Responsible
ibl CareC

MITSUBISHI GAS CHEMICAL COMPANY, INC.
Editing division and Contact for MGC Responsible Care further information
Environment and Safety Division
MITSUBISHI GAS CHEMICAL COMPANY, INC.
Mitsubishi Building, 5-2 Marunouchi 2-chome, Chiyoda-ku Tokyo 100-8324, Japan
Phone : +81-3-3283-4828 Facsimile : +81-3-3283-4840
URL : http://www.mgc.co.jp/eng/index.html (English)
http://www.mgc.co.jp (Japanese)

Environment, Health and Safety activities ofMitsubishi Gas Chemical Company, Inc.

Contents

Profile of MGC(as of March 31, 2008)

Company Name

Consolidated
Conso
Non-cconsolida
ated

MITSUBISHI GAS CHEMICAL COMPANY, INC.

Head Quarters Address Mitsubishi Building, 5-2 Marunouchi 2-chome,
Chiyoda-ku, Tokyo 100-8324, Japan

FY20
005

Original Establishment January 15, 1918
Incorporation

April 21, 1951

Capital¥ 41.97 billion

482.6
6

FY20
006

Number of Employees 4,686 (Consolidated)

FY20
007
0

Main Business Sites in Japan
Branch offices :

100

200

300

400

5
500

600
(billion ¥)Consolidaated
Non-conssolidated

Research laboratories : Tokyo research laboratory,
Niigata research laboratory,

has published the environmental report since 2001,

disaster prevention, Environmental preservation,
10

20

30

40

50

60

70

80
(billioon ¥)the Community, and to promote our own RC
activities.
The "Environmental Report Guideline 2007 edition"

Aromatic Chemicals Company
Through MGC's unique xyleneseparation andisomerization technology, OX, MX, PX isomers
are separated and used as raw materials to
produce functional aromatic roducts.

m-Xyleneo-Xylene
Methaxylylene diamine
1, 3-BAC
MX nylon resin

Polyols
Dimethylether
Ubidecarenone (Co-enzyme Q10)
ASC Super (Catalase)
Hydrogen generation device from
CatalystsCatalysts
Toluic acidAromatic aldehydes
Trimellitic anhydride
Pyromellitic anhydrideof the Ministry of Environment was referred forthis report understandable by using readable
expressions etc. was kept in mind when preparing it.

Scope of this report
Site covered :All MGC's domestic workplaces
The environmental performance data are

MGC has developed basic chemicals ofhydrogen peroxide, super-pure hydrogen
peroxide used in the electronic industry, andproduces engineering plastics, polycarbonate etc.

Hydrogen peroxide
Sodium percarbonate
Persulfates
Hydrosulfite
Chemicals for electronic industries
Monomer for plastic lens

Polycarbonate resin (Iupilon R )Polyacetal resin (Iupital R )Modified polyphenylene ether (Iupiace R )Polyamide MXD6 (Reny R )Polyamideimide (AI Polymer R )Iupilon Sheet R

MGC supplies high-performance, high-addedvalue products such as MT resin-based
electronic materials, oxygen absorbers etc.

Epoxy • BT resin copper clad laminates
Materials for multi-layer printed circuitboard
BT resin R
LE SHEET R

Responsible Care Audits and Activities Plan

9

10

AGELESS R (Oxygen absorber)
Anaero Pack R
RP System R
AGELESS OMAC R
PharmaKeep R

11

Environment-friendly Products and Research and Development

13

Approach to Chemicals and Products Safety

15

Environmental Load in Our Business Activities

17

Environmental Accounting

18

Approach to Global Warming Prevention

19

Approach to Chemicals Release Reduction

21

Approach to the Atmosphere, the Water and the Soil

23

Zero Emission of Waste

24

Environmental Communications

Period covered :25

From January 1, 2007 to December 31, 2007.

ENVIRONMENT AND SAFETY IN AFFILIATES(A part of activities in 2008 is described)
Provided that the period of the environmental

Responsible Care Activities in Affiliates

to March 31, 2008.

26

MGC Group's ENVIRONMENT AND SAFETY

Publication :MGC Group's Environmental and Safety Activities

October, 2008
Next publication schedule:
October, 2009

1

7

DIALOGUE WITH THE COMMUNITY

production is carried out.

performance data are those from April 1, 2007

Information and Advanced Materials Company

Targets and Results of Responsible Care Activities

ENVIRONMENTAL PRESERVATION

preparation of this RC Report. Also, how to makebased on only those of 8 plants where theSpecialty Chemicals Company

5

CHEMICALS AND PRODUCTS SAFETY

Product stewardship, Distribution safety) widely toMain Products

MGC manufactures commodity chemicals suchas methanol, ammonia, formalin etc. and uses
these chemicals to produce their derivatives, andlife-science products.

Environmental and Safety Management

Approach to Process Safety and Disaster Prevention(Occupational health and safety, Process safety and

FY20
007

MethanolFormalin
Ammonia
Methylamines
Methyl methacrylate methanol
Methacrylates

3

PROCESS SAFETY AND DISASTER PREVENTION

report MGC's Responsible Care (RC) Activities

31 5
31.5

0

Natural Gas Chemicals Company

Message from the President

Approach to Occupational Health and Safety

This Responsible Care Report 2008 is issued to

61
1.7

FY20
006

Yamakita plant and Kashima plant
Number of consolidated subsidiaries 33

2

the environment, health and safety activities.

Tokyo techno-center
Niigata plant, Mizushima plant, Yokkaichi plant,

Contents

HEALTH AND SAFETY

changed the report title to "Responsible Care Report"
in 2007 and continued to release the approach to

FY20
005

Hiratsuka research laboratory and
Plants :Explanatory note
Mitsubishi Gas Chemical Company, Inc. (MGC)

Osaka branch and Nagoya branch

1

MANAGEMENT SYSTEM

355 2
355.2

2,186 (Non-consolidated)

Profile of MGC

2

33

Message from the President

MGC RC Repot 2008

Cultivating a culture of safety

RC activities at MGC

to earn the trust of society

Activity topics

At MGC, we firmly believe that to continue thesustainable growth of our company we must earn the trustof society by operating in a safe and environmentallysound manner. We began our RC program in 1995, basedon our conviction that the most effective way to achievesustainable development is to promote thoroughcompliance and to implement RC activities that involve
all members of the organization. In 1997 we announced
our RC Action Declaration and embarked on program of
activities that continue to this day.
In 2006 we expanded this program to include affiliatedmanufacturing companies as part of measure to develop
RC activities across the entire MGC Group.

In 2007, we unfortunately experienced a total of eight
incidents resulting in lost work time and eight otheraccidents throughout our operating network (including
subcontractors). This included one fatal accident, and waspart of an increasing number of accidents over the past
three years. In light of this, in February 2008 we launcheda major accident prevention project targeting all
employees, with the aim of reversing this worrying trend.
We also reviewed our rate of energy consumption per unit
and set new targets as part of our initiatives to address theissue of greenhouse gases and global warming. Ourrevised target for 2010 is to reduce our energy
consumption unit rate to 85% or lower compared to 1990.
In 2007 we achieved a level of 89% compared to ourbaseline year, and to meet our new target we are now
redoubling our efforts.
Compared to 2007, we reduced our PRTR chemical
emission volumes by 14%, and in 2008 we are working to
make further progress in this respect.
Our target for waste reduction is to achieve zero
emissions status (lower than 0.3% of final content perunit), and focused efforts resulted in four manufacturing
plants meeting this target in 2007.
In 2006 we launched our MGC Group Environmental
Safety Committee with the purpose of promoting andsupporting environmental safety at affiliated companies.
A total of 14 affiliated manufacturing companies
currently participate in this program, as part of which
they each meet with the committee twice a year to outline
their safety programs and outcomes so that information
can be shared across the group to raise overall safety
awareness.

Responsible Care :Support for the Global Charterlaunched a special project aimed at eradicating
accidents.
This initiative is included in the Responsible Careenvironmental and safety activities pursued by
MGC, and looking ahead, all of us at MGC will
work together as a team to cultivate a culture ofsafety, stability and reliability so that we may earn
the trust of society.
October 2008

A chemical company that wishes sustain steady
growth must always maintain safety at its businesslocations, as well as a work environment in which
all employees can work with peace of mind.
It is therefore a source of deep regret for all of us at
MGC that in December 2007 an accidental
explosion occurred at the natural gas drilling facilityof our Niigata plant that resulted in the tragic loss oflife of a subcontractor worker involved inconstruction work there. Reflecting on this event, I
felt a strong need to remove the root cause of thiskind of accident, and in February 2008, MGC

Representative Director, President

Kazuo Sakai

3

Our president Kazuo
Sakai is a signatory
to the Responsible
Care Global Charter,
established by theInternational CouncilofChemical
Associations. This
charter contains nine
key elements, as
follows:

1. Adopt global responsible care core principles
2. Implement fundamental features of national responsible care programmes
3. Commit to advancing sustainable development
4. Continuously improve and report performance
5. Enhance the management of chemical products worldwide - product stewardship
6. Champion and facilitate the extension of responsible care along the chemicalindustry's value chain
7. Actively support national and global responsible care governance processes
8. Address stakeholder expectations about chemical industry activities andproducts
9. Provide appropriate resources to effectively implement responsible care

These RC activities are described in more detail in this
RC Report, and we hope you will take the opportunity tolearn about our dedication to achieving our RC aims.
As individuals and as a company we aim to earn andsustain your trust, and as such we welcome any feedback
or requests you have regarding our endeavors.

4

Environ
nmentaal andd Safety Management

MGC RC Repot 2008s to promote "sustainable development", "creation of a recycling-baseded-society", and "safee operation" as important business objectives, and we are working on
Respons
ponsible Care activities in all companies as a means to perform "Environment and Safety".
Message from the Director in charge of environment and safety

Corporate Philosophy
MGC is fully committed to making contributions towards development in harmony with society
through the creation of a diverse range of value based on chemistry.

Management Philosophy
With a view towards worldwide needs, our marketing efforts will focus on identifying and enlarging the world's markets.
The management of MGC is dedicated to providing comfortable workplace, paying due respect to the will and ability of
our employees, and is determined to create energetic workgroups.
With full knowledge of the market’s needs, we will implement creative research and development to nurture the seedsof our efforts to realize the best results.
By making efforts to upgrade technology, preserve the environment and promote safety, we will engage in the
manufacture of better quality products
We are a transparent company, where all employees work towards a common goal

Safety and environmental preservation are essential guiding criteria for theoperational and administrative stability of a company, as well as its sustainablegrowth. They are also the foundation on which the continuity of the business
depends. For this reason we must in all cases maintain faith in our ability to prevent
accidents completely. Without this conviction, it would be impossible to set a targetof zero accidents. It is our duty to seek out the obstacles to the achievement of thisgoal and steadily and continuously address them to prevent potential accidents from
actually occurring, while all the time working to improve communication
throughout our organization. Leaders of the organization and regular employees all
share the safety first principle, "The ultimate priority in our operations is to ensure
safety." We must all remain aware of our responsibilities, and fulfill this principle in
our words and actions.

Director, Senior Managing
Executive Officer

Responsible Care Promotion System
Field of RC activities

President

Safety Philosophy

Natural gas chemicals company

Administrative
divisionsAromatics chemicals company

Top priority of business activity is ensuring of safety.

contribute to the community and to secure the environment and a safe workplace and products, and by thinking of how to put
our corporate
rate activities in harmony with the protection of the global environment under the principle of sustainable development.
deve[E[Environmental
Environmental and Safety Targets]
Zero Accident,
Accident Zero Occupational Injury and Environmental Preservation[Fundamental[F
Fundamental Policies]
Ensuring of healthalth and safety in our operations
Securing security management
ent of facilities and increasing self
self-maintenancemaintenance technologies
technologieees
and skills
Reducing environmental loads in business activities
activitie
Ensuring safety in use
use, handling and disposaldof products
Developing of environment
environment-friendly
friendly and safety
safety-conscious
conscious products and technologies
Ensuring environmental preservation and safety in the logistics of obtaining raw materials
materiaaals
and storing and delivering our products
Enhancing of society's
society's confidence to us
To provide support to our subsidiaries and affiliates in implementing their own RC activities
activittiestContinuously improving our RC management system

MGC group's environmentand safety conference

5

Environment andsafety departments

Finance and accounting center

GHG task force

Administrative and personal center

RC audit

Corporate communications division

Audit for inspection
organization

Research and technology division

Environment andsafety audit

Maintenance center

Laboratories
Environment andsafety departments

Environmental
preservation
Chemicals andproducts safety
Distribution
safetyPurchasing and logistics center

Dialogue with thecommunity

Environment and safety division

Environment and safety
manager meeting

Process safety anddisaster prevention

PlantsCorporate planning divisionInternal audit division

PDCA cycle of RC activities

RC audit

Reviewing of activities

RC report

Act

MGC Web site

Reviewing the activities by executives andmaking them reflect to the next year plan

Planning of activity

Check
Auditing the results ofactivities andconfirming the issues

Plan
Continuous improvement
Implementation of plan

We shall comply fully with applicable domestic laws and foreign rules and shall also cooperate with related interinternationalorganizations,
ions, international and national administrative organs, and nongovernmental organizations whenever nneeded.

Planning anddevelopment divisions

Information and Advanced
chemicals company

Environment and
Safety Meeting

Occupation healthand safety

Business divisions

Specialty chemicals company

Safety is the basis of business activity and safety ensuring is the duty to society.

Fundamental Policies on Environment and Safety

Shoji Uematsu

Planning of RC mid-term targets
and annual plans based on thefundamental policies onenvironment and safety

Do
Executing the plan, company-wide

6

Dialogue with thecommunity

Targets and Re
essults of Responsible Care Activities

MGC RC Repot 2008

Estimation Remarks

Medium-term RC targets (2006-2010)

Activity Plan in 2007

Achievement :Necessity of more efforts :Actual results of activities

No activity :Estimation Relevant
page❶ The participation rate of employee was about 65~90%, and the experience training of safety practice etc.
has been taken in education.
❷ Conducted occupational risk assessment for Hiyari-Hatto suggestion items.
❸ Conducted risk prediction activity before starting non-routine work by individual tool box meetings andrisk prediction at site.

Achieve zero accident❶ Reinforce safety management for facilities without authorized
inspection under any law❷ Enforce the management for any changing in process and verify its
effectiveness❸ Review the crisis management system in case of an accident❶ Pay attention to management of deteriorated piping and make an inspection plan and renewal plan.
Measures are under execution.
❷ Implement preliminary safety assessment at the time of facility modification. Also conduct preliminary safetyassessment for a new experiment or scale-up at a research institute.
❸ Perform various training in response to emergency cases and reflect it in reviewing related regulations.

Reduce energy consumption rate below 85%
compared with 1990

❶ Reduce energy consumption rate more than 1% compared withthe previous year

❶ Although the energy conservation measures of about 4000kl of crude oil equivalent were conducted, the improvementof energy consumption rate was only 0.5% compared with the previous year. (88.9% compared with fiscal 1990)

Reduce greenhouse gas emission consumption
rate below 80% compared with 1990

❶ Reduce GHG emission rate more than 1% compared with the previous year

❶ GHG emission consumption rate has been improved by 6% compared with the previous year due to the effectof energy conservation and fuel switching from crude oil to natural gas. (81.3% compared with fiscal 1990)

Reduce PRTR chemical emissions by 10%
compared with 2004

❶ Reduce amount of PRTR chemical emissions more than 2%
compared with fiscal 2004

❶ Emission of PRTR chemicals in the list of JCIA (Japan Chemical Industry Association) has been reduced by
7% compared with the previous year. (reduced by 3% compared with fiscal 2004)

Reduce VOC emissions by 10% comparedwith 2004❶ Reduce amount of VOC emissions more than 2% comparedwith fiscal 2004

❶ VOC emission has been reduced by 8% compared with the previous year.
(reduced by 4% compared with fiscal 2004)

Achieve zero emission of waste❶ Achieve zero emission of wastes❷ Promote green procurement (office and stationary supplies)❶ The volume zero of final disposal was achieved at the four plants.
❷ All workplaces promote the green procurement by wider variety of goods.

Chemicals andproducts safety

Provide latest MSDS (Material Safety Data Sheets)and conform with GHS (GloballyHarmonized System)
Implement safety assessment of products
Participate in Japan Challenge program
Respond to REACH regulations
Undertake appropriate evaluation of new chemicals
Pursue the development of environmentally friendly
products and energy-saving technology❶ Review and provide the MSDS based on latest safety information❷ Harmonize with the amendment of Industrial Safety and Health Law (GHS)❸ Research and verify a substance contained in our product❹ Implement the Japan Challenge Program❺ Plan the appropriate countermeasures to REACH❻ Review our flow of newly developed product safety assessment❼ Pursue the development of environmentally friendly products andenergy-saving technology❶ Revised MSDS based on latest safety information.
❷❸ Investigated substances other than the product of 0.1% or more contained in the product because of theamendment of Industrial Safety and Health Law, and advanced the confirmation of the correspondenceor non-correspondence of displaying and issuing writing.
❹ Started gathering safety data and testing on 4 substances as scheduled after declaring to participate in theJapan Challenge Program.
❺ Drawn up appropriate measures to REACH.
❻ Reviewed regulations relating to safety assessment of newly developed products.
❼ Promoted to develop plant construction to produce next-generation clean fuel DME, energy saving technology,
environment-friendly products such as detergent "YUTLAS ACE" for oil- contaminated.

Distribution
safetyRespond to GHS requirements
Ensure safety in distribution activities
Reduce the environmental burden of
distribution activities❶ Verify the GHS labeling❷ Enhance our auditing for delivery consignment companies❸ Analyze a trouble in logistics and promote a preventative measure❹ Analyze an amount of CO2 emission in our distribution and plan its reduction scheme❺ Promote modal shift❶ Distributed the object products attached with GHS label.
❷ 6 main contractors of logistic companies were audited by our auditor.
❸ Conducted company-wide development after carrying out summary and analysis of troubles in logistics.
❹ Aim at 1% improvement per year of the energy consumption unit per ton kilo.
❺ Carried out modal shift and improved the efficiency of distribution systems.

16
20(Promote annual targets)❶ Publish Environmental Report 2006, 2007
❷ Publish Environmental site Report❸ Participate in JRCC dialogue meeting and industry segment activities❹ Participate in activities and events in local communities❶ Changed the name "Environmental Report" to "RC Report" and issued it in October every year.
❷ Three site environmental reports have been published.
❸ MGC, as a member of JRCC, has communicated with public, local administrative and neighboring companies
by participating every year in RC community dialogue meeting at each district where our plants are located.
❹ MGC hosted the industrial training for two participants of OPCW (Organization for the Prohibition of Chemical Weapons).
We carried out the volunteer activities for cleaning and beautification around the workplace, the reception ofplant visits and the opening of our welfare provisions.
We actively participated in activities and events in local communities.

25

Support their introduction of RC activity
Audit for any affiliates in Japan and overseas❶ Evaluate activities of MGC group's companies environmental andsafety conference in 2006 and draw up activity targets in 2007
❷ Visit and exchange information between MGC group's companies
environmental and safety conference❸ Carry out the RC audit to our 3 domestics subsidiaries and affiliates❹ Carry out the RC audit to our 3 overseas subsidiaries and affiliates❶ Evaluated activities of MGC group's companies environmental and safety conference in 2006, confirmed
activity targets in 2007, and conducted company-wide development.
❷ Visited 8 factories and exchanged information relating to environment and safety.
❸ Conducted the RC audit to our 3 domestics subsidiaries and affiliates.
❹ Conducted the RC audit to our 3 overseas subsidiaries and affiliates, 2 in Korea and 1 in Taiwan.

(Promote annual targets)❺ Study RC inspection (JRCC)❻ Carry out RC education and training❼ Enhance internal audit❺ RC inspection is going on.
❻ Conducted RC education and training, disaster prevention training and emergency drill,
mock drill against mass communication, training against emergency without scenario etc.
❼ Enhance internal audit by conducting training for internal auditor, revising audit check list etc.

11
12

* A serious accident occurred on December 6th 2007. (A special project has been launched for the purpose of accident eradication. See p.12 for detail)

〜
24

13
〜

Environmental preservation
Dialoguewith the community
Spectrum of RC

8

17

16

33
〜

Process safety
and Disasterprevention

7

10

38

26
〜

Occupational
healthand safety

Achieve zero occupational injury❶ Eliminate our human errors
・Activate suggestion activities on Hiyari-Hatto (near miss) through employees' participation
・Review educational methods to improve employees' sensibility to risk
❷ Enhance the occupational safety and health risk assessment activity❸ Make sure the risk prediction activity before starting non-routine work32

Responnsible Car
C re Audit and Activity Plan

Approachh to Oc
cc
cupational Health and Safety

RC audit is unundertaken every yearr. Findings are reported to the Environment and Safety Committee
andd reflecte
fl ctedt d ini RC activity
ti it planlfor the following year, with the aim of achieving continuous
improvem
ovement.

As part of its RC
C initiative, MGC
C ha
as a range of measures in place aimed at preventing occupational
accidents.
id t

The 2007 RC Auditchanges to each business location such as setting adepartmental target of full staff participation and targets
for individual employees.

Occupational safety activities

Our audits are based on evaluating the RC activity progress being made ateach workplace in the context of overall MGC RC activities, using both a preaudit assessment based on documents and records and a current annual audit
undertaken by the director in charge of the environment and safety. The audits
also include assessment of the PDCA cycle for the administration systemcovering the safety and certification of high pressure gas, boilers, and Class I
pressure vessels at certified plants.

The RC pre-audit◆ Audit period :◆ Auditee :July 2007 to October 2007
6 plants (including Tokyo Techno-Center), 3 laboratories,
4 internal companies and the corporate headquarters◆ Audit outcome : Full conformity : 23 cases
Non-conformity : 0 cases
Improvement orders : 8 cases
Comments : 31 cases◆ Follow-up of improvement orders from previous year :Auditors confirmed that all the items directed for improvementin the previous year's audit had been properly addressed.

The annual audit in progress

The 2008 RC activity plan
At the meeting of the Environment and Safety Committee held in December 2007, the following plan was formulatedwith respect to 2008 RC activities and meeting the goals of the Medium-term RC Targets for 2006-2010.
Note : Some details regarding community dialogue and overall RC activities have been abbreviatedMedium-term RC Targets for 2006-2010
Occupational health and safety■ Achieve zero occupational injury

Process safety and disaster prevention■ Achieve zero accident

Environmental preservation■ Reduce energy consumption rate below 85%
compared with 1990
■ Reduce greenhouse gas emission consumption
rate below 80% compared with 1990
■ Reduce PRTR chemical emissions by 10%
compared with 2004
■ Reduce VOC emissions by 10% compared with 2004
■ Achieve zero emission of waste

Chemical and product safety■ Provide latest MSDS and conform with GHS■ Implement a product safety assessment program
Participate in the Japan Challenge Program
Respond to REACH regulations
Undertake appropriate evaluation of new chemicals■ Pursue the development of environmentally friendly
products and energy-saving technology

Distribution safety■ Respond to GHS requirements■ Ensure safety in distribution activities■ Reduce the environmental burden of distribution
activities

2008 RC activity plan
● Boost employee participation in the hiyari-hatto (near miss) reporting system● Review risk assessment appraisal standards● Enhance guidance of subcontractors with regard to health and safety measures● Strengthen administration of older facilities (including pipes)● Enhance crisis management system for incident response● Launch accident eradication project● Implement energy usage reduction program and pursue stable operation offacilities, and reduce energy use per unit by more than 1% year on year

MGC is committed to zero accidents, zero occupational
injuries and environmental preservation as the targets
of its RC environmental and safety activities. A range ofoccupational safety activities are conducted in theworkplace aimed at achieving these targets. These
include daily safety procedures such as hiyari-hatto(near miss) reporting,
5S and risk reduction procedures, as well as education,
training, and risk assessment.
We adapt our risk assessment activities to fit thecharacteristics of each business location. Occupationalsafety risk assessment methodology is used in analysisof actual cases from near-miss suggestions and wehave established a dedicated Risk Assessment
Committee within the Occupational Health and Safety
Committee. Periodic presentations are also held todiscuss occupational safety risk assessment.
In the audit of our 2007 Responsible Care report, it waspointed out that since the calculation method varied
between business locations, it was possible that there
was a discrepancy between evaluation results for thesame risks. In light of this observation, we reviewed our
Occupational Safety Risk Assessment Policy. The June2008 revised version of the policy applies not only tooccupational safety but also process safety anddisaster prevention.

Actual near misses

Potential near misses

16,00012,78514,000● Develop proposals and set targets at plants to reduce the major emissions

12,00010,000● Make progress toward zero waste emissions by identifying current zero emission
rates and quantifying final waste reduction targets per output unit for each plant● Pursue green purchasing (for office equipment, etc.)

8,000● Adopt GHS labeling to meet Occupational Health and Safety Law requirements● Review and deliver MSDS in response to the Occupational Health and Safety Law

2,000● Research substances contained in products and form database● Implement Japan Challenge program● Respond to REACH regulations with preparations for preliminary and actual registration● Adopt safety appraisal system for use during development of new products● Pursue development of products and technology with low environmental impact
and energy-saving● Confirm adoption of expanded scope of GHS labeling● Continue safety auditing and administration of logistics vendors● Carefully analyze any incidents and adopt thorough preventative measures● Pursue CO2 emission reduction plan
● Pursue modal shift and assess quantitative impacts

9

There were two lost time injuries at MGC in 2007, andsix at subcontractors. In particular, there was one major
accident, when an accidental explosion occurred on
December 6, 2007 at the natural gas drilling facility of
our Niigata plant that resulted in the tragic loss of life ofa subcontractor worker involved in construction work
there.
Compared with the previous year, there has been asubstantial increase in the number of lost time injuries
at subcontractors in 2007, while the majority of losttime injuries both at MGC and its subcontractors
involved long absences from work.
As yet we have only carried out investigations of theimmediate causes of these accidents and there is aneed to uncover the underlying causes and takemeasures to prevent recurrence accordingly. We willcontinue to use daily inspections and near-misssuggestion activities to discover the risks of ourfacilities and work areas.

Trends in hiyari-hatto (near miss) reporting
Suggestion number(Number)● Reduce greenhouse gas emissions per unit by more than 1% year on year

Results of safety activities

13,233

14,296

15,437

9,388
8,578
8,327
7,060
7,110
6,173
5,718

6,000

Factory safety meeting

Trends in lost time injury frequency

4,000

0

2003

2004

2005

2006

2007 (year)

MGC
Chemical industry
Manufacturing industry* Location reduced by 2 since 2005

MGC uses near miss reporting to detect potential
hazards, as well as to reinforce employee awarenessof occupational risk. At most business locations thenumber of suggestions is equal to or greater than thatrecorded last year, and the number of potential nearmisses reported exceeds actual near misses. Ideally,
all employees should be involved in this activity, and to
improve the rate of participation we have introduced

*1

2003

2004

2005

2006

2007

0.53
0.92
0.98

0.28
0.88
0.99

0.29
0.90
1.01

0.92
0.88
1.02

0.59
1.10
1.09

*1 Number of injuries or fatalities per 1 million total number of working hours

Trends in lost time injury severity*2
MGC
Chemical industry
Manufacturing industry

2003
0.02
0.07
0.11

2004
0.001
0.06
0.11

2005
0.001
0.07
0.09

2006
0.20
0.10
0.11

2007
0.01
0.04
0.10

*2 Number of days lost per 1 thousand total number of working hours

10Approacch to Pro
ocess Safety and Disaster Prevention

MGC RC Repot 2008

MGC has posit
sitioned safety as a ttop priority issue. We are strongly committed to the achievement of zeroaccidents
id t and zero occupationaltiinjury, which we pursue by promoting self-maintenance based on RC
activities
ities. We also have a disaste
er prevention system in place to deal with accidents should they occur.

Accident eradication project (Project AZ)
various initiatives based on the inspection and renewal
plans that we have established. Piping management
systems are also either in operation or being planned.
To ensure the thorough implication and efficiency of ourmanagement of alterations to facilities, we implement
thorough prior safety audits at each facility wheneveralterations are made. We have revised our safety audit
regulations at the Niigata and Mizushima plants toinclude even minor alterations in the scope of each
audit. We also carry out prior safety evaluations at ourlaboratories in the event of new experiments and scaleup tests.

Process Safety Management
MGC audits its process safety as part of annual RC auditingat each workplace.
The Niigata and Mizushima plants, which are certified highpressure gas production facilities, undergo audits of theirinspection organizations by the Director in charge ofenvironment and safety, based on the Certified Process
Safety Management Regulations for High Pressure Gas.
This auditing provides third-party confirmation of whether thesafety management systems of the certified plants are incompliance with the standards specified by Minister of
Economy, Trade and Industry.

Main safety management activities at each facility

High Pressure Gas Safety Management System

Main safety management activities at each facility

Environment and Safety Meeting
Director in charge of environment and safety(In charge of security management of facilities)
Environment and safety division at Head Office(In charge of self-maintenance certification)

RC auditCertified plantAct

Chief administrator of certified
inspection organization(appointed by the president)

Safetymanagement
systemDo*The M3 system is a facilities management method

Check

Appropriate certification
inspection Confirmation of
status of implementation

Assigned safety
management officer
Report meeting

MGC has established a disaster prevention system at
each workplace to deal with accidents should theyoccur, and carries out a range of disaster prevention
training drills based on the safety targets of each fiscal
year.
At the Mizushima plant, we have improved ourcapability to respond in the event of an accident by
renewing the firefighting
vehicle, adopting thenewest model energysaving vehicle. We havealso
introduced
anearthquake emergency
warning reception system
in an effort to minimize
System combining earthquake
damage in the event of an
emergency warning reception
and internal broadcast of warning
earthquake.

•Facility management
division

Number of accidents
During 2007 a total of eight accidents occurred,
including those at subcontractors, an increase on thesix accidents that occurred the previous year.

Safety management activities
for facilities
The prevention of accidents and disasters requires us
to ensure that our procedures are safe and our facilities
well maintained, as well as to sustain stable operations.
At each facility, we place particular emphasis on themaintenance of aging piping, and we are implementing

11

Facility
administrative
officeEnvironmentand safety division

Section staff

MGC has assigned safety officers appointed by thepresident as the officials in charge of project
implementation at each facility

Initiative targets

The first objective of this project is to share among
management and staff and implement MGC's newly
formulated safety principle, "Top priority of businessactivity is ensuring of safety." The second objective of
the project is to enhance our educational training
system for employees, cultivate onsite safety
technicians and upgrade our overall safety
management. We will use this principle to pursue levelsof knowledge and safety skills that go beyond merecompliance with work duty-related legislation andcompany regulations, and instill these as part of acontinuous and independent human resource
development system, while also leveraging the specificcharacteristics of each facility. This will result in theachievement of our third objective: zero accidents.

The project will use the following PDCA cycle.

Project duration and slogan

Certified•Safety management divisioninspection •Operational management
organization division

Assigned safety
management officer
at each facility

Safety officer withineach section

Response to emergencies

Administrative
structure of facilities

Head of facility(plant, laboratory,etc.)

Safety officer withineach section
Report meeting

Check Act

Plan

Certified inspection
organization

Director in chargeof environmentand safety

Administrative
office Environmentand safety division
at Head Office

In order that we may never repeat a tragic accident ordisaster like the fatal explosion that occurred at thenatural gas drilling facility of our Niigata plant on
December 6, 2007, and in order to halt the trend ofincreasing incidences ofaccidents and operational
irregularities at MGC
facilities, we have initiateda special project as partof our RC activities,
Project AZ (Accident
The Niigata plant natural
Zero), which is aimed at
gas exploration sitewhere the accident occurred
eradicating accidents.

Do

Audit on administrative
structure to certified
inspection organization

President

Background and aims of the project

Plan

Complete visibility of operational safety
Reinforced initiatives to eradicate equipment malfunction
Niigata
Improved management system for high-pressure gas
plant
devices, non-code (outside scope of regulatory
inspection) devices, aging facilities, etc.
Mizushima Three-year plan for visibility (complete)
plant
Enhancement and full operation of facility management system
Yokkaichi Preparation for registration of non-code device M3 system*
plant
Scheduled implementation of renewal of aging facilities
Implementation of self-maintenance activities based on
full-fledged adoption of TPM
Kashimaplant
Preparation and use of non-code device safety tables
Preparation for adoption of piping management system
Yamakita Management using maintenance target charts forplant
non-code devices

President

System for implementation

Head office
Formulate plan targets
Formulate implementation guideline targets for each facility Head office
Head office
Examine contents for education and training
Facility
Formulate implementation targets for each facility
Facility
Implement targets for each facility
Head office
Improve educational materials
Reaffirm applicable legislation, operation manual andFacility
ensure compliance
Implement education and training
Facility
Implement audit by head office (emphasize project initiative as
Head officepriority in RC audits; continue on an ongoing basis if necessary)
Implement examination by facility management , monitoring by
Facility
assigned safety officers (establish and operate monitoring system)
Head officeEnvironmental safety meeting (December)
Assigned safety management officers meeting (quarterly) Head office
Health and Safety committee meetings, etc.
Facility

Implementation status

We have decided on a first project stage of three years
in length, during which time we will establish accident
eradication initiatives. If it is judged that the initiatives
have not been fully established during that timeframe,
we may extend the period as necessary.
The project slogan is "Safety depends on developing
individual sensibility and team cooperation."

A Group kickoff meeting for the project was held on
February 8, 2008, andduring March separate
kickoff meetings were
held at each facility, whichwere attended by thepresident as well as bydirector in charge of
The president speaking
Environment and Safety.
at the Group kickoff meeting
Following this the initiative
on February 8, 2008
took effect at each facility.
The assigned safety management officers exchange
information at special meetings held for this purpose,
later making this information available to employees,
including those at affiliates and subcontractors, through
AZ reports issued four times per year.

Main goals and policies
The main goal of the project is "to completely eradicate
accidents and disasters". There are four policies:(1) Cultivate a culture of safety(2) Reaffirm legislation, company regulations, and internal
rules relating to safety, and ensure thorough compliancewith these(3) Reinforce education and training(4) Implement preventive maintenance12Environnm
ment-frieendly Products and Researchand Devve
elopmennt
We regard thehe globbal environmenta
al preservation as common issue to the world, and we have been
ffocusingion ddevelolopmentt off our environment-friendly products. We do not have many products
supplied
plied directly to consumerscbut we are making actively efforts to develop products and technologies
by consideringb
id i energy and resource saving, low load to environment, reduction of waste, etc.

MGC's environment-friendly products and technologies
Products or Technologies
MX nylon resin
Iupilon (Polycarbonate resin)
R

Plastics

Reny (Polyamide MXD6)R

Iupital (Polyacetal resin)
Iupiace(Modified polyphenylene ether)RR

AI polymer (Polyamideimide)R

Contribution to environmental preservation
Non chlorinated resin with high gas barrier capability
Resin with excellent transparency, durability and weather ability, used for various purposes,
contributing to resources saving
Mineral-filled resin mainly used for side mirror stay of vehicle, contributing to the energy savingby light weight property
Resin with excellent mechanical properties and used as the substitute for metals in various purposes
Resin mainly used for office automation equipment, contributing to the energy saving for its lightweight property
Resin for thin outer housing of smaller and lighter office automation equipment on the basis ofexcellent heat resistanceDiafresh series
R

Water treatment agents

OR-SON AT
F-SONNEOSOLNEOPOCK
Deslime , ContlimeR

DEOPOWER
Keep quality andfreshness

AGELESSR

R

AGELESS OMAC

R

MX-nylon is widely used in food packaging since its excellent gas barrier properties make it impermeable
to oxygen and other gases, preventing the oxidization degradation of food. Recently a production method
has gained prominence that combines MX-nylon with other resins to reduce the overall thickness of the
packaging material. A multilayer structure of MX-nylon and PET resulting in plastic with greatly reduced
weight is being used to produce lightweight PET bottles, which have earned a strong reputation in
Northern Europe as an environmentally friendly packaging.
MGC is also examining the potential of MX-nylon for applications in film and sheet.

RP system
The RP system prevents discoloration, decreased bondability and solderability of metals
and electronic components and other moisture-caused post-manufacture deterioration. It
eliminates the need for the diffusion of chemical agents into the air, cleaning procedures,and cleaning agent disposal, which are required when volatile anti-corrosion agents oranti-corrosion oils are used on metal components. The RP system is also useful in theprevention of time degradation of stored electric components.

Dimethyl ether
Dimethyl ether (DME) is an environmentally friendly substance that does not emit
particulate organic matter (black carbon, etc.), SOx etc. when incinerated. A major
manufacturer of DME, MGC supplies DME and DME-related technical support for
applications such as automotive test runs, and incineration equipment tests. We arealso engaged in technological development for fuel cell battery and otherappxlications as part of our efforts to promote the widespread use of DME fuel.
We have established and commenced operation of a new 80,000 ton per year
production facility at the Niigata plant to promote the adoption of DME fuel as asupplement to LPG, heavy oil and light oil.

New packaging film as the substitute for canned food, contributing to weight saving and waste reduction
Agent keeping quality and performance in medicines and medical device, and improving their shelf life
Eco-friendly system for insect proof and preservation of cultural property, used as the substitutefor methyl bromide referred to as ozone layer depleting substance

R

AIR-G

Methanol, Ammonia, Methylamines,etc Clean natural gas based basic raw materials and fine chemicals

Chemicals

Methacrylates

Raw materials for vehicle coating based on acrylates, contributing to the reduction of fuel cost

High-purity Terephthalic acidRaw material for PET, contributing to the reduction of wastes by its recycling

Hydrogen peroxid

Substitute for bleaching agents containing chlorine, used in a pulp and paper production process

GASKAMINE 240

R

Reduction of solvent by applying it to non-solvent epoxy resin (two liquid type) because of
its lower viscosity

Technologies, etc

Dimethylether (DME)

Application of clean fuel DME used natural gas as material to the automobile fuel

Fuel cell

Research and development of methanol fuel cell with which electricity is directly generated
without hydrogen reforming. Output density is double compared with two years ago.
Heat resistant materials for printed circuit board, suitable for lead-free solder
Printed circuit board with Brominated flame retardants free
Purgation of polluted underground water and soil

Materials for Environment-FriendlyPrinted Circuit Board
Persulfates
Method for manufacturing ofAromatic aldehydes
MGC-MH process
Development of natural gas field,
Development of geothermal steam
Method for manufacturing of
Trimethylolpropane
Method for manufacturing of
Methyl methacrylate
AR
Neofade (damping material)R

MX-nylon resin

Oxidation and corrosion resistant system for metals and electronic parts, contributing to reduction of waste

R

PharmaKeep

MGC environment-friendly products and their development

Agent keeping quality and freshness in food sector and, as a result, reducing waste of foods andpromoting efficiency of production and distributionR

RP System

Agent making persistent organic materials decomposable and drastically reducing the generation of sludge
Agent for separation and treatment of fluorine compounds, which can easily reduce the fluorine
content to 8 ppm or lessAgent to prevent the oil-base paint mist from adhering and to make easy the recovery of dispersed
paint in the recycled water in a painting boothChemical agent for effective aggregation and separation of water-based paint, water soluble polymer, etc.
Water treatment agent for recycled cooling water in piping aiming both the cleaning and long-life ofsaid water, and high thermal efficiency
Deodorant agent to solve the issue of bad odor at sewage-treatment plant, etc.

MGC RC Repot 2008

Reduction of harmful waste by the completely closed process of super acid catalyst
Process for the production of high purity hydrogen gas from methanol and water
Development of clean energy and its application to raw material Application of geothermal steam
to electric power generation
Production technology that recovers and recycles by-product (sodium formate) as raw material
Production technology based on new ACH method using natural gas without generatingby-product ammonium sulfate
Capacitor mainly consisted of AR (carbon) and aluminum is the electricity storage system with
benefit of long life and less harmful materials
Excellent vibration-damping property / Suppresses structural resonance, preventing vibration and noise

13

Water treatment agents
The water treatment chemical Contlime series not only contributes greatly toconserving energy and resources, but it is also highly effective in preventing
Legionella, a bacteria that is harmful to human health and that has become aproblem in recent years.
The Diafresh series wastewater treatment agent is an efficient solution to a wide
range of problems associated with industrial wastewater. The series has earned astrong reputation in the automotive, semiconductor and other industries as atechnology for reducing environmental impact. The series is comprised of : F-SON,a fluorine removal agent; NEOSOL, a paint recycling solvent; NEOPOCK, achemical agent for effective aggregation and separation of water-based paint, watersoluble polymer and other substances; and ORSON, an agent for thedecomposition of persistent organic materials.

Before F-SON B
is added

After F-SON B
is added

YUTLAS ACEYUTLAS ACE is a unique environmentally friendly oil-adsorptive agent composed of natural
materials. When mixed with soil or other substrates that have been contaminated with oil, theagent adsorbs the oil to limit both the oil odor and oil film. Bacteria native to the soil that use
YUTLAS ACE as a nutrient for respiration then increase, resulting in the decomposition of both
YUTLAS ACE and the adsorbed oil. YUTLAS ACE has strong potential for applications such as
the bioremediation of oil-contaminated soil and removal of oil emulsion.

14

Approacchh to Chemicals
Cand Products Safety
It is our respo
ponsibillity as a cchemicals supplier to clarify the characteristics, safeness and handling
methods off oour prodducts, and we implement measures to protect the safety, health and environment
ducts
of everyry useruof our products. We also participate in safety assessment activities in Japan andoverseas that publicly
oversepublic disclose information about the safety of chemical products.

Flowchart of safetyassessment forchemicals and products

Survey of literature
Access to MSDS of materials, etc.

Safety assessment
Hazard assessment
Assessment of environmental
safety

MGC has already completed the final version of its safety informationcollection plan for three chemicals, and has started experiments to collectinformation that will be trusted internationally. Safety information for theremaining chemical will be submitted to the OECD HPV* program.

Preparation of safety
information
MSDS
Product warning label
Yellow-Card

Customer
information

Product supply
Collection of customer information
Compliance with applicable laws
Rationalization of productstorage and transportation* The HPV program assesses the safety of high production volume (HPV) chemicals, i.e.
chemicals of which the annual production volume in one country is 1,000 tons or more

MGC works to ensure safety by attaching warninglabels on hazardous products, providing risk andhazardousness information on the container, pictures
illustrating procedures to avoid risk, and cautionary
information concerning correct handling. In December
2006, the Industrial Safety and Health Law wasamended, requiring us to classify and label chemicals
on the basis of the Globally Harmonized System ofClassification and Labeling of Chemicals (GHS).

Through its marketing and sales agents, MGC provides
material safety data sheets (MSDS) to customers andtransporters handling MGC products. We also attach
information labels to products and distribute yellow
cards for use during product transportation.

Material safety data sheets (MSDS)
MGC provides MSDSs for all of its
products, including products forwhich this practice is not requiredby law. We are also sequentiallypreparing GHS compliant versionsof our MSDSs.

Chemicals covered by MGC research as part of Japan Challenge Program

Survey of applicable laws
United Nations classification
Japanese classification

Product labeling

Safety information service• 3,4-Dimethyl benzaldehyde• Cyclohexyl methacrylate (consortium formed)• Pyromellitic dianhydride (Du Pont-MGC Co., Ltd)• 1,3-Bis (Aminomethyl) cyclohexane(scheduled for submission to OECD HPV program*)

Hazard classification

Assessment of risk management
Judgment of sale on the market

Japan Challenge ProgramThis program is a collaboration between the Japanese government andindustry to accelerate the gathering of safety information relating to existingchemical substances, and ensure widespread disclosure of these to the
public. The program is seeking sponsorship from companies within Japanto research the 126 substances whose domestic production or import
volumes exceed 1,000 tons per year and which are not scheduled for
information collection in the plans of Organization for Economic Cooperation and Development (OECD). MGC is participating in the programby taking responsibility of research into the following four substances.

Preliminary study

Investigation of sale on
he market

Surveys and research into the safety of chemicals

MGC RC Repot 2008

Following the amended law,
we changed the classificationand labeling of products listed
under the law in order to bringthem into line with GHS
specifications. The quality
and other characteristics of
our products have notchanged.

Industrial Safety and Health Act
compliance
Substances with certain content
concentration levels as defined bygovernment regulations will be
included in MSDS revisions carriedout by November 30, 2008

GHS-compliant productlabeling
Substances with certain
content concentration labels
as defined by government
regulations will be included
in MSDS revisions carriedout by November 30, 2008

Yellow-Card
to transporters and insists that they
are carried at all times to prevent
accidents during transportation.
Yellow-Card

REACH
REACH, a new set of regulations on the management of chemicals,
was introduced in Europe in June 2007. MGC is cooperating with theaffiliated company in Europe and has a system in place that cansmoothly be brought into line with these regulations as appropriate.
Using this system, we provisionally registered existing MGC products
from June 2008, and through a reassessment of the risk and toxicity
data in our possession, we are also proceeding with the managementof new chemicals.

The Yellow-Card is a document used
to ensure preparedness in the event ofan accident while transport chemicals.
It contains details of emergency
contacts such as transporters, the fire
department and police

Environment and safety considerations in distribution and product transportation
Audits of distribution contractors

Safety in chemical experiments
MGC's Niigata research laboratory has a certified biodegradability and mutagenic (Ames)
test facility in accordance with GLP*, which complies with Japanese regulations on thesafety evaluation of chemical substances and industrial safety and health. Only ten
companies in Japan have GLP-certified biodegradability test facilities. **The laboratory also has test facilities for acute oral toxicity, primary skin irritation andpathogenicity, and 48 of these safety tests were conducted in 2007.

Emergency response during transportation
MGC has installed emergency equipment at eachbusiness location and is capable of maintaining
communication between business locations in theevent of an emergency during transportation, which
gives us networks ready to provide support over large
areas. Using the emergency equipment maintained bythis network we also actively cooperate with requests
by local police and fire departments to provide
assistance in the event of accidents during thetransportation of the products of other companies.

In order to ensure safety in distribution, MGC conducts
audits of its distribution contractors. Audits of six
distribution contractors were carried out in 2007.

* Good Laboratory Practice: a quality system governing the organizational process and the conditions under which nonclinical health and environmental safety studies are planned, performed, monitored, recorded, archived and reported.
** As of April 1, 2008

15

16

Environnmmental Loa
ad in Our Business Actiivities

Environm
mental Accmcounting

The overview
woof o
our environmental loadd status in fiscal 2007 (from April 1, 2007 to Marchh 31, 2008) is
shown
h
below
b low. Eac
E chh plantl t makes
k efforts
ff t to ensure the efficient use of inputted resources and materials
as wellell a
as the reduction of emission and waste

MGC has been int
ntro
oducing and counting the environmental accounting along the guideline of the Ministry
off theth Environm
E i nmentt sinceififiscall 2002
2002. It is intended to be of help to the MGC's efficient environmental
preservation
ation activitie
es and to keep clearness of our approaches by disclosing it to the public.

INPUT
umption* Year-on-year(2007 / 2006)

Water consumption

42,762 km3(y-o-y : 1.01)

Raw materials

MGC business activitiess (8 production sites)
M

578,000 kl(y-o-y* : 1.03)

osphereGreenhouse gases em
emission CO2 conversion
1,519 k ton-CO2 (y-o-y : 0.96)
SOx emission
279 ton (y-o-y : 0.68)
NOx emission
927 ton (y-o-y : 0.98)
Soot and dust emissions
76 ton (y-o-y : 1.53)
Releases of PRTR listed chemicals 219 ton (y-o-y : 0.86)

The environmental preservation cost is the cost whichis required for environmental preservation activities. It
is divided into investment and expense.
Investment is the cost to introduce facilities aiming atenvironmental preservation. Expense is the cost for
operating and managing the introduced facilities, andcost for conducting research and development ofenvironment-friendly products.

As an effect of environmental preservation activity,
economic effects, such as cost reduction besides theeffect about environmental preservation, were also
obtained.

Environmental Preservation EffectThe green house gas emission, release of the PRTR
listed chemicals, SOx emission and COD in effluent
discharge were decreased compared with previous
fiscal 2006. For additional information, details of actual
values are summarized in the environmental load
status in the previous page.

Investment
Release to water area
Drainage volume
35,710 km3 (y-o-y : 1.01)
COD emission
268 ton (y-o-y : 0.93)
Total nitrogen emission
353 ton (y-o-y : 1.00)
Total phosphorus emission
71 ton (y-o-y : 0.95)
Releases of PRTR listed chemicals
micals 24 ton (y-o-y(y-o- : 0.89)

The total amount of investment in fiscal year 2007 was
1,080 million yen. Among this, the investment that
related to water pollution prevention increased mostwith 42% of the total, and was 450 million yen. The
main works were the modification of waste water
treatment facility to increase its capacity in the Niigata
plant and the renewal of waste water treatment facility
in the Yokkaichi plant.

Economic benefit
The profit on sale of valuable waste and the effect of
cost reducing by energy saving activities were obtained.

Economic benefit
Cost

Generation of waste

Transfer to off-site
8,245 ton (y-o-y : 1.04)

Greenhouse gases emission due to transportation

The total amount of cost in fiscal year 2007 was 10.6
billion yen. Among this, the cost for researchdevelopment increased most with 27% of the total, andwas 2,800 million yen, for water pollution prevention
came to 23% of the total and was 2,400 million yen.

17

Pollution
prevention cost

Total amount of fuels (heavy oils, etc), purchased steam and purchased electric power consumed in our business activities
Total amount of drinking water and industrial water used for business activities
Total emission volume of 6 Greenhouse gases (including purchase of steam, electricity power)
Total emission volume of SOx contained in exhaust gas
Total emission volume of NOx contained in exhaust gas
Total emission volume of soot and others contained in exhaust gas
Release volumes of the listed chemicals to the air
Volumes released to the public water area after treatment of drainage from our business activities
Volume obtained with multiplying drainage volume by COD concentration in drainage
Volume obtained with multiplying volume of drainage by nitrogen concentration in drainage
Volume obtained with multiplying volume of drainage by phosphorus concentration in drainage
Volume of waste transferred off-site for external treatment

Item

Account(million ¥)IncomeCost saving

Profit on sale of valuable waste
Effect by energy saving

95
142

Main items for activity

Invest. Incinerator etc.
Cost Off gas scrubber etc.
Invest. Facility making drainage harmless etc.
Water pollution
prevention
Cost Waste water treatment facility maintenance
Soil contamination, Invest. Installation of noise reduction facility etc.
noise prevention
Cost Soil contamination countermeasures etc.
Invest. Reuse steam for saving energy etc.
Global environmental
preservation cost
Cost Running and maintenance cost for power plant
Invest. Installation of facility to check waste generation
Resource recycling cost
Cost Treatment of recycle
Invest.
Up or down stream cost
Cost Management charge for recycle etc.
Invest. Maintenance of green space
Management activity cost
Cost Maintenance fee of environmental management
Invest.
R & D cost
Development for environment-friendly products
Cost
Invest.
Social contribution cost
Cost Supporting local community
Invest.
Environmental damage cost
Cost Compensation for environmental preservation
Onsite cost

P rod uct ion Niigata plant, Mizushima plant, Kashima plant, Yokkaichi plants i t e (including Naniwa plant and Saga plant), Yamakita plant, Tokyo Techno-Center

Title

Environmental preservation cost in FY 2007
Breakdown

30 k ton-CO2 (y-o-y : 0.94)

Energy consumption
Water consumption
Greenhouse gases emission
SOx emission
NOx emission
Soot and dusttt emissions
Releases of PRTR listed chemicals
Drainage volume
COD emission
Total nitrogen emission
Total phosphorus emission
Waste transferred off-site

Effect of Environmental
Preservation Activity

Environmental Preservation CostOUTPUT

Air pollution
prevention

TOTAL

18

Investment
Cost
million ¥ Ratio (%) million ¥ Ratio (%)
115
10.6
568
5.4
451
41.6
2,440
23.1
40
3.7
1,394
13.2
142
13.1
1,613
15.3
16
1.4
995
9.4
0.0
0
0.3
36
58
5.4
509
4.8
262
24.2
2,838
26.9
0
0.0
14
0.1
0
0.0
159
1.5
1,084

100.0

10,568100.0

Approacch to GlobalcGWarming Prevention

MGC RC Repot 2008

Regarding thee chanc nge of the ta
arget of the medium-term plan,
MGC has b
been
bew
working againstaga
the global warming issue in the factory manufacturing section, thetransportat
rtation section, the office section, and the home section. As for the approach in the centered factory
manufacturing section,
manuf
sec
the improvement target (target in fiscal 2010) of the energy in the medium-termplan has been changed to 0.85 or less from 0.90 or less compared with fiscal year 1990 in the past, and
MGC has been working hard to achieve it.

previous year and was 0.81 compared with fiscal 1990.
In addition, the conversion of heavy oil to natural gas at
the Yamakita plant and Mizushima plant had
contributed to the improvement of consumption unit.

Energy saving activity
Trend of energy consumption amount andconsumption
Comsumpition amount

Consumption rate index
3

Amount (as crude oil x10 kl)
1,200

1.00
1,000
800

Energy rate index (FY 1990=1)
1.1

1.018 0.992
0.928

GHG emission amount

1.0

0.881 0.871 0.893 0.889

567 530 551 543 554 569 562 578

600
400

0.957

Trend of Greenhouse gas (GHG) emission
amount and emission rate

Target of rate in FY 2010430

Emission amount (k ton)
3,000

0.9

1.00
2,500

0.8

1,500

0.6

0

0.5
1990

0.955 1.006 0.974

0.851 0.829 0.864 0.813

1.0
0.8

1,629 1,512 1,583 1,561 1,555 1,589 1,579 1,519
1,225

0.6

1,000

0.4

500

0.2

2000 2001 2002 2003 2004 2005 2006 2007

The amount of the energy consumption in fiscal 2007
on the basis of crude oil was 578,000 kl inmanufacturing sections, and it had increased by 2.8%
from the previous year. However, the energy
consumption rate was decreased by 0.5% from theprevious year and was 0.889 compared with fiscal
1990.
The effect of energy saving was 3,600 kl converted interms of crude oil through the following measures as
the energy saving activity in fiscal 2007.

0

0.0
1990

2000 2001 2002 2003 2004 2005 2006 2007

Plan to convert fuel to LNG (Mizushima plant)
At present, fuel conversion from heavy oil and byproduct gas of steel plant to LNG is advanced one byone.
In response to this plan, the following measures havebeen conducted for energy saving.
• Increase the amount of own power generation
by modification of gas turbine.
• Improvement of integrated thermal efficiency
by introduction of exhaust air reheat boiler*• Increase the amount of own power generation
by installation of steam turbine.

Energy saving by heat recovery from hot water(Kashima plant)
The warm water (about 70℃) generated at the
Kashima plant is sent to the adjacent joint power
generation company, and used as a heat source of the
LNG vaporizer of gas engine fuel.

* Exhaust air reheat boiler is the boiler which uses
remaining oxygen in exhaust air of gas turbine.
Thermal efficiency of the whole system is increasedby using waste heat of gas turbine.

Countermeasures for reductionof Greenhouse Gas emission

After the act concerning the rational use of energy
amended in April 1st, 2006, a specified consigner, who
has cargo transportation or entrusts cargotransportation of more than 30,000 k tons • km, hasbeen mandated to submit an annual plan andperiodical report to the government.
The actual performance of energy consumption andamount of CO2 emission in 2007 was as follows :• Energy consumption: 11,000 kl (as crude oil,decreased by 6.1% from the previous year)• CO2 emission: 30,000 ton(decreased by 6.2% from the previous year)
Also unit consumption per transportation amount (ton •km) was as follows:• Energy unit consumption :decreased by 0.9% from the previous year
• CO2 emission unit consumption:
decreased by 1.1% from the previous year
The fuel consumption improvement in modal shift tothe railroad, in transportation with large-size truck, inship transportation as energy conservation contributes
to the unit consumption improvement.

Transportation amount, million ton • km
700

CO2 emission, k ton
35

600

30

5.0%

5.7%

400
300

100
0

19

Approach to Energy Saving
at the office and home
Energy savings such as Cool Biz, Warm Biz, turning off
the light and power OFF of the personal computerwhen unnecessary are executed at the headquarters
and each research institute.
In addition, measures such as introducing the highefficiency illumination, introducing the sensor to the rest
room illumination and sticking the heat-shield film to
the glass window at the office, promotion of further
measures have been considered.
As for the approach to energy saving at home, theJapan Chemical Industry Association (JCIA) asks
employees to take part in the promoted ABC(Acceleration By Chemical) activity.
In fiscal 2008, more than 500 volunteers of employees
are participating and working by aiming at the reductionof CO2 emission as 3 kg or more per day per person oras 500 ton or more per year on the whole as CO2
reduction target.

1.9%

25

30.1%

ABC Activity promoted by JCIA
2.1%

ABC is the activity to promote energy saving measuresin the home life of employees in the field of chemicalindustry. Each participant sets the activity target ofenergy saving measures and checks the practicalsituation by himself.
"1kg per day per person; My challenge declaration" in"Team minus 6%" campaign promoted by thegovernment is this activity base.
In our company, we have our own in-house award
system and we conduct the activity and increase its
effectiveness by creating an additional energy saving
measure collection etc.

29.8%

20

59.9%

59.3%

200

Newly installed exhaust air reheat boiler at the Mizushima plant

ISO Container for Polycarbonate transportation

Trends of transportation amount andCO2 emission

500

In fiscal 2007, the amount of Greenhouse Gas (GHG)
emission was 1,519 k tons in manufacturing sections
and decreased by 3.8% from the previous year.
In the breakdown, the amount of CO2 was 99% of thewhole, and the amount of other five kinds ofgreenhouse gas emission was small. The GHG
emission rate had been improved by 6% from theIn the transportation of polycarbonate resin from theKashima plant to Osaka, CO2 emissions were greatly
reduced by the use of railroad as trunk transportation
as well as the enlargement of the transportation lot bychanging the conventional 10-ton track to the ISO
container.

Approach to Energy Saving inDistribution

Emission rate index (FY 1990=1)
1.2

0.903

Example in distribution

MGC conducts the exploring development of natural
gas in Niigata Prefecture, which is the clean fuel with
few impurities such as sulfur content, and few CO2
emissions.The obtained natural gas is used as a raw
material and an energy source of the Niigata plant.
Also MGC takes part in the business that supplies
geothermal steam, which is a kind of regenerable
energy to the adjacent power plant in Hachimantai,
Akita Prefecture.

Target of rate in FY 2010

2,000

0.7

200

Emission rate index

Development and Utilizationof clean energy

15
10

35.1%

35.0%

FY 2006

FY 2007

27
324
190

29
304
179

68.0%

68.1%

FY 2006

FY 2007

0.6
9.6
21.7

0.6
8.9
20.4

5
0

by railby shipby truck20

Approacch to ChemicalscC
Release Reduction

MGC RC Repot 2008

In order to redduce
e the release
e of chemical substances to the environment, a quantitative target for the
releasel
off chchemich icall substancesb tspecified by the PRTR law and Volatile Organic Compounds (VOC) is
set upp in RC mid-tterm plan, and the approach for reduction has been continued.

PRTR chemicals in the JCIA list
Chemicals specified by the PRTR Law
In our assessment in fiscal 2007, 45 chemicals wereAs for this, the approach to reduce Dichloromethane,

those to be subjected to register out of 354

the largest release amount (decreased by 51 tons,

chemicals specified by the PRTR law. The total

30% from the previous year) is the key factor.

release amount was 243 tons (decreased by 40

The transfer amount was 393 tons (decreased by 43

tons, 14% from the previous year).

tons, 10% from the previous year). This is due to the
reduction of the used washing solvent amount.

Trend of the specified chemicals in the PRTR law list
Number of chemicals
60

Release amount (tons/y)
1,200
1,139
1,000

46

44

42

45

46

45

Transfer volume
40

617

30

507
360

400

436
299 332

285 261346 351

283

2002

2003

2004

2005

2006

Release amount
2,000

Number of chemicals
100

1,539

20

71

243

2007

(tons/y)1,707

Chemical number

(FY)

68

75

1,313
1,244
65
64

1,000

10

2001

PRTR is the acronym of Pollutant Release andTransfer Register.
It is based on the Law Concerning Reporting, etc.
of Release of Specific Chemical Substances to theEnvironment and Promotion of the Improvement of
their Management (so-called PRTR Law), and is amechanism according to which the amount of
released and transferred harmful chemicals are
grasped, totalized, and made public.

Trend of PRTR chemicals in the JCIA list

1,500

393

200
0

Release volume

PRTR

50

45

800
600

MGC has been voluntarily conducting the surveys
and reduction of the PRTR chemicals listed by theJapan Chemical Industry Association (JCIA) releaseand transfer from our plants. In fiscal 2007, we had
specified 75 chemicals as those to be assessed outof 481 chemicals specified by JCIA. The total
release amount of these chemicals was 491 tons
(decreased by 39 tons, 7% from the previous year).
The key factor is the reduction of Dichloromethane
release, the same as the case of PRTR listed
chemicals.

70

73

70

Total chemical number
VOC number

517

500

1998

1999

2000

2001

2002

507 443 547 484 530 462 491

2003

21

20

20

2004

2005

2006

2007

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

145
63
283
227
40
304
310
253
224
42
299
320
312
54
266
108
-

(tons/y)Dichloromethane
XyleneHydrogen fluoride and its water soluble salt
TolueneEthylbenzene
Boron trifluoride and its compounds
Formaldehyde
Hydrazine
1,3,5-Trimethylbenzene
Ethylene oxide
Benzene
Methylmethacrylate
Phthalic anhydride
Epichlorohydrin
PhenolInorganic cyanide
Others (29 chemicals)
Total (45 chemicals)

21

118.9
76.4
17.8
7.5
7.3
3.1
2.9
1.9
1.8
1.6
1.4
1.2
0.4
0.3
0.3
0.1
0.2
243.2

Air
118.9
76.4
0.4
7.5
7.3
0.1
1.0
0.3
1.8
1.6
1.4
1.2
0.4
0.3
0.0
0.0
0.1
218.8

Breakdown
Water
0.0
0.0
17.3
0.0
0.0
3.0
1.9
1.7
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.1
0.1
24.4

(FY)

25

0

* The actual results in FY 2006 were revised

Release amountChemicals

425

21

The registered chemicals on the basis of the PRTR Law (results in FY 2007)
Reg.
No

VOC release to atm.

7550

* The actural results in FY 2006 were revised

No.

75

816

0

0

73

Total release volume

Soil
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

Transfer
total(tons/y)
8.7
50.4
1.0
25.6
0.0
0.1
16.1
0.0
10.2
0.0
0.0
13.8
14.5
0.7
43.4
0.0
208.6
393.0

Volatile Organic Compounds(VOC)

Reduction Results ofchemical release
In the Responsible Care mid-term target (20062010), MGC has set the target to reduce 10% VOC
release compared with fiscal 2004. In fiscal 2007,
release of PRTR listed chemicals decreased by 15%
compared with fiscal 2004. On the other hand,release of the JICA's PRTR listed chemicals and
VOC chemicals decreased by 3% and 4%,
respectively. MGC continues to work on the
reduction of VOC chemicals release.

Main VOC chemicals are included in the JICA's
PRTR listed ones and MGC is concerned with 20
chemicals out of 75 listed VOC in fiscal 2007.
Among 20 chemicals, 10 are chemicals specified by
PRTR law such as Dichloromethane, Xylene etc.
and the remaining 10 are Methyl alcohol, Methyl
ethyl ketone, n-Heptane etc.,
The annual release amount of these chemicals to
atmosphere was 425 tons, 87% of the total releaseamount of PRTR chemicals specified by JICA.
For this reason, the VOC release trend is almost thesame as that of the JICA's PRTR
VOC
VOC is the acronym of Volatile Organic Compounds.

22

Approacchh to the Atmosphere, the Waters and tthe Soil

Zero Emisssion of Wastes

In order to prevevent ppollution, contamination of the atmosphere, waters and soil, MGC has conducted measures for
reducing
d i pollu
ollutionll ti aandd contaminationt i ti ffurther
th while
hil conforming
f
i to
t th
the llaws, ordinancesdiandd regulllations.
ti
It iis an
approachoach by the side and measure different from the release reduction of the above mentioned PRT
TR chemicals.

The zero emission
on in
n MGC has been defined as the decrea
asing the amount of final disposal to 0.3% orlless off th
the amo
mountt off wastet generation
ti
by
b the
th promotionti
of 3Rs. Under this definition, MGC has beenworking on achievemament of zero emission by 2010.
3Rs; Reduce, Reuse and Recycle

phosphorus, pH, etc. are measured, and the operationof waste water treatment facility is strictly managed tokeep the values regulated by laws. The COD value andtotal phosphorus in fiscal 2007 have slightly decreased
but total nitrogen has been flat compared with theprevious year.

Prevention of Air Pollution
Sulfur oxide (SOx), nitrogen oxide (NOx), soot and dust
etc. in the exhaust gas discharged from combustion
facility, such as boiler, are measured, and theirconcentrations are strictly managed to keep therequired values by laws and regulations. SOx emission
was 279 tons in fiscal 2007, decreased by 134 tons,
32% from the previous year. This is the result of having
converted fuel from heavy oil to natural gas. On theother hand, as for the boiler fuel, soot and dust haveslightly increased because the use ratio of heavy oil
increased by shortage of by-product gas fuel of steel
plant. At present, countermeasures are underconsideration.

COD in effluent discharge(tons)

1,000
750
500

504
392

308

250
0

2000

2001

2002

212
2003

240
2004

269

2005

289

2006

268

(tons)

1,500

Zero emission status of waste

The amount of waste generation (increased by 5%),waste to off-site (increased by 4%), and final disposal
for landfill (increased by 85%), were increased in fiscal
2007 from the previous year. The reason for thesignificant increase of final disposal for landfill was due
to generating of temporary remaining soil (total 285
tons) by relocating treatment of sludge dryness facility
at the Mizushima plant.
The reduction of recycling amount was due to thedecrease of generated waste oil etc. used as fuel.

Four out of 8 production plants achieved the zero
emission in fiscal 2007.

Trend of waste generation, recycling and transfer

Zero emission : Final disposal for landfill÷Generated amount ≦0.3%

120

0

408

2000

384

2001

422

2002

417

2003

280
2004

409

2005

412

2006

279

(tons)

750

NOx emission

766

724

57.5

60

640

21.6

20

401

476

479

414

0

353

353

2006

2007 (FY)

2000

91.6

67.6

20.2
2001

Transferred amount

767

792

918

948

0

927

2000

2001

2002

2003

2004

2005

Total phosphorus in effluent discharge

110.8
94.2

86.4

98.5

64.1
17.4
2002

(tons)

Final disposal amount(tons)
2,000

51.0

45.6

41.5

14.1

14.3

11.0

2003

2004

2005

29.7
7.9

26.2
8.2

2006

2007

1,149

800
2002

2003

2004

2005

2006

2007 (FY)

Soot and dust emission

45

47

2000

2001

62

53

65

73

74

2004

2005

2006

71

2007 (FY)

0

2002

2003

* As for Sox, NOx, soot/dust and COD, actual results in the past were revised.

50

2000

52

2001

62

2002

76
56

2003

58
42

2004

2005

528

521

2000

2001

2002

2003

2004

285

516

400
0

(tons)

100

0

527

100
50

150

66

1.59%

0.19%

Naniwa plant

0.12%

0.12%

Saga plant

18.2%

0%

The used equipments that contain PCB are under thestrict control by MGC based on PCB special measuremethod.
MGC completed early treatment registration to theJapan Environmental Safety Corporation (JESCO), butthere was no actual treatment results in 2007.
The used equipments that contain low concentration of
PCB is under the strict close control by MGC until the
final treatment procedure is decided.

Disposal amount due to temporary factor

1,748

1,200

2001

Yamakita plant

Control of PCB (Polychlorinated biphenyl)

150
2000

0.23%

(FY)

1,600

200
500

0

2007 FY

0.24%

The Yamakita plant and Saga plants achieved zero
emission in fiscal 2007. On the other hand, theMizushima plant, which achieved zero emission in2005 and 2006, could not achieve it in fiscal 2007 dueto the above mentioned reason, but is expected toreach the goal in fiscal 2008.

Trend of final disposal(tons)

872

88.9

40

500

2007 (FY)2006 FY
Niigata plant

250

1,500

1,000

733

95.1

80

Total nitrogen in effluent discharge
1,000

Recycled amount

117.7

100

500

Generated amount(k tons)140

COD is the acronym of Chemical Oxygen Demand.

1,000

Zero emission achievement plants

2007 (FY)COD

SOx emission

Results of waste reduction

2005

293

256

2006

2007

(FY)

Results of waste treatment in fiscal 2007

49

Investigation of Soil Contamination
2006

2007 (FY)In the case of facility abolition or construction, thepollution situation of soil and groundwater is investigatedaccording to regulations and ordinances, and therequired measures are conducted. MGC had conducted
land pollution investigation at the Tokyo Techno-Centerand found that the concentration of a chemical exceeds
prescribed standard. Countermeasures to thisenvironmental problem had been conducted sinceAugust 2007 and completed in August 2008.

Prevention of Water Pollution
The waste water from the production process isdischarged to the river, sea and sewer throughtreatment facility of pH control, biodegradable
processing etc.. The COD value, total nitrogen, total

23

Waste
regenerated
amount98,543 tons
(100%)O n
Si te

Recycled
amount20,911 tons
(21.2%)

Reducedamount69,387 tons
(70.4%)

Recycled
amount5,338 tons
(5.4%)

Reducedamount2,367 tons
(2.4%)

Outsidetransferred
amount8,246 tons
Internal
disposalamount0 ton (0%)

O ff
Si te

24

Final disposal
amount
541 tons(0.5%)

Environ
nmental Commmmunications

Responsiible Caarre Activities in Affiliates ①

MGC is strong
ngly aware of its role as a mmember of society, and strives to earn the trust of the publicthroughthh ititss pursuitp
it off a range off communication activities relating to the environment.

convention, which was held at Tokyo Big Sight from
November 6 to November 9, 2007. MGC attracted
interest from a large number of attendants at theexhibition, holding exhibits and demonstrations forseven products, including DMFC (direct methanol fuelcell) and damping material Neofade R.

Information disclosure
Environmental report publication
MGC issues an environmental report (renamed the
Responsible Care Report in 2007) outlining MGC
initiatives in Environment and Safety in both Japaneseand English, and distributes this to government, related
businesses and local communities. These reports areavailable on the MGC website, as are reports fromprevious years.
MGC's information disclosure also includes publicationof annual environmental site reports for certain plants.

Niigata Plant

Address : 3500 Matsuhama-cho, Kita-ku, Niigata City, Niigata 950-3121, Japan
Phone : +81-25-258-3474

With the Japan Sea to the north and the river Agano to
the west, the Niigata plant is located in an area ofplentiful water and beautiful greenery. The plant
pursues RC activities with the basic policy focuses ofzero accidents, zero occupational injuries andenvironmental preservation. Despite these efforts,
however, a serious accident occurred at the Niigata
plant in December 2007. All employees at the plant
have returned to the fundamental principles of "zeroaccidents, zero occupational injuries" and "safe, reliable
and stable operations", and are working to enable heplant to earn the trust of all members of the community.

Main products● Methanol, Ammonia,
and their derivatives● Methaxylene diamine● MX Nylon● Bio-related products

Reserve forest area

Working with the community
INCHEM TOKYO 2007

Social contribution
Previous environmental reports

Niigata plantsite report

Acceptance of trainees from OPCW*
OPCW, an international organization for the
implementation of legislation prohibiting chemical
weapons, carries out company training for technicians indeveloping countries at modern chemical facilities inadvanced countries. The purpose of the training is totrain specialized inspectors to oversee compliance withthe relevant legislation.
At the request of the OPCW, MGC accepted two trainees
from Asia to its Mizushima plant in 2007, and for sevendays provided structured practical training in MGC's
safety management system, its procedures and thelegislative background to these, with a focus on plantsafety and environmental preservation as main themes.

Participation in JRCC community dialogue meetings• March 17, 2007
A JRCC community dialogue was held for thenorthern area of Niigata Area, organized andpresented by MGC's Niigata plant. Although the
JRCC has only four member companies in thenorthern area of Niigata, more than half of theparticipants were either local residents orgovernment officials, ensuring that this forum forlively discussion held to true to its name as acommunity dialogue.

Clean up of illegally dumped garbage
In October 25, 2007, MGC's Niigata plant participated in
activities to clean up illegally dumped garbage near theeast port of Niigata. The area around the east port of
Niigata is of key importance to the Niigata plant since it
serves as a base for the receipt of raw materials andshipping of finished products by the plant and we also
have several natural gas bases in the area. Residents of
the area expressed gratitude for the activities carried out
during the cleanup day.

The area between the Niigata plant and Youkou housing
estate, designated as a reserve forest area by Niigata
Prefecture, has suffered increasing damage by pine
weevils in recent years. In 2007 Niigata Prefecture and the
Niigata plant began collaborating on a three-year forest
conservation program to address this problem. Several
species of trees are being planted as part of the program,with Niigata Prefecture planting black pine on the MGC
side of the housing estate, and MGC sowing seeds ofcheery blossom, Japanese zelkova, camellia, and bamboo
leaved oak on the housing estate side of its property.

Youkou Residents Association visits the
Niigata plant

Environmental impact data (2007)

On September 2, 2007, forty members of the Youkou
Residents Association attended a meeting at the Niigata
plant to discuss the forest conservation program, as well
as explain the plant's response to local residents'
complaints concerning vibration, noise, sirens and roadmanners.

*OPCW : Organization for the Prohibition of Chemical Weapons
Water consumption (km3)499

NOx emission (tons)

407

SOx emission (tons)
Total drainage volume (km3)
COD emission (tons)
Waste transferred offsite (tons)• February 23, 2007
Community dialogue for Kashima area (attended by
the Kashima plant)

Final disposal waste (tons)

Disaster aid
MGC provided monetary donations through theJapanese Red Cross Society for victims of the
Szechuan earthquake in China and cyclone Nargis in
Myanmar.

Participation in environment-related exhibition
MGC Group had a booth at the Inchem Tokyo 2007

25

13,957

GHG emission (as CO2) (k tons)

PRTR substance name
Ethylene oxide
Methyl methacrylate
Vanadium pentoxide

0
9,484
60
3,103
144
Release (tons)
1.6
1.2
0

Transfer (tons)
0
13.8
2.8

26

Respons
sible CarC re Activities in Affiliates ②

Mizushima Plant

Address : 3-10 Mizushima Kaigan Dori, Kurashiki City, Okayama,712-8525, Japan
Phone : +81-86-446-3822

Seto Ohashi, the bridge to link Honshu andShikoku island celebrated the 20th anniversary
by the end of this year. The Mizushima plant also
has a lot of aging equipment, and the approach
for inspection repair of carbon steel piping andimprovement of self-security management in 3year plan has been conducted. Moreover, theissue of "KANPO • NEWS", and activity of
renewal of safety pocketbook are also tackled asa new educational campaign to remind of the
explanation of related regulations and safety
work.

Main products● Xylene isomers● m-Xylene derivatives● Specialty aromatic
products● Polyols

Disaster prevention training

MGC RC Repot 2008

Kashima Plant

Address : 35 Higashi Wada, Kamisu City, Ibaraki 314-0102, Japan
Phone : +81-299-96-3121

With the lake Kasumigaura to the north, the river
Tonegawa to the west and the sea Kashimanada to
the east, the Kashima plant is located in the Kashima
sea side industrial zone surrounded by theseadvantages. Taking the advantage of the location ofthis industrial complex, we are aiming at the
improvement in safety culture of not only our plant but
the whole industrial complex by cooperating withneighboring companies to exchange periodicallyinformation about Occupational Safety and Health,
Disaster Prevention, Environmental Prevention and
Safety of Chemical Substances.

Main products● Hydrogen peroxide● Polycarbonate

Safety activities

Disaster prevention activities
Subcontractors
also participatesin the safety
meeting (safetyday)

Firefighting training at
Mizushima industrial complex

New type of fire engine

Conduct various training
in preparation for the emergency

Emergency lifesaving drill
by rescue team

Safety convention

Disaster prevention training

Overall safetyconvention at
annualshutdown

The safety convention is held in July every year with
subscribed posters and elected excellent works.

Environmental impact data (2007)
Water consumption (km3)

12,490GHG emission (as CO2) (k tons)

685

NOx emission (tons)

475

SOx emission (tons)

275

Total drainage volume (km3)
Waste transferred offsite (tons)

Other topics (2007)

140

NOx emission (tons)• Mr. Ishida, Manager of the Mizushima Aroma production
section was commended in the section of the person in
charge of excellent production self-security managementof the Mizushima industrial complex district at the
Okayama High Pressure Gas Safety convention.
• 15 persons participated in "Refresh Mizushima port clean
operation".

309
Release (tons)
76.4

Transfer (tons)
50.4

17.8

0

7.3

0

27

Total drainage volume (km3)

191
7

13

Waste transferred offsite (tons)

486

PRTR substance name
Dichloromethane

Environmental activity was commended in theenvironmental management section of "Earth-friendly
corporate commendation in fiscal 2007" in the earth
environment forum on June 22, 2007.
ISO 14001 acquisition, improvement of unit consumptionof energy and CO2, reduction of COD, atmospheric soot,and industrial waste emission were evaluated.

0
1,661

COD emission (tons)
Final disposal waste (tons)

Receiving environmental award
from Ibaraki Prefecture

1,896

GHG emission (as CO2) (k tons)
SOx emission (tons)

2,705

Final disposal waste (tons)
PRTR substance nameXyleneHydrogen fluoride andits water-soluble salt
Ethylbenzene

Water consumption (km3)

11,116

COD emission (tons)

Toxic gas leakage emergency drill

Environmental impact data (2007)

8
Release (tons)
114.1

Transfer (tons)
2.8

28

Respons
sible CarC re Activities in Affiliates ③

Yokkaichi Plant

Address : 2-4-16 Hinagahigashi Yokkaichi City, Mie 510-0886, Japan
Phone : +81-59-345-8800

Facing the Ise bay in the east and the Suzuka
mountain range in the west, the Yokkaichi plant
is located in the corner of a very scenic Yokkaichi
industrial Complex. In the past, there was also
time that it was called "town of pollution", butthere is no even such image at present. At the
Yokkaichi plant, we have conducted our
production activity in consideration of the living
environment such as conversion of fuel from coal
to natural gas for boiler, assessment ofenvironment risk for newly installed facility etc.

Main products● Hydrogen peroxide● Chemicals forelectronic industry● Polyacetal

Acceptance of plant tour

Working with the community

MGC RC Repot 2008

Yamakita Plant

Address : 950 Kishi Yamakita-machi, Ashigarakami-gun, Kanagawa,258-0112, Japan
Phone : +81-465-75-1111

Located close to Sakawa river and surroundedby Fuji, Hakone and Tanzawa mountains, theYamakita plant has been operated in theadvantaged environment. In order to keep thisadvantaged environment, we can not depend too
much on abundant water resource but must
attempt to save resources and energy. In
addition, we continue to work on strengthening
further trust relationship with local residents byintroducing measures for the RC activities of
MGC and so on.

Main products● Derivatives ofhydrogen peroxide● Persulfates

Environmental safety activity

Explanation to junior highschool students who visitedthe plant

Environmental safety conference of Southernindustrial area
The 15 factories located at the Southern of the Yokkaichi
industrial complex, neighboring autonomous chairman,
vice chairman, and environmental safety section,
firefighting headquarter of Yokkaichi city have a meeting
twice a year. The announcement of annual shutdown
schedule, plant expansion schedule, report rule of theaccident etc. are informed. We held this meeting as
managing company on August 22, 2007.

Street guidance of traffic safety
Street guidance of traffic
safety was performed at thecrossing of narrow roads andfor heavy traffic.

October 24, 2007
Participated in the section of compact power pump of thefire fighting competition sponsored by fire prevention
safety association.
(Messenger at the end of communication from the 1st
member to the commander)

June 13, 2007
Working on the environmental load reduction of the factory
was evaluated and given "environment excellent special
award" by the in-house commendation system. As a result,the memorial tree was planted.

Cleanup activity around the plant
Cleanup activity around theplant at the National
Occupational Health Week

Environmental impact data (2007)
Water consumption (km3)92

NOx emission (tons)

30

SOx emission (tons)

3

Total drainage volume (km3)45

Waste transferred offsite (tons)

614

PRTR substance name
Hydrazine
Formaldyhyde

Water consumption (km3)

Measures against noise
Although the renewal of a chimney along with conversionof fuel from coal to natural gas for boiler and repair work of
attached facility were carried out, residents living close to
the factory complained of the noise after that. This
problem is solved by installing a silencer at the top of thechimney after investigating the cause and measures while
consulting with related administration.

6,128

COD emission (tons)
Final disposal waste (tons)

Environmental impact data (2007)

7,500

GHG emission (as CO2) (k tons)

4
Release (tons)
1.9
2.0

Working with the community

Transfer (tons)
0
16.1

29

http://www.pref.kanagawa.jp/osirase/iso/98/econet00.html● Cleanup activity around the plant● Opening the factory gymnasium (local high school)● Acceptance of trainees for work-study(local junior high school)● Participation to local activity and event
Yawata shrine festival
Summer festival organized by resident's association
flower road (planting, weeding) etc.

6,765

GHG emission (as CO2) (k tons)

31

NOx emission (tons)

2

SOx emission (tons)

0

Total drainage volume (km3)

5,856

COD emission (tons)

10

Waste transferred offsite (tons)

425

Final disposal waste (tons)
PRTR substance name
Hydrogen fluoride andits water-soluble salt

● Information forwarding to Kanagawa ECO network

1
Release (tons)

Transfer (tons)

0

1.0

30

Respons
sible CarC re Activities in Affiliates ④

Address : 6-1-1 Niijuku Katsushika-ku,
Tokyo 125-8601, Japan
Phone : +81-3-3627-9411

Tokyo Techno-Center
Conducting environmental measures for soil
pollution at the Tokyo Techno-Center since lastyear, and TTP (Tokyo Techno-park) construction
work have been started since March this year.
Before starting the construction work, MGC andconstruction company held the explanatory
meeting to neighboring residents to get theirunderstanding in advance.
In addition, we continue to conduct the cleaningof the outside of the plant once a month andconcentrate on environment and safety activities
as a business office that develops with thecommunity in the future.

Main development
themes● Electronic materials● Oxygen absorbers

MGC RC Repot 2008

Niigata Research Laboratory

Address : 182 Tayuhama Shinwari, Kita-ku, Niigata
City, Niigata 950-3112, Japan
Phone : +81-25-259-8211

The Niigata research laboratory is adjacent to
the plentiful greenery of the Niigata plant. Using
this advantage, utility receiving and activatedsludge treatment of experimental drainage or
combustion of experiment waste etc. are carriedout there.
The Matsuhama region is popular for the festival
event from old times and young people arecalled to participate in the event once a year.
Every one understands what he (she) should doin daily activity to develop the RC activity.

Main research themes● Process improvement● Catalyst● Pharmaceuticalintermediates● New energy source● Biotechnology● Life science

TopicsMonthly outer cleaning scenery

Taking part in the self-defense fire fighting
in the annual inspection meeting

Tokyo Research Laboratory
The RC activity of the Tokyo research laboratory
is performed by 11 groups including the analysis
center. Various chemicals are treated forresearch. Therefore, prior check of safety istaken seriously. As a result, there is no accident,
no disaster until today. The surrounding is anurban redevelopment area of the high-riseapartment building. In order to assure thecoexistence with the neighboring area,
environmental patrol in the plant is conducted
and environmental safety activity is promoted.

Tokyo Techno-Center A hall
received the certification(excellent mark) as the"excellent fire prevention
object" from the Kanamachi
fire department on August
31, 2007.

Address : 6-1-1 Niijuku Katsushika-ku,
Tokyo 125-0051, Japan
Phone : +81-3-5699-9711

Main research themes● Electronic materials● Specialty chemicals● Environmental
chemicals● Nanotechnology● Next-generationmaterials

The 5S activity (as RC education) was conducted.

RC campaign gathering

31

TopicsThe
Niigata
researchlaboratory has continued therecord of "no accident" and"no disaster" for 22 years.

Taking part in the Matsuhama festival and having
direct relationship with loca people are important.

A fire fighting drill was performedby actually using a fire extinguisher.

Hiratsuka Research Laboratory
At the Hiratsuka research laboratory, we haveconducted the extraction of "near miss" as our
main safety and health activity. By having
purchased the JSP vacant lot, the lot area
became twice, and the maintenance and check
activity of safety-related facility increased largely
but we do it energetically.
As a part of our contribution to the region, we
conducted cleaning activity around the company,
planting at the flower garden of the Sagami riverarea and accepted the laboratory tour for local
high school students.

Conducted flower planting and cleaningat the Sagami river garden and the vicinity

Address : 5-6-2 Higashiyawata Hiratsuka City,
Kanagawa 254-0016, Japan
Phone : +81-463-21-8600

Main research themes● Specialty resins● Paints, adhesives● Packaging materials● Resist materials

Laboratory tour of Ohara
high school students

32

Disaster prevention training (50 companies
participation) is carried out at the end of
August every year. We also took part in it.

MGC Groou
up's En
nvironmental and Safety Activities ①

MGC Group's Policies on
Environment and Safety

MGC RC Repot 2008

MGC group's environmental
and safety conference[Environmental and safety targets]

MGC Group's topics

The 14 affiliates that deal with chemical substancesof MGC group have been promoting theenvironmental and safety activities in MGC group's
environmental and safety conference (hereafter,
conference).
The main activities are as follows.

Zero accident, Zero occupational injury andEnvironmental preservation[Fundamental policies]
Ensuring of health and safety in our operations
Securing security management of facilities andincreasing self-maintenance technologies and skills
Reducing environmental loads in business activities
Ensuring safety in use, handling and disposal of
products
Developing environment-friendly and safetyconscious products and technologies
Ensuring environmental preservation and safety inthe logistics of obtaining raw materials and storingand delivering our products
Enhancing of society's confidence to us

MGC group's environmental and safety meeting
The meeting is held twicea year for reporting orreviewing the annual
target, result of activities,
status of accident andoccupational injury etc. of
MGC and each affiliate.

JSP Kanuma 1st plant

At MGC Head OfficeEnvironmental loads by MGC
group

Participated in "Eco-life fair in
Kanuma".
Panelrelatedtoenvironmental-friendly products andrecycling was exhibited.

The environmental and safety activities of several
affiliates are inspected every year by Director in
charge of environment and safety in MGC. The
inspections of Japan U-PiCA Co., Ltd, ElectrotechnoCo., Ltd, MGC Filsheet Co., Ltd were conducted in
2007.

The number of production sites in MGC group
Fiscal 2006 (MGC and 14 affiliates) Fiscal 2007 (MGC and 14 affiliates)

Electrotechno Co., Ltd.

8 production sites

MGC

8 production sites

Affiliates

33 production sites

Affiliates

32 production sites

Toyo Kagaku Co., Ltd.
Award winning of environment
person of merit of Mitake-cho

FY 2007

Energy consumption (as crude oil)
Water consumption

103kl
km3
%
%
%
%
%

671
47,994
2
4
56
35
3

689
47,781
2
3
55
36
3

Unit

FY 2006

FY 2007k tons
tons
tons
tons
tons

1,847
463
1,082
63
1,311

1,766
328
1,006
86
1,241

km3
tons
tons
tons
tons
tons

39,137
342
390
77
35
0

39,490
309
381
73
35
0

tons
tons
tons

36,245
1,951
837

40,346
1,954
914

Breakdown

FY 2006

Tap water
Ground waterIndustrial waterRiver water
OthersOUTPUT
Emissions to atmosphere
GHG emission (as CO2 )SOx emission
NOx emission
Soot and dust emissions
Release of PRTR substances
Release to water area
Total drainage volume
COD emission
Total nitrogen emission
Total phosphorus emission
Release of PRTR substances
Release to soil
Generation of waste
Transferred off-site
Final disposal
Transfer of PRTR substances

Fire fighting drill

Shin Sanso Kagaku Co.

MGC

Unit

Japan Circuit Industrial Co., Ltd.

The President message, lecture ofsafety, report on safety activities,
commendation of safety activities are
conducted on March 15 every year
as "a day to think of safety".

Environmental and safety inspection

The following tables show the environmental loads
by MGC in fiscal 2006 and 2007.

INPUT

Japan Pionics Co., Ltd.

Inspection at
Electrotechno Co.

Participated in cleaning activity ofcommuting road in Spring andAutumn sponsored by Seaside
Corporate Union since operation.

Participated in Saigo village ekiden
road relay with wonderful results,
won the championship the year
before last and 2nd place last year.

Inspection at
MGC Filsheet Co.

Japan Finechem Co., Ltd.

Environmental and safety inspection foroverseas affiliates
The environmental and safety inspection foroverseas affiliates are also conducted to support
their environmental and safety activities even if they
do not participate in the conference. The inspectionsof the two Korea affiliates (Samyoung Pure
Chemicals Co., Ltd. and Korea Engineering Plastics
Co., Ltd.) and one Taiwan affiliate (MGC Pure
Chemicals Taiwan INC.) were conducted.

MGC Filsheet Co., Ltd.
Eiwa Chemical Industrial Co., Ltd.

The
comprehensive
disasterprevention drill with adjacentcompanies was conducted.

5S meeting in new 5S small group
activityFire fighting training drill

Fudow Co., Ltd.

Yonezawa DIA Electronics Co., Ltd.
At Korea Engineering
Plastic Co., Ltd.

(The total in FY 2006 was revised after checking the number of affiliates and production sites)

33

At MGC Pure Chemicals
Taiwan INC.

Company-made lantern at Uesugi
snow lantern festival

Japan U-PiCA Co., Ltd.
Thorough measures of leakage
prevention at work during
annualshutdown.

34

Hold the study meeting of C-TPM
activity again and again for all
employees. The TPM introduction
was declared in May and the activity
was started on the basis of "at first,
arrange and put in order".

MGC Groou
up's En
nvironmental and Safety Activities ②

A G Internat
A.G.
International Chemical
Company Inc.

Eiwa Chemical IndustrialCo., Ltd.

Manufacture and sale of purified isophthalicacid
Tokyo Sakurada Bldg., 1-1-3, Nishi-Shinbashi,
Minato-ku, Tokyo 105-0003, Japan
Phone : +81-3-3503-4811 http://www.agic.co.jp/

President Yoshio Kawazoe

MGC RC Repot 2008

JSP Corporation

Manufacture and sale of blowing agents

Manufacture and sale of foamed plastics

Daido Seimei co. Kyoto Bldg., 595-3, Sanjio-sagaru Karasuma-dori,
Manjuya-cho, Nakagyo-ku, Kyoto-City, Kyoto 604-8161, Japan
Phone : +81-75-256-5131 http://www.eiwa-chem.co.jp/

Shin-Nisseki Bldg., 3-4-2, Marunouchi, Chiyoda-ku,
Tokyo 100-0005, Japan
Phone : +81-3-6212-6300 http://www.co-jsp.co.jp/

President Yasuki Yamase

JAPAN FINECHEM Co., Inc.
Manufacture and sale of chemical products
and electronic parts
Kayaba-cho Nakano Bldg., 1-22-15, Shinkawa,Chuo-ku, Tokyo 104-0033, Japan
Phone : +81-3-3552-7611 http://www.jfine.co.jp/

President Rokurou Inoue

President Norio Hakuta

We achieved zero accident, zero occupational
injury in 2007. We implemented near-missreporting activities, occupational safety risk
assessment, and energy and GHG gas emissions
unit improvement, among other environment andsafety initiatives. In addition, we prepared 155
procedural cards for reading prior to non-routine
work to improve work safety; these cards are also
useful for educating new recruits.

Our Kinuura plant is located on coastline near Ise
Bay. Extensive shellfish beds are located all
around the bay from March to May, and even areas
near plant wastewater outlets provide fishinggrounds for wild clam. To prevent red tide, we
eliminate nitrogen from our wastewater, andcontinuously monitor the water quality of ourwastewater. Unique in Japan as a manufacturer oforganic blowing agents, we are strongly committed
to fulfilling our social responsibility.

We implemented environmental gas emission
reduction measures at our nine plants from
Hokkaido to Kyushu. In particular, the start ofoperation in October 2006 of our Kanuma
distribution center is expected to result in a
substantial reduction in distribution-related
emissions. As part of our effort to eradicate
accidents we implement safety initiatives at eachplant, including hazard prediction activities andnear miss reporting case studies.

The Sakaide plant was established in an industrial
area bordered by salt fields. The salt fields were
subsequently abandoned and the zone
redeveloped as a residential housing area. With
residential housing in its immediate vicinity, theplant has faced strict demands relating to air
quality, odor, and other issues. We have reinforced
our equipment for eliminating gas emissions andimplemented measures to reduce smoke
emissions from boiler chimney.

MGC Filsheet Co., Ltd.

Electrotechno Co., Ltd.

SHIN SANSO KAGAKU Co.

Toyo Kagaku Co., Ltd.

Manufacture of copper clad laminates forprinted circuit board

Manufacture of PC sheet

9-41, Aza-Sugiyama Oaza-Yone, Nishigo-mura, Nishishirakawa-gun,
Fukushima 961-8031, Japan Phone : +81-248-25-5000
http://www.ab.auone-net.jp/~electro/index.html

4-2242, Mikajima, Tokorozawa-City, Saitama359-1164, Japan
Phone : +81-4-2948-2151 http://www.mgcfs.jp/

President Yukio Suzuki

President Toshio Kawasaki

The Tokorozawa plant is on the edge of a residential town witha view of tea fields and the Chichibu mountains. Around 40% of
our employees are housewives working part time andtemporary staff over the age of 60. Building on our experienceand cooperating with employees, we carried out activities toimprove our initiatives in the areas of the environment, safety,
and product quality, and reports on progress with these
activities are presented at 5S meetings each month. The resultsof these activities are announced at the end of the year, andoutstanding achievements are rewarded at a prize ceremony.

Located in a historic castle town of the Shirakawa
clan, our plant enjoys a beautiful natural setting,with the Nasu mountain range to the south andwest, the Abukuma river in the north, and many hot
springs nearby. We have continued 5S activities formany years, and we have positioned these as thebase for all our activities. We aim to further boost
our onsite capabilities through near miss reportingand hazard prediction activities.

35

Manufacture of injection molding processed
products

Manufacture of hydrogen peroxide148-58, Yufutsu, Tomakomai-city, Hokkaido
059-1372, Japan
Phone : +81-144-55-7337 http://www.sskc.co.jp/

51-497, Aza-Dodo, Oaza-Morowa, Togo-cho, Aichi-gun,
Aichi 470-0151, Japan Phone : +81-561-39-0531
http://www.toyo-kagaku.co.jp/

President Kenji Koizumi

President Kazuo Noguchi

Located near Lake Utonai, a registered site with theRamsar Convention on Wetlands, we operate in anarea that combines natural beauty with an excellent
distribution infrastructure. Having acquired
ISO14001, all our employees have made it their top
priority to further reduce our environmental burden.
We are also cooperating with construction
contractors on large-scale maintenance work aimed
at strengthening our capabilities, reducing
environmental impact and ensuring safety.

Safety is our first priority, and at our plant, which isin a region affected by Tokai and Tonankai
earthquakes, we have installed an earthquake
warning system terminal to prevent casualties, and
we also carry out evacuation drills. Positioned on aplateau overlooking the equalizing reservoir that
supplies water across Aichi from the eastern Owari
area to the Chita peninsula, we adopt anenvironmentally conscious stance throughout all ofour production activities.

36

MGC Groou
up's En
nvironmental and Safety Activities ③

Japan Circuit IndustrialCo., Ltd.

Japan Pionics Co., Ltd

Manufacture and sale of printed circuit boards
2-1236, Kamiike-cho, Toyota-City, Aichi 471-0804,
Japan
Phone : +81-565-88-3718 http://www.jci-jp.com/

President Kouzou Yamane

Manufacture and sale of purified
terephthalic acidTokyo Sakurada Bldg., 1-1-3, Nishi-Shinbashi, Minato-ku,
Tokyo 105-0003, Japan Phone : +81-3-3506-8801
http://www.japan-pionics.co.jp/

2-3-1, Mizushima-nakadori, Kurashiki-City,
Okayama 712-8072, Japan
Phone : +81-86-446-4570

We carry out the manufacture and sale of high performance
printed circuit boards from our location in Toyota, which is in
Korankei, a gorge famous for its autumn colors. Having acquired
ISO14001 certification and established an environment andsafety department in 2006, we are implementing safety initiatives
based on near miss reporting activities, hazard prediction training,and 5S activities. We are working to preserve the natural beautyof our surroundings, conserve the Earth's environment, andachieve zero accidents and zero occupational injury.

Our two main plants are in the Shonan area. One featureof this area is that, although it has many factories, there
are also many people living here who commute to work in
Tokyo. We are therefore very sensitive to safety andenvironmental issues, and, under the guidance of local
government, participate in regional discussions to addressthese, sharing of information, as well as pursuing safety
initiatives (5S, hazard prediction, near miss reporting, andrisk assessment, among other activities).

Japan U-PiCA Co., Ltd.

Fudow Co., Ltd
Manufacture and sale of resins and moldedcomponents

Madre Matsuda Bldg., 4-13, Kioi-cho, Chiyoda-ku,
Tokyo 102-0094, Japan
Phone : +81-3-3503-3981 http://www.u-pica.co.jp

No.7th Daigo Bldg., 7-20-5, Nishi-Kamata, Ota-ku, Tokyo
144-0051, Japan Phone : +81-3-3737-0611
http://www.fudow.co.jp/e-index.html

Yonezawa DIA Electronics
Co., Ltd.

Mizushima Aroma Co., Ltd.

Manufacture and sale of gas purifiers andsurface heater

President Ryoichi Takahashi

Manufacture and sale of unsaturated
polyester

MGC RC Repot 2008

Manufacture of printed circuit board substrates
and entry sheets for mechanical drilling
446-3, Hachimanbara 3-chome, Yonezawa-shi,
Yamagata 992-1128, Japan
Phone : +81-238-28-1345

President Kunisuke Usuda

President Hidenobu Fujimori

As part of the MGC Mizushima plant within which
we are located, we pursue ISO14000 and otherenvironment and safety activities, emergency drills
and other safety management and disasterprevention activities, and safety initiatives such as
safety patrols and safety and health committee
activities.

Our factory is located at the head of the Mogami
river, in an area of rich natural beauty throughout
the four seasons, and our products include mass
molding laminates and lubricated entry sheets. In
January 2008, we achieved a continuous record of
3,000 days of zero occupational injuries. Having
acquired ISO14000 in August 2007, we are all
working as a team to further improve ourenvironment and safety initiatives.

MGC Group's main environmental products and technology■ Bio Micron L (JSP)
Completely biodegradable foam sheet with excellent durability.
Can be used at temperatures ranging from room temperature to 50 degrees, or up to 100
degrees when specially treated. Lightweight and offering superior moldability, thestrength of Bio Micron L exceeds that of other biodegradable resins. Since it is a foam
product it also enables conservation of resources.

■ Dry exhaust gas purification device (Japan Pionics)
We produce and sell an exhaust gas purification device that combines a simple flowengineered duct system with a highly effective bioclean cartridge to safely andeconomically render harmless the toxic gases emitted in the production ofsemiconductors.
President Tomihiro Ogino

President Yuuji Takamizawa

Our Fujimiya plant received an inspection by the Fuji Labor
Standards Supervision Office in November 27, 2007, and wehave been drawing from this experience as we prepare achecklist for a full range of items covering operating personnel,
equipment and devices, and environmental health, based on themotto, "Safety takes priority over efficiency." We have establishedthe system for environment and safety, giving particular emphasis
to checks of the basic conduct of operating personnel, while also
implementing risk assessment of risk and harmfulness.

Inspired by the blue sea of Shonan and surrounding
greenery, we aim to live in harmony with nature andfollow the motto "Think globally act locally" as we work toprevent environmental pollution. We also aim to carryout safe operations based on compliance with laws andregulations and through streamlining 5S, internalreporting and communication to achieve zero accidents
and zero occupational injuries.

37■ Wind turbine propellers (Japan U-PiCA)
These propellers are molded using unsaturated polyester resin.

38