Reference

DENKA100 Corporate Philosophy
Taking on New Challenges as We Near
Our Centennial
To Become a Company That Creates New
Value from Resources by Fully Employing
Our Technological Capabilities

1

DENKA CSR REPORT 2012

DENKA CSR REPORT 20122

Reference
Corporate Governance/ComplianceCorporate Governance/Compliance

We are building a highly transparent corporate structure to earn the trust of
all stakeholders.
■ Corporate GovernanceWe must meet the expectations and respect of shareholders,customers, local communities, employees, and other stakeholders. Corporate governance underpins social respect and support. We have thus taken steps to improve both the Board of
Directors and our auditing system, while streamlining our management organization and bolstering our compliance system.

■ Corporate Governance Structure
We adopted a Corporate Auditor System as the basis of ourand management to ensure that our business properly serves
stakeholders.
The Board of Directors similarly has two external members.
We ensure management transparency by separating thatboard’s oversight from executive implementation. On August 1,
2012, the Legal Dept., which was previously under the
Administrative Dept., has been put under the direct control of
President with the aim of strengthening its authority as well as

The hotline accepts calls on actions that may or do violate

Directors as needed.

that policy. The Ethics Committee quickly addresses

We inaugurated the Compliance Hotline System sup-officers, to streamline and accelerate deliberation on important

plement internal audits by swift identifying and addressing

managerial matters. For such important matters as the drawing

any violations (see page 2).

up of a budget and capital investment, we set up special committees or deliberative councils by function redundant.

ture, including the Internal Auditing System■ Management Committee

The hotline’s mandate is to be fair and swift. It receives
reports from the Corporate Auditors’ Office and the labor
union, which operate independently, as well as from the

3. Internal Controls Reporting System

Ethics Committee Administrative Office and general affairs

This system under Japan’s Financial Services andsections within all offices. People can send reports to an

Exchange Act aims to ensure that financial statements are

external law firm. They can also e-mail reports to internalInternal control systems are fundamental to meeting society’s

reliable.

auditors. During fiscal 2011, we received two reports.

expectations and gaining its respect. We will continue to

We conduct checks of Groupwide business proce-

The DENKA Group Ethics Policy specifically safe-

improve our systems in line with the policies of the Board ofdures to reduce mistakes and possible risks in keeping

guards whistleblowers from discrimination and mistreat-

Directors. The following outlines details of the system.

with the implementation standards of this system, swiftly

ment.

addressing any problems that are discovered. We issued

1. Board of Directors and Executive Officers

an internal control report following the system’s implemen-

Two of our ten directors are external. In April 2008, wetation in fiscal 2008. In fiscal 2011, this document declaredreformed this body to separate oversight and implementation

the effectiveness of our internal controls based on an eval-by eliminating ranks within the board while reinforcing its super-uation in line with assessment standards for generally

visory functions. The Board of Directors appoints executive offi-

accepted financial reports.

cers to run operations under the leadership of the president.

An independent accounting firm (ERNST & YOUNG

The abovementioned two external Directors and two indepen-

SHINNIHON LLC) audited our report and determined thatdent Auditors are appointed as independent directors/auditors

all significant aspects of our disclosure were proper. We

under the rules of Tokyo Stock Exchange Group, Inc.

will continue to maintain internal controls for the purpose of
ensuring the reliability of our financial reports.

broadening its functions.
The chart below shows our corporate governance struc-

reports.

■ Internal Controls

Corporate Governance System. The Board of Auditors
includes two independent members assessing our operations

audit operations. The results are reported to the Board of

2. Internal Auditing System■ Risk Management
It is important to understand the diverse and numerous
hazards of corporate activities through proper risk control.
In general, each business unit is responsible for identifying and managing its specific risks. To handle environmental, safety, product liability and export control issues
that affect the entire Company, we maintain special sections and permanent committees and have also appointed
a team of specialists to audit our Group subsidiaries.
We formulated our Risk Management Guidelines tocomprehensively tackle incidents that greatly affect corpo-

The Internal Auditing Department conducts our in-house■ Compliancechecks, with assistance from the Legal, Environment andCompliance is essential for sustainable growth. We

Headquarters and the permanent Risk Management

Safety, and Quality Control Management departments. It also

accordingly adhere to internal rules and legislation andCommittee.

works closely with the Product Liability, Responsible Care andrefrain from acts that violate moral and ethical norms. In

DENKA established the Management Committee, which isother committees based on their specific functions. Each depart-

2002, we codified conduct standards in the DENKA Group

composed of directors, corporate auditors and some executive

ment and committee collaborates to educate on legislation andEthics Policy.

rate activities. We also set up the Crisis Measures■ Risk Management Overview
President

Directors (Board of Directors)

Audits within Business Units

Conduct Audit/Auditing Staff

Report(Including Administrative Dept., Legal Dept., Environment andCompliance Hotline

3

DENKA CSR REPORT 2012

Audit

Safety Dept., and Quality Control Management Dept.)

Financial Auditor (Auditing Firm)

This system covers any shortfalls in our internal control andcompliance systems by enabling us to fix organizational
problems that may arise. We set up the Compliance
Hotline in keeping with the DENKA Group Ethics Policy.

Monitor/Instruct

Other
risks

Major
crisesBoard ofDirectors

CrisisMeasures
Headquarters

ReportInternal Auditing Dept.

Corporate Auditor’s
Dept.

■ Compliance Hotline System

Risk Management
Committee
Proxy organizations
Ethics Committee
Safety Measures
Headquarters
Responsible Care
Committee
Product Liability
Committee
Export Control
Committee

Reportt

Internal Audits

AssistantAt

Affiliates

grams run by the Human Resources Development Center.

Risk-specificcommittees

ReportVarious Business Sectors

Corporate Auditor(Board of Auditors)

Appointment/Dismissal

Executive Officers

We educate employees on compliance through pro-

ReportExecutive Directors

Audit

Implementation

Representative Director

ReportElection/Dismissal

Appointment/Dismissal

Supervise

departments.

Reports on Emergencies

Appointment/Dismissal
A

Appointment/Dismissal

Environmental and Safety, Intellectual Property and otherSet up/We adopted compliance policies for the Legal,
General Stockholders’ Meeting

Instructdent chairs, to oversee compliance and enforce the policy.

Report■ Corporate Governance Overview

ReportWe established the Ethics Committee, which the presi-

Monitor/InstructPrime oversightBusinesses(including Sales and Manufacturing Divisions)
Administration(including Internal Auditing, Environment and
Safety, Legal and Accounting & Finance
Departments)

DENKA CSR REPORT 20124

Reference

Reference

The DENKA Group Guidelines

Information Management/System Administration/Response to Insider Trading-Related Regulations

Based on our corporate philosophy, “to become a company that creates new value from resources by fully employing our technological capabilities,” the DENKA Group established CSR action guidelines.

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

In recent years, the volume of information digitally processed by theheadings the Safe Management of Personal Information andGroup’s information system has been rapidly expanding on the

Confidential Information Management and Respect for Intellectual

back of drastic advances in IT technologies. Accordingly, it is

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

1. We will promote sustainable social and business development out

dinate regulations of these guidelines, DENKA established andtem. DENKA set up the Information System Managementof a conviction that corporate social responsibility is the essence

developed the Personal Privacy Policy and the Regulation for

Guidelines in 2006 and the Information System Work Manual inProtecting Information regarding Corporate Secrets, which are thor-

2008 based on the Regulation for Protecting Information regarding

oughly disseminated through lectures and in-house newsletters.

Corporate Secrets. In cooperation with managers and persons inof business.

Furthermore, DENKA strictly manages and respectfully handles

2. While constantly ensuring quality to maintain customer trust, we

confidential information provided by third parties in accordancecharge at each relevant department, we are appropriately handling
digitized information.

with the DENKA Group Ethics Policy.

will contribute to sound social progress by developing and supplying products and services that are safe and environment friendly.

■ Structure of Information Management Rules
DENKA Group Ethics Policy

3. We will operate fairly.

■ Information Management Structure
President

Code of specific behavior

4. We will maintain a good level of communication with society anddisclose appropriate information.

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

Chief Control Officer
Vice President

Assistant

Director in Charge

Chief control officer at eachrelevant department

General Manager

General administrator at eachrelevant department

Manager

Administrator at each section
or area in charge

Subordinate regulations

5. We will comply with laws and regulations and operate fairly
according to social norms.

Personal Privacy Policy/Regulation for Protecting
Information Regarding Corporate Secrets
Management of information related
to information system

6. We will maintain safe, clean and comfortable workplaces andInformation System Management Guideline (established in 2006)

respect all basic human rights.

7. We will use, reuse and recycle resources to help protect
the environment.

8. We will maintain security and disaster prevention measures, participate in environmental protection activities and communicate■Lectures on Information Control■Lectures on Insider Trading

To disseminate in-house rules pertaining to information control, ourSince the introduction of the surcharge system in 2005, regulations

information technology specialist course provides training on thehave been tightened to detect insider trading. It is exceedingly

Information System Management Guidelines and basic rules.

important to accurately understand relevant regulations and comply

The course is provided annually at the Headquarters as well aswith in-house rules to prevent the occurrence of insider trading.

each branch and plant. With classes of about 10 employees, theUnderstanding this, DENKA is holding lectures on regulations per-course aims to ensure the adoption of proper information control

taining to insider trading for General Managers and Managers

methods through practical training as well as active discussion.

assigned to the Headquarters, the Central Research Institute andplants, aiming to regularly reconfirm their awareness of such regula-with society.

tions as well as of relevant in-house rules.

9. We will contribute to society as a good corporate citizen.

10. We will contribute to social development as a good member ofthe global community.

Established in April 1, 2007
Lesson on information control (Headquarters: May 22, 2012)

5

DENKA CSR REPORT 2012

DENKA CSR REPORT 20126

Reference

Reference

Breakdown of Consolidated Net Sales by Principal Business Segment

Research and Development Activities

The percentages of fiscal 2011 consolidated net sales accounted for by each principal business segment andsummaries of their operations are as follows.
Organic Materials

Percentage
of consolidated
net salesin fiscal 2011

44.8%

Main products: Resin raw materials, synthetic resins, acetate acidproducts, synthetic rubber
Styrene monomers recorded higher revenue due to sales price revisions in response to rising raw fuel prices. However, ABS resin andtransparent resins experienced decreases in revenue in line with lower
domestic and export sales volumes. In addition, sales of CLEAREN, a
specialty resin, remained on par with the previous fiscal year. DENKA’s
Singapore based subsidiary, Denka Singapore Pte. Ltd., recorded a risein revenue owing to firm sales of polystyrene resin and other products.
Despite a decrease in sales volume caused by sluggish demandin China and the rest of Asia during the second half of fiscal 2011,chloroprene rubber experienced an upswing in revenue thanks toefforts to adjust sales prices.

Inorganic Materials

Percentage
of consolidated
net salesin fiscal 2011

13.3%

Main products: Fertilizers, inorganic chemicals, cement, special
cement additives
Fertilizers recorded an increase in revenue due to a rise in sales volume. This was mainly attributable to a rise in the shipment of theCompany’s products being substituted for competitors’ products following the Great East Japan Earthquake. Although the sales volume
and net sales of fire-resistant materials, steel materials and cement
remained unchanged from the previous fiscal year, special cement
additives experienced lower sales volume and a fall in revenue due toa decline in major construction projects.

Electronic Materials

Percentage
of consolidated
net salesin fiscal 2011

11.9%

Main products: Electronic materials, electronic packaging,
functional ceramics, adhesives
Electronic circuit substrates enjoyed higher revenue due to increased
sales volume related to electric trains. However, spherical fused filler
for semiconductor sealant fillers and electronic packaging (including
DENKA THERMOSHEET EC for electronic components and semiconductor transportation) experienced lower revenue due to a fall in sales
volumes accompanying stagnant demand in the second half.
Sales of ALONBRIGHT, a SiAlON Phosphor used in LEDs, andthe highly functional adhesive HARDLOC remained virtuallyunchanged from the previous fiscal year.

We constantly reinforce our unique technologies to facilitate further
improvements to our high-quality products. At the same, we focus ondeveloping specialized, highly functional product lineups in the growing
peripheral technology field, which is rooted in existing businesses; strive
to rapidly meet market demands that emphasize next-generation product development; and work to position our R&D operations with the aimof achieving the early commercialization of products.
In fiscal 2011, we allocated ¥10,639 million to R&D operations,which employed 623 researchers. During fiscal 2011, we had 175 outstanding applications in Japan and registered 301 patents (including for
utility models) domestically.
The following is an explanation of each business segment’s
research objectives, main concerns and successes in fiscal 2011.

■Organic Materials
In the styrene-based functional resin segment, we are reinforcing our
production technologies while enhancing product quality, focusing onsuch unique products as transparent resins, heat-resistant modifiers andshrink materials. In this segment we are also seeking new applications thatwill lead to new product development. In addition, the upgraded production capacity of our Singaporean subsidiary contributed to sales growth.
In the organic chemicals segment, we pursued expansion in both
the domestic and overseas markets, focusing on strengthening chloroprene rubber, DENKA ER and acetylene black production technologies.
Amid these efforts, we are placing particular emphasis on winning the
top share of the global market for chloroprene rubber by developing
new processes and product grades to enhance our competitive edge.
We are also aiming to increase our market share of acetylene black foruse in lithium-ion secondary batteries by improving its quality and suitability for such use.
In fiscal 2011, R&D investment was ¥2,385 million in this segment.

■Inorganic Materials
In special cement additives, DENKA is developing new product lineups
as well as technological proposals for the civil engineering and construction fields. Among existing products, we are seeking to develop the market for expansive additives in the construction field. At the same time,
we are stepping up new product development and proposals related tohighly specialized construction methods, which are best suited for the
maintenance and repair market. We are also cultivating the market for
ultra-high strength and high-durability concrete products, including fiberreinforced concrete. Moreover, we are developing environment-friendly
technologies that curb CO2 emissions as well as products aimed at supporting the post-Great East Japan Earthquake reconstruction, for example a soil additive that strengthens weak ground.
In fertilizers and inorganic products, we focused on R&D aimed at
expanding applications in such fields as automotives while further
developing alumina fiber production technologies. We are also conducting R&D of such products as alumina cement and fertilizer tostrengthen our operations.
In fiscal 2011, R&D investment was ¥1,098 million in this segment.

■Electronic Materials
In Electronic Materials, we are reinforcing our lineups of LED substrates
and thermally conductive materials, the markets for which are expected
to grow. In phosphor products, we are striving to enhance the properties of existing products while pursuing the further development of new
products. In thermally conductive materials for power electronics, inaddition to R&D to strengthen our competitive edge in the market, we
are working to attain high-functionality products in preparation for thecommercialization of SiC elements. Moreover, we are proactively investing in production facilities for newly developed products. In adhesiverelated products, we are promoting product and market development
for specialty functional adhesives that harness our ultraviolet light-curing
technology. In particular, we are dedicating efforts to the developmentof processing technologies that will expand sales of TEMPLOC temporary fixing adhesive for electronic component processing.
In electronic packaging, we promote new product development
aimed at meeting market needs in timely manner, focusing on tapes fortransporting electronic components and adhesive tapes for protecting
and fixing semiconductor wafers. This approach contributes to the
expansion of our operations.
In functional ceramics, we continued to pursue higher performancein spherical fused silica for semiconductor sealants. We are also developing hexagonal boron nitride powder (h-BN) for thermal materials;
functional fine particles (including nanofillers) such as spherical alumina
for thermal materials and semiconductor sealants; and boron nitratemolded products for use in the semiconductor manufacturing process.
In fiscal 2011, R&D investment was ¥2,955 million in this segment.

■Functional Materials and Plastics
In polymer processing products for packaging, construction and industrial use, we continued to develop such product lineups as weatherresistant films for solar cells and synthetic fibers. Taking advantage ofour capabilities in adhesive coating technologies as well as film andsheet technologies, including multi-layer and profile extrusion technologies, we are driving business expansion by promoting product development that responds to market needs, working together with Group
companies while seeking to better utilize the existing materials.
In pharmaceutical products, we are pursuing the development offermented high-molecular hyaluronan as an agent that improves joint
function, with the aim of expanding our share of the market. On theother hand, we are seeking other applications that exploit the characteristics of high-molecular hyaluronan.
DENKA SEIKEN Co., Ltd. is developing high-quality vaccines withexcellent safety and efficiency. It also develops bacteriological diagnostic reagents to detect infectious diseases and viruses that may causesignificant damage to society as well as clinical-use chemical diagnostic
reagents and immunochemistry-based diagnostic reagents that are vitalfor health management.
In fiscal 2011, R&D investment was ¥4,165 million in this segment.

■Other Businesses
Denka Engineering Co., Ltd. designs and installs industrial equipment.
Its R&D is focused on improving the efficiency of pneumatic transfer
equipment for powders and wastewater treatment facilities.
In fiscal 2011, R&D investment was ¥35 million in this segment.

Functional Materials and Plastics

20.9% of Percentage
consolidated
net salesin fiscal 2011

Main products: Food packaging, construction materials, industrial
materials and pharmaceuticals
Sales of plastic rain gutters and agricultural- and construction-use
corrugated piping were steady. Also, higher revenue was recorded for
TOYOKALON synthetic wig fibers due to robust exports to Africa. On
the other hand, revenue from the weather-resistant, fluorine-alloy film
DX FILM stagnated, reflecting declining demand for solar cells in
Europe.
Sales of food packaging sheets were firm. In addition, sales of
products made from food packaging sheets by the Company’s subsidiary, DENKA Polymer Co., Ltd., were brisk.
In pharmaceuticals, the sales volume of high-molecular sodium
hyaluronate preparation, a product that improves joint function,
remained on par with the previous fiscal year. Revenue from influenza
vaccines and test kits manufactured by DENKA SEIKEN Co., Ltd.
rose along with growth in sales volume.
*The percentage of net sales in the Others business segment stood at 9.1%

7

DENKA CSR REPORT 2012

■ Research and Development Organization

Central Research Institute

Phosphor Research Dept.
Advanced Materials Research Dept.

(as of May 1, 2012)
Polymer & Processing
Technology Institute

Biochemistry Research Dept.
Materials Characterization Dept.

Omi Plant

Organic Materials Research Dept.
Inorganic Materials Research Dept.
Production Technology Dept.

President
Omuta Plant
Person in overall charge of
research and development

Person in overall chargeof technologies

Ceramic Research Dept.
Production Technology Dept.

Chiba Plant

Polymer Research Dept. 1
Polymer Research Dept. 2

Research andDevelopment Dept.

Production Technology Dept.

Technology Div.
Shibukawa Plant
Isesaki Plant

Electronic Materials Research Dept.
Polymer Processing Research Dept.
Denka Chemicals Development Suzhou Co., Ltd.
Technical Service Center (Singapore)
DENKA CSR REPORT 20128

Reference
Financial Statements

Consolidated Balance Sheets (Summary)

Consolidated Statements of Income (Summary)Millions of yen

Consolidated Statements of Shareholders’ Equity for Fiscal 2011 (April 1, 2011, to March 31, 2012)

Millions of yen
Common assets stock

AmountAccount item

As of March
31, 2012

As of March
31, 2011

AssetsAmountFiscal 2011

Fiscal 2010

Balance at April 1, 2011

¥364,712¥357,893

Changes of items during the period

Cost of sales

291,421281,219

Selling, general andadministrative expenses

52,57652,054

20,713

24,618

Account item

Net sales

78,05975,564Inventories

54,52747,622Other

13,162

14,348Non-operating income

2,608

3,081

Reversal of revaluation reserve for land

(419)

(441)

Non-operating expense

4,326

4,647

Net changes of items other thanshareholders’ equity

248,915

258,693

18,99623,052201,637

203,395

1,657

2,021

Intangible fixed assets

1,770

2,749

17,33821,030Investment securities

38,88938,571
14,123

Allowance for doubtful accounts

(116)

(146)

¥402,552¥402,046

Total assets

Purchase of treasury stock

Operating income

Ordinary income
Extraordinary losses
Income before income taxes andminority interests(2,749)(2,749)1

10

Disposal of treasury stock

(90)

—

0

6,329

(2,747)

3,582¥36,998¥42,293¥80,327¥(6,390)¥160,228

Total changes of items during the period
Balance at March 31, 2012(90)

Accumulated other comprehensive income

Income taxes—current

3,801

6,385

Income taxes—deferred

2,386

180

Minority interests in income (loss)

(179)

108

¥11,330¥14,355

Net income¥156,645

11,330Notes and accounts receivable,
trade

6,734

¥(3,642)

11,330

6,258

Other

¥73,997

Net income

8,308

Property, plant and equipment¥42,292

Total shareholders’ equity

Treasury stock(4,909)Cash and deposits

Non-current assets¥36,998

Retained earnings(4,909)¥143,352

Allowance for doubtful accounts

Capital surplus

Dividends from surplus¥153,637

Current assets

Millions of yen

Shareholders’ equity

Unrealized gain
Deferred gains or
Revaluationon otherlosses on hedges reserve for land
securities

Balance at April 1, 2011

¥4,858¥(6)¥7,594Foreign currency Total accumulated Minority interests
translation
other comprehenadjustments
sive income¥(3,473)¥8,974¥2,561

Total net common
assets¥168,182

Changes of items during the period
Dividends from surplus—(4,909)Net income—

11,330Purchase of treasury stock—(2,749)

Disposal of treasury stock

—

1

90

—

Liabilities¥160,676¥153,410

Notes and accounts payable, trade52,36748,364

Short-term loans

45,323

44,632

Commercial paper

13,00016,000Current portion of corporate bonds

10,000—

Other current liabilities

39,98544,414

69,13980,453Current liabilities

Consolidated Statement ofComprehensive Income
AmountLong-term liabilities

Account item

Income before minority interests

25,000Long-term loans

34,72528,929Valuation difference on
available-for-sale securities

Other long-term liabilities

19,413

26,523

Deferred gains or losses on hedges

229,815

233,864

Revaluation reserve for land

160,228

156,645

Capital stock

36,99836,998Foreign currency translation
adjustments
Share of other comprehensive
income of associates accounted
for using equity method

Capital surplus

49,29349,292

Total other comprehensive income

Retained earnings

80,32773,997

Treasury stock(6,390)(3,642)

Accumulated other comprehensive
income10,174

8,974

Minority interests

2,334

2,561

Total net assets

172,737

168,182

Total liabilities and net assets¥402,552¥402,046

Net Assets

9

DENKA CSR REPORT 2012

Fiscal 2010

¥11,150¥14,463

Net changes of items other thanshareholders’ equity

224

4

1,374

(493)

1,109

(227)

881

Total changes of items during the period

224

4

1,464

(493)

1,199

(227)

4,554

¥5,083¥(1)¥9,059¥(3,967)¥10,174¥2,334¥172,737

Balance at March 31, 2012

15,000Shareholders’ equity

Fiscal 2011

Other comprehensive income

Bonds

Total liabilities

90

Reversal of revaluation reserve for landMillions of yen

263

(521)

4

(6)

1,374

—

Consolidated Statements of Cash Flows (Summary)AmountFiscal 2011

Fiscal 2010

Net cash provided by operating activities¥28,521¥ 33,780

Net cash used in investing activities(22,363)(23,763)

Net cash used in financing activities(4,050)(10,554)

(59)

(118)

Net increase in cash and cash equivalents

2,047

(655)

Cash and cash equivalents at the beginning of the year

6,160

6,815

Cash and cash equivalents at the end of the year

8,207

6,160

Account item

(493)
(52)

34

1,095

(1,642)(1,149)¥12,246¥12,821

Effect of exchange rate changes on cash and cash equivalents
Comprehensive Income(Breakdown)Comprehensive income attributableto owners of the parent
Comprehensive income attributableto owners of the minority interests

Millions of yen

12,43912,697(193)

123

DENKA CSR REPORT 201210

Reference

Reference

Rationalizing Logistics

Input and Output

Promoting Rationalization in Logistics to Reduce CO2 Emissions■ Response to the Law Concerning the Rational Use of Energy■Overview of Environmental Burdens

As a designated shipper, we are dedicated to enhancing cargotransportation volume: 521 million ton/kilometers). Nevertheless, intransportation efficiency as well as the quality of our logistic opera-

the five years since fiscal 2007 DENKA’s energy consumption

tions. Going beyond the reduction of CO2 emissions, we constantly

intensity deteriorated slightly due to a decrease in shipments ofwork to secure a more than 1% per year reduction in energy con-such high transportation efficiency items as cement and acetic

sumption on the basis of energy consumption intensity, an index

acid.

The main environmental impact totals of all business sites for fiscal 2011 are shown below.
Inputs504,000kl

Looking ahead, we will further promote energy savings throughEnergy. To this end, activities involving such bodies as the RC

consumption reduction calculated on the basis of consumption

Electricity

Promotion Committee and the Export and Logistics Improvement

intensity by comprehensively strengthening our logistic capabilities

1.49 billion kWh

Subcommittee are undertaken Companywide at the initiative of thewhile pursuing the reduction of overall CO2 emissions.
Water
81.31 million t

Logistics Department.
tions undertaken within each plant’s premises, restructuring redun-■ Energy Saving Status
2007

dant modes of transportation and distribution, expanding the useof container transportation provided by Japan Railways, promoting
the shipment of cargo for export from ports in the vicinity of ourplants and helping affiliates improve their logistics operations.
In fiscal 2011, the CO2 emissions volume was down 12,900
tons compared with the fiscal 2007 level to 34,700 tons (total

Plants

2008

2009

2010

2011

Transportation volume797,452 831,227 618,865 605,609 521,131—(1000t-km)
Energy consumption intensity(amounts converted into
0.0224 0.0217 0.0240 0.0239 0.0250―
crude oil equivalent anddivided by cargo volume)
97.1% 110.3% 99.6% 104.8% 102.8%
Previous fiscal year̶CO2 emissions (t-CO2)
47,500 48,300 39,500 38,500 34,700―

Air emissions
CO2 (from energy sources)
1.38 million t
CO2 (from nonenergy sources) 1.00 million t
SOx
217t
NOx
4,240tSoot and dust
128t
PRTR substances1
94t
Water discharges
COD (BOD)(FY)
Five-year
average

Outputs
Products

Fuels

defined by the Revised Law Concerning the Rational Use ofSpecifically, our activities include reviewing distribution opera-

Business Activities

External waste
592,000t

PRTR substances1
Soil discharges
PRTR substances1

1,295t27t
18t

Raw materials
Waste generated

Amount recycled
in-house
109,000t2

138,000t

Waste reduction from water removal and incineration 12,300t

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

Amount recycled
externally
15,500t
Final disposal(as landfill)
228t■ Safety Measures in Distribution Operations
This environmental impact data encompasses DENKA’s
plants and main affiliates within those facilities.

As one of our attempts for implementing better safety measures in
distribution at each plant, we installed safety lines for fall prevention

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

1 PRTR substances: Excluding those from TOYO STYRENE Co., Ltd. and Taiyo Vinyl Corp. inside the Chiba Plant
2 Waste generated: Excluding that from TOYO STYRENE Co., Ltd. inside the Chiba Plant

and safety platforms to ensure the safety of workers loading trucks.
The safety lines installed in exterior areas help prevent fall injuries among employees working in high places, such as on top of a

Explanation of Input

possibly unstable stack of products. The safety lines used in interi-▶ Fuels are the sum of all fuels used at each business site, converted into crude oil equivalents
on a calorie basis. They include fuels for inhouse power plants.

or spaces, on the other hand aim to secure the safety of workers
loading of cardboard boxed products onto trucks.
Moreover, safety platforms enable employees to work from thesame level as the truck bed when loading. This helps to decreasestrain on workers while preventing injuries.

Explanation of Output▶ With regard to CO 2 emissions from energy
sources, the total represents emissions from inhouse fuel production and from electricity purchases.
▶ CO2 emissions from nonenergy sources covermainly that portion that is derived from raw
materials.
▶ COD is the BOD discharge into rivers converted
into COD values.

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

Safety line in action (outdoor)

Safety platform

A safety platform in use

Safety lines (indoor)

11

DENKA CSR REPORT 2012

DENKA CSR REPORT 201212

Reference
OutputOutput

DENKA strives to reduce the emission of substances and waste generated byits production activities while pursuing the appropriate treatment of such
emissions.
■ Emissions■ Nitrogen Oxide (NOx)
Declined approximately 2% year on year, reflecting such factors as decreased production of fused silica.

(Tons)(Tons)

6,000

300

5,900
5,520

5,000

■ Soot and Dust
Increased approximately 15% year on year due to an increasein the amount of waste materials accepted for cement recycling that caused the filtering efficiency of dust collecting
machines to deteriorate. We will work to improve the figure byadjusting and optimizing such machines.

5,680 5,670

5,200

4,900

297

Target■ PRTR Substances Emissions
Successfully decreased on schedule thanks to analysis ofcauses of emissions, efficient countermeasures figured out
and undertaken based on said analysis that involved installment of new facilities. Due to the one-time only landfill disposalof 18 tons of such substances, however, the volume increased
27 tons year on year. Looking ahead, in fiscal 2012 we will
focus our efforts on decreasing substances that are emitted inrelatively larger volumes.

250

5,010
4,670
4,470 4,330

4,240

4,000

200

200

3,800

191

Target

172

150

3,000

142

147

149

149

128
117

2,000

133
862

111

100

1,000

(Tons)
1,000

800

50

667

600
0

649
584

0

90

02

03

04

05

06

07

08

09

10

11

12

90

(Fiscal
year)

02

03

04

05

06

07

08

09

10

11

12

(Fiscal
year)

490

400
363

242 232200

Target210
143 136122■ Sulfur Oxide (SOx)Decreased approximately 15% year on year thanks to thechangeover of fuel from heavy oil to natural gas that has nosulfur content. We will strive for further reduction toward thegoal for fiscal 2012.

■ Chemical and Biochemical Oxygen Demand (COD (BOD))
Decreased approximately 19% year on year due to the adjustment of water treatment facility operations. Looking ahead, ourplans call for augmenting the capacity of such facilities.

(Tons)(Tons)

5,000

4,000

139
88

0

98 00 01 02 03 04 05 06 07 08 09 10 11 12(Fiscalyear)■ Fiscal 2011 Substance Emissions and Transfers
The following table shows PRTR registered substances emitted and transferred in amounts exceeding one ton.

Emissions
Air

Water

Soil

Landfill

Total

Amounttransferred

n-Butyl acrylate

0

0

0

0

0

2

Acrylonitrile

2

0

0

0

2

11

Acetaldehyde

2

9

0

0

11

0

Aniline

0

0

0

0

0

7

Ethyl benzene

3

0

0

0

3

48

Ferric chloride

0

0

0

0

0

50

Calcium cyanamide

0

0

0

18

18

35

Vinyl acetate

16

0

0

0

16

0

Dimethyl formamide

0

0

0

0

0

31

StyreneWater soluble copper salt
(excluding complex salt)
Toluene

27

0

0

0

27

135

0

4

0

0

4

0

38

1

0

0

39

34

Carbon disulfide

2

0

0

0

2

0

Hydroquinone

0

2

0

0

2

0

Bis (2-ethylhexyl) phthalate
Hydrogen fluoride and its
water soluble salts
Boron and boron compounds

0

0

0

0

0

1

1

0

0

0

1

26

0

12

0

0

12

20

2-ethylhexyl methacrylate

0

0

0

0

0

1

Methyl methacrylate
Total

2

0

0

0

2

14

92

27

0

18

139 413

Dioxins (mg-TEQ) (see note)

0

4

0

0

4

PRTR substances

0

Units: tons (excluding dioxins)
3,570

4,300

4,000
3,000
3,000
2,860

3,040 3,040 2,870■ Waste

2,000
2,000

1,910
1,670 1,630

2,080
1,460 1,480

1,740
1,440

1,295
991

1,000

0

90

02

03

04

05

06

07

08

09

Target

1,120

1,000
870

1,600

1,350

Target
260

217

153

10

11

12

564

0
(Fiscal
year)

90

02

03

04

05

06

07

08

09

10

11

12

(Fiscalyear)■ Changes in the amount of waste for final disposal
Decreased 25% year on year thanks to waste reduction efforts
implemented at each plant. The overall consolidated emissions
improved significantly to 0.17% from 0.27% in fiscal 2010,
maintaining the status of zero emissions (DENKA’s definition*).
We will strive to further reduce the waste.

(1,000 tons)
40
37.5

30

*final disposal amount/amount of waste generated × 100<1
20

10
6.8
5.0

4.6

4.9

3.7

Target
2.9

2.9

07

08

0

97

02

03

04

05

06

0.5

0.3

0.2

0.4

09

10

11

12 (Fiscal
year)

13

DENKA CSR REPORT 2012

DENKA CSR REPORT 201214

Reference

Reference

Utilization of Environment-Related Subsidies

Environmental Accounting

Developing technologies that reduce environmental burden and energy
consumption through the proactive utilization of the subsidy system

We apply environmental accounting covering investments and spending andtheir environmental and economic effects■ Fiscal 2011 Project Gained Approval for Subsidies■ Conservation Costs

As part of its activities to reduce environmental burden as wellas energy consumption, DENKA actively utilizes a subsidy system established by the Japanese Ministry of Environment andthe Ministry of Economy, Trade and Industry. In fiscal 2010 and2011, we received approval for four subsidies.
1. Japan’s Voluntary Emissions Trading Scheme (JVETS)The Shibukawa Plant has been granted a subsidy by the
Ministry of Environment covering the cost of installing lowcarbon equipment. In fiscal 2011, the plant achieved a 2,407
tons reduction in CO2 emissions, which considerably exceeded
the target for the year and entitled the plant to CO2 emission
credits.
2. Developing a Technological Foundation That Will Promote
the Establishment of a Next-Generation Recycling-Oriented
Society
Receiving a subsidy from the Ministry of Environment to develop a technological foundation for next-generation recycling,
the Omuta Plant is promoting the development of a method torecycle slacked lime, a byproduct of acetylene manufacture,
into calcium carbide.

3. Subsidies Supporting Businesses’ Energy Consumption
Rationalization (Omi and Chiba Plants)
To promote energy-saving initiatives, both plants are receiving
subsidies from the Ministry of Economy, Trade and Industry
through the Sustainable open Innovation Initiative.
The Omi Plant’s cement section decreased annual energy
consumption by 2,252kl, well in excess of its target.
The Chiba Plant is participating in an energy-saving program for petrochemical plants that utilizes the latest technologies, aiming to reduce annual consumption by 3,342kl.
Continuing to proactively implement energy-saving initiatives in fiscal 2012, these plants are applying to another subsidy program that requires a further 2,012kl annual reduction.

In fiscal 2011, research and development spending focused on developing energy saving-related products accounted for approximately 70% of environmental investments, with initiatives for environmental burden reduction representing another approximately 22%.
Coverage: Plants and Research Institutes

Category

1. Business site costs(1) Pollution prevention(2) Conservation(3) Recycling resources
2. Upstream and downstream costs
3. Administrative costs
4. R&D costs
5. Social activity costs
6. Environmental damage costs
7. Others
Total

Conservation costs (millions of yen)
Investments
Expenses

Details(Subtotal)
Environmental burden reduction measures
Conserving energy
Using resources effectively
Changing raw materials
Environmental education
Products that contribute to energy saving
Environmental education
Community relations

784
587
84
113
0
0
1,914
0
0
0
2,697

2,500
1,983
79
438
0
23
2,313
6
110
41
4,994

In fiscal 2011, research and development spending increased due to investments in energy saving-related projects, including thedevelopment of phosphor for use in white LEDs; thermal materials; and carbon black for lithium-ion secondary batteries.

■ Conservation Effects
We calculated the environmental load data.
△: Increase

Environmental load

Units

CO2 emissions (from energy and non-energy sources)
SOx emissions
NOx emissions
Soot and dust emissions
COD (BOD) discharges
Water used
PRTR substance emissions
Waste
Final waste disposal
CO2 emissions from transportation

10,000 ttttt
1,000m3t
1,000 tt1,000 tFiscal 2010 results Fiscal 2011 results

247
257
4,320
111
1,600
80,400
122
112
304
39

237
217
4,240
128
1,295
81,300
139
138
228
35

Effects

10
40
80
△ 17
305
△ 900
△ 17
△ 26
76
4

Soot and dust emissions increased in fiscal 2011, reflecting such factors as the degradation in the quality of heavy oil used in boilers
due to the impact of the Great East Japan Earthquake. Another factor contributing to the increase was a rise in the amount of wastematerials accepted at cement plants for recycling. This caused the filtering efficiency of our dust collecting machines to deteriorate
and soot and dust emissions therefore increased. On the other hand, COD (BOD) emissions decreased by approximately 20% year
on year due to the augmented operation of water treatment facilities (constantly monitored for TOD*). However, plans call for the
expansion of such facilities as we expect that demand for our water treatment capability will further increase.
*Total Oxygen Demand■ Economic Effects
We calculated proceeds from selling waste, energy savings, reductions in waste treatment costs and yield improvements.
△: Increase

Category

Item

Profits

Proceeds from selling waste from core operations
and income from recycling waste

Cost reductions

Lowering energy costs by conserving energy
Reducing waste treatment costs by conserving or
recycling resources

Details

Effects (millions of yen)

Sales profits

387

Conserving energy

214

Using resources effectively

57

Total

658

Due to the increase in the amount of waste that was internally recycled, proceeds from the sale of waste decreased.
15

DENKA CSR REPORT 2012

DENKA CSR REPORT 201216

Reference

Reference

Occupational Safety and Health Management System

ISO 14001 and 9001 Management System

We endeavor to maintain safe and comfortable workplaces.

We are pursuing ongoing improvement based on our quality andenvironmental management systems.

■ Occupational Safety and Health Management System■ Status of ISO Certification Acquisition

DENKA conducts risk assessment to monitor the degree ofPlant Name

Certification
SystemCertification
NumberAcquisition
Date

Chiba Plant

OHSAS18001

1026525

February 6,
2007

OSHMS

10-15-6

March 8,2010

OHSAS18001

SNG6011133

January 23,
2011

risk at each plant.
Based on assessment results, we comprehensively man-

We secured the following ISO certifications in fiscal 2011:

ISO 14001 (Environment)

age risks and implement improvements. The status of certificaOmi Plant

tion acquisition from external institutions is as follows.
DSPL Seraya
Plant

Omuta Plant■ Change Management
This encompasses establishing rules to assess risks andReview process

implement measures where needed for changes in the 4Ms*

Determine facilities outline and budget

during production. Preliminary safety assessments are impor-

Deliberatetant when building plants that use new processes. Change

Decidemanagement comes into play when we upgrade or modify
Preliminary safety assessment

facilities. Facilities and operations departments conduct preliminary safety assessments and gather with in-house third
parties to discuss risks relating to fires, explosions and worker
safety.

Omi Plant

Undertake additional measures
Pilot operation
Commercial operation

October 16,
1999

2661116-2A(BV)

August 19,
1994

October 28,
20001170995（BV）

November 7,
1998

Products covered

1281435 (BV)

Chloroprene, acetaldehyde, POVAL, ASR, SAKNOHOL,
butyral, special cement additives, cement, alumina fiber,
monochloro acetic acid, sodium monochloroacetate,caustic soda, monosilane, dichlorosilane,hexachlorodisilane

1897810 (BV)

Fused silica, special cement additives, nitride powder,ceramic substrates, steel additives, acetylene black,calcium aluminate cement, FIRELEN, boron, boron
carbide powder, thermally conductive materials, heatsinks, phosphor

Chiba Plant

May 31,
1999

180943 (BV)

March 22,1995

155885 (BV)

Shibukawa Plant

May 21,
2001

1527443 (BV)

October 23,
1996

1957684 (BV)

Metal substrates, adhesives, emitters, thermallyconductive spacers, thermally conductive adhesive
sheets, electromagnetic shields, Elegrip Tape

Ofuna Plant

November 9,
2001

JQA-EM1895(JQA)

October 25,
1996

JQA-1429 (JQA) Packaging tape, plastic films, polyvinyl chloride fibers

Isesaki Plant

September 30,
2003

1090712 (BV)

February 28,
20081679787 (BV)

Central ResearchInstitute

July 5,
2004

1491430 (BV)——

DSPL Merbau Plant

June 8,2001

SNG0190016(Lloyd’s)November 29,
2000

SNG0160194(Lloyd’s)

Acetylene black

DSPL Seraya Plant

May 28,2003

SNG0190023(Lloyd’s)

September 27,
2001

SNG0160242(Lloyd’s)

Polystyrene, methyl methacrylate styrene resins, styrenebutadiene copolymers

DAPL Tuas Plant

March,
2003

2003-0194 (PSB)

April,
2000

Denka Advanced
Materials (Suzhou)Co., Ltd.

May 20,2008

310092-UK (BV)

September 19,
2007273428 (BV)

Electronic packaging sheets, cover tapes

DENKA Polymer
Co., Ltd.

——

September 14,
2001

C2010-01748(PJR)

Plastic food packaging and plastic sheets

DENKA SEIKEN
Co., Ltd.

June 23, 2000

2737475 (BV)

July 13,2005

12 100 25631
TMS (TUV)

Clinical chemistry diagnostic reagents, immunologicaldiagnostic reagents, bacteriological and virologicaldiagnostic reagents, sterile cotton swabs

CRK Corporation——

November 19,
20091069716 (BV)

Rubber compounds, rubber tape, rubber molding

Evaluate ways to reduce safety andsecurity risks and reflect them indetailed designs and equipment
production specifications

Confirm that instructions have been
implemented and deploy additional
measuresconcerning disaster prevention and occupational health.
* The 4Ms: man, machines (facilities, equipment, tools), materials (raw materials and components) and methods (including work methods/operations,processing conditions and formulas)

Date certified

Polystyrene, acrylonitrile styrene resins, methyl
methacrylate styrene resins, methacrylate-butadienestyrene resins, methacrylate acrylonitrile butadiene styrene
resins, acrylonitrile butadiene styrene resins, styrenemaleimide copolymers, styrene-butadiene copolymers,
vinyl acetate, ethylene vinyl acetate copolymers, acrylic
rubber, polystyrene sheet, acetic acid, styrene monomer,
toluene, ethyl benzene, rain gutters, vinyl tape, corrugatedpipes, duct hosing, wall ducts, polyvinyl chloride

Implement and produce

In particular, we emphasize preventing key lapses in areas

Date certified

Registration
numberAssess process suitability
at planning stage

Detailed designs and orders

Confirm upon completion

ISO 9001 (Quality)

Registration
numberStretch films, food packaging sheets, electronic
packaging sheets, cover tapes, DX FILMs—

99-2-0984 (PSB) Manufacture of fused silica filler

DSPL: Denka Singapore Pte., Ltd.
DAPL: DENKA Advantech Pte., Ltd.

17

DENKA CSR REPORT 2012

DENKA CSR REPORT 201218

Reference
Product Safety Control and Management System

Product Safety Control and Management System

We thoroughly undertake management operations that fully consider safety,
environmental protection and quality in all our processes, from raw materials
procurement to research, production, logistics, consumption and disposal.
■ Collaborating in Chemical Industry Initiatives■ Product Safety Management
Materials Safety andManagement Flowchart

We ensure product safety at each phase—from development, production and use by customers—while focusing on maintaining andimproving quality.
1. Verify the Safety of Raw Materials and Necessary Quality Level andEngage in Production Process Design

1. Development
Verifyif raw materialt i l safety
f tVerify necessary quality level
Production process design

We select and use raw materials for which safety can be verified while developing● High Production Volume Program (HPV)● Long-Range Research Initiative

Through the HPV Program, we and other companies collaborate

The Japan Chemical Industry Association, the American Chemistry

under the auspices of the International Council of Chemical

Council and the European Chemical Industry Council oversee thisAssociations to evaluate the safety of around 1,000 substances that

program. The program entails conducting long-term basic research

the Organisation for Economic Co-operation and Development

to correctly determine if and/or in what manner chemical substances

has designated.

affect human health and the environment. Currently, these bodies
are engaged in long-term basic studies of such issues as ecologicalproducts that conform with customer and legal demands. We establish production
2. Raw Materials
Green Procurement
G
Pt
Purchasing specifications

3. Raw Materials
Outsourced
materials production

processes that ensure consistent quality and thus trust in the products we develop.

● Japan Challenge Program(environmental) toxicity due to exposure to chemical substances,

2. Green Procurement /Purchasing Specifications

Under this program, manufacturers are working with the Ministry ofneural toxicity and cancer caused by exposure to toxic chemicals,

We purchase and use raw materials based on the Negative List, which takes into con-Health, Labour and Welfare, the Ministry of Economy, Trade andand endocrine hypersensitivity due to exposure to chemical sub-sideration Japanese and international environmental management regulations, as well

Industry and the Ministry of the Environment to collect, assess andstances. As we did in fiscal 2010, we fully cooperated in the imple-

as purchasing specifications that outline the required characteristics of purchased raw

disclose safety information on around 700 chemical substances. We

mentation of this program in the year under review.

materials. Consequently, we are striving to manufacture superior products from quality

are participating in areas of the program that relate the substances

raw materials and production processes.

that we use.

3&5. Manufacturing Vendor Audits

Manufacturing vendor audits

We outsource some raw materials production processes and the manufacture ofsemi-processed goods. We regularly audit manufacturing vendors based on our inhouse standards for quality, logistics, environmental management and product safety.

4. Production

4. Maintain/Improve the Environmental Protection and Quality

Maintain and improve environmentalit l protectiontand quality(ISO 14001, ISO 9001 and Good Manufacturing Practices(GMP: see note 1))

We are undertaking environmental and quality management operations; gradually
expanding the scope of our efforts to include new products; and working to maintainand improve quality, environmental protection and safety.

6. Waste Contractor Audits

原材料

We commission waste contractors in line with the Waste Management and Public

Notes 1. Good Manufacturing Practices (GMP) refers to standards that Japan’s Ministry of Health, Labour and Welfare established in its Ministerial Ordinance onStandards for Manufacturing Control and Quality Control for Drugs and Quasi-drugs.
2. The Japan Chemical Industry Association created a labeling format to augment the Yellow Card system. The labels present emergency guideline numbers
and United Nations identification numbers for different chemicals transported in relatively small amounts on the same vehicle. The labels aid in the proper
handling of these chemicals in emergencies.
3. The Joint Article Management Promotion-consortium (JAMP)’s* Material Safety Data System plus (MSDSplus) and Article Information Sheet systems
provide standardized formats for presenting information on substances subject to management. MSDSplus is mainly for substances and agents that are
upstream in the supply chain. Article manufacturers produce Article Information Sheets based on that information. JAMP aims to spread its systems
throughout Japan and Southeast Asia.
* JAMP is a cross-industry association established in Japan in 2006 to encourage companies to properly manage information on substances and compounds
as well as on chemical substances in parts, plastics and other articles. JAMP also establishes mechanisms to disclose and present information on supply-chain
products.

Cleansing Law, requiring them to issue manifests and confirm collection. We regularly
5. Outsourced
Processing
and Production

6. Disposal

Manufacturing
f t i vendor
d auditsdW
Waste
t contractor
t t audits
ditevaluate the operations and financial positions of these vendors and visit their waste
processing sites.

7. Management of Environmentally Hazardous Substances in Products
We established the Negative List, which lists substances that are considered to beharmful to people and the environment. We are taking steps to ensure product quality
and safety while reducing environmental load by placing restrictions on usage during

7. Products

the raw material phase and by decreasing the residual volume of harmful substancesin our products. The Central Research Institute (which is in charge of certifying mea-it ll hManagementt off environmentallyhazardous
substances in products (Negative List)

surements) analyzes the amount of residual substances harmful to the environment
contained within raw materials and products. Analytical data on items that do notmeet regulatory standards is shared with the production, sales, and analysis and

8. Logistics

product management departments.

8. Displaying Yellow Cards and Yellow Card Container Labels
Y ll
Yellowcards
dContainer labels (see note 2)

We require drivers to carry yellow cards that explain post-accident procedures. We
also label containers to ensure swift and proper remediation. We regularly inform drivers of our requirements and conduct emergency drills.

9. Material Safety Data Sheets (MSDS)
9. Customers
Material safety data sheets (MSDS)
MSDSplus (see note 3)
AIS (see note 3)

We produce these sheets for all products to ensure proper handling according tophysical and chemical hazards and health and environmental risks. The sheets informcustomers and help educate employees. We have begun disseminating information
on environmentally hazardous substances contained in our products to customers
through the MSDS plus—which supplements information conveyed on MSDS
sheets—and Article Information Sheet systems.

19

DENKA CSR REPORT 2012

DENKA CSR REPORT 201220

Reference
Environment-Friendly Product Development

Environment-Friendly Product Development

DENKA is Promoting the Development of Environment-Friendly Products
in All Business Areas
Category

Business Department
Organic Chemicals
Dept.

CO2 emissions
reduction in1
manufacturing
Special Cement
process
Additives Dept.

Materials andtechnologies
that support
2
environmentfriendly products

Tire bladders

Details of Contribution Effects

CO2-SUICOM supplemented with γ 2CaO•SiO2 undergoes carbonization processing in its production process. As it absorbs
CO2 during this process, it contributes to CO2 reduction.
Moreover, as γ 2CaO•SiO2 uses slaked lime instead of limestone, even at the raw material stage no CO2 is generated.

Organic Chemicals
Dept.

Chloroprene rubber(CR)1) Gaskets for photo- Potential for use in roof panel gaskets, which require a particularvoltaic panels
level of flame resistance

Organic Chemicals
Dept.

Chloroprene rubber(CR)2) Vibration insulation
Potential for use in vibration insulation rubber for wind turbine
rubber for windnacellespower generation

Organic Chemicals
Dept.

Chloroprene rubber(CR)3) Charging cables
Potential for use in charging cables, which require flame resisfor electric vehicles tance

Organic Chemicals
Dept.

Acetylene black (AB)Lithium-ion
secondary cells

Electronic Products
Dept.

ALSINK, ANP

Used to dissipate the high heat generated by drive transistors
Railway industry,
industrial instruments, as well as in electric insulation substrates to improve inverters’EVefficient use and control of electricity

Electronic Products
Dept.

HITTPLATE

Air conditioners

Used to dissipate the high heat generated by drive transistors
as well as in electric insulation substrates to improve inverters’
efficient use and control of electricity

Electronic Products
Dept.

Thermally conductive
sheetsEV

Used to dissipate the high heat generated by drive transistors
as well as in electric insulation substrates to improve inverters’
efficient use and control of electricity

Electronic Products
Dept.

HITTPLATE, thermallyLEDs
conductive sheets

Used to improve LED luminance by effectively dissipating theheat generated by LED chips

Spherical alumina

LEDsInserted in resin used as filler for the purpose of effectively dissipating the heat generated by LED chips and thereby enhancing
LED’s luminanceFunctional Materials
Dept.

BN powder

LEDs

Functional Materials
Dept.

Molded BN products

LED manufacturing
equipment

Used in LED chip manufacturing equipment as an excellent, easy
to cast insulation material

Functional Materials
Dept.

ALONBRIGHT

Phosphor for LEDs

Used increasingly in the shift to backlights for LCD TVs and LED
lighting, which is expected to reduce energy consumption

Industrial Materials
Dept.

DX FILM

Photovoltaic backsheetsUsed on back sheets of photovoltaic panels that contribute to
CO2 reduction

Rainwater storage
systemUsed to collect rainwater through a system of rain gutters withwater intake fittings. Collected rainwater may be used for watering gardens and washing cars, contributing to water savings andhelping to prevent global warming.

Inorganic Chemicals
Dept.

ALCEN

Automotive engine
peripherals

SOFRIA

Food packaging

Used to make food packaging as thick as but lighter than A-PET

Special Cement
Additives Dept.

SUQCEM

Concrete precast
products

Used to create lighter, thinner products than possible with ordinary concrete, this superhigh-strength fiber-reinforced concrete
can cut construction costs.

SULFEX

Inorganic Chemicals
Dept.

Synthetic FLUXCOMPOUND

CO2 emissions
Fertilizer Dept.
4 reduction
when in use
Inorganic Chemicals
Dept.

DENKA CSR REPORT 2012

Calcium cyanamide

ALCEN

Steel desulfurization

Agriculture

Fire resistantmaterials

Product Name
∑1000

Application

Used as high-strength additives to reduce the volume of highCO2 emitting cement needed to make concrete∑80N

High-strength castin-place concrete

Used as high-strength additive to reduce the volume of high CO2
emitting cement needed to make concrete

F-DAC

Concrete secondary
product

Increasing the strength of concrete, F-DAC can shorten precuring and steam curing time while reducing the CO2 emissions
from products made of concrete

TECHNOCRETE
Repair and maintemethod (electronance of concrete
chemical repair work) structures

When concrete is damaged by salt or neutralized, the
TECHNOCONCRETE method repairs it electrochemically so thatit does not need to be demolished, thereby reducing the amountof construction materials needed compared with existing repair
methods.

Inorganic Chemicals
Dept.

Slaked lime

By reacting with the CO2 formed during the limestone cycle,
encompassing limestone, calcined lime, calcium carbide, (waterand) hydrated lime, hydrated lime absorbs CO2 while helping tocurb the use of heavy machines for limestone mining (and thus
reduce CO2 emissions).

Organic Chemicals
Dept.

CR latex

CO2 emissions Special Cement
4 reduction
Additives Dept.
when in use
Special Cement
Additives Dept.

∑2000

Used in place of calcined lime, the most common desulfurizing
agent, these products lower thermal loss during steel refining
while helping to reduce CO2 emissions from transportation bylowering slag ejection
A nitrogen fertilizer with lower N2O emissions compared withother nitrogen fertilizers, can also be used to curb CH4 emissions
from rice straw
Used as a high heat insulator to reduce heat loss and thus saveenergy, boasts greater heat resistance than ceramic fibers,
thereby improving repair and maintenance frequency for fireproof
linings while helping to lower CO2 emissions from the transportation of products and waste

Water-based
adhesives

With no VOCs, this product helps customers to reduce the useof (or not use) solvents that produce VOCs while improving operational environment.

Functional Resin Dept.

CLEAREN

SheetsLightweight (80% of the specific gravity of the competitive material
PET-G), CLEAREN has a lower energy burden regarding transportation per unit area and volume. In addition, it has a processing
temperature for sheet and other materials that is 50C° lower thanthat of PET-G, therefore it lowers energy costs for processing.

Functional Resin Dept.

MS resin

Moldings

MS resin is lighter than PMMA when used for the same applications (specific gravity is 6% lower than that of PMMA) and has
lower energy burden in transportation per unit area and volume.

Improve cusTapes & Adhesives
tomers’ operaDept.
5tionalTapes & Adhesives
processes
Dept.

Reduceenergy andresource con6
sumption by
improvingdurability

Details of Contribution Effects

Concrete secondary
product

Special Cement
Additives Dept.

Used to replace steel automotive engine parts in the shift to aluminum parts reinforced with alumina fiber, which is helping to
reduce automobile weight and thus improve fuel efficiency andreduce CO2 emissions

Household Packaging
Materials Dept.

Inorganic Chemicals
Dept.

Business Department
Special Cement
Additives Dept.

Used as a conductive aid

Inserted in resin used as filler for the purpose of effectively dissipating the heat generated by LED chips and thereby enhancing
LED’s luminanceRain Oasis

Category

Incorporated in bladders used in the manufacturing (vulcanization) of tires to improve heat conductivity and thus shorten
vulcanization time (contributing to energy conservation)

Concrete precast
products

Housing &Environmental
Materials Dept.

21

Acetylene black (AB)Application

CO2-SUICOM

Advanced Filler Dept.

Bring theweight-saving
3
effect to bear
when in use

Product NameTEMPLOCSOLARLOC

Unlike previous temporary adhesives that had to be removed byTemporary adhesives
dissolving with organic solvents that posed potential health hazfor the processing ofards for workers, these products can be removed with heatedglass in smartphones
water, averting the aforementioned risk.

Special Cement
Additives Dept.

Slurry shot method(NATMIC US-32,
US-50)

Shotcrete for tunnels

Reduce dust and concrete splash when spraying shotcrete,
while improving the operational environment and decreasingmaterial losses.

Special Cement
Additives Dept.

Slurry shot method(NATMIC LSA, USS)

Shotcrete for tunnels

The low alkaline content of NATMIC LSA and USS results in an
improved operational environment with reduced dust and lessconcrete splash when shotcrete is sprayed, qualities that, in turn,
reduce the environmental burden and decrease material loss.

Special Cement
Additives Dept.

Super Cement

Emergency repair ofroad, railways andairports

Using ultrarapid hardening concrete that quickly attains initialstrength, Super Cement can gain practical strength in a shortperiod of time, helping to shorten construction periods andreduce the time of closure to traffic.

Special Cement
Additives Dept.

F-DAC B-FORM

Concrete secondary
products

Facilitating the hardening and increasing the strength of concrete, these products shorten pre-curing and steam curing time
while lowering costs by reducing fuel use and improving production efficiency.

Special Cement
Additives Dept.

DENKA
Repair and mainteTECHNOCRETE
nance of concrete
SYSTEM (electrostructureschemical repair work)

Special Cement
Additives Dept.

SUNTIGHT T-K, T-F

Repair and maintenance of sewage
systems

The sulfuric acid generated inside sewage facilities deteriorates
concrete. Therefore, the use of acid-resistant mortar for repair
and maintenance work can enhance the facility durability andextend the life of facility buildings.

Special Cement
Additives Dept.

EIEN

Concrete precast
products

Incorporating special cement additives (γ -2CaO•SiO2), EIEN candensify the internal structure of concrete by reacting with carbonate ions, thereby improving concrete durability and thus
reducing life cycle costs.

Special Cement
Additives Dept.

SUQCEM

Concrete precast
products

SUQCEM’s durability is extremely high thanks to its ultra-highstrength. Therefore, it can reduce life cycle costs.

When concrete is damaged by salt or neutralized, the
TECHNOCONCRETE method repairs it electrochemicallyso that it does not need to be demolished, thereby extending
the life of structural objects and reducing life cycle costs andwaste generation.

DENKA CSR REPORT 201222

Reference
Site Reports 2012 Omi Plant

Site Reports 2012 Omi Plant

Fiscal 2011 Achievements

Omi Plant
Profile■ Address
2209 Omi, Itoigawa, Niigata
Telephone: +81-25-562-6105■ Employees
781 (as of March 31, 2012)■ Major products
Inorganic materials: Cement, special cement additives,
calcium carbide, calcium cyanamide and ALSEN(alumina fiber)
Organic materials: Chloroprene rubber, polyvinyl alcoholand monosilane
Pharmaceuticals: High molecular hyaluronan preparation
Others: Eel farms■ Operations
Since our establishment in 1921, we have maintained
unique carbide chemical operations that exploit in-houseassets. These include Mount Kurohime, with its five billion
metric tons of limestone reserves, and an in-house power
generation capacity of 185,000kW. Our broad product● Communication with local societies● Local youth development

In response to local residents’ requests, we issued reports
covering environment-related information. We strove toshorten response times while utilizing the results of analysis
carried out in preparing the reports in the operation of theplant. In addition, with the aim of gaining the trust of thelocal community we regularly communicated information on
our business activities, including environmental and security
initiatives, to local communities as well as the various organizations concerned about our business operations.
To facilitate communication with the local community,
we participated in the Omanta Summer Festival in Itoigawa
City. A number of employees joined in the festival parade,bringing a lot of excitement to the event.

To deepen understanding of the Omi Plant as well as to nurture interest in chemistry, we proactively invite local elementary schoolchildren on plant tours and participate in the
Youngsters’ Science Festival.
At the Youngsters’ Science Festival in Itoigawa held on
November 5, 2011, we sponsored the booth where children
got to personalize PET bottles using DENKA’s CLEAREN,an SBC resin film known as “shrink film.” 224 children participated in the experiment.

range includes calcium cyanamide, chloroprene rubber andcement. In recent years, we have diversified into inorganic
fine chemicals and pharmaceuticals. We continue todevelop our business to meet new and diverse challenges
in chemicals.

Local elementary school children invited on a plant tour

The Omanta Summer Festival parade, in which 150 employees participated (July 30, 2011)

CSR Policies● Local cleanup activities and environmental improvement

General Manager’s Policies

We proactively participate in cleanup activities in the local
area, for example, the Himekawa River Cleaning Mission,cleaning along the Omi coast and other such activities along
the Omi river and roads around the plant.

Safety and Health, Environmental andQuality Policies

Striving to upgrade our on-site
and technological capabilities
and to ensure stable operations
to become a main plant that is
highly competitive<Safety and health>

To ensure zero accident, zero disaster and zero
occupational illness rates, every employee shallembrace a safety-oriented organization culture. By
doing so, let’s make the Omi Plant a cheerful andsparkling workplace.

Akihiko Okuda<Environment>

Executive Officer,
General Manager of
Omi Plant

We will fully utilize and strive to enhance the environmental management system as we pursue environmental activities.

Youngsters’ Science Festival in Itoigawa● Volunteer Activities

Every June Hisui-no Sato Mountain Marathon is held in
Itoigawa City and a number of the plant’s employees voluntary assist with this event. The event has five runningcourses, including a 30 kilometer-course with a 650 meterheight difference for mature runners and a 3 kilometercourse for elementary school children. The race welcomeda record-high 830 participants from across the nation.

Cleanup activities<Quality>

To eliminate all substantial quality-related complaints
and to gain the greater trust of customers, we willraise and maintain awareness toward product quality
while enhancing technological capabilities.

Environmental Performance
Item

Aiming to firmly collaborate with local municipalities at timesof disaster and to fully prepare the disaster prevention system, we conduct disaster drills on a routine basis. Such drills
include comprehensive emergency drills at Himekawa Port,
combined emergency drills with the Itoigawa City fire companies and comprehensive emergency drills at the plant.

Left: Plant employees participated in the race
Right: The 19th Hisui-no Sato Mountain Marathon (June 19, 2011)

Fiscal 2008

Fiscal 2009

Fiscal 2010

Fiscal 2011

Energy consumption indicator unit

Compared with fiscal 1990

0.95

0.94

0.97

0.96

0.91

CO2 emissions (from energy sources)

10,000 t

93

76

76

77

74

PRTR substance emissions

t

17

16

12

17

5

NOx emissions

t

3,870

3,030

2,750

2,820

3,090

SOx emissions

t

1,340

740

120

94

41

Soot and dust emissions

t

108

140

103

114

123

1,000m3

66,80064,70066,30067,200—

By rejuvenating communications, we will strive to achieve zero occupational accidents, disasters and illness.

COD (BOD) discharges

t

964

1,100

1,570

1,270

540

Waste

t

82,80074,70083,900105,200

75,100● Following up on the achievements of fiscal 2010, we attained zero emissions in fiscal 2011. Aiming to further reduce harm-

Final waste disposal

t

2,330

240

160

143

182

Water usedUnits

● Local disaster prevention activities

Fiscal 2012 targets

Note: Totals of individual figures in this and other tables may not be exact because we rounded down fractions. The totals for this table match the figures in the Input and Output section on page 12 of the web-based CSR Report
2012 references.
We registered under the Japan government’s pilot emissions trading scheme in December 2008, so for CSR Report 2009 we calculated energy intensity and CO2 emissions based on the coefficients standards of the voluntary action plan of Nippon Keidanren, recalculating figures for previous reports, which we had based on the coefficients of the amended Law Concerning the Rational Use of Energy.

23

DENKA CSR REPORT 2012

Fiscal 2012 Initiatives● We will implement monitoring training (including pointing and calling, the exchange of courtesies, etc.) as the “Basics ofSafety” at the initiative of managers.

ful substance emissions, we will continue to strive to improve and maintain conditions in the local environment. In addition,
we will continue to build trust through the careful consideration of dialogue with local communities.
● To accurately meet customer needs, including demand for product safety, we will enhance production technologies while

striving to improve technology for stabilizing product quality.
DENKA CSR REPORT 201224

Reference
Site Reports 2012 Omuta Plant

Site Reports 2012 Omuta Plant

Fiscal 2011 Achievements

Omuta Plant● Communication with local societies

ProfileWe are participating in local community organizations’ committees as well as school districts’ liaison councils and committees to report on conditions at the plant and ouroperations. We will continue these initiatives, aiming to realize the co-existence and co-prosperity of the Company andlocal communities.

■ Address
Shinkai-Machi 1, Omuta, Fukuoka
Telephone: +81-944-52-1055■ Employees
616 (as of March 31, 2012)■ Major products
Inorganic materials: Carbide, calcium cyanamide, FIRELEN,
alumina cement (for refractories) and special cement additives
Organic materials: Acetylene black
Electronic materials: Fused silica filler, silicon nitride, boron
nitride, aluminum nitride, ceramic electronic circuit substrates,
thermally conductive sheets, high thermal conductive composite
and phosphor for use in LEDs
■ Operations
Established in 1916, the Omuta Plant is DENKA’s oldest
plant, and the first to manufacture carbide and calcium
cyanamide. Since that time, as a production base of inorganic chemical products based on the proprietary electric
furnace, high-temperature control and nitride technologies,

the Omuta Plant has introduced a number of unique products. In recent years, we have entered the fine ceramics
and electronic materials fields. Today, we contribute to thedevelopment of the electronics, automotive and numerous
other industries.

Participated in the Omuta Daijayama Festival
One hundred of the plant’s employees participated in the
Omuta Daijayama Festival, summer festival that has a long
300-year history. They joined “10,000 people’s dance” themain attraction of the festival and were awarded theparade’s 3rd prize for groups. In addition, we took responsibility for a large retired festival display that is now in the front
entrance of the main office. With the wish of safety for local
people, we are introducing the festival to visitors.

In addition, we dispatched four employees from theEngineering Dept. to present lectures at a training session
for gas welding for Omuta High School students.
Plant Tours
We are striving to deepen community understanding of
DENKA by inviting local associations to plant tours.
Participating in the New Year Fire Review
As a representative of the plant, our in-house firefighting
team participated in the Omuta City New Year Fire Review
that is held every January.

Members of the Omuta Kita Rotary
Club on a plant tour

The Omuta City New Year Fire Review

CSR Policies● Local cleanup activities

General Manager’s Policies

Shohei Tamaki
Senior Executive Officer
General Manager of
Omuta Plant

procurement, manufacturing and storage to distribution,
usage and disposal as well as in our R&D activities, each
employee will address objectives to improve global environment and contribute to society, including local communities.

Addressing objectives to achievetargets stipulated in the
DENKA100 management plan,
the Omuta Plant will pursue further advancement and strive to
be a plant with even greaterorganizational strength while
contributing to society.

(3) Reinforcing On-Site Capabilities—Improving
Customer Satisfaction
Promoting the “advancement of technologies to improve quality” by product and “raising awareness of employees engaged
in manufacturing,” we will secure stable production underpinned by consistent quality and enhanced yields to achieve
better customer satisfaction.

The Omuta Daijayama Festival

The festival display is featured in
the front entrance

Machizukuri Activities
The “Omuta Machizukuri [Local Development] Symposium”
was held in Omuta City, and Shohei Tamaki, General
Manager of the Omuta Plant participated as a panelist. Mr.
Tamaki shared how much he loves the city as well as his
opinions on how to make the city a better place to live.

In tandem with local community organizations, in fiscal 2011
we conducted voluntary cleanup activities biannually inspring and autumn withapproximately 350 employees participating. Moreover,the plant participated in theJapanese Islands CleanupCampaign that is held biannually and involves cleaningof entire local areas.

(4) Addressing Objectives to Achieve Targets Set Out inEnvironmental, Safety and Quality Policies(1) Maintaining Safety, Security and HealthManagers and operators will work together as one to step up thelevel of safety, security and health and thus promote the development of a safe and comfortable working environment. Proactively
utilizing our safety level evaluation system, we will undertake concrete actions aiming to realize better safety at worksites.

(2) Further Pursuing RC Activities
Through the entire production process, from raw materials

the DENKA100 Management Plan—To Further Thrive● Blood Donation Activities

While promoting human resource nurturing to reinforce ouron-site capabilities, we will solidify our technological foundations that enable us to generate sufficient profits and remain
responsive to the drastic change in market needs. By doing
so, we will gain even greater organizational strength.
Moreover, we will accelerate the improvement and development of facilities to make the Omuta Plant a place that benefits people both within and outside the Company.

We are cooperating with blood donation campaigns. In fiscal 2011, such campaigns were held twice and 366
employees donated blood(cumulative total).
Support for a Local High School
A plant employee gave a lecture at a job fair for high school
students sponsored by the Omuta City Government andprovided advice on how to find employment.

Environmental Performance
Item

Units

Energy consumption indicator unit
CO2 emissions (from energy sources)
PRTR substance emissions
NOx emissions
SOx emissions
Soot and dust emissions
Water used
COD (BOD) discharges
Waste
Final waste disposal

Compared with fiscal 1990
10,000 ttttt
1,000m3ttt

Fiscal 2008

Fiscal 2009

Fiscal 2010

Fiscal 2011

0.92
11
6
770
1
5
1,308
1
9,345
420

0.92
9
6
1,000
2
3
1,190
1
6,861
133

0.91
11
17
1,120
1
3
1,310
1
8,670
71

0.90
11
25
940
1
6
1,390
2
13,60039

Fiscal 2012 targets

0.87
11
6
1,140
1
4
—
1
6,920
58

Note: Totals of individual figures in this and other tables may not be exact because we rounded down fractions. The totals for this table match the figures in the Input and Output section on page 12 of the web-based CSR Report
2012 references.
We registered under the Japan government’s pilot emissions trading scheme in December 2008, so for CSR Report 2009 we calculated energy intensity and CO2 emissions based on the coefficients standards of the voluntary action plan of Nippon Keidanren, recalculating figures for previous reports, which we had based on the coefficients of the amended Law Concerning the Rational Use of Energy.

25

DENKA CSR REPORT 2012

Fiscal 2012 Initiatives● Utilizing an in-house developed “safety level evaluation system,” we strive to enhance the safety level of the entire plantand create a safety-oriented organization culture.
● We will continue to cut environmental burdens, mainly industrial waste, and strive to maintain our zero emission status in2012 for the third consecutive year.
● By undertaking investments on the plant’s facilities, we will improve and develop the plant to make it a favorable place foranyone within and outside the Company.
● We will continue to pursue initiatives to facilitate children’s interest in chemistry by offering hands-on experience in fun way,

through such initiatives as holding chemistry classes for children and providing local elementary schools with on-demanddemonstrations involving experiments.
DENKA CSR REPORT 201226

Reference
Site Reports 2012 Chiba Plant

Site Reports 2012 Chiba Plant

Fiscal 2011 Achievements

Chiba Plant
Profile■ Address
6, Goi-Minamikaigan, Ichihara, Chiba
Telephone: +81-436-26-3200
Bibai Subplant: 1-1 Higashi-Gojo-kita, 10-chome, Bibai, Hokkaido
Telephone: +81-126-62-1444■ Employees
456 (as of March 31, 2012)■ Major products
Organic materials: Styrene monomer, polystyrene,* ABS
resin, transparent resins, heat resistance resins, CLEAREN
styrene-butadiene block copolymer, vinyl acetate monomer
and DENKA ER● CSR Activities<Security and Disaster Prevention>
We applied for and were granted the renewal of the licensing of a safety inspection expert for boiler operation andfirst-class pressure vessel operation. As a host company of
the Ichihara Maritime District Disaster Prevention Council,
we, together with the other member companies, promoted
a review of the response to the Great East Japan
Earthquake and, based on this review, discussed how toenhance security and disaster prevention.

<Community Engagement>
As a member of the Environmental Conservation
Association of Chiba Prefecture, we participated in the Eco
Fair Ichihara. We held a plant tour as well as an experimental chemistry class for parents and children, to which
employees’ children were invited. In addition, we held aplant tour for people from local senior citizens’ club.

<Occupational Safety and Health>
Focusing on risk assessment, we promoted and revitalized
occupational safety activities by utilizing OHSAS 18001
management methods. We held lectures on mental healthissues for staff members while offering guidance counselingby industrial physicians.

* Product of an affiliated company

Functional Materials and plastics: Food packaging, construction materials and vinyl chloride tapes■ Operations
Begun as a styrene monomer plant, the Chiba Plant is reinforcing such styrene operations as polystyrene, ABS resins,
CLEAREN styrene-butadiene block copolymer and transparent plastics. It also focuses on the petrochemical related● Safety Activities

Shotaro Fujii

Practicing fire extinguishing with fire trucks at
the comprehensive emergency drill(September 30, 2011)

Environmental, Safety and Quality Policies

Along with the DENKA100 management
plan, we are simultaneously promoting
CHIBA50 activities to celebrate the
Chiba Plant’s 50th anniversary. Under
the latter initiative, we aim to strengthen
the plant’s capabilities and thus establish the foundations for the transformation that has to be achieved in order tothrive in the next 50 years.

Senior Executive Officer,
General Manager of Chiba Plant

1. Attaining an absolute zero accident and disaster rate through continuing
efforts aimed at ensuring safe and stable operations by putting the greatest emphasis on safety and implementing concrete actions for safety (promoting safety and security activities backed by a safety-oriented culture)
2. Responding to new businesses
3. Reinforcing our organizational foundation and passing on technologies tonurture young engineers through human resource development and theoperation of techno schools
4. Reinforcing on-site capabilities that create value-added products by raisingawareness of quality and enhancing production technologies
5. Pursuing CS13-based activities, including “reorganizing businesses” and“strengthening the plant’s capabilities in existing business areas”
6. Pursuing corporate social responsibility (CSR)—legal compliance, environment consciousness and product safety<Environment>
We will consider the environment in all processes, fromproduct development, manufacturing and distribution to
usage, final consumption and disposal. We will build anenvironmental management system.
<Safety>
We want all plant workers to recognize the importanceof maintaining a safe and healthy workplace. We aim
to achieve a healthy, safe and cheerful manufacturing
plant that fully recognizes and implements necessary
security management systems as a license holder for highpressure gas handling, boiler operation and first-classpressure vessel operation while complying with relevantlaws and regulations. We will achieve zero accidents
through continuing system improvement for security
management as well as safety and health management,
both of which are essential to a healthy, safe and cheerful
workplace, while implementing safe and stable operations.
<Quality>
We will strive to secure and enhance product quality togain the trust of customers by consistently offering satisfying products.

Environmental Performance
Units

Energy consumption indicator unit
CO2 emissions (from energy sources)
PRTR substance emissions
NOx emissions
SOx emissions
Soot and dust emissions
Water used
COD (BOD) discharges
Waste
Final waste disposal

Compared with fiscal 1990
10,000 ttttt
1,000m3ttt

Fiscal 2008

Fiscal 2009

Fiscal 2010

Fiscal 2011

0.93
37
120
355
76
3
9,690
22
15,412
124

0.85
44
109
436
116
5
9,700
17
17,431
98

0.87
43
86
448
129
5
9,700
23
18,300
40

0.89
46
92
479
122
8
9,690
22
18,10023

Fiscal 2012 targets

0.83
46
70
426
86
6
—
20
17,250102

Note: Totals of individual figures in this and other tables may not be exact because we rounded down fractions. The totals for this table match the figures in the Input and Output section on page 12 of the web-based CSR Report
2012 references.
We registered under the Japan government’s pilot emissions trading scheme in December 2008, so for CSR Report 2009 we calculated energy intensity and CO2 emissions based on the coefficients standards of the voluntary action plan of Nippon Keidanren, recalculating figures for previous reports, which we had based on the coefficients of the amended Law Concerning the Rational Use of Energy.

DENKA CSR REPORT 2012

<Other Activities>

DENKA100/CHIBA50 joint training session for assistant chiefs and experts (February 2012)● Environmental Activities

We cooperated in the development of technology for measuring buoyant particle substances at soot and smokeemitting facilities. We provided samples of exhaust gas fromthe plant’s boilers as well as data pertaining to the results ofanalyses of such samples.

Volleyball game held as a part of the health promotion campaign co-sponsored bymanagement and the labor union (April 18, 2012)

Fiscal 2012 Initiatives● Environmental Activities

Item

27

<Other Activities>businesses represented by vinyl acetate monomer andacrylic rubber while reinforcing such plastic processed
products as biaxially oriented polystyrene sheet (OPS),
construction materials and vinyl chloride tapes.

CSR Policies
General Manager’s Policies<Social Contributions>
We operated stall at the Kazusa Ichihara Kokufu Festival to
deepen exchange with local people. We are continuously
engaging in cleaning up a stretch of National Route 16.

We will promote energy-saving and CO2 reduction activities to prevent global warming. As for initiatives to reduce environmental burdens, we will pursue resource saving and waste reduction while promoting zero-emissions. Toward environmental
improvement, we will work in close liaison with government bodies as well as local residents.
● Safety Activities

To promote security and safety activities backed by a safety-oriented culture, we will pursue ongoing system improvements
for security management as well as safety and health management and thus maintain the safe and stable operation of theplant. To ensure the safety of local areas, we promote security and disaster prevention activities in tandem with other companies operating in neighboring areas under the instruction of relating governmental organizations.
● CSR Activities

Aiming to coexist harmoniously with local society, we will proactively participate in local events and festivals, including the Goi
Rinkai Festival. We will also continue to hold plant tours for people from local residents’ associations as well as for local elementary, junior-high and high school students to gain deeper understanding of the plant.
DENKA CSR REPORT 201228

Reference
Site Reports 2012 Shibukawa Plant

Site Reports 2012 Shibukawa Plant

Fiscal 2011 Achievements

Shibukawa Plant
Profile■ Address
1135 Nakamura, Shibukawa, Gunma
Telephone: +81- 279-25-2109■ Employees
415 (as of March 31, 2012)■ Major productsElectronic materials: HARDLOC structural adhesive,
HARDLOC OP/UV light curing adhesive, DENKA HITTPLATE
high thermal-conductivity aluminum substrates, DENKA TFE
and DENKA LaB6 CATHODE electron and ion emitters,
ELEGRIP dicing tape, back grinding tape, THERMALLYCONDUCTIVE SHEETS, TEMPLOC temporary fixing adhesive■ Operations
Since 1951, the Shibukawa Plant has developed as a
production base for vinyl chloride resins. In 1976, theplant began manufacturing HARDLOC structural adhesive
and, in 1984, changed its business domain as it enteredinto full-scale participation in the electronic materials business. Currently, the plant focuses on the production of● Initiatives for Zero-Emissions● Experimental chemistry class

In fiscal 2009, we achieved an emissions ratio of 0.9%,
attaining zero emissions (DENKA’s definition, please see
page 14). In fiscal 2010, the figure was improved to 0.6%
and in fiscal 2011 we lowered the figure to 0.4%.

As part of exchanges with the local community, in March2012 we invited a group of 24 people comprising local elementary school students and their parents on a plant tour
incorporating experimental chemistry classes. Starting withan introduction to electronic microscopes and air showers,
the event had a number of classes where the children decorated their own plastic bottles using CLEAREN shrink films
and made slime (a viscous toy) using DENKA POVAL. Also,
DENKA’s temporary adhesive TEMPLOC was demonstrated, offering children a new and exciting look into theworld of chemistry. The experimental science class isplanned to be held in fiscal 2012 and beyond on a regularbasis.

● Educational session involving simulating danger andtraining for the safe operation of forklifts

electronics-related products, encompassing electronic circuit substrates, thermal materials, emitters, structural
adhesives, temporary fixing adhesives, and semiconductor
processing-related products, contributing to DENKA’s
growth as a key organic electronic materials production
base.

With the aim of eliminating possible serious accidents, suchas employees being caught in rollers or incidents involving
forklifts, in July 2011 we conducted an educational sessionthat involved in hands-on training aimed at providing simulated experience of accidents. A similar hands-on training
session was held in March 2012 as well, with the cooperationof Daido Steel Co., Ltd. We also held training sessions for thesafe operations of forklifts in June and December 2011.

CSR Policies
General Manager’s Policies
As the “mother plant” of DENKA’s
electronic materials business, wewill further accelerate our efforts tosolidify competitiveness in thedomestic market and expand sales
in overseas markets.
Kazuyuki Koyama
Executive Officer,
General Manager of
Shibukawa Plant

General Manager’s Basic Guidelines
1. Securing safety, security and health while preserving the environment
2. Reinforcing on-site capabilities and upgrading organizational quality
assurance activities
3. Promoting CS13 management plan
4. Energy and resource saving and reduction of environmental load
substance emissions
5. Raising awareness of quality, safety and cost issues while developing
human resources at the Shibukawa techno school and promoting
CSR activities

Environmental, Safety and Quality Policies● Other Activities<Environment>
We will continue to reduce environmental burdens byconserving resources and energy, cutting CO2 emissions
and waste generation, maintaining zero emissions andreinforcing the management of chemical substances.
Together with this, we will aim to operate in harmony withthe community through the interaction.
<Safety>
We will strive to adopt the “Basics of Safety,” including
the exchange of courtesies while reviewing countermeasures against high-risk operations that could lead to accidents wherein an employee is clamped or otherwisecaught in machinery. To this end, each employee will proactively think and take action, working together as one for
improvement and to secure a safe and comfortable worksite free of any type of accident or disaster.
<Quality>
Continuing to secure and improve product quality, we willoffer reliable products that satisfy customers on a timely
basis.

Item

Units

Energy consumption indicator unit
CO2 emissions (from energy sources)
PRTR substance emissions
NOx emissions
SOx emissions
Soot and dust emissions
Water used
COD (BOD) discharges
Waste
Final waste disposal

Compared with fiscal 1990
10,000 ttttt
1,000m3ttt

Fiscal 2008

Fiscal 2009

Fiscal 2010

Fiscal 2011

1.08
1
4
8
23
1
3,430
4
453
6

0.85
1
5
6
16
1
2,520
3
503
5

0.74
1
6
10
10
0
2,580
3
479
3

0.78
1
4
6
1
0
2,520
3
416
2

Fiscal 2012 targets

0.80
1
5
9
25
1
—
3
335
3

Note: Totals of individual figures in this and other tables may not be exact because we rounded down fractions. The totals for this table match the figures in the Input and Output section on page 12 of the web-based CSR Report
2012 references.
We registered under the Japan government’s pilot emissions trading scheme in December 2008, so for CSR Report 2009 we calculated energy intensity and CO2 emissions based on the coefficients standards of the voluntary action plan of Nippon Keidanren, recalculating figures for previous reports, which we had based on the coefficients of the amended Law Concerning the Rational Use of Energy.

DENKA CSR REPORT 2012

Students watching the ELEGRIP andsubstrate manufacturing process

At a plant tour for 47 Shibukawa City Government officials,
overviews of DENKA and the plant were presented(August 3, 2011)

Fiscal 2012 Initiatives

Environmental Performance29

42 Shibukawa Technical High School
students participate in a plant tour
(June 17, 2011)● As part of our environmental activities, we will strive to reduce environ-mental burdens by conserving resources and energy while cutting CO2
and chemical substance emissions.
● For safety activities, we will aim to achieve zero occupational injuries andzero security, environmental and distribution accidents.
● We aim to deepen community understanding of the Company and con-tribute to society by participating in local events, holding experimental science classes and engaging other activities, such as hydrangea planting
and irrigation channel cleaning.
Cleaning an irrigation channel in Nakamura Distinct (April 27, 2012)

DENKA CSR REPORT 201230

Reference
Site Reports 2012 Ofuna Plant

Site Reports 2012 Ofuna Plant

Fiscal 2011 Achievements

Ofuna Plant
Profile■ Address
13-1, Dai 2-chome, Kamakura, Kanagawa
Telephone: +81- 467-45-1110■ Employees
228 (as of March 31, 2012)■ Major products
Resins and plastic products: Including synthetic fibers for wigs,
packaging materials, and functional films■ Operations
Our product lineup is the fruit of advanced capabilities drawing on ejection molding, adhesion coating and film production
technologies. We are DENKA’s prime production unit for plastic products. We develop and manufacture such offerings as
TOYOKALON synthetic fiber for top global wig and hairpiecebrands, packaging tapes that include hand-cuttable andprinting tapes, laterally stretched Calalyan Y polyethylene film.

● We implemented comprehensive emergency drills to● Upon the request of the Kanagawa Prefectural

ensure preparedness in case of earthquake or fire.
● We continued to strive to raise awareness of safety throughsafety training sessions to help employees embrace the“pointing and calling method.” Machines simulating dangerous situations also offer hands-on experience toemployees.
● We implemented special training for operating cranes aswell as training that nurtures employees’ ability to anticipate
risk, leading to the building of a structure for “cultivating
safety-conscious employees who do not get hurt or cause
others to be harmed.”● We conducted complete cleanups of the plant and nearby
streets on the third Wednesday of every month.
To deepen our interactions with local residents, wemade the square in front of the plant’s main gate available
for a summer festival held by a nearby neighborhood
association. We also set up food stands and an employee
band performed during this event.

Government, we hosted a plant tour for local residents as apart of “Local Environmental Seminar” and sought to cultivate an understanding of our environmental initiatives aswell as manufacturing processes. The prefectural government’s following website reports on the seminar.
【URL】
http://www.pref.kanagawa.jp/cnt/f7013/p420043.html(Japanese only)

CSR Policies
33 local residents participated in the Local Environmental Seminar plant tour
(February 2, 2012)

General Manager’s Policies

Tatsuhiro Aoyagi
Senior Executive Officer,
General Manager of
Ofuna Plant

Environmental, Safety and Quality Policies

Philosophy: We aim to contributeto and prosper with the communityof Kamakura, which abounds with
cultural, historical and environmental legacies.
Goals: We will contribute to thecommunity and corporate progressby making the environment, safety
and quality our top priorities.
1. 省エネルギー、廃棄物の削減を促
1. Reduce our environmental foot進し、環境負荷を低減する。
print by conserving energy and2. 原料・製品・物流・廃棄までの安全
cutting waste
性管理、地域との対話・交流を継続
2.
Comprehensively manage safety
的に実施する。
relating to raw materials, products, logistics and disposal andcontinue to engage with thecommunity<Environment>• Comply with laws and ordinances and enhanceenvironmental awareness• Act in line with medium-term environmental planand improve performance• Contribute to the community<Safety>• Cultivate a safety-oriented workplace where
nobody gets hurt or causes others to be harmedChildren bearing a Mikoshi (portable shrine) from the local Shiogama Shrine upon theirshoulders during the neighborhood association’s summer festival (July 10, 2011)<Quality>• Continue to improve raw materials, processes
and product management to pursue and maintain high quality

Environmental Performance
Item

Units

Energy consumption indicator unit
CO2 emissions (from energy sources)
PRTR substance emissions
NOx emissions
SOx emissions
Soot and dust emissions
Water used
COD (BOD) discharges
Waste
Final waste disposal

Compared with fiscal 2002
10,000 ttttt
1,000m3ttt

Fiscal 2008

Fiscal 2009

Fiscal 2010

Fiscal 2011

0.80
1
1
2
0
0
70
0
211
22

0.94
1
1
1
0
0
87
0
188
32

0.79
1
1
2
0
0
86
0
199
30

0.75
1
1
2
0
0
59
0
124
21

Fiscal 2012 targets

0.81
1
1
2
0
0
—
0
175
18

The local residents’ brass band performing at the summer festival (July 9, 2011)

Fiscal 2012 Initiatives● Based on the philosophy, “We aim to contribute to and prosper with the community of Kamakura, which abounds with

cultural, historical and environmental legacies,” we promote dialogue and interaction with the local community. Particularly
in terms of our activities to reduce waste, we aim to reduce environmental burdens by curbing waste generation throughbetter yields and by improving our emission ratio based on efforts to separate waste.

Note: Totals of individual figures in this and other tables may not be exact because we rounded down fractions. The totals for this table match the figures in the Input and Output section on page 12 of the web-based CSR Report
2012 references.
We registered under the Japan government’s pilot emissions trading scheme in December 2008, so for CSR Report 2009 we calculated energy intensity and CO2 emissions based on the coefficients standards of the voluntary action plan of Nippon Keidanren, recalculating figures for previous reports, which we had based on the coefficients of the amended Law Concerning the Rational Use of Energy.

31

DENKA CSR REPORT 2012

DENKA CSR REPORT 201232

Reference
Site Reports 2012 Isesaki Plant

Site Reports 2012 Isesaki Plant

Fiscal 2011 Achievements

Isesaki Plant● Security and Disaster Preparedness

ProfileWe hold comprehensive emergency drills at the Isesaki and
Ota Plants to raise employee awareness about proper conduct during emergencies. Held in cooperation with local fire
departments, such drills involve simulations of initial fire suppression actions, reporting the situation to the fire department, the setup of in-house firefighting headquarters andextinguishing the fire using a fire engine pump. We also
confirmed rules pertaining to emergency response, including measures to be taken during emergencies as well as
how employees should work together under the guidanceof the fire departments. Preparing for a variety of disasters,
we will continually hold these drills to strengthen our disaster control structure.

■ Address
Isesaki Plant: 245, Nishigawara, Naganuma-cho, Isesaki, Gunma
Telephone: +81-270-32-1251
Isesaki Plant (Ota): 3015 Serada-cho, Ota, Gunma
Telephone: +81-276-52-4111■ Employees
267 (as of March 31, 2012)■ Major productsElectronic materials: DENKA THERMOSHEET EC,
DENKA Thermo Film ALS and other carrier tape, trays and covertape for semiconductor and electronic components processes
Functional materials and plastics: Styrene Sheet, CLEAREN
sheet and stretch film, and DENKA DX FILM used in solar cell
module back sheets■ Operations
This plant manufactures sheets and films from polystyrene,
vinyl chloride and other raw materials. The Ota facility has
the greatest production capacity in the Orient for theseproducts. We supply food and electronic packaging

materials that meet stringent requirements for performanceand quality management, and are endeavoring to bolster
our processing technologies while developing value-addedofferings.

and to practice pointing and calling with the aim of creating asafe workplace.
In addition, each year we provide the opportunity to learn
about mental health problems as part of our efforts to foster ahealthy and comfortable working environment. In fiscal 2011,
we held a training session for staff members presented by an
external lecturer from the Gunma Prefectural Occupational
Health Promotion Center. Our fiscal 2012 plans call for holding another training session for managers, with the theme of
how to guide the mental health care of their staff.

A training session on mental health problems for plant’s 240 staff members(September 8, 2011)● Social Contributions

CSR Policies
General Manager’s Policies

Toshiharu Kano

Environmental, Safety and Quality Policies

1. Pursue safety and health
2. Meet the challenge of CS13
objectives
3. Improve customer satisfaction
4. Continuously update facilities
5. Pursue the creation ofenvironment-friendly products<Environment>
Conserve energy and resources while harmoniously
coexisting with local communities<Safety>
Achieve zero accident as well as zero disaster status by clarifying managers’ responsibilities on
anticipating risk and workers’ responsibilities ontaking right actions<Quality>
Improve quality and swiftly and accurately meetcustomer needs

Executive Officer,
General Manager of
Isesaki Plant● Safety Education

We are continuously implementing wide-ranging safety education for frontline operators. Given that the plant’s operations
entail the use of a number of roller-type machines, we developed a machine to provide hands-on experience of accidents
involving a worker getting clamped by or caught in rollers. By
simulating such accidents, the machine is helping to heighten
employee awareness of the dangers.
Each day, before work begins, employees gather at eachsection to recite an inspiring slogan, the “three safety credos,”

As part of our social contribution efforts, plant employees
engage in cleanup activities in the plant’s immediate vicinity. In
Isesaki District, we clean up Yattajima Industrial Park’s Bando
Park. In Ota District, we clean up roads alongside the plant.
Each section has been assigned a territory that it has to takecare of and a number of the plant employees regularly engage
in collecting garbage and fallen leaves. We will continue toenhance and maintain the area’s amenities by continuing
cleanup activities.
In addition, ongoing “beautification day” initiatives areundertaken with the aim of making areas within the plant
more attractive. All of these initiatives are participated in by all
employees to help keep the plant and adjacent areas clean.

Environmental Performance
Item

Units

Energy consumption indicator unit
CO2 emissions (from energy sources)
PRTR substance emissions
NOx emissions
SOx emissions
Soot and dust emissions
Water used
COD (BOD) discharges
Waste
Final waste disposal

Compared with fiscal 2005
10,000 ttttt
1,000m3ttt

Fiscal 2008

Fiscal 2009

Fiscal 2010

Fiscal 2011

1.02
2
0
0
0
0
326
0
172
0

0.99
1
0
0
0
0
358
0
169
12

0.97
2
0
0
0
0
412
0
207
0

0.99
2
0
0
0
0
422
0
239
0

Fiscal 2012 targets

0.93
2
0
0
0
0
—
0
105
11

Note: Totals of individual figures in this and other tables may not be exact because we rounded down fractions. The totals for this table match the figures in the Input and Output section on page 12 of the web-based CSR Report
2012 references.
We registered under the Japan government’s pilot emissions trading scheme in December 2008, so for CSR Report 2009 we calculated energy intensity and CO2 emissions based on the coefficients standards of the voluntary action plan of Nippon Keidanren, recalculating figures for previous reports, which we had based on the coefficients of the amended Law Concerning the Rational Use of Energy.

33

DENKA CSR REPORT 2012

An employee undergoing a simulated
experience of a roller-related accident

Practicing pointing and calling
Newly employed staff members engaging in a cleanup activity (May 9, 2012)

Fiscal 2012 Initiatives● We will pursue environmental preservation initiatives while placing the highest possible priority on complying with relevant laws.
● As for environmental preservation, we have obtained ISO 14001 certification and have positioned the following as impor-tant initiatives: the reduction of waste; conservation of energy and resources; and ensuring distribution safety. In particular,
we will strive to curb waste generation primarily by enhancing our processing technology. We will contribute to the local
community, including ongoing beautification activities in areas surrounding the plant.
● Regarding health and safety, we are creating a positive and comfortable workplace mainly by promoting measures to pre-vent labor and equipment-related accidents, lifestyle diseases, heatstroke and mental problems.
DENKA CSR REPORT 201234

Reference
Site Reports 2012 R&D

Site Reports 2012 R&D

DENKA Innovation Center (Central Research Institute)

Fiscal 2011 Achievements● Occupational Safety and Health, Security and Accident

ProfilePrevention
Safety and health activities are carried out regularly based on
the motto: “maintaining an honest commitment to common
sense.” Accordingly, we steadily undertake safety activities that
include maintaining environmental management systems(EMS), raising safety awareness, regularly conducting fire
drills involving our in-house
firefighters and jointly holding
comprehensive fire drills with
the Machida Fire Department.

■ Address
5-1, Asahi-cho 3-chome, Machida, Tokyo
Telephone: +81-42-721-3611■ Employees
94 (as of March 31, 2012)■ Center Overview
The Central Research Institute began operating at its current
site after DENKA relocated its Meguro Research Center fromits Meguro-ku, Tokyo, location in 1962. As the spearhead of
DENKA’s product innovation, the facility has developed
numerous basic technologies in the areas of inorganic andorganic chemicals, petrochemicals and plastics that became
the groundwork for a series of the Company’s mainstay products. Serving as a focal point for DENKA’s R&D efforts, thecenter will concentrate on R&D initiatives based on mediumto long-term themes aimed at developing major products andnext-generation products while further reinforcing existingbasic technologies.

Comprehensive fire drill (November 4, 2011)● Communication with the Local Community● Topic

As part of our centennial celebration, plans call for the constructionof the new DENKA Innovation Center building. In preparation forthis endeavor, we have been concentrating on the building designin fiscal 2011, taking into consideration the environment and safety.
We are proceeding with this rebuilding project, which aims toestablish a symbol of DENKA that will be wide open to society.

We vigorously promote interactions with the local communityand social activities. Accordingly, we hosted tours for third
graders from Machida Dai-Yon Elementary School on
September 22, 2011, and third graders from Machida Dai-San
Elementary School in February 13, 2012. These educational
field trips included enriched content, including an up-close lookat the testing facilities and the opportunity to observe objects
through electron microscopes, activities that inspired the students to ask many unique questions.

Norihiro Shimizu
Senior Executive Officer
General Manager ofCentral Research InstituteIn line with our motto, “promoting
R&D to create future-oriented, nextgeneration products,” we are:
1. Pursuing research activities
through strengthened “industryacademia-government collaboration”
2. Generating new themes to meetmarket needs
3. Undertaking environmental andsafety initiatives

Environmental, Safety and Quality Policies
Based on Companywide safety and health plans, theCentral Research Institute works to continuously improve
Plan-Do-Check-Act (PDCA) cycles while expanding its
involvement in volunteer activities that conform to the circumstances of individual workplaces. Such activities areintended to maintain the institute’s environmental preservation and safety and health initiatives. The main activitiesof each department involve promoting the development of
positive workplaces that are accident, disaster and illness
free. These efforts are carried out in accordance withadministrative action plans that follow the Fundamental
Policies listed below.
1. Fundamental policies for responsible care activities:• Encourage initiatives to counter global warming• Promote efforts to contribute to society• Prevent environmental accidents
2. Fundamental safety and health policies:• Eliminate such safety-related accidents as explosions
and fires• Eradicate labor-related accidents• Prevent occupational diseases
3. Fundamental product quality-related policy• Improve quality at the new product development stage

As part of efforts to proactively contribute to local communities,
DENKA supports the Fureai Trio. (See also page 29 of printed
CSR Report 2012.) The trio held concerts at Machida Dai-Yon
Elementary School and at Machida Citizen’s Hall, and instituteemployees helped out at both events. On November 21, 2011,
in the Machida Dai-Yon Elementary School music room, children closely listened to the professionals’ performance andseemed to be tremendously impressed. On December 3, 2011,
an audience gathered at Machida Citizen’s Hall fully enjoyed thespecial experience of hearing a full playlist, live and in a welldesigned concert hall. Workshops in which anyone can try
playing the violin were held before and after the trio’s performance. At concert hall, sweets and sundries made at a neighboring facility employing people with disabilities were sold toraise money for charity. The institute employees who had volunteered also felt enriched by the experience.

● Other Activities
Students of Machida Dai-Yon Elementary
School on the plant tour

General Manager’s Policies● Social Contributions

A Fureai Trio performance and a violin workshop for elementary school children

Artist’s rendition of the completed building

CSR Policies

Particularly popular with the ladies attending was an experimentthat involved mixing powdered hyaluronate with water to createa high-viscosity solution that can be a highly effective as amoisturizer.

Students of Machida Dai-San Elementary
School on the plant tour

In addition, we welcomed people from the residents’ association and the neighborhood association of the Machida Dai-Ni
district on January 27, 2012, and members of the senior citizen’s “Shirakaba Kai” group on April 19, 2012. On both occasions, we hosted a tour and demonstrated some experiments.
“VIVA! Machida 2011” gathering meeting for Norihiro Shimizu, general manager of theinstitute employees co-sponsored by man- institute giving a speech at the meeting(October 14, 2011)
agement and the labor union

People from the residents’ association andthe neighborhood association of theMachida Dai-Ni district (January 27, 2012)

Shirakaba Kai members (April 19, 2012)

A lecture on mental health issues(October, 13, 2011)

Fiscal 2012 Initiatives
Regarding our ongoing safety and health activities, we will work to avoid all accidents and disasters. To this end, we will continuously make steady efforts, including maintaining our EMS as well as developing occupational health and safety management
systems, while always seeking a better way to implement such efforts.
In fiscal 2012, moreover, we will begin construction converting the Central Research Institute 1st Building into the new
DENKA Innovation Center main building. In designing the new building, we proactively incorporated environmental-friendly
design concepts, while aiming to create a place that is wide open to society by featuring such facilities as a spacious exhibition
spaces, preset tour guide routes, presentation rooms and an open laboratory. By doing so, we hope to encourage greater communication with the local community.
DENKA began participating in the Summer Vacation Children’s Chemistry Experiments Show* from fiscal 2012. Led by institute employees, especially younger researchers, we are planning a number of easily understandable experiments for the event,with a focus on subjects that are of immediate interest to children.
* Or Yume Kagaku-21: co-sponsored by the Japan Chemical Industry Association, the Chemical Society of Japan, the Society of Chemical Engineers, Japan, and the Japan Association for
Chemical Innovation.

35

DENKA CSR REPORT 2012

DENKA CSR REPORT 201236

Reference

Reference

Site Reports 2012 Overseas

Site Reports 2012 Overseas

Denka Singapore Pte., Ltd.
Merbau Plant

Denka Singapore Private Limited
4 Shenton Way #29-02 SGX Centre 2, Singapore 068807
TEL：65-6225-6120

Denka Singapore Pte., Ltd.
Seraya Plant

ProfileProfile■ Employees
30 (as of March 31, 2012)■ Operations
The Merbau Plant was DENKA’s first production facility in
Singapore. We established this plant in 1980 to participate in
the Singapore Petrochemicals Complex project. The complex
is located on Jurong Island, where we manufacture DENKA
BLACK. We began operating our 50% press facility in 1984,
augmenting lines in 1997. We set up a granulation facility in
2002. Owing to its superior liquid absorption, electrical andthermal conductivity properties and high purity, DENKA
BLACK is used worldwide in dry manganese and lithium-ion
batteries, power cables and semiconductor packaging materials.

■ Employees
74 (as of March 31, 2012)■ Operations
The Seraya Plant commenced operations to produce generalpurpose polystyrene in 1998. In 2006, the plant expanded its
facilities for manufacturing TX Polymer methyl methacrylate
styrene copolymer resin and CLEAREN styrene-butadiene
block copolymer. In April 2012, the plant completed further
construction on a facility to produce imidized polymers (SIP
Plant). Today, the combined annual production capacity of
the four facilities is 325,000 metric tons. The Seraya Plant is
becoming the DENKA Group’s largest styrene-based resin
production base.
CLEAREN styrene-butadiene block
copolymer

CSR Policies
General Manager’s Policies• While finding harmony between cultures of Japan and Singapore, we willaddress operational issues in accordance with Denka Singapore’s own
policies and encourage employees tobe proactive•
Eradicating occupational accidents
Yoshiteru Yamazaki
General Manager ofand disasters by learning from priorMerbau Plant
incidents• Promptly responding to increasingly
high demand for product quality

Denka Singapore Private Limited
4 Shenton Way #29-02 SGX Centre 2, Singapore 068807
TEL：65-6225-6120

Fiscal 2011 Achievements• Provided training related to the chemical plant’s
operations• Acquired ISO 28000 certification

Fiscal 2012 Initiatives

DENKA IP, a heat resistant modifier for ABS• We will continue to implement the changeover from paper
to plastic bags
• We will promote energy- and resource-reduction measures based on improved manufacturing processes• We will draw up a plan for the regular repair of facilities
during fiscal 2013 and will promote it

CSR Policies
DENKA BLACK is acetylene black, a type of carbon black withhigh purity and electrical conductivity

General Manager’s Policies
1. Maintain zero-accident record
2. Maintain compliance3. Achieve a better working
environment
4. Educate employees andstrengthen our organization

Fiscal 2011 Achievements and Fiscal 2012 Initiatives
In fiscal 2011, regular repairs (shutdown maintenance) were carried out at the eight companies that comprise the Singapore
Petrochemicals Complex over a period of 40 days from late July through end of August. After the repairs, we resumed operations
with no accidents or disasters.
As for safety activities in fiscal 2012, plans call for undertaking drills focused on emergency first response. With regard to quality,
we will strive to better meet demand for higher purity, particularly with regard to lithium-ion secondary cells.

Michio Kawamura
General Manager ofSeraya Plant

The completion ceremony of IP resin production facility (April 25, 2012)

Seraya Plant employees
Merbau Plant employees

37

DENKA CSR REPORT 2012

An HSE* campaign ceremony at the Singapore Petrochemicals Complex(June 26, 2012)*Initiatives for Health, Safety and Environment

Practicing extinguishing fires in the presence of the local fire department (SCDF) as wellas suppliers

DENKA CSR REPORT 201238

Reference
Site Reports 2012 Overseas

Site Reports 2012 Overseas
Denka Advantech Private Limited
4 Shenton Way #29-02 SGX Centre 2, Singapore 068807
TEL: 65-6321-9530

DENKA Advantech Pte., Ltd.
Tuas Plant

Fiscal 2011 Achievements<Safety>
1. Safety education was carried out using an in-house safety
video produced in fiscal 2010 and KYT (risk prediction
training) sheets
2. Indicated hazards using standard symbols and implemented countermeasures against themProfile■ Employees
60 (as of March 31, 2012)■ Operations
The Tuas Plant, established in 1991 in Singapore, produces
fused silica filler, a material mainly used as a sealant for
semiconductor packaging. Currently, the Tuas Plant’s focus
is on spherical fused silica filler to accommodate advances insemiconductor packaging as well as the trend toward moreenvironment-friendly products, and it is striving to enhancequality and reinforce production. Working in cooperation with
the Omuta Plant, the plant supplies products mainly to China
and Southeast Asia.

<Environment>
To reduce environmental burdens, we are continuously conducting the following initiatives:
1. Saving energy by enhancing productivity
2. Curbing energy consumption by turning off unnecessary
lighting and reducing air leakage from machinery
3. Recycling protective large-sized polyethylene covers andliners used in flexible containers and wooden pallets.

An example of recycling
Warning symbol

Spherical fused silica

An example of how
a warning symbol
should be displayed

An example of acountermeasure against
exposure to a hazard(a cautionary indication is
painted on the floor tocatch the attention of
those who pass by)

3. Made employees undergo external seminars and obtaincertifications aimed at upgrading their skills
4. Conducted thorough monthly cleanups involving all
employees
5. Conducted such annual activities as fire drills, in-plant
patrols and checks of firefighting equipment<Quality>
One recent quality-related issue related to operations is the
reduction of product contamination by foreign matter whichis too small to be seen by the naked eye. We continuallywork to address this issue through the improvement of production processes. To eliminate such foreign matter fromthe raw material stage, we also support and cooperate withraw material manufacturers.
From the second half of fiscal 2011, we have beenrenewing and repairing aging buildings and facilities toimprove the plant’s working environment.

CSR Policies
General Manager’s Policies

Toshiyuki Kageyama
General Manager ofTuas Plant

1. Going back to basics, we will secure
plant security and employee safety
2. Promoting energy and resource conservation, we will reduce environmental burdens
3. We will reduce customer complaints
and pursue better customer satisfaction by controlling risks pertaining to
product quality
4. We will develop a supply system thatmeets market demands and technological trends
5. We will make cost reduction efforts
by improving production processes
and technologies

A fire drill

An emergency drill involving responding tochemical leakage

Fiscal 2012 Initiatives

Tuas Plant employees<Safety>
1. We will prepare safety slogan posters
2. We will conduct worksite patrols to ensure that employees are correctly wearing protective equipment
3. We will conduct Hiyari-Hatt accident control reporting
In addition, we will continue the initiatives listed in items 3through 5 of “Fiscal 2011 Achievements.”<Environment>
From fiscal 2013, Denka Advantec will be required to report
its energy consumption volume as well as energy-saving
measures to the Singaporean Government. Consideringthat fiscal 2012 is the year in which said report will be prepared, we will further promote and activate our energy saving initiatives.

39

DENKA CSR REPORT 2012

<Quality>
The Technical Service Center, under construction from fiscal
2011, was completed in early fiscal 2012 and will sooncome into full-scale operation. The purpose of the facility is
not limited to customer service but includes such tasks as
product evaluation with regard to quality following changes
in production processes as well as verification tests.

The Technical Service Center

DENKA CSR REPORT 201240

Reference

Reference

Site Reports 2012 Overseas

Site Reports 2012 Overseas
Address: Unit 9B, Modern Industrial Square, No. 333 Xingpu Road,
Suzhou Industrial Park, Suzhou, Jiangsu, China 215126
Telephone: +86-512-6287-1088

Denka Advanced Materials (Suzhou) Co., Ltd.
ProfileDenka Chemicals Development Suzhou Co., Ltd.

Address: Unit 1D, Modern Industrial Square, No. 333 Xingpu Road,
Suzhou Industrial Park, Suzhou, Jiangsu, China 215126
TEL: 86-512-6280-6808

Profile■ Employees■ Employees

71 (as of March 31, 2012)

10 (as of June 1, 2012)■ Operations
In January 2006, this company was established as
DENKA’s first production and sales subsidiary in China
since World War II. The company manufactures carrier
tape for electronic packaging and micro-slit products, while
responding to domestic users’ demand for higher quality.

■ Operations
In China, DENKA provides such products as chloroprene rubber, electronic materials, styrene-based synthetic resins, special cement additives for concrete to the markets of automotive,
home electronics and civil engineering and construction materials. To promptly and accurately respond to demands for analysis, performance evaluation and product improvements fromconsumers, Denka Chemicals Development Suzhou wasestablished in December 2010 as a new R&D base in Suzhou,
China, starting operations in August 2011.
Currently, the company conducts R&D pertaining to synthetic rubbers (chloroprene and DENKA ER) and HARDLOC
acrylate-based 2-component type adhesive. Since fiscal
2012, it also conducts research on special cement additives
for concrete.

CSR Policies
General Manager’s Policies
1. Bolster safety initiatives to maintain our zero-accident record
2. Strengthen initiatives for environment preservation
3. Undertake education and drills, continue to work to upgrade workplaces

CSR Policies
General Manager’s Policies

Yuichi Kadoya
General Manager

Fiscal 2011 Achievements

Tetsumi Ikeda
General Manager● Initiatives for Eradicating Occupational Accidents● Environment Preservation• To identify danger spots needing improvement, management-level and above personnel conduct safety patrols.
• Each day, before work begins, employees gather to recitesafety slogans featured on an in-house prepared calendar
to raise their safety awareness.

• Aiming to reduce waste generation, we constantly strive
to improve manufacturing yields.
• Striving to eliminate wasteful use of lighting and thereby
reduce energy consumption, we have posted signs
admonishing against the unnecessary use of lighting nearswitches.
● Beautification Activities around the Plant• We are conducting beautification activities around theplant. These activities also aim at raising employee awareness of Four-S activities*
Reciting a safety slogan

A safety slogan featured on the calendar

1. Pursue zero-accidents and zero-disasters
2. Promote human resource development by enrichingeducation and training
3. Improve the working environment while ensuring
strict compliance
4. Enhance product quality by pursuing development
while improving customer service

Fiscal 2011 Achievements
In fiscal 2011, we focused on the following:• Preparation of operational procedure documents forequipment while providing training on handling such
equipment. Clearly labeling equipment to ensure attention
to safety.

• Tightening of controls on handling, storage and disposalof chemicals.
• Raising employee awareness of safety through safety
meetings and education.
• Implementing on the job-training aimed at developing
human resources and enhancing product quality.

*An initiative to ensure the four-Sfeatures at the workplace. The
four-S’s refer to Seiri (tidy), Seiton(organized), Seiketsu (clean) andSeiso (cleaning).

● Initiatives for Zero-Accident• Reflecting the results of a voluntary check of firefighting
equipment and an audit by a governmental institution, we
reviewed and improved our fire prevention measures.

Fiscal 2012 Initiatives
In fiscal 2012, we will continue to enforce disaster prevention measures,
secure occupational safety and reduce waste generation. We will also pursue
energy-saving efforts. Rallying all employees, we will strive to upgrade these
CSR activities.

In the entrance hall, a corner displaying the company’s products

41

DENKA CSR REPORT 2012

DENKA CSR REPORT 201242

Reference

Reference

Site Reports 2012 Major Affiliates

Site Reports 2012 Major Affiliates

DENKA Polymer Co., Ltd.

http://denkapolymer.co.jp

ProfileProfile■ Address■ Address

Head Office: 12-8 Kiba, 5-chome, Koto-ku, Tokyo
Telephone: +81-3-5245-3641
Plants: 3 in Chiba Prefecture (Sakura, Goi, Katori)

Head Office: Nihonbashi Mitsui Tower, 1-1 Nihonbashi-Muromachi
2-chome, Chuo-ku, Tokyo
Telephone: +81-3-6214-3236
Plants: Gosen, Niigata (Niigata Plant, Kagamida Plant)■ Employees
500 (as of April 1, 2012)■ Major products

Shinji Sugiyama
President

http://denka-seiken.jp

DENKA SEIKEN Co., Ltd.
■ Major products

Influenza vaccines, bacteriological diagnostic reagents, virologicaldiagnostic reagents, clinical chemistry diagnostic reagents, immunological diagnostic reagents, point of care testing (POCT) products■ Employees
577 (as of April 1, 2012)

OPS products, prepared food trays, food containers, PSP foodtrays, SOFLIGHT products, agricultural packs and stretch films forfood packaging

Fiscal 2011 Achievements and Fiscal 2012 Initiatives● Main Initiatives and Activity Report

DENKA Polymer pursues weight cutbacks for all products,
aiming to create environment-friendly packaging that contributes to energy and resource conservation. We are carefully using resources and are striving to reduce industrial
waste. For example, by recovering scrap plastic materials
at manufacturing lines, we are eliminating the waste of suchmaterials while keeping the lines tidy.

is situated on the premises of Ekokkru Koto, a municipal
facility for environmental education aimed at deepening
people’s understanding of recycling. The facility also offers
employment for people with disabilities. We are helping tofoster a resource recycling-oriented society at the local
community level by proactively participating in this recycling
business and helping to get it on track.
● Overview of the Koto-ku-Based Styrene Foam Recycling● Recycling Initiatives: Aiming to Create a RecyclingOriented Society at the Local Community Level

Responding to customer requests, we are recycling thewhite trays made of PSP (polystyrene paper) foam commonly used for food packaging in order to reduce environmental burdens and improve economic efficiency. In
addition, we have been participating in the Koto-ku (Tokyo)based styrene foam packaging recycling business since
fiscal 2010.
● Participating in the Koto-ku-Based Recycling Business

Koto-ku is one of municipalities where cutting-edge global
warming prevention activities are taking place. For example,
the Styrene Foam Recycling Pilot Business was launchedthree years ago in April 2010. Plans call for upgrading thispilot business into a full-fledged business in April 2013. We
are proactively cooperating with this pilot business as a
Koto-ku-based food packaging manufacturer.
This business involves the recovery of styrene foam
packaging from 9,400 collection points within Koto-ku andaccumulated in Ecomira Koto, a recycling facility operated
by the NPO Chikyu-Sen Club. After being sorted at thefacility, the used packaging is processed into pellets thatcan be used as resin raw materials for plastic products. We
provide wide-ranging advice and support to this business inaddition to receiving and recycling the pellets as a raw material.
It is the nation’s first attempt to recycle all of the foodpackaging collected within an entire local municipality. In
addition, as a unique business structure in which a local
government body, residents, an NPO and a business operator work together to support resource recycling, the business is drawing public attention.
Ecomira Koto provides site tours and hands-on
experience to elementary and junior high school students. It

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DENKA CSR REPORT 2012

Business

1. The Koto-ku Government and Chikyu-Sen Club NPO
jointly run the Styrene Foam Recycling Pilot Business
2. Purposes are:1) To promote the recycling business and thus global
warming prevention while creating a resource recyclingoriented society2) To help people with disabilities achieve independence bygenerating employment for them3) To provide environmental education involving site tours
and hands-on experience
3. Term
Pilot business: Three years from April 2010 to March 2013
Full-fledged business: From April 2013 and beyond
4. Products eligible for recovery: Styrene foam products
PSP foam: containers used for natto, pot noodles, foodtrays, etc.
EPS (expanded polystyrene): boxes used to transport fish,buffer materials, etc.
5. Roles and responsibilities
Koto-Ku Government: Collection and transport of usedstyrene foam
Chikyu-Sen Club: Operation and management of recycling
facilities (separation, storage and recycling of used styrene
foam and sale of recycled materials)
DENKA Polymer: Reception of recycled materials andmanufacturing products using such materials(In accordance with the Food Sanitation Act, collectedmaterials are not recycled into food packaging materials)
6. Recycling facility
Facility name: Ecomira Koto
Location: Shiomi, Koto-ku, Tokyo, Ekokkru Koto, theCleaning Office and Information Center for Environmental
Education

Shigetoshi Toyooka
President

Fiscal 2011 Achievements
In the area of safety and health activities, we conducted risk
assessments to prevent major accidents. We also held seminars on mental health issues with lectures by external instructors as well as safety and health education for employees andmanagers to ensure a more comfortable workplace.
In promoting environmental burdens reduction to preserve the environment, we held dialogue sessions with local
residents who monitor the environment surrounding ourplants. In these sessions, we exchanged opinions in accordance with the Guidelines for Global WarmingCountermeasures set forth by Japanese Government onsuch matters as the suspension of boilers to prevent thegeneration of white smoke.

Employees who participated in the cleanup activity

To foster more friendly ties with the local community, we
continued to clean up irrigation channels around the Niigata
Plant. Furthermore, we held meetings to which we invitedneighborhood association representatives to facilitate theexchange of opinions. We will further accelerate these
activities.
In terms of social contribution, we made donations for
those who were devastated by the Great East Japan
Earthquake with the wish for the earliest reconstruction.
Moreover, we offered diagnostic kits that enable users topromptly diagnose norovirus infections, an area in which
DENKA SEIKEN boasts technological strengths.

Cleaning an irrigation channel

Fiscal 2012 Initiatives
We will continue to focus on our basic initiatives, including safety and health activities to prevent major accidents and disasters. Together with this, we will strive to further deepen communications with the local community to become a company
that society can rely on while maintaining our dedication to environmental preservation.

DENKA CSR REPORT 201244

Reference

Reference

Site Reports 2012 Major Affiliates

Site Reports 2012 Major Affiliates

CRK Corporation

http://www.crk.co.jp

Hinode Kagaku Kogyo

ProfileProfile■ Address306-banchi, Koyagi-cho, Takasaki, Gunma
Telephone: +81-27-362-7510■ Employees
66 (as of May 1, 2012)■ Major products
Rubber compounds, industrial rubber products, thermal
expansion fire-resistant rubber products, butyl adhesivetape, water swelling leakage stop rubber tape and quakeproof manhole joints■ Address:
660 Aza Kuratani, Maizuru, Kyoto
Telephone: +81-773-75-5760■ Employees:
41 (as of April 1, 2012)■ Major products:
Major Products: YORIN (fused magnesium phosphate),
TORETARO (fused silicate phosphate fertilizer), mixed fertilizer, chemical fertilizer

Haruo Kimura
President

Fiscal 2011 Achievements● Energy Saving Measures for Facilities

We started risk assessment activities. We thoroughly identified the risks at most dangerous facilities at each worksite
and the Safety and Health Committee is considering countermeasures against those risks.
● Seminars for Junior Site Supervisors

Through the renewal of aging facilities, we implemented
energy saving measures. Specifically, at our refining plant
we replaced a double-roll machine with two single-rollmachines. To improve safety, we intend to change the voltage of the electric power we take from the grid from 3,000V
to 400V.

Nine junior site supervisors underwent TWI-4J training* provided by external trainers.

● Energy Saving Measures in General● Changeover to Fuel That Produces Less CO2 Emissions

Our CO2 emissions decreased by 24% year on year thanks
to a fuel changeover from A heavy oil to LPG that has been
conducted in line with the renewal of our boilers. Moreover,
we expect that the abovementioned changeover will lead toa 14% year on year decline in energy consumption.

Shizuo Takagi
President

Fiscal 2011 Achievements● Risk Assessment Activities*TWI-4J: Training Within Industry in the areas of the four-Js: Job instruction, Job relations(to learn how to relate with people), Job methods (to learn how to improve methods) andJob safety.

http://www.hinode-kagaku.co.jp

With the slogan “Aiming to contribute to society andfacilitate employees’ self-fulfillment through fertilizer
production,” in fiscal 2011 we implemented a number of
initiatives under the following policies:● Complying with laws and regulations, we will contributeto society while striving to survive the competition in fertilizer industry by securing profits.
● Fully utilizing each employee’s uniqueness and strengths,

As part of our summer energy conservation efforts, working
hours in the production section were changed, from day
shift only to a flexible two-shift system. In addition, we further insulated high-temperature facilities and applied insulation films to windows that receive strong afternoon sunlight.
● Awards

In fiscal 2011, the Chief of the Takasaki Labour Standards
Inspection Office presented us with an award for our dayto-day safety efforts. The award was given at the Industrial
Safety and Health General Meeting of Takasaki Area.

we will sincerely endeavor to realize our ideals.
• After the Great East Japan Earthquake, we strove toenhance our productivity with the aim of supporting otherfertilizer manufacturers. Consequently, our energy consumption intensity (index for indicating energy efficiency)
improved.
• Focusing on environment-related issues, we provided
training on compliance with laws and regulations for theheads of each section and thus raised their awareness.

• The risk assessment method was adopted throughout
the Company, from the back office to the production site.
• By striving to rejuvenate “Kaizen” improvement proposals
at the workplace, we created a more favorable working
environment.
• We prepared documents and records required for implementing the “KES Step 2” environmental management
system, completing the establishment of the system.
• As for Good Company Program activities, we enrichedthe content of our in-house education. Specifically, we
provided training on such matters as the maintenance offacilities and statistical analysis methods while ensuringthat employees possess wide-ranging backgroundknowledge with regard to the fertilizer manufacturingindustry.
• We proactively conducted cleanup activities at neighboring communities.

Fiscal 2012 Initiatives• We will conduct comprehensive risk assessments to identify danger spots no matter how small and to implement
appropriate countermeasures.
• We will develop a system to measure the weight of raw
materials with the aim of reducing workloads, improving
productivity and tightening quality control.
• We will promote, in addition to developing the aforementioned system, the automated measurement of raw materials to reduce dust at the worksite and thus improve theworking environment.
• We will promote measures for improving the workplaceenvironment. Addressing the most urgent issue, we will
relocate our press facilities to a newly built plant to eliminate the generation of mist.

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DENKA CSR REPORT 2012

• We will improve the arrangement of plant facilities andbuildings and thus improve distribution efficiency within
the plant. Specifically, we will establish additional material
and product warehouses.
• We will continue to implement energy conservation efforts
during summer based on a review of our production
schedule.
• We adopted MSDSplus in addition to MSDS* that corresponds to GHS** and are identifying designated chemical
substances contained in our products. This move will
increase our responsiveness to our customers’ demandfor Green Procurement.
**MSDS: Material Safety Data Sheets**Globally Harmonized System of Classification and Labeling of Chemicals

Training session on how to use the Automatic
External Defibrillator (October 20, 2011)

Fire drill (October 20, 2011)

Fiscal 2012 Initiatives
We will continue to contribute to society and facilitate employees’ self-fulfillment through fertilizer production.
• Complying with laws and regulations, we will contribute to society while striving to survive the competition in the fertilizer
industry by securing profits.
• We will work to achieve our full potential as an organization by fully utilizing each employee’s uniqueness and strengths.

DENKA CSR REPORT 201246

Reference
Site Reports 2012 Major Affiliates

DENKA Azumin Co., Ltd.

http://www.denka-azumin.co.jp

Profile■ Address
118, 5 Chiwari, Nimaibashi, Hanamaki, Iwate
Telephone: +81-198-26-2131■ Employees
29 (as of April 1, 2012)■ Major products
Azumin (magnesium humate fertilizer)

Mamoru Nakamura
President

Fiscal 2011 Achievements● Response to the Great East Japan Earthquake

On March 11, 2011, an earthquake with a low six intensity
was recorded in Hanamaki City, Iwate Prefecture.
Fortunately, none of our employees or their families suffered
any damage. As our operations were already suspended
when the earthquake struck, our production facilities alsosustained no significant damage. However, the earthquake
damaged water pipes and a water well on the premises aswell as transformer in the powerhouse.
When another earthquake, with an upper five intensity
struck on April 7, 2011, our facilities were running and wewere forced to suspend operations. However, we suffered
no damage thanks to our constant practice, which enabled
us to promptly respond to this event.
Given the circumstances, we strove to contribute to theearliest recovery of the devastated areas through the following initiatives:• We lobbied the relevant governmental institutions, including the Iwate Prefectural Government in tandem with port
management bodies of Ofunato and Miyako as well as
logistic service providers, with the aim of facilitating theearliest possible restoration of service at local ports.
• Our Fertilizer Department together with farm producers
conducted tests for improving farmland that had sufferedsalt damage with the aim of contributing to the restorationof the agricultural industry. These efforts confirmed that
“Azumin” fertilizer has a beneficial effect on such farmland(see also page 7 of printed CSR Report 2012).
● Response to the Request for Energy Conservation• From July to September 2011, we strove to save energy
in accordance with the request of the Japanese Ministryof Economy, Trade and Industry to cut energy consumption by 15%. As a result, we succeeded in reducing year
on year energy consumption by 29%.
• We amended our operating schedule and suspended
operations for 19 days from December 2011 to February
2012 to cooperate with energy conservation.
● Building Relationships of Trust with Local Communities• In tandem with the Hanamaki City Nimaibashi Council for
Environmental Pollution Countermeasures, we briefed
local residents on how we respond to such disasters as
earthquake to deepen their understanding of disaster prevention measures.
● Efforts to Maintain a Zero-Accident Record• One accident that required no time off occurred andended our zero-accident record. However, we continue topursue safety measures, setting a new target of achieving
1,000 days of zero-accident operations.
• An employee received an award from the Hanamaki City
Association for the Safety of Hazardous Materials for the
excellent handling of hazardous materials.
• We endeavored to ensure the safety of on-premises distribution by installing devices to prevent accidental falls,
introducing specialized vehicles for working at height andconducting inspections of load volumes.
● Environmental Preservation Activities• In accordance with the Hanamaki City Pollution Control
Agreement, we measured air, water and noise pollution as
well as vibration from our facility and reported that all
were within limits.

Fiscal 2012 Initiatives• We will maintain a zero-accident record through efforts to ensure safety and stable operations.
• We will pass on production techniques to the younger generation while striving to enhance our technologies and develop
new products.
• We will rejuvenate communications to promote safety and environmental preservation activities as well as legal compliance.

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DENKA CSR REPORT 2012