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TOKUYAMA Envi
CONTENTS
 Summary of Business Message from the President
Environmental Management Basic Philosophy
 Material Flow Balance in Our Production Activities
 Results of Fiscal 2003 Activities
 Environmental Accounting
RC Promotion System and Management
Systems Operation

Environmental Performance
Reducing and Recycling Waste Materials
 Energy Conservation(Global Warming Prevention Measures) Reduction of Air and Water Pollutants
 Development of Environmentally-Friendly
Products and Environmental TechnologiesComprehensive Safety Management of Chemicals
Promoting Safety and Environmental
Management in the Distribution Process

Summary of Business



3,000

Company Outline

2,000

Established:

1,500

February 16, 1918

Headquarters: Shibuya Konno Bldg.
3-1, Shibuya 3-chome,
Shibuya-ku,
Tokyo 150-8383,
Japan
Production and Research Sites:
Tokuyama Factory,
Kashima Factory,
Tsukuba ResearchLaboratory
Capital:JPY 19,273 million (as ofMarch 31, 2004)

1,733

2,269

1,540

0

1999

2000

2,255

1,514

2,193

1,450

2001

2002

2003
(Fiscal year)

Current Profit
140

Non-consolidated
Consolidated(JPY 100 million)
115

120
100

92

92
78

80

63

66

58
37

40

40

25

20
0

1999

2000

2001

2002

2003
(Fiscal year)

Number of Employees
Segmental Sales Breakdown

6,000

Non-consolidated
Consolidated(Persons)(Fiscal 2003)

5,000

 Group Participation
 Tokuyama RC Activities—Historical Overview

Cement,Building
Materials,
andOthers

Editorial Notes

708
32%

and health in fiscal 2003 to the attention of all concerned,

1,806

500

60

Site Report—Co-existence with Local Communitiesof bringing Tokuyama’s activities on the environment, safety,

2,441

1,000

Environmental Communications

This Environmental Report 2004 was prepared with the aim

Consolidated

2,241

Process Safety and Disaster Prevention/
Occupational Health and Safety

 Tokuyama Factory
 Kashima FactoryNon-consolidated(JPY 100 million)

2,500

Social Performance



Sales

4,685

4,615

4,568

4,000

Chemicals

3,000

889
41%

2,000

Total
2,193

2,540

2,415

2,276

2,179

2,113

1,000
0

Specialty Products(JPY
100 million)

4,868

4,788

1999

2000

2001

2002

2003
(Fiscal year)

596
27%

such as stakeholders, customers, employees and theirfamilies, people living near its sites, and the general public.
The report now contains a broader range of information andmore data based on actual figures compared with last year’s
report. It also contains performance data of Tokuyama’sgroup companies to the fullest extent possible. The reportfollows the corresponding guidelines (2003 edition) issued

Business Segments and Main Products
Segment

by the Ministry of the Environment.

Scope of Report
Period:From April 2003 to March 2004

Companies: Tokuyama Corporation. The 10 consolidated
manufacturing companies are also covered insome data.
Region:

Activities in Japan

Main Products

Caustic soda, soda ash, calcium chloride, sodium silicate, vinyl chloride
monomer and polyvinyl chloride, propylene oxide, isopropyl alcohol,
Chemicals methylene chloride, biaxial-oriented polypropylene films, multilayer coextrusion films, cast polypropylene films, microporous films

Specialty
products

Polycrystalline silicon, amorphous precipitated silica, fumed silica,
aluminum nitride, dental materials, pharmaceutical, agricultural chemicalbulks and intermediates, plastic lens materials, ion-exchange
membranes, methylene chloride for washing metal, solvent for
semiconductor base materials, environment-related items, medical
diagnosis systems, gas sensitive semiconductors

Cement Ordinary Portland cement, high early strength Portland cement, blastbuilding furnace slag cement, ready-mixed concrete, plastic window sashes,
materials
and others cement type stabilizer, waste treatment

ronmental Report
Message from the President

Working toward creating a sustainable society withthe concept of “Environmental Management” placedat the core of our managerial strategies.
Economic and social activities in the 20th century, characterized by mass production and massconsumption, have greatly benefited human beings. On the other hand, they have also brought
about environmental problems, such as global warming and concerns about the depletion ofnatural resources. Reflecting on this situation, we must be determined to make the 21st century
the “Century of the Environment,” in which we pay full respect to the value of the global
environment and make efforts to ensure our harmonious coexistence with it. The chemicalindustry has made available a variety of chemical products to society and contributed toenhancing the wealth of our life. At the same time, as a chemical company, we are well aware of
the indispensable necessity of giving due consideration to the environment and human health toensure that they are not harmed by chemical products.
The above viewpoint has driven us to voluntarily conduct activities according to the spirit of
Responsible Care which is globally active in the chemical industry. We put emphasis onprotecting the environment, safety, and human health over the entire life cycle of our chemical
products, that is, from product development through production, distribution, and application, to
final consumption and disposal.
We have chosen to add “Environment and Energy” to our key growth strategy and alsodecided to implement the concept of “Environmental Management” at the core of our strategies
in our mid-term corporate plans. We believe that the concept of “Environmental Management” isan important management approach that addresses environmental issues as critical concerns.
Based on this approach, we have set ourselves the mission of enhancing corporate value,
contributing to creating a sustainable society and being environmentally responsive throughrestructuring all aspects of our business activities, from research and development tomanufacturing and selling.
Taking advantage of our unique position as a manufacturer of both chemicals and cements,
we have maintained our resolute commitment to recycling by-products and waste materials. In
2000, we established our Recycling and Environmental Department, and in fiscal 2003, it handled
1,460,000 tons of outsourced waste materials and by-products for use in cement production. We
will maintain these activities that help reduce consumption of natural resources, thereby
contributing to creating a “Sustainable Society” and positioning ourselves where society andcustomers can call Tokuyama Corporation their “Company of Choice.”
Ongoing environment-related technological innovations that realize reduced environmentalload and preservation of natural resources through recycling technology are expected to further
facilitate economic and social activities. It is said that such developments will cause an“Environmental Revolution” in the 21st century; a revolution that will be comparable to the“Industrial Revolution” and the “IT Revolution.” In line with this, our Company is committed totaking a role in the “Environmental Revolution” as a “Chemical Company with TechnologicalCore Competence.”
July 30, 2004
Shigeaki Nakahara
PresidentEnvironmental Management

Basic Philosophy
By setting ourselves a definite basic policy and action objectives, we are committed to promoting company-wide
environmental management and to sufficiently fulfilling our corporate social responsibilities in an effort to realize asustainable, recycling-based society.

Basic Policy
As a member of the Japan Responsible Care Council, Tokuyama Corporation carries out Responsible Care
activities that protect the environment and preserve safety and health throughout the entire chemical
substance life cycle, from development and manufacturing, to distribution, use, final consumption, anddisposal. Our social mission is to aggressively tackle and solve environmental issues in particular, which, inturn, will lead to sustainable corporate and social development. Based on this recognition, we are promoting“Environmental Management,” a management policy that emphasizes the environment, in all of our businessactivities, including development, manufacturing, and sales.

Action Objectives
1. Promote environmental protection.

• Implement ISO14001 based Environmental Management System and reduce environmental loads.
2. Observe laws and regulations.

• Observe international rules, local laws and regulations, and industrial standards.
• Thoroughly practice internal export control rules.
3. Promote energy conservation and curb global warming.

• Achieve the lowest unit energy consumption in the industry for each of our products.
4. Promote resource recycling and work towards the reduction and proper management of waste materials.

• Promote material recycling and thermal recycling of resources.
• Work towards the paperless office.
5. Promote process safety, disaster prevention, and occupational health and safety.

• Aim for zero accidents and disasters based on principles of safety self-management and self-responsibility.
• Secure comfortable work environment and protect people’s safety and health.
6. Ensure strict product safety standards.

• Offer environmentally-oriented products that can be safely used.
• Provide clear information on how to use the product and what care to take.
7. Deepen trusting relationships with the society.

• Publicly disclose information on Company’s activities concerning environmental protection, process safety,•

occupational health and safety, and chemical product safety.
Actively pursue dialogue with local communities.

Environmental Goals• Achieve a 15% reduction in unit energy consumption from 1990 levels by 2005.
• Raise the effective waste utilization rate to 92% by 2005.
Responsible Care: Responsible Care (RC) is a self-management activity by a company that either manufactures or handles chemical substances, to implement
and improve measures for protecting the “Environment, Safety, and Health” of society and staff throughout the chemical substance handling process—frominception in the research and development through manufacture, distribution, and use, to final consumption and disposal. These activities also includes public
disclosure of company performance and social dialogue. Born in Canada in 1985, Responsible Care has spread to 47 countries. The Japan Responsible CareCouncil (JRCC) was established in 1995 within the Japan Chemical Industry Association and has 111 members registered as of March 2004.

!

 Material Flow Balance in Our Production Activities
We accurately determine environmental loads from the input and output balance in our overall production
activities, and come up with measures to reduce the loads for respective categories.

Carbon dioxide(CO2)(unit: 1,000 tons)

Raw materials
Fuels

7,510
Waste materials(incinerated/landfill) 20

1,890

Production
Process(51,900,000GJ)

Waste materials
By-products

6,860

Environmentalload materials

13

1,460
Industrial
wastewater

19,80047,100Water* Most of the energy required for production
processes is supplied from our own power
generation unit.
(All numbers shown are for Tokuyama Corp.
alone.)

Steam, Cooling water, andwaste water from households
Products
7,250

Chemicalproducts• Caustic soda
• Soda ash• Vinyl chloride• Microporous films

Soda ashSpecialty
products

Solvents for semiconductor
base materials• Polycrystalline silicon• Aluminum nitride• Plastic lens materials• Solvents for semiconductor
base materials

Caustic soda electrolytic cells

Cement, Building
materials and Others• Cement• Cement type stabilizer• Plastic window sashes• Construction andVinyl chloride monomer plant

housing materials

Polycrystalline silicon
Plastic window sashes
Aluminum nitride
Photochromic lens materials

Cement (Nukui Dam)"

Environmental Management

Results of Fiscal 2003 Activities
Each factory has its own detailed target values to meet in reducing environmental loads. The headquarters and thebranch offices are also actively involved in pursuing energy conservation, sorted waste recovery and disposal, andgreen procurement.

■Our Commitment to the Environment■Results and Evaluation of Fiscal 2003 Performance

Promotion of Responsible Care Activities• We have implemented measures to reduce environmental loads,

Responsible Care calls for implementation of environmental
preservation, process safety, occupational health and safety, chemicaland product safety, distribution safety, and social dialogue. As amember of the Japan Responsible Care Council, we are actively
promoting Responsible Care activities.

such as SOx, NOx, and substances that concern PRTR, and carriedout recovery and recycling of solid materials in wastewater, waste
heat recovery, and thermal recycling of waste plastic materials.
• The effective utilization rate of waste materials has improved
thanks to our continual efforts to promote waste material recycling.
Our efforts also include a process of reducing waste material
disposal, which helped significantly reduce landfill disposal.
• We have achieved an improvement in the unit energy consumption
as we aggressively pursued energy conservation projects andthermal recycling in fiscal 2003.
• There was a marginal to no rise in COD, PRTR substances, anddust emissions.
• Among hazardous air pollutants, those controlled under selfmanagement have shown a slight decrease thanks to the voluntary
reduction measures that we implemented.
• We have taken measures to be compliant with the newrequirements (such as total volume control) of the revised Chemical
Substance Control Law* and Water Pollution Control Law.
• We have made particular efforts to save on electricity in air
conditioning and lighting, and promoted use of recycled paper aspart of our “Green Procurement”* campaign.

Our contribution to building a recycling-based society is active
within the cement business.

Environment-oriented Handling of Products throughout their
Life Cycles
Efforts are under way to aggressively pursue environmental load
reduction in product manufacturing, recycling of waste materials, andenergy conservation.

Fiscal 2003 RC Activities—Priority Issues and Solutions
Segment

Priority Issues

Solutions

Review by Senior Management• RC Administration Committee• Safety and Environmental Inspection• Environmental load reduction (e.g., SOx, NOx)
• Reduction in emission of PRTR substances andhazardous air pollutants• Improvement in unit energy consumption• Higher waste material effective utilization rateand lower landfill disposal amount• Promotion of Green Procurement campaign• Measures to comply with environment-related
laws• Reduction in emission of SOx andhazardous air pollutants• Thermal recycling of waste plastic
materials• More energy conservation• Waste material recycling• “Green Procurement” of office supplies
and lighting equipment• Implementation of Environmental
Management System

Process safety• Zero accidents and injuries• Distribution safety• Safety and Environmental assessment• Voluntary safety certification on highpressure gas facilities• Safety education and inspection of
distribution companies

Occupational
health and safety• Zero accidents and injuries• Implementation of Health and Safety
Management System

Chemical productsafety• Ensured product safety• Product assessment• Improvement of MSDS
• Participation in the HPV program

Trusting
relationships withlocal communities• Participation in community activities• Co-existence with local communities• Participation in community’s volunteer
activities• Hosting dialogue meetings with local
communities• Factory tours for community members

Management

Environmental
preservation• Environmental load
reduction• Energy
conservation• Recycling

Promotion of RC
program to groupcompanies• Dissemination of RC activities• Safety and environmental inspection• Acquisition of ISO certification• Sharing of RC-related information

Fiscal 2003 Environmental Management Activities (Tokuyama alone)
Unit Target

FY
2002

FY
2003

Yearover
-Year

SOx

tons/
year

2,010

1,880

–130

NOx

tons/
year

10,40010,900+500

Soot and
Dust

tons/
year

235

254

+19

Water

COD*

tons/
year

134

135

+1

Energyconservation

Unit energy
consumption
index**(compared to
1990)

%

–15
(FY 2005)

–13.4

–16.7

–3.3

Waste
material
Recycling effective
utilization
rate

%

92
(FY 2005)

93.9

94.8

+0.9

PRTR

tons/
year

90

98

+8

tons/
Hazardous air pollutants year

53

49

–4

Segment

Pollution control

Contribution to a Recycling-based Society

Reduced waste Global environment
materials
conservation

We are adapting ourselves to various standards so that our activities
can be regulated. We have implemented and are operating across thecompany to ISO 9001, ISO 14001, using a Safety and HealthManagement System. We are also recommending our groupcompanies and subcontractors to introduce the same.

PRTR*

Implementation of Management System

Items

Air

* Total of Tokuyama and Kashima factories** Recalculated retrospectively to 1990 based on the Energy Conservation Law
enforcement regulations (e.g., revised coefficients) of 2003.

* The Chemical Substance Control Law is a law governing inspection of chemical substances and control of manufacturing such substances. It identifies toxic effects on human health ofchemical substances and controls the manufacture, importation, and use of chemical substances that are liable to cause damage to human health via environmental contact.
* Green Procurement policy refers to such procurement efforts that not only emphasize price, quality, and design, but prioritize environment-friendly products.

05 

Environmental Accounting
Aiming to secure effective environmental investment, we have adopted an Environmental Accounting system since
fiscal 2000, enabling us to clearly assimilate and analyze investments and expenditures related with environmental
conservation.
In fiscal 2003, the amount of investments remained roughly level
while expenditures slightly increased on a year-on-year basis. Our
effort to efficiently utilize waste materials helped improve
economic benefits.

Trends of Accumulated Environmental Investments(cumulative since FY 1990)
250(JPY 100 million)

228
218

■Environmental Conservation Costs

208

Antipollution and global environmental conservation-related
investments shared over 40% of total environmental investments.
Major environmental items in fiscal 2003 included installationof the waste plastic material combustion facilities in our cement
factory, and replacement of the electrostatic precipitators in
cement production facilities and our own power plant.

197

200

178

150

■Economic Benefits
Economic benefits are evaluated based only on actual revenue
figures, where any projected benefits are excluded, in areas ofenergy conservation, sales of relevant materials, and reutilizationof waste materials, which helps minimize processing for disposal
and reduce consumption of raw materials and fuel. In fiscal 2003,
we saw an increase of nearly 240 million yen in revenue over theprevious year (calculated to our standards), thanks to the economic
benefits generated primarily by boosted waste material recycling
and reutilization.

100

50

0

99

00

01

02

03
(Fiscal year)

Environmental Conservation Costs
Major
Classification Expenditure
Items
Pollution
prevention
Factory site
costs

Major Activities
Installation/Renewal of drainage water
treatment system, waste gas treatment
system, electrostatic precipitator, etc.

GlobalInstallation of energy conservation
environment
facilities
conservation
Resource
recycling

Distilling column revamp, installation of
product waste recovery system and storage
facility for sorted recycling materials

Upstream/downstream
costs

Economic Benefits
AmountTotal
Invested Expenditure(JPY million) (JPY million)
426
442

507

89

1,143
1

Installation of analysis system forenvironmental measurements

48

252

Research and development Environment-related technologicaldevelopment
costs

0

218

Costs of social activities

Factory greening, preparation of
RC reports

6

35

Costs of environmental
damageDues, Disused mine sites
administration

0

206

1,011

5,848

Total

Material
Economic
Benefits
Benefits(1,000 tons) (JPY million)

Remarks

3, 4860

Costs of management
activities

Item* Costs were compiled according to “Environmental Accounting Guideline—2002” of the Ministry of
the Environment.
* All company factories are covered.

Benefits from energy
conservation—

204

Benefits from lower electricity
and steam consumptions

Revenues fromsalable materials

96

116

Revenues from selling metal
scraps, waste oils, waste
acids and alkalis

Benefits from lower
waste materials
processing costs

262

682

Processing costs reduced
by reutilization of wastematerials

Benefits from lower
raw material and fuelconsumption realized
by waste reutilization

265

486

Raw materials and fuels costs
reduced by reutilization ofwaste materials

Total

1,488

06

Environmental Management

RC Promotion System and Management Systems Operation
We have established an internal system that enables Planning, Implementation and Operation, Performance
Assessment and Corrective Actions to be carried out in an appropriate and effective manner. Our efforts continue inpromoting swift and effective environmental measures and pursuing constant improvement.

■RC Promotion System■Operation of Management Systems

Our RC Administration Committee, which draws up the highest
level policies on our RC activities, is chaired by the president andcomprises corporate management members. The committee
discusses and approves company-wide RC policies and otherenvironment, safety, and quality-related policies. Under thiscommittee are various other subcommittees: the Environmental
Measures Committee, the Safety Measures Committee, the Product
Safety and Quality Assurance Committee, and the Product
Assessment Committee. These subcommittees are responsible fordiscussing specific activity plans in areas of environmental
management, safety management, and quality management, as
well as product safety assessment. Each subcommittee is chairedby a corporate director responsible for the relevant company-wideissues. Heads of appropriate sections are assigned as subcommittee
members.

ISO 14001 Environmental Management System■ Management System for Environment
Activity Assessment

The Company prepares a mid-term (3 years) environmental planeach year. To implement the plan, we set ourselves yearly policies
and goals, based on which each segment prepares specific plans for
implementation. The activities undertaken are assessed at the fiscal
year end and the results reflected in plan for the following year.

RC Promotion System

Both our Tokuyama and Kashima factories have acquired ISO
14001 certification, one of the main international standards and on
which we base our Environmental Management System.
In line with company-wide environmental policy, each factory
sets itself an environmental policy and the specific goals to beachieved in areas covering lowering environmental loads, energy
conservation, reducing waste material disposal, and promoting
resource recycling.
At the company headquarters, branch offices, and researchlaboratories, activities are under way based on their respective
policies and goals in the areas of energy conservation, reducing
waste material disposal, and resource recycling.
ISO 14001
ISO 14001 is one of the major international standards developed by theInternational Organization for Standardization (ISO), and provides therequirements for Environmental Management Systems. ISO 14001
certification is awarded to an organization that, based on the environmental
management system implemented according to a systematized process,operates its business in an environment-oriented manner and achieves
continual improvements through corrective actions, as necessary.

ISO 9001 Quality Management System
We have also acquired ISO 9001 certification (Quality

Management System for Environmental Activity
Assessment

RC Administration
Committee

Product Assessment
Committee (Labeling
Assessment Subcommittee)
Safety and Environmental
Assessment
Subcommittee

RC Research Laboratory(Support Organization)
Safety of chemical substances arechecked and their environmental
impacts are assessed using
simulations. Environmental
measurements, work environment
measurements, and ultra-trace
analyses of controlled substancesand chemical pollutants are also
carried out.

%Decision-making Function
Environmental
Measures Committee
Safety Measures
Committee
Product Safety andQuality AssuranceCommittee

Responsible Care & Eco
Management Dept.
(Secretariat)
Promotes RC activities throughout
the Company and its groupcompanies covering areas of theenvironment, safety, and quality.

Reflected in next year’s goals and plans

Assessment Function

RC Activity Goals

Environmental Load
Reduction Goals
Mid-term Environmental
Plan

Environmental
Management Plan

Environmental
Management Activities

ISO 14001 Environmental
Management System

Safety and Environment
Assessment System
RC Inspection and Auditing
SystemAssessment of
Activities

Environmental Accounting

Environmental Performance

Management System) for our major products. In fiscal 2003, ourSales and Development forces also participated in the Quality
Management System, which has resulted in even greater customer
satisfaction.
ISO 9001
ISO 9001 is one of the major international standards developed by theInternational Organization for Standardization (ISO), and provides therequirements for Quality Management Systems. It enables a company toestablish dependable quality management systems within its organizations andthereby further address customer satisfaction.

Health and Safety Management System
Based on the “JCIA—New Occupational Health and Safety
Guidelines” of Japan Chemical Industry Association, we have
implemented a Safety and Health Management System within our
respective factories and commenced operation of these in fiscal
2003.

 

■Inspection and Auditing System
Our Inspection and Auditing System is in place to help us verify
that activities undertaken at each factory are in line with companywide policies.

Safety and Environmental Inspection
We apply this inspection on a yearly basis to check theappropriateness of our accident/disaster preventive measures andmanagement quality concerning environmental conservation. The
inspection team is headed by the corporate director chairing theEnvironmental and Safety Measures Committee, and conducts
inspections at the respective factories, distribution sections, and thehealth management center.
A report is compiled from the inspection results anddistributed to all those concerned. The results are also reported tothe company president.

Health and Safety Management System
In the area of occupational health and safety, this system requires the company
to list dangerous/hazardous tasks, make risk assessments, and provide
appropriate measures to be adopted for such tasks in the order of the highest
risk first, thereby lowering the overall risk level. Performance is continually andsystematically improved as the above activity proceeds in a cycle of “Planning—Action—Assessment—Corrective Action.” The “JCIA—New Occupational
Health and Safety Guidelines” are prepared for chemical companies, based on
the relevant guidelines issued by the Ministry of Health, Labor and Welfare, as
well as International Standard OHSAS 18001.

■Assessment Systems

Safety and Environmental Inspection (Left: Tokuyama Factory; Right: PCB waste
in a waste control area)

Internal Auditing

With the necessary assessment systems in place, we are working
towards lowering environment- and safety-related risk levels.
The Safety and Environmental Assessment Subcommittee and
the Product Assessment Committee are at work making strict
assessments on environmental, safety, and product safety
management performance.

Our internal auditing is carried out periodically in accordance with
ISO 9001, ISO 14001, and Safety and Health Management Systemprocedures. Progress status of the planned actions and the systems
operational status are audited, and areas of nonconformity
identified for corrective actions.

Safety and Environmental Assessment

We are audited by registrars for certification of ISO 9001 and ISO
14001. In fiscal 2003, we underwent the RC verification process,which is provided by the Japan
Responsible Care Council withthe aim of further strengthening
our Responsible Care activities
and making such activities
more transparent to the public.
We were pleased to achieve a ISO 9001 auditing (Cement Production Dept.)
high score. (See page 26 fordetails.)

Before any facility is newly installed, expanded or refurbished, we
require a safety and environmental assessment to be carried out.
The assessment is designed to check the design safety ofequipment, the safety of the materials being handled, compliancewith laws and regulations, and impacts on the environment. This
helps us in our effort to make our facilities safe and easy tooperate, easy to maintain, and accident-free. The assessments
apply to three stages: Basic Plan Assessment, Design Assessment,
and Pre-Operational Assessment. Through such stages,
assessments are made to ensure that facilities are of safe andenvironment-oriented design, built to the design requirements, andready for operation.

Product Assessment and Labeling Assessment
To ensure product safety, our Product Assessment process is ineffect at each stage, from research and development through toshipment of our products. This risk assessment covers a variety of
aspects including safety of the chemical substances involved,
environmental impacts, human health effects, compliance withlaws and regulations, etc.
Our Labeling Assessment helps us ensure that the labels that
we carry on our products contain no defects in their instructions
and/or warnings and that they contain sufficient and easy-tounderstand information.

Third Party Auditing■Promotion of Green Procurement

We have Green Procurement Standards in place, based on which
we are actively promoting a Green Procurement campaign inpurchasing copying paper and other office supplies.

■Education and Training
Employee education and training on the Responsible Care
activities are provided on a hierarchical group basis.
For environmental management, safety management,
occupational health and safety, and quality management, “On-theJob-Training” is provided so that employees can learn throughactual management activities.

&Environmental Performance

Reducing and Recycling Waste Materials
1. Our Cement Factory Recycles Waste from Outside
We not only recycle our own internal waste and by-products but accept and recycle a large volume of waste andby-products from other industries and local municipalities.
contain common components such as limestone, clay, and silica.
The internal temperatures of the cement kiln* reach as high as
1000–1800 °C, high enough to allow complete combustion of
any combustible materials. Another feature is that the ash
remaining after combustion are still used as a constituents of
cement, thereby leaving no residues such as incineration ash.
What this means in practical terms is that the all waste isefficiently recycled as thermal energy or raw materials. Sucheffective utilization of waste and by-products in our cement
factory provides significant support in shaping a recycling-■Supporting a Recycling-Based Society
Our cement factory, which commenced operations in 1938, wasdesigned to be capable of effectively utilizing the by-products
from our own soda ash plant and coal cinders from our own
power plant as part of the raw materials for cement. Today wealso accept and recycle a large volume of waste and by-products
from outside.
Many of the waste and by-products can be used as raw
materials and fuels in the cement manufacturing process as they

Flow Diagram of the Waste and By-products Recycling Process in Cement Manufacturing

Energy fuels

Raw Materials
Raw Material Process

Thermal recycle(Waste)Natural Resources

Natural resources
Drying and Crushing

Limestone

Mixing and Storage Silos

SilicaRecycled materials(waste and by-products)
Coal ash
Dross
Slag
Sludge1.06 million
tons

Sintering Process

Coal

Preheating
Precalciner

Waste plastic crusher

80 K
tons

Kiln

Waste plastics
Waste tires
Meat-and-bone meal
Waste oils

Clinker Cooler

Finishing Process
Finishing Mill
Crushed waste plastics

Cement Silos

Cement silos

Shipment* A cement kiln is a rotating furnace used to sinter the raw materials in the cement factory.

'

Sludge processor
Rotary kiln downstreamof preheater

Clinker—intermediate
product

Slag
Gypsum670 K
tons



based society as it helps reduce consumption of depleting
natural resources and carbon dioxide (CO2) emissions, andprolongs the functional life of final disposal sites.
The waste materials and by-products reutilized in ourcement factory in fiscal 2003 amounted to 1,810,000 tons,
including 350,000 tons of our waste. Of this, 1,730,000 tons
were used as the raw material substitutes (Material Recycling*)
and the remaining 80,000 tons were used as fuel substitutes(Thermal Recycling*). The unit waste consumption per ton of
cement increased to 401 kg from 381 kg of the previous year,
which is a 5.2% increase.

 

2002. The factory handled 680 tons of meat-and-bone meal infiscal 2003.

Recycling Municipal Waste Incineration Ash (Yamaguchi
Eco-Tech Co., Ltd.)
Yamaguchi Eco-Tech Co. (a joint venture company between
Tokuyama and Ube Industries Ltd.) handles the recycling ofmunicipal garbage incineration ash produced in Yamaguchi
Prefecture. The incineration ash is processed for dioxin removal
and water wash desalting, and then used as cement raw material.
28,000 tons of incineration ash were processed in fiscal 2003.

■Recycling a Variety of Waste Materials
Waste Plastics

Volume of Material Recycling at Our Cement Factory

We started burning waste plastics in the cement kiln for thermal
recycling in 1999, and expanded our annual recycling capacity
to 85,000 tons by installing waste plastic crushing units in fiscal
2001 and 2003. A total of 62,000 tons of waste plastics wererecycled in fiscal 2003.

2,000(1,000 tons/year)

1,743

1, 813

1,772
1, 6191,7 3 31,500

1, 0 71
1,000

Waste Tires
We have facilities to feed chipped waste tires into the cement
kiln, and recycled 3,000 tons of waste tires in fiscal 2003.

500

Coal Ash/Sludge
We accepted a total 1,060,000 tons of coal ash from thermal
power plants and sewage sludge from municipal seweragesystems, and used them as the clay substitutes in fiscal 2003.
Meat-and-Bone Meal
Despite the current complete ban on meat-and-bone meal use as
livestock feed and fertilizer, they are being produced every day,and their disposal has become an issue. Meat-and-bone meal
combustion in the cement factory is understood to be safe andallows a large volume to be handled. Our cement factory has
been accredited by the Ministry of the Environment and has
been engaged in the meat-and-bone meal disposal since May

0

90

99

00

01

02

03
(Fiscal year)

Volume of Thermal Recycling at Our Cement Factory
80(1,000 tons/year)

80

60

51
40

55

35
27

20

Resource & Energy Recycling Systems
at Tokuyama Factory

40Energy conversion

Fuels
Coals
Heavy fuel oils

Energy supply
to factory
Electric
power
Steam

Power station

90

99

00

03

Unit Waste/By-products Consumption(kg/ton of cement)

Coal ashes

02(Fiscal year)

400
Flue de-SOx
Gypsum

01

300

378

385

394

401
381

263

Resource
recycling
200

Waste plastics
Waste tires

Waste plastics recycling

Cement factory
Waste heat boiler

Waste heat recovery

100

0

90

99

00

01

02

03
(Fiscal year)* Material Recycling refers to the reutilization of waste and by-products as raw material substitutes. We reutilize slag, coal ash, sludge, incineration ash, etc., produced both inside and outside
our company.

* Thermal Recycling refers to the reutilization of waste as fuel substitutes. We reutilize waste plastics, waste tires, etc., from both inside and outside our company.

Environmental Performance

Reducing and Recycling Waste Materials
2. Company-Wide Promotion of Recycling and Waste Management
We are working to reduce waste materials at all of our factories, and also promoting effective reutilization of thewaste that is produced. We achieved a 94% effective reutilization rate in fiscal 2003, which already exceeds thetarget of 92% set for fiscal 2005.

■Waste Management

Effective Utilization Rate for Waste and Disposal to Landfill
100

50

95

36.3

30

90.9

Both Tokuyama and our group companies appropriately store
PCB containing articles such as utility transformers, capacitors,
and the like, in accordance with the requirements of the “Law
Concerning Special Measures against PolychlorinatedBiphenyls Waste.”

85

20

6.5

5.2

76.9
90

Zero emission rate 99.8%

Outsiderecycling

99

00

01

02

03

75

*All numbers refer to fiscal 2003.

Disposal to landfill(inside company)
300 tons

Disposal to landfill(outside company)
300 tons
Incineration(outside company)
700 tons

Incineration(inside company)
19,000 tons

0.6

5.1%

0.2%

12
3.1%

0.6

Inside company ← → Outside company

Effective utilization rate
94.8%

Landfills

1.2(Fiscal year)

Breakdown Graph of Industrial Waste Handlingin Fiscal 2003

19.7

80

5.5

0

Waste Materials Flow

Incineration

90

91.2

89.2

10

■PCB* Waste Management

94.8

93.9

Effective utilization rate (%)

40
Landfills (1,000 tons)

Waste materials generated in fiscal 2003 in our facilities
amounted to 384,000 tons. Our efforts to aggressively pursue
the means to reutilize most of such waste as raw material
substitutes in our cement factory and additional recycling efforts
in and out of our company enabled us to raise the effective
reutilization rate to 94.8%.
Our efforts in the field of minimizing landfill waste andmaximizing reutilization of such waste allowed us to achieve a
99.8% “zero-emission” rate for landfill waste.

Waste
discharged
outside13,000 tons

Waste
generated
384,000 tons

Total Waste
Amount384,000 tons

Recycled internally352,000 tons

Recycled outside
12,000 tons

Inside recycling(Raw materials and fuels)352
91.7 %

Effective utilization rate (%) =Recycled Volume (inside & outside)
Total Waste Generated

×100(Unit: 1,000 tons)

Zero emission rate (%) = 1 –Disposal to Landfill (inside & outside)
Total Waste Generated

×100* PCB is an abbreviation for Polychlorinated Biphenyl. This is a chlorinated organic compound and produces dioxins when burnt at low temperatures. It is chemically stable, heat-resistant,chemical-resistant, and provides excellent electrical characteristics such as high insulation performance. It had many applications in electrical equipment, such as utility transformers,
capacitors, etc., until 1972 when its production and use were banned due to the fact that it is harmful to humans. The law requires that transformers, capacitors, and the like, that are alreadyin the market be brought to safe storage at appropriate business units.



 

Energy Conservation (Global Warming Prevention Measures)
We recognize it is one of our corporate social responsibilities to pursue reductions in greenhouse gas emissions to
help prevent global warming. We have set ourselves high targets and our efforts continue.
Our business consumes a large amount of energy in the
manufacturing process of our major products, such as caustic
soda, cement, etc. Carbon dioxide, which is one such greenhousegases, is produced by the combustion of fossil fuels. This makes
us recognize the importance of pursuing global warming
prevention measures, and in fact, we are striving to reduce CO2
emissions through various energy conservation efforts.
The Tokuyama Factory, which is our main factory, set a
goal of achieving a 15% reduction in unit energy consumption
over the 1990 level by 2005. Energy conservation efforts infiscal 2003 included promotion of waste plastic thermal
recycling at the cement factory, and a reduction of 16.7%,
which well exceeds the target set for 2005, was successfully
achieved. We are now working towards our next goal of 17.5%
reduction over the 1990 level by 2010.
To ensure the achievement of this next goal, an energy
conservation project was developed among Tokuyama’s four
manufacturing departments in fiscal 2003 with the aid of outside
consultants. The project has yielded over 100 proposals that
could allow an estimated yearly reduction of 2,100,000 GJ inenergy consumption. These proposals are being reflected in all
our manufacturing activities. All the above efforts are helping
us restrict CO2 emissions, despite a growth in production.
We also have completed the conversion of refrigerants in
our refrigeration equipment from Freon to safe substitutes.

Energy Consumption
Tokuyama alone(1,000 GJ/year)

Group companies

60,00050,000

2,000

2,200

2,200

51,90040,00030,00038,10046,20048,20049,40050,000

90

99

00

01

02

20,00010,000
0

03(Fiscal year)

CO2 Emissions
Fuel sourced(1,000 tons)

Raw material sourcedGroup companies

7,000
6,000
5,000

120

130

130

1,960

2,180

2,340

2,180

2,150

2,220

3,350

4,010

4,250

4,360

4,400

4,640

90

99

00

01

02

4,000
3,000
2,000
1,000
0
03
(Fiscal year)* Group companies are included beginning from fiscal 2001.
* The numbers in the above energy consumption and CO2 emission charts reflect corrections maderetroactively to fiscal 1990 in accordance with the revised Energy Conservation Law enforcement
regulations and the Guidelines for Estimating Greenhouse Gas Emissions (draft) released by the
Ministry of the Environment.

Unit Energy Consumption Index (Tokuyama Factory)(Reduction rate %)

0

0
Ҁ2
Ҁ4
Ҁ6

Ҁ6.2

Ҁ8
Ҁ10

Ҁ9.8

Ҁ12

Ҁ12.6

Ҁ14

Ҁ12.1

Ҁ16
Interim debriefing session on Energy Conservation Projects

Ҁ13.4

Ҁ15

Ҁ16.7

Ҁ18
90

98

99

00

01

02

03

05 (Target)(Fiscal year)Environmental Performance

Reduction of Air and Water Pollutants
We have long been measuring the environmental loads on air and water caused by emissions and waste from ourfacilities, especially the cement factory and the private power plants, and are taking a variety of measures to reducesuch loads.

■SOx Emissions
SOx* (sulfur oxides) are emitted from such
facilities as boilers, sintering furnaces, drying
furnaces, etc., where heavy fuel oil or coal is
combusted. In our case, most SOx emissions
are from power plant boilers. To reduce SOx
emissions, we have installed flue gas
desulfurization equipment in each boiler
system. Further, we utilize the calcium
sulfate created in the desulfurization process
as a cement raw material substitute.

SOx Emissions
3,500(Tons)

2,890

3,000
2,500

2,260

2,000

1,850

1,830

99

00

2,010

1,880

1,500
1,000
500
0

90

01

02

03
(Fiscal year)■NOx Emissions
NOx* (nitrogen oxides) are also emitted fromfacilities such as boilers, sintering furnaces,
drying furnaces, etc., where heavy fuel oil orcoal is combusted. Most NOx emissions fromour facilities are from power plant boilers andcement sintering furnaces. We have alreadyinstalled denitration equipment and low NOx
burners.

NOx Emissions(Tons)

12,00010,80010,00010,000

9,300

9,700

10,40010,900

8,000
6,000
4,000
2,000
0

90

99

00

01

02

03
(Fiscal year)■Soot and Dust Emissions
Soot and dust* are emitted in the combustion
process of fuel and other materials in the
power plant boilers and cement sintering
furnaces. We have installed dust collecting
facilities to reduce soot and dust emissions.

Soot and Dust Emissions
350
300(Tons)

275

254

250

235
214
187

200

179

150
100
50
0

90

99

00

01

02

03
(Fiscal year)* SOx refer to sulfur oxides, which are produced primarily by the combustion of fossil fuels such as coal and oil. They are known to cause respiratory disorders and to be a causative agent ofacid rain.

!

* NOx refer to nitrogen oxides, which are included in the exhaust gases from automobiles and factories. They are a contributor to photochemical smog and acid rain.
* Soot and dust refer to fine particles of soot and dust contained in the emissions from smoke stacks.



■Factory Wastewater
Our Tokuyama Factory releases some
20 million tons of factory wastewater eachyear into public waters. We have a stringent
monitoring system to keep the hydrogen-ion
concentration (pH) and suspended solids
within their respective limits. The wastewaterfrom our Kashima Factory is treated at theterminal treatment facilities.

Factory Wastewater Release
25.0(Million tons)

20.0

We have a system in place to prevent waterpollution. Activated sludge process equipment
is in operation downstream of the process
where organic constituents are involved, toreduce COD* (Chemical Oxygen Demand).

21.1

18.8

17.7

17.3

99

00

19.8

14.3

15.0
10.0
5.0
0

■COD Release

 

90

01

02

03
(Fiscal year)

COD Release(Tons)

200

180
142

150

129

128

00

01

135

134

100

■ Hazardous Air Pollutants
ReleaseOut of the 13 substances left to corporate selfmanagement under the Air Pollution Control
Law, the following four substances areincluded in our production: vinyl chloride,
chloroform, 1,2-dichloroethane, anddichloromethane. We have set ourselves avoluntary program to achieve the necessary
reductions.

50
0

90

99

02

Hazardous Air Pollutants Release120

Vinyl chloride(Tons)

1,2-dichloroethane

103

Chloroform

100

Dichloromethane(Methylene chloride)

21
80■ Release of Substances

Governed by the PRTR Law

We compile reports on all PRTR substancesand file them as necessary in accordance with
the PRTR* Law, while at the same time, we
pursue reductions in releasing such
substances. We had 24 substances in fiscal
2003 on which we were required to makereports. The total release of those substances
amounted to 98 tons.

■Dioxin Measures
Waste incinerators and effluent incinerators
are subject to the Law Concerning Special
Measures against Dioxins. We measureconcentration of dioxin emissions and filereports as required by this Law.

03
(Fiscal year)

65
60

54

53

47
26

53

49

13

12

10

15

18

22

7

9

10

10

8

15

16

14

11

11

11

40
7

17

20
28
0

95

99

00

01

19

02

03
(Fiscal year)

Release of Substances Governed by PRTR Law
300

Tokuyama alone(Tons)

Group companies

247

250

187

200

146

150

120
95

100

90

88

98

110

50
0

98

99

00

01

* Group companies are included beginning from fiscal 2001.

02

03(Fiscal year)* COD is the abbreviation for Chemical Oxygen Demand. It shows the amount of oxygen required to oxidize organic matter in the water and indicates the level of water contamination.
* PRTR, Pollutant Releases and Transfer Register, is a system for the compilation and publication of data concerning harmful chemical substances with respect to their sources, the amount of
their environmental emissions, and the amount released from factory in waste materials.

"Environmental Performance

Development of Environmentally-Friendly Products
and Environmental Technologies
We continue to pursue the development of environmentally-friendly products and technologies for our products
and waste recycling as we believe it is our corporate responsibility to focus on environmental care.

■ Amorphous Precipitated Silica“TOKUSIL USR/USG”

Contributes to better performance of energy-saving
tires as a result of improved mileage and the minimal
amount of dust generated
Amorphous precipitated silica “TOKUSIL” has long been used
in a variety of applications, such as the filling and reinforcing
materials for various types of rubbers, newspaper filler materials,
absorbent carriers, etc. Silica has been used for some time now in“energy-saving” tires which are characterized by improved
mileage performance based on reduced rolling resistance (RR)
between the tire and the road surface. These tires also help
improve stability on wet roads.
Based on our proprietary technology, we have developed“TOKUSIL USR,” which has excellent dispersion properties
when used in tire rubbers. The use of this high-dispersion silica
can further reduce rolling resistance by 20% or more, which inturn can raise mileage performance by over 5%.
We also have developed environment-friendly “TOKUSIL
USG,” which helps minimize dust generation.

■“SD-series” Photo-Developing Solutions
Efforts to establish waste solutions recovery andrecycling operations
We manufacture and sell developing solutions—TMAH “SDseries”—which are used in the photolithography process forsemiconductors and LCD panels. To address rising concerns
about environmental conservation and social demand for
promoting water contamination preventive measures andeffective resource utilization, we are aiming to commercialize
our waste solutions recovery and recycling operations.
We have also started waste recovery and recycling operations
for our “TOKUSOH IPA SE,” which is a solvent for
semiconductor base materials.

involves no emissions. Efforts are under way in many countries
to promote the installation of solar cells.
We manufacture and sell high-purity polycrystalline silicon
for semiconductors used for IC in electronic parts. The
polycrystalline silicon is also used in solar cells, another meansof supporting energy conservation.

■Soil Remediation Technology (T & T Corporation)
Turning harmful substances contained in soil
into harmless through proprietary technology
T & T Corporation, one of our group companies, specializes inundertaking civil engineering work, foundation improvement
work, and soil remediation work. In collaboration with our
Recycling and Environmental Business Department, they offer
solutions to soil contamination problems by combining their civilengineering and soil remediation technologies. Once soil iscontaminated, the problem may last for a long time. For thisreason, soil remediation is a critical technology.
The “In-situ Remediation Process” is a process that
decontaminates soil through agitated injection of several
reactants which will chemically decompose harmful chemicals or
make them insoluble. The process can efficiently rendercontaminated soil (e.g., containing volatile organic compounds)
harmless to a depth of 20 meters, and also features highly
accurate mixing and agitation of the chemical compounds during
injection. T & T’s project experience includes successful in-situ
remediation of 500,000 m3 of soils in Saitama City in 2003.
The company also offers excavation and recycling services.
Contaminated soils are excavated and transported by boats to our
Tokuyama Factory where they are reutilized as cement raw
material substitutes.

■High-Purity Polycrystalline Silicon
Utilized in solar cells—another way to promoteenergy conservation
The solar energy from sunlight falling upon the earth just for anhour is reportedly as much as the total energy consumed in one
year by all human beings. This energy, if utilized through solar
cells, can result in significant energy saving. Solar cells
manufactured in 2003 worldwide were worth 744 MW, of whichsome 660 MW come from silicon solar cells. Electricity
generated by solar cells is called “Clean Energy” as the process#In-situ remediation work in progress in Saitama City

■“Shanon” Plastic Window Sashes (Shanon Co., Ltd.)
High-performance windows contribute tohome energy conservation.
Shanon Co., Ltd., one of our group companies, manufactures andsells “Shanon” plastic window sashes, which provide excellent
air tightness, heat and sound insulation, and prevent moisturecondensation.
With the Kyoto Protocol on preventing global warming in
effect, our country is obliged to achieve a 6% reduction ofgreenhouse gas emissions over average 1990 levels between
2008 and 2012. Although reductions are being steadily achievedin the industrial sectors, household emissions are on the rise andneed to be addressed through effective measures. In this regard,
plastic window sashes are receiving attention due to their ability
to conserve energy. A simulation run by the “Plastic Window
Sash Promotional Committee” indicates a significant
improvement in insulation efficiency or some 40% reduction in
CO2 emissions can be achieved per house if single-glazed
aluminum window sashes are all replaced with double-glazed

Cross-section of a plastic window frame
Window frame
Window sash frame
Airtight materials
Glass holding beading

Beading plastic window sashes fitted with low emission glass. Shanon’splastic window sashes are drawing attention as a promisingmaterial for use in the prevention of global warming.

Promoting Recycling
The plastic window sashes are assembled after their components
are extrusion-formed and then cut to required dimensions in theassembly shop. Shanon has an effective material recycling
system in place, in which the plastic remnants from the assembly
shop and scrap plastic pieces from the extrusion shop are crushed
and recycled as extrusion raw materials.
The volume of waste plastic from scrapped houses is
expected to significantly increase after 2007. Shanon plans to
accept waste windows from outside the company and recycle theplastic materials after separation from the window assemblies.

■ Ion-Exchange Membranes “NEOSEPTA”(ASTOM Co., Ltd.)High performance separation techniques contributeto preventing environmental pollution.
Astom Co., Ltd., one of our group companies, is working tocombat environmental problems through applying its highseparation techniques developed by a combination of its ionexchange membranes, “NEOSEPTA,” and its high-performance
dialyzers, “ACILYZER,” which incorporate the NEOSEPTA
membranes. These ion-exchange membranes selectively dialyze
positive and negative ions dissociated in solution. The separation
techniques have traditionally been used in salt production and theprocessing of foods, water, medicines, and effluent liquids. Now
to deal with environmental pollution prevention, the techniques
are used in wider applications, such as the separation andrecovery of acids and alkalis in effluent liquids, the processing ofwater discharged from terminal waste treatment facilities,
removal of nitrate-nitrogen from groundwater, etc. This
technology is now gathering worldwide attention as another“Clean Technology” that is contributing to preventing
environmental pollution.

Plastic window sash containing recycledmaterials: virgin materials (white) areused in visible sections and recycledmaterials (gray) in hidden sections

Ion-exchange
membranes“NEOSEPTA”

High-performance
Dialyzer “ACILYZER”“SHANON” plastic window sash

$Environmental Performance

Comprehensive Safety Management of Chemicals
We are working to ensure environmental preservation, and the safety and health of people, based on appropriate
information that we acquire and analyze by stringently monitoring chemical products throughout their entire life
cycle.

■ Data Acquisition and Analysis on the Safety
We assess the safety of chemical substances by acquiring andanalyzing safety-related data. Such data is used in preparing
safety information for our products, waste materials, etc.
Our activities in fiscal 2003 included an examination ofchemical substances in our products and waste materials to
identify any hazardous effects. This examination enabled us toreview handling procedures and provide appropriate
information to the people concerned.

We also run simulations of concentration profiles ofchemical substances to analyze their behavior in detail, as well as
the behavior of nonmeasurable substances.
Risk assessments are done based on a combination ofconcentration data and safety data, and the assessment results arereflected in enhancing our equipment safety measures andhandling procedures, and in educating the people involved inhandling products and waste. These efforts naturally help us
improve our product safety and provide accurate information to
our customers.

■ Risk Assessment and Management of■Assessment of Products and Labelingof Chemical Substances

Chemicals

We monitor concentrations of chemical substances in wastewaterand gas emissions as part of our comprehensive activities
directed toward preventing environmental contamination.

We appropriately assess the safety of both the chemical
products and equipment units that we manufacture, in stages
from research and development through commercialization. We
made 30 assessments of this kind in fiscal 2003.
We also carry out labeling assessments of our catalogues,
MSDSs,* and other technical documents. We carried out 475
assessments of this type in fiscal 2003. Labeling of our
products, prototypes and sample products are all assessed andany inappropriate labeling is corrected.

■ Provision of Information on Our Chemical
Products

We provide an MSDS for all our products and prototypes to ourcustomers and distribution agents.
Analyzing organics in wastewater by a liquid chromatograph mass spectrometer system

Assessment Flow Diagram for Ensuring Safety and Environmental Preservation

Assessment stages

Product assessment

Research commenced

Development group leaders(Primary assessment)

Development commenced

R&D department heads(Secondary assessment)

Commercialization under study

Product assessment committee(Tertiary assessment)

Safety and Environmental
assessment

Labeling assessment

Safety and Environmental Assessment
Subcommittee (Basic Plan)

Product equipment being designed

Safety and Environment Assessment
Subcommittee (Designing)

Pre-marketing (pre-operation)

Safety and Environment Assessment
Subcommittee (Pre-operation)

Post-operation

Report on actual conditions(Environmental)

Labeling Assessment
Subcommittee* MSDS is the abbreviation for Material Safety Data Sheet. It is a document that contains information such as the name of the chemical material, appropriate safety and emergency measuresrequired, etc., related to that material, and is intended to ensure safe handling by providing information about any hazards related with the specific material.

17

 

We have so far issued about 340 MSDSs for our products.
Of these, the MSDSs for top 15 items of our products, recording
high amounts of transportation, are made available on our Web
site (in Japanese only) so that they can be accessed for referenceat any time in the event of an incident in transportation.
We also have each driver carry a yellow card* that is
prepared with emergency instructions for use if an incident
occurs during transportation. The MSDSs and yellow cards on
our products and waste materials are also shown on our intranet
Web site so that this type of safety-related information can beshared.

■Safety Management of Waste Materials
Waste materials are handled in the same way as our products. We
develop the necessary MSDSs for waste materials and distributethem to waste handling contractors and distribution agents toensure safe handling and transportation of such waste materials.
Also each driver is made to carry a yellow card prepared for thewaste materials in case an incident occurs during transportation.
We have so far issued 65 MSDSs for waste materials.

■Participation in HPV Program

We actively participate in the HPV* program that is being
promoted through the framework of OECD (Organization for
Economic Co-operation and Development), and are proceedingwith our safety assessments of HPV chemicals.
We participate in HPV programs for 18 chemicals. Our

MSDSs for our major products are also available on our Web site(in Japanese only)

company is the leader of an international consortium for the
TMAH (Tetramethyl ammonium hydroxide) HPV, which
follows our previous commitment as leader of the Calcium
Chloride HPV. TMAH is a chemical that is used in the form ofa developing solution used in the photolithography process forsemiconductors and LCD panels, and its role is becoming evermore important. We are proceeding with our RC activities
through our safety assessments in the TMAH HPV Program.

Promoting Safety and Environmental Management in the Distribution Process● Providing Our Distribution Agents with Guidance and Education
on Safety Management
We regularly hold local safety meetings with our nation-wide
distribution agents to whom we consign product transportation
services. We also conduct distribution safety inspections to raise thesafety awareness of the people concerned. Within the premises of
our Tokuyama Factory, our safety specialists make continual
inspections and visit cargo carriers in their berths, providing safety
guidance as necessary.
We also have a range of emergency measures in place. These
include the requirement that each truck driver carries a yellow card
and appropriate emergency tools, enabling suitable and speedy
actions based on the emergency measures given on the card in casean incident occurs during land transportation. An emergency networkand related organization also form part of our safety procedures.
● Distribution Risk Assessment
We conduct risk assessments on the transportation of hazardous
materials. (Means of product transport, safety of trucking routes,
suitability of transport containers, emergency measures to be takenin the event of an accident, etc., are all examined at Transport Safety
Review Meetings). We provide training for dealing with accidents
during the transportation. We also make safety assessments on any
new distribution facilities that are planned to be built.

**● Crisis Management
To deal with potential crises in distribution, we review ouremergency response system criteria and ensure that disasterprevention equipment is always ready for use.
● Environmental Preservation Measures and Energy Conservation
As part of environmental preservation measures, we provide
thorough instructions to trucking companies with regard to meetingthe controlled exhaust emissions from diesel-powered vehicles. We
also encourage energy conservation efforts through the introductionof a mileage log management system.

Monthly factory premises safety patrols (Tokuyama Factory)

The “Yellow Card” is the common name of a card prepared for emergency use, which explains to the truck driver or his representative, fire crews, or police what to do in the event of an
accident involving chemicals or high pressure gases during transportation.
HPV is the abbreviation for High Production Volume, and refers to a program whereby worldwide chemical companies and related industries undertake continuous safety assessments andcompile data on those priority chemicals that are produced in quantities of more than 1,000 tons per year in at least two countries.

&Social Performance

Process Safety and Disaster Prevention/
Occupational Health and Safety
We are developing activities aimed at achieving zero accidents, based on the spirit of our basic safety posture that
“Safety is the foundation of all business activities, and is the first step toward living in harmony with society.”■Commitment to Safety and Disaster Prevention
Comprehensive Disaster Prevention Activities
We are well-equipped with disaster prevention materials andequipment, including chemical fire engines, high-elevation watercannon trucks, ambulances, oil barriers, etc. We also have organized aself-defense disaster prevention unit, which carries out annualcomprehensive, joint disaster prevention drills incorporating a variety
of mock simulations of accidents and disasters.

three key sites are all making efforts to continue their excellent safety
performance.
Our investment for process safety in fiscal 2003 amounted tosome 200 million yen and includes items of emergency equipment for
use in the event of a disaster, such as emergency power supply units,
weather monitoring systems, and so on.

■Commitment to Occupational Health and Safety

Safety Activities Aimed at Achieving Zero Accidents

Safety and Health Management System Now Operative

Our safety activities include workplace safety meetings, safety patrols,
hazard prediction activities, 5-S activities, hazard labeling, improvementof signs, verbal safety checks (voicing the name and pointing at the item
to be checked), safety education, etc. These activities are all based on
our commitment to “creating a workplace where nothing is overlooked”
in order to prevent any unsafe actions or conditions, and promoting theconcept of “think-about-safety” before starting an activity.

Each of our factories has implemented a Safety and Health Management
System and commenced its operation in fiscal 2003, in accordance with
the JCIA New Occupational Health and Safety Guidelines, issued by theJapan Chemical Industry Association. This system provides the means
to voluntarily and continually perform health and safety management by
repeating the PDCA (Plan-Do-Check-Act) cycle. It is intended to help
improve the occupational health and safety standards by minimizing thelatent risks of industrial accidents, creating pleasant work environments
and enhancing workers’ health. The JCIA New Occupational Health and
Safety Guidelines were prepared for chemical companies in accordancewith the guidelines of the Ministry of Health, Labor and Welfare, and
OHSAS 18001 included in the International Standards.

Acquisition of Voluntary Safety Certification based on
the High Pressure Gas Control Law
We are continuing our efforts to add more facilities to the list of
Voluntary Safety Certification that are subject to the High Pressure
Gas Control Law. We have been certified as an “Administrator of
Accredited Safety Inspections” for our IPA (Isopropyl Alcohol)
production facilities, and are working to extend the certification list.

Commitment to Voluntary Maintenance
We are committed to safe plant operations by promoting voluntary
maintenance activities in our operational management sector and by
reinforcing the specialized maintenance technologies in our facilities
management sector. These efforts have enabled us to steadily reduce
the number of sudden failures. Our cement factory is running a TPM*
program and has won the TPM Excellence Award.

Accident Severity Rates*● Total industries ● Chemical industry ● Tokuyama

0.25
0.2
0.15
0.1
0.05

Safety and Environmental Inspection

0

We conduct safety and environmental inspections throughout all our
factories to identify the status of Safety and Health Management. If theinspection identifies any incidents of nonconformance, these arepointed out and necessary guidance given for corrective actions.

(Fiscal year)* Accident Severity Rate refers to the number of work days lost in 1000 cumulative work hours,
and represents the severity of industrial accidents.

90

91

92

93

94

95

96

97

98

99

00

01

02

03

Rates of Lost Work Time Injuries*

Zero-Accidents Record Established

2.5

Tokuyama Factory has established a
Category II zero-accidents record(8.1 million hours for the chemicalindustry). Kashima Factory has had
zero accidents for 18 years since its
start-up. Tsukuba Research Laboratory
can also boast of the fact of zeroaccidents for the 14 years since
Established Category II zero-accidents
its establishment. The Company’srecord2.0● Total industries ● Chemical industry ● Tokuyama

1.5
1.0
0.5
0

90

91

92

93

94

95

96

97

98

99

00

01

02

03

(Fiscal year)* Rate of Lost Work Time Injuries refers to the number of workers away from work due to workplace
injuries in 1 million cumulative work hours, and represents the frequency of industrial accidents.

* TPM is an abbreviation for Total Productive Maintenance. It is intended for achieving zero-losses with the participation of all employees, in pursuit of maximized production efficiencies, byimplementing systems that prevent any losses due to accidents, defective products, equipment failures, etc.

'

 

THP-based Activity System
THP-based Health
Promotion Committee

Our expenditures for workplace environmental measures infiscal 2003 totaled 46 million yen as part of our efforts concerning
occupational health and safety.

Safety Education

Administration: Health Management Center

Factories

To promote safety awareness and knowledge among our company
employees and subcontractors, we are providing in-house workshop,
safety meetings, hazard prediction training, factory visitor
instructions, and so on.

Specialized Subcommittees for
Health Maintenance & Promotion

Publicity
Subcommittee• Mental Health Subcommittee• Education Subcommittee• Lifestyle Habits Subcommittee

Pleasant Work Environments
Aiming to create pleasant working conditions, we continue tomonitor the workplace environments where specified chemicals andorganic solutions are being handled, and continue to improve thework procedures and equipment involved. These efforts haveenabled us to maintain all of our worksites in Control Category I,*
as verified by our workplace environment inspections.

Health Promotion Based on THP (Total Health Promotion)
We have a regular health checkup system to ensure the health of all
our employees.
We have also organized a “THP-based Health Promotion
Committee” in line with the THP Guidelines recommended by the
Ministry of Health, Labor and Welfare, under which a variety ofhealth promotion programs are being conducted. Specialized
subcommittees for health maintenance and promotion include theRambling tour of Tokyo’s
Tsukiji-Odaiba in 2003

Mental Heath Subcommittee, the Education Subcommittee, theLifestyle Habits Subcommittee, and the Publicity Subcommittee.
Based on individual’s health check results, nutrition- and exerciserelated counseling schedules are worked out aiming at improving theindividual’s overall physical condition. As part of our companywide systematic health promotion activities, the committee members
appointed at the respective business units conduct recreational
activities and test the exercise ability of each individual.

Environmental Communications
We actively provide information and seek interactive communication with stakeholders to keep them apprised of
Tokuyama’s environmental activities.

■Environmental Report■Participation in Environmental Events

Since our first publication in 1997, wehave prepared an annual Environmental
Report (available in both Japanese andEnglish) to keep all concerned apprisedof the corporate approach toenvironmental activities and provide asummary of our year’s environmental
activities. The reports are also available
on our Web site.

In support of the Yamaguchi Iki-iki EcoFair (Sponsored by
Yamaguchi Prefecture, October 11–12, 2003), we had a booth topresent our environmental activities, including Waste Material
Recycling in Cement Kilns, and deepened exchanges withcitizens.

Report for 2003

■ Environment-related Information on
Our Web Site

Environmental Information Main Page

We provide an“Environmental Information”
directory on our Web site andput out a variety of detailed
information covering“Responsible Care,” “Waste
Material Recycling
Business,” “MSDS (Material
Safety Data Sheet),” etc.
(in Japanese only)

Tokuyama booth. Visitors were given original digital-photo post cards and balloons.

* Control Category I refers to a condition in which an atmospheric concentration of hazardous substances is below the control level in most part (over 95%) of the unit work area. There arethree classes of Control Category: Category I, II, and III, of which I is the most desirable.

Site Report—Co-existence with Local Communities

Tokuyama Factory

Executive Managing Director andTokuyama Factory General Manager

Hisami Tanimoto
Location: 1-1, Mikage-cho, Shunan City, Yamaguchi Prefecture
Number of Employees: 1,584
Area of Factory : Total 1,430,000 m2, including
Tokuyama Plant, Nanyo Plant and Higashi Plant
Main Products
Cement, inorganic and organic chemical products, polycrystalline
silicon, silica, vinyl chloride, etc.
Features
Facing the Tokuyama bay, the factory is conveniently located for sea
transportation of raw materials and products. The cement factory
contributes to recycling waste materials and by-products. Electric
power and steam are supplied from our own power generation plant.

■Commitment to Environmental Preservation• The factory defines its safety and environmental policy basedon the company-wide policy, and then sets objectives and goals
based on specific factory policies. Employees participate inactivities directed toward achieving these objectives and goals.
• A total of six neighboring companies, including several of ourgroup companies, have acquired ISO 14001 certification andRelease and Transfer of PRTR Substances Sorted
by Item (FY 2003)*(in tons** except dioxins, in mg-TEQ)
Name of substanceAmount released
Legallyspecified To To public
Amountsubstance atmo- water To soils Sub- transferredtotal
number sphere systems

Cresol67

0.0 23.5

0.0 23.5

0.0

1,2-dichloroethane

116

18.9

0.0

0.0 18.9

0.1

Chloromethane (Methyl chloride)

96

15.6

0.0

0.0 15.6

0.0

Chloroethylene (Vinyl chloride)

77

10.8

0.0

0.0 10.8

0.0

Dichloromethane (Methylene chloride)

145

10.5

0.0

0.0

10.5

0.2

Chloroform

95

7.5

0.0

0.0

7.5

0.0

Toluene

227

3.8

0.0

0.0

3.8

96.1

1,2-dichloropropane

135

3.4

0.0

0.0

3.4 187.2

1,2-epoxypropane (Propylene oxide)

56

0.6

0.0

0.0

0.6

2.3

Carbon tetrachloride

112

0.4

0.0

0.0

0.4

0.0

Copper and its water-soluble salts

207

0.0

0.0

0.0

0.0

0.0

Hydrazine

253

0.0

0.0

0.0

0.0

0.0

Hydrogen fluoride

283

0.0

0.0

0.0

0.0

0.0

Benzene

299

0.0

0.0

0.0

0.0

0.0

Boron and its compounds

304

0.0

0.0

0.0

0.0

0.0

Dioxins

179(33.8) (15.2)(0.0) (49.0)

(0.0)

71.5

0.0

285.9

Total

23.5

95.0

Scope of survey includes PRTR-law specified substances with an amount handled ofmore than 1 ton per year, and dioxins.
** While the PRTR Law says the amount of release shall be given in kilograms to two
significant figures, the amount in this report is given in tons, rounded to the nearest
1/10 ton (dioxins in mg-TEQ).
*

are running environmental management systems.

• We are working to reduce environmental loads. Concerning
PRTR substances in particular, we have been working tominimize their releases and/or emissions for many years. In
fiscal 2003, we implemented measures on releasing vinyl
chloride, 1,2-dichloroethane, etc., from the vinyl chloride
plant; however, partly due to the failure of the incinerator, we
regretfully had to allow the release amount to slightly increase.
We will continue to systematically pursue the means to reducereleases of such substances.

Release of Dichloromethane (Methylene chloride)(Tons)

30
25

25

20

15

15

12

11

11

10

7
5
0
95

00

01

02

03

04 (Fiscal year)(Estimate)

An Eco Station
where wastematerials are sorted• As part of our effort to reduce waste materials, we reutilize themajority of waste materials produced by the factory as cement
raw material substitutes. We built a new waste storage facility(Eco Station) in fiscal 2003, designed to facilitate the sorting
process for recycling, which helped to significantly reduce
waste disposal to landfills.

■Commitment to Process Safety• We have organized an independent disaster prevention unit,
and conduct a comprehensive joint disaster drill once a year
based on a variety of simulated accidents and disasters.
• We are promoting acquisition of Voluntary Safety
Certification based on the High Pressure Gas Control Law,
and have so far been certified as an “Administrator of
Accredited Safety Inspection” for two units of our facilities.
We have proceeded with our preparations in fiscal 2003 to becertified for a further ten units.

 ■Coexistence with Local Communities• Shunan City is developing its “Clean Network Promotion
Activities” to improve
the local environment.
Tokuyama Factory
participates in these
activities and carries out
a “Cleanup Campaign”
once a month to clean
around its vicinity.

• Each year we are also
active participants inforestry maintenanceactivities, called“Activities forCommunity-ForestWater Interaction,”organized to help
preserve the forests inthe community area.
One hundred and forty people participated in fiscal 2003.

Joint disaster drill• We made presentations on “Our Commitment to■ Commitment to Occupational Health and
Safety• We commenced operating the Health and Safety Management
System in fiscal 2003 to help us prevent industrial accidents.
• We have established an “Accident Prevention Conference”
jointly with our subcontractors, and are developing“subcontractor-integrated activities” for the prevention of
accidents and/or disasters at work. By reinforcing safety
patrols and safety meetings, we are improving informationsharing and safety awareness among all employees.
• To ensure safety, we emphasize the following major topics:“Creating a workplace where nothing is overlooked” toprevent any unsafe conditions or actions; the concept of“think-about-safety” before starting actions; and “Visible
Safety,” which helps to uncover potential workplace hazards.
Specific activities include hazard prediction activities such as
mutual alertness promotion, hazard labeling, improvement ofsigns, verbal safety checks by voicing the name and pointing
at the item to be checked; hazard prediction activities such as
KY, information exchange on “close call” experiences atwork; safety education and training, and safety andenvironmental assessments.
All the above efforts enabled Tokuyama Factory toestablish for the first time a Category II zero-accidents record(8.1 million hours for the chemical industry), as defined by the
Ministry of Health, Labor and Welfare in December 2003.

Environmental Preservation” during the Responsible Carebriefing to community people, aimed at increasing community
awareness of theenvironmental
preservation efforts
being made by thecompanies in the
Shunan District. Afterthe presentations, we
hosted a tour of our
Tokuyama Factory on
behalf of the industrial complex in the area. It followed thefirst one hosted last year and was very useful to deepen themutual understanding. We intend to continue this type of
dialogues with the local communities.

• We aim at being acompany open tosociety. Anyone
interested can visit us
for a factory tour bymaking an applicationin advance. We hadsome 2,800 visitors to
our Tokuyama Factoryin fiscal 2003, taking the tour of the cement plant where thewaste recycling facilities are in operation.

• Out of seven environmental complaints in fiscal 2003, twowere considered attributable to our Tokuyama operations. We
investigated the causes and implemented the necessary
measures for the equipment involved.

Site Report—Co-existence with Local Communities

Kashima Factory
Kashima Factory General Manager

Location: 26 Sunayama, Hasaki-machi, Kashima-gun, Ibaraki Prefecture
Number of Employees: 87 Area of Factory Premises: 101,000 m2

Shigeki Yuasa

Kashima Factory is located within the Hasaki Industrial Complex that forms a partof the Kashima Coastal Industrial Region. It comprises Tokuyama’s Kashima
Factory, Kashima Plant of Tokuyama Dental Corporation, and Kashima Works of
A&T Corporation. They all belong to the Tokuyama Group and are engaged in
manufacturing specialty chemical products that contribute to human health.

Tokuyama’s Kashima Factory
Bulk pharmaceuticals (x-ray contrast agents, stomach
and duodenal ulcer treatment drugs); optical materials(plastic lens monomers, light modulating materials,
hard coat solutions); raw materials for electronic
components; metal washing solutions
Kashima Plant of Tokuyama Dental Corporation
Dental materials (restorative materials, adhesives,
denture relining materials, impression materials, dentalstone, implant materials)
Kashima Works of A&T Corporation
Diagnostic reagents (electrolyte analysis reagents,
glucose analysis reagents, polyamine analysis reagents)■Commitment to Environmental Preservation• Our waste water management focused on ethylene glycol ofon the ISO 14001 Environmental Management System, we areworking on minimizing the environmental loads caused bythose substances.
• Our studies to date in reducing hazardous air pollutants has
enabled us to switch the processing solutions fromdichloromethane to water in part of the overall process, andthus to reduce the atmospheric emissions of dichloromethane(at Kashima Plant, Tokuyama Dental Corp.).

which the release amount was the largest. We achieved an
80% reduction in the ethylene glycol release to the public
waste water system.
• 90% of the industrial waste from Kashima Factory are wasteoils, which are partially recovered by distilling. We managed
to recover about 24% of the waste oils in fiscal 2003. When
we send them to consignment incineration, we still ask for
maximum thermal recycling, rather than direct incineration.
Such efforts have resulted in a recycling rate increase from
47% to 60%.

Release and Transfer of PRTR Substances Sorted
by Item (FY 2003)* Tokuyama’s Kashima Factory(in tons**)
Amount released
Legallyspecified To To public
Amountsubstance atmo- water To soils Sub- transferredtotal
number sphere systems

Toluene

227

1.4

0.5

0.0

1.9

17.2

Ethylene glycol

43

0.0

0.5

0.0

0.5

1.4

Chloroform

95

0.3

0.2

0.0

0.5

0.8

Dichloromethane (Methylene chloride)

145

0.3

0.0

0.0

0.3

1.9

Acetonitrile

12

0.0

0.0

0.0

0.0

2.5

N,N-dimethylformamide

172

0.0

0.0

0.0

0.0

12.4

1,4-dioxane

113

0.0

0.0

0.0

0.0

0.1

2-vinylpyridine

256

0.0

0.0

0.0

0.0

0.2

Methacrylic acid

314

0.0

0.0

0.0

0.0

0.0

2,3-epoxypropyl methacrylate

316

0.0

0.0

0.0

0.0

0.0

α-methylstyrene

335

0.0

0.0

0.0

0.0

0.0

2.0

1.2

0.0

3.2

36.5

Total

(total of 3 companies)

Scope of survey includes PRTR-law specified substances with an amount handled ofmore than 1 ton per year.
** While the PRTR Law says the amount of release shall be given in kilograms to two
significant figures, the amount in this report is given in tons, rounded to the nearest
1/10 ton.

30

400

350

24.6

25

300
Amount of landfill (tons)

Name of substanceTransition of Yearly Final Disposal to Landfill

20
250

15

200

150
10
100

5.8

5.7

5.9

6.8

4.6

5

50

3

*

!

45

44

357

53

39

43

98

99

00

01

02

03

0

40

0
05 (Fiscal year)(Estimated)

Landfills to total waste (%)• Eleven PRTR substances are used in Kashima Factory. Based

Amount of Waste Materials and Recycling Ratio(total of 3 companies)
Sludge(Tons)

Waste oils and solvents

1,000

1,040

1,044

100

We are also working to improve our risk management byintroducing the Safety and Health Management System to the
manufacturing departments. The workplace environmental quality
has always been favorably maintained within Control Category I.

90Workplace Environmental Analysis Results (total of 3 companies)

General waste

1,200

80
70

800

Recycling ratio (%)

60.2
60

47.2

600

47.0
561

31.9

400

50

568

40
30

343

20

200

67

77

27

73

27

17

0
00

01

02

44

 

10

0
03 (Fiscal year)• We are now close to resolving problems concerning therecycling of particular activated carbon waste and metals. Thisshould help further reduce the final waste disposal to landfill(sludge and stabilized wastes). We estimate the disposal tolandfill in fiscal 2004 will be reduced to 40 tons or less from43 tons in fiscal 2003.
• We check noise levels, odors, and rain water on a monthly
basis to ensure that they meet the levels required by the
Pollution Prevention Agreement.
• We made inspection visits to six industrial waste handling
contractors in fiscal 2003 and confirmed that waste was being
handled in an appropriate manner.

Fiscal year

1999

2000

2001

2002

2003

Control category

I II III I II III I II III I II III I II III

Number of analyses

21 0 0 31 1 0 34 2 0 36 0 0 18 0 0■Coexistence with Local Communities• We make May 30 a “Zero Refuse Day,” and carry out

coordinated cleaning work inside and outside Kashima
Factory every year.
• As a member of the Hasaki District Companies Network(Hasakiren), we undertook odor patrols and coordinatedcleaning around the industrial complex.
• Being the manager of Kashima-district RC Activity Networkin fiscal 2004, we will actively participate in the Responsible
Care community dialogues. We are determined to continue
promoting the environmental management activities tostrengthen harmonious coexistence with local communities.
• There was a complaint from local residents to Hasakiren that
offensive odors were experienced in the northeast district of
the complex. Although we eventually found that we were notresponsible for that incident, our General Affairs Section took
the role of coordinating with the parties concerned.
• There were three questions from the waste material handling
contractors, which were all properly dealt with throughadequate communications.

■Commitment to Process Safety
Under the 2003 slogan of “Respect the Work Rules to Protect
Yourself,” we continued to improve dangerous areas inworkplaces by providing safety patrols, and patrols by managers
and industrial physicians. Thanks to such efforts, Kashima
Factory has continued its zero-accidents record for the 18 years
since its establishment (as of end of March, 2004).
We also carry out comprehensive disaster drills, fire
extinguisher training, and water discharge exercises each year,
to be prepared for any emergency.

■Commitment to Occupational Health and Safety

Fire extinguisher
training

Water discharge
exercises

To raise employees’ health and safety awareness, the Health and
Safety Committee is running systematic activities such as
hazard prediction training, participation in safety workshops,
acquisition of official licenses, study meetings, etc.
Safety and environmental assessments are always carriedout during the prototype manufacturing of new products or forchanges in manufacturing processes.

Coordinatedcleaning work

Number of Safety & Environmental Assessments(Tokuyama’s Kashima Factory)
Fiscal year

1999

2000

2001

2002

2003

Number of Safety &Environmental Assessments

1

14

11

9

9

"

Group Participation
We are encouraging all Tokuyama group companies to participate in Responsible Care activities so that we can act
in a unified way.

■ Supporting Group Companies
in Their RC Activities

We believe we should jointly address Responsible Care activities
with our group companies. To provide support for their activities,
we have exchanged a memorandum of agreement on RC
management with the respective group companies that are engaged
in production activities at home and aboard.
We assess overall RC activities by reviewing the RC activity
data of the group companies, such as their environmental loads,
safety management indicators, etc., and also by making safety andenvironmental inspections for several companies on a yearly basis.
We share information on relevant laws and regulations among
all the group companies, and also help them acquire ISO 14001
and ISO 9001 certification.

Shin Dai-ichi Vinyl Corporation
Company overview:
Date established: July 1, 1995
Shareholders:
Tokuyama Corp. 71.0%, ZEON Corp. 14.5%,
Sumitomo Chemical Co. 14.5%
Head office:Tokuyama Bldg. 4-5, Nishi-Shinbashi 1-chome, Minato-ku, Tokyo
Factories:
Chiba Factory
5-1 Anegasakikaigan, Ichihara City, Chiba Prefecture
Tokuyama Factory
1-1 Harumicho, Shunan City, Yamaguchi Prefecture
Takaoka Factory
630 Ogino, Takaoka City, Toyama Prefecture
Ehime Factory
Takaoka Factory
10-1 Kikumotocho 1-chome,Niihama City, Ehime Prefecture Tokuyama
Factory
President:
Nobutada Maeda
Chiba Factory
Capital:
JPY 8,000 million
Ehime Factory
Main business: Manufacture and sale ofvinyl chloride resins■Company’s RC Activities
The company was founded in 1995 by Tokuyama Corp., Sumitomo
Chemical Co., and ZEON Corp. to manufacture and sell vinyl
chloride resins.
The company took over the manufacturing facilities that had
been owned by the investing companies and, therefore, its factories
remain at their previous sites; i.e., Chiba Factory in Chiba Pref.,Takaoka Factory in Toyama Pref., Ehime Factory in Ehime Pref.,and Tokuyama Factory in Yamaguchi Pref. Manufacturing isundertaken at these factories on a consignment basis.
RC activities involved with the manufacturing processes, suchas process safety, and occupational health and safety andenvironmental issues, are delegated to the respective factories. The
headquarters receive the performance results of such activities, andrelease the relevant information to the factories to promote RC
activities between the manufacturing and sales divisions.

25

ISO 9001 and ISO 14001 Acquisition Status for
10 Group Companies
Company name

ISO 9001 ISO 14001

Sun · Tox Co., Ltd.
Shanon Co., Ltd.
Tohoku Shanon Co., Ltd.
A&T Corporation
Figaro Engineering Inc.
Tokuyama Dental Corporation
Tokuyama Siltech Co., Ltd.
Sun Arrow Chemical Co., Ltd.
ASTOM Co., Ltd.
Shin Dai-ichi Vinyl Corporation
CertifiedIncluded as a group site

■Efforts to Reduce Vinyl Chloride Releases
Vinyl chloride, which is a raw material of our vinyl chloride
resins, is one of the self-managed substances designated by the Air
Pollution Control Law.
As a member of the Vinyl Environmental Council, we areparticipating in the 3-year Project to Reduce Atmospheric
Emissions. Our efforts in reducing the release of vinyl chloride
include thorough operational management, recovery of
unconverted gases, switching to closed-type polymerization tanks,
waste gas incineration, and so forth.

■Management under ISO 14001
Each factory has incorporated an environmental management
system into their overall systems, and has acquired ISO 14001
certification within its scope of activity.
The respective factories have set themselves environmental
goals, toward which they are conducting appropriate
environmental management activities.

Vinyl Chloride Release180
160(Tons)

162
147

140
120

109

100

81

80

71

60
40
20
0

99

00

01

02

03
(Fiscal year)We have worked to improve the qualityof our activities by undertaking
the Responsible Care Verification process.
The Japan Responsible Care Council (JRCC) instituted its “RC
Verification System” in April 2002 to verify corporate RC activities. The
RC Verification System is intended to help JRCC member companies
improve the quality and credibility of their RC activities. We were the
9th company to apply and went through the verification process in
December 2003.
The verification in our case covered four Responsible Care Codes:*Management System, Process Safety, Occupational Health and Safety,
and Environmental Preservation. Verification is performed by assessing,Letter of comments from the RC verification

on a scale of 1 to 5, the data recorded in observations and questionnaire
responses. Following the verification process, we received an assessment
report with a set of comments. We achieved a very favorably score of 4.3
on a scale of 1 to 5.
We also received some useful recommendations from JRCC, which
we intend to incorporate in future RC activities.
* In total, there are seven codes for RC verification: Management System; Process Safety; Occupational
Health and Safety; Environmental Preservation; Distribution Safety; Chemical and Product Safety; andCommunity Dialogue.

Meeting during the RC verification process

Tokuyama RC Activities—Historical Overview
July 1991
March 1993

Established Global Environmental Issues Committee
Established RC Administration Committee, Instituted voluntary
plan for Total Management of Environment, Safety and Quality
April 1994
Acquired ISO 9002 certification for High-Purity Isopropyl
Alcohol
June
Improved product warranty systems, such as product andlabeling assessments
April 1995
Became a member of the Japan Responsible Care Council
September 1997 Issued RC Report (First edition)
May
Acquired ISO 9001 certification for Cement Manufacturing
April 1998
Acquired ISO 9001 certification for Dental Materials
Manufacturing
DecemberAcquired ISO 9001 and 9002 certifications for aluminum
nitride and Functional Powders Manufacturing; Tokuyama
Factory was certified to ISO 14001
January 1999
Kashima Factory was certified to ISO 14001
June
Acquired ISO 9002 certification for Chemical Products,
Polypropylene, Films, etc.

DecemberAugust 2000
April 2001
April 2002
June
March 2003

April
December

Set up Ecological Management Initiative Department. Acquired
ISO 9002 certification for polycrystalline silicon, organic
solutions, etc.
Created Recycling and Environmental Business Department
Established Yamaguchi Eco-Tech Co., Ltd.
Acquired ISO 9002 certification for vinyl chloride monomer andpolyvinyl chloride
Kashima Factory won the Ibaraki Prefecture award inrecognition of it being an “Earth-Friendly Company”
Received the award of distinction in “Resource Recycling
Technologies and Systems” from the Director-General ofIndustrial Science and Technology Policy and Environment
Bureau, Ministry of Economy, Trade and Industry
Updated certification to ISO 9001:2000; company’s sales sector
was newly certified
Underwent the Responsible Care verification process.
Tokuyama Factory achieved a Category II zero-accidents record(8.1 million hours for the chemical industry) as defined by the
Ministry of Health, Labor and Welfare.

We welcome your comments on this report at our Web site address as follows: (in Japanese only)

http//www.tokuyama.co.jp/care/enquette.html
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