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

Toyama Prefecture was ranked second in a 2011 survey of the “happiest” places tolive in Japan (conducted by Hosei University), and is widely considered to be one of
the most livable prefectures in the country. The prefecture is commonly referred toas the “Home of Manyo” after the poet Otomo no Yakamochi, an 8th century
statesman-poet who famously compiled the poetry collection “Manyo-shu(Anthology of Myriad Leaves).” The founder of Takaoka was Toshinaga Maeda, a16th century samurai lord, and the area has been known for its unique Takaoka

Aerial view of the Takaoka Plant

copperware and lacquerware. Along with its arts, the city has been the center of athriving commercial area in the Hokuriku District along the Sea of Japan.
The Takaoka Plant is situated along the Oyabe River, which runs north-south through the city. The plant wasestablished in 1956 to manufacture polyvinyl chloride resins and expanded as the mass production site for theproduct over a half century until the company exited the business in 2008. During that time, the plant began
producing such current mainstay products as hydrogenated nitrile rubber Zetpol ®, semiconductors etching gas
ZEORORA®, and the organic coating isulation material ZEOCOAT ® for electric devices. The plant also became
home to the Precision Optics Laboratory and a medical laboratory, establishing itself as the center of cutting-edge
research at ZEON.
The plant is adjacent to a residential community and strives to ensure the security of the local community throughdaily safety-assurance activities and regular emergency-preparedness training. At the National Industrial Safety andHealth Convention held in Toyama Prefecture in 2012, ZEON was recognized for its attitude to safety efforts and theresults it has achieved, and subsequently received a letter of appreciation from the Japan Industrial Safety & Health
Association.
In 2013, the plant turns 57 years of age, but it is still well in its prime and all employees continue to strive towards
excellence with the spirit that the future of ZEON will be born in Takaoka. The plant will continue to listen carefully tothe needs of the local community to ensure the sustainment of an environment rich in harmony and co-prosperity.

The Takaoka Plant has evolved from a mass producer of polyvinyl chloride resins to an R&D-style plant focused on
the development of cutting-edge technologies. The fact remains, however, that a quiet residential community sits
just a step outside the plant gate. With this in mind, ZEON takes into consideration the possible impact of new
products tests and newly introduced product materials on the local community from the R&D phase of productdevelopment, as it has done with the manufacturing of its current products. Each and every employee of the plantunderstands the CSR Policy, and based on this policy they strive to ensure ZEON has a reason for being from theperspective of the local community and can continue to make contributions to that community and society as awhole.

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1. Reducing toxic chemical emissions
The plant terminated the manufacture of polyvinyl chloride resins in March 2008, and therefore the amount ofemissions and transfer of PRTR *1-regulated substances declined in fiscal 2008 to less than one-tenth the amount of
the previous year. As part of the initiative to achieve zero emissions *2, the plant has newly installed equipment tocollect organic solvents used in the manufacturing process and plans to reduce the amount used in stages goingforward.
*1 Pollutant Release and Transfer Register
A database of hazardous chemical substances released into the environment and transferred off-site in waste. It provides the public with important information such as where andhow much pollutants are being emitted and transferred.
*2 Zero emissions
The establishment of systems that discharge no emissions into the natural world, and the fundamental idea behind such establishment.

Substances subject to PRTR law

2. Reducing industrial waste
In fiscal 2011, the Takaoka Plant achieved zero emissions of industrial waste by recycling all of the waste plastics,
rubber, and sludge emitted from wastewater processing facilities, which were previously disposed of at external
landfills. In fiscal 2012, though the amount and type of industrial waste are expected to change as the plant begins
operation of new facilities and conducts new testing, the plant will study new ways to achieve 100% recycling andmaintain zero landfill waste.

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Amount of Waste to Landfill

3. Reducing air and water pollution
Atmospheric emission from the plant's boiler, which uses heavy fuel oil A *1, is one of the environmental issues theplant has been dealing with. Until fiscal 2011, the plant has controlled boiler emissions by creating appropriate
operating conditions collectively with steam emissions inside the plant. From fiscal 2011, however, the plant has
been moving forward with plans to switch from heavy fuel oil A to liquefied natural gas (LNG) *2, and is aiming toreduce CO2 in the near future.
*1 Heavy fuel oil A
A heavy oil classified as type 1 heavy viscosity under JIS standards.
*2 LNG
Liquefied natural gas. Emits less CO 2 than many other fossil fuels when combusted and therefore is seen as a more environmentally friendly fuel.

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

SOX and NOX emissions

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

4. Saving resources and energy
The plant takes conservation measures through meticulous efforts to efficiently use energy, including theminimization of steam used in drying rubber. Due to concerns in fiscal 2012, as in the previous year, concerning
electric power shortages during the summer months, the Takaoka Plant leveled-out electricity consumption byshifting the operation of high electricity usage equipment to earlier, off-peak hours. The plant plans to enhanceenergy efficiency even further by involving all employees in conservation efforts.

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Total amount of energy and Unit energy consumption index

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

Industrial waste

Atmosphericemissions

FY2008FY2009FY2010FY2011FY2012

Vinyl chloride monomer consumption (tons)

0.0

0.0

0.0

0.0

0.0

Vinyl chloride monomer emissions (tons)

0.0

0.0

0.0

0.0

0.0

Consumption (tons)

116

114

210

223

125

Amount emitted (tons)
Amount generated (before volume reduction)(tons)
Amount generated (after volume reduction)(tons)
Amount sent to landfill (tons)

0.1

0.1

0.2

0.2

0.1

3,199

2,130

3,458

4,730

4,882

764

388

671

529

535

312

129

174

0.0

3.4

CO2 emissions (tons)

20,981

17,817

24,20820,132

23,469SOx emissions (tons)

14

8.7

7.0

6.8

9.5

17

19

14

15

19

4,141

3,183

3,732

3,808

4,052

4,284

3,516

3,050

3,398

4,408

COD emissions (tons)

12

12

9.2

13

14

Total phosphorus discharge (tons)

0.9

0.4

0.2

0.7

0.5

Total nitrogen discharge (tons)

23

19

10

16

19

Total consumption (crude oil equivalent, kL)

8,465

8,112

9,750

8,994

8,661

Unit consumption index (1990 = 100)

102%

93%

94%

96%

103%

4,337

4,523

5,419

4,866

4,295

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

EnergyProduction of PDR equivalent (tons)-5-FY2013 CSR Website CSR > Site Reports > Worksites > Takaoka Plant

To support the realization of ZEON's Mid-Term Management Plan, SZ-20, and the enterprise blueprint for 2020,“ZEON creates the future today through the power of chemistry,” the Takaoka Plant is aiming to achieve a 100%
yield rate*. To achieve this goal, the plant will rely on science to analyze and visualize the underlying causes ofquality anomalies as well as to devise measures to address the problems.
* Yield rate:
The percentage of products rolling off the production line that pass quality inspections. A 100% yield rate means that no def ective products were produced.

VOICE Stabilizing processes starts with visualizing processes quantitatively
Chemical companies rely on science to perform work. We abide by the following
policies in order to stabilize the manufacturing processes and deliver products withconsistent quality.
1.

We analyze and visualize manufacturing technologies quantitatively based on
accepted scientific standards.

2.

We determine management values and ranges and standardize work processes
based on accepted scientific standards after a discussion of various quantitative

Hiroshi Fujisawa, Corporate Officer andTakaoka Plant Managerdata.
3.

We aim to realize and sustain a 100% yield rate by using the Quality Assurance Conference as the primaryorganization for quality enhancement measures, along with management reviews of quality, technology, andsafety by various committees.

4.

We develop new manufacturing technology and incorporate it into our products to achieve a 100% yield rate
immediately after product commercialization by building deep bonds between the R&D organizations and theplant from the product development stage.
Based on the above policies, we will ensure that we operate a stable and safe plant.

1. Contributing to the community through volunteer work
On June 10, 2012, some 200 employees and family members, representing not justthe Takaoka Plant but the entire ZEON Takaoka Group, took part in the Himi CoastalCleanup organized by a local environmental organization. Also, on July 1, about 200
members of the Group took part in the Fushiki-Kokubu Coastal Cleanup organized by
the Takaoka-Fushiki Beautification Volunteer Group and made a dedicated effort toclean up the beach.

Himi Coastal Cleanup

In addition, in 2012 Aoba-cho—where the Takaoka Plant dormitory islocated—marked 50 years since its founding. To commemorate this event, employees joined local residents to plantsix cherry blossom trees alongside the dormitory. There is one cherry blossom tree on the property planted around1957 that local residents lovingly call the “ZEON cherry blossom.” The six newly planted trees will also surely becherished by the local residents for many years to come.

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2. Interaction with the local community
ZEON Takaoka Group Summer Festival
The annual ZEON Takaoka Group Summer Festival was held on August 10, 2012. Employees, along with theirfamily members and local residents, were invited, bringing the total number of participants to over 500. All enjoyedlocal delicacies including Takaoka-style croquettes from Marucho butchery and Takaoka-style Totomaru
okonomiyaki, which has quietly been gaining popularity. Attendees also enjoyed entertainment including aperformance by a Hawaiian band comprised of employees, and a massive quiz event.

Futagami Manshou Kai
Employees from the Takaoka Plant actively take part in the Futagami Manshou Kai, an industry-academiagovernment association in the Futagami district as a way to deepen ties to the local community.

Takaoka Manyo Festival
Takaoka City holds an annual Takaoka Manyo Festival. The Takaoka Plant takes partin the annual main event, the recitation of all 20 volumes of the “Manyo-shu(Anthology of Myriad Leaves).” In 2012, the event was held on October 6, and 15
ZEON Takaoka Group employees took part in the festivities, awakening their feelingsof bygone days to recite many a Japanese poem at the gathering.
Employees taking part in the recitation of“Manyo-shu”-7-