DENKI KAGAKU KOGYO KABUSHIKI KAISHA CSR REPORT 2011

http://www.denka.co.jp

S 2011.10 0010 IC
Published in October 2011by Denki Kagaku Kogyo Kabushiki Kaisha

This report was printed on Forest Stewardship Council-certified paper, which was sourced from well-managed
forests and other controlled sources. In addition, the printing involved no volatile organic compounds andemployed a waterless planographic process that does not create harmful water discharges.

CSR REPORT 2011

About DENKA
CONTENTS

Editorial Policy

About DENKA
Message from the President
DENKA100 Initiatives
DENKA CITYCSR Initiatives
History of CSR Activities

03
04
06
08
10

Initiatives with Employees
Human Resource Development
Measures to Enhance Productivity
Good Company Program Initiatives/
Respect for Diversity/
Labor and Management Relations
Occupational Safety and Health
Security and Disaster Prevention

12
13

14
15
16

Initiatives in Society
Communications with Society
Recycling Activities

18
20

To All of Our Stakeholders
Aiming Simultaneously for Improved Performance and the Fulfillment of Social Responsibility
First of all, we would like to express our heartfelt sympathy and deepest
condolences to those who suffered from the Great East Japan
Earthquake. We wish for the earliest possible recovery to peaceful everyday life. This disaster occurred amid a deteriorating economic environment that encompassed crude oil price hikes due to growing tension in
North Africa and the Middle East as well as the abrupt appreciation of theyen. The earthquake brought an unprecedented level of damage to ourcountry that even included accidents at a nuclear power facility, and thenegative impact on the economic and social infrastructure will be tremendous. Despite the steady progress toward restoration, we are now confronting an ongoing severe business environment with instability in theareas of raw material procurement and power supply.
Despite such circumstances, DENKI KAGAKU KOGYO KABUSHIKI
KAISHA (DENKA) continued to pursue DENKA100 activities. These activities were initiated in 2007 and are being promoted in the lead-up to ourcentennial in 2015 with the aim of consolidating our business foundation

Environmental Initiatives
Environmental Activities/
Responsible Care Activities*
CO2 Emissions and Reduction
Hydroelectric Power Generation
Rationalizing Logistics
Examples of Environment-Friendly
Product Development

DENKA set up its CSR Promoting Department in April 2007
as part of DENKA100, a Companywide initiative to meet
new challenges while heading toward its centennial in 2015,and has reported all of its CSR activities since October
2007. The CSR Report 2011 mainly introduces activities
conducted during the period under review, and others
encompassing minor changes to in-house systems andactivities conducted in a limited scope of operations are
introduced on the corporate website only. Previously,
DENKA had undergone third-party audits solely for the purpose of gaining reliable assessments of its CSR report. In
fiscal 2011, however, we solicited third-party opinions fromexperts in order to gain much more detailed evaluations of
our CSR activities.
In preparing this publication, we referred to theEnvironmental Reporting Guidelines 2007 by Japan’s
Ministry of the Environment and Version 3 of the
Sustainability Reporting Guidelines of the Global Reporting
Initiative.
Furthermore, in order to facilitate investors and shareholders’ understanding of DENKA, we included such information as consolidated financial highlights, consolidated net
sales ratio and topics by major segment in this report.

Message from the President

Coverage

22
24
25
26

This report generally covers fiscal 2010—April 1, 2010,
through March 31, 2011—however, it also includes numerical targets and performance statistics from dates precedingthat period as well as information on subsequent events.

27

Scope

for the next 100 years. Our CSR activities are part of this campaign, andare based on our faith that “the DENKA Group deserves to remain in
business only if it is recognized by society.” Quality, safety, the environment and employee happiness may not be directly connected to Group
performance, but we believe that fulfilling our responsibilities in theseareas is essential. We acknowledge that improving business performanceand fulfilling our responsibilities as a member of society must be realized
in tandem. They are like the wheels of a bicycle; if one is missing, there

Initiatives with Customers and Suppliers
Information Control/System Administration
Information Disclosure to Customers
CSR Procurement/Quality Assurance

28
29
30

Collaboration with External Institutions
Award Commendations
Subsidies/Donations

31
32

To Investors and Shareholders
Consolidated Financial Highlights
Breakdown of Consolidated Net Sales byPrincipal Business Segment
Research and Development Activities
Communications with Shareholders andInvestors
Company Information/Directors/
Investor Information
Third-Party Opinion

33

DENKA CSR REPORT 2011

can be no forward progress.
With the aim of achieving the DENKA100 numerical target of ¥60 billion in consolidated operating profit, we commenced Challenging Spirit
2013 (CS13), a more specific action plan for 2011. Under CS13, we will
first reinforce the earnings foundations of materials divisions, such as
lime, calcium carbide and styrene-based product operations, and then
expand product lineups in such growth fields as electronic materials,
functional materials and plastics. At the same time, we will emphasize
aggressive business development overseas, including in the burgeoning
markets of China and other Asian countries.
However, our ultimate goal is not the mere pursuit of better figures or

34
35
36
38
39

* Responsible Care as it pertains to the chemical industry is defined as an
approach to business activities in which manufacturers and handlers ofchemical substances, in line with the principles of self-determination andindividual responsibility, conduct the self-management of environmental
and safety issues surrounding aspects of chemical substances, fromdevelopment through to disposal.

2

Unless stated otherwise, the data in this report is based on
information on the business sites of DENKA and key affiliates.
These sites are the Omi, Omuta, Chiba, Shibukawa,
Ofuna and Isesaki plants and the Central Research Institute.
The key affiliates are Denal Silane Co., Ltd., Denak Co.,
Ltd., JUZEN Chemical Corporation at the Omi Plant, andChiba Styrene Monomer Limited Company, TOYOSTYRENE Co., Ltd., and Taiyo Vinyl Corporation at the
Chiba Plant.
The financial sections on pages 33-35 of this report present consolidated data.

Website-Only Content

results. DENKA’s business operations are underpinned by an “earnest
attitude and sincere dealings,” and we will never forget the longstanding

The following are presented on our website(URL: http://www.denka.co.jp/responsible/index.htm)
and serve as references for the CSR Report 2011.
• Corporate Governance/Compliance• The DENKA Group Guidelines• Initiatives in Human Affairs and Labor Management• Environment-Friendly Product Development• Management System• Environmental Accounting• Output• Product Safety Control and Management System• Financial Statements• Site Reports

trust we have gained from customers over out nearly 100 years of business. Over the next 100 years, we will continue to address various issues,
including the environment, safety, employment, compliance and social
contribution, while aiming to become a company that creates new value
from resources by fully employing our technological capabilities.
In this report we would like to introduce the basic policies and resultsof our CSR activities. We would be delighted to hear your frank opinionswith regard to our efforts. Based on your continued support, we will further promote our CSR activities.
Shinsuke Yoshitaka
September 2011

President
DENKA CSR REPORT 20113

About DENKA
DENKA100 Initiatives

DENKA100: Fiscal 2015 Numerical Targets
Consolidated operating income: More than ¥60 billion
Operating income ratio: More than 10%● CS13 (Challenging Spirit 2013)

Toward Our 100th Anniversary (2015)
DENKA was established in 1915. Looking back, it was a

CS13 is a three-year action plan for each business department that begins intime of great change and hardship for Japan. The era saw

fiscal 2011. The Company aims to achieve consolidated operating income of

the Russo-Japanese War in 1904, the First World War in

more than ¥45 billion in fiscal 2013 and each business department is revising its

1914 and the Great Kanto Earthquake in 1923, which

strategy to reflect changes in the economic environment in a timely manner.

occurred shortly after DENKA’s founding.
Launched in April 2007, DENKA100 was conceived ofCurrent Head Office(Nihonbashi-Mitsui Tower)● GCP (Good Company Program)as a management plan setting out Companywide activities
The Mitsui No. 2
Building, ourheadquarters at thetime of founding(around 1915)

About DENKA
K

DENKA100—Taking on New Challenges
as We Near Our Centennial

Under the GCP, everyone associated with DENKA is aiming to make theto be undertaken in preparation for the Company’s 100th

Company a “Good Company.” Positioning GCP as part of its corporate culture,anniversary in 2015.

DENKA continues to work toward this goal while striving to be a company inUnder this management plan, DENKA pursued thewhich all employees feel motivated and rewarded as well as to be a company

DS09 action plan, which was intended to run from fiscal

recognized as a reliable corporate citizen. The general managers of each depart-2007 to fiscal 2010 as the first step toward this goal. In the second half of 2008,

ment are leading the way under the slogan “exceptional themes, inspirational

however, we needed to regain profitability lost in the aftermath of the global phe-measures, outstanding results.”

nomenon of the Lehman Brothers’ bankruptcy and so launched the KIT09
action plan. We have defined the remaining five years from fiscal 2011 to 2015

The new “DENKA100” poster

as time for taking the second step and, based on a review of the DENKA100● Human Resources Development

management plan’s action guidelines, conceived of the CS13 action plan toStrengthening in-house educational activities at the Human Resource

cover the next five years. CS13 lays out specific action plans by business divi-

Development Center to boost employees’ motivation, DENKA will facilitate thesion and promotes Groupwide efforts to achieve the goals set while remaining

development of human resources who can independently think, learn and taketrue to the basic policy of DENKA100.

action.

As a company soon to celebrate its 100th anniversary, DENKA will promote
the consolidation of its business foundations so that it can secure sustainable● Advancement of Production Technologies

business activities for the next 100 years. Understanding that the current period
is a time of change in markets and technologies, we will supply products in

Through the effective use of resources and raw materials, improvement of facility

growth fields in a timely and appropriate manner to ensure future growth.

capacities, creation of higher-value-added products and enhancement of operational efficiencies, DENKA will strive to promote technological innovation andstrengthen its productive and organizational capabilities.

Response to the Great East Japan Earthquake
DENKA100 presentation

The Great East Japan Earthquake struck on Friday, March 11,

In the meantime, DENKA has reviewed its stance on social

2011, and along with the subsequent tsunamis wrought massive

contribution. Based on this, we established the Disaster Area

● Promotion of Research and Development Activities

damage to a wide area as well as various industries. In response,

Volunteer Support Program to assist employees’ volunteer

DENKA will develop new products for future growth and cultivate new markets

the DENKA Group set up support systems to provide long-term

activities in the disaster areas and commenced operations.

by reinforcing functions in its R&D department and fostering collaborative rela-assistance in disaster areas. We are participating in restoration

Carrying out continuous support activities, DENKA will continue

tionships between this and relevant departments as well as by developing next-

activities through our business operations through, for example,

to contribute to the restoration of disaster areas.

generation human resources.

the provision of materials to repair infrastructure, while making
efficient use of in-house power generation facilities.

• The DENKA Group’s Response at Its Production Sites
In response to the shortage of power supply, DENKA is striving
for energy savings that go far beyond the JapaneseStarting immediately after the disaster, DENKA provided suchgovernment’s requirement of 15%. As part of such initiatives, theeveryday goods as disposable dishes to the affected areas,

production and sales departments are working in tandem tobetter business results, we faithfully address various issues, including thosewhile making financial contributions as a company and collecting

achieve more efficient production while proactively enhancing

related to the environment, safety, employment, compliance and social contribu-

donations from employees in order to help survivors as much as

productivity and promoting energy-saving operations through thetion. In this light, DENKA will aim for harmonious coexistence with local commu-

possible.

improvement of production technologies.

nities, society and the global environment by promoting CSR activities according

Furthermore, to aid in the restoration of such social

4● Promotion of CSR (Corporate Social Responsibility)• Support for People in Disaster Areas

Furthermore, by effectively utilizing in-house power

infrastructure as the Tohoku Shinkansen line, the Group has

generation facilities, including hydroelectric power plants, DENKA

been expediting the shipment of cement, special cement

is reducing the use of electricity supplied from outside theadditives and other civil construction-related materials.

Company.

DENKA CSR REPORT 2011

Based on the belief that DENKA’s ultimate goal is more than simply achieving

to its plan.

DENKA CSR REPORT 20115

About DENKA
DENKA CITY

As a general chemicals manufacturer, the DENKA
Group develops and supplies a wide array of
products, including organic and inorganic
materials, resins and electronic materials.
The value-added products created using
DENKA’s advanced technological capabilities are
utilized in ways that affect society at all levels
and contribute to both prosperous lifestyles andindustrial development.

About DENKA
K

DENKA products make the world a better place

Hydroelectric power plants

Σ80N: high-strength concrete

Quick-setting agents for sprayed concrete linings
NATMICElectric trains
AN PLATE and ALSINK: ceramic baseplates for inverters

Bridge supporting materials

Golf clubs

PRETASCON and HARDLOC IIHARDLOC: structural adhesives

Airports■ Organic Materials

SUQCEM: ultrahigh-strength
fiber-reinforced concrete

Main products: Resin raw materials, synthetic resins,
acetic acid products, synthetic rubber

Train exteriors

Eel farms

Underground drainpipes

DX FILMHISUI EELTOYODRAIN■ Inorganic Materials
Main products: Fertilizers, inorganic chemicals, cement,
special cement additives■ Electronic Materials

Influenza vaccines
Influenza test kits

Concrete repairs

Main products: Electronic products, electronic packaging,
functional ceramics, adhesives

Rising method and HARDLOC II■ Functional Materials and Plastics

Solar batteries
Advertising on bus exteriors

Main products: Food packaging, construction materials,
industrial materials, pharmaceuticals

DX FILM: back sheet

DX FILM

Monosilane gas: an ultrahigh-purity special gas
SOLARLOC: temporary fixing adhesives

Preparation for improving joint functions
Automated multi-story car parks
POWER CSA

Macromolecular sodium hyaluronate

Light-Emitting Diode (LED) Lighting
DENKA HITTPLATE and Thermally conductive sheet
ALONBRIGHT: SiAlON phosphor

Flat panel display TVs
DENKA HITTPLATE: insulated thermallyconductive metal circuit board,
Transparent polymer,
Thermally Conductive Sheet and Spacer
ALONBRIGHT: SiAlON Phosphor

Metal welding
CarbideWallpaper adhesives
EVA TEX

Office buildings, condominiums and other structures

Air conditioners

Cement

DENKA HITTPLATE:
inverter circuit board

Rain gutters
TOYO GUTTERS

Game machines

Lithium batteries

Transparent polymers

DENKA BLACK: special
conductive carbon black
ALCEN: alumina short fiber

Air Conditioners

Elevators
HARDLOC: structural adhesives

WALLDUCT:
piping protective
and decorative cover

DVD players
HARDLOC UV,Thermally Conductive Sheet and Spacer

Ｃ Ｓ ＲＲＲ
Ｒ へへへ
への取り組みQuake-resistantconstruction material

Digital cameras
HARDLOC OP: lens adhesive

TASCON

Cellular phones
Holding material for combustion catalysts
in automotive
ALCEN: alumina short fibers

Electromotive power steering controllers
DENKA HITTPLATE: high thermal conductivity circuit boards

MALECCA:
heat-resistant ABS resin,
TEMPLOC: temporary
fixing adhesives

Audio equipment
DENKA HITTPLATE: insulated thermallyconductive metal circuit board,
Thermally Conductive Sheet and Spacer
HARDLOC: structural adhesive

Personal computers
Refrigerators
ABS resin Styrol MW

Wire harness tapes for bundling
VINI-TAPE

Wetsuits
Chloroprene:
special synthetic rubber

FUSED SILICA: semiconductor sealant filler,
Thermally Conductive Sheet and Spacer

Vacuum cleaners
Transparent polymers

Food packaging materials

Automotive interiors,
vehicle-mounted audio equipment
and door mirrors

Thermosheet OPS

MALECCA: heat-resistant ABS resin

Fertilizer
Hoses, belts, boots and air suspensions
Chloroprene and DENKA ER: synthetic rubbers

Calcium cyanamide, AZUMIN and YORIN

Basic cosmetics
URUOI

Coolant
DENKA POVALPET bottle labeling film
CLEAREN: SBC resin

Synthetic wig fibers
TOYOKALON

6DENKA CSR REPORT 2011

DENKA CSR REPORT 20117

About DENKA
CSR Initiatives■ CSR Vision

The DENKA Group is working assiduously to achieve the numerical

Promoting CSR activities from the eco-targets set out in DENKA100 and CS13. However, the Group con-nomic, social and environmental perspec-

siders its purpose to be more than simply attaining better businesstives, DENKA will continue to pursue lasting

results.

trust as an outstanding manufacturer

About DENKA
K■ DENKA’s CSR

Society

The Group has thus positioned CSR activities as a key

s #ONTRIBUTING TO
LOCAL COMMUNITIESs 4HOROUGH COMPLIANCE

DENKA100 initiative and will sincerely address various issues,
including employees’ happiness, social contribution, regulatorycompliance, environmental consciousness, ensuring safety, securing shareholder returns and enhancing customer satisfaction as#OMPLIANCE3OCIAL CONTRIBUTION0RODUCT SAFETY

well as relationships with suppliers. The continued functioning of
the DENKA Group’s business operations depends on society’s
acceptance of the Group. We acknowledge that improving business performance and fulfilling our responsibilities as a member of

Pursuing lasting trust as an outstanding manufacturersociety must be realized in tandem. They are like the wheels of abicycle; if one is missing, there is no moving forward.

Mitsukuni Ayabe
Director, Managing Executive Officer
In charge of CSR Promoting Department

Such responsibilities cover all the stakeholders that DENKA’s
business operations touch, namely, employees, suppliers, govern-

EconomyEnvironment

mental institutions and NPOs, society and shareholders as well ass #ONCERN FOR THE
GLOBAL ENVIRONMENTs 3ECURING SAFETY

s 2ETURNS TO SHAREHOLDERSs "ETTER CUSTOMER SATISFACTION
s %MPLOYEES HAPPINESS%NSURING SECURITY#ORPORATE GOVERNANCE

the environment.

Positioning CSR activities as a DENKA100 key initiative, the%NVIRONMENTAL PRESERVATION

2ISK MANAGEMENT)NFORMATION DISCLOSURE

DENKA Group will sincerely work for the benefit of
all of its stakeholders in line with its role as a memberof society.

■CSR Promotion Challenges, Goals and Achivements
Fiscal 2010 Challenges and Goals
Challenges
Goals

Stakeholders■CSR Promotion Structure and Action Guidelines
Employees

Based on our corporate philosophy—to become a company that creates new value from resources by fully employing our technological■ CSR Promotion Structure
President

capabilities—the DENKA Group established CSR action guidelines.

of CSR activities addresses the said issue. Daily operations are handled by the CSR Promoting Department.

Responsible Care (RC) Committee
Safety Measures Headquarters

To support its CSR activities, DENKA formulated the CSR promotion structure. When a major issue occurs, the department in charge

CSR Promoting Department

The Environment

Product Liability (PL) Committee

Security Export Control Committee

With the aim of facilitating the understanding of all employeeswith regard to CSR activities so that it can more keenly engage inInternal Auditing Department

such activities, the CSR Promoting Department has painstakingly

Investor Relations andCorporate Communication Department

developed an in-house structure to promote CSR. In addition, theAs of April 2011

Society

General public
and local
communities• Offered education by level/specialty
area• Conducted occupational safety
and health activities• Prevention of global warming (CO2
• Promotion of RC activities • Implemented RC activities
emissions reduction), Curbing• Implementation of the• Implemented the Medium-Termchemical substance emissions,
Medium-Term
Environmental Plan
waste reduction, technological
Environmental Planinnovation for energy conservation• Development and provision ofhigh-quality, economic products

Customers and Suppliers • Business activities through fair

B

B

C

• Thorough compliance(reviewing internal auditing
system)• Invigoration of communications
with local communities• Effective use of public
policy-related subsidy
systems• Acquired various subsidies

B• Proactive participation in public
policies and activities• Securing safety of raw
materials• Implemented and abided by anegative list

B

• Accurate and reliable
information disclosure• Proactive communication
with investors• Thorough internal control• Information disclosure to investorsAand open trade

The DENKA Group Guidelines are introduced on page 3 of the Web-based
CSR Report reference materials.
http://www.denka.co.jp/responsible/index.htm

Shareholders andInvestors• Achieving stable improvement ofbusiness results andestablishment of relationships oftrust through informationexchanges

A: Achieved significant results
B: Observed some results

8

DENKA CSR REPORT 2011

• Human resource development(nurturing CSR mindset)• Information disclosure about
overseas business bases• Securing occupational safety
and health• Review of RC activity structure(application of subcommittee
system)• Implementation of theMedium-Term Environmental
Plan• Discovered flawed security
inspection process at the Chiba
Plant (received an approval for
appropriate system after
discovering flaws and reporting
correction and preventive measures
to the government)• Facilitated communications withlocal residents• Maintain thorough compliance asa good corporate citizen and• Thorough compliancereinforce communication with• Communications withlocal communities
society• Contribute to the solution of social
issuesGovernmental/• Engage in public policies andexternal
activities
institutions

understanding of people outside the DENKA Group of its CSR activities and their status.

• Implementation of humanresource development
programs• Securing occupationalsafety and health

Ethics Committee

Risk Management Committee

CSR Promoting Department publishes the CSR Report to deepen the• Comfortable and rewarding
workplace

Fiscal 2010 Achievements
Major Challenges and Goals
Achievement in Fiscal 2011 and beyond
Fiscal 2010 Activities• Development of environmentfriendly products• Considering the promotion of
CSR procurement• Response to internal control
reporting system• Securing credibility of
disclosed information(enhancement of CSR Reportcontents)• Implementation of the CS13
business plan

C: No results were observed
D: The level of activity deteriorated
DENKA CSR REPORT 20119

About DENKA

Initiatives with Employees

History of CSR Activities

1985
1990
1995

The Canadian Chemical Producers’ Association proclaimed the Responsible Care (RC) ethos of
independently controlling and managing chemical substancesInternational Council of Chemical Association (ICCA) establishedJapan Responsible Care Council (JRCC) established; became a member
Created the Responsible Care policy and organized our Responsible Care (RC) Committee
Started Responsible Care audits

1997

Created a basic manual to promote product liability measures and organized the Product Liability (PL)Committee

1998

Organized the Energy Saving Subcommittee

1999

The Chiba Plant acquired ISO 14001 certification (all plants were certified by 2004)
Published our first Environmental Report

2000

The DENKA Group is undertaking the Good Company
Program (GCP), which involves raising employee awarenessand improving labor practices. Such Companywide
education-related initiatives are being implemented under
the DENKA100 management plan in the lead up to ourcentennial in 2015 with the intention of encouraging
employees to think, learn and act autonomously.

Discovered acetylene and dioxin emissions at our alumina fiber plant and filed a report with the relevant
government agency (becoming a designated facility under the Dioxin Special Measures Act in 2002)

2001
2002

Inaugurated natural gas cogeneration facilities at the Chiba Plant
The Omi Mine won the Gold Kanban Award for excellence in mine preservation and performance
Started presenting information on affiliates in our Environmental Report
Launched biomass boiler power generation operations at the Omi Plant

2003

Created the Negative List (a database on environmental chemical substances)
Started our first medium-term environmental plan

2004

Inaugurated our Good Company Program (GCP)2005

Launched our second medium-term environmental plan

2006

Conducted Japan Responsible Care Conference third-party audits at the Omuta Plant
Omi Plant began accepting sewage sludge for its recycling system
Commenced the Companywide DENKA100 initiative
Established the CSR Promoting Office

2007

Published our first CSR Report
Launched our third medium-term environmental plan
JRCC began providing third-party audits of our CSR Report (covering headquarters and the Chiba Plant)

2008

2009

JRCC provided a third-party audit of our CSR Report (headquarters and the Omi Plant)
Set up the Earth Committee
Established the Environmental Burdens Reduction Promoting Department
Acquired third-party verification of our CSR Report from the JRCC (covering headquarters and the Shibukawa Plant)
Signed the Responsible Care Global Charter
Launched our fourth medium-term environment plan2010

Acquired third-party verification of our CSR Report from the JRCC (covering headquarters and the Omuta Plant)

The Omi Plant acquired the OSHMS certificate
The CS13 business plan, effective through 2013, was established as a rolling plan under DENKA100
2011

10

DSPL Seraya Plant acquired the OHSAS18001 certificate

DENKA CSR REPORT 2011

DENKA CSR REPORT 201111

Initiatives with Employees
Human Resource Development

Measures to Enhance Productivity

Augmenting Human Resource Development Curricula, Including
Expanding the Role of DENKA Techno Schools

Expand Measures to Improve Production Technology andPromote Further Innovation■Human Resource Development■Initiatives in Fiscal 2010

■Measures to Improve Production Technology

We believe that employees are the most important element deter-

We once again conducted employee training with the purpose of

To improve productivity across the board, DENKA continually

mining DENKA’s future growth. Retaining employees who have theinstilling logical thinking and Plan-Do-Check-Act (PDCA) cycle

upgrades each process. The Manufacturing Division is the main

motivation, ability and energy to respond to rapidly changing busi-

problem-solving practices. These training sessions are intended fororganization for implementing such improvements based on anness conditions is fundamental to our success. Accordingly,

employees who entered the Company two to three years ago. In

understanding of relevant technological issues and by fully examin-

DENKA is developing training curricula to cultivate such employ-addition, we have opened DENKA Techno Schools to provide spe-ing various approaches. Improvements are implemented in tandemees.

cialized training for sales staff.

with the Engineering and Research departments.

■Productivity Enhancement System

Engineering Division
Research and Development
Coordination
Department
Production Technology Department,
sssss
Technology Division
Assistance/Coordination

The aims of these activities are as follows:■Educational Objectives of the Human Resource Development Center
Anticipated Fruits of Training
1 Personal Growth:■
Harness greater skills, knowledge, techniques andperformance to boost profits■
2 Organizational Growth:
Improve team performance through collaboration
within and between business units
3 Corporate Growth:■
Enhance DENKA’s profitability, brand and reputation(3) improve operational stability and production performance; andAssistance/Cooperation(4) maintain and improve quality.

Production Technology Section, Engineering
Department, Research Department

Numbers (3) and (4) in particular involve not only upgrading
technology, but also emphasizing error prevention in the areas ofoperations and design.
Based on these actions, operators, both within and outside
the Company, are working to address important issues by making
concerted efforts in the short term. These efforts are leading to■Specific Initiatives

improvements in workplace capabilities and are useful for training
young engineers.

Mandatory Job Level-Based Training

Educational Support

Under these programs, employees acquire the knowledge they

●Skill Acquisitionneed to fulfill their duties. We train new managers, young employ-

We assist employees taking language classes and correspondence■ Specific Examples of Measures to Improve Technology

ees and other employees. The main focuses are such business fun-courses. We also support those seeking to acquire certain formal• We are encouraging the proper use and improved control ofdamentals as compliance and other legal areas, as well as safety

qualifications.

equipment to avoid wasting energy amid an unprecedented●Business Unit Training

reduction in production.

initiatives. We trained nearly 364 employees in fiscal 2010.

Specialist Courses

Each business unit identifies areas needing improvement and for-• We are optimizing the supply of such materials as fuel gas, which

In fiscal 2010, more than 578 employees took accounting, busi-

mulates and implements its own programs. There is a constantis injected into fusion furnaces, and raw material powders

ness, information technology, trade, investor relations, corporate

focus on establishing, planning and executing original educational

through testing based on practical analysis, simulations andsocial responsibility and distribution courses, with the purpose ofand training programs according to each operation to help improvemodel testing equipment. Through these actions, we will

acquiring the specialized knowledge required to undertake busi-

the knowledge and skills of every employee.

increase production while reducing the unit consumption of gas.

ness operations.

Overseas
PlantsAffiliates• In cooperation with other companies, we are investigating the●DENKA Techno Schools
Each business unit has opened a techno school to preserve ourtechnological and skills resources and provide employees with

Mutual Assistance/Information Sharing/Technological Development

Personnel Requisites(1) Strive constantly to better yourself through businessand social activities(2) Always respect others and remain humble and positive(3) Always be selfless(4) Drive change through teamwork(5) Gain broad insights, superior problem-solving skills
and the ability to transform potential into reality(6) Be cost-conscious

Omi Plant
Manufacturing Production Process
Division(1) Increase workplace capabilities; (2) train young engineers;

commercialization of microscopic fiber. Furthermore, we will

Assistance/Cooperation

Production Technology Section, Engineering
Department, Research Department
Chiba Plant
Manufacturing Production Process
Division
Assistance/Cooperation

Production Technology Section, Engineering
Department, Research Department
Shibukawa Plant
Manufacturing Production Process
Division
Assistance/Cooperation

Engineering Department,
Research Department
Ofuna Plant
Manufacturing Production Process
Division
Assistance/Cooperation

Engineering Department,
Research Department
Isesaki Plant
Manufacturing Production Process
Divisionincrease the scale of such initiatives (expanding from bench test-

Assistance/Cooperation

ing to the installation of production facilities), which are aimed atexpert and practical knowledge.

Omuta Plant
Manufacturing Production Process
Division

Engineering Department,
Research Department

addressing issues related to the development of new synthesis
technology for use in fabricating low-cost, high-quality products.

■DENKA Training System• We are improving productivity by revamping the stirring mechanisms

GeneralGeneral manager program
managers
Manager program

New management
programAssistantmanagers Assistant manager program■ コーポレートガバナンス概念図
Five-year program

Regularemployees

Three-year program
Two-year program
Follow-up program
New employee program

12

DENKA CSR REPORT 2011

Technical(including patents, quality control, and analysis)Management(including legal issues, accounting, and CSR)

Sales
(including logistics, trade, and purchasing)used in dissolver tanks. This equipment is part of the mixing pro-commonly used in DENKA’s plants. To this end, we are sharing

cess, during which raw materials are melted down using solvents.

technology-related information by obtaining the latest information

Omi Plant

Other measures include the appropriate use of and improvementsfrom extrusion manufacturers and facilitating mutual assistanceOmuta Plant

to operating and control technology for the extrusion equipment

among plants.

Business Unit Training

Chiba Plant
Shibukawa Plant

The Voice of a Young Engineer

Chief program

Educational Support

Assistant chief program

Language courses

Ofuna Plant

Correspondence courses

Isesaki Plant

Makoto Hirose
Production Technology Section, Chiba Plant

Subsidies for acquiring formal qualifications

Research InstituteAs other plants urgently ramped up thedetermine whether the level of humidity and pressure were appropriate

manufacture of processing products forfor this type of production. Based on chemical engineering-related cal-

synthetic plastics, I participated in a project

culations and analyses that combined test data obtained from actual

to examine the possibility of engaging inmachine operations and simulations, we were able to achieve effective

this type of production. Given an increase in

results on site. Each stage of this investigation was a valuable experi-

the volume of synthetic plastics being dis-ence thanks to the unsurpassed knowledge and experience of seniorcharged by the nozzles, we made exacting

employees, who provided direct guidance and kept us motivated.

efforts, in concert with plant workers, to

DENKA CSR REPORT 2011

Technical worker program
General staff program

Personal
advancement
driving results

Managers

Specialist Courses
Company’s growth
contributing to social
progress

Mandatory Job Level-Based Training

DENKA Techno School specialist education in skills useful for businessWorking with Advanced Technological Capabilities Was a Valuable Experience

13

Initiatives with Employees

Person in overall chargeof technology

Initiatives with Employees
Good Company Program Initiatives/Respect for Diversity/Labor and Management Relations

Occupational Safety and HealthCreating Comfortable and Motivating Workplaces

We endeavor to maintain safe and comfortable workplaces andprevent disasters for society’s peace of mind.

■Fiscal 2010 Good Company Program (GCP) Initiatives■Occupational Safety Record

For society, for the environment, for customers and shareholders,

The number of people involved in occupational accidents requiringties hone on-site capabilities by changing the way employees thinkand by encouraging autonomy and proactivity. Participation is on agroup basis, with groups consisting of employees from the same
unit and all employees attending.
Implementation of the GCP is the responsibility of managers
and requires 100% participation. Every six months, all the employees of a division will come together to clarify priority issues in aneffort to find solutions.

Holding a GCP 2.0 Networking Meeting at theOmi Plant
The GCP 2.0 Networking Meeting is a Companywide event that isconvened once a year. At this event, the successes of GCP members are highlighted and lively discussions are held. In fiscal 2010, a

Working together with industrial physicians and health care institu-

are the accident frequency rates.

tions, we provide guidance to individual employees. Such activities

DENKA: 3 (0.57) Subcontractors: 0 (0.00)

include following up on medical examination results, implementing
mental health-related measures and providing health-related edu-

2010 at the Omi Plant, sponsored by the DENKA100 Promoting[

Department. With 12 overseas employees also in attendance, par-The rate if 1.7 people per 1,000 DENKA employees suffered accidents would be about 0.6.

GCP 2.0 Networking Meeting took place over June 10 and 11,

Number of deaths and injuries
Accident
frequency ＝
Total
number of working hours
rate

×（1 million）]

within the DENKA Group.

cation. We are working to create a workplace that is safe from amental-health perspective through the early detection and prevention of illnesses.

Isesaki and Ota Plants

ticipants discussed how using multiple languages can improve
communication and how these meetings foster a sense of unity

Measurestime off in fiscal 2010 was as follows. The figures in parentheses

We held lectures on September 17 and 21 focusing on the theme

Accident Frequency Rates(Frequency rate)

2.5

DENKA
Subcontractors

Manufacturer average
Chemical industry averageof worker mental health. A total of 47 supervisors and employees
from both plants participated. The lectures offered information on
the causes of disorders while providing advice on prevention, the2.0

necessity of mutual understanding and communication and
1.5

stretching exercises that relax the body and mind.

1.0

DENKA100
News

GCP website where
information is shared
Companywide

0.5

GCP 2.0 Networking
Meeting (June 11, 2010)

GCP 2.0 poster

0
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 (Year)In fiscal 2010, DENKA held safety review meetings at each of its
facilities. During these meetings, executives in charge of safety and■Respect for Diversity

on-site employees vigorously discussed safety-related issues

DENKA respects the rights and individuality of every member of its

Reemploying Retirees

under the theme of “making rigorous safety adherence a basic

diverse staff. At the same time, we work to fully utilize the abilities of

In April 2004, we launched a program to rehire retirees in order topractice and invigorating communication within the workplace.”

A mental health lecture held at the Isesaki Plant

each employee.

harness their technological knowledge and skills and pass them on

Employees voiced opinions regarding the importance of safety-

Central Research InstituteWork-Life Balance

to younger employees. At the end of May 2010, 277 employees

related training, stable manufacturing processes, safe construction

On October 4, 2010, one of DENKA’s industrial physicians, Dr.

DENKA promotes the development of comfortable workplaces in

who were retirees were reemployed on a nonconsolidated basis.

and safety guidance for subcontractors. We will reflect these opin-

Shuichiro Watanabe held a lecture about the role of laughter infull consideration of the need to balance both work and family life.

Preventing Harassment

ions in the next fiscal year’s safety plans.

maintaining and improving the mental health of all employees.

Employing People with Disabilities

DENKA maintains various systems to prevent all types of harass-

We are creating safe workplaces so people with disabilities canment with the purpose of respecting the individuality of employees.

realize their potential. The percentage of employees with disabilities

No complaints were made to our consultation desk in fiscal 2010.

on a nonconsolidated basis stood at 1.82% in fiscal 2010.

During the lecture, Dr. Watanabe explained ways of preventing■Occupational Safety Activities

mental illness and provided opportunities for attendees to try out

At the Ofuna Plant, we are working to raise awareness about safety

various health-maintenance techniques. This lecture helped towhile undertaking initiatives with the goal of achieving zero acci-

raise awareness of mental health issues.

dents. The Ofuna Plant’s safety-promotion working group is mainly
engaged in holding safety training sessions. During the “behavior■Labor and Management Relations

drills” and “studying past accidents” portions of the safety training
sessions, we firmly impressed upon employees the fundamental

Maintaining Good Relationships

Participants having fun at alottery held during the head
office summer party

Management maintains positive relationships with employee organizations, regularly meeting with officials of The Denki Kagaku Labor
Union and The Head Office Labor Union based on mutual goodactions required to maintain safety. Under the direction of “Safety
Meisters” and other instructors, we are “cultivating safety-conscious
employees who do not get hurt or cause others to be harmed.”faith and otherwise negotiating with these bodies.

Labor Management Exchanges
On August 27, 2010, with the sponsorship of the Head Office Labor
Union, the DENKA100 Promoting Department supported a headAn explanation of how laughter helps to improve health at theCentral Research Instituteoffice summer party. A total of 250 executives and employees participated in this event.
On December 18, 2010, executives and employees participated forthe first time in recreational soft volleyball and bingo games at the
Isesaki Civic Gymnasium. A total of 67 Isesaki Plant employees andtheir families participated in this event.

14

DENKA CSR REPORT 2011

Employees taking part ina soft volleyball gameAn opening ceremony for DENKA’s safety training
sessions (June 25, 2010)

DENKA CSR REPORT 201115

Initiatives with Employees

and for DENKA associates, Good Company Program (GCP) activi-■Health Management and Mental Health-Related

Initiatives in Society

Initiatives with Employees
Security and Disaster Prevention

Pursuing Safety by Cooperating with Governments
and Municipalities■Security and Disaster Prevention

Omi Plant

During fiscal 2010, we experienced no fires, explosions or leaks of

We conducted comprehensive emergency drills at Himekawa

hazardous materials that would significantly affect the communities

Harbor on September 29, 2010. This large-scale drill was conduct-in which we operate. However, there were 16 safety-related prob-

ed to ensure preparedness in the event of an earthquake measuringlems likely caused by leaks and fires, 11 more than in the previous

in the sixes on the seven-point Japanese seismic intensity scale asfiscal year. The majority of these were electrical problems and thewell as subsequent tsunamis, tanker fires and heavy oil spills in the

result of power outages and short circuits caused by the Great East

harbor and employee injuries. In addition, the drill, which involved aJapan Earthquake, lighting strikes, snow and other natural phenom-

total of 123 people, was conducted jointly with the Marine Safetyena. The next largest cause of accidents was fires due to theStation, Joetsu, Itoigawa Fire Department and Himekawa Harbor

improper management of equipment and flammable materials. We

Users Association.

DENKA products play a useful role in people’s homes andthroughout society. Aiming to develop even stronger
relationships of trust with all members of society, DENKA
engages in a wide array of communication-related activities,
ranging from social contribution efforts to community dialogues.

will work to conduct training that reinforces adherence to established procedures while systematically addressing specific problems.

Chiba Plant
Recertifying High Pressure Gas Safety Inspection Executors
The Chiba Plant applied to the Ministry of Economy, Trade andIndustry in order to recertify its accredited safety inspection executors, who inspect the safety of high pressure gas equipment at its
styrene monomer manufacturing facility. Recertification was granted
after a Ministry review confirmed that the Plant’s measures wereappropriate. Consequently, after being recertified on March 11,
2011, DENKA was given permission to conduct safety inspections

Friendship Concert (p.19)

A large-scale drill involving
both government
agencies and businessfor another five years in accordance with Article 35 of the High
Pressure Gas Safety Act.
Correcting Deficiencies Revealed during the High-Pressure
Gas Security Inspections
The High Pressure Gas Safety Institute of Japan sponsors on-site

A drill to put out an oil fire

inspections of the Chiba Plant, which are carried out by academics
and security inspectors accredited by the Ministry of Economy,■Safety Education

Trade and Industry and the Chiba Prefectural Government. It was

DENKA emphasizes strict adherence to fundamental safety prac-revealed that the Chiba Plant had undergone only once in the pasttices that include not placing hands near equipment in operation. In

two years an inspection of certain safety equipment that must be

addition, we work to improve safety techniques through lectures

conducted every year. As a result, we promptly corrected this over-

and on-the-job training that reflects the specific characteristics ofsight and filed a report with the Chiba Prefectural Government.

individual facilities and workplaces.

Shibukawa Plant■Fire Drills

The Shibukawa Plant stresses the importance of preventing forklift
accidents, which often result in major damage. To this end, we

DENKA Azumin Co., Ltd.
DENKA conducted a fire drill in cooperation with the Hanamaki Fire
Department on November 5, 2010. Undertaken to ensure preparedness in the event of a nitric acid leakage accident, the drill

invite outside instructors to give lectures twice a year on the safe
operation of forklifts. On January 28, 2011, 32 employees attended
such a lecture, which reaffirmed the basics of forklift safety.

involved simulating a fire using nitric acid and lignite. This fire
impressed upon everyone the dangers of nitric acid. DENKA invited
approximately 30 employees from nearby businesses and local residents to observe this drill in order to improve their understanding of
the Company’s safety activities.

A lectures on
forklift safety

A drills to provide medical treatment for
those injured by inhaling poisonous gas
16

DENKA CSR REPORT 2011

Reinforcement of employees’ basic
understanding of proper forklift operation
under the guidance of an outside instructor

DENKA CSR REPORT 201117

Initiatives in Society
デンカについてCommunications with Society

Aiming to Maintain Communication That Deepens Mutual
Understanding among Members of the Local Community

Helping All People through Inspirational Music■Educational Assistance
Plant Tours

Summer Vacation Experimental Science ClassThe Omuta Plant held a tour for 42 students from Miike Technical

The Shibukawa Plant held the Summer Vacation Experimental

High School in June 2010 while the Ofuna Plant opened its doors to

Science Class for the first time in July 2010. A total of 44 students

125 students and teachers of Kanagawa Technical High School inparticipated in this event, including 24 fourth, fifth and sixth graders

February 2011. Providing an up-close view of the manufacturing lines

from nearby Toyoaki Elementary School. The students spent theand testing facilities, these tours are valuable opportunities for visitors

day becoming more familiar with science through this fun, hands-on

to deepen their understanding of DENKA’s business operations.

event. Activities included taking a tour of the plant’s interior; observing objects through electron microscopes; making personalized
PET bottles from DENKA products; participating in fingerprint
A “Fureai Concert” being performed by the Fureai Trio
From left to right: Kyoko Yoshida, Mitsutaka Shiraishi
and Genichi Watanabe

detection experiments; and making super bouncy rubber balls.

Kanagawa Technical High School
students touring the synthetic fiber
plant (February 21 – 24, 2011)

appreciate having the opportunity to enjoy live music in such a mag-in Itoigawa City

nificent hall while feeling completely at ease;” and “Music soothes
the human heart. I think the Fureai Trio’s efforts are fantastic.”.

The Fureai Trio performs concerts, gives hands-on musical lessons
and holds bazaars to support facilities that assist people with dis-Social Studies Field Trips
The Central Research Institute hosted social studies field trips forabilities. Formed by violinist Kyoko Yoshida, cellist Genichi
Students making personalized PET
bottles (July 28, 2010)

Students observing objects throughelectron microscopes

approximately 80 third graders from Machida Dai-San Elementary

Watanabe and pianist Mitsutaka Shiraishi in 2003, the Fureai Trio
has performed 320 concerts for more than 80,000 people. ThroughSchool in June 2010 and about 100 third graders from Machida

Participating in Science Events

these activities, the Fureai Trio conveys the beauty of classical

Dai-Yon Elementary School in November 2010. These spirited plant

The Omi Plant participated in the Youngsters’ Science Festival inmusic to elementary and junior high school students as well as

tours mainly consisted of a fun learning program, which included

Niigata in January 2011. We set up a booth at the two-day event

people with disabilities nationwide while assisting in the revitalization

the presentation of DENKA’s television commercials and recent

where 645 students had the opportunity to make original key hold-of local communities.

products, as well as an up-close look at its testing facilities. Theseers using such DENKA products as compressed particle board.

activities inspired many unique questions from the students.

As part of its efforts to support such activities, DENKA and its
local production facilities provided assistance for concerts held by

The audience enjoyed theperformance

Audience members clapping in unisonwith the music

Messagethe Fureai Trio in Itoigawa City on July 4 and 5, 2010. These concerts were performed in the now defunct Omi Town for the first timein since 2004 and marked the trio’s 300th performance. On July 4,
the Fureai Trio gave a performance and held a Fureai Market bazaar
at the Omi Cultural Center. Both of these events were sponsored by
A lively scene at the DENKA booth(January 8 – 9, 2011)

A participant tries making a key holderusing DENKA THERMOSHEET OPS

Students listen intently to an explanation given by an employee(Left: Machida Dai-San Elementary School tour held on June 17, 2010;
Right: Machida Dai-Yon Elementary School tour held on October 22, 2010)

the Itoigawa Civic Hall. On July 5, the trio provided musical instruc-

From left, Kei Takahashi,
Legal Department,
Hidetoshi Iwasaki, Investor
Relations & Corporate
Communication Department

tion through the Fureai Program at the town’s Omi and
Yamatogawa elementary schools.
.

The Audience Fully Enjoyed the Musical Performance■Community Exchanges

Hidetoshi Iwasaki
Investor Relations & Corporate Communication Department

Isesaki Plant

The Chiba Plant

The Isesaki Plant holds beautification days twice a year in the sur-

The Chiba Plant held the 8th RC Chiba District Regional Dialogue

Kei Takahashi from the Legal Department and I were in charge ofrounding area. In May 2010, employees worked to clean up nearby

Meeting on February 8, 2011. This event was sponsored by theproviding directions to the concert venue. Despite the cold weather

parks and other areas surrounding the plant.

Japan Chemical Industry Association’s Responsible Care (RC)that day, there was a big turnout for this concert. Beyond listening

Committee and 20 member companies located in the Chiba District.

The Fureai Program gives children an
opportunity to play the violin

Held once every two years, approximately 170 people—including
local community representatives, students, government officials andcompanies—were invited to the dialogue meeting where opinions
on environmental preservation activities were vigorously exchanged.

18

DENKA CSR REPORT 2011

■Lending Our Support to Concerts for People
with Disabilities

to the performance, the audience clapped their hands and tapped
their feet in time with the music. I believe this allowed them to more
fully experience the music.

Having a Renewed Sense of the Incredible Power of MusicIn addition, approximately 80 participants took a tour of the Chiba

On January 15, 2011, the Fureai Trio performed a concert at the

Plant, where DENKA products were showcased and an explanation

Suntory Hall’s Blue Rose concert hall in Akasaka, Tokyo, for people

Kei Takahashi
Legal Departmentof the Company’s environmental responsiveness was presented.

with disabilities. Three DENKA employees assisted with this con-

I was very happy to see all the smiling faces among the concert-cert. The concert was thoroughly enjoyed by all 560 people ingoers, many of whom do not have much opportunity to attend

attendance.

such events due to their disabilities. At the same time, I gained a

The dialogue meeting featured a lecture given by a government

Employees cleaning up a sidewalk near theplant (May 12, 2010)

A Fureai Market being held at theconcert hallofficial on environmental conditions in Chiba Prefecture; theannouncement of environmental preservation activities undertaken

We received many positive comments via questionnaires given

renewed sense of the incredible power of music. This event wasby two district companies; a panel discussion undertaken by fourout to the audience. Examples of these include: “It is difficult formade possible by the cooperation of many people. I would very

companies and representatives of the local community; and a lively

people with disabilities to participate in cultural events. I reallymuch like to see such initiatives continue in the future.

dialogue involving various participants.

DENKA CSR REPORT 2011

19

Initiatives in Society

Students from Miike Technical HighSchool receiving a briefing prior to
beginning the plant tour (June 9, 2010)■Participating in the Fureai Trio Concert HeldEnvironmental Initiatives

Initiatives in Society
Recycling Activities

DENKA Proactively Accepts Waste Materials to Foster theDevelopment of a Global Recycling-Oriented Society
Overview of Recycling System
Wastes and byproducts

Coal ash

Limestone

Foundry sand
Clay

Used tires

Sewage sludge

Waste plastic

Waste oil

DENKA is striving to reduce energy use to contribute to

Fly ashGypsumbyproducts

lower CO2 emissions while developing and promoting

Blast furnace slag

environment-friendly products that can contribute to

SludgeCementRaw materials
Dryer andraw materials
grinder

Incinerator ash

SilicaRotary kiln

Construction soil
Ironmaterials

solar power.

Biomass
boiler for
in-house
power
generation

Scrap woodSlagthe development of renewable energy sources, including

Finishing millpermission to operate a processing business in accordance with

■Cement Plant Recycling System
The waste material recycling business at the Omi Plant’s cement
plant begins with the efficient treatment of byproducts generated

the revised Soil Contamination Countermeasures Act, which went
The Omi Plant’s cement works

into effect in April 2010.

by its in-house operations. To manufacture cement, we currently
accept coal ash produced by thermal power stations as a raw
material. In addition, we receive used tires and waste plastic foruse as fuel sources. In order to facilitate the use of fly ash from theincineration of waste tires and other sources as an ingredient in the
manufacture of every type of cement, the Omi Plant is developinga recycling system that enables the reuse of these waste materials.
In recent years, the Omi Plant has been increasing the amountof carbide produced from sewage sludge and household waste it
accepts from local government bodies. Consequently, the Omi■The Development of a Recycling-Oriented Society
In fiscal 2010, every metric ton of DENKA cement produced used
551 kilograms of recycled materials, the largest proportion recorded to date. DENKA promotes the use of such alternative waste as
scrap wood and plastics, both of which effectively reduce the consumption of fossil fuel. Such actions are contributing to the protection of the global environment from the standpoint of helping toalleviate global warming while fostering the development of a recycling oriented society.

Plant has received high praise for these social contribution efforts.
In addition, the Omi Plant promotes the use of soil displaced fromconstruction sites as a cement raw material. The Omi Plant was

We plan to process chlorine and other waste materials thatwere previously difficult to dispose of by augmenting the chlorine
removal and other related facilities.

the first cement factory located on the Sea of Japan to obtain■Recycled Resources Accepted
Amount processed(thousands of tons)
1,000

In-house sources■Fiscal 2010 Recycled Material by Category

Emissions
intensity

External sources

551

Emissions
intensity(kg/ton)
500

12%

4%

Amount 33%
accepted

854
800

278

400

27%
300

600

576

24%

400

200

200

100

0

0

00

20

01

02

03

04

05

DENKA CSR REPORT 2011

06

07

08

09

854

thousandtons

10 (Fiscal year)■ Sludge■ Fly ash
■ Slag■ Waste oil, and plastic and wood chips■ Other

DENKA CSR REPORT 201121

Environmental Initiatives
デンカについてEnvironmental Activities/Responsible Care Activities■DENKA’s Environmental Activities

Fiscal 2010 Responsible Care Objectives and Achievements（Assessment code: A = Reached target B = Partially missed target C = Missed target）

DENKA engages in environmental preservation mainly throughFiscal 2010
Key Area

ment is underpinned by its commitment to protecting the environ-

Goals

ment and securing safety. Therefore, DENKA strives to incorporate
environmental and safety considerations into all stages of its chem-

Prevent global
warming and conserve energy

ical product’s life cycles, from development and distribution to
usage, final consumption and disposal.

CO2 emissions intensity(from energy sources):
1.05t/tEnergy consumption intensity(fiscal 1990 base): 88%

DENKA systematically engages in environmental improvement andstriving mainly to save energy and reduce PRTR substance emis-

Director and Senior Managing
Executive Officersions and waste generation.
During fiscal 2010, the Company’s energy consumption inten-

Items

Fiscal 2010
ActualFiscal 2011 Fiscal 2012

TargetTargetTarget

0.91

0.88

0.87

0.86

Emissions of PRTR substances(tons)

122

118

90

88

Final waste disposal (tons)

304

577

337

374

sity and reduction in PRTR substance emissions were slightly
below target due to routine repair and maintenance work under-

Reduce waste(zero emissions)taken at the Chiba Plant as well as the increased production ofchloroprene. The amount of final waste disposal was substantiallyreduced, reflecting the positive effect of in-house recycling efforts.
* Details of the EM10 Fourth Medium-Term Environmental Plan are provided under“Initiatives and Final-Year Targets” in the table “Fiscal 2010 Responsible Care
Objectives and Achievements” on page 23.

The main environmental impact totals of all business sites for fiscal 2010 are shown below.

Air emissions
CO2 (from energy sources)
1.34 million t
CO2 (from nonenergy sources) 1.13 million t
SOx
257t
NOx
4,320tSoot and dust
111t
PRTR substances1
90t

Electricity

1.47 billion kWh

PlantsWater discharges
COD

External waste
576,000t

PRTR substances1

1,599t23tSoil discharges
PRTR substances1

9t

Waste generated2

112,000t

Raw materials

Amount recycled
in-house
87,500tThis environmental impact data encompasses DENKA’s
plants and main affiliates within those facilities.

Waste reduction from water removal and incineration 12,800t

Amount recycled
externally
11,400t
Final disposal(as landfill)
304t

Omi Plant: Denal Silane Co., Ltd. / Denak Co., Ltd. / JUZEN Chemical Corporation
Main
affiliates Chiba Plant: Chiba Styrene Monomer Ltd., TOYO STYRENE Co., Ltd., Taiyo Vinyl Corp.

1 PRTR substances: Excluding those from TOYO STYRENE Co., Ltd. and Taiyo Vinyl Corp. inside the Chiba Plant
2 Waste generated: Excluding that from TOYO STYRENE Co., Ltd. inside the Chiba Plant
Explanation of Input▶ Fuels are the sum of all fuels used at each business site,
converted into heavy oil equivalents on a calorie basis. They
include fuels for in-house power plants.

22

DENKA CSR REPORT 2011

Explanation of Output▶ With regard to CO2 emissions from energy sources, thetotal represents emissions from in-house fuel production
and from electricity purchases.
▶ CO2 emissions from nonenergy sources cover mainly that
portion that is derived from raw materials.
▶ COD is the BOD discharge into rivers converted into COD
values.

▶ External waste recycling covers materials converted externally into resources or fuel.
▶ Final disposal refers to material buried on Company premises or at external landfill sites.
▶ Waste reductions are mainly from incineration.

Product safety

483,000kl

Measurement unit glossary
kl = kiloliter
kWh = kilowatt-hourt = metric ton
CO2 = carbon dioxide
SOx = Sulfur oxides
NOx = Nitrogen oxides
COD = Chemical oxide demand
PRTR = Pollutant Release andTransfer Register

Occupational
Safety and health

Products

Fuels

Water
80.43 million t

Outputs

Disasterprevention

Business Activities

26

CO2 emissions intensity (from energy sources):
1.00t/tEnergy consumption intensity (fiscal 1990 base):
86% and below

CIn-house and external reuse:
91,200tIn-house and external reuse:
98,900t

A

Recycle resources
In-house and external landfill:
577t

Recycle resources
In-house and external landfill:
304t
Reached target by promoting recycling both inside and outside theCompany. Will further reduce waste generated and promote recycling.

A

Recycled resource usage intensity=511kg/t
Promoted the use of alternative waste, such as wood scraps andwaste plastics, to reduce the use of fossil fuels

A

20
22

By further enhancing the use of waste andbyproducts per ton of cement (recycled resources usage intensity), we will contribute to thedevelopment of a recycling-oriented society.

A

Website11
12

Continued to supply MSDS and other productsafety information and identify and consider
complying with overseas chemical regulations,
including REACH

Emissions of PRTR substances: 88t
Reinforce the wastewater treatment facility in
the Omi Plant, while promoting the adoption ofsolvent-free adhesives

22
Website09

SOx: 121t
NOx: 3,780t
Soot and dust: 133t
COD (BOD): 564t

Constrain and reduce wastes
Reinforce the wastewater treatment facility at
the Omi Plant while promoting the adoption ofsolvent-free adhesives

22
Promotion of reuseWebsite10
Cut final landfill waste
374t•Comply with the European

Community
relations

InputsC

22
24

Total waste generated: 112,000t
Total waste generated increased due to the enhancement of chloroprene production. Will strive to improve operational process.

Further enhancement of recycled
Use resources effiresource usage intensity fromciently
417kg/t in fiscal 2008

■Input and Output

CO2 emissions intensity: 1.08t/t
Energy consumption intensity (fiscal 1990 base): 91%

Appropriate compliance withchemical substance management policies

Union’s Registration, Evaluation, •Conducted necessary procedures at Group companies, including
overseas affiliates, to acquire registration of compliance with the
Authorization and Restriction of
REACH regulation
Chemical Substances (REACH)•Switched from MSDS (materials safety data sheet) to GHS mainly•Accommodate Globallyin EU countries and China and reviewed labeling systems
Harmonized System ofClassification and Labeling ofChemicals (GHS) in each country

Manage chemical
substances andsuppress emissions

Companywide emissions of PRTR
substances: 118t

Companywide emissions of PRTR substances: 122t
Despite efforts to reduce of emissions 10% year on year at eachplant by promoting the improvement plan, we failed to achieve targets. We will set higher goals and conduct deliberate reductions.

C

22
Website10

Ensure safe transportation•Target a zero accident rate forin-house and off-site logistics•Step up our Safe Transportation
Code of Conduct as a Shipped
Goods Owner•We continued to revise our yellow card system and yellow cards
for containers (labels)•We evaluated and analyzed transportation safety levels and instituted improvements

A

WebsiteFulfill responsibilities as an owner of shipped
11
goods
12

Eliminate occupational accidents

Conduct risk assessments andidentify and eliminate unsafe
facilities and work practices

All business sites continued to conduct risk assessments and identified and addressed unsafe work practices.
Number of incidents of lost worktime due to accidents in Group:
3 (5); accident frequency of 0.57 (1.00)
Number of incidents of lost worktime due to accidents among subcontractors: 0 (3); accident frequency of 0.00 (0.62)
Note: Numbers in parentheses are for fiscal 2009.

A

15

Eliminate occupational accidents through education and safety management systems
Attain zero accidents requiring employees to taketime off

Manage employee
healthMaintain and improve healthHeld a seminar regarding mental health at each plant and conducted continuous follow-ups

A

15

Undertake activities to maintain and improvehealthEliminate major
accidents•There were no major accidents.
•The number of problems impeding operations increased from 5
Eliminate major accidents, notably
to 16.
explosions, fires and large leaks•Based on analysis of previous accidents, we implemented meaof chemical substancessures to prevent recurrences and stepped up preliminary safetyassessments and change management.

A

16

Eliminate major accidents, notably explosions,fires and large leaks of chemical substances, andimprove production stability (in keeping with thecharacteristics of specific plants, target morestable operating conditions, enhance operational
techniques and facilities)

Maintain community trust•We addressed complaints about noise and odors by setting up
response desks at each business site, deploying countermeasures and responding in good faith to complaints to obtain understanding.
•We hosted business site tours and held children’s chemistryclasses, engaged in community dialogue and participated voluntarily in social activities to maintain community trust.

A

18
19

Target ongoing corporate activities that secureand maintain community trust

Continue to engage communities
and build trust

References are available in the Web-based CSR Report reference (http://www.denka.co.jp/responsible/index.htm).

DENKA CSR REPORT 201123

Environmental Initiatives

Energy consumption intensity(with fiscal 1990 as base year)

Conservationcient use of resources and environmental preservation, DENKA is

Evaluation

Total waste generated
104,000tfrom fiscal 2010 to fiscal 2012. With the aim of achieving the effi-

Hitoshi Watanabe

Final-Year Targets

B

Prevent air andwater pollution

carried out its Fourth Medium-Term Environmental Plan “EM10”*

Initiatives andPage

SOx: 257t
NOx: 4,320t
Soot and dust: 111t
COD (BOD): 1,599t[Air]
SOx: Missed target despite a reduction reflecting the installation ofgas turbines
NOx: Reached target due to the decreased production of cement[Water]
COD (BOD): Increased due to stepped up production of chloroprene. Considering the expansion of COD (BOD) removal facilities

SOx: 122t
NOx: 4,220t
Soot and dust: 122t
COD (BOD): 1,114t■Medium-Term Environmental Plan

Achievements

Relevant–

Responsible Care (RC) activities. In fact, the Company’s manage-Environmental
デンカについてInitiatives
CO 2 Emissions and Reduction

Hydroelectric Power Generation

Aiming to Develop and Promote Environment-Friendly Products
That Contribute to the Realization of a Low-Carbon Society

Supplying Electricity in House through Hydroelectric Power
Generation and Thermal Power Generation Using Natural Gas■Reduction of Direct CO2 Emissions (Attributable to■Initiatives to Secure a Stable Electricity Supply

Energy Use)Through the Japan Chemical Industry Association, DENKA partici-■CO2 Emissions Intensity
CO2 emissions intensity (left)（t-CO 2 /t-CaC 2 ）1.6

CO2 emissions intensity index (right)
（%）

100

100

pates in the voluntary action plan of the Nippon Keidanren (Japan

Accounting for 30% of DENKA’s total energy consumption, hydro-

Total generated in-houseelectric power largely contributes to the reduction of CO2 emissions54%

as a clean energy source while helping to secure a stable power

1.47

Business Federation). In addition, the Company participated in agroup charged with establishing targets for the Trial Emissions

1.2

Hydroelectric(including
jointly owned)

supply in the midst of tight electricity demand.

82
1.20

Trading Scheme* that the Japanese government introduced in

75

72

71

1.07

1.05

Electricity
purchased

0.8

50

0.4

25

30%

Total
consumption
1.94 billion
kWh

46%

2009 based on this voluntary action plan. As part of such initiatives, in fiscal 2010 DENKA set its target for CO2 emissions intensi-■ Power Sources in Fiscal 2010(clean)Thermalpower(natural gas)ty** at 1.14 t-CO2/t-CaC2 and strived to achieve this goal. Having
achieved this goal in fiscal 2010, the Company will continue towork to save energy and reduce CO2 emissions.
* Trial Emissions Trading Scheme: Companies that participated in both thetarget-setting group and the voluntary action plan of the Nippon Keidanren
set in-house targets and reduction targets based on their organization’s fiscal 2010 targets, and received verification from the Japanese government
after the activity.

(clean)Thermal power(heavy oil)
0.0

0

90

DENKA does not fall under the category of participants authorized to trade
emission quotas.

■ Reduction of Non-Energy-Derived CO2 Emissions
Calcium carbide is DENKA’s mainstay product and serves as a raw

08

09

10

Energy intensity

Production;
Energy intensity
1.4
1.36
1.32

1.2

1.18

1.33

1.31
1.20

1.20

1.16

material for fertilizer, electronic materials and automobile parts. The
processing of limestone, the key raw material used to produce calcium carbide, generates a large volume of CO2 (non-energy derived

1.0

Target

1.07

1.00
0.92

0.94

0.94
0.90

0.90

0.90

0.8

emissions). Calcium carbide, in turn, can be processed to makeacetylene. If hydrated lime, a post-production byproduct of acety-0.6lene manufacturing, is cycled back into the initial processing of thelimestone to produce calcium carbide, the volume of CO2 generated is significantly reduced. Thus, by recycling hydrated lime,

0.4

Having established hydroelectric power plants during the Taisho

DENKA uses electricity generated by its own hydroelectric powerand early Showa eras (1921–1945), DENKA currently owns six

plants, three thermal power plants and a cement waste heat recov-

hydroelectric power plants along the Himekawa River system andery power plant,* as well as purchased electricity. The in-housefour along the Umikawa River. In addition, DENKA maintains five

power generation ratio is approximately 54% of total electricity use.

hydroelectric power plants jointly established with Hokuriku Electric

At thermal power plants, we have been switching fuel from heavy

Power Company. The total permitted annual output of all theseoil to natural gas in an endeavor to reduce CO2 emissions. In addi-

facilities is approximately 110,000kW. Our oldest hydroelectriction, we strive to make efficient use of energy by adopting cogene-

power plant is over 90 years old. Therefore, it is a pressing issue toration** facilities.

repair and maintain the facility in order to secure clean energy. In* Cement waste heat recovery power plant: A power generation facility using

winter, we check transmission lines by helicopter, while removing

waste heat from cement factories

snow from power generation facilities. Furthermore, over the 10** Cogeneration: A system using waste heat generated from gas turbine
power generation that simultaneously produces steam to enhance the energy efficiency of fuel100th anniversary, we

0.2

have been systematicallyupgrading facilities as we

0.0

90

foundation that will promote the establishment of a next-generation
recycling-oriented society (page 32) in fiscal 2011, DENKA is pro-■Breakdown of Electricity Use by Power Source

years leading up to our

DENKA has drastically cut its CO2 emissions.
Verified as a company working to develop the technological■History of Hydroelectric Power Generation

0.92

0.91

0.90

03

04

05

06

07

08

09

11 (Fiscal

10

year)

(Base year: Fiscal 1990)

Itoigawa

prepare for the next 100
Omigawa

years.

moting operations that aim to reduce non-energy-derived CO2
emissions, backed by a subsidy provided by the Ministry of the

Kajiyashiki

Umikawa

Omi

Hayakawa

Himekawa■CO2 Emissions
Energy derived

Environment. DENKA is considering other methods of reducing
non-energy-derived CO2 emissions.

2%(clean)■Production Volume and Energy Consumption
Intensity Relative to the Fiscal 1990 Level
Production

1%

Oami Power Plant(Fiscalyear)

Cement process
heat-based power

Non-energy derived*

Checking transmission lines by helicopter

8

Emissions(thousands of tons)

7

2,000

■ Educational Activities both Inside and Outside of
the Company
DENKA introduced life cycle assessment (LCA) in 2009 and made

1,750

1,500

1,740

2

1,710

1,490
1,410

1,440
1,340

1,320

1,250

1,240

1,000

13

Targetco.jp/responsible/index.htm).

3

5
6
15

Kitaotari
Kita-otari

500

250

0

06

DENKA CSR REPORT 2011

4
Hiraiwa

750

07

08

09

10

11

(Fiscalyear)* Non-energy derived CO2 emissions are generated from raw materials
processing and waste disposal during the manufacturing process.

24

11

990

970

details, please see page 5 “Development of Environment-Friendly
Products” of the web-version CSR Report (http://www.denka.

Nechi
Kotaki

1,380

1,130

thus lower carbon emissions) when being used by customers. Bying, DENKA expects to help realize a low-carbon society. For

12Targeta list of products that contribute to reductions in energy use (andraising employee awareness and facilitating customer understand-

14

Kubiki-Ono 10
9Oyashirazu
1Large icicles on the Yokokawa Power Plant No. 1 switching station.
Removing icicles, DENKA constantly works to maintain its facilities.

1
2
3
4
5
6
7
8

Omigawa Power Plant (3,300kw)
Kotakigawa Power Plant (4,200kw)
Oami Power Plant (25,100kw)
Otokorogawa Power Plant (8,400kw)
Yokokawa Power Plant No. 1 (10,000kw)
Yokokawa Power Plant No. 2 (16,000kw)
Umikawa Power Plant No. 1 (3,800kw)
Umikawa Power Plant No. 2 (4,700kw)

9 Umikawa Power Plant No. 3 (2,600kw)
10 Umikawa Power Plant No. 4 (900kw)
11 Himekawa Power Plant No. 6 (jointly owned; 26,000kw)
12 Takigami Power Plant (jointly owned; 15,000kw)
13 Nagatsuga Power Plant (jointly owned; 5,000kw)
14 Sasakura Power Plant No. 2 (jointly owned; 10,200kw)
15 Kita-otari Power Plant (jointly owned; 10,700kw)

DENKA CSR REPORT 201125

Environmental Initiatives** CO2 emissions intensity: In order to represent figures in a unified manner,
the CO2 emissions intensity target for each DENKA product is translated into
terms of the Omi Plant’s CO2 emissions volume divided by its calcium carbide production volumes.

21%

Environmental Initiatives
Rationalizing Logistics

Examples of Environment-Friendly Product Development

Promoting Thorough Rationalization in Logistics to
Reduce CO2 Emissions

Developing Environment-Friendly Products fora Broad Range of Industries■Response to the Law Concerning the Rational
Use of Energy■Promotion of Modal Shifts■Environment-Friendly Concrete

Since fiscal 2006, we have been promoting across-the-board

Concrete products emit CO2 when produced. Until now, existing

As a designated shipper, DENKA’s Logistics Project Team is carrying

modal shifts for transporting large cargo lots over long distances. In

technologies could only reduce the CO2 emissions volume, meaningout across-the-board activities, having established the RC Promotion

fiscal 2010, we focused on shortening land transportation distanc-the more concrete used, the more CO2 emitted.

Committee and the Container Cargo Logistics Information Exchange

es. Responding to a significant increase in transport volume, we

The newly developed “environment-friendly concrete” incorpo-

Group, with the aim of improving logistics quality and reducing costs

shifted from railway to box vessels for the transport of cargo fromrates DENKA’s special cement additive “γ-C2S.” The CO2 absorption

while achieving energy savings of more than 1% per year. In accor-

the Omi Plant to Kyushu. For products dispatched from the Omuta

power of this concrete is enhanced by facilitating a chemical reaction

dance with CS13, DENKA reviewed current conditions and opera-

Plant to the Kanto area, we switched from ferries and roll-on, roll-with atmospheric CO2 (carbonation curing). This curing increases thetions at in-plant logistics facilities, while expanding the use of local

off vessels to railway containers. For products dispatched from theamount of CO2 fixed in proportion to the amount of concrete used.

ports for container cargo transportation and thoroughly eliminating

Chiba Plant to from the Kansai area to the west, the order volume

inefficiencies. Also contributing to the optimization of logistics, wefrom major customers largely decreased.

entered into an exclusive contract with a distribution company for the
shipment of products to multiple plants and subcontractors. Similar

As a result, CO2 emissions in fiscal 2010 grew 10 tons com-

effectively reduced to below zero.

Reflecting lower demand for cement in fiscal 2010, the CO2■Promotion of Modal Shifts

emissions volume was down 12,600 tons compared with the fiscal■ Year-on-Year Reductions

tate, which were efficiently shipped. We are thus striving to improve(Fiscal year)

2008

2009

2010

Cargo subject tomodal shifts(1000t-km)+2,830+3,175+968+86

CO2 emission
reductions (t)

+112

+158

+13

(10)

Environment-Friendly Concrete

General Concrete

Emissions halved by reducing
the amount of cement used

the situation by promoting the use of local ports for container cargo

Messagecement-related products using the land transportation.
By horizontally extending our integrated logistics to cover multiple plants and subcontractors while drastically reducing energy

Thermal Power Plant

Cement Factorytransportation and using heavy vehicles for the bulk shipping of

CementCoal Ash

Pursuing efficient energy use = improved quality of logistics
business = cost reduction
Yoshihiro Ishikawa
Leader, Logistics Project Teamfurther reduce CO2 emissions.

■ Energy Saving Status
2006

Reflecting the impact of the Great East

(Fiscal year)
2007

2008

2009

2010

Japan Earthquake, it is anticipated theFive-year
averageTransportation volume864,140 797,452 831,227 618,865 605,609—(1000t-km)
Energy consumption intensity(amounts converted into
0.0223 0.0224 0.0217 0.0240 0.0239―
crude oil equivalent anddivided by cargo volume)
Previous fiscal year
100.5% 97.1% 110.3% 99.6% 101.8%―
CO2 emissions (t-CO2)
51,100 47,500 48,300 39,500 38,500―■ Integrated Transportation of DX Film

Loading cargo onto vehicles(Ofuna Plant)

al scale. Given this, we will go back toparts are temporarily fixed on substrate using such materials as

the basics of providing logistics services

wax. When fixing parts, wax must be melted at a high approximate-for manufacturers, and strive to ensurely 150°C heat, and organic solvents are used to remove wax after-that our business operations flexible inward. As a result of these processes, issues related to safety andthe face of environmental changes inthe environment have been emerged.

order to realize efficient energy use, an approach which should

TEMPLOC is an epoch-making product that hardens quickly

yield improvements in the quality of our logistics business andunder ultraviolet rays and can be removed using warm water. In

reduce costs. In all these activities, we will continue to pursue opti-

addition to the advantages of user safety and environment friendli-

mal logistics.

ness, TEMPLOC also boasts better quality than preexisting procedures as it forms a film that can be easily peeled off without leaving
a residue of glue on parts and substrate surfaces.

mulate operation manuals based on relevant laws and regulations

SOLARLOC is another temporary adhesive and was developed

and focus on employee education. By mapping the distribution

for use in manufacturing silicon wafers for solar batteries. This prod-

flows of main products both in Japan and overseas, we will raise

uct hardens quickly at room temperature and can also be removed

employee awareness of logistics costs. Sorting out problems andwith warm water, drastically shortening the manufacturing process

conducting multilateral simulations from a medium-term perspec-

and improving environment-friendliness. Emphasizing these fea-

tive, we will enhance our logistics improvement measures.

tures, we are expanding sales of SOLARLOC in China, Southeast

Simultaneously, we will assiduously save energy and reduce costs

Asia and Europe in addition to sales in Japan and Taiwan, where

in a step-by-step manner by integrating the transport of products

significant growth is expected for the use in the solar power genera-

as well as raw materials for multiple plants and subcontractors.

tion component field.
Continuing to expand sales in the area of temporary adhesives,

Offloading cargo from vehicles(Hiratsuka Depot)

26

DENKA CSR REPORT 2011

Loading cargo onto a main truck
supply vehicle (Hiratsuka Depot)

Reduce the amount of cement
by using coal ash

Total CO2 Emissions: Below 0kg/
g m3

■Environment-Friendly Temporary Adhesive
In the precision processing of optical and electronics components,

Particularly with regard to logistics safety and quality, we will refor-

Loading cargo onto vehicles(Isesaki Plant)g
Total CO2 Emissions: 200–400kg/m

supply chain will see changes on a glob-

In fiscal 2011, we will reinforce our response to risks.

CementForcibly absorbing CO2
3

use based on reviews of the cement distribution system, we will

Cement Factory

DENKA will strive to develop new applications of these products,

TEMPLOC peels off in a
film

TEMPLOC: A temporary adhesive for machining(for cutting, grinding, polishing and surface
protection)

SOLARLOC is used forthe manufacture of solar
power generationrelated components
SOLARLOC: A temporary adhesive for siliconingots being sliced for use in solar cells andsemiconductors

leveraging their unique characteristics.
DENKA CSR REPORT 201127

Environmental Initiatives

significant drop in the volume of cement, acetic acid and vinyl ace-

Environment-Friendly Concrete Used in Various Power Generation Facilities(Photos provided by the Chugoku Electric Power Co., Inc.)

2007(amounts converted into crude oil equivalent and divided by cargovolume) deteriorated 1.8% a year on average fiscal 2006 due to aeffective use of coal ash, a waste product of such facilities. As aresult, CO2 emissions from the manufacturing of concrete can bepared with the previous fiscal year.

initiatives are being taken at our affiliates both in Japan and overseas.

2006 level to 38,500 tons. DENKA’s energy consumption intensity

Utilizing this property, environment-friendly concrete can absorb
CO2 from the exhaust gas of thermal power plants while making

Initiatives with Customers and Suppliers
デンカについてInformation Management/System Administration

Information Disclosure to Customers

DENKA Will Secure Information Security throughAppropriate Control

We Proactively Disclose Information to Customers with the
Aim of Developing Growth Fields and Markets■Information Control■Growth Field: Photovoltaic Power Generation■Growth Market: Asian Region• PV EXPO 2011

• India Rubber Expo 2011

The DENKA Group Ethics Policy established in 2002 includes a■Management of Information Related to the
Information Systemcode of specific behavior that encompasses guidelines under the

In recent years, the volume of information digitally processed by the

DENKA exhibited in the India Rubber Expo (IRE) 2011 held inheadings the Safe Management of Personal Information andGroup’s information system has been rapidly expanding on the

Chennai, Southern India, presenting DENKA CHLOROPRENE (CR)

Confidential Information Management and Respect for Intellectual

back of drastic advances in IT technologies. Accordingly, it isrubber, DENKA ER and DENKA BLACK. During the three days of

Property Rights, both of which are strictly complied with. As subor-increasingly important to secure our information management sys-

the event from January 19 to 21, 2011, our booth attracted visitors

dinate regulations of these guidelines, DENKA established andtem. DENKA set up the Information System Managementfrom 300 companies in India. We held lectures on CR and ER tech-developed the Personal Privacy Policy and the Regulation for

Guidelines in 2006 and the Information System Work Manual in

nologies during the exhibition and received inquiries from a number

Protecting Information regarding Corporate Secrets, which are thor-

2008 based on the Regulation for Protecting Information regardingof listeners, which revealed high interest in DENKA products.

oughly disseminated through lectures and in-house newsletters.

Corporate Secrets. In cooperation with managers and persons inFurthermore, DENKA strictly manages and respectfully handles
confidential information provided by third parties in accordancecharge at each relevant department, we are appropriately handling
digitized information.

with the DENKA Group Ethics Policy.

■ Structure of Information Management Rules
DENKA Group Ethics Policy

President

Code of specific behavior

Safe Management of Personal Information/
Confidential Information Management andRespect for Intellectual Property Rights

DENKA participated in the Fourth International Photovoltaic Power■ Information Management Structure

Vice President
Director in Charge

Generation Expo “PV EXPO 2011,” Japan’s largest international

Chief Control Officer

exhibition in the photovoltaic power generation field. We exhibited
AssistantChief control officer at eachrelevant department

our SOLARLOC and thermal materials with the aim of further building public recognition.

MessageDuring the three days of the event from March 2 to 4, 2011,
our booth welcomed approximately 400 visitors. Many of those visitors were overseas users and business organizations planning to

Subordinate regulations

Personal Privacy Policy/Regulation for Protecting
Information regarding Corporate Secrets

General administrator at eachrelevant department

the world has in Japanese solar cell technologies.

Industry
Masakazu Minegishi
Organic Chemicals Department,
Chemicals Division
Held annually since 2001, IRE saw arecord-high number of exhibitors andManager

Administrator at each section
or area in charge

visitors in 2011. In pursuit of businessgrowth in burgeoning India, foreign

Information System Management Guideline (established in 2006)

companies are proactively exchanging
information. Amid such circumstances,
China boasted the largest number of
exhibitors, showing a strong presence. Having commenced■Restrictions on Insider Trading
Since the introduction of the surcharge system in 2005, regulations

employees. Also in 2010, in the September issue of our in-house

have been tightened to detect insider trading. As a result, compa-

newsletter we presented a question-and-answer style article basednies that fail to familiarize themselves with retail regulations and in-on questions posed at the lectures and widely promoted compli-

house rules may find themselves accused of insider trading.

ance with regulations.

Understanding this, DENKA held lectures on regulations pertaining

aggressive sales expansion in 2009, DENKA CR now commands amore than 40% share of the Indian market. We will continue to
The venue with a number of visitors

respond to robust demand, while aiming to introduce other products to the market and expand their shares.

Message
We Felt Upward Momentum in the Industry

to insider trading for General Managers and Managers of theto August 2010. A total of 290 participants during this period

Masashi Inazumi
Tapes & Adhesives Department,
Electronic Materials Division

learned the details of regulations on insider trading and DENKA

SOLARLOC is a temporary adhesivereconfirmed the awareness of in-house rules among directors andused when slicing silicon blocks for

Headquarters, Central Research Institute and plants from February

solar cells and semiconductors. Owing
to its characteristics of easy handling atroom temperature and excellent adhesive power, SOLARLOC can improve
workability. At the exhibition, as we
strived to get a picture of market trends and promote our prod-• China International Elevator Exhibition
DENKA presented the HARDLOC high-performance adhesive forthe first time while participating in the 2010 China International
Elevator Exhibition held in Langfang City, Hobei Province, China.
Our booth, located in the parts area, displayed newly developed
products, including demonstrations of a honeycomb-structured
floor and a door panel withan attached reinforcing
board, demonstrating somepossible applications of
DENKA products to visitors.

ucts, we became aware of customers’ expectations regarding
DENKA products. We will accumulate business expertise in Japan
Lecture on insider trading at the Omi Plant(August 31, 2010)

28

DENKA CSR REPORT 2011

An article on insider trading in the September 2010 issue of the in-housenewsletter Gunbai

and Taiwan and then expand sales in China, South Korea andEurope.

430 companies from home and abroad
visited DENKA booth(April 21–24, 2010)
DENKA CSR REPORT 2011

29

Initiatives with
Customers and Suppliers

Management of information related
to information system

General Manager

participate in the solar cell business. It revealed the great interest

Proposal Activities at the Largest Exhibition in India’s Rubber

Initiatives with Customers and Suppliers
デンカについてCollaboration with External Institutions
デンカについてCSR Procurement/Quality AssuranceAward Commendations

DENKA Will Engage in Procurement and Quality Assurance for
Sustainable Growth

Contributing to Industrial Development by Fostering Good
Relationships with External Institutions■CSR Procurement■Quality and Safety Initiatives■Winning the Ceramic Award

In accordance with our “DENKA 100” corporate philosophy, we

In recent years, there has been growing demand for better quality

The Ceramic Society of Japan annually presents the Ceramic■The Central Research Institute Wins the JCIA/
JRCC Special Safety Award

aim to remain a company that creates new value from resources byin the electronics materials field. In order to reinforce quality man-Award to engineers who have contributed to the development of

The Central Research Institute won the newly established JCIA/

fully employing our technological capabilities. To that end, theagement, DENKA established the Quality Assurance Department in

the ceramic industry and related areas of science and technology

JRCC Special Safety Award in fiscal 2010 at the 34th Grand Prix

DENKA Group believes it is indispensable to maintain good rela-

the Electronic Materials Division and the Omuta Plant in April 2010.

over the course of many years. In fiscal 2010, this award was given

Safety Awards, sponsored by the Japan Chemical Industry

tionship with the suppliers that form our supply chains.

Fully aware of risks associated with procuring rare materials,

to Shigeru Tomioka of the Omi Plant’s Inorganic Materials

Association (JCIA) and Japan Responsible Care Council (JRCC).

DENKA’s Purchasing Department, Business Division and plants willLaboratory and Hideto Ishimaru of the Omuta Plant’s No. 1

The award was in recognition of the institutes’ outstanding

work together to secure stable procurement.

Manufacturing Section at an awards ceremony held on Octoberefforts to develop safety measures meeting certain criteria.

15, 2010. Also in attendance were Mr. Tomioka and Mr. Ishimaru’s

Also, the institute was favorably evaluated for having recorded

wives, who have supported their endeavors all these years.

no accident-related work absences for the past 17 years. ThisThe DENKA Group considers its suppliers of raw materials,
machinery and equipment, and contract construction to be valuable partners, and looks forward to attaining sustainable growth inEveryone, from managers to the work staff in the R&D Division,

tandem with them. Therefore, the Group comprehensively takes

Facilities Department and Manufacturing Division is pursuing better

into account quality and sustainable supply as well as costs when

quality in accordance with the basic idea of “No stable production

dealing with suppliers.

procedure, no better quality.”

The Group will sort out these ideas to establish the basic policy
and disclose it.

Electronic Materials
Division

Message
Green Procurement
Masato Mitani
General Manager, Quality Management
Office, Technology Division
DENKA maintains a negative list thatclarifies environmental load substances

conference held on April 22, 2010, which included University of

Message■ Quality and Safety Assurance Structure in theElectronic Materials Field

Purchasing
Department

evaluation was based on an on-site inspection and a safety awards

Working Hard to Guide and Cultivate Young Employees

Tokyo’s professor emeritus Dr. Shozo Tamura.

Engaged in Development
Shigeru Tomioka, Inorganic Materials Laboratory, Omi Plant

Omuta Plant

Since entering DENKA in 1970, I have focused on expanding

Quality Assurance
Department

Quality Assurance
Department

applications of calcium sulphoaluminate clinker for use in the civil

R&D Division

Facility and
Manufacturing
Division

special cement additives. The successful increase in sales ofengineering and construction fields as part of ongoing R&D into
expansive additives, non-shrink grout additives and high-strength
additives was due to the efforts made by older employees to

Messagedeepen the civil engineering and construction knowledge of

Addressing Quality Management for

Deputy General Manager Tetsuya
Shinmura accepting the JCIA/
JRCC Special Safety Award on
behalf of the Central ResearchInstitute

A ceremony held for the 34th GrandPrix Safety Award (May 27, 2010)

younger staff members and to follow up on these lessons through-Electronic Materials-Related Products

out the R&D process. We will

regulations and customers’ voluntary

Mikio Yamaguchi
General Manager, Quality Assurance
Department, Electronic Materials
Divisionmanagement regulations and restricts

Products from the Electronic Materials

the use of substances in the negative

Division are used in such markets aslist in raw materials and production processes with the aim of

automotive electronic components,

eradicating them from the roots up. Upon customer request and inwhere high reliability is required.

light of other necessities, we analyze the content of environmental

Demand for quality, including betterload substances in raw materials and products based on pre-functionality, has been growing year by

scribed methods to secure the quality and safety of products aswell as to promote the reduction of environmental burdens.

categorized under Japanese and international environmental management

use this experience to further
develop special cement additives while continuing to focus
on training younger employees.

Message
Raising Awareness among All Employees Is Vital for
Maintaining Accident-Related Work Absences at Zero

Shigeru Tomioka (left) and his wife
“I would like to sincerely thank my supervisors, senior colleagues andemployees from related departments who fully supported me over the past
40 years.”

Tetsuya Shinmura, Deputy General Manager, Central Research Instituteyear. In response to this, DENKA introduced a new quality assur-

My Deep Sense of Satisfaction from My Involvement in New

its persistent promotion of basic safety activities targeting allance system at the Electronic Materials Division and its related

Product Development Motivates Me to Continue Contributing

employees. Maintaining safe operations depends largely on theoffices. Under this new system, we will strive to reinforce our qual-

to Technological Improvements

capabilities of each staff member. Our safety record is attributable

ity management system and production capabilities to pursue bet-

Hideto Ishimaru, No. 1 Manufacturing Section, Omuta Plant

ter customer satisfaction and enhanced quality competitiveness.

I have been continually engaged in the manufacture of and new■ Materials Safety and Management Flowchart

Company in 1970. In particular, I cannot forget the joy I felt when

2. Raw Materials

5. Outsourced
Processing
and Production

Green Procurement
Purchasing specifications

ManufacturingM
f t i
vendor audits

maintenance of the rate of absence due to work accident at zero is

to ardent efforts to improve training for new and transferred
employees. In addition, creating opportunities for communication
with employees from different departments has helped increasesafety awareness and capabilities throughout the workplace.

helping to develop new products through the painstaking studyof production methods for the acetylene black used in highperformance manganese dry cells. I am very grateful to work in anenvironment that has allowed
me to gain such valuable expe-

1. Development

4. Production

ISO 14001
14001,
Verifysafetyrify raw material safet
ISO 9001 andVerify necessary quality level
Good Manufacturing
Production process design
3. Raw Materials
Practices (GMP)
Outsourced(Maintain and improvematerials production
environmental
ManufacturingM
f t i vendor
dprotection and quality)
audits

6. Disposal

7. Products

8. Logistics

9. Customers

ManagementM
t off
environmentally hazardous
ssubstances in products(Negative List)

Y
Yellowll
cards
dContainer labels

Material safety
data sheets (MSDS)
MSDSplus
AIS

Waste contractor
audits* For detailed information regarding product safety management, please see page 11 of the Web-based CSR Report reference(http://www.denka.co.jp/responsible/index.htm).

30

DENKA CSR REPORT 2011

rience. I would like express mysincere gratitude to all mysenior colleagues and coworkers in relevant departments.
Hideto Ishimaru (left) and his wife
“I believe that I have made a small contribution to the improvement oftechnology used to manufacture acetylene black.”

From left to right:
The Central Research Institute’s Manager of Administration Keiji Shirai,
Deputy General Manager Tetsuya Shinmura and DENKA’s Environment
Preservation Manager Katsuhito Iesaki“We will work together to maintain accident-related work absences at zero.”
DENKA CSR REPORT 201131

Collaboration with
External Institutions

product development for acetylene black since entering the

The major reason for the Central Research Institute’s longstandingCollaboration with External Institutions
デンカについてTo Investors and Shareholders
デンカについてSubsidies/Donations

Consolidated Financial Highlights

A Variety of Activities Supported by Subsidies■Subsidies Offered by
the Ministry of the Environment■Making Charitable Contributions

As part of its activities to reduce environmental burden, DENKA

As the number of people playing sports increases, the number ofactively utilizes a subsidy system established by the Japanesethose who suffer sports-related injuries and disabilities is rising.

Ministry of Environment. Throughout fiscal 2010 and 2011, we
received approval for two subsidies.

(Millions of yen)

• Japan Sports Medicine Foundation

The Japan Sports Medicine Foundation was established to

Fiscal 2006

Fiscal 2007

Fiscal 2008

Fiscal 2009

Fiscal 2010

Net sales

329,262

363,996

334,130

323,875

357,893

Operating income

29,877

29,912

10,302

21,655

24,618

Ordinary income

26,006

24,9183,094

16,88823,052

assist research into the prevention and treatment of such injuries
and thus allow people to enjoy sports in a safe manner. To date, the• Japan’s Voluntary Emissions Trading Scheme (JVETS)Foundation has helped to fund research conducted by the

Net income

15,734

6,660

1,439

10,474

14,355

Under JVETS, the Shibukawa Plant has been recognized as a facil-

Japanese Orthopaedic Society for Sports Medicine (JOSSM) andTotal assets

365,301

375,364

377,912400,407402,046

ity that reduces CO2 emissions thanks to its switch in the fuel it

the Japan Knee Society. Hyaluronic acid preparations produced byuses from A heavy oil to city gas. Approximately 30% of the cost of

DENKA play an important role in the wide array of research con-

Total net assets

164,643

161,870

150,142

160,316

168,182

installing low-carbon equipment was covered by subsidies provid-

ducted by these organizations, including the diagnosis and develop-

Total shareholders’ equity ratio (%)

43.5

41.6

39.1

39.4

41.2

ed through JVETS. In fiscal 2011, the Shibukawa Plant exceeded

ment of optimal treatments for joint and ligament injuries; the repair

Net income per share (yen)

32.03

13.57

2.89

21.33

29.24

its contract conditions under JVETS, achieving a 1,033-ton reduc-of meniscus injuries using medicinal conveyance systems; and thetion in CO2. The Plant aims to sell its excess CO2 emission credits.

creation of exercises to increase muscular strength and conserva-

Net assets per share (yen)323.81

317.91300.60321.46337.35tion treatments for those suffering from knee joint-related illnesses.
• Developing a Technological Foundation That Will Promote the

As a company that supplies pharmaceutical products, DENKA

Establishment of a Next-Generation Recycling-Oriented Society

helps to fund these research activities based on the belief that

In fiscal 2011, the Omuta Plant applied for a subsidy to develop

cooperating in the safe and rapid development of effective medical

technology to recycle hydrated lime, a byproduct of acetylene

treatments is extremely meaningful.

Net sales

Operating income

Ordinary income(billions of yen)(billions of yen)(billions of yen)manufacture, to produce calcium carbide. The Plant was granted a
400

subsidy under a system that fosters the development of a technological foundation that will promote the establishment of a nextgeneration recycling-oriented society. With approximately 50% of
the necessary costs covered by the subsidy, the Omuta Plant ispreparing to engage in the verification testing of this equipment.

30■DENKA Scholarship System

364.0

357.9
334.1

329.3

24.9

24.6

323.9

23.1

300
21.7

20

20

ship is open to high school students seeking admission to collegesor universities in areas where DENKA’s domestic plants are located

30

29.9

26.0

We established the DENKA Scholarship System in fiscal 2006 as away to show our appreciation to the local community. This scholar-

29.9

16.9

200

(Omi, Omuta, Chiba and Shibukawa). The application and selection

Messageprocess is conducted once per year. In addition, scholarship recipi-

Continuing to Actively Develop Environmental Technologies

ents will receive accommodations designated by DENKA and cash

through the Effective Use of Government Subsidies

to assist in the payment of rent during the period of their university

Shuichi Hirai
General Manager, Environmental
Burdens Reduction Promoting Section,
Technology Division
Undertaking R&D and environmental
preservation activities through proactive
participation in government programs is
an important issue from the standpointof contributing to society. In addition, we
have made effective improvements inthese areas by utilizing subsidies and tax incentives that are in linewith the objectives these programs. These subsidies have facilitated the smooth switchover of fuels at the Shibukawa Plant and thedevelopment of technology for recycling the byproduct hydrated
systems, widen the scope of applicable environmental upgrades
and increase the speed of our improvements.

studies, which must be accomplished within the normal number ofyears. Eight students received this scholarship in fiscal 2010.

3.1

0

0

06

07

Hikaru Tahara
Graduate of Itoigawa High School,
Second-year pharmacy student at the
University of Toyama

09

10 (Fiscal year)06

Net income/Net income per share(billions of yen)

(yen)

20

60

07

08

09

10 (Fiscal year)

06

07

08

09

Total assets/
Total shareholders’ equity ratio

Total net assets/
Net assets per share(billions of yen)(billions of yen)

(%)

400

As a second-year student in the

400.4
365.3

375.4

402.0

60

10 (Fiscal year)

(yen)

200

377.9

360
323.81

337.35321.46317.91300.60

University of Toyama’s Faculty of
Pharmaceutical Sciences, I am currently

164.6

15

15.7
14.4

45

300

43.5

41.6

concentrating on studying core subjects, including chemistry, biology and

45

150

161.9

168.2
160.3

270

150.1

41.2
39.4
39.1

32.0

10.5

10

30

200

30

100

180

15

100

15

50

90

2.9

0

0

0

0

08

09 10 (Fiscal year)
Net income per share

29.2

physics. My goal is to pass the national
21.3

exams in order to become a pharmacist. The DENKA Scholarship
System not only helps me in my daily life, it gives me peace of

6.7

5
13.6
1.4

parents allows me to fully focus on my studies. I will always be
grateful for the assistance I have received from DENKA, which has
motivated me to study even harder.

DENKA CSR REPORT 201108

0

Message
Focusing on My Studies Thanks to the Support of Others

mind. Receiving support from a variety of sources in addition to my

32

10

10.3

0

06
07
Net income

06
07
Total assets

08

09 10 (Fiscal year)
Total shareholders’equity ratio

0

06
07
Total net assets

08

09 10 (Fiscal year)
Net assets per share

DENKA CSR REPORT 201133

To Investors andShareholders

lime. In the years ahead, we will continue to effectively use these10100

To Investors and Shareholders
デンカについてBreakdown of Consolidated Net Sales by Principal Business Segment
The percentages of fiscal 2010 consolidated net sales accounted for by each principal business segment andsummaries of their operations are as follows.
Organic Materials

Percentage
of consolidated
net salesin fiscal 2010

Main products: Resin raw materials, synthetic resins, acetate acidproducts, synthetic rubber
In addition to sales price revisions in response to rising raw material
prices, styrene resins, including styrene monomers and ABS resin,
and transparent resins experienced increases in revenue, reflecting
growing demand. The sales volume of CLEAREN, a specialty resin,remained on par with the previous fiscal year. DENKA’s Singaporebased subsidiary, Denka Singapore Pte. Ltd., recorded a rise in revenue owing to firm sales of polystyrene resin and other products.
Chloroprene rubber experienced an upswing in revenue due tohigher sales volume following aggressive marketing activities primarily
in China and the rest of Asia.

43.7%

Inorganic Materials
Main products: Fertilizers, inorganic chemicals, cement, special
cement additives
The sales volume and net sales of fertilizers, fire-resistant materials
and steel materials were the same as the previous fiscal year.
However, a decrease in the sales volume of cement led to a reductionof revenue because of sluggish public investment and private-sector
demand. Special cement additives recorded growth in revenue thanks
to a rise in the sales volume of DENKA NATMIC, a quick-setting agent
for sprayed concrete linings used in the New Austrian Tunnelling
Method (NATM).

Percentage
of consolidated
net salesin fiscal 2010

13.6%

Main products: Electronic materials, electronic packaging,
functional ceramics, adhesives
Electronic circuit substrates enjoyed higher revenue, owing toincreased sales volume related to electric trains and industrial equipment. Functional ceramics (including spherical fused filler for semiconductor sealant fillers) and electronic packaging (including theelectronic components and semiconductor transportation materials
DENKA THERMOSHEET EC and CLEAREN SHEET C) experienced aboost in revenue thanks to higher sales volumes on the back of market expansion in emerging countries. Rises in the sales volumes of
ALONBRIGHT, a SiAlON Phosphor used in LEDs, and the highly functional adhesive HARDLOC led to an increase in revenue.

Percentage
of consolidated
net salesin fiscal 2010

13.1%

Functional Materials and Plastics

of consolidated
net salesin fiscal 2010

We constantly reinforce our unique technologies to facilitate further
improvements to our high-quality products. At the same, we focus ondeveloping specialized, highly functional product lineups in the growing
peripheral technology field, which is rooted in existing businesses; strive
to rapidly meet market demands that emphasize next-generation product development; and work to position our R&D operations with the aimof achieving the early commercialization of products.
In fiscal 2010, we allocated ¥9,819 million to R&D operations,which employed 617 researchers. During the consolidated fiscal year
under review, we had 204 outstanding applications in Japan and registered 328 patents (including for utility models) domestically.
The following is an explanation of each business segment’s
research objectives, main concerns and successes in fiscal 2010.

■Organic Materials
In the styrene-based functional resin segment, we are promoting
research with the goal of further differentiating and increasing the functionality of these products. To this end, we are developing and reinforcing production technologies for such new product grades as shrink
materials, transparent resins and thermal resins.
In addition, we aim to expand our business in the organic chemicals segment, including in overseas markets. Amid these efforts, we aredeveloping new processes and product grades based on facility
upgrade plans to enhance our competitive edge, particularly withregard to increasing our global market share of chloroprene rubber. We
are also conducting research to increase the performance of acetylene
black, which has to date been used as a lithium-ion secondary battery
conductivity agent for commercial use. The aim of such research is toexpand our business operations in the area of large high-performancebatteries, including for car-mounted applications, an area that is
expected to grow.

■Inorganic Materials

Electronic Materials

20.4% Percentage

Research and Development Activities■Electronic Materials
In Electronic Materials, we focus on developing product lineups concentrated particularly in the LED and power device segments. In the
LED segment, we received a basic patent license for SiAlON Phosphor,a material owned by the nongovernmental organization, National
Institute for Materials Science (NIMS). Utilizing synthesis technologies■ Research and Development Organization■Functional Materials and Plastics
In polymer processing products for industrial materials, packaging andconstruction materials, we are taking advantage of our capabilities inadhesive coating, film and sheet and profile extrusion technologies tojoin hands with Group companies and drive expansion. In particular, weare focusing research on upgrading production technology and capabilities for weather-resistant films for solar cells and synthetic fibers.
In pharmaceutical products, we are improving production technology and developing new applications for fermented hyaluronan, which
improves joint function. DENKA SEIKEN Co., Ltd., is developing highquality vaccines while developing bacteriological diagnostic reagents todetect infectious diseases and viruses, clinical chemistry diagnostic
reagents and immunochemistry diagnostic reagents that are vital for
health management.

■Other Businesses
Denka Engineering Co., Ltd. designs and installs industrial equipment.
Its R&D is focusing on more efficient pneumatic transfer equipment for
powders and wastewater treatment facilities.

■Next-Generation Product Development
We are focused on the development of next-generation products in theenergy and pharmaceuticals fields. Particularly in the energy field, weare concentrating on improving the conductivity of lithium-ion secondary batteries; incorporating our accumulated experience in the development of acetylene black (which has already been commercialized) into
this field; and obtaining and fostering the cooperation of other companies and research institutes regarding R&D into new materials for use inlithium-ion secondary batteries.

Central Research Institute

Phosphor Research Dept.
New Materials Research Dept.
Biochemistry Research Dept.
Material Characterization & Analysis Dept.

Omi Plant

Organic Materials Research Laboratory
Inorganic Materials Research Laboratory
Production Technology Section

President
Omuta Plant
Person in overall charge of
research and development

Person in overall chargeof technologies

Ceramic Research Laboratory
Production Technology Section

Chiba Plant

High Molecular Laboratory No. 1
High Molecular Laboratory No. 2

Research andDevelopment Dept.

Production Technology Section

Technology Division
Shibukawa Plant

Electronic Materials Laboratory

Isesaki Plant

High Molecular Processing Laboratory*The percentage of net sales in the Others business segment stood at 9.2%
*For more information on each business segments’ main products, please refer to DENKA CITY on pages 6 and 7.

34

DENKA CSR REPORT 2011

DENKA CSR REPORT 201135

To Investors andShareholders

Main products: Food packaging, construction materials, industrial
materials and pharmaceuticals
Both the sales volumes and net sales of plastic rain gutters and agricultural- and construction-use corrugated piping were steady. Higher
revenue recorded for TOYOKALON synthetic wig fibers was buoyedby robust exports to Africa. Revenue also rose for the weather-resistant, fluorine-alloy film DX FILM due increased production and growthin sales volume. Sales of food packaging sheets were firm. In addition, sales of products made from food packaging sheets by theCompany’s subsidiary, DENKA Polymer Co., Ltd., were brisk.
In pharmaceuticals, the sales volume of high-molecular sodium
hyaluronate preparation, a product that improves joint function, fell
year on year, following the relocation of production to a new plant.
Sales of influenza vaccines and test kits manufactured by DENKA
SEIKEN Co., Ltd. remained at average levels during the fiscal year
under review.

In special cement additives, DENKA is seeking to further differentiate
itself by focusing on the maintenance and repair market and ultra-highstrength, high-durability concrete products, notably ultra-high strength
fiber-reinforced concrete. In addition, we promote the developmentof products that reduce environmental burden while proposing newtechnologies that include products for overseas expansion. In fertilizers
and inorganic products, we are conducting R&D to strengthen
our operations.

used for our nitride-type ceramics, we have commercialized SiAlON
Phosphor for a wider range of applications, including for white LEDs for
LCD TV backlights. Aiming to make SiAlON Phosphor a de facto standard for white LEDs, we are currently undertaking research to increase
the high-performance features of fluorescent materials while focusing
on the development of new fluorescent materials for LCD TV backlights.
In addition, we are promoting the use of fluorescent materials in LED
lighting, an area that is expected to grow in the future.
In the area of tape adhesives, we are expanding practical applications, particularly in the area of temporary fixing adhesives used in thehigh-precision processing of electronic materials and components.
Moreover, we are promoting the market development of newly developed adhesives used in solar cell silicon wafer processing. In electronic
packaging, we have focused on developing new products related totapes for transporting electronic components and process tape for
manufacturing semiconductors. In functional ceramics, we continued topursue higher performance in spherical fused silica for semiconductor
sealants, spherical alumina for thermal materials and boron nitrate (BN).

To Investors and Shareholders
デンカについてCommunications with Shareholders and Investors

Striving to Maintain Good Relationships with
Shareholders and Investors■Holding Various Types of Briefings■Holding Briefings for Individual Investors
Briefing on Products inthe Electronic Materials Business

Briefings for Individual Investors in Nagoya

takes a wide variety of investor relations activities with the aim of

DENKA held a corporate briefing for individual investors at thein LED backlights for LCD televisions and the applications ofmaintaining effective communications with shareholders and inves-

On June 16, 2010, we held a briefing regarding electronic materials

Nagoya head office of Tokai Tokyo Securities Co., Ltd. on July 10,

DENKA products in LED light components.

tors. Along with results briefings convened in tandem with financial

and business-related products for analysts, institutional investors

2010. This is the third time that this briefing has been held in

results announcements, we hold briefings for individual investors inand the media. This was our first attempt at holding a briefing solely

Nagoya, and the appeal of the city drew over 100 participants.

important locations throughout Japan, respond to coverage of ourabout our initiatives in the electronic materials business. A total ofDuring the briefing, we used diagrams and photos to provide abusiness performance by analysts and institutional investors and80 people attended the morning and afternoon briefings. Market

detailed and easy-to-understand overview of the Company as wellundertake plant tours. Through these activities, DENKA is working

interest has been rising in light of the increasing number of chemical

as an explanation of the limestone mines and hydroelectric power

to showcase its products while actively promoting the greater

manufacturers that have entered the electronic materials businessplants used by the Omi Plant (which has been producing calcium

understanding of its business operations.

in recent years. Against this backdrop, we introduced distinctive

carbide since the DENKA’s founding) and such key products as

new products, including SiAlON Phosphor and the high-functioning

chloroprene rubber, a product that ultimately derives from limestone.

adhesives TEMPLOC and SOLARLOC.

In addition to our core businesses, we showcased such LED prod-

In addition to the timely disclosure of information, DENKA under-

Results Briefings
DENKA holds results briefings for analysts and institutional inves-ucts as florescent materials, which are becoming increasingly spe-

tors. A results briefing for the fiscal year ended March 31, 2011 wascialized; electronic materials business’ product lines, including

held on May 10, 2011, the same day that financial results werecarrier tape, fused silicon filler and radiation substrates; macromo-

announced. More than 130 analysts and institutional investors

lecular sodium hyaluronate preparation, which improves joint func-

attended this briefing.

tion; and influenza-related pharmaceuticals offered by DENKA

During the briefing, we undertook a PowerPoint presentation toMoreover, we provided details of the uses of SiAlON Phosphor

More than 100 individual investors participated in the individual investor
briefing in Nagoya

SEIKEN Co., Ltd.

explain such topics as the Company’s fiscal 2010 financial results,
performance forecasts and management plans. Following the briefing, we convened a joint press conference for reporters who cover

Briefings for Individual Investors in Niigata

the chemical industry. During the Q&A session, we answered vari-More than 100 people participated in a briefing for individual inves-

ous reporter questions about key products and future trends intors held in Niigata City on September 16, 2010. During the briefing,
we provided explanations on performance trends, DENKA’s Asia-

growth areas.

The TEMPLOC abrasion test captured the attention of many of the guests

Plant Tours for Analysts
On July 9, 2010, we invited eight analysts and institutional investors

A Survey of Individual Investors
Attending the Niigata Briefing
4.1%

Knowledge of DENKA prior to
the briefing

centered overseas sales promotion strategies, and performanceenhancement strategies in anticipation of the Company’s centennial
41.7%

based on integrating the growing processing business field with thecore materials business.

54.2%

who focus on the chemical sector to take a tour of the Omuta■Familiar with the Company’sbusiness operations■Knew the Company’s name■Completely unfamiliar with
the Company

41.7%
54.2%
4.1%

Plant. The Deputy General Manager Masaharu Suzuki provided an
overview of the Omuta Plant that focused on its long history as

Impression of DENKA as an investment
target among current investors

DENKA’s founding production facility as well as on the technologies
it has developed and their use in the Company’s characteristic

40.0%

product lineups. In addition, guests were given a tour of plant facili-

60.0%

ties that produce fused silica (which is used to make ceramic products), advanced nano products (ANP) and fluorescent materials.
The fiscal 2010 results briefing (May 10, 2011)

These products are DENKA’s core electronic materials. Our growth
products caught the attention of the guests, who asked managers■Will increase investmentin the Company■Will maintain investmentin the Company
at the current level■Will consider selling all
Company shares

40.0%
60.0%
0.0%

Impression of DENKA as an investment
target among those who have yet to invest

at each tour stop various questions. Afterward, a lively Q&A session
was held in the plant office.

25.0%
Despite inclement weather, more than 100 people were in attendance at thebriefing held in Niigata City

75.0%

■Definitely will invest in
the Company■Will consider investing in
the Company■Definitely will not invest in
the Company

25.0%
75.0%
0.0%

15.3%
Joint press conference (May 10, 2011)

Tour participants observing the ANP plant’s inspection process

78.0%

To Investors andShareholders

6.7%
Impression of DENKA following
the briefing■Better than expected■Same as expected■Worse than expected

6.7%
78.0%
15.3%

Looking ahead, we will promote active communication with investors
and shareholders by taking advantage of opportunities such as theseto create an ever larger base of DENKA fans.

36

DENKA CSR REPORT 2011

DENKA CSR REPORT 201137

To Investors and Shareholders
デンカについてThird-Party Opinion
デンカについてCompany Information/Directors/Investor Information

Tamio Yamaguchi, Junkan Workers Club NPO■ Corporate Data

■ Board of Directors(as of March 31, 2011)

Established:

May 1, 1915

Paid-in capital:¥36,998,436,962(as of June 22, 2011)

Directors, Corporate Auditors and Executive Officers
Shinsuke Yoshitaka....... President and Representative Director, Chief

Employees: 4,768 (consolidated) and 2,739 (non-consolidated)

Executive Officer

Directory

Tetsuro Maeda.............. Representative Director, Chief Operating officer● Head Office:Hitoshi Watanabe ......... Representative Director, Senior Managing
Executive Officer

Nihonbashi Mitsui Tower, 1-1, Nihonbashi Muromachi
2-chome, Chuo-ku, Tokyo 103-8338, Japan

Nobuyoshi Sakuma ...... Director, Senior Managing Executive Officer

Tel: +81-3-5290-5055
Kenichi Ono .................. Director, Managing Executive Officer● Branches
Osaka, Nagoya, Fukuoka, Niigata, Hokuriku (Toyama),

Daiichiro Uematsu ........ Director, Managing Executive Officer

Sapporo and Tohoku (Sendai)

Mitsukuni Ayabe ........... Director, Managing Executive Officer● Sales Offices
Nagano, Gunma, Hiroshima, Shikoku (Takamatsu), Akita●Overseas Sales OfficeTaiwan (Taipei)

Kozo Tanaka................. Outside Director
Tadashi Hashimoto ....... Outside Director
Tatsuhiro Aoyagi ........... Senior Executive Officer● Plants

Shotaro Fujii ................. Senior Executive Officer

Omi (Itoigawa Niigata), Omuta, Chiba (Ichihara, Chiba),

Shinji Sugiyama ............ Senior Executive Officer

Shibukawa, Ofuna (Kamakura, Kanagawa) and Isesaki

Shohei Tamaki .............. Senior Executive Officer● Overseas Plants

Hideyuki Udagawa........ Senior Executive Officer

China (Suzhou), Singapore (Seraya, Merbau, Tuas)

Norihiro Shimizu ........... Senior Executive Officer● Research Institutes

Manabu Yamamoto ..... Senior Executive Officer

Central Research Institute (Machida, Tokyo)
Toshiharu Kanou ........... Executive Officer

Major Affiliates

Kazuyuki Koyama ......... Executive Officer

DENKA Polymer Co., Ltd. (Koto-ku, Tokyo)

Akihiko Okuda .............. Executive Officer

DENKA SEIKEN Co., Ltd. (Chuo-ku, Tokyo)

Sanshiro Matsushita ..... Executive Officer

CRK Corporation (Takasaki, Gunma)

Kenji Nakano ................ Executive Officer

Hinode Kagaku Kogyo (Maizuru Kyoto)

Masaharu Suzuki .......... Executive Officer

DENKA Azumin Co., Ltd. (Hanamaki, Iwate)

Hideo Oishi ................... Standing Corporate Auditor
Jiro Hiroe ...................... Standing Corporate Auditor

Overseas Subsidiaries
New York, Düsseldorf, Singapore, Shanghai, Suzhou, Hong Kong

Toshiaki Tada ................ Outside Corporate Auditor

and Seoul

Tsunehiro Sasanami...... Outside Corporate Auditor■ Shareholder Information■ A CSR Report That Reflects Everybody’s Efforts
I wrote this third-party opinion after participating in discussions withthe director and managing executive officer, Mitsukuni Ayabe, as
well as supervisors from each department. During these discussions, Mr. Ayabe and others strongly impressed upon me their forward-looking stance towards DENKA’s CSR activities and its CSR
report. In particular, I made 74 editing recommendations in the firstdraft. DENKA organized these recommendations into three categories: fundamental CSR concepts, reflections on the 2011 edition andefforts to address issues from fiscal 2011 onward. Incorporating myrecommendations in this manner impressed me greatly. DENKA’s
responses to my advice have influenced various aspects of their
CSR activities, which I sincerely hope encourages a sincere engagement with stakeholders. In addition, the CSR Report 2011 contains
numerous executive and employee comments, giving the impressionthat all personnel actively participated in the drafting of the report.
The content of the CSR Report 2011 is far more persuasive
than that of the previous year. I believe this is due to the citing ofspecific examples rather than simply relying on general explanations, describing causes of various issues and providing background on actions being undertaken by DENKA. I would like to see
the strong awareness of the “check, act” aspects of the PDCA cycle
conveyed in this report to be directly linked to improvements in the
Company’s CSR activities as well as future reports. The 2011 edition consists of a booklet and online form to help increase the number of people who have access to this information. However, I havesome doubts as to whether DENKA can carry out to the letter its
editorial policy of posting on its corporate website “minor changes
to in-house systems and activities conducted in a limited scope ofoperations.” Accomplishing such actions requires a full understanding of this editorial policy. Accordingly, I believe that DENKA should
follow a policy that prevents gaps in understanding from forming
while making efforts to appropriately categorize relevant information.
The CSR Report 2011 provides information on the Company’s
financial status. Both financial and non-financial reporting is essential for promoting the understanding of a business. For this reason,

integrated CSR and annual reports are increasing not only inEurope but in Japan as well. In addition, the International Integrated
Reporting Committee (IIRC) was established in August 2010, and
new ideas on integrated reports to be outlined in the 4th edition of
GRI guidelines are expected to be announced in 2013.
Consequently, I expect such actions to facilitate the further development of DENKA’s CSR reports as integrated reports that feature
more comprehensive content.
DENKA established the CSR Promoting Department in 2007
and has been steadily advancing its CSR initiatives since then. The
CSR Report 2011 has for the first time included CSR Activities’
Target Management for each stakeholder. This explanation ofissues and targets is a powerful engine that will drive theCompany’s CSR activities forward. I believe that DENKA willaddress the issue of how to raise awareness of and implement
CSR activities among individual employees. To this end, DENKA ise x p a n d i n g G o o d C o m p a n y P ro g r a m ( G C P ) a c t i v i t i e sCompanywide. Although there is no information available beyond
that which has been included in the CSR Report 2011, I believe that
GCP and CSR activities are very similar. Accordingly, the issue ofraising awareness and implementing CSR can perhaps be overcome by further stepping up GCP initiatives.
Through the verification of individual CSR activities, it must be
pointed out that reporting on labor-related CSR has been rather
weak. When CSR reports were first introduced in Japan, reportingon labor-related CSR activities was extremely rare. Despite this, various reader questionnaires indicated that there is a strong desire forreporting on this subject. Reflecting this point of view, DENKA willtake active steps to report on its efforts to improve labor practices.
*Junkan Workers Club is a citizens group that examines ways to foster the harmonious coexistence of society and natural ecosystems from a global perspective tobenefit future generations. In addition, this organization strives to conduct
research, provide assistance and undertake measures that will create a recycling
society in tandem with the members of the local community, business and governments.
URL: http://www.nord-ise.com/junkan/ (Japanese only)(as of March 31, 2011)

Total number of authorized shares

1,584,070,000

Shares of common stock issued

505,818,645

Number of shareholders

41,886

Major Shareholders
Number of Percentage
shares held of shares(thousands) held (%)

Response to the Third-Party Opinion

Shareholder Composition (Thousand shares)
Other domestic corporations
31,102（6.14%）
Individuals and others
114,396（22.61%）

Securities companies
10,450（2.06%）
Financial institutions
197,908（39.12%）

Foreign corporations andindividuals
151,960（30.04%）

Thank you very much for reading the CSR Report 2011. The drafting of
this year’s report coincided with our efforts to provide relief assistancefollowing the Great East Japan Earthquake. This disaster served as anopportunity to reexamine our social contribution activities. We havebeen providing long-term assistance through a program that supports
volunteer activities in disaster-stricken areas. We plan to provide
information on the initiatives of the newly established Disaster
Assistance System in next year’s CSR report. We sincerely wish for theearliest possible restoration of the livelihoods of those residing indisaster-affected areas.
In editing this year’s report, we focused on two particular points. The
first was the page layout, which we completely changed to reflect our
CSR activities for each category of stakeholder, making the report easierto read. In combination with this, we moved specific and specialized
information, including items related to corporate governance andspecified data on environmental performance, to the Company’s website.

Turning to the second point of focus, we reorganized and enhanced
information in areas where our reporting has so far been insufficient.
Specific examples include taking steps to augment the reporting ofdetails on DENKA’s newly improved environment-friendly products.
Looking toward its centennial in 2015, DENKA is currently
promoting various measures to fulfill its aims for the next century. We will
move forward with CSR activities from a long-term view based on theopinions of all stakeholders as well as those of Mr. Yamaguchi. We arevery pleased to receive the candid thoughts and ideas of readersregarding our CSR activities. We look forward to your guidance andsupport in the years ahead.
September 2011
Mitsukuni Ayabe
Director, Managing Executive Officer
In charge of CSR Promoting Department

Japan Trustee Services Bank, Ltd. (Trust Account)

35,016

6.92

The Master Trust Bank of Japan, Ltd.
(Trust Account)

34,907

6.90

National Mutual Insurance Federation ofAgricultural Cooperatives

15,965

3.15

Trust & Custody Services Bank, Ltd., as trustee forMizuho Bank Ltd. Retirement Benefit Trust
Account re-entrusted by Mizuho Trust andBanking Co., Ltd.

15,275

3.01

DENKI KAGAKU KOGYO KABUSHIKI KAISHA

14,867

2.93

Japan Trustee Services Bank, Ltd. (Trust Account 9)

14,777

2.92

Mitsui Life Insurance, Co., Ltd.

11,9082.35

Government of Singapore Investment Corporation
Pte Ltd.

9,302

1.83

JPMorgan Chase Bank, N.A., 385078

7,662

1.51

■ For More Information

The Nomura Trust and Banking Co., Ltd.

7,362

1.45

Mitsui Sumitomo Insurance Co., Ltd.

6,916

1.36

CSR Promoting Department DENKI KAGAKU KOGYO KABUSHIKI KAISHATEL. +81-3-5290-5070 FAX. +81-3-5290-5095
Nihonbashi-Mitsui Tower, 1-1, Nihonbashi-Muromachi 2-chome, Chuo-ku, Tokyo 103-8338, JAPANhttp://www.denka.co.jp

38

DENKA CSR REPORT 2011

Shareholder Composition by Number of Shares Held (persons)Less than 1,000 shares
10,029（23.94%）

10,000 shares or more
2,340（5.58%）
5,000 to 9,999 shares
3,144（7.50%）

1,000 to 4,999 shares
26,373（62.96%）

DENKA CSR REPORT 2011399