Denka GroupCSR REPORT

2016
Site Reports

CONTENTS
2

Omi Plant

4

Omuta Plant

6

Chiba Plant

8

Shibukawa Plant

10

Ofuna Plant

12

Isesaki Plant

14

Denka Innovation Center

16

Denka Singapore Merbau Plant

17

Denka Singapore Seraya Plant

18

Denka Advantech Tuas Plant

19

Denka Advantech South Plant

20

Denka Advanced Materials Vietnam

21

Denka Infrastructure Malaysia

22

Denka Advanced Materials (Suzhou)

23

Denka Chemicals Development Suzhou

24

Denka Inorganic Materials (Tianjin)

25

Denka Electronics Materials Dalian

26

Denka Performance Elastomer

27

Icon Genetics

28

Denka Polymer

29

Denka Seiken

30

CRK

31

Hinode Kagaku Kogyo

32

Denka Azumin

33

Environmental PerformanceSite Reports 2016

Site Reports 2016

Omi Plant
Fiscal 2015 Achievements under the CSR Policies

Overview
Operations Since our establishment in 1921, we have maintained unique carbide

chemical operations that exploit in-house assets. These include Mount
Kurohime, which has five billion metric tons in limestone reserves,and an in-house power generation capacity of 180,000kW. Our broad
product range includes calcium cyanamide, chloroprene rubber andcement. Having expanded into the fields of inorganic fine chemicals andpharmaceuticals in recent years, we are continuously taking on diverse
challenges in the field of chemistry.

Products

The Himekawa Port Comprehensive Emergency Drill

Comprehensive Emergency Drills

Assuming a major earthquake, we participate in joint fire drills with representatives from
Himekawa Port and relevant government agencies.
Using a fire hoses to put out an oil fire (September 29, 2015)

We carry out comprehensive emergency drills on our premises in tandem with the Itoigawa
City Fire Department and other local fire brigades.
Fire extinction practice (June 30, 2015).

The Himekawa River Cleaning Mission

Beach Cleanup Campaign

We take part in annual cleanup activities hosted by the Sekikawa and Himekawa River
Systems Water Pollution Countermeasure Liaison Council in conjunction with national “River
Protection Month.” Our activities include cleaning areas around the Himekawa River, a class
A river.
Cleaning the river bank (July 3, 2015)

Every year, we engage in beach cleanup campaigns on the Omi coast.
Plant staff who participated in the beach cleanup campaign around the mouth of theTomigawa River (August 28, 2015).

Itoigawa Omanta Festival

The First Denka Big Swan Football Festival

A number of plant staff participate in this summer festival held in Itoigawa City.
A grand festival parade (August 1, 2015)

In collaboration with Itoigawa City and other relevant organizations, we held a football eventat the DENKA BIG SWAN STADIUM to which we invited approximately 800 children and theirparents from local and surrounding communities. With athletes from the ALBIREX NIIGATA
football club providing instruction, children took part in football clinics while interacting eachother through games.
Children lining up at the pitch at the event (October 18, 2015)● Elastomers & Performance Plastics: Chloroprene rubber, POVAL, etc.
● Infrastructure & Social Solutions: Cement, special cement additives,

calcium carbide, calcium cyanamide, ALCEN, etc.

● Electronics & Innovative Products: Monosilane gas● Life Science & Environment Products: Macromolecular sodium

hyaluronate● Others: Eel farms

Address

2209, Oaza Omi, Itoigawa, Niigata

Telephone: +81-25-562-6105

Employees 851 (as of March 31, 2016)

Message from the General Manager

Toshiharu Kano
Senior Managing Executive Officer,
General Manager of Omi Plant

The Omi Plant is Denka’s main plant and utilizes a range of resources to manufacture goods
essential to society. Our activities sometimes entail the handling of hazardous substances
in a high-temperature environment. Accordingly, we have made the careful handling of such
substances and the prevention of their release into the environment our most important mission
as a chemical company and recognize said practices as key to continued production activities.
In addition, we view the payment of corporate income taxes and the creation of employment
as essential aspects of our contribution to the local economy. Therefore, it is important tomaximize profitability and create job opportunities in the community. In the face of growing
calls for business initiatives aimed at revitalizing rural regions, we have committed ourselves todialogue with the local community while securing sustainable profit, thereby creating a plantdeserving of society’s trust.

CSR Policies■ General Manager’s Policies❶ Occupational Safety and Health❹ Production Technologies● Putting the utmost priority on occupational safety● Resolving fundamental issues related to theand health● Achieving zero accidents and disasters● Ensuring managers are prepared to deal with worst
case scenarios and conducting hazard prediction● Ensuring each operator is aware of their responsibilities
regarding safe behavior

generation facilities● Realizing low-cost processes● Reducing facility failures❷ The Environment and Facility Security❺ R&D● Complying with environmental and facility security● Releasing new products as early as possible● Accurately assessing customer requests● Conducing profit-oriented R&D● Enhancing technical services

standards● Securing the safety of neighboring areas● Stepping up security measures● Thoroughly removing dangerous materials while
getting rid of combustible materials from hightemperature worksites❸ Initiatives for the Next 100 Years● Enhancing productivity● Reducing inventories● Creating an optimal production system attuned tosales circumstances2

improvement of in-house power generation facilities● Achieving the full utilization of thermal power

Denka Group CSR Report 2016

Future Initiatives
We will ensure that every employee places the utmost priority on safety. We will also continuously promote safety assurance
activities that leverage the strength of each department. Proactively engaging in environmental conservation and social
contribution initiatives undertaken both inside and outside the plant, we will create a facility deserving of the trust of the local
community.

Denka Group CSR Report 2016

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Site Reports 2016

Site Reports 2016

Omuta Plant
Fiscal 2015 Achievements under the CSR Policies

Overview
Operations Established in 1916, the Omuta Plant is Denka’s oldest plant and thefirst to manufacture carbide and calcium cyanamide. Since that time, as
an inorganic chemical product manufacturing base boasting proprietary
electric furnace, high-temperature control and nitride technologies, theOmuta Plant has introduced a number of unique products. Currently, weare strengthening our operations related to fine ceramics and electronicmaterials in order to contribute to the development of the electronics,
automotive and numerous other industries.

Products● Infrastructure & Social Solutions: Calcium carbide, calcium cyanamide,

Address

1, Shinkai-Machi, Omuta, Fukuoka

Telephone: +81-944-52-1055

Message from the General Manager

Executive Officer,
General Manager of Omuta Plant

Omuta Daijayama Festival

We held special one-day chemistry classes aimed at providing fun learning experiences
for students and their parents at local community facilities and elementary schools (August
1, 2015; at Ecosanc Center in Omuta City). We also participated in Omuta City’s Omuta
Ecotown Fair, offering experimental science classes that opened the eyes of many attendees
to the possibility of chemistry (November 15, 2015).

We participated in the Omuta Daijayama Festival, the most popular of the area’s festivals,
with approximately 100 employees joining the main attraction of the festival, the “10,000
Person Dance.”(July 25, 2015)

Plant Tours

Blood Donation Campaigns

We invited high school and university students as well as members of agricultural
associations to tour the plant, with the aim of facilitating their understanding of our business
operations (May 29, 2015: Students from Miike Technical High School; June 8, 2015:
Students from Omuta High School; December 2, 2015: Students from Saga University;
March 8, 2016: Students from Kyushu University; a total of four occasions)

We cooperated with blood donation campaigns on two occasions, with a cumulative total of
269 employees donating blood (June 12 and December 8, 2015).

Volunteer Cleanup Activities

Internships

In collaboration with people from neighborhood, we undertook cleanup activities covering
areas around the plant. (June 29 and November 4, 2015)

We invited students from various high schools, vocational high schools and universities
within and outside the prefecture to participate in a workplace experience program at theplant (a total of nine students; August 2015: Students from Miike Technical High School,
Yame Technical High School, National Institute of Technology Kagoshima College and National
Institute of Technology Sasebo College; January to February 2016: Students from Toyohashi
University of Technology).

fire resistant materials for steel making, alumina cement and special
cement additives● Elastomers & Performance Plastics: Acetylene black● Electronics & Innovative Products: Fused silica filler, spherical alumina,
silicon nitride, boron nitride, ceramic electronic circuit substrates,
thermally conductive sheets, ceramic composite and LED phosphors

Employees 605 (as of March 31, 2016)

Hideki Hirano

Chemistry Classes for Children

In 2016, we celebrate a landmark year, the centennial of the Omuta Plant’s founding. We havecarefully maintained some of the original 100-year-old plant buildings, and some structuresare still being used now. Looking at it today, these representations of our heritage speak to
our predecessors’ outstanding technological capabilities and their unwavering commitment
to precise manufacturing. We are the beneficiaries of a rich legacy. At present, amid a rapidlychanging business environment, the outlook is becoming increasingly unclear. However, we
believe that a key to creating a plant that thrives over the next generation is realizing a vibrantworkplace environment where no one is in danger of accident or injury. Paying close attention
to social trends as well as the plant’s distinctive strength, we will maintain a high awarenessof what must be preserved and what must be changed. In these ways, we will tackle thechallenges presented by evolving trends, decisively moving toward our future.

Fiscal 2016 CSR Policies■ General Manager’s Policies❶ Encouraging every worker to freely share his/her opinions
and thereby creating a vibrant plant that thrives over the
next 100 years
1. Initiating structural reforms to ensure our ability to move forward
over the next 100 years while maintaining our mental flexibility
2. Realizing greater organizational strength through collaborative
action backed by a sense of unity among all workers, including
those from subcontractors, by cultivating a sense of ownership ineach worker along with an awareness of overall plant operations
3. Placing the utmost priority on the safety of people andimplementing a multi-faceted initiative to realize this priority in all
aspects of our operations
4. Assessing the current status of our technological and on-site
capabilities and thereby determining what needs to be preserved
and what needs to be changed❷ Promote R&D in tandem with customers by clarifying
development timelines
1. Increasing contact points with markets to analyze customer needs
and when they need it
2. Pursuing untouched technological development themes in order todeliver inspiring and innovative solutions❸ Creating a vibrant workplace with a strong safety-oriented
culture while giving due consideration to the environment
1. Managers are responsible for implementing the first three of thefollowing policies and frontline operators the remainder.
・ Making sure that activities of workplace under his/her supervision
are compliant with legal regulations and in-house rules
・ Executing facility and equipment inspections, providing sufficient
employee education and preparing operational procedure
documents without any shortfalls

4

Denka Group CSR Report 2016

・ Reaching out to operators on-site and communicating with themto assess and improve their handling of issues
・ Practicing the “pointing and calling” technique immediately prior
to commencing an operation
・ Maintaining a strong determination to comply with rules
・ Protecting colleagues and yourself from danger through thepractice of “Sorting,” “Setting-in-Order” and “Shining”
2. Departments in charge of safety and facility security ensure theeffectiveness of their safety assurance activities by taking into
consideration the nature of their operations
3. Nurturing an environment-conscious mindset to ensure legal
compliance and promote the Sixth Medium-Term Environmental Plan

❹ Engaging in facility maintenance and process improvement
activities to stabilize quality and reduce cost
1. Stepping up facility management given the fact that plantconditions directly affect output
2. Achieving lower production costs and higher quality throughprocess improvement and more stringent operational management,
thereby enhancing our competitiveness3. Boosting product quality through the introduction of a new quality
management system in preparation for entry into new markets❺ Creating a company deserving of society’s trust andemployees’ pride while contributing to the creation of abetter society
1. Society’s trust is earned only through the actions of individuals
2. Therefore, everyone at the plant is encouraged to continuously
develops his/her competencies while maintaining legal complianceand engaging in sincere dealings

Future Initiatives
Following the celebration of the centennial of Denka’s founding, in 2016 the Omuta Plant marks the landmark 100th year of
its inception. Going forward, we will proactively engage in volunteer cleanup activities, host chemistry classes for children
and take part in charity fund raising for communities. With everyone at the plant embracing a sense of ownership as well asan awareness of its overall operations, all plant employees as well as those from subcontractors will work as one, thereby
maintaining a key production base driving Denka’s Group operations.

Denka Group CSR Report 2016

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Site Reports 2016

Site Reports 2016

Chiba Plant
Fiscal 2015 Achievements under the CSR Policies

Overview
Operations The Chiba Plant serves as a core production base bolstering Denka’s

petrochemical operations. Begun as a styrene monomer facility, theplant is now also producing polystyrene, ABS resins, CLEAREN styrenebutadiene block copolymer, transparent plastics and other styrene-basedmaterials as well as EVA emulsions and acrylic rubber while reinforcing
such plastic processed products as biaxially oriented polystyrene sheet(BOPS), vinyl chloride tapes and housing and environmental materials.

Products● Elastomers & Performance Plastics: Ultra-pure acetylene black, styrene

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

Advanced Chiba 50 Activities

Launching an Ultra-Pure Acetylene
Black Production Facility

In fiscal 2015, the Chiba Plant initiated the Advanced Chiba 50 activities in conjunction
with the celebration of the 50th anniversary of its founding. Aiming to transform the plant’sbusiness structure in preparation for the next 50 years, these activities are centered on
scrutinizing every cost element, stepping up the marketing of existing products through theenhancement of their functionalities and creating new businesses.

After completing an ultra-pure acetylene black production facility in April 2015, we brought
this facility to a full-scale operation in October. We will maintain safe operations while steadily
supplying products of high quality.

Comprehensive Emergency Drills

Holding a Safety Assurance Activity
Presentation Meeting with Subcontractors

We perform emergency drills in tandem with the local municipal fire department as well as a
joint fire brigade put together by companies based in the same industrial complex to ensure
readiness to swiftly and appropriately respond in the event of a natural disaster or otheremergency. The latest drill centered on handling a leak.

To ensure robust communication with our subcontractors, we invited their representatives tothe meeting to have them brief us on their safety assurance activities, thereby stepping up
collaboration aimed at achieving a zero accident and disaster status.

Passing Down Skills, Knowledge and Expertise

Inviting Elementary School Students on a Joint
Plant Tour during The Environment Month

We provided three training sessions with lectures by volunteer veteran employees. With theaim of passing their skills on and nurturing the next-generation of human resources, thesesessions focused on such subjects as finance and plant design.

During the Environment Month, which was designated by Japan’s Ministry of theEnvironment, we organized a joint plant tour with two neighboring companies (Maruzen
Petrochemical Co., Ltd. and Hitachi Chemical Company, Ltd.), welcoming 160 elementary
school students who got a close look at the mechanism of petrochemical complexes andtheir output as well as companies’ environmental initiatives.

monomer, polystyrene,* ABS resin, transparent polymers, heat-resistantpolymers, CLEAREN styrene-butadiene block copolymer, EVA emulsions
and Denka ER (*Product of affiliate TOYO STYRENE Co., Ltd.)● Life Science & Environment Products: Food packaging, housing andenvironmental materials and vinyl chloride tapes

Employees 480 (as of March 31, 2016)

Message from the General Manager
The Chiba Plant aims to remain a manufacturing facility deserving of society’s trust and, to thisend, works hand in hand with communities surrounding it to achieve mutual development.
At the same time, we will strive to fulfill our responsibilities with regard to environmental
conservation and safe operations while contributing to society through the creation of newvalue. Embracing “The Denka Value,” our new corporate philosophy, all plant workers commit
themselves to sincerely tackling future challenges with an earnest attitude.
■ Ensuring compliance■ Reinforcing operational excellence by nurturing human resources

Ken Koizumi
Executive Officer,
General Manager of Chiba Plant

Passing down technologies, skills and empirical knowledge such as “know-why”
Nurturing human resources equipped with independent-mindedness, a sense ofownership and strong commitment■ Continuously upgrading our facility security, occupational safety and health, environmental

and quality management systems■ Reducing environmental burdens through such means as energy and resource saving■ Contributing to local society

Proactively engaging in interaction with communities and disclosing information

CSR Policies■ General Manager’s Policies for Fiscal 2016
❶ Fulfill our social responsibilities by making constant improvements❷ Develop a more robust foundation for ensuring operational continuity
1. Nurture human resources
2. Facilitate a culture that places the utmost priority on safety while developing a foundation for safe operations
3. Secure stable profit to secure business continuity; Pursue relentless cost reductions to enhance our international competitiveness4. Transform our business structure by shifting from producing petrochemical commodities to manufacturing highly functional products
5. Create a lively and vibrant workplace where everyone enjoys a fulfilling and rewarding occupational life

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Denka Group CSR Report 2016

Future Initiatives
The Chiba Plant aims to remain a manufacturing facility worthy of society’s trust over the next 50 years. Accordingly, we
will place the utmost priority on safety and step up such ongoing initiatives as compliance, occupational safety and health,human resource nurturing, environmental conservation and local contributions in an effort to embody “The Denka Value,” a
new corporate philosophy.

Denka Group CSR Report 20167

Site Reports 2016

Site Reports 2016

Shibukawa Plant
Fiscal 2015 Achievements under the CSR Policies

Overview
Operations In 1951, the Shibukawa Plant was established as a production basefor vinyl chloride polymers. In 1976, the plant began manufacturing
HARDLOC structural adhesive. In 1984, the plant started expanding its
business domain, making a full-scale entry into the electronic materials
business. Currently, the Shibukawa Plant specializes in electronics-related
products, encompassing electronic circuit substrates, thermally conductive
materials, emitters, structural adhesives, temporary fixing adhesives andsemiconductor processing-related products, helping drive Denka’s growthstrategies as a key organic electronic materials production base.

Products● Electronics & Innovative Products: HITTPLATE high thermal conductivity

Address1135, Nakamura, Shibukawa, Gunma

City Officials Invited to Observe

The Shibukawa Plant hosted plant tours and experimental chemistry classes for local
elementary school students during their spring and summer vacations. A number ofparticipants experienced the excitement of chemistry by creating personalized PET bottles
and “slime” (a viscous toy). (August 4, 2015 and March 28, 2016).

Representatives from Shibukawa City’s Environment Council, an advisory body for the city’s
government, visited the Shibukawa Plant to observe its environmental countermeasures(October 6, 2015).

Plant Tours

Blood Donation

We hosted plant tours for students from local high schools and nursing schools as wellas members of neighboring community associations, with the aim of enhancing theirunderstanding of our operations. (April 22, 2015: Maebashi Commerce High School; June
26, 2015: Shibukawa Technical High School, etc.)

We supported blood donation campaigns on two occasions in spring and autumn in 2015.
A number of our employees generously took part in the campaigns, and we received a letterof gratitude from the head of Japanese Red Cross Society’s Gunma Prefectural Blood Center(May 27 and November 17, 2015).

Education on the Transport ofHazardous Substances

Softball Game Jointly Hosted by
Management and Labor Union

Our products include HARDLOC, which is made of an acrylic adhesive and thus defined as ahazardous material under Japan’s Fire Service Act. Accordingly, we implemented employee
education about rules regarding the packaging, labeling and transportation of such materials
for staff in the relevant department (September 3, 2015).

We host annual softball games in May in an effort to promote health awareness and facilitate
interaction between management and the labor union as well as employees’ families (May23, 2015).

aluminum substrates, THERMALLY CONDUCTIVE SPACER, TFE andLaB6 CATHODE electron and ion emitters, ELEGRIP dicing tape andback grinding tape, HARDLOC structural adhesive, HARDLOC OP/UV
light curing adhesive, TEMPLOC temporary fixing adhesive
Telephone: +81-279-25-2109

Employees 401 (as of March 31, 2016)

Message from the General Manager

Shojiro Watanabe

Experimental Chemistry Classes

To achieve the goals of the Denka100 management plan, we will focus on our main production
items, namely, electronic materials and other related products. In line with the plan’s three
growth strategies, we will actively engage in R&D in the automotive and other fields that havebeen positioned as growth drivers. By doing so, we will help reinforce the Group’s growth track.
We also emphasize safety assurance, environmental conservation, compliance and quality
management, all of which are vital components to the plant’s operational foundation and as
essential as production itself. With deep roots in Shibukawa City, Gunma Prefecture, we strive
to contribute to local society by, for example, helping preserve the environment, interacting withresidents and promoting the education and vocational training of young people. In these ways,
we will ensure that our corporate activities benefit society and support its sound development.

General Manager of Shibukawa Plant,
Assistant to MEO, Electronics &Innovative Products Division

CSR Policies■ General Manager’s Policies
Having celebrated the 101st anniversary of the Company’s founding, we renewed our determination to embark
on the next growth stage. To this end, we will pursue the following policies which clearly identify what must bepreserved and what must be changed.
❶ Constantly strengthen our operational foundation● Promote hazard prediction activities and initiatives to create a lively and vibrant workplace, thereby ensuring

occupational safety and health as well as facility security● Engage in ongoing initiatives to reduce environmental burdens and improve quality, with a strong commitment

to legal compliance● Develop a human resource base with diversity while proactively engaging in social contribution activities❷ Solidify Our Growth Path (the Denka100 management plan)● Tackle such issues as raising productivity and commercializing new products, thereby reinforcing our growth

path in fiscal 2016 toward the goals of the Denka100 management plan

Future Initiatives● Placing the utmost priority on safety and in line with the CSR policies, we will strengthen the plant’s operational platform,

thereby maintaining our zero-accident and disaster status.

● We will acquire revised ISO 9001 and ISO 14001 certifications as part of our ongoing initiatives to reduce environmental

burdens and improve product quality.

● To remain a plant worthy of the trust of society, we take part in local events, engage in social contribution activities andpursue a mutually beneficial coexistence with the local community.

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Denka Group CSR Report 2016

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Site Reports 2016

Site Reports 2016

Ofuna Plant
Fiscal 2015 Achievements under the CSR Policies

Overview
Operations Our product lineup is the fruit of cutting-edge technologies in ejection

molding, adhesion coating and film production. We are Denka’s prime
production unit for plastic products. We manufacture a variety of offerings,
such as TOYOKALON synthetic fiber for wigs and hairpieces now populararound the world, packaging tapes that boast unique functions, including
hand-cuttable tapes, and Calalyan Y polyethylene film featuring excellent
transverse direction (TD) mono-axial cut properties.

Products● Life Science & Environment Products: Synthetic fibers for wigs,

Address

13-1, Dai 2-chome, Kamakura, Kanagawa Telephone: +81-467-45-1110

Donating Emergency Supplies

A Summer Festival

Commemorating the centennial of our founding, we donated a storage unit containing an
extensive array of emergency supplies to the local town association (May 25, 2015).

We made the square in front of the plant’s main gate available for Fujimicho Town Association
summer festival. Some stands were set up by employees, giving us the opportunity to deepen
interaction with people from neighboring areas (July 11 and 12, 2015).

Cleanup Activities in NeighborhoodStudents from Ofuna Elementary School
Enjoy a Plant TourIn collaboration with a town association, we took part in cleanup activities in areas neighboring
the plant, contributing to the beautification of local communities (September 27, 2015).

Third graders from a local elementary school visited the plant and got to enjoy such activities
as donning wigs made of Denka synthetic fiber. We received comments of appreciation fromthe students. (November 10, 2015).

Hosting a Plant Tour for Students from
Kamakura Jogakuin Junior High School

Rice Cake Making

Seventh graders from a local junior high school students visited the plant and showed great
curiosity about its manufacturing operations (November 5, 2015).

With the plant’s labor union serving as the organizer, we hosted a rice cake making event at a
town association facility, interacting with community residents and children (February 7, 2015).

packaging materials and functional films

Employees 199 (as of March 31, 2016)

Message from the General Manager

Kazuo Takahashi

The Ofuna Plant is a manufacturing facility based in Kamakura City, which boasts an
outstanding cultural, historical and environmental legacy. Accordingly, we have made harmonious
coexistence with the abundant nature of the surrounding area and thereby contributing to better
living conditions and a sustainable society our primary environmental policy. Guided by thispolicy and backed by a firmly established environmental management system, we are striving to
reduce waste and conserve energy while strictly observing environmental laws and regulations.
Moreover, we proactively carry out hazard prediction activities and risk assessments as well as
occupational accident and disease prevention initiatives based on strict legal compliance withoccupational safety and health regulations. In these ways, we are creating a safe environment
in which everyone can work with confidence.

General Manager of Ofuna Plant

CSR Policies■ General Manager’s Policies
Having adopted the slogan “Be sincere and bold in taking on every challenge coming our way,” we are pursuing
the following policies in accordance with the Denka Principle.
❶ Occupational Safety and Health Policy
We consider occupational safety and health of paramount importance to our production activities.
❷ Environmental Policy
We maintain production activities that harmoniously coexist with local society and the environment, thereby
contributing to a sustainable society in which people can enjoy better living conditions and the rich blessings ofnature well into the future.
❸ Quality Policy
We will supply safe and high-quality products in a timely manner, thereby enhancing customer satisfaction.

Future Initiatives● Proactively conduct hazard prediction activities and risk assessments to continuously reduce worksite risks● Upgrade our management systems in conformance with the revised ISO 9001 and ISO 14001 guidelines by the end of

fiscal 2017

● Enhance mandatory job level-based training and thereby raise employee awareness of safety, environmental and quality issues● Proactively engage in social contribution activities in tandem with community residents, with the aim of remaining abusiness site deserving the trust of local society

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Denka Group CSR Report 201611

Site Reports 2016

Site Reports 2016

Isesaki Plant
Fiscal 2015 Achievements under the CSR Policies

Overview
Operations This plant manufactures sheets and films from polystyrene, vinyl chloride

and other raw materials. We supply food and electronic packaging
materials that meet stringent requirements for performance and quality
management, and are endeavoring to bolster our processing technologies
while developing valueadded offerings.

Products

Participating in the“Made in Isesaki” Exhibition

Cleanup Activities at an Adjoining ParkWe support Isesaki City’s initiatives to enhance the recognition of the region’s handicrafts
and industrial products by, for example, participating in manufacturer exhibitions. (November
14, 2015 at SMARK ISESAKI).

We regularly engage in cleanup activities in a park within the industrial complex that houses
the Isesaki Plant. Employees of the Ota facility collect garbage in streets around its premises.

Comprehensive Emergency Drills

QC Circle Gunma Section General Conference

Every year, we carry out plant-wide fire drills to enhance our responsiveness to disasters andother emergencies (November 30 and December 16, 2015).

Our plant staff’s active involvement in QC circle activities has led to the receipt of an
Excellent Award at Fiscal 2015 QC Circle Gunma Section General Conference (May 19 and
September 29, 2015).

Joint Recreational Events Hosted by
Management and the Labor Union

Calling Workers’ Attention to Safety

Management and the labor union—which have long maintained favorable and soundrelationship—jointly host a variety of events at the plant with the aim of nurturing a sense of unity
among employees (the picture shows participants in a softball game held on October 3, 2015).

To enhance worksite communication and raise employees’ safety awareness, management
and labor union representatives make rounds throughout the worksite to call attention tosafety, especially at the end and in the beginning of each year as well as during a National
Safety Week (July 1 and 2, 2015).

● Electronics & Innovative Products: Carrier tapes, trays and cover tapes

for semiconductor and electronic component transportation● Life Science & Environment Products: Food packaging sheets, stretch

films and solar cell module back sheet materials

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 248 (as of March 31, 2016)

Message from the General Manager

Koichi Taguchi
Executive Officer
General Manager of Isesaki Plant

We began operations as a Denka Group subsidiary producing resin sheets and films. Fromthe primary facility based in Isesaki City, Gunma Prefecture, we have expanded, establishinganother facility in Ota City on National Route No. 17. The present Isesaki Plant comprises thesetwo production sites.
Guided by “The Denka Value,” which identifies “Taking on the challenge of expanding thepossibilities of chemistry to create new value and contribute to sound social development” as
the Denka Mission, as well as Denka Principles, we place the utmost priority on safety while
manufacturing high-quality products. Moreover, we work to create and deliver environmentfriendly products. To remain a plant deserving the trust of society, we will continue striving
to fulfill our responsibilities as a corporate citizen while growing in step with surrounding
communities.

CSR Policies
Make a strong start to the next 100 years, with all plant staff working as one!
❶ Occupational Safety and Health● Maintain a strong awareness of our basic policy of placing the utmost priority on safety; engage in concerted

efforts to promote safety assurance activities; and ensure that a safety-oriented culture is deeply embedded in
our production sites as well as R&D facilities● Create an inclusive and comfortable workplace environment in which every worker is free to share theiropinions and concerns❷ Quality● Enhance the level of our product quality even further as we strive to ensure responsiveness to the latest

technological trends● Endeavor to improve quality through QC circle activities (g-r Activities) aimed at enhancing on-site capabilities❸ The Environment● Promote R&D aimed at reducing environmental burdens● Advance production technologies to facilitate energy, resource and labor savings

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Denka Group CSR Report 2016

Future Initiatives
In addition to ongoing safety activities undertaken by each employee, our initiatives include the introduction of automatedoperations aimed at reducing the physical burden on workers. As for quality management, we will strive to enhance the levelof quality to ensure that our output is capable of satisfying ever-diversifying customer requirements.
Building on the sound relationship between management and the labor union, we will endeavor to create a comfortableworkplace while contributing to local communities.
Steadily pushing forward with these and other initiatives, we will continue to give back to society.

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Site Reports 2016

Site Reports 2016

Denka Innovation Center
Fiscal 2015 Achievements under the CSR Policies

Overview
Operations The Denka Innovation Center began operating at its current site after

the Company relocated its Meguro Research Center from Meguro-ku,
Tokyo, renaming it the Central Research Institute, in 1962. The facility
has developed numerous core technologies in the areas of inorganic andorganic chemicals, ceramics, petrochemicals, biotechnologies and plastics
that laid the groundwork for Denka’s business operations. The center
will continue to serve as a focal point for the Denka Group’s R&D efforts,
focusing on developing next-generation products that may become major
profit sources in the medium to long term while further reinforcing its coretechnologies.

Address

5-1, Asahi-cho 3-chome, Machida, Tokyo

Summer Holiday Chemical
Experiment Show for Children

Experimental Chemistry Class

We took part in the Summer Holiday Chemical Experiment Show for Children, sponsoredby the “Dream Chemistry 21” committee, for the fourth consecutive year. This was anopportunity for the children who will lead the next generation as well as their parents toexperience the excitement and wonder of chemistry while learning about how the chemicalindustry has contributed to the development of society (August 1 and 2, 2015 at Science
Museum in Kitanomaru Park, Tokyo).

As in fiscal 2014, we hosted an experimental chemistry class for local elementary school
students as well as employees’ children. By providing them with the experience of learning
the wonder of chemical reactions involving cement and creating a personalized key holder,we were able to improve their understanding of Denka’s eco-friendly chemical products being
used in familiar applications (July 11, 2015).

A Business Facility Tour

Cleanup Activities

As we did in the previous fiscal year, we hosted a business facility tour for elementary school
students, providing local third graders with hands-on experience programs, including on
the use of electron microscope and experiments dissolving hyaluronic acid. Our employees
engaged in lively interaction with students (October 22, 2015; students from Machida DaiYon Elementary School).

As part of our social contribution initiatives, we engage in monthly cleanup activities in areas
around the Innovation Center’s premises. These activities provide us with opportunities
to interact with locals as they pass by. We feel that our CSR activities are gaining greater
recognition among community members.

Innovation FESTA

Comprehensive Emergency Drills

We hosted “Innovation FESTA,” an annual event in which employees’ families, especiallychildren, are given the opportunity to take a close look at our workplace. The event has
succeeded in facilitating interaction between approximately 160 attendees, who played
games together and enjoyed other fun activities (August 27, 2015).

We held a joint emergency drill aimed at practicing fire extinction as well as rescue andevacuation procedures in tandem with the local government’s fire department. In addition torehearsing such actions, we confirmed our procedures to prevent hazardous chemicals fromleaking into the environment (November 30, 2015).

Telephone: +81-42-721-3611

Employees 172 (as of March 31, 2016)

Message from the General Manager

Norihiro Shimizu
Managing Executive Officer
Research and Development
Denka Innovation Center

On April 3, 2014, we completed the Denka Innovation Center main building, a facility aimed atboosting our capability as the Group’s key R&D base. Since then, we have been engaged infull-scale R&D, with three new subordinate facilities bolstering our R&D platform. Specifically,
the Life Innovation Research Institute was newly founded to reinforce our operations in the life
science field—a potential growth driver—while the Advanced Technologies Research Instituteand the Infrastructure & Solutions Development Research Institute were created by reorganizing
the Group’s existing R&D sections.
In addition to focusing R&D strength Groupwide, the Center has been positioned as a
hub for realizing open innovation and thus promotes joint research projects among industries,
academia and public institutions with the aim of mutually facilitating breakthroughs.
As we aspire to blaze a path to the future, we will take on challenges to create epochmaking products and solutions while spearheading Groupwide efforts to realize innovation.

CSR Policies● Facilitate a corporate culture that emphasizes compliance with social ethics with an eye to ensuring sustainablecorporate activities● Implement such priority initiatives as reducing environmental burdens (including improving the working

environment), abiding by the tightened regulations on chemical substances and preventing any shortfall fromoccurring in our compliance with IP-related regulations

Future Initiatives

Inner courtyard

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Denka Group CSR Report 2016

An open meeting space

We are taking on the challenge of new business through open innovation in the fields of energy, the environment,
infrastructure and healthcare, proactively promoting collaborative research and technological combination. With partnercompanies collaborating with such initiatives, we will speed up our R&D projects and be better positioned to satisfy theneeds of future generations, thereby creating new value that contributes to the sound development of society.

Denka Group CSR Report 201615

Site Reports 2016

Site Reports 2016

Denka Singapore Merbau Plant

Denka Singapore Seraya Plant
Overview

Overview

Operations The Seraya Plant commenced operations to produce general-purpose polystyrene inOperations The Merbau Plant, where we manufacture DENKA BLACK, was Denka’s

1997. In 2006, the plant expanded its facilities for manufacturing TX Polymer (methyl
methacrylate styrene (MS)) and CLEAREN (styrene-butadiene block copolymer (SBC)).
In April 2012, the plant launched a facility to produce DENKA IP (imidized polymers).
Today, the combined annual production capacity of the four facilities is 325,000 metrictons. Also housing the Technical Service Center on its premises, the Seraya Plant is a
key production base spearheading the Denka Group’s styrene-based resin business.

first production facility in Singapore. We established this plant in 1980 toparticipate in the Singapore Petrochemicals Complex project on Jurong
Island. We began operating our “50% press” facility in 1984, augmenting
the lines in 1997. We set up a granulation facility in 2002.

Address

Office: 4 Shenton Way #29-02 SGX Centre 2, Singapore 068807
Telephone: +65-6225-6120
Plant: 300 Ayer Merbau Road, Singapore 628282
Telephone: +65-6867-8496

Address

Employees 50 (as of March 31, 2016) (Including 33 Japanese national and 17 subcontract

Employees 70 (as of March 31, 2016)

workers)

Yuji Koga
General Manager of Merbau Plant

Office: 4 Shenton Way #29-02 SGX Centre 2, Singapore 068807
Telephone: +65-6225-6120
Plant: 40 Seraya Avenue, Singapore 627873
Telephone: +65-6867-6089

Message from the General Manager

Message from the General Manager

On June 30, 2015, there was an accident at the plant. The incident occurred about a week shortof our being able to mark five years with zero-accidents and served as a strong reminder of thefact that maintaining safe operations requires unceasing effort. Looking ahead, we will step up
safety activities aimed at ensuring all plant workers are able to avoid hazards while fostering a
sense of mutual support. In particular, we will focus on identifying potential worksite dangers andimplementing countermeasures.

In its efforts to contribute to society through production activities, Denka creates products of value
by consuming limited natural resources and energy. We recognize that giving due consideration
to the impact of such activities on the environment and communities surrounding us, as well as
the well-being of our employees, is essential. We will therefore focus on maintaining a harmonious
coexistence with the environment, society and people while engaging in production activities thatcan return benefits to local communities and this country.

CSR Policies● Aim for a sustained zero-accident record● Clarify the rationale for security standards while implementing employee education● Undertake safety activities to ensure that all plant workers are able to avoid hazards while
fostering a sense of mutual support● Promote beautification initiatives (apply coatings where needed and step up 5S activities)

CSR Policies● Aim to become a production facility that has minimal impact on the environment while
putting the utmost priority on safety● Ensure a worksite environment in which all employees and frontline operators can work in
confidence and visitors can rest assured● Aim to be regarded an excellent service provider with all plant staff involved in social
contribution activities

Fiscal 2015 Achievements under the CSR Policies
We held joint emergency drills with PCS* (four occasions peryear) while reinforcing safety and security educational programs.
Also, the general manager made rounds of the entire worksite
to call attention to safety before and during operations.
*Petrochemical Corporation of Singapore

Future Initiatives
We conducted interviews with our employees and our
subcontractors about potential worksite dangers. Taking
input from all interviewees into account, we will execute
facility improvement while reviewing operational practices.
Moreover, to create an even safer and cleaner plant, we
will promote the beautification of our worksite by applying
coatings and stepping up 5S activities.

Michio Kawamura
General Manager of Seraya Plant

Fiscal 2015 Achievements under the CSR Policies
Undergoing a Fire Inspection

Socializing Together

We held a social event at nearby Jurong
Country Club, where attendees enjoyedmingling with others from outside theirdepartments.

Future Initiatives
Having celebrated the 101st year of its founding, Denka
has made a new start toward its next 100 years. In thismilestone year, we launched the “Denka100 Group Activity,”
an improvement program aimed at collecting feedback fromfrontline workers and acting on their suggestions. By doing
so, we will preserve what should be preserved, such as our
corporate culture, while making necessary changes andimprovements. Embracing a relentless commitment to achieving“Kaizen,” a term that is fast becoming a buzzword among
manufacturers worldwide, we will enhance our capabilities,
thereby contributing to the sound development of society.

5S Activities

The Singapore Civil Defense Force
conducted an inspection of our fire drill
procedures. Having obtained valuable
input from this inspection, we renewed
our commitment to relentlessly pursuing
occupational safety and facility security.
Merbau Plant staff

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Denka Group CSR Report 2016

Every Wednesday, we implement 5S
activities throughout the plant worksite intandem with USS, a subcontractor in chargeof packaging. We commend the “Best 5S
Player” at the end of each round, motivating
participants to maintain and improve aworksite environment of the plant.

Seraya plant staff

Denka Group CSR Report 201617

Site Reports 2016

Site Reports 2016

Denka Advantech Tuas Plant

Denka Advantech South Plant
Overview

Overview
Operations The Tuas Plant commenced operations in 1991 in Singapore to produce

Operations The South Plant initiated operations in June 2013 to manufacture

fused silica filler, a material mainly used as an encapsulant for semiconductor
packaging. Currently, the Tuas Plant’s focus is on spherical fused silica filler
to accommodate advances in semiconductor packaging as well as thetrend toward more environment-friendly products. Stepping up its quality
management and production structures, the plant serves mainly Chinese andSoutheast Asian markets and works in cooperation with the Omuta Plant.

Address

Hidetoshi Naito
General Manager of Tuas Plant

Office: 4 Shenton Way #29-02 SGX Centre 2, Singapore 068807
Telephone: +65-6321-9530
Plant: 11A Tuas Avenue 20, Singapore 638823
Telephone: +65-6861-0004

Address

Office: 4 Shenton Way #29-02 SGX Centre 2 Singapore 068807
Telephone: +65-6224-1305
Plant: 6 Tuas South Drive, Singapore 637046
Telephone: +65-6412-9200

Employees 59 (as of March 31, 2016)

Employees 41 (as of March 31, 2016)

Message from the General Manager

Message from the General Manager

In fiscal 2015, the Tuas Plant celebrated the 25th anniversary of its founding as a fused silica
filler production facility. Amid the severe market environment for semiconductors, we are striving
to maintain safe operations, improve our production technologies and enhance product quality,with the aim of achieving further growth as the Group’s key fused silica production base. We havepositioned securing facility security and occupational safety as basic to operations. Accordingly,
we will continue to implement safety assurance activities aimed at creating a workplaceenvironment in which every employee can work in confidence.

Three years have passed since we initiated operations in June 2013 to deliver fiber for hairpieces
to the African market. During fiscal 2015, we maintained the zero accident and disaster status
we have enjoyed since the production kickoff. Moreover, we have implemented various initiatives,
including improving production efficiency to reduce costs. For fiscal 2016, we are striving tosecure a more robust safety assurance structure while pursuing even higher product quality andgreater cost efficiency.

CSR Policies● Ensure plant security and employee safety● Promote energy and resource saving to reduce environmental burdens● Improve customer satisfaction by controlling risks pertaining to product quality● Develop a supply system that meets market demand and technological trends● Reduce costs by improving production processes and technologies

Fiscal 2015 Achievements under the CSR Policies
SafetyIn addition to workplace patrols, emergency response drills and other regular safety
activities, since 2015 we have been periodically providing mandatory safety training to raise
employee awareness, with safety specialists serving as lecturers.

Environment

TOYOKALON synthetic fiber for wigs and hairpieces. Introduced in 1952,
TOYOKALON is the world’s first PVC fiber produced on an industrial scale andis shipped mainly to the U.S. and African hairpiece fiber markets, the latter ofwhich is expected to grow considerably. In tandem with the Ofuna Plant, theSouth Plant will bolster the Group’s supply structure as the second flagship
TOYOKALON production site, helping accommodate burgeoning demand.

Future Initiatives
In March 2016, the plant achieved its second consecutive yearof zero accident status. To prolong this record, we will raise
employees’ safety awareness even further by, for example,
implementing training sessions as well as soliciting suggestions
from employees and obtaining their input on potential
danger spots. As we tackle the increasingly harsh businessenvironment, we are facing a growing need for curbing costs
through the enhancement of productivity. We will therefore takeon this challenge, with all employees working as one.

Communication

Takafumi Kono
General Manager of South Plant

CSR Policies● Maintain zero-accident record and step up safety activities● Promote resource recycling and energy saving to reduce environmental burdens● Reinforce production structure to enhance product quality and cost efficiency● Enhance in-house and external communications

Fiscal 2015 Achievements under the CSR Policies
SafetyStrengthening Our Production Structure

We conduct monthly safety patrols centeredon confirming the observance of 5Ss while
holding safety countermeasure meetings aswell as evacuation and fire drills.

We have endeavored to improve quality bystepping up process inspections, reviewing
our operational procedures and improving
operator training. We also reduced costs byimproving the yield ratio.

Communication

Environment

Future Initiatives
We will continuously focus on such basic activities assafety assurance and environmental conservation, thereby
maintaining our zero-accident and disaster status.
In addition, the workforce of the South Plant has
welcomed a growing number of employees of Chinese origin
who sometimes lack English proficiency. Accordingly, we aretaking such steps as preparing operational manuals in which
English and Chinese text is printed side by side and providing
training programs with lectures by experienced staff fluent
in both languages. Looking ahead, we will step up these
initiatives to enhance the level of our safety assurance activities
as well as our technological strengths in manufacturing.

We are working to reduce indices related toconsumption intensity for energy and otherutilities, including by encouraging people
to turn off unnecessary lighting and air
conditioners.
We have striven to improve productivity to
reduce energy and gas consumption intensity
while promoting a switchover to energysaving lighting. Moreover, we promoted therecycling of polyethylene covers, flexible
containers and metal materials in addition
to reducing water consumption through theintroduction of a tap water management
system.

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Denka Group CSR Report 2016

We hold monthly safety discussions to
consider various issues while hosting
annual dinner events that not only deepenties among the plant staff but provide theopportunity to commend our hard-working
employees.
Tuas Plant staff

We hold various regular meetings while
hosting dinner events to deepen ties among
the plant staff.

Training operators

Denka Group CSR Report 201619

Site Reports 2016

Site Reports 2016

Denka Advanced Materials Vietnam

Denka Infrastructure Malaysia

Overview

Overview

Operations Denka Advanced Materials Vietnam was established as a production

Operations Established in 2002, Denka Infrastructure Malaysia became part of theand sales base to serve the burgeoning Asian and Middle Easternmarkets, supplying VINI-TAPE used for binding wire harnesses installedin automobiles as well as Denka Thermo Film for use as an embossed
carrier tape for electronic and semiconductor components. Leveraging
our advantages in terms of logistics and production costs, we will strive todeliver products with greater competitiveness.

Address

Denka Group in 2015. Our main businesses is specialty construction
chemicals. It is our mission and vision to become the world leader in theconstruction chemicals market.

Plot D-5, Thang Long Industrial Park II Yen My District, Hung Yen Province,
Vietnam
Tel.84-321-397-4805 Fax.84-321-397-4806

Products

Waterproofing, concrete repair, cement grouting, special cement Additive

Address

No 18, Jalan Utas 15/7, Seksyen 15, Shah Alam, 47650, Selangor
MALAYSIA
Telephone: +603-5510-8810 Fax: +603-5510-0708

Employees 116 (as of April 30, 2016) (Including two Japanese nationals and 36

subcontract workers)

Employees 79 (as of March 31, 2016)

Yoshio Sasaki
General Director

Message from the General Director

Message from Managing Director

Denka Advanced Materials Vietnam is a relatively new company established in December 2013 to
manufacture and market VINI-TAPE and cover tapes. Supporting economic development in theregion in which we are located, we are creating employment opportunities and locally procuring
raw materials. Looking ahead, we will endeavor to increase production volume while engaging inongoing social contribution activities, such as donating to schools in neighboring communities.

Denka Infrastructure Malaysia has been part of the Denka Group since June 2015 and it is ourpolicy to provide healthy and safe working conditions and to continuously use safe operating
practices that comply with National and International Regulations and relevant Standards andGuidelines.
We continuously improve our Safety, Health and Environment Manual as well as provide
supplementary awareness training to ensure our workplace is safe for both the staff and the environment.

CSR Policies
I have been communicating my conviction that “employees are a corporation’s most valuable treasures”
to all of my staff. Accordingly, not only do we strive to maintain safe operations, we are focusing on
enhancing employee safety training, improving our worksite environment and creating a vibrant corporate
culture in which everyone is free to express their opinions and is allowed to pursue their potential.
As for manufacturing, we have an ISO-conformant management system in place to help
us constantly improve quality and reduce environmental burdens.
Moreover, we will pursue ongoing social contribution activities to create a company
appreciated by the residents of surrounding communities.

Fiscal 2015 Achievements under the CSR Policies
Enhancing Education Covering
Safety and First Aid Procedures

We have striven to create a safe andcomfortable workplace.

We are fostering a sense of unity among
employees through various recreational
activities.

Participating in a Marathon Relay Race

Community Contributions

To enhance general public recognition of
Denka and foster a sense of unity among
employees, we created a marathon uniform
using waste from the manufacture of
VINI-TAPE.

20A Company Trip Staying
Overnight on an Island

Denka Group CSR Report 2016

Future Initiatives
Reflecting the strong influence of Confucianism on Vietnamese
society, people cherish family relationships much more thanJapanese people usually do. With this in mind, we decided
to hold “Family Day” in conjunction with the celebration of
the second anniversary of our founding (December 20). As
we believe that earning the trust of employees also requires
earning the trust of their families, we will endeavor to facilitate
their understanding of our operations while implementing the
aforementioned CSR activities.

CSR Policies● Provide for safe practices in operation and provide a safe working environment

Paul Low
Managing Director● Establish safeguards against all identified risks● Continuously improve the safety management skills of personnel, ensuring emergency

preparedness covering health and safety and environmental protection● Strive for the unity of all employees

Fiscal 2015 Achievements and Future Initiatives
SafetyCommunication

Our primary goal is to avoid
potential occupational
accidents involving
workplace injuries, especiallyduring forklift operations,manufacturing processes andchemical handling. In addition,
safety training sessions areheld regularly to ensure
readiness.

Unity among employees is important and
we encourage everyone to participate in
events organised by the Sports Club. In
2015, company events included a trip to
Ho Chi Minh and a bowling tournament. We
are often joined in such activities by staff
from Indonesia, Singapore and Hong Kong.
We expect that in the future our
employees will enjoy even more sports andother events.

Environment

As a member of an industrial complex, wehave contributed to neighboring villages by,for example, donating PCs.
Staff at Denka Advanced Materials Vietnam

We continuously look forways to control emissions. In
2016-2017, we plan to installa new Dust Control Systemthat will enable us to control
dust emitted by cement silos
and production areas. We haveconstructed a new chemical
waste control area to ensurechemical waste is properly
treated.

Staff at Denka Infrastructure Malaysia

Denka Group CSR Report 201621

Site Reports 2016

Site Reports 2016

Denka Advanced Materials (Suzhou)

Denka Chemicals Development Suzhou
Overview

Overview

Operations To promptly respond to Chinese consumers’ requests for analysis,

Operations Established in January 2006 as the Group’s first production and sales

performance evaluation and product improvements, Denka Chemicals
Development Suzhou was established in December 2010, and kicked
off operations in August 2011. Currently, the company conducts R&D
pertaining to synthetic rubbers, HARDLOC and special cement additives.
Since fiscal 2013, it has also been conducting research on functional foodpackaging sheets and TEMPLOC temporary adhesive.

subsidiary in China, the company engages in the manufacture of whole
sheet used to produce carrier tapes and other electronic packaging
materials in addition to the slitting of these materials and the supply of foodpackaging sheets.

Products

Carrier tape for electronic packaging and food packaging sheets

Address

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

Address

Employees 86 (as of March 31, 2016) (Including four Japanese nationals)

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

Employees 20 (as of March 31, 2016)

Message from the General Manager

Message from the General Manager

Renewing my previous “general manager’s policy,” I have positioned “Act according to rules,
ethics and your moral compass, strive to understand and respect one another, continuously work
to better yourself, and pursue the eradication of accidents and disasters and the enhancement ofcustomer satisfaction” as the underlying policy guiding all of our in-house activities.

Denka Chemicals Development Suzhou, or DCD, currently engages in product development
related to Denka’s chloroprene rubber, functional adhesives, special cement additives andfunctional sheets, striving to optimize these offerings to meet the requirements of local customers.
With a constant eye to the possibility of commercialization, we actively work to ensure swift
response to customer demands, develop new markets and promote local production. Moreover,
we are striving to create a new business that will help improve the natural environment of China.

CSR Policies● Achieve zero-accident and disaster status through ongoing safety activities● Ensure legal compliance while promoting environmental conservation initiatives● Enhance training; continue to upgrade workplaces

Tatsuya Koyama

Kazuhiro Oshima

General Manager

General Manager

Fiscal 2015 Achievements under the CSR Policies
Fire Drills at Branch

Along with fire drills, ourmanufacturing section
managers, frontline operators
and administrative department
staff conduct 5S patrols.

Future Initiatives
Approaching the 11th anniversary of its inauguration,
Denka Advanced Materials (Suzhou), or DAS, will step
up collaboration with its “mother plant,” the Isesaki Plant.
Doing so will enhance our capabilities across the board inareas ranging from safety assurance and quality control to
productivity and cost effectiveness.
In particular, we will pursue various safety assurance
activities toward our immediate goal of achieving 1,000 daysof zero-accident and disaster status, with all employees
working as one.

CSR Policies● Achieve zero-accident status● Ensure compliance with China’s Production Safety Standards and Law of the People’s
Republic of China on the Prevention and Control of Occupational Diseases● Create a lively and vibrant workplace while improving our working environment● Make Chinese staff and examiners a key workforce by enhancing their competencies● Develop a robust safety assurance structure while enhancing the content of employee
education programs on safety● Create new R&D themes aimed at improving the natural environment of China

Fiscal 2015 Achievements under the CSR Policies
A Study Session Focused on China’s Intellectual Property Rights Regulations(Human Resource Development)

To deepen employee’s understanding of IP, which is vital to our research activities, we held
three study sessions focused on Chinese patent law, inviting an external lecturer (Mr. Yu Xia,
the president of KingTen Shanghai Intellectual Property Agency Co., Ltd.) to participate.

A Company Trip

Future Initiatives● Thoroughly implement hazard prediction activities to counter accidents

attributable to unsafe behaviors● Acquire certification under China’s Production Safety Standards while

implementing occupational safety and health initiatives employing a
PDCA cycle● Enhance our systems for employee benefits as part of initiatives tocreate an inclusive workplace in which they feel comfortable● Provide education programs aimed at enhancing employees’ ability to
prepare and deliver presentations and presentation materials as wellas training aimed at imparting IP-related and other basic knowledge● Ensure safe operations through the upgrade of facilities and the provisionof employee education with external specialists serving as lecturers● Explore potential needs for solutions that help improve the naturalenvironment and devise R&D themes to address such needs

Company Trips Involving Employees’ Families (Communication)

Expanding the content ofeducation programs for new
recruits, we began providing afollow-up session a month after
they undergo an introductory
program at the time of hiring.
DAS’s branch production site for manufacturing food packaging

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Denka Group CSR Report 2016

We organized two company trips
in 2015. Alongside employees’
family members, we enjoyedhiking in the Linyanshan
mountain in May and visited the
Yangcheng lake to taste Chinese
mitten crabs in November.

Staff at DCD

Denka Group CSR Report 201623

Site Reports 2016

Site Reports 2016

Denka Inorganic Materials (Tianjin)

Denka Electronics Materials DalianOverview

Overview
Operations Denka Electronics Materials Dalian initiated its manufacturing operations in

Operations In September 2013, Denka Inorganic Materials (Tianjin) was established as the2015 to produce ALSINK, a highly functional thermal conductive substratethat plays a key role in enhancing the reliability of power modules installed inhigh-speed rolling stock and other vehicles. Demand for high-speed rollingstock is expected to grow in markets around the world on the back of growing
calls for safer and more environment-friendly modes of transportation.
To better accommodate such demand, we will strive to develop a supply
structure capable of delivering a steady stream of high-quality products.

Group’s first special cement additive production base in China in light of growing
demand for infrastructure development and repair in the Chinese market. In
collaboration with Denka Infrastructure Technologies Shanghai Co., Ltd., theregional headquarters for our special cement additive business in China, andthe R&D base Denka Chemicals Development Suzhou, we are striving to createa production structure capable of swiftly and accurately meeting market needs
with solutions based on locally available materials and construction methods.

Address

No. 3 Saida Mechanical Park, Xiqing Economic Development Area, Tianjin,
China 300385
Telephone: +86-22-8792-0488

Address

No. 41-10 Wanda Road Dalian Economic & Technological Development
Zone, Dalian, Liaoning Province, China 116600
Telephone: +86-411-6263-4377

Employees 30 (as of March 31, 2016) (Including two Japanese nationals)

Employees 9 (as of March 31, 2016) (Including two Japanese nationals)

Message from the General Manager

Message from the General Manager

Giving due consideration to the environment, we strive to create a workplace that places theutmost priority on safety. We will thereby remain a trustworthy manufacturing company thatmaintains a sincere business approach with unyielding diligence.

In September 2014, Denka Electronics Materials Dalian was established in Dalian, China, toserve as a producer of ALSINK, a thermal conductive substrate used in power modules installedin such vehicles as railcars. With the support from Denka’s Omuta Plant, our “mother plant,” weinitiated a full-scale production in August 2015. Although we are a quite new company, we will
strive to create a safe and comfortable workplace, with all employees working as one.

CSR Policies
Having positioned the maintenance of safe operations as basic to our corporate activities,
we will promote the beautification of our worksite while improving our working environment,with the aim of creating an employee-friendly corporation.

CSR Policies● Create a safe and comfortable workplace that reflects our policy of placing the utmost

priority on safety

Yoshinori Nakagawa

Makoto Fukuda

General Manager

General Manager

Fiscal 2015 Achievements under the CSR Policies

Future Initiatives
We will develop a structure both attuned to local circumstances
and in compliance with China’s laws and regulations on
manufacturing safety. By doing so, we will create an evensafer workplace while developing the green space aroundour production facilities. This will enhance the atmosphere of
our premises and facilities, making them more comfortable
to workers.

Safety Assurance Activities

As we use alkaline substances
as raw materials, we provide
hands-on training on the dangers
associated with the mishandlingof these substances.

● Promote environmental conservation in compliance with relevant laws and regulations● Nurture human resources through the provision of sufficient education and training

Fiscal 2015 Achievements under the CSR Policies
SafetyTo prevent unsafe behaviors or operational mistakes from developing into disasters, we recite
three safety principles at each morning meeting and participate in physical exercises. Moreover,managers carry out safety patrols. The company also conducts risk assessments and provides
training for employees to ensure that a safety-oriented culture is embedded in our workplace.

Communication

Every morning, after the morning
meeting and before beginningwork, everyone who can joins ina morning Chinese-style exercise
session.

Denka Group CSR Report 2016

We are a new company,
with younger employees
in their late 20s making up
majority of our personnel.
We are endeavoring to
make sure that Denka’s
corporate culture centering
on an uncompromisingcommitment to manufacturing takes root in Dalian, China, andto this end, are striving to motivate our Chinese staff to freely
devise better ways of working. By doing so, we will create asafe workplace in which everyone finds their job rewarding.

We apply a “bottom up approach,” drawing
on employee suggestions to improve ourworkplace environment and hazard prediction
systems. To encourage participation, employees
who submit suggestions are commended at
general meetings. In addition, we host suchsocial events as New Year’s celebrations andcherry-blossom viewing parties with the aim ofcreating a workplace in which all workers feel
free to share their opinions.

Environmental Conservation andOccupational Health Activities

24

Future Initiatives

Environment

Morning meeting

We are striving to reduce waste emissions by improving the yield ratio and staff from the
Omuta Plant meet with us regularly to track our progress. Moreover, all employees are briefed
on the status of our efforts and points where improvements must be made. In this way, we are
ensuring that the goals and future direction of our initiatives are known by the entire workforce.

Staff at Denka Electronics Materials Dalian

Denka Group CSR Report 201625

Site Reports 2016

Site Reports 2016

Denka Performance Elastomer

Icon Genetics

Overview

Overview

Operations Having taken over operations related to chloroprene rubber (Neoprene )Operations Icon Genetics is an R&D company specializing in vaccines and diagnostic

TMfrom DuPont in November 2015, Denka Performance Elastomer was
established as a joint venture owned by Denka and MITSUI & CO., LTD.
Bringing together the strengths of NeopreneTM—a long seller created by
DuPont—and proprietary Denka technology, Denka Performance Elastomer
will provide the U.S. market with superior-quality products.

Address

reagents. Boasting a unique proprietary technology for efficiently
manufacturing proteins using the tobacco plant (Nicotiana tabacum),
Icon operates a Good Manufacturing Practice (GMP) conformant facility
and is capable of producing vaccines for clinical trials and prototypes ofgenetically modified proteins for use in reagents. Over the years, its R&D
efforts have yielded an array of product candidates in the fields of vaccinesand diagnostic reagents.

560 Highway 44, LaPlace, LA70068, USA
Tel.+1-985-233-3080 Fax.+1-985-359-4781
Address

Employees 250 (as of March 31, 2016)

Weinbergweg 22, D-06120, Halle (Salle), Germany
Tel.+49-345-5559889-664 or 885

Employees 17 (as of March 31, 2016) (Including two Japanese nationals)

Masanobu Kosaka
Vice President Technology

Message from the Vice President

Message from the CEO

In 2015, Denka Performance Elastomer was established following the acquisition of operations
related to chloroprene rubber (commercial name: NeopreneTM) from DuPont, with Denka andMITSUI& CO., LTD. serving as joint investors. Working hand in hand with our American staff, wewill expand Denka’s key chloroprene business while contributing to the development of the local
community.

Icon Genetics became a Denka Group company in August 2015. As an R&D company
specializing in biotechnologies, Icon has developed transient production techniques that are
best suited for the development and manufacture of vaccines and diagnostic reagents. Our
technologies enable us to efficiently produce genetically modified proteins within a month’s
notice, helping us swiftly deliver ingredients for cutting-edge healthcare solutions. Leveraging
our technological strengths, we will develop new products to help maintain and enhance thewell-being of the general public.

CSR Policies
Having positioned workplace safety, facility security and environment conservation as basic
to our business operations, we are implementing various CSR initiatives, working closelywith local residents to earn their trust and facilitate their understanding. Looking ahead, we
will invite them to engage in periodic dialogue, thereby exchanging opinions and building
strong relationships of trust.

CSR Policies

Kazuyuki Hiruta
CEO● Create an innovative and sustainable business model based on shared community values● Enhance employee education and training to nurture human resources● Continuously improve our workplace environment; focus on maintaining compliance withlaws and regulations, especially applying to biotechnology companies

Fiscal 2015 Achievements under the CSR Policies
Collecting Waste from Nearby Households
In April 2016, we took part in anannual joint initiative in which local
businesses collect hazardous wastefrom neighboring households,
making a good start to our missionof community engagement as a
Denka Group company.

Near Neighbors Meeting

Every two months, we invite local
residents to hear a report on thestatus of plant operations andexchange opinions with us.

Receiving a Newcomer’s Award

We received a Newcomer’s Award from the United Way charity organization in recognition of
the US$10,000 in donations we made with the aim of supporting those affected by a tornado in
February 2016.

26

Denka Group CSR Report 2016

Future Initiatives
In the United States, we will strengthen
our foundation in the chloroprenerubber business, one of Denka’s key
products. To that end, we will develop
a robust supply system capable ofdelivering a stable stream of high-quality
products, thereby enhancing customer
satisfaction. The acquisition of DuPont’s
operations was undertaken in line with
the Denka100 management plan’s mostimportant growth strategy, which aims
to “create the most optimal production
system.” We will therefore endeavor toachieve our management targets as
early as possible.

Fiscal 2015 Achievements under the CSR Policies
Safety Assurance Activities (Education, Training and Compliance)
We implemented periodic employee
education in order to maintain compliancewith Biosafety Level Standard 1 as stipulatedby German laws as well as facility-related
safety regulations. To ensure compliancewith Germany’s legal regulations as well asinternational requirements, we stepped up
the development of standard operational
procedures related to GMP while enhancing
our quality assurance systems.

Future Initiatives
As a bio-oriented R&D company, we recognize that complying
with biosafety laws and regulations is of critical importance.
Accordingly, we will take on the timely development ofvaccines and diagnostic reagents that will, in turn, help
maintain and enhance the well-being of people. In theseways, we will contribute to local communities, and further,society as a whole.

Environmental Conservation
We maintain stringent compliance with domestic rules with regard to the disposal ofchemicals and potentially hazardous waste. The local municipal authority performs periodic
monitoring of our compliance status. In its 16 years of operations, Icon has never been cited
for a violation, ensuring the ongoing trust of municipal officials as well as other members ofcommunities in the vicinity.

Interacting with External Companies and Local Communities(Sharing Value with Local Society)We participate in a network of biochemicalcompanies formed under the auspices ofa local state government that allows us tomaintain ties with people in other businessfields as well as those from academia. By
sharing information on our technologies
with them, we are striving to facilitate theunderstanding of our operations in local
communities.

Denka Group CSR Report 201627

Site Reports 2016

Site Reports 2016

Denka Polymer

Denka Seiken
Overview

Overview
Operations

Tsuyoshi Sakamoto
President

Operations Denka Seiken Co., Ltd. supplies vaccines and diagnostic reagents to fulfill

Established in 1966, Denka Polymer Co., Ltd. manufactures an array of lightweight plastic
food containers. Drawing on the Denka Group’s comprehensive strengths, Denka Polymer
is striving to maximize the performance of its multilayered and composite sheets while
enhancing their wrapping functions, design and coloring to improve product value andopen up a range of possibilities for packaging materials.

Products

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

Address

Head Office: 5-25, Kiba 1-chome, Koto-ku, Tokyo
Telephone: +81-3-5632-9530
Plants: Three in Chiba Prefecture (Sakura, Goi, Katori)

Employees

504 (as of March 31, 2016)its mission of protecting people’s lives and well-being. Since its founding,Denka Seiken has ceaselessly striven to eliminate infectious and lifestylerelated diseases with the keyword “prevention.”

Address

Head Office: Nihonbashi Mitsui Tower, 1-1, Nihonbashi-Muromachi
2-chome, Chuo-ku, Tokyo
Telephone: +81-3-6214-3231
Plants: Niigata Plant, Kagamida Plant (Gosen, Niigata)

Employees 694 (as of March 31, 2016)

Message from the President

Denka Polymer focuses on maintaining the safety of, and thus consumers’ trust in, the foodcontainers and packaging it makes while placing strong emphasis on enhancing products’
usability, their capability to preserve the taste of whatever is placed in them and improving theirfunctionality as tableware. As part of initiatives to expand offerings in our mainstay OPS productlineup, in 2015 we developed “U Guard,” a highly functional material that encapsulates the resultsof our industry-leading cutting-edge R&D activities backed by Denka’s global research network.
Going forward, we will continue to endeavor to create new value.

As we manufacture vaccines and diagnostic reagents aimed at protecting people’s well-being,
we have positioned ensuring a stable supply of easy-to-use and high-quality products as ourprimary social mission. Always conscious of our responsibilities as a pharmaceutical maker, we
will develop and manufacture products that are and will be needed by people around the world.
In these ways, we will combat the threat of various infectious and other diseases.

CSR Policies
Because Denka Polymer makes products that people use every day, its corporate policy
is focused on safety and trust. In addition to consumers, this applies to its stance toward
employees and shareholders. With this in mind, we are working to ensure legal complianceand energy saving while nurturing human resources.

Introducing the “U Guard” Series with Greater Oil ResistanceFuture Initiatives

Tetsuro Maeda
President

To help pass the rich blessings of the natural environment
on to the next generation, Denka Polymer will ensure that
all employees share its corporate philosophy of maintaining
safety and trust. At the same time, we will promote
environmental conservation and energy-saving activities,
thereby fulfilling our important mission of helping realize asustainable society through business operations.

Participating in Sakura Monozukuri Festa 2016

On May 14 and 15, 2016 we participated in a local industrial exhibition at Sakura City
Gymnasium aimed at improving the vitality of the local community. With representatives fromlocal manufacturing, agricultural, commerce and service industries gathering at the event,
we gained valuable opportunities to introduce our products and operations to the people of
Sakura City.

CSR Policies
As befits an enterprise inspired by the value of life, Denka Seiken’s mission is to protect
people’s health and thus earn the trust of society. In line with this, we will proactively
implement CSR activities, including health promotion and environmental load reduction
initiatives as well as local contribution initiatives.

Fiscal 2015 Achievements under the CSR Policies
Fire Drills

To create a safer and comfortableworkplace, we undertake safetyassurance activities, with all
employees striving to minimize
worksite risk. Moreover, weperiodically conduct fire drills
to ensure that our responseto emergencies are swift andappropriate.

We displayed our U Guard product line at the “The World Food And Beverage Great Expo
2016” held at Tokyo Big Sight. Having demonstrated its outstanding durability—it does notcrack no matter the food content and is highly resistant to holes caused by overheating—U
Guard garnered favorable reviews from attendees for its safety.

Denka Group CSR Report 2016

Influenza vaccines, bacteriological diagnostic reagents, virologicaldiagnostic reagents, clinical chemistry diagnostic reagents, immunologicaldiagnostic reagents and point of care testing (POCT) products

Message from the President

Fiscal 2015 Achievements under the CSR Policies

28

Products

Future Initiatives
As a healthcare company, we will proactively support
local sports events. As part of this initiative, we enteredsponsorship contracts with two members of the NIIGATA
Albirex BB Rabbits, a top-tier professional team in the
Women’s Japan Basketball League. We will step up
interaction with community members by supporting games
in which the BB Rabbits play in Gosen City and by serving
as a main sponsor for Gosen Koyo Marathon.

Cleanup Activities in Communities

Products displayed at the exhibition

The mayor of Sakura City (Left) and the generalmanager of Denka Polymer’s production division(Right)We carefully monitor factors
attributable to our operations
that may affect the environmentof communities surroundingus, such as odor and noise.
At the same time, we engage
in dialogue with people fromneighboring areas while
participating in local community
cleanup activities, with the aimof maintaining trust.

A commemorative photo taken with members of the NIIGATA Albirex BB Rabbits

Denka Group CSR Report 201629

Site Reports 2016

Site Reports 2016

CRK

Hinode Kagaku Kogyo
Overview

Overview

Operations In 1963, CRK was established through a joint investment by Denka

Operations Founded in 1949, Hinode Kagaku Kogyo became the first in the world todevelop a phosphate fertilizer, initiating the manufacture of this productin 1950 under the brand name YORIN. Since then, Hinode Kagaku has
remained Japan’s leading fertilizer producer and has striven to enhancequality and create new products while cultivating potential demand.
In these ways, Hinode Kagaku helps to develop fertile soil, thereby
contributing to greater crop yields.

and local interests based in Takasaki City, with the aim of developing,
manufacturing and marketing chloroprene rubber-based compounds
and their molded products. Building on its accumulated expertise andexperience, CRK has expanded its scope of operations to encompass
such products as water-stop and fire-resistant materials for construction
and civil engineering use. Today, CRK manufactures and sells a range ofnatural and synthetic rubber compounds and their processing products.
Products Rubber compounds, industrial rubber products, fire-resistant thermal
expansion rubber products, butyl adhesive tape, hydrophilic expansible
water-stop rubber tape and quakeproof manhole joints
Address
306, Koyagi-machi, Takasaki, Gunma Telephone: +81-27-362-7510
Employees 62 (as of March 31, 2016)

Hideaki Nagasaka
President

YORIN and BM YORIN (fused magnesium phosphate), TORETARO (fusedsilicate phosphate fertilizer), mixed fertilizer and chemical fertilizer

Address

660, Aza Kuratani, Maizuru, Kyoto
Telephone: +81-773-75-5760

Employees 40 (as of March 31, 2016)

Message from the President

Message from the President

We have three corporate principles; “1. Contributing to society through business activities,”“2. Striving to achieve personal and corporate growth” and “3. Creating a lively and vibrantcompany.” We will earn the trust of stakeholders by practicing these principles in theprocessing, manufacturing, development and marketing of rubber products.

In fiscal 2016, Hinode Kagaku Kogyo will mark the 67th anniversary of its founding as Japan’s firstcommercial phosphate fertilizer producer. Now popular in Japan, our phosphate fertilizer is the only
product of this kind certified as conforming with national standards for fertilizers used for organic
plant production, and it enjoys a solid reputation for safety and environment friendliness.
Leveraging our rich technological heritage, we will develop new products capable ofaccommodating the latest market needs while passing down our techniques to future generations.

CSR Policies
Placing the utmost priority on safety, we will focus on ensuring facility security while giving
due consideration to the environment. Furthermore, we will carefully control and enhancequality and maintain a stable stream of output. We will also strive to realize a mutually
beneficial coexistence with customers and local communities, and our manufacturing,development, marketing and other departments will work as one to achieve this goal.

Fiscal 2015 Achievements under the CSR Policies
Workplace Meetings
・A s of December 31, 2015, our zero-disaster record reached 2,250
days. Thanks to this accomplishment, we won a Silver Prize under acommendation scheme for small and medium-sized enterprises sponsoredby the Gunma Labour Standards Association.
・We provide a short message on safe operations at every morning meetingin line with monthly themes with the aim of raising safety awareness.
・We discuss the status of our 5S activities as well as the causes of nearmiss incidents at monthly workplace meetings, soliciting suggestions for
improvement.

Safety Improvement andGreenery Development

Products

Coated Drum Rack

Friendly Games with the
Local Communities

Future Initiatives
Although we have acquired ISO 9001 quality
management system certification, in fiscal
2016 we will introduce upgrades to secure
conformance with the latest standards. With
Denka providing us with support, plans callfor undergoing examination for certification
renewal. Moreover, we will formulate actionplans during fiscal 2016 to acquire ISO
14001 environmental management system
certification.

CSR Policies
Basic Policy :Shizuo Takagi
President

Contribute to society through fertilizer production while facilitating
employees’ self-fulfillment
Environmental Policy : Promote environmental management activities in line with KES* Step
2 to ensure our harmonious coexistence with the earth’s environment
Safety Policy :Every employee thinks and takes action to secure their own andcolleagues’ safety
Quality Policy :Strengthen process control while pursuing higher one-pass yields

Fiscal 2015 Achievements under the CSR Policies
Safety Education (Commemoration Day for Those Who Died in the Course of Their Duties)

Future Initiatives
We are striving to enhance worksite
communication. In addition to this and otherongoing activities, we will endeavor to ensuresustainable plant operations over the futureby, for example, repairing aged facilities andreducing burdens on workers based on a
medium- to long-term perspective.

We hold daily meetings to promote KY (hazard
prediction) activities and address worksite risk before
work begins, thereby ensuring that measures to prevent
operational risk are in place. We marked the third yearof an ongoing project aimed at improving issues foundonsite involving frontline operators.

Cleanup Activities in Communities

・W ithin our plant building, there were a number of spots without
sufficient illumination and we have systematically completed necessary
improvements.
・As part of 5S activities, we applied coatings to the walls and floors of ourplant building while developing greenery. In addition, all employees takepart in monthly cleanup activities that cover the entire premises.

30

Denka Group CSR Report 2016

To facilitate interaction withneighboring communities, weentered a bowling tournament heldby companies based in the same
industrial complex while holding
a joint softball game with Denka’s
Shibukawa Plant. Moreover, our inhouse recreation activities included
barbeques, golf competitions
and summer festivals aimed atdeepening ties between employees.

We are currently making technological improvements
related to wastewater and exhaust gas based on the
KES* Step 2 environmental management system.
Specifically, we made progress in upgrading our effluent
neutralization technology and standardizing suchtechnology. We are also engaged in periodic cleanup
activities in areas around the plant.

Staff at CRK

* Abbreviation for Kyoto Environmental Management System
Standard. Formulated by an NPO based in Kyoto, KES Step 2 isdesigned for relatively large SMEs, and comprises management
items that are virtually identical with ISO 14001.

Staff at Hinode Kagaku Kogyo

Denka Group CSR Report 201631

Site Reports 2016

Site Reports 2016

Denka Azumin

Environmental Performance
Omi Plant

Overview

Item

Operations Originally, Denka Azumin was the Hanamaki Plant of Japan Metals &Chemicals Co., Ltd. Established in 1962, the plant initiated the production
and marketing of AZUMIN in the following year. In 2003, AZUMIN
operations were transferred to Denka and the plant was reorganized into
Denka Azumin Co., Ltd., making a new start as a manufacturer of humic
acid fertilizer and other related products. Remaining a pioneering company
in the field of humic acid fertilizer, Denka Azumin is striving to contribute toagricultural production.

Energy consumption intensity
CO2 emissions (from energy sources)

Unit
Comparedwith FY1990
10,000t

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

0.94

0.90

0.91

0.90

Fiscal 2016 target
0.90
85

83

84

85

78

PRTR substance emissions

t

18

14

14

14

14

NOx emissions

t

2,935

3,394

3,209

3,280

3,564

SOx emissions

t

81

61

45

42

47

Soot and dust emissions

t

86

67

65

81

72

64,00463,08462,92558,91558,915

Products

AZUMIN (magnesium humate fertilizer)

Water used

Address118, 5 Chiwari, Nimaibashi, Hanamaki, Iwate
Telephone: +81-198-26-2131

COD (BOD) discharges

t

847

850

743

561

561

Waste generatedt

109,866

101,260

93,76894,004

108,055

Final waste disposal

t

100

69

60

50

45

Employees 27 (as of March 31, 2016)

1,000m3* The fiscal 2016 target for NOx emissions was revised from the previous target of 3,150t set forth in the current Medium-Term
Environmental Plan, reflecting estimated growth in cement production in comparison to the fiscal 2015 production volume.

Omuta Plant

Message from the President

Item

We have manufactured AZUMIN for more than a half century, helping to improve farm soils
throughout Japan. Because we often handle hazardous substances, such as nitric acid andheavy oil, we strongly emphasize carrying out daily KYT (hazard prediction training) activities
in order to ensure safe production. In fiscal 2016, the composition of our workforce changed
significantly, with a number of younger employees replacing retirees. With this in mind, we are
implementing thoroughgoing safety education, especially for our new colleagues in an effort topreserve our zero accident and disaster status.

Energy consumption intensity
CO2 emissions (from energy sources)

Mamoru Nakamura
President

Fiscal 2015 Achievements under the CSR Policies
Companywide Safety ConferenceTraining session on safe
operations with external
lecturers (October 2, 2015)

Risk Assessment Training

Joint emergency response drill
with the Hanamaki City Fire
Department (October 2, 2015)

Risk assessment training session(February 1 and 2, 2016)

・We hold monthly GCP promotion meetings in which we formulate and implement measures to counter potential worksite dangers
based on reports submitted by subcommittees in charge of risk prediction, safety patrols, energy saving and logistics operations.
・We hold biannual Companywide Safety Conferences in which managers provide lectures while attendees
participate in training and other activities to raise safety awareness.
・With lecturers from Head Office and the Environment and Safety Dept. of the Chiba Plant, we hold risk assessment
training sessions for all employees as well as subcontractors.
・Despite our efforts aimed at achieving zero-accident status for 1,500 consecutive days, we experienced one
incident involving absence from work on July 6, 2015. Having implemented measures to prevent recurrences, weare striving toward the new target of achieving 1,000 consecutive days of zero accidents.

Environment
・We measured air, water and noise pollution as well as vibrations emanating from our facility and reported that all
were within limits set by the city legislature.

Communication
・To facilitate communication with local residents, twicea year we host plant tours to which we invite membersof the local antipollution council. We also participate ingeneral meetings and gatherings hosted by that council.
We continually strive to maintain favorable relationships
with people from neighboring communities.
・We received a total of eight student interns from two
local high schools.
・W e participated in the Hanamaki City Industrial
Exhibition. This exhibition provided us with anopportunity to publicize our AZUMIN through the city’s
official newsletter titled “Hanamaki,” which is distributed
to every household within the municipal area.

32

Denka Group CSR Report 2016

Local antipollution council
members taking a close look atplant facilities(November 24, 2015)
A page from the “Hanamaki”
newsletter featuring AZUMIN(December 15, 2015 edition)

Future Initiatives
Given the growing number of younger
employees replacing retiring veterans, weconsider raising their safety awareness andinstilling proper actions essential. With thisin mind, we will proactively take steps tominimize worksite danger while utilizing risk
assessment methods.
● We will continue to provide employee education on

the proper handling of nitric acid while implementing
countermeasures to prevent leakage. Also, in
collaboration with local fire departments we will
undertake emergency response drills with simulated
accidental leaks. Such actions help secure our ability
to ensure human safety and minimize the impact ofsuch a disaster on the local environment. We willcontinue these and other initiatives going forward.
● We will continue searching for methods toreduce NOx emissions, which are inherent to ourmanufacturing process.
● Given the cancelation of the next Hanamaki City
Industrial Exhibition, which in the past three years
proved an attraction for local businesspeople, wewill step up public relations activities aimed at
facilitating an understanding of AZUMIN fertilizer
among members of local chamber of commerce
and industrial clubs as well as residents ofneighboring areas.

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016 target

0.94

0.94

0.88

0.86

0.87

13

13

16

14

14

PRTR substance emissions

t

7

7

9

8

7

NOx emissions

t

846

788

786

603

786

SOx emissions

t

1

1

1

1

1

Soot and dust emissions

t

4

6

6

5

5

1,215

1,190

1,205

1,177

1,177

1,000m3

Water used

CSR Policies● Maintain a zero-accident record (current target: achieving 1,000 days of zero-accident operations)● Pursue environmental conservation and management activities● Build relationships of trust with local communities

Unit
Comparedwith FY1990
10,000t

COD (BOD) discharges

t

1

1

2

1

5

Waste generated

t

7,408

8,680

12,903

13,470

8,457

Final waste disposal

t

22

72

25

17

17

* Medium-Term Environmental Plan targets

Chiba Plant
Item
Energy consumption intensity
CO2 emissions (from energy sources)

Unit
Comparedwith FY1990
10,000t

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

0.96

0.91

0.86

0.81

Fiscal 2016 target
0.72
23

34

33

27

25

PRTR substance emissions

t

73

66

51

49

46

NOx emissions

t

256

263

245

252

156

SOx emissions

t

33

20

16

8

7

Soot and dust emissions

t

3

1

1

1

1
4,080

Water used

1,000m

3

4,113

3,970

3,457

3,908

COD (BOD) discharges

t

13

10

12

13

12

Waste generatedt

14,283

12,856

11,719

11,960

9,696

Final waste disposal

t

39

52

55

71

77

* Medium-Term Environmental Plan targets

Shibukawa Plant
Item
Energy consumption intensity
CO2 emissions (from energy sources)

Unit
Comparedwith FY1990
10,000t

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

0.78

0.83

0.84

0.86

Fiscal 2016 target
0.66
0.9

0.7

0.7

0.8

0.9

PRTR substance emissions

t

4

3

4

4

6

NOx emissions

t

5

11

11

11

12

SOx emissions

t

1

2

3

4

5

Soot and dust emissions
Water usedt
1,000m3

0

0

0

0

0

2,458

2,399

2,294

2,089

2,240

COD (BOD) discharges

t

3

4

3

3

3

Waste generated

t

369

382

384

442

508

Final waste disposal

t

1

1

2

1

2

* Medium-Term Environmental Plan targets

Denka Group CSR Report 201633

Site Reports 2016

Site Reports 2016

Environmental Performance

Ofuna Plant

Denka Singapore Pte. Ltd. Seraya Plant
Item

Energy consumption intensity
CO2 emissions (from energy sources)

Unit
Comparedwith FY2002
10,000t

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

0.77

0.78

0.72

0.67

Fiscal 2016 target

Item

0.65

Energy consumption intensity
CO2 emissions (from energy sources)

1

0.7

0.8

0.8

0.9

Unit

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016 target

—

—

—

—

—

—

10,000t

3.4

t

1

1

1

1

1

PRTR substance emissions

—

t

2

2

1

2

1

NOx emissions

t

4.6

4.6

4.6

4.9

5.0

0

SOx emissions

t

0.9

0.9

0.9

0.9

0.9

0

Soot and dust emissions

t

0

0

0

0

0

1,000m3

193

138

174

217

220

Soot and dust emissions

0

t

0

0

0

0

0

0

0

—

3.6

3.6

NOx emissions

t

—

3.3

PRTR substance emissions
SOx emissions

—

3.0

—

—

51

46

42

59

59

Water supplied

COD (BOD) discharges

t

0

0

0

0

0

COD (BOD) discharges

t

3.2

3.2

3.5

3.7

3.5

Waste generated

t

107

167

137

147

139

Waste generated

t

1,948

1,773

1,445

1,588

1,700

Final waste disposal

t

18

16

14

14

10

Final waste disposal

t

0

6

13

12

20

Unit

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016 target

—

—

—

—

—

—

Water used

1,000m3* Medium-Term Environmental Plan targets

Isesaki Plant

Denka Advantech Pte. Ltd. Tuas Plant
Item

Energy consumption intensity
CO2 emissions (from energy sources)

Unit
Comparedwith FY2005
10,000t

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016 target

Item

0.98

1.02

1.00

0.96

1.00

Energy consumption intensity

2.1

1.7

2.2

2.1

2.4

CO2 emissions (from energy sources)

10,000t

2.3

t

0

0

0

0

0

t

0

0

0

0

0

NOx emissions

t

322

501

590

530

650

0

SOx emissions

t

0

0

0

0

0

0

Soot and dust emissions

t

0

0

0

0

0
94

Soot and dust emissions
Water usedt
1,000mCOD (BOD) discharges

0

0
3

0

0

0

0

0

440

427

433

385

410

0

0

0

0

0

t

Water supplied

1,000m3—

1.7

NOx emissions

0

—

2.0

PRTR substance emissions

t

—

2.5

PRTR substance emissions

SOx emissions

—

2.6

—

—

99

97

83

73

COD (BOD) discharges

t

0

0

0

0

0

t

348

381

306

199

266

t

348

381

306

199

266

Unit

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016 target

—

—

—

—

—

—

10,000t—

Waste generated

t

179

145

171

155

160

Waste generated

Final waste disposal

t

0

0

0

0

0

Final waste disposal* Medium-Term Environmental Plan targets

Denka Innovation Center
Item

Denka Advantech Pte. Ltd. South Plant
Unit

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016 target

—

—

—

—

—

—

Energy consumption intensity
CO2 emissions (from energy sources)

Item
Energy consumption intensity
CO2 emissions (from energy sources)

10,000t

0.1

0.1

0.2

0.2

0.2

PRTR substance emissions

—

0

0

0

0

0

PRTR substance emissions——

NOx emissions

t

0

0

0

0

0

NOx emissions

t

—

0.6

SOx emissions

t

0

0

0

0

0

SOx emissions

t

—

0

0

0

0

Soot and dust emissions

t

0

0

0

0

0

Soot and dust emissions

t

—

0

0.1

0.1

0.1

1,000m3

8

8

7

6

7

Water supplied

1,000m3

—

5

10

18

18

COD (BOD) discharges

t

0

0

0

0

0

COD (BOD) discharges

t

—

0

0

0

0

Waste generated

t

117

101

118

108

115

Waste generated

t

—

140

288

276

340

Final waste disposal

t

0

0

0

0

0

Final waste disposal

t

—

11

21

19

23

Water used

0.2
—

0.4
—

0.5

0.4
—

—
1.4

1.5

1.5

* Medium-Term Environmental Plan targets

Denka Singapore Pte. Ltd. Merbau Plant
Item
Energy consumption intensity
CO2 emissions (from energy sources)

Unit

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016 target

—

—

—

—

—

—

10,000t

0.3
—

0.4
—

0.4

0.3

Unit

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016 target

—

—

—

—

—

—

10,000t——

PRTR substance emissions——

CO2 emissions (from energy sources)

0.05

0.10

t

1.2

0.5

0.5

0.5

0.5

NOx emissions

t

0

0

0

0

0

SOx emissions

t

0

0

0

0

0

SOx emissions

t

0

0

0

0

0

Soot and dust emissions

t

0

0

0

0

0

Soot and dust emissions

t

0

0

0

0

1,000m3

44

58

46

47

50

Water supplied

COD (BOD) discharges

t

0.1

0.1

0.1

0.1

0.1

Waste generated

t

332

336

315

361

Final waste disposal

t

0

0

0

0

—

—

0.10

NOx emissions

—

—

0.08

—

Denka Group CSR Report 2016

—

0.4

Item
Energy consumption intensity

PRTR substance emissions

Water supplied

34

Denka Advanced Materials (Suzhou) Co., Ltd.

——

1,000m3

1.8

1.8

1.8

2.0

2.0

COD (BOD) discharges

t

0

0

0

0.5

0.5

317

Waste generated

t

0

0

0.2

0.2

2.4

0

Final waste disposal

t

0

0

0

0

0.1

Denka Group CSR Report 201635

Site Reports 2016

Site Reports 2016

Environmental Performance

Denka Chemicals Development Suzhou Co., Ltd.
Item
Energy consumption intensity
CO2 emissions (from energy sources)

Denka Seiken Co., Ltd.

Unit

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016 target

—

—

—

—

—

—

10,000t

0.01

—

0.01
—

0.02

0.02
—

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016 target

—

—

—

—

—

—

10,000t

1.5

1.5

1.6

1.6

1.7

—

PRTR substance emissions

t

0

0

0

0

0

NOx emissions

t

0

0

0

0

0

NOx emissions

t

4

3

4

4

4

SOx emissions

t

0

0

0

0

0

SOx emissions

t

2

3

2

1

2

Soot and dust emissions

t

0

0

0

0

0

Soot and dust emissions

t

0

0

0

0

1,000m3

0.3

0.9

0.4

0.5

0.5

440

702

269

280

COD (BOD) discharges

t

0

0

0

0

0

COD (BOD) discharges

t

0

0

0

0

0

Waste generated

t

9

20

23

12

22

Waste generated

t

337

275

935

967

970

Final waste disposal

t

0

0.03

0

0

0.05

Final waste disposal

t

41

42

48

70

50

Unit

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016 target

—

—

—

—

—

—

—

Denka Inorganic Materials (Tianjin) Co., Ltd.
Item
Energy consumption intensity
CO2 emissions (from energy sources)

Unit

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016 target

—

—

—

—

—

—

10,000t

—

—

—

—

—

NOx emissions

t

—

—

0.1

0

SOx emissions

t

—

—

0

Soot and dust emissions

t

—

—

0

1,000m—

1,000m3

Water supplied

674

CRK Co., Ltd.

PRTR substance emissions

Water supplied

3

0.01
—

Item
Energy consumption intensity

0.01

CO2 emissions (from energy sources)

10,000t

0.1

0.1

0.1

0.1

0.1

PRTR substance emissions

t

0

0

0

0

0

0

NOx emissions

t

0

0

0

0

0

0

0

SOx emissions

t

0

0

0

0

0

0

0.1

Soot and dust emissions

t

0

0

0

0
74

0.01

—

—

Water supplied

1,000m

—
3

—

—

0.4

0.7

0.7

74

75

74

74

COD (BOD) discharges

t

—

—

0

0

0

COD (BOD) discharges

t

0

0

0

0

0

Waste generated

t

—

—

8

42

10

Waste generated

t

75

84

80

60

65

Final waste disposal

t

—

—

8

42

10

Final waste disposal

t

34

37

30

19

22

Unit

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016 target

—

—

—

—

—

—

Denka Electronics Materials Dalian Co., Ltd.
Item

Hinode Kagaku Kogyo Kaisha Ltd.

Unit

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016 target

—

—

—

—

—

—

10,000t———

PRTR substance emissions

—

—

—

—

NOx emissions

t

—

—

—

0

SOx emissions

t

—

—

—

Soot and dust emissions

t

—

—

—

1,000m3———

COD (BOD) discharges

t

—

—

Waste generated

t

—

—

Final waste disposal

t

—

—

Energy consumption intensity
CO2 emissions (from energy sources)

Water supplied

Item
Energy consumption intensity
CO2 emissions (from energy sources)

0.06

CO2 emissions (from energy sources)

10,000t

2.3

2.4

2.2

2.0

PRTR substance emissions

t

3.4

5.0

4.2

2.6

2.5

0

NOx emissions

t

177

190

208

141

130

0

0

SOx emissions

t

173

118

101

74

90

0

0

Soot and dust emissions

t

10

7

6

6

0.1

0.3

1,878

1,333

1,330

1,327

—

0

0

COD (BOD) discharges

t

2

2

2

3

2

—

0.8

2

Waste generated

t

103

244

54

38

38

—

0.04

0.1

Final waste disposal

t

38

184

4

3

4

Unit

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016 target

—

—

—

—

—

—

0.04

—

—

1,000m3

Water supplied

—
1,571

1.9

Denka Azumin Co., Ltd.
Unit

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016 target

—

—

—

—

—

—

1.2

1.2

1.3

1.2

1.2

PRTR substance emissions

t

0

0

0

0

0

NOx emissions

t

0

0

0

0

SOx emissions

t

0

0

0

0

Soot and dust emissions

t

0

0

0

10

1,000m3—

Item
Energy consumption intensity

10,000t

Water supplied

Item
Energy consumption intensity

Denka Polymer Co., Ltd.

36

CO2 emissions (from energy sources)

Unit

PRTR substance emissions

Water supplied

—

0.02

Item
Energy consumption intensity

CO2 emissions (from energy sources)

10,000t

0.6

0.5

0.6

0.5

0.5

PRTR substance emissions

t

0

0

0

0

0

0

NOx emissions

t

27

29

26

21

21

0

SOx emissions

t

1

2

1

1

1

0

0

Soot and dust emissions

t

4

5

4

3

4

30

28

28

Water supplied

1,000m3

596

596

603

602

627

COD (BOD) discharges

t

2

4

2

2

2

COD (BOD) discharges

t

0

0

0

0

0

Waste generated

t

103

113

146

139

138

Waste generated

t

84

52

49

54

54

Final waste disposal

t

0

0

0

0

0

Final waste disposal

t

0.3

0.3

0.3

0.3

0.3

Denka Group CSR Report 2016

Denka Group CSR Report 201637

Site Reports 2016

Site Reports 2016

Environmental Performance

Denka Advanced Materials Vietnam Co., Ltd.
Item

Unit

Fiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016 target

—

—

—

—

—

—

10,000t———

PRTR substance emissions

—

—

—

—

NOx emissions

t

—

—

—

0

0

SOx emissions

t

—

—

—

0

0

Soot and dust emissions

t

—

—

—

0

0

1,000m3

—

—

—

11

25

COD (BOD) discharges

t

—

—

—

0

0

Waste generated

t

—

—

—

110

250

Final waste disposal

t

—

—

—

15

5

Energy consumption intensity
CO2 emissions (from energy sources)

Water supplied

38

Denka Group CSR Report 2016

0.11

0.19
—

—

Denka Group CSR Report 201639