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

The Tokuyama Plant, which started operating in 1965, is located in the Shunan
Industrial Complex of Yamaguchi Prefecture. The plant manufactures butadiene
with the GPB process, an extraction distillation technology developed by ZEON, andthen uses the butadiene to produce synthetic rubber, a raw material in fuel-efficienttires; synthetic latex, a raw material in surgical rubber gloves; and polymerized tonerfor printers, a product that ZEON was first in the world to produce on an industrialscale. The Tokuyama Plant operates on a global level as ZEON Corporation's key

Aerial view of the Tokuyama Plant

synthetic rubber producer, exporting many of these products to overseas markets.
The Shunan Industrial Complex is said to have had its start when Kodama Gentaro, general of the Japanes e
Imperial Army and native of Tokuyama (currently Shunan City), recognized the advantages of Tokuyama as a port
location and, responding to military demand created by the Russo-Japanese War, decided to construct a coalbriquette manufacturing plant there for the navy in 1905. Shunan has since become a manufacturing hub for thepetrochemical industry and many other industries.
Wander around the Tokuyama Plant today and you will find various remnants from olden days when the site wasused for the manufacture of coal briquettes. Most symbolic of this history is ZEON Shrine, built in 1966 in dedication
to the divided portions (bunshin) of the three kami of Nachi Gongen, Sumiyoshi Myojin, Toishi Hachiman and to pray
for safe operations, employee health, and business growth. To the west of the shrine is the "monument of martyrs,"
erected in 1924 to commemorate martyrs from the Tokuyama area, along with other artifacts.
While basing its operations on the principle of safety and stability first, the Tokuyama Plant tries to build rapport
with its local community in various ways. For example, the plant hosts the annual Waraku Odori Dance Festival andhas also invited local residents to observe its emergency-response drills.

The Tokuyama Plant is located adjacent to the city center and residential areas around Tokuyama Station. To
support the sustainable growth of society and earn the trust of the local community based on safe, stable operations,
we are creating a dynamic and productive plant. To do this we introduce production innovations with the fullparticipation of all employees under the banner, “Greetings and 3Ss (seiri, seiton, and seisou, or neatness,orderliness, and cleanliness) are the Foundation of Everything We Do.” Employees at the plant actively coll aborate
with the local community to tackle various public issues, including collecting bottle caps and can tabs and cleaning
nearby streets and the Higashi River, which flows alongside the plant.

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

1. Reducing toxic chemical substances
In fiscal 2011, we introduced an exhaust gas purification system, which has allowed us to further reduce emissionsof substances subject to PRTR regulations. PRTR emissions in fiscal 2012 were 2.7 tons. Moving closer to zeroemissions, our future target is 2.2 tons of emissions or less.

Substances subject to PRTR law

2. Reducing industrial waste
In fiscal 2008, we set a zero emissions plan for industrial waste sent to landfills. We achieved zero tons per year infiscal 2010 and have maintained this standard by meticulously separating waste generated at the plant and throughrecycling and reuse efforts. Going forward, we intend to maintain our zero-landfill-waste performance and further
promote and manage 3R (reduce, reuse, and recycle) activities to contribute to a more sustainable society.

Amount of Waste to Landfill-2-FY2013 CSR Website CSR > Site Reports > Worksites > Tokuyama Plant

3. Reducing air and water pollution
We were able to steadily reduce NOx emissions into the air through energy conservation and improved combustionby installing dry air emission processing equipment and optimizing the amount of combustible air of the boilers. We
also switched to lower sulfur fuel in an aim to slash SOx emissions. For water pollution, we are reducing COD andtotal nitrogen discharge every year by upgrading our wastewater treatment facilities and improving our treatment
methods.
Based on these efforts we were able to clear all our environmental standards, and in fiscal 2013 we plan tomaintain our current performance.

CO2 emissions

SOx and NOx emissions-3-FY2013 CSR Website CSR > Site Reports > Worksites > Tokuyama Plant

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

4. Saving resources and energy
To aggressively address technical issues associated with energy-hungry facilities, we organized an energy
conservation work group and promotion committee at the plant that draws upon the expertise of a professional
consultant. We are also mobilizing the collective knowledge of all employees to achieve our target for reducing unit
energy consumption to less than 90% of 1990 levels through day-to-day operational management. While progress insolving this extremely difficult problem has been unremarkable so far, we are steadfastly seeking improvements byreviewing actions from every perspective and introducing innovative technologies.

Total amount of energy and Unit energy consumption index-4-FY2013 CSR Website CSR > Site Reports > Worksites > Tokuyama Plant

5. Environmental Data
Tokuyama Plant

FY2008FY2009FY2010FY2011FY2012

191,364

188,743

217,074

186,784

181,275

15

2.8

0.7

1.4

1.2

12,26314,366

16,916

13,697

13,600

0.7

0.7

0.6

0.60.6

417,519

386,572

464,767

388,603391,766

18

7.6

2.2

3.1

2.7

25,881

19,84521,516

18,71816,939

4,512

3,857

3,756

3,762

3,505

15

10

0.0

0.0

0.0

CO2 emissions (tons)

275,000

252,091

294,112248,294

241,974

SOx emissions (tons)

547

446.9

483.0

502.3

321.5

311

308

358

272

243

8,455

8,630

7,824

9,482

8,788

Butadiene consumption (tons)
Toxic substances

Butadiene emissions (tons)
Acrylonitrile consumption (tons)
Acrylonitrile emissions (tons)

Substances
subject to PRTR
law

Industrial waste

Atmosphericemissions

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 (1,000 m )3
Total waste water discharge (1,000 m )Waste water

Energy

7,704

7,713

6,942

7,884

8,288

COD emissions (tons)

79

68

77

69

58

Total phosphorus discharge (tons)

0.8

0.5

0.7

0.6

0.6Total nitrogen discharge (tons)

32

31

33

27

27

100,50293,485

107,497

90,95590,469

106%

102%

98%

99%

102%

518,702503,567

599,400

498,167

487,782

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

Production of PDR equivalent (tons)

In line with ZEON's Mid-Term Management Plan, including the Enterprise Blueprint for 2020: “ZEON creates thefuture today through the power of chemistry,” the Tokuyama Plant continuously improves and innovates its
production technologies to achieve a 100% yield rate* and build certifiable quality into all of its products. We aim tobe a plant that consistently delivers high-quality products that satisfy our customers.
* Yield rate
The percentage of products rolling off the production line that pass quality inspections. A 100% yield rate means that no def ective products were produced.

VOICEFor Safer, More Reliable, More Socially Responsible Products

Our mission at the Tokuyama Plant is not just to produce products that satisfy
standards. Our products should have a greater purpose: to contribute to society's
sustainable growth, to help improve the global environment, and to fulfill ZEON's
CSR Policy. To achieve this, zero accidents, zero injuries, and zero pollution areobviously important. But we also need to achieve zero PRTR emissions, reduce
CO2 emissions, and by stabilizing manufacturing operations, develop a cost
structure by which we can secure a profit even at low capacity utilization.

Shinichi Hirakawa,
Tokuyama Plant Manager

As the parent plant* of a plant currently under construction in Singapore that willproduce synthetic rubber for fuel-efficient tires, the Tokuyama Plant also needs to support its overseas production
centers, not only technically but by developing human resources that can drive reforms and improvements from a-5-FY2013 CSR Website CSR > Site Reports > Worksites > Tokuyama Plant

global perspective. I hope to draw on the knowledge of all our employees in our quest for greater innovation inproduction.
* Parent plant
A plant that applies new technologies developed in Japan before they are adopted at overseas subsidiary plants.

1. Interaction with the local community (38th ZEON Waraku Odori Dance Festival)
ZEON's Waraku Odori Dance Festival is one of Shunan district's annual summer
evening events and is organized by Tokuyama Plant employees. Since 1974, thisold-fashioned summer festival has fostered connections among our most valued
stakeholders, including local residents and plant employees and their families. Theevent is a popular attraction every year, and in 2012 the festival saw an attendanceof more than 2,500 people, making it a great success. Employees talked with local
residents as they served up foods such as yakitori and oden. The Waraku Odori, aZEON Waraku Odori Dance Festivalsimple dance that encourages everyone to join, topped off the evening.
The Tokuyama Plant will forever cherish its relationship with local residents and contribute to environmental
protection and social welfare.

2. Local Public Relations (RC regional informational meeting and plant tour)
In fiscal 2012, we again invited the chairpersons and vice chairpersons of fiveneighborhood associations in the vicinity of our plant to the RC regional
informational meeting and plant tour, held for the eighth time.
In addition to reporting our business activities, we also explained our activities toprevent accidents, disasters, and troubles as well as minimize harm in the event of
an incident and our environmental preservation activities while including actualexamples. Afterward, participants took a tour of the plant by bus.

Reporting our business activities

Our goal now and in the future is to realize a safe and secure plant that allows all
local residents to have peace of mind.

Plant tour-6-