FY2014 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 GPBprocess, an extraction distillation technology developed by ZEON, and then uses thebutadiene to produce synthetic rubber, a raw material in fuel-efficient tires; synthetic latex, araw material in gloves for medical and testing use; and polymerized toner for printers, aproduct that ZEON was first in the world to produce on an industrial scale. The Tokuyama
Plant operates on a global level as ZEON Corporation's key synthetic rubber producer,
Aerial view of the Tokuyama
Plant

exporting many of these products to overseas markets.
The Shunan Industrial Complex is said to have had its start when Kodama Gentaro, generalof the Japanese Imperial Army and native of Tokuyama (currently Shunan City), recognized the advantages of Tokuyama as aport location and, responding to military demand created by the Russo-Japanese War, decided to construct a coal briquette
manufacturing plant there for the navy in 1905. Shunan has since become a manufacturing hub for the petrochemical industry
and many other industries.
Wander around the Tokuyama Plant today and you will find various remnants from olden days when the site was used as anaval fueling station. 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, andbusiness growth. To the west of the shrine is the "monument of martyrs," erected in 1924 to commemorate martyrs from theTokuyama 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 and has 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 thesustainable growth of society and earn the trust of the local community based on safe, stable operations, we are creating adynamic and productive plant. To do this we introduce production innovations with the full participation of all employees underthe banner, “Greetings and 3Ss (seiri, seiton, and seisou, or neatness, orderliness, and cleanliness) are the Foundation ofEverything We Do.” Employees at the plant actively collaborate 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-FY2014 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 stably reduce emissions ofsubstances subject to PRTR regulations. PRTR emissions in fiscal 2013 were 2.0 tons, which is a 26% reduction on theprevious year. Moving closer to zero emissions, our future target is 1.9 tons of emissions or less.
Substances subject to PRTR law

2. Reducing industrial waste
We have continually achieved zero waste since fiscal 2010.
We are developing activities in connection to industrial waste with the goal of further implementing 3R* and reducing the amountof waste produced.
* 3RReduce, reuse, and recycle.

Amount of Waste to Landfill-2-FY2014 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 combustion by installing
dry air emission processing equipment and optimizing the amount of combustible air of the boilers. However, in fiscal 2013, wewere unable to switch to lower sulfur fuel and SOx emissions therefore increased. In the second half of fiscal 2014, we will beable to stably reduce SOx emissions due to the completion of new boilers, which are currently under construction.
For water pollution, we are reducing COD and total 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 2014 we plan to maintain our currentperformance.
CO2 emissions

SOx and NOx emissions-3-FY2014 CSR Website CSR > Site Reports > Worksites > Tokuyama Plant

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

4. Saving resources and energy
We organized an energy conservation work group and promotion committee at the plant, and we have concluded a mid-termplan to promote improvements in connection to technical issues associated with energy-hungry facilities. 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 in solving this extremely difficult problem has been
unremarkable so far, we are steadfastly seeking improvements by reviewing actions from every perspective and introducing
innovative technologies.
Total amount of energy and Unit energy consumption index-4-FY2014 CSR Website CSR > Site Reports > Worksites > Tokuyama Plant

5. Environmental Data
Tokuyama Plant

FY2009FY2010FY2011FY2012FY2013

188,743

217,074

186,784

181,275

206,710

2.8

0.7

1.4

1.2

0.8

14,366

16,916

13,697

13,60017,4640.7

0.6

0.6

0.6

0.6

386,572

464,767

388,603391,766

453,075

7.6

2.2

3.1

2.7

2.0

Amount generated (before volumereduction) (tons)

19,84521,516

18,71816,93919,201

Amount generated (after volume reduction)(tons)

3,857

3,756

3,762

3,505

3,377

10

0.0

0.0

0.0

0.0

CO2 emissions (tons)

252,091

294,112248,294

239,609279,750

SOx emissions (tons)

447

483

502

322

471

NOx emissions (tons)

308

358

272

243

205

Soot emissions (tons)

7.5

12.1

7.7

5.73.5

8,630

7,824

9,482

8,788

8,927

7,713

6,942

7,884

8,288

8,165

COD emissions (tons)

68

77

69

58

49

Total phosphorus discharge (tons)

0.5

0.7

0.6

0.6

0.7

Total nitrogen discharge (tons)

31

33

27

27

28

Total consumption (crude oil equivalent, kL)

93,485

107,497

90,95590,648103,000

Unit consumption index (1990 = 100)

102%

98%

99%

102%

99%

503,567

599,400

498,167

487,782

573,961

Butadiene consumption (tons)

Toxicsubstances

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

Substances
subject to
PRTR law

Industrial
waste

Consumption (tons)
Amount emitted (tons)

Amount sent to landfill (tons)

Atmosphericemissions

Water resources (Industrial water + Ground water +3
Waterworks) consumption (1,000 m )3

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

EnergyProduction of PDR equivalent (tons)-5-FY2014 CSR Website CSR > Site Reports > Worksites > Tokuyama Plant

In line with ZEON's Mid-Term Management Plan, including the Enterprise Blueprint for 2020: “ZEON creates the future todaythrough the power of chemistry,” the Tokuyama Plant continuously improves and innovates its production technologies toachieve a 100% yield rate* and build certifiable quality into all of its products. We aim to be 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 defective products were produced.

VOICE For 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 are obviously important. But we alsoneed to achieve zero PRTR emissions, reduce CO2 emissions, and by stabilizing
manufacturing operations, develop a cost structure by which we can secure a profit evenat low capacity utilization.
As the parent plant* of a plant currently under construction in Singapore that will produce

Shinichi Hirakawa, Tokuyama
Plant Manager(as of April 2014)

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 global perspective. I hope todraw on the knowledge of all our employees in our quest for greater innovation in production.
* 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 (39th 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, this old-fashioned
summer festival has fostered connections among our most valued stakeholders,
including local residents and plant employees and their families. The event is a popular
attraction every year, and in 2013 the festival saw an attendance of more than 2,000
people, making it a great success. Employees talked with local residents as they servedup foods such as yakitori and oden. The Waraku Odori, a simple dance that encourages

ZEON Waraku Odori Dance
Festivaleveryone to join, topped off the evening.
The Tokuyama Plant will forever cherish its relationship with local residents andcontribute to environmental protection and social welfare.
2. Local Public Relations (RC regional informational meeting and plant tour)
In fiscal 2013, we again invited the chairpersons and vice chairpersons of fiveneighborhood associations in the vicinity of our plant to the RC regional informational

Plant report meeting

meeting and plant tour, held for the ninth time.
During the summer vacation, we held two Parent-And-Child Classrooms, sponsored by
the Chamber of Commerce and Industry, which included making super balls in thelaboratories, and taking a tour of the plant by bus.
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.
Laboratory-6-