FY2013 CSR Website CSR > Site Reports > Worksites > Mizushima Plant

Kurashiki City is not only a tourist spot famous for its traditional white-walled
storehouses, it is also one of the top industrial cities in western Japan, shipping
products worth a total of 4 trillion yen. Most of these products are manufactured at
the Mizushima industrial complex, an area packed with corporations that produce awide variety of products ranging from iron and steel, ships, electricity, cars, food,and chemical products. The view of the complex from Mt. Washu is a sight to behold.
ZEON Corporation's Mizushima Plant is situated in one corner of this complex.

Aerial view of the Mizushima Plant

The plant is the largest diversified user of C5 fractions * in the world, utilizing the characteristics of the various
compounds extracted from raw materials to change them into adhesive tape, diapers, tires, paint, fragrances, opticalfilm, and lenses. The plant supports the lifestyles of consumers by providing familiar items crucial for society and toeveryday life.
The measures related to stability and safety implemented during production at this plant were introduced in theNHK program Today's Close-Up on January 16, 2013. The program's theme was the “crisis of the complex,” andZEON received high acclaim for its efforts to create a digital record of the experience and knowledge of veterantechnicians, and integrate this into the production system to ensure a level of safety equal to that maintained by such
veterans. However, ZEON also realizes that there are still plenty of issues and room for improvement, and willcontinue to implement further measures in the future.
Our mission is to be an environmentally friendly plant that is appreciated by the local community and meets thediverse needs of customers by safely producing consistently high-quality products.
* C5 fractions
Hydrocarbon molecules containing five carbon atoms. They are the byproduct of thermal cracking, or breaking down, of naphtha, a nd also include ingredients for raw materials ofsynthetic rubber and resin.

The slogan of the Mizushima Plant is "Visualize operations based on ABC, continually improve, and standardizethese efforts." The plant strives to firmly root ABC culture (atarimae, bakashoujiki, and chanto, or in English: toearnestly and properly perform all of the routine but necessary tasks) and to implement production innovation.
We take these steps because we believe that we can uphold safety as our highest priority and continuously provide
society with products of consistent quality only when every employee takes great care to abide by the law and follow
ZEON's operational rules and procedures.
We are working to ensure that the Mizushima Plant meets the expectations of the local community and society atlarge in its pursuit of safety and stability, achieved by firmly rooting ABC culture and through production innovation.

-1-FY2013 CSR Website CSR > Site Reports > Worksites > Mizushima Plant

1. Reducing toxic chemical emissions
Our plant has been butadiene-emission-free since fiscal 2002, when we adopted a closed recovery and processing
system. By measuring and reducing our VOC *1 emissions through PRTR *2 activities, we will continue to help
conserve the environment.
*1 Pollutant Release and Transfer Register
A database of hazardous chemical substances released into the environment and transferred off -site in waste. It provides the public with important information such as where andhow much pollutants are being released and transferred.
*2 Volatile Organic Compounds
Organic compounds that change easily to a gas phase and enter the air.

Substances subject to PRTR law

2. Reducing industrial waste
Starting in fiscal 2011, we set a target of 5 tons or less for waste sent to the landfill. In fiscal 2012, this amountunfortunately exceeded targets at 5.4 tons, but going forward we will reduce the amount by implementing efforts
including reducing waste by shifting towards selling it as a valuable resource, reusing beverage bottles, andrecycling plastics as solid fuels (the “three Rs”).

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Amount of Waste to Landfill

3. Reducing air and water pollution
We work to comply with standards for soot, smoke and waste-water output through daily monitoring and regular
third-party assessments. We also implement checks on whether we are having a detrimental impact on the local
area by monitoring hazardous air pollutants and noise levels at the boundaries of the plant. Wastewater from t heMizushima Plant flows into the Seto Island Sea, a semi-enclosed body of water. Due to the fact that in an emergency
situation this could impact a large number of people's lives, we are constantly conscious of waste-water and managelevels on a daily basis. We know that complying with environmental standards is only the bare minimum level of
conduct a corporation should exhibit, and will thus continue to strive to implement environmental protection.

CO2 emissions-3-FY2013 CSR Website CSR > Site Reports > Worksites > Mizushima Plant

SOx and NOx emissions

Overall wastewater, COD, total nitrogen (TN) and total phosphorus (TP) discharge

4. Saving resources and energy
We are working to achieve targets for energy and resource reduction through efforts including the improvement ofoperation rates achieved by reduction of amounts of steam used and stabilization of bottleneck processes. We arestriving forward while looking at our goal from a variety of perspectives, since even activities that do not seem toproduce significant results can accumulate to have a major impact.

-4-FY2013 CSR Website CSR > Site Reports > Worksites > Mizushima PlantTotal amount of energy and Unit energy consumption index

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

Industrial waste

Atmosphericemissions

FY2008FY2009FY2010FY2011FY2012

133,483

139,340

144,820

136,385

130,154

0.0

0.0

0.0

0.0

0.0

285,584

293,497405,671442,900

431,800

1.0

1.0

4.4

4.4

4.6

35,48845,09360,04560,40056,270

4,849

5,006

5,374

5,935

4,830

19

6.6

6.8

3.7

5.4

CO2 emissions (tons)

315,893219,343

217,000

259,651

197,800

SOx emissions (tons)

24.3

4.6

3.8

2.7

63

75

77

80

66

2,343

2,189

2,378

2,481

2,351

2,200

2,150

2,382

2,640

2,429

COD emissions (tons)

1111

13

15

13

Total phosphorus discharge (tons)

0.5

0.4

0.6

0.6

0.7

Total nitrogen discharge (tons)

15

12

17

16

15

110,690

77,93077,852

91,56675,100

84%

51%

44%

56%

46%

563,495

648,665

760,900

731,500

705,400

Vinyl chloride monomer consumption (tons)
Vinyl chloride monomer emissions (tons)
Consumption (tons)
Amount emitted (tons)
Amount generated (before volume reduction)(tons)
Amount generated (after volume reduction)(tons)
Amount sent to landfill (tons)

NOx emissions (tons)
Water resources (Industrial water + Ground water +3Waterworks) consumption (1,000m )3
Total waste water discharge (1,000m )Waste water

EnergyTotal consumption (crude oil equivalent, kL)
Unit consumption index (1990 = 100)

Production of PDR equivalent (tons)-5-

FY2013 CSR Website CSR > Site Reports > Worksites > Mizushima Plant

In line with ZEON's Mid-Term Management Plan, SZ-20, including the Enterprise Blueprint for 2020: “ZEON creates
the future today through the power of chemistry,” the Mizushima Plant aims to realize global production technologies
that, through appropriate management of what we call the 4Ms—Material, Machine, Method, and Man—enableanyone anywhere in the world to produce great products with consistent quality. We hope to realize the Enterprise
Blueprint by using our quality management systems to improve the technologies we develop.

VOICEIn Preparation for 2020

In fiscal 2012 we continued efforts aimed at achieving 100% yield rates *1. First, in aneffort to stabilize product quality, we created CAPD action sheets to visualize themanagement of this process. CAPD is our version of the PDCA cycle that starts with“checking” to see that existing systems have no problems or inadequacies, and thentaking “action.” We endeavor to ensure that day-to-day actions are implemented on
an ongoing basis, however, by positioning this as a key theme, our process

Toru Nishijima, Corporate Officer andcapability indexes *2 improved. However, we are continuing forward with theseMizushima Plant Managerefforts, as we have yet to achieve 100% yield rates.
Another task we need to accomplish by fiscal 2020 is standardizing technologies so that overseas plants canmanufacture products with the same level of quality. This is our responsibility as a parent plant *3. In fiscal 2012, we
worked to improve proprietary technologies using project structuring by stationing employees from Head Office andlaboratories at plants. As a result, we achieved significant improvements in process stabilization and processcapability indexes. We will move forward with these efforts in order to standardize these technologies and resolve
remaining issues in fiscal 2013.
*1 Yield rate
The percentage of products rolling off the production line that pass quality inspections. A 100% yield rate means t hat no defective products were produced.
*2 Process capability index
An indicator that quantitatively assesses the ability of a given process to meet certain quality standards.
*3 Parent plant
A plant that applies new technologies developed in Japan before they are adopted at overseas subsidiary plants.

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FY2013 CSR Website CSR > Site Reports > Worksites > Mizushima Plant

1. Engaging the Local Community
In an effort to proactively interact with the region, we participated incommunity-organized events, such as the summer festival and rice-cake making.

Participated in community-organizedrice-cake making

2. Comprehensive emergency drill
The Mizushima Plant conducts comprehensive emergency drills every September in
conjunction with Disaster Prevention Day. Local fire departments and the Mizushima
Industrial Complex's joint disaster prevention team join our in-house firefighting teamin training, with each team perfecting their own response skills.
In fiscal 2012 we also implemented tsunami evacuation drills, launching efforts to
prepare for an earthquake in the Tonankai area.

Comprehensive

emergency

responsedrill

Tsunami evacuation drill

3. Local volunteering
In an effort to support and cheer up local residents, the Mizushima Plant commenced
voluntary neighborhood cleanups in 2006. In 2012 we took these efforts a step further,cleaning up areas together with local residents. Going forward we will continue in ourendeavors, while remembering the novice spirit.

Volunteering to cleanup areas together
with local residents-7-