The Denka Way

The
Denka
Way

Spring2024
Vol.19Contents
02 Business Value Creation

Chiba Plant Begins Chemical
Recycling of Polystyrene

08 Management Value Creation

Digital & DX

Spring2024 Vol.19

Starting a Human Capital Development
Program for Advancing Digital Application
and DX!

15 A Specialist’s

Perspective

16 Introduction of New

Executive Officers

18 Denka TOPICS

Publisher: Corporate Communications Dept., Denka Co., Ltd.
Nihonbashi Mitsui Tower, 2-1-1 Nihonbashi-muromachi, Chuo-ku, Tokyo 103-8338
Editor-in-chief: Hiroyuki Yamamoto / Published: April 1, 2024

The Challenges ofDenka in Pursuit ofa Recycling-oriented
Society

Unauthorized reproduction
prohibitedSp e c i a l Fe a t ure 1

A new way to recycle

Mission 2030

Chiba Plant Begins Chemical Recycling of Polystyrene

Business Value Creation

The polystyrene resin chemical recycling plant in Denka Company Limited’s Chiba Plant began operations in March 2024.
The plant is part of new initiatives to recover used polystyrene products, such as food trays, and chemically decompose andrecycle them as raw materials for plastic products. In this special feature, we introduce Denka’s efforts to contribute to creatinga decarbonized, recycling-oriented society and to reducing greenhouse gasses through recycling used plastic.

Key facilities inachieving Mission 2030

Denka has determined the promotion of a circular economy of styrene-based packaging
materials stated in its management plan “Mission 2030” to be a priority initiative and has set
the establishment of a consortium for the social implementation of chemical recycling as a KPI
for 2030. The operation of the polystyrene chemical recycling plant is one step toward realizing
the above goals.
Denka aims to raise the value of styrene products as environmentally friendly products in
the Sustainable Living area, a focus area of Mission 2030, through new recycling methods.
Overview of
the chemical
recycling plant

Facilities
Recovery facilities that recover styrene monomer
through polystyrene depolymerization

Annual processing
capacity
3,000 tons

Location
Within Denka’s Chiba Plant(Ichihara City, Chiba Prefecture)

Date operations began
March 2024

Denka Group

Issues of using
polystyrene

2

The Denka Way | 2024 Spring

Polystyrene (PS) has a wide range of uses,
including LCD TVs and transparent resin products such as food containers and cosmetic
containers, and is an indispensable material
for life in a prosperous society. However, in
recent years, the demands placed on polystyrene have become increasingly strict with theincreased focus on the marine plastics issue,
carbon neutrality, and other environmental
issues.

Over 60% of the Japanese demandfor polystyrene is for food packaging, butconventional recycling methods make it
difficult to reuse in applications that come into
contact with food due to problems in quality
and safety. Thus, Denka and TOYO STYRENE
Co., Ltd., an equity-method affiliate, believed
it was necessary to build a new type ofresource-recycling system and decided toco-operate a chemical recycling plant.

Maruzen Petrochemical

Denka

TOYO STYRENE

Denka

Denka Polymer

Ethylbenzene

Styrene Monomer

Polystyrene

Polystyrene Sheets

Food Containers

The Denka Way | 2024 Spring3

Manufacturing flow

Styrene Monomer

Recycling model

The chemical recycling systemfor polystyrene
The chemical recycling plant performs pyrolysis, recovery, and refining processes. Denka signed a licensing agreement with
the American company Agilyx, the only company in the world performing commercial chemical recycling operations forpolystyrene, and implemented the technology for the pyrolysis and recovery processes. In regard to the refining process, thestyrene monomer manufacturer Denka applied their separation technology for high-purity styrene monomer and handlingtechnology in designing the plant.

Denka recovers used containers (post-consumer
materials), mainly from food packaging, and mill ends
(post-industrial materials) from sheet and container
manufacturing plants (processes), and feeds them into thechemical recycling plant. The polystyrene products arethen decomposed with heat and returned to high-purity
styrene monomer. This styrene monomer is then used asa raw material in manufacturing refreshed polystyrene at
the polystyrene polymerization plant. This recycling modelallows for the polystyrene to be reused in food packaging.

Recycled Styrene Monomer

Styrene Polymerization Plant

Polystyrene

Polystyrene (PS)
Chemical Recycling Circular Model
Chemical recycling plant

Polystyrene Sheet andFood Container Manufactures

Post-Industrial Polystyrene
Post-Consumer Polystyrene

Polystyrene Products

Consumers

Chemical recycling plant
manufacturing process
Used Polystyrene

ction inal redubyPotentiio
iss nsCO 2 emsnoperatiplant oPyrolysis and Collection Process

Purification Process

Polymerization Process

40

％
n)
About ple incineratio
im
s
to
d
re
a
p
a
m
(Co
y Denkated b
*EstimRemove impurities
Raw-material syrup
is refined in the
distillation column.

Remade into polystyrene
Styrene monomer is polymerized using
conventional methods and produces
polystyrene.

Gasify materials withhigh heat
Used polystyrene isdecomposed and gasified
using high heat and cooled
into a raw-material syrup(crude styrene monomeroil) to be collected.

Crushed polystyrene is fed
into the plant
For now, post-industrial
materials are being recovered.
Recovery of post-consumer
materials will be implemented
gradually after a recovery
system has been established.

Solid

4

Transferred to existingplant
Refined syrup is transferred to Chiba Plant’s
polymerization plant.

Gasification

LiquidLiquidSolid

Post-Consumer
Polystyrene

Crude
Monomer

Recycled
Styrene Monomer

Refreshed Polystyrene

Crushedused polystyrene

Liquid containing
styrene monomer

The monomer withproperties equivalent to virgin

Reused in foodcontainers and more

The Denka Way | 2024 Spring

The Denka Way | 2024 Spring

5

Circulation

Three kinds of recycling

Toward recycling polystyrene
Denka Group’s chemical-recycling initiatives are gathering attention as a system with low-carbon emissions thatenables horizontal recycling. Denka is accelerating efforts toward resolving issues, such as establishing a system
for the stable recovery of used polystyrene and reducing the cost of recycling.

First inJapan!

Chemical recycling

Material recycling

After used plastic is thermally decomposed
and returned into chemical raw materials, they
are re-synthesized into plastic. With physicalproperties equivalent to new plastic, there
is no limit to its use and it can be used an
indefinite number of times.

A recycling method in which used plastic is
crushed, re-processed, and recycled into
plastic products. This method is widely used,
but it is difficult to prevent impurities from being
mixed into the plastic, causing the plastic’s
performance to deteriorate with each time it’srecycled and limiting its uses in terms of quality.

Chemical
化学反応

Decomposition
and molding

化学反応
reaction

Chemical Recycling Plant

Crude Oil Naphtha

Basic Chemicals

Thermal recycling(Energy recovery)

Chemical Recycling
Oil Company

A recycling method in which plastic waste isincinerated and collected as thermal energy orconverted to solid fuel for effective use. The issue with this method is the large amount of CO2
emissions given off due it using incineration.

Monomerization

Basic Chemicals
Manufacturer

erial (Mechani
Mat Recycling cal)

Denka

as
Pl

g
ct i n
e
l
l
o
C

Using

Buy

Converter

Food container Retail Stores

The Denka Way | 2024 Spring

Sort
Collecting
Point/Box

Consumer

Foamed Trays(Colored)Natto Containers

Styrofoam

Recycler/
Recycling Technology/
Machine Manufacturer

Denka Polymer Co., Ltd.

Foamed Trays

Non-foamed
Polystyrene

m
old
ing

Power Plant /Waste Treatment Plant

Ad
va
nc
Cru ed s
shi ortin
g/
ng

er
tic

Polystyrene User

ThermalEnergyFoamed Polystyrenem
Poly

Post-Industrial
Polystyrene

Denka

6

Ichihara City Office

Polystyrene recovered forchemical recyclingg
BurninPolymer Manufacturer

The collaboration of local residents andgovernments is essential to recovering
used polystyrene. Denka Group is participating in the circular economy project
being promoted by Ichihara City, home
to Chiba Plant. In Ichihara City, the trial
recovery of post-consumer materials was
implemented between July and September 2023. As a result of the trial, Denka
Group plans to collaborate with Ichihara
City to start collecting foam trays, coloredfoam trays, lactic-acid bacteria beveragecontainers, natto containers, and Styrofoam in summer 2024 and to promote thechemical recycling of these raw materials.

Power発電generation
発電

Thermal Recycling

Monomer Manufacturer

TOYO STYRENE Co., Ltd.

Recycling promotion ofTeam Ichihara

Dissolution

MonomerDenka group

Thermalenergy熱エネルギー
熱エネルギー

Corporations, citizens, and local
governments collaborate in thechemical recycling of polystyrene

Plastics

Others

Lactic Acid
Drink Bottles

Denka is building a polystyrene recovery system together with business partners and the government, toward
the future social implementation of chemical recycling
through optimal recycling of polystyrene. Additionally,
Denka is reviewing the possibility of collaborating withother local governments. Denka advances the demonstration of future plants.

The Denka Way | 2024 Spring7Sp e c i a l Fe a t ure 2

Digital DX&

Mission 2030 Management Value Creation

Starting a Human Capital Development Programfor Advancing Digital Application and DX!

Informatics
Creating new businesses by collecting
and utilizing all internal information

Not only being able to aggregate and easily extract internal sales information, research
results, and other information at will, but also being able to derive ideas that will lead tonew businesses based on collected data.

As the use of digital technologies and data is beginning to have a significant impact on businessand society, digital transformation (DX), in which companies utilize technologies and data andtransform themselves, has become a source of competitiveness. The key to promoting DX is touse digital technology and data, and not to feel fear with innovative changes. To obtain theskills and the mindset, we have started a new program at Denka that aims to develop thehuman capital who will lead in-house digital application. Based on this initiative, wewill realize the development of in-house digital human capital, which is included
under management value creation process reforms in Mission 2030, andincrease Denka’s competitiveness.

What is a DP?
Amidst a number of companies taking on the challengeof DX, Denka also needs to promote the application ofdigital technologies. It will be left behind by the times
if it does not address DX. However, DX is not something that can be realized just by introducing devices
and systems, but is something that is created usingideas and the sense of crisis that are experienced

Possibility of new work styles formedby digital application and DX

while working. We all have these kinds of thoughts andfeelings, but there are probably many people who do
not know what exactly needs to be done. The majorityof them are also unable to imagine how to realize it. The

A visualization of future work styles of Denka,
followed by the advantage of using digitalapplication and DX. Its realization may just be
around the corner.

goal of this in-house digital human capital development
program is to develop human capital who act as themediators who consider how to respond to the needfor improvement and sense of crisis felt by employees
on site. At Denka, this role has been named Digital Pilot(DP), and they will lead the way in influencing Denka
to become an organization where all employees canDigitalTwin

Predictive maintenance offacilities using digital twins*
Reproduction of real-world plant facilities in cyberspace through the use of devices
connected to the network. Facility breakdowns can be predicted using past data,
and the breakdown of devices can be prevented even with people not being on-site.
*Technology that reproduces data collected in the real world on a computer as if this reproduction was its twin

8

The Denka Way | 2024 Spring

advance digital application and DX.
In November 2023, an assessment was conducted
for some employees as the first step for this program.
This assessment judged qualities such as ideas notconstrained by common knowledge in order to faceinnovation without fear and the ability to lead the organization. Employees who cleared specific standards
proceeded to the next step as DP candidates. Goingforward, they will receive skill improvement training

Fully automatic document
preparation using generative AI
Quickly and easily prepare proposals with just a command to AI. Increased
operational efficiency and productivity can be expected as time that waspreviously used for preparing documents can be used for other operations.

Ge nerative AI

and practical training to be officially recognized as DPs
who will advance digital technology application and DX
at each workplace as the people who possess bothon-site and digital perspectives.
The current goal is the development of the firstgroup of DPs. On the other hand, although DPs are
facilitators, it will have no meaning if each and every
employee does not act with a sense of ownership. As
such, it is necessary for everyone to take time to think
about what they can do. The Digital Strategy & Innovation Department and DPs will provide support to turnthose ideas into reality.
The Denka Way | 2024 Spring

9

Roadmap

Skills required to step up to the next level

In-house digital human capital development roadmap

Aiming to be a presence that leads the advancement ofdigital technology application and DX
In order to become a Digital Pilot (DP) who advances digital technology application and
DX internally, what specific skills need to be acquired? We will introduce the details of
the in-house digital human capital development program conducted by Denka.

Three key points for the in-housedigital human capital development
program
P ointcan try as many times
1 You
as you want
As long as you are motivated, you can take part inbasic training and skill improvement training as manytimes as you want. Denka is aiming for one DP fromeach department with the process from assessment
to practical training being carried out yearly.
P oint2

Participating while remaining
in your current position isrecommended

Starting from skill improvement training, you will beable to adjust your work and take part during work
hours. Receiving this training while maintaining a
sense of crisis, sense of challenge, and sense of
purpose toward your own workplace will lead tomotivation for change.

Assessment (approx. one hour)
All employees are eligible to take the assessment. The assessment is mandatory for
G-section members (including mid-careerhires) who are in their fourth year or later andbelow the position of manager, and may betaken voluntarily or by recommendation for
all other employees. The test will primarily
evaluate mindset and stance as well as
skills in relation to digital technologies, andemployees who exceed the benchmark will
be entitled to proceed to skill improvement
training as DP candidates. Employees
whose scores do not reach the benchmark
may participate in basic training and take theassessment as many times as they like.

Six totwelvemonthsSkill improvement
training
DP candidates will utilize the online
video service Udemy and learn thenecessary skills for becoming a DP
at Denka. Employees judged to haveattained the level of skill requiredof a DP at Denka will step up topractical training. Employees who
have not yet attained this level of skill
can participate in skill improvement
training as many times as they like.

● Business reform
Ability to utilize digital technologies toreform an organization’s operational
processes, culture, and strategies● Technology
Ability to realize business
transformation and innovation, bycorrectly understanding and utilizing
digital technology.
● Security
Ability to protect information assets,systems, and from potential risks
and threats while utilizing digitaltechnology to realize
business transformationand innovation.

● Personal skills
Practical ability to effectively generate
results in interpersonal relationships
and job performance throughthe utilization of skills that include
personal communication, problem
solving, intelligence, and adaptability● Data application
Basic knowledge for generating
business value and realizing innovation by collecting and analyzing data,utilizing data and AI technology, andhelping with insights and decisionmaking

DPs will drive theadvancement of digital application
and DX in each department.
As DPs will serve concurrently in
the Digital Strategy & Innovation
Dept, incentives will be arranged
for the DP andtheir organization.

Practical training

Approx.
three
monthsPeriod of independence for practicing self-led,data driven judgments and decision-making,and driving DX advancement as a leader. DP
candidates will take on the challenge of setting
goals and resolving real business issues. They
will be officially recognized as DPs upon thecompletion of practical training.

P oint3 Arrangement of incentives“In-house digital human capital” is the theme thatshould be focused on as a top target for Denka’s
human capital strategy. Aiming to increase internal motivation and foster a climate conducive tochange, incentives will be arranged for employees
who become DPs and their organizations.

Basic training

Approx. six
monthsEmployees whose scores do not reach the benchmark
for the assessment can take part in e-learning in accordance with DX Literacy Standards (DSS-L) to acquire
DX-related literacy as businesspeople and become able
to take action through change. Basic training contains
approximately 12 hours of content for improving basic
abilities and approximately 40 hours of content, etc. that
introduces the latest case studies.

10

The Denka Way | 2024 Spring

The Denka Way | 2024 Spring11

Amid the advancement of digital application and DX, what are
the distinguishing characteristics unique to Denka and whatskills/type of mindset are required?

Q1 What does “DX” mean?

Q5

A Triggering innovation through the use of digital technologies!

A It is important to not separate workplaces from the whole

As defined by the Ministry of Economy, Trade and Industry, DX is “the utilization of data and digitalThis could involve gathering and training employees throughout Denka, or hiring knowledgeable

technologies for the transformation of operational processes, products and services, and businesses

people from external sources in order to advance digital application and DX. However, without anthemselves, in addition to the establishment of a competitive advantage through the reformation ofunderstanding of the situation on-site, it will be difficult to come up with concrete solutions and gain theoperations themselves, organizations, processes, corporate culture, and climate.” For example, just as

understanding of those around you. It is important to look toward the issues and problems in your own

physical video rental shops have fallen off due to the emergence of online video streaming services, it isworkplaces while working and learn digital skills and mindset along the way.

believed that DX has the most influence for changing conventional norms.

What is the difference between

Q2 “DX (Digital Transformation)” and “Digital Application”?
A Digital application in and of itself cannot be called “DX”!
It is often thought that converting analog to digital and digitalizing conventional methods

Answered by the Digital
Strategy & Innovation
Departmentand DX Q&A

Digital Application and DX

are “DX,” but the difference between DX and digital application is whether or not significant
changes have been brought about. “DX” is when unprecedented changes occur, such asa fundamental change in work styles, the creation of new products, or a completely new
customer experience.

QA&

The Digital Strategy & Innovation Department will answer
questions surrounding digital application and DX!

forward, what are the issues surrounding theQ6 Going
advancement of digital application and DX?
A It is necessary to create an environment where it is easy

A for DPs to work.

Digital Pilots (DPs) will be established in the future, so it is very likely that they will run into issues
such as not knowing where to start after being assigned to a department or being unable to gain
the understanding of their superiors when they begin reforms. We will establish a structure where
it is easier to work, such as by creating an organization that can support DPs when they facethese types of problems. Internal advancement of digital application and DX will become more
active by thinking of solutions together and helping other departments work with each other.

Q3 Are “Digitization” and “Digitalization” related to DX?

it be necessary to acquire digital skills and
Q7 Willfoster a digital mindset for all job types going forward?

A It will be necessary as digitalization is advancing!

“Digitization” is changing things that were once analog to digital. “Digitalization”

A refers to making processes digital. Using photos as an example, “Digitization”

However, this does not mean that all employees should aim to become DPs. There areis how photos, which were previously stored in albums, are now saved as data on

the ones who promote digital utilization and DX like DPs, and others who collect data andsmartphones. “Digitalization” is how we can now share photos over the internet without

promote digital transformation. And also there are the ones who design the system tomeeting face to face. In order to realize DX, these are the first steps.

analyze data and implement them or operate analysis mechanisms, and others who protect
the company from cyber security risks. Amid the various roles, you may be required todevelop the skills and mindset, which is necessary to carry out your vision in the future.

Q4

World Digital Competitiveness Ranking 2023
United States

Where should employees start to become DX

Netherlands

Compared to other countries, Japan has actually fallen behind to

A the point that it can be called a “digitally defeated country.” Over theSingapore
Denmark

past 20 years, the amount invested into IT domestically has not increased,
Japan is32nd
globally

Switzerland
Japan
50

60

70

80

90

100
(Score)Source: World Competitiveness Center IMD World Digital
Competitiveness Ranking 2023

12

Where does Japan rank withregard to the advancement ofdigital application and DX?

The Denka Way | 2024 Spring

Q8 human capital?

and during that time, other countries’ labor productivity has increasedA

while Japan has been in a state of stagnation. In the current times, where

It would be good to think about how to make your job easier and what you could do to finish

the application of digital technologies and data has a significant impact, it

your work even faster, and then broaden your ideas from there. The Digital Strategy & Innovationis necessary to proactively advance digital application and DX so that we

Department will think of concrete ways to achieve your ideas together with you. If there is something

can catch up to and overtake other countries.

that you have noticed or something that you want to try, please feel free to reach out.

Think about ways to make your job easier!

The Denka Way | 2024 Spring13

Specialist ’s

Perspective

Interview

Manufacturing and new developments of acetylene black“DX and digital application will greatly expand Denka’s possibilities,” said Mr. Nishiwaki of Microsoft Japan.
We asked him about the DX human capital that hold the key.

What kind of future do on-site specialists anticipate based on Mission 2030?

DX human capital will create
new value for Denka

Evangelist andExecutive Officer
Microsoft Japan Co.

Motoaki Nishiwaki

Necessity of DX human capitalin DX and Digital application
DX will lead to significant advances in busi-

PROFILE An evangelist who shares the appeal of Microsoft products and services withsociety. Since the 1990s, he has engaged in enterprise systems, databases, Java, andInternet businesses. Starting in 1996, he worked as an evangelist at Oracle for 13 years.
Since 2009, he has been working as an evangelist at Microsoft.

digital technologies and mindsets. In addition,different ideas and perspectives will enable us

employees must adopt a mindset of digitalto make changes that will transform Denka’s

reskilling to continue learning and stay updated

business. It is also important to think about

with evolving technologies.

what you want to achieve with DX and digitalness. At Denka, it will not only revolutionize theTo drive DX and digital application, it is also

application. Once DX is realized, Denka can

way you work but it also holds the potential toessential for the management team to support

further expand Denka’s business domain bycreate new materials and businesses.

DX human capital. DX comes from challenging

finding new materials and discovering new

traditional methods and continuously improving

applications for materials that have nevertechnology, companies tend to focus on short-them with digital technology. However, no

existed before.

Denka boasts the world’s largest market share for its

pursue the designs that customers require. In the course ofterm initiatives such as cost reduction. As

matter how many innovative approaches DX

Achieving immediate results in DX andflagship product—acetylene black. Known for its extremely

producing acetylene black with high battery performance,

Denka takes on the challenge of creating busi-

human capital propose, DX cannot advancedigital applications is not easy. However, I hopehigh conductivity and low impurity content, it is used in a

Harada expresses his profound trust in Nagai: “Nagai’s

ness value under Mission 2030, it is necessary

without an environment that embraces them.

that everyone at Denka will continue to chal-wide range of products, including the lithium-ion secondary

data, backed by his extensive knowledge of batteries, isto deliver high-value-added products to more

To foster a culture of DX advancement

lenge themselves without being constrained

batteries essential for electric vehicles and high-voltage

very convincing.”

customers in the future. To achieve this, it isthroughout the organization, it is critical for theby conventional methods and practices, andcables used in wind power generation. To further explore

Nagai is enthusiastic about their goal of making

essential to have DX human capital who will

management team to convey the message

create new value that has never been seen

the potential of acetylene black, Yusaku Harada and Tat-

Denka’s acetylene black the de facto standard in thestrongly promote DX and digital application.

that the company will actively promote DX andbefore.

suya Nagai engage in a constant process of trial and error.

secondary battery conductive material market. Through the

DX human capital are those who acquire

digital application, with DX human capital at the

Their current focus is on developing acetylene black

development of new products, they are aiming to achievewith characteristics suitable for lithium-ion batteries. With

Mission 2030 by having all customers recognize Denka’s

the expansion of the electric vehicle market, the advance-business value. Looking ahead, there are plans to apply

ment of lithium-ion batteries has become a pressing issue

these advancements to next-generation batteries, suchin recent years, and acetylene black has garnered attention

as all-solid-state batteries, for further business expansion.

as a necessary material. “For customers to adopt ourHarada emphasizes, “We want to accumulate technology

However, when it comes to adopting digital

digital skills and use them to lead change. They

forefront.

must not only possess digital skills, but also
have the mindset to change various aspects,
such as their company's operations, products,

Unconventional ideas will open
the way to Denka’s future

and work styles, for the better. Developing DX

Pursuing the Potential of Acetylene Black Together
Specialist

Yusaku Harada (left)
Manager, Technical Section
Production Dept. No. 4, Chiba Plant
Joined the company in 2003. He has been involved in
the development of acetylene black since 2011. As a
specialist in powder development, he conducts synthesis
research and explores productivity improvements.

Tatsuya Nagai (right)
Group Leader
Battery & Conductive Materials
Development Dept., Chiba Plant
Joined the company as a mid-career hire in 2012. Sincetransferring to his current department in 2017, he has

human capital is the first step in driving DX andAs Denka moves forward with these initiatives,

product, it is necessary to carry out both powder and solu-

without clinging to conventional methods.” The fate ofbeen working evaluation and solution development ofdigital application. To achieve this, companies

the promotion of diversity, equity, and inclusion

tion development,” explains Nagai. He collaborates closely

acetylene black lies in the hands of these two specialists.

new acetylene black developed by the Technical Section.

must provide opportunities for employees fromthat addressed in Mission 2030 will also be awith Harada, who is in charge of powder development, toall departments and backgrounds to learn

strong advantage. The mix of employees with

14

The Denka Way | 2024 Spring

The Denka Way | 2024 Spring15

Introduction of
New Executive
Officers

We will create
a better future by creating
an attractive plant

Breathe life into every job
with the goal of
business growth

Creating business value
through full-scale risk
management activities

Koji Nishimura

Taro Inada

Akinori Adachi

Executive Officer
Omuta Plant Manager

History
April 1993 	Joined Denka (Research and Development Department, Omuta Plant)
August 2017 	General Manager, Production Engineering Department, Omuta Plant
October 2020
General Manager, Engineering Department, Gosen Site
April 2021
General Manager, Production Engineering Department, Gosen Site
April 2023
Assistant Manager, Omuta Plant

As of April 1,
three new individuals were appointed
as executive officers.
In this section, we will introduce you
to them and their aspirations.

[Questions]❶ Hobbies

Aspirations as Executive Officer

The Omuta Plant has been developed as a specialty product manufacturing plant, with its main products being electronic materials and advanced
functional materials. These products directly contribute to xEVs, 5G, andinformation terminal devices, supporting enriched and comfortable lifestyles
and contributing to social megatrends and a sustainable global environment.
Although these products are expected to experience significant growth, theyalso require high quality standards in the face of rapid change and intensecompetition. In order to further develop our plant and achieve "Mission
2030," it is essential to enhance the competitiveness of each product,
quickly achieve results in newly developed products, and create new
products and materials. We will continue on our growth path while striving tocreate a plant filled with smiles and vigor, with safety as our top priority.

History
April 1992
Joined Denka (Labor Section, General Affairs Department, Omi Plant)
April 2008	Manager of General Affairs and Personnel Section, Administrative Department,
Omi Plant
October 2014
Section Manager, HR Department
April 2017
Assistant Manager, HR Department
April 2020
Deputy General Manager, HR Department
April 2023
General Manager, HR Department

Aspirations as Executive Officer

Aspirations as Executive Officer

The Administrative Department, Legal Department, Secretary Department,
and Internal Control Department are strengthening various initiatives toincrease corporate value by improving corporate governance to achieve“Mission 2030.” In September 2023, the former Risk Management
Committee was renamed the Denka Group Risk Management Committee.
The Committee began ongoing risk management activities throughout the
Denka Group through Enterprise Risk Management (ERM) activities, which
replace traditional individual risk management. We will bring these ERM
activities into full swing from FY2024. In addition, as harassment issues
that undermine employees' psychological safety persist, we will continue
to promote a corporate culture that places compliance as a top priority.

❶ Watching sports, especially baseball. I also have experience as thecaptain of the Omuta Plant baseball team.

❶ Running. Discovering a scenic course and running on it feels exceptional.

❶ Cultivating and appreciating houseplants. I feel at east when looking at
greenery.

❷ I value the ability to carefully listen to everyone's voice. I believe that
attentive listening is the key to unlocking the power of our team.

❷ Since I had to deal with time differences while working with US companies, I have been an early riser for about 10 years and have been
involved in some morning activities.

❷ Having worked in HR for many years, I am confident that I can match
names with faces of employees.

❸ Motsunabe (offal hotpot), mentaiko (pollock roe), horse sashimi, etc.
Since I have spent most of my life in Kyushu, I have a special attachment to Kyushu's local cuisine.

❸ Influenced in part by my parents, who loved the mountains, I developed a fondness for wild vegetables, and my favorite is tempura madefrom koshi-abura (fatsia shoots). They will be ready for harvest soon.

❸ Being from Osaka, I enjoy a variety of flour-based dishes such as takoyaki and okonomiyaki. As for drinks, I love beer, which goes perfectlywith these dishes.

❹Some of my most memorable moments are from when I was first assigned to the Omuta Plant. Four of us who joined the company at the time
became close, sometimes drinking until dawn to vent our frustrations.

❹ I built networks with various experts in a wide range of fields such as
ceramics, polymers, semiconductor materials, and battery materials byengaging in cutting-edge research in these areas.

❹ I have worked at the Omi Plant twice, for a total of more than 11 years.
My colleagues, the plant staff, and the local community have been verykind to me.

❺The first project I was assigned to was the development of conductive DPFs. Although we were not able to commercialize the product, I
learned a lot from our failure.

❺ As mentioned above, whenever I am assigned to a field outside myarea of expertise, I start learning from scratch. With the help of thosearound me, I manage to appear like an expert.

❺ I was able to push through a major reform of the human resources
system, which had been untouched for a long time.

❸ Favorite foods and drinks❹ Memories at Denka❺ Challenges at work
❻ Memorable photos
Mr. Nishimura is in the first row, second from theright.

The Denka Way | 2024 Spring

History
April 1993
Joined Denka (belongs to the Research Institute)
April 2014
General Manager of New Business Planning Department
April 2015 	General Manager of Global Innovation Department, New Business
Development Department
April 2017 	Representative of Denka-KEW Genomics LLC
September 2023 Deputy Manager, Life Innovation

Executive Officer
In charge of Administrative Department, Legal Department,
Secretary Department, and Internal Control Department

The Life Innovation Business is expected to make significant contributions
to both society and the Denka Group through the existing Vaccine and Diagnostics Business and new businesses, including G47Δ. However, given
the drastic changes in the business environment, this doesn't mean that
future profits are guaranteed. New businesses also face various difficulties
in achieving success. To put these businesses on a growth track, everyone involved must share a sense of crisis and urgency. In addition, as acompany that values people's lives, we must breathe life into each andevery job. To achieve this, we will create a system that allows each of us
to demonstrate our specialties with confidence.

❷ Skills/Strengths

16

Executive Officer
Life Innovation❻A photo taken of the Development and Research Department at the Omuta Plant
in 1997. While I struggled
through each day, looking
back now, I remember thatthose days were also filledwith joy.

Mr. Inada is third from the left.

❻ A photo taken under a cherry treewith colleagues when I was dispatched as a special researcher to
the National Institute for Materials
Science (NIMS) in Tsukuba City fora national project on all-solid-statebatteries, the next generation oflithium-ion batteries.

❻ A scene from the farewell party for Mr.
Nakano, the former Managing Executive Director who helped us promote amajor reform of the human resources
system.

Mr. Adachi is in the lower right.

The Denka Way | 2024 Spring17

Introducing Denka Group news topics from December 2023 to March 2024

TOPICS

Pick Up

Jan.

Dec.

12- 3

Started technical study abroad at DLIR, our R&D base in Singapore—New challenges for Denka in technical and human capital exchanges—

Mar.

Dec.

Donated 10 million yen to
victims of 2024 Noto Peninsula
Earthquake

Denka donated 10 million yen to victims of the Noto Peninsula Earthquake through the Japanese Red Cross
Society and other organizations. Denka also supplied 6,520 antigen test kits that Denka manufactured to
Ishikawa Prefecture through the Japanese Promotion Council for Laboratory Testing’s Large-Scale Disaster
Response Committee and the Japan Association of Clinical Reagents Industries.

Feb.

Jan.
Denka Life Innovation Research (DLIR) in
Singapore

Invested in a startup to commercialize
wearable biosensors that measure physicaldata through sweat

3Q Financial Results Briefing Held

Denka invested in Epicore Biosystems Inc., a startup that is developing high-level

conference on February 7. The briefing

wearable IoT biosensors, through the CVC fund Denka jointly operates with Pegasus

was attended by 90 people, including

Tech Ventures. This is the first investment Denka has made through the CVC fund.

institutional investors, analysts, and

The investment will promote collaboration, such as in supporting the expansion offinancial institutions. President Imai

Epicore Biosystem’s products into the Asian market, codeveloping new products foraddressed the styrene-based resin

medical use, and more.

quality issues and the cause analysis and recurrence prevention measures for

The 3Q Financial Results Briefing
was held in the form of a telephone

the accident at Omi Plant from various aspects and stressed that he would takeresponsibility for handling them. The full-year operating income forecast was
In 2017, Denka established Denka Life Innovation

LIR has a prototype development teamand improves the user experience through in vitro

for small devices for medical diagnostics,

diagnostics drug development that integrates thethe globalization of Denka’s life innovation researchwhich Denka does not have in its

development of small devices and diagnostic& development system. Exchanges were previously

Japanese development system. That being said, theirpharmaceuticals. The continuation of the above

suspended due to the COVID-19 pandemic, but Denka

system and technology for developing diagnostic

technical exchange will help Denka to establish a

D

Research Private Limited (DLIR) in Singapore to promote

reduced to 11 billion yen (down 21.3 billion yen from last year). As an improvement
measure, Denka will enhance its business value creation, including short-term,

Feb.

Renewed uniform-partner contract withALBIREX NIIGATA

began technical and human capital exchanges through apharmaceuticals does not compare to Japan’s. The

system of mutually complementary technologies andIt has been decided to renew

study abroad program in Singapore from October 2023.

current trend is an approach that raises sensitivity

is expected to reduce development time.

Denka’s uniform-partner contract

Shuhei Aoyama

Student

Diagnostics Research Department(Machida City)
Life Innovation

Nicholas Chanwould be a big opportunity to gain overseas research & development

Team Leader
Device Development Team, DLIR

Yoshiyuki Yamada
R&D General Manager, DLIR

Singapore for roughly two and a half months from October 2023 andI believe that this technical exchange

Singapore has the world’s shortest

mainly studied CAD (computer-aided design), 3D printing, the assemblyis the first step for DLIR to secure

timeframe for the social implementationof electrical and optical components, programming, and more. Somepeople proficient in device development

and trial introduction of new technologiesof the technologies were unfamiliar to me, but I was able to proceed

technology for Denka and to build aand is conducting advanced bio researchwith an understanding of the processes thanks to Nicholas’s careful andcollaborative system with the diagnostic

through public-private partnerships.

patient explanations using illustrations and examples. After much trial

pharmaceuticals development team. It is

Furthermore, it is as safe as Japan, so

and error, I was finally able to complete a prototype with my own hands.

also the fastest and most optimal approach

I brought the prototype back to Japan and use it daily in my research &development work.
pletedMy com
pe!
ty
to
pro

I also enjoyed local Singaporean cuisine!

18

states in the Denka Group Social

When I heard about the technical study abroad program, I knew it
experience and immediately communicated my interest. I was in

31, 2025). The Denka Group
Contribution Policies that Denka

The Denka Way | 2024 Spring

the second half of FY2024.

Received A- in climate change and B inwater security from CDP for 2023

season (February 1, 2024–January

Trainer

explained that the company aims to return profit levels to a growth trajectory fromFeb.

with ALBIREX NIIGATA for the 2024

My experience with the study abroad program

concentrated measures with clearly defined timeframes and amounts. President ImaiContinuing from last year, Denka©ALBIREX NIIGATA

received an A- in climate change andwill advance health and well-being,a B in water security in 2023 frompromote sports, and contribute to local communities. In Niigata Prefecture, Denka

CDP, which provides an environmental

has Omi Plant and Gosen Site, two important manufacturing locations, and has built

information disclosure system. Goingstrong relations with the prefecture for over 100 years. Denka aims to further liven

forward, Denka will work to improve

up Niigata Prefecture in the future.

more in-depth environmental aspects
while continuing to disclose environmental information appropriately.

Feb.

Mar.

Held idea contest for new business creation:
Denka Innovation Day

Renewed official sponsor contract with
Fukuoka SoftBank HAWKS

Denka can send its young workers here

As part of the management plan

It has been decided to renew

to contributing to achieving Mission 2030.

to gain overseas experience with peace of“Mission 2030,” which started

Denka’s sponsor contract with the

For this reason, we prepared a programmind. The research center has spaciousin April 2023, Denka held

Fukuoka SoftBank HAWKS for thethat would maximize results in the limited

offices and laboratories, as well as network

Denka Innovation Day, an idea

2024 season (March 1, 2024–

timeframe by clearly defining final goals

facilities for connecting with Japan. Going

contest for new businesses for

February 28, 2025) for a secondand subdividing them into milestones. As

forward, I hope DLIR can not only support

employees. The six winners ofterm. A billboard advertisement

exemplified by other joint projects withtechnical exchanges but also serve as an

the primary and secondary screenings gave presentations for the final screening infor Denka will continue to be displayed at the HAWKS’ home stadium, FUKUOKA

the New Business Exploration Department

activity base in Southeast Asian business

front of an audience of approximately 500 individuals, both in person and online, on

PayPay Dome, and the home stadium of the HAWKS’ second team, Tama Home

being introduced, technical and humandevelopment, promote the use of and visits

February 15. The winner will receive a prize and Denka will commit to considering

Stadium Chikugo. Denka has had a strong relationship with the local region,

capital exchanges with Denka will continue

to facilities for human capital exchanges,

the commercialization of their idea in the future.

including the existence of Omuta Plant, and will continue to focus on contributing toto be a pillar of our future activities.

and more.

the community and locally-based sponsorships.

The Denka Way | 2024 Spring19