5592).
The company's success in obtaining certification
after such short-term activities is probably due to thefact that all employees were given awareness training
in the environment management system, coupledwith the fact that the company as a whole worked
toward operation of the system.

2002

Management

Environmental Protection

ZEON Kasei Co., Ltd. Ibaraki Plant

Message

Environmental Protection

We introduced monthly meetings of the Risk
Management and Compliance Committees in fiscal
2006 along with tackling the following issues.

Site Report55

Overseas Affiliate Activities

Site Report
CSR Report

As ZEON's business has become increasingly globalized, we have established bases in our main
overseas markets to take care of manufacturing, sales and research related to rubber and resin.
These overseas affiliates are performing Responsible Care activities in the same way as the plants
in Japan.

ZEON Chemicals L.P. ZEON Chemicals Europe Ltd.
(United Kingdom)(USA)

ZEON Chemicals Thailand ZEON Advanced Polymix(Thailand)Co., Ltd.
(Thailand) Co., Ltd.
Message

Company Profile

Company Profile

Name
ZEON Chemicals Europe Ltd.
EstablishedFebruary 6, 1989
Capital
STG £23,300,000
Investment Ratio ZEON CORPORATION: 100%

Head Office4100 Bells Lane, Louisville,
Kentucky 40211, U.S.A.
TEL:+1-502-775-7700
FAX:+1-502-775-7714

Head Office

Main Business

Manufacture & Sales of Synthetic Rubber

Main Business

Sully, Vale of Glamorgan,
CF64 5ZE, United Kingdom
TEL:+44-1446-725400
FAX:+44-1446-747988
Manufacture & Sales of Synthetic
RubberName
Established
CapitalInvestment Ratio
Head Office

Main Business

ZEON Chemicals Thailand Co., Ltd.
May 9, 1996
BHT 350,000,000
ZEON CORPORATION: 73.9%
3 Tambol Huaypong, Soi G-14
Pakorn-Songkhororat Road,
Amphur Muang, Rayong 21150,Thailand
TEL:+66-3-868-5973~5
FAX:+66-3-868-5972
Manufacture & Sales of Petroleum Resin

Company Profile
Name
ZEON Advanced Polymix Co., Ltd.
Established
April 26, 1995
CapitalBHT 100,000,000
Investment Ratio ZEON CORPORATION: 40%
Head Office111/2 soi Nikom 13, Moo 2
T.Makhamkhoo, Nikompattana Subdistrict, Rayong 21180, Thailand
TEL:+66-2-261-0175
FAX:+66-2-261-0172
Main Business Manufacture & Sales of Rubber Carbon
Master Batch

Environment and Safety Activities

Environment and Safety Activities

Since 2006, ZEON's Kentucky Plant has been required
to meet a district regulation known as “STAR”*. Overthe last three years, We have of its own accord
reduced atmospheric emissions of butadiene,
acrylonitrile and ethyl acrylate from the plant by 20%,and the company is currently striving to further
reduce emissions by half to satisfy STAR
requirements.

Environment Topics
The new European regulation on chemicals REACH
came into force in June 2007. In response, we havenominated in-house REACH managers and havestarted relevant activities.
First of all, we made a list of all the raw materials
used in the plant and started laying preparations forpreliminary registration by, for example, sending a
letter of inquiry to the manufacturer of each raw
material asking whether it wished to register for
REACH.
The SS (suspended solids) density of the company's
industrial waste water discharge exceeds theregulation value, and We have pressing ahead with
the introduction of a sand filtration unit as acountermeasure. At present, the test machine has
confirmed a reduction, and we are planning to
introduce the unit after determining the operating
conditions.
Resource and Energy Saving
With the year-on-year rise in the unit cost for steam
owing to the steep rise in oil prices, we are striving to
reduce unit consumption.
We have already started activities for reducing
consumption by using a steam flow meter mounted in
the drying process to identify products that use
significantly more steam than other products andprocesses that use steam uneconomically. By 2008,
we aim to have made a 30% reduction from the 2006
annual consumption.

Activities of the Health and Safety Committee Members
The Health and Safety Committee members performa safety patrol every month in accordance with the"ZCT Safety Manual". Unfortunately, an accident
resulting in work leave occurred in 2006, so as of theend of March 2007, the number of consecutive days
without an accident was 238.
Natural desaster Preparation
As it does every year, we performed a comprehensive disaster preparation drill in November. This
year, two advisors from the prefectural government
observed the drill and gave us feedback after it wasover.
Establishment of Safety Day
Starting in 2007, February
9th was designated Safety
Day and we dispatched a
num-ber of employees to
ZEON's Mizushima Plant
for safety training.
Natural desaster Preparation drill
On-site 5S Activities
This year, we implemented two Big Cleaning Days
per month in preparation for entrenching 5S
activities.

Safety training is performed regularly by an officiallycertified on-site Safety Officer and displays are used
to explain about safety as a part of the National
Safety Week event.
The following 5S activities
were carried out:
· 5S plant patrol by the Safety
Committee (every month)· 5S area contest (mutual evaluation performed at eachwork site 4 times a year)
Natural disaster
Preparation drill· Big Cleaning Day (twice a year)*An abbreviation of “Strategic Toxic Air Reduction”, it is aplan for reducing air pollutants.

Exhaust Flues
Catalytic
Combustor

Living Together with the Local Community
Monthly meetings are held between ZEON's
representatives and residents living near the
Kentucky Plant as well as owners of small andmedium-sized businesses.
This group is endeavoring to improve the quality oflife in the surrounding district by representing
community opinions and providing advice.
56

Living Together with the Local Community
This year we donated a total of 34,000 baht, including
a donation of unused personal computers to local

schools.

Living Together with the Local Community
We participated in a sports festival hosted by theindustrial complex where this compay is located,deepening its interaction with neighboring businesses.
Our contributions to the community totaled 40,000
baht, which included a donation of stationery andwriting materials toneighboring elementary
schools and assistanceto a care facility fordisadvantaged children
sponsored by the Thai
royal family on Children's Day.
Donation of stationery andwriting materials

57

Site Reports

Environment and Safety Activities

Performance

Environment Topics

Management

Name
ZEON Chemicals L.P.
Established
October 12, 1989
Capital
US$ 36,000,000
Investment Ratio ZEON CORPORATION: 100%Company Profile

Overseas Affiliate Activities

Site Report
CSR Report

As ZEON's business has become increasingly globalized, we have established bases in our main
overseas markets to take care of manufacturing, sales and research related to rubber and resin.
These overseas affiliates are performing Responsible Care activities in the same way as the plants
in Japan.

ZEON Chemicals L.P. ZEON Chemicals Europe Ltd.
(United Kingdom)(USA)

ZEON Chemicals Thailand ZEON Advanced Polymix(Thailand)Co., Ltd.
(Thailand) Co., Ltd.
Message

Company Profile

Company Profile

Name
ZEON Chemicals Europe Ltd.
EstablishedFebruary 6, 1989
Capital
STG £23,300,000
Investment Ratio ZEON CORPORATION: 100%

Head Office4100 Bells Lane, Louisville,
Kentucky 40211, U.S.A.
TEL:+1-502-775-7700
FAX:+1-502-775-7714

Head Office

Main Business

Manufacture & Sales of Synthetic Rubber

Main Business

Sully, Vale of Glamorgan,
CF64 5ZE, United Kingdom
TEL:+44-1446-725400
FAX:+44-1446-747988
Manufacture & Sales of Synthetic
RubberName
Established
CapitalInvestment Ratio
Head Office

Main Business

ZEON Chemicals Thailand Co., Ltd.
May 9, 1996
BHT 350,000,000
ZEON CORPORATION: 73.9%
3 Tambol Huaypong, Soi G-14
Pakorn-Songkhororat Road,
Amphur Muang, Rayong 21150,Thailand
TEL:+66-3-868-5973~5
FAX:+66-3-868-5972
Manufacture & Sales of Petroleum Resin

Company Profile
Name
ZEON Advanced Polymix Co., Ltd.
Established
April 26, 1995
CapitalBHT 100,000,000
Investment Ratio ZEON CORPORATION: 40%
Head Office111/2 soi Nikom 13, Moo 2
T.Makhamkhoo, Nikompattana Subdistrict, Rayong 21180, Thailand
TEL:+66-2-261-0175
FAX:+66-2-261-0172
Main Business Manufacture & Sales of Rubber Carbon
Master Batch

Environment and Safety Activities

Environment and Safety Activities

Since 2006, ZEON's Kentucky Plant has been required
to meet a district regulation known as “STAR”*. Overthe last three years, We have of its own accord
reduced atmospheric emissions of butadiene,
acrylonitrile and ethyl acrylate from the plant by 20%,and the company is currently striving to further
reduce emissions by half to satisfy STAR
requirements.

Environment Topics
The new European regulation on chemicals REACH
came into force in June 2007. In response, we havenominated in-house REACH managers and havestarted relevant activities.
First of all, we made a list of all the raw materials
used in the plant and started laying preparations forpreliminary registration by, for example, sending a
letter of inquiry to the manufacturer of each raw
material asking whether it wished to register for
REACH.
The SS (suspended solids) density of the company's
industrial waste water discharge exceeds theregulation value, and We have pressing ahead with
the introduction of a sand filtration unit as acountermeasure. At present, the test machine has
confirmed a reduction, and we are planning to
introduce the unit after determining the operating
conditions.
Resource and Energy Saving
With the year-on-year rise in the unit cost for steam
owing to the steep rise in oil prices, we are striving to
reduce unit consumption.
We have already started activities for reducing
consumption by using a steam flow meter mounted in
the drying process to identify products that use
significantly more steam than other products andprocesses that use steam uneconomically. By 2008,
we aim to have made a 30% reduction from the 2006
annual consumption.

Activities of the Health and Safety Committee Members
The Health and Safety Committee members performa safety patrol every month in accordance with the"ZCT Safety Manual". Unfortunately, an accident
resulting in work leave occurred in 2006, so as of theend of March 2007, the number of consecutive days
without an accident was 238.
Natural desaster Preparation
As it does every year, we performed a comprehensive disaster preparation drill in November. This
year, two advisors from the prefectural government
observed the drill and gave us feedback after it wasover.
Establishment of Safety Day
Starting in 2007, February
9th was designated Safety
Day and we dispatched a
num-ber of employees to
ZEON's Mizushima Plant
for safety training.
Natural desaster Preparation drill
On-site 5S Activities
This year, we implemented two Big Cleaning Days
per month in preparation for entrenching 5S
activities.

Safety training is performed regularly by an officiallycertified on-site Safety Officer and displays are used
to explain about safety as a part of the National
Safety Week event.
The following 5S activities
were carried out:
· 5S plant patrol by the Safety
Committee (every month)· 5S area contest (mutual evaluation performed at eachwork site 4 times a year)
Natural disaster
Preparation drill· Big Cleaning Day (twice a year)*An abbreviation of “Strategic Toxic Air Reduction”, it is aplan for reducing air pollutants.

Exhaust Flues
Catalytic
Combustor

Living Together with the Local Community
Monthly meetings are held between ZEON's
representatives and residents living near the
Kentucky Plant as well as owners of small andmedium-sized businesses.
This group is endeavoring to improve the quality oflife in the surrounding district by representing
community opinions and providing advice.
56

Living Together with the Local Community
This year we donated a total of 34,000 baht, including
a donation of unused personal computers to local

schools.

Living Together with the Local Community
We participated in a sports festival hosted by theindustrial complex where this compay is located,deepening its interaction with neighboring businesses.
Our contributions to the community totaled 40,000
baht, which included a donation of stationery andwriting materials toneighboring elementary
schools and assistanceto a care facility fordisadvantaged children
sponsored by the Thai
royal family on Children's Day.
Donation of stationery andwriting materials

57

Site Reports

Environment and Safety Activities

Performance

Environment Topics

Management

Name
ZEON Chemicals L.P.
Established
October 12, 1989
Capital
US$ 36,000,000
Investment Ratio ZEON CORPORATION: 100%Company Profile

Third-party Verification
CSR Activity Time line (ZEON Only)Year

2007 CSR Report
Third-party Verification: Statement
Responsible CareZEON CORPORATIONTo Mr. Naozumi Furukawa, President and CEO

September 12, 2007
Japan Responsible Care Council
Verification Council Chairman
Akio Yamamoto
Responsible Care Verification Center Manager
Yasuo Tanaka

1994

ISO9002 certification was registered for the Takaoka Plant (changed to the ISO9001:2000 version in 2002)
ISO9002 certification was registered for the Tokuyama Plant (changed to the ISO9001:2000 version in 2002)

1995

Joined the Japan Responsible Care Council
ZEON declared that it would perform Responsible Care activities
The “ZEON Responsible Care Basic Policy” was established
ISO9002 certification was registered for the Kawasaki Plant (changed to the ISO9001:2000 version in 2003)
ISO9002 certification was registered for the Mizushima Plant (changed to the ISO9001:2000 version in 2003)

1996

The company-wide safety management system was reviewed and strengthened
The “ZEON Safety Philosophy” was establishedThe “Plant Technology Audit System” was established and activities started

1997

The “Company-wide Environment Improvement Project” was establishedThe first “ZEON Safety Month” and “All-ZEON Safety Conference” were held (subsequently held every April)
A code of conduct (“ZEON's 7 Articles”) was established

1998

ISO14001 certification was registered for the Takaoka Plant
The Kawasaki Plant acquired certification after the high-pressure gas safety inspection

1999

ISO14001 certification was registered for the Tokuyama Plant
ISO14001 certification was registered for the Mizushima Plant
ISO14001 certification was registered for the Kawasaki Plant
ISO9001 certification was registered for the polymer departments
The “Risk Management Rules” were established2000

The Takaoka Plant acquired certification after the high-pressure gas safety inspection
Started to publish the “Responsible Care Activity Report” (from the 1999 edition)

2001

The “ZEON Environment Philosophy” was establishedThe “Handling Restricted Materials Rules” were established2002

The “Affiliate Joint Environment and Safety Meeting” was establishedThe “Project for Reducing the Emissions of Substances Subject to the PRTR Law” was establishedThe “Project for Promoting the Development of Energy Conserving Technology” was established2003

The “Energy Management Rules” were established
Revision to the “Risk Management and Compliance Rules”
Action Plan for “ZEON's 7 Articles” was established
The "Rules for Observing Antitrust Laws” were established2004

ISO9001 certification was registered for the Specialty Plastics Division
The “Internal Report System” was established“Compliance Textbook 1” was published2005

The English version of the “Responsible Care Activity Report” was published
Third-party verification was performed for the “Responsible Care Activity Report”“Compliance Textbook II (FAQ)” was published2006

The “Basic Policy Concerning the Establishment of an Internal Controls System” was established

Verification Objective
・The objective of this CSR report verification is to express our opinions, as specialists in the chemical industry, on the items
described below that relate to the 2007 CSR Report (henceforth abbreviated to “the report”) that was issued by the ZEON .
1) The rationality of the calculation and compilation methods used for the performance indices (figures) and the accuracy of the
figures2) The consistency of information other than performance indices (figures) used in the report with documentary evidence and actual
objects
3) An evaluation of the Responsible Care activities
4) Features of the report■Verification Procedures･At the head office, we performed an investigation into the rationality of the compilation and editing methods used for the
performance indices that were reported from each site (plants and affiliates), and we also checked the consistency of theinformation used in the report with the documentary evidence. In both cases, we asked questions of the staff in charge of theoperations and the staff who created the information, and asked them to provide us with documentary evidence and explanations
as required.
･At the Takaoka Plant, we performed an investigation into the rationality of the compilation and editing methods used for the
performance indices that were reported to the head office and into the accuracy of the figures used, and we also checked theconsistency of the information used in the report with the documentary evidence and the actual objects. In both cases, we asked
questions of the staff in charge of the operations and the staff who created the information, and asked them to provide us with
documentary evidence and explanations as required.
･A sampling method was used for the performance indices and information verification.

■Statement
1) The rationality of the calculation and compilation methods used for the performance indices (figures) and the accuracy of the
figures.
・For the calculation and compilation methods used for the performance indices, the Head Office and Tokuyama Plant adopt rational
methods. In those methods, the method to calculate and compile the environmental accounting was improved so that thecalculation and compilation could be performed automatically. For all the other methods, we hope that the performance indices will
be calculated and compiled without manual labor. We also hope that the data calculation formulas for each plant will surely retain
actual values.
･Within the range of our investigation, the performance figures were calculated and compiled correctly.
2) The consistency of information used in the report with documentary evidence and actual objects･We confirmed that the information included in the report was consistent with the documentary evidence and actual objects that we
examined.
･In the draft stage there were some issues concerning the appropriateness of the expressions used and the intelligibility of the text
and figures, but these were corrected by the final version of the report and there are currently no critical items that must bechanged.
3) An evaluation of the CSR activities and Responsible Care (henceforth abbreviated to “RC”) activities
・We judge that the President and management are at the forefront of efforts to prevent accidents cooperating with the plant
employees and there have been no accidents and environmental safety problems.
・We judge that the corporate governance, internal controls & risk management, and compliance systems have been strengthened.
We hope company-wide efforts involving the plants and affiliates to strengthen these systems will be further enhanced in the
future.
・We are worried that the number of workplace injuries, especially for elderly employees, has increased. We hope that the danger
prediction activities to prevent accidents, which are being promoted in the company, will yield results.
・In the Tokuyama Plant, we judge that the plant manager leads the internal audit activities related to environmental safety, theEquipment Information Management system has been newly introduced to prevent omissions in plant safety inspection, equipment
has been introduced that is effective to reduce the emissions of butadiene, and proactive efforts are being made to improve thewaste water processing facilities.
4) Features of the report
・We note that although the “Certified Security / Completion Inspector License” based on the high-pressure gas safety law was
revoked in 2003, the company has gotten recertified as a result of its efforts.

Activity Details

Previous Reports
ZEON has published a report every year since 1999, initially
under the title “Responsible Care Activity Report” and since2006 under the title “CSR Report”.

2005
2004
2003
2002
2001
2000
1999

2006

58

59

Third-party Verification
CSR Activity Time line (ZEON Only)Year

2007 CSR Report
Third-party Verification: Statement
Responsible CareZEON CORPORATIONTo Mr. Naozumi Furukawa, President and CEO

September 12, 2007
Japan Responsible Care Council
Verification Council Chairman
Akio Yamamoto
Responsible Care Verification Center Manager
Yasuo Tanaka

1994

ISO9002 certification was registered for the Takaoka Plant (changed to the ISO9001:2000 version in 2002)
ISO9002 certification was registered for the Tokuyama Plant (changed to the ISO9001:2000 version in 2002)

1995

Joined the Japan Responsible Care Council
ZEON declared that it would perform Responsible Care activities
The “ZEON Responsible Care Basic Policy” was established
ISO9002 certification was registered for the Kawasaki Plant (changed to the ISO9001:2000 version in 2003)
ISO9002 certification was registered for the Mizushima Plant (changed to the ISO9001:2000 version in 2003)

1996

The company-wide safety management system was reviewed and strengthened
The “ZEON Safety Philosophy” was establishedThe “Plant Technology Audit System” was established and activities started

1997

The “Company-wide Environment Improvement Project” was establishedThe first “ZEON Safety Month” and “All-ZEON Safety Conference” were held (subsequently held every April)
A code of conduct (“ZEON's 7 Articles”) was established

1998

ISO14001 certification was registered for the Takaoka Plant
The Kawasaki Plant acquired certification after the high-pressure gas safety inspection

1999

ISO14001 certification was registered for the Tokuyama Plant
ISO14001 certification was registered for the Mizushima Plant
ISO14001 certification was registered for the Kawasaki Plant
ISO9001 certification was registered for the polymer departments
The “Risk Management Rules” were established2000

The Takaoka Plant acquired certification after the high-pressure gas safety inspection
Started to publish the “Responsible Care Activity Report” (from the 1999 edition)

2001

The “ZEON Environment Philosophy” was establishedThe “Handling Restricted Materials Rules” were established2002

The “Affiliate Joint Environment and Safety Meeting” was establishedThe “Project for Reducing the Emissions of Substances Subject to the PRTR Law” was establishedThe “Project for Promoting the Development of Energy Conserving Technology” was established2003

The “Energy Management Rules” were established
Revision to the “Risk Management and Compliance Rules”
Action Plan for “ZEON's 7 Articles” was established
The "Rules for Observing Antitrust Laws” were established2004

ISO9001 certification was registered for the Specialty Plastics Division
The “Internal Report System” was established“Compliance Textbook 1” was published2005

The English version of the “Responsible Care Activity Report” was published
Third-party verification was performed for the “Responsible Care Activity Report”“Compliance Textbook II (FAQ)” was published2006

The “Basic Policy Concerning the Establishment of an Internal Controls System” was established

Verification Objective
・The objective of this CSR report verification is to express our opinions, as specialists in the chemical industry, on the items
described below that relate to the 2007 CSR Report (henceforth abbreviated to “the report”) that was issued by the ZEON .
1) The rationality of the calculation and compilation methods used for the performance indices (figures) and the accuracy of the
figures2) The consistency of information other than performance indices (figures) used in the report with documentary evidence and actual
objects
3) An evaluation of the Responsible Care activities
4) Features of the report■Verification Procedures･At the head office, we performed an investigation into the rationality of the compilation and editing methods used for the
performance indices that were reported from each site (plants and affiliates), and we also checked the consistency of theinformation used in the report with the documentary evidence. In both cases, we asked questions of the staff in charge of theoperations and the staff who created the information, and asked them to provide us with documentary evidence and explanations
as required.
･At the Takaoka Plant, we performed an investigation into the rationality of the compilation and editing methods used for the
performance indices that were reported to the head office and into the accuracy of the figures used, and we also checked theconsistency of the information used in the report with the documentary evidence and the actual objects. In both cases, we asked
questions of the staff in charge of the operations and the staff who created the information, and asked them to provide us with
documentary evidence and explanations as required.
･A sampling method was used for the performance indices and information verification.

■Statement
1) The rationality of the calculation and compilation methods used for the performance indices (figures) and the accuracy of the
figures.
・For the calculation and compilation methods used for the performance indices, the Head Office and Tokuyama Plant adopt rational
methods. In those methods, the method to calculate and compile the environmental accounting was improved so that thecalculation and compilation could be performed automatically. For all the other methods, we hope that the performance indices will
be calculated and compiled without manual labor. We also hope that the data calculation formulas for each plant will surely retain
actual values.
･Within the range of our investigation, the performance figures were calculated and compiled correctly.
2) The consistency of information used in the report with documentary evidence and actual objects･We confirmed that the information included in the report was consistent with the documentary evidence and actual objects that we
examined.
･In the draft stage there were some issues concerning the appropriateness of the expressions used and the intelligibility of the text
and figures, but these were corrected by the final version of the report and there are currently no critical items that must bechanged.
3) An evaluation of the CSR activities and Responsible Care (henceforth abbreviated to “RC”) activities
・We judge that the President and management are at the forefront of efforts to prevent accidents cooperating with the plant
employees and there have been no accidents and environmental safety problems.
・We judge that the corporate governance, internal controls & risk management, and compliance systems have been strengthened.
We hope company-wide efforts involving the plants and affiliates to strengthen these systems will be further enhanced in the
future.
・We are worried that the number of workplace injuries, especially for elderly employees, has increased. We hope that the danger
prediction activities to prevent accidents, which are being promoted in the company, will yield results.
・In the Tokuyama Plant, we judge that the plant manager leads the internal audit activities related to environmental safety, theEquipment Information Management system has been newly introduced to prevent omissions in plant safety inspection, equipment
has been introduced that is effective to reduce the emissions of butadiene, and proactive efforts are being made to improve thewaste water processing facilities.
4) Features of the report
・We note that although the “Certified Security / Completion Inspector License” based on the high-pressure gas safety law was
revoked in 2003, the company has gotten recertified as a result of its efforts.

Activity Details

Previous Reports
ZEON has published a report every year since 1999, initially
under the title “Responsible Care Activity Report” and since2006 under the title “CSR Report”.

2005
2004
2003
2002
2001
2000
1999

2006

58

59

2007

2007
CSR Report

ZEON CORPORATION
http://www.zeon.co.jp

2007

Corporate Social Responsibility

CSR ReportShin-Marunouchi Center Building, 1-6-2 Marunouchi,
Chiyoda-ku,Tokyo 100-8246 Japan
TEL:03-3216-1341
FAX:03-3216-0516

This booklet has been printed on paper
made from forests that are managed inaccordance with internationally agreed
principles and standards with respect
to economic, social and environmental
considerations.

ZEON CORPORATIONZEON CORPORATION CSR Department

ZEON CORPORATION