DENKA CSR REPORT 2007

Basic Policy and Concept of CSR

3 ・・・・・・ Basic Policy and Concept of CSR
4 ・・・・・・ Message from the President

EconomyEconomy6 ・・・・・・ DENKA100

Society
8 ・・・・・・ CSR Measures
9 ・・・・・・ Corporate GovernanceSociety11・・・・・・ Human Resource Development

12 ・・・・・・ Practicing CSR
16 ・・・・・・ Contribution to a Recycling/Reusing Society
18 ・・・・・・ Environmental Consideration in Products and Technologies

Environment

Editorial Policy
DENKA launched full-fledged CSR Measures in April
2007 by appointing a CSR Promoting Dept. backed by
the mission to enforce Corporate Social Responsibility(CSR) to "Society", the "Environment" and the"Economy". This and more will take place throughactivities that satisfy Responsible Care (RC), that has
been conventionally practiced, as well as through newactivities taking place according to the new themes set
for each category.
This report that was conventionally called the"Environmental Report" has been remand to "CSR
Report". It describes the company's effort toward the"Environment and Safety", and covers the area of"Society" and the "Economy" to disclose DENKA efforts
to stakeholders. The intention is to provide "detailed
information" as well as ensure "easy reading
information" on our corporate measures to maintain thestakeholder's respect.
This publication has been prepared with reference to"Reports on Environmental Guidelines 2003" of the
Ministry of Environment and "Sustainability Reporting
Guidelines v3" of Global Reporting Initiative(GRI).

CSR by DENKA
DENKA promotes "DENKA100", from April 2007, on a company-wide basis to enforce new challenges toward the centennial
anniversary of the company in2015. A cooperative and harmonious working relationship with stakeholders is vital to ensuresustainable development of an enterprise. Further, the awareness of social responsibility is also indispensable upon undertaking
business activities.
It is DENKA's philosophy to "Build lasting trust based on the value of the products we manufacture". The company is also aware of theimportance to be a responsible member of society and to practice "CSR". Thus, relentless effort will continue backed by theunderstanding that these are mandatory conditions for a successful enterprise, as DENKA proudly enters its 100 years of operations.

"Build lasting trust based on the value ofthe products we manufacture"

Scope of this Report

22 ・・・・・・ Responsible Care

Environment

24 ・・・・・・ Overview of RC Activities
26 ・・・・・・ Environmental Conservation
31 ・・・・・・ Product Safety
32 ・・・・・・ Labor Safety and Hygiene, Safety and Disaster Prevention
34 ・・・・・・ Environmental Accounting
35 ・・・・・・ Environment Performance Data

■Target Period
As a rule, this FY2006 report covers the period from
April 1,2006 to March 31, 2007. However, thecontents will also include performance indices(statistics) prior to FY2006, as well.

Sustainability

Company Overview■ScopeThe data found in this report is based on theinformation of DENKA's plants and research center
documented on pages 38-39, unless noted otherwise.
Note that the data on the plants and research center
also include those of affiliate companies found on page23.

SocietyCompany Overview
For more information

36 ・・・・・・ Company Overview
38 ・・・・・・ Domestic Productions

CSR Promoting Dept.,
DENKI KAGAKU KOGYO KABUSHIKI KAISHA

Contribution to the Communities
Thorough Measures to Compliance

TEL +81-3-5290-5511

40 ・・・・・・ Overseas Production and Marketing Bases
43 ・・・・・・ Affiliate Companies

FAX +81-3-5290-5149
Nihonbashi Mitsui Tower,
1-1, Nihonbashi-Muromachi 2-chome
Chuo-ku, Tokyo 103-8338, JAPANhttp://www.denka.co.jp

Environment
Consideration to the Global Environment
Securing Safety

EconomyContribution to the Stakeholders
Customer Satisfaction
Employee Satisfaction

46 ・・・・・・ Third-Party Audit

2

DENKA CSR Report 2007

DENKA CSR Report 2007

3

DENKA CSR REPORT 2007

"Build lasting trust based on the value ofthe products we manufacture"

DENKA was founded to mainly manufacture and sellcalcium carbide and calcium cyanamide. Since then, the①Business Development with DS09
②Employee awareness & operational reforms GCP2.0

company has paved the basics in carbide chemicals, andhas further stemmed into the fields of cement and other③Development of human resources④Enhancement of productivity

inorganic materials, as well as petrochemical materials.

⑤Promotion of research & development⑥Corporate social responsibility

Recently, the company expanded business to electronicmaterials and pharmaceuticals. Effort has always

From "RC" to "CSR"

contribute to growth of society through development tofrom 1995, in effort to ensure a sustainable environment
and to secure safety as a good, health and sound chemical●●

DENKA CSR Report 2007

For society we thoroughly enforce compliance andmaintain good communications with the local
community, as a good corporate citizen.
For the environment we continue to improve technologies
to prevent global warming, reduce discharge or chemical

Environmental Plan" in FY2003, the company has definedthe "Second Middle-Term Environmental Plan" in FY05.

DENKA relentlessly challenges the next stage. DENKA
also makes it a corporate mission and target to remain to

The current themes focus on prevention of global warming,"reducing waste" and "appropriately controlling chemical

substances, reduce waste and promote a recycling/reusing
society.

be a good company for the shareholders, customers,

substances" .

Every effort will continue to become a corporation that

employees and all other stakeholders.
DENKA hailed the DENKA "New Stage 2006" (NS06)"GCP (Good Company Program)" launched in October
2004 was designed to change the awareness at workforce.

creates "value" from "resources" by fully utilizing
technical capability.

3-year plan up to March 2007. This middle-term plan
focused on improving profitability of business andIt actively concentrates on attaining "safe and stable
operations", "zero accident and disaster/fire" and "theThis report describes DENKA's basic policies on thestrengthening the company's financial status, and the goal

global environmental conservation", as well as "compliance"and "stable employment" throughout business activities.

●"environment", "society" and "economy", as well as"DENKA100" that defines the new measures from FY07

DENKA's business results.
The intention of this report is to offer you information on"DENKA100" from April 2007. This is a company-wide
effort focused on six pillar areas of new challenges.

intends to satisfy the corporate social responsibility as achemical enterprise. It hails to "Promotion of CSR

DENKA measures for further understanding of our businessactivities. We will be very happy if we can have your

Activities take place in hope to achieve the goals defined,(Corporate Social Responsibility)", to actively enforce CSR
activities through diverse activities concerning

comments and suggestions.

with consideration to the centennial anniversary of thecompany in 2015.

4

products.
For employees we ensure an accident and disaster free

To continuously grow and to create corporate values,

was successfully achieved during the subject period. Inline with this progress, the company newly introduced

President

For customers we supply high quality and highly effective

workplace, in becoming an enterprise that satisfies theiremployees.

DENKA has undertaken Responsible Care (RC) activities

enterprise. Following the "Primary Middle-Term

A New Set of challenges with "DENKA100"

For shareholders effort focuses on establishing a
respectable relationship by ensuring stable businessresults, improving business, providing information anddisclosing information.

●

thoroughly focused on "manufacturing", with theintention to make living more comfortable and to
supply products and service.

●

November.2007"environment", "society" and "economy".

DENKA CSR Report 2007

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Economy

DENKA CSR REPORT 2007

DENKA100

A New Set of Challenges with Focus on thecentennial Anniversary of the Company

FY2006 GCP Movement■ What is "DENKA100"?

■ Publication of "GC News"

4. Enhancement of productivity

In FY2006, a Group Presentation took place twice in June

The "GC News" has been published every month from

centennial anniversary in 2015.
In April 2007, we went ahead to launch "DENKA100" as a

A "Productivity Enhancement Center" has been appointed topromote activities that improve productivity.

and November.

March 2005, to provide an activity report on GCP.

company-wide movement for a new set of challenges with

5. Promotion of Research & Development

The presentation in June was presented by 19 groups fromthe plants, research and development, business

The publication mainly focuses on the safety education andoperational improvement activities that are major themes offocus on the 100th year of operations. The basic philosophyof "DENKA100" is to become a corporation that creates "value"

Every effort will be made to further concentrate on R&D thatis the key to DENKA's future. This not only encompasses

departments, and branches. They reported the activities ofthe second term of FY05, and there were also 2 special

GCP. It also introduces results on various presentations,training programs, lectures by directors, timely topics, etc.

from "resources" fully utilizing high technological power. With
this in mind, we set our target to increase the operating

faster turnover of R&D, but also the goal to "strengthen ourstrong products", as well as develop new products backed

lectures that won the GCP Prize the previous year. The

income twofold from FY2006 levels by 2015 up to ￥50 billion

by the company's current operations. Nonetheless,

GCP-NS06 Promoting Dept. also presented the progress
report of GCP-NS06 promotion and the "OP+1", new short-(non-consolidated), and ￥60 billion (consolidated).
The company further defined the following 6 pillar policies toconsolidated measures will also be enforced to undertake
business through new perspectives.

term movement.
In November, there were presentation on GCP activities byreach the goals set by "DENKA100".
1. Business Development "DS09"

6. CSRWe are a chemical enterprise expected to maintain social

4 departments and presentation of S&PM project-related
activities. In addition there were presentations on individual

and a half years of activities launched from 2004 October.
All activities up to date have been included in this booklet

A 3-year action plan will be defined as the first step toward

responsibility. For this reason, we seriously attend areas ofthemes of labor safety and hygiene improvement activities.

the statistical goal. The goal set here will be to yield by
FY2009, an operating income of ￥ 43billion on athe "environment", "secure employment", "compliance" and"social activities" to satisfactorily and actively fulfill our

from the kickoff proclamation, briefing, presentation,
message from the president, details of presentation

consolidated that is an additional ￥13 billion of the current
operating income, and ￥35 billion on a non-consolidated

share of CSR activities.

documentation in the future.

■ DENKA Work-related Accident Case
Studies
DENKA strives to create a workplace that is safe andcomfortable as a chemical company to work at. Thus, manymeasures are undertaken to ensure this, including "activities

business operations.
Operating Income Ratio : 10% and above
ROA* : 10% and above
Interest-bearing Debt Ratio : 20% and below
In addition, effort will be made to attain an shareholders'

DENKA100
A new set of challenges which we aim to achieve inthe run-up to the 100th anniversary (2015)

each sect.
+
Productivity
Enhancement
Center/Production
Process Dept.

in the future.

■ S&PM Project Activity
Making information visible to all, the Sales Sector andManufacturing Sector share information. The "S&PM

each sect.
+
R&D Dept.

Project" was introduced to mutually improve productivity
and customer satisfaction.

each sect.
+
CSR
Promoting
Dept.

DENKA100 Promoting Dept.(Administration)

Guidelines on DENKA100

GCP Activity Report◎To become a corporation with trustworthiness◎To become a corporation which can find business chances from charges◎To become a corporation with honor where individuals can display his ability＊ ROA : Return on Assets

6

DENKA CSR Report 2007

DENKA CSR Report 2007

7

Company Overview

each sect.
+
Human
Resource
Development
CenterCorporatesocialresponsibility

CSR

Enhancementof productivity

Work-related Accident Case Studies" for in-house
distribution.
Various measures will continue to prevent disaster and fire

Promotion ofresearch &development

R&D

2007

each sect.

Developmentof human
resource

Productivity

GCP2.0education, as well as review the personnel system.

GCP Version-up

each sect.

3. Development of Human Resources
The goal is to strengthen activities by the "Human Resource
Development Center" that mainly focuses on in-house

DS09

3-year

DENKA100 Promoting Dept

company from inside by changing the conventionalawareness and understanding.

2009

Future plans

2. Employee awareness & operational "GCP2.0"

Employeeawareness &operational
reforms

Motivation

Business
Deployment

The goal is to further develop "GCP (Good Company
Program)" that has already been in action to change theScene of GCP Presentation

To become a corporation that creates "value" from "resources"
fully utilizing high technological power

2015

equity ratio of 50% and above, and interest-bearing debt of￥60 billion (non-consolidated).

employee awareness and operational reforms in thecompany. Our intention is to reinforce and re-energize theto improve the environment for safe activities" and to "boost
the awareness of safety". In 2006, we created the "DENKA

Environment

To increase the operating income twofold from
FY2006 levels by 2015 up to ￥50bn(nonconsolidated), and ￥60bn(consolidated)

operating income set will include the following 3 indices toboost business efficiency and to ensure sound and healthy

A "GCP Progress Report" was published to summarize the 2

programs, GC News, etc. Plan is to continue to publish thisTargets of DENKA100

What's more, with DS09, the goal, in addition to the■ "GCP Progress Report"
Societythat is an additional ￥10 billion of the current operating
income.

EconomyEconomy■ GCP Group Presentation

DENKA was founded in 1915 and is about to welcome its

Society

DENKA CSR REPORT 2007

CSR Measures

Society

DENKA CSR REPORT 2007

Corporate Governance

DENKA Group Guidelines

Organization for Promoting CSR

1. We will promote sustainable development of society withconviction that Corporate Social Responsibility is an

Corporate GovernanceInternal Control

Corporate governance requires us to satisfy the expectations andrespect of our stakeholders such as stockholders, customers,

We believe it is important to organize an appropriate Internal
Control System, since this is the basic condition to meet tonow, the permanent committees appointed respectively for

local community and employees. We are also convinced thatthe respect and expectation of society. Thus, every effort will

the environment, society and economy were working
separately. CSR related activities and themes were also

this is the foundation of business for an enterprise to remain to
be respected and supported by society. For this reason, we takecontinue to sustain and improve the system according to thebasic policies decided at the board of directors meeting.

dispersed among various operations. However, it is vital tokeep all these themes and activities under one flow andserious efforts to energize our board of directors, strengthen our
audit system, create an efficient management organization and

The specifics are described below.

3. We will operate our business in accordance with fairness.

promoted through coordinated effort. The "CSR Promoting

strengthen the compliance system.

① Board of Directors/Executive Officers

4. We will keep good communications with society andDept." was organized to do this in collaboration with the"DENKA100 Promoting Dept." and "Investor Relations andessence of business.
2. We will contribute to sound growth of society throughdevelopment to supply products and service of safe andenvironment-friendly.

disclose appropriate information.

Corporate Communications Dept.".
Specific activities by the "CSR" will be introduced below.

Society

6. We will maintain safe and work environment to respect
all fundamental human rights.
7. We will carry out the environmental conservation byeffectively utilizing resources, reusing and recycling
resources.
8. We will participate in various activities of the global
environmental conservation.

10. We will contribute to the development of respective
communities as a good member of the global society.

separate execution of business from supervision. As a result, the numberof board of directors has been cut by half from 16 to 8 directors.

Governance System
DENKA adopts the Corporate Auditor System at the

As a general rule, a board of directors meeting is conducted once amonth, with the attendance of all auditors including outside auditors.

① Define basic policies and comprehensive
solutions on CSR activities by the DENKA Group

foundation of the Corporate Governance System. This boardof Auditors, including 2 independent outside Auditors②Internal Audit System② Educate and enlighten on CSR activities by theoperates in the interest of stakeholders to audit business

An internal audit is conducted mainly by the governing sectors
centralized around the management sector, and various other

DENKA Group (work in collaboration with the
DENKA100 Promoting Dept.)

activities, as well as management and administration, tomonitor suitable business operations.

committees including the RC committee, for audit to take place
according to function. Each sector and committee collaborates to③ Promote CSR activities for public affairs and IR(work in collaboration with IR and Corporate

The chart below shows our corporate governance system
including the internal Audit system.

educate about various legislations and audit operational statuses.
Then the results are accordingly reported to the directors.
Compliance Hotline System has also been introduced toCommunications Dept.)④ Internally and externally distribute results of CSR
activities (CSR Report, etc.)

supplement the internal audit described above, to ensure early
discovery, detection and correction of violations.

⑤ Help improve Application Management System⑥ Secretariat in-charge of other CSR promotion
activities■ Corporate Governance System■ CSR Organization

Environment

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

The Executive Officers System was implemented from June 2007 to
optimize the decision-making process of the board of directors, and toSociety

5. We will observe the laws and regulations, perform fairbusiness according to social good senses.

Economy

DENKA newly organized a "CSR Promoting Dept." toactively promote internal and external CSR activities. Up toGeneral Stockholder's Meeting
Appointment/Dismissal

Product Liability (PL) Committee

Safety and Hygiene Committee of Plant
PL Measures Committee

Representative Director
Executive Directors
Executive Officers
Various Business Sectors

Audit(Board of Auditors)

Assistant
Corporate Auditor's Office

Affiliates

Conduct Audit/
Auditing Staff

Ethics Committee

Internal Audit
Security Export Control Committee
Risk Management Committee
Investor Relations and Corporate Communications

Audit
Financial Auditor (Auditing Firm)

Each Sector Conducting Internal Audit（

Corporate Auditor

Company Overview

Safety Measures Headquarter

ReportCSR Promoting Dept.

※

Executing Sector

Energy Saving Subcommittee

Appointment/Dismissal

Election/Displacement

RC Secretariat of Division

ReportSupervise

Appointment/Dismissal

Directors (Board of Directors)

RC Committee of Plant

Appointment/Dismissal

Responsible Care (RC) Committee

ReportPresident）

Administrative Dept. Legal Dept.
Environment and Safety Dept. Quality Management Dept. etc.

Compliance Hotline※ Details of the Energy Saving Subcommittee organization appears on p. 26 "Measures to Prevent Global Warming".

8

DENKA CSR Report 2007

DENKA CSR Report 20079

Society

DENKA CSR REPORT 2007

Corporate GovernanceCompliance

DENKA CSR REPORT 2007

Human Resource Development

Risk Management

In-house education and training programs

abided by legislation and internal regulations, as well as

We are aware that risk control is an extremely important

thoroughly refrain from acts that violate social morals and ethics.
These have been clearly defined as the action standard for the

aspect of this.
As a rule, each business sector is respectively responsible inentire group companies. In 2002, this was issued as the "DENKA
Group Ethics Policy".

identifying and understanding the risks unique to each of
their operations. And is also responsible in taking appropriate

An "Ethics Committee" was also organized, with the President

measures. However, environmental and safety issues concern

heading the committee as the chairman, to thoroughly and strictly
enforce the "DENKA Group Ethics Policy". The role of thisthe entire corporate activities. Product Liability (PL) andExport Control are also vital issues for DENKA, as a while.

organization is to comprehensively direct and supervise thecompliance system. Thorough measures are also enforced to

For these areas that concern the entire company, risk
management and control is enforced through an organization

ensure compliance in each sector of the Legal Dept.,
Environmental and Safety Dept., Intellectual Property Dept. etc.

such a specialized department or permanent committee.
Risk Management Guideline was also defined as policy toEffort is also focused on educating the staff on corporate

comprehensively attend incidents that have a major effect oncompliance through in-house programs lead mainly by the
Human Resources Development Center.

corporate activities. "Crisis Measurs Headquarter" has also
been organized as an organization mutually attending risk
management along with the permanent "Risk Management
Committee".

according to the role of each rank. The program is designedwith focus on education on legal aspects, compliance and■ Desired characteristics（1）Constantly maintain the spirit to better oneself throughsafety measures that are at the root of corporate business.

business and social activities. (high goals and selfenlightenment)② Special Education Programs
Numerous training programs and curricular themes are（2）Always respect others and maintain a humble, positiveminded attitude. (humble and honest)

available to learn about intellectual property, engineering,
quality management, accounting, practical foreign trade tasks,（3）Never be selfish. (cooperative)

and the systems sector.

（4）Remain active in actualizing change through teamwork
and organizational activities. (motivation)③ Career Up Programs (Support)
Language programs and correspondence courses are provided（5）Possess insight from a broad perspective, superior
problem-solving skills and the power to execute thosefor career improvement opportunities. The company also
supports employees acquiring legal/official certification

potentials. (foresight)（6）Remain cost conscious and maintain cost awareness.

according to the company's designated the Standard for theofficial certification Acquisition, that are standards to support(profit consciousness)

employees acquiring legal/official certification.
④ Education Programs According to Operation
Firstly, various enforcement items are clarified through■ Effect to Expect

education and training programs conducted at each
operation. Then effort is constantly focused on establishing,（1）Personal Growth: Action in which better skills,
knowledge, technology and performance leads toprofits.

planning and executing original educational/training
programs according to each operation to help improve theknowledge and skills of each individual employee.

（2）Organizational Growth: Better team performancethrough close cooperation within and between sectors.

■ Overview of Risk Management

Society

There is a need to appropriately understand the diverse andnumerous risks accompanying various corporate activities.

EconomySociety

We are convinced that compliance is the basic policy for an
enterprise to maintain sustainable growth. As a result, we haveCompliance Hotline System

Society（3）Corporate Growth: Further growth of the DENKA brandIn the case of
emergency,etc.

was organized and put in operation to do this in accordance withthe "DENKA Group Ethics Policy".

ReportReportSpecific risks

Other
Risks

(Organize Committee)

actions that violate the "DENKA Gropes Ethics Policy". When there
is reporting, the "Ethics Committee" chaired by the President will

Board ofDirectors

Ethics Committee

take swift and appropriate corrective measures.
The compliance hotline is mandated to remain fair and swift. The

Major casesof crisis

Safety Measures
HQ

CrisisMeasurs
Headquarter■ Human Resource Development Programs

ReportMonitoring/
Instruction

Manager Level

Manager Program

DENKA CSR Report 2007

New Management
ProgramAssistant Manager Level Assistant Manager Program

Sector In-charge of Case
Business Sector(Sales Div. Manufacturing Div. etc.)
Management Sector
Environment and Safety Dept.
Legal Dept.
Accounting & Finance Dept.

()

General Level

Special Education Programs (Elective Subject)

Self-Education Support

Shibukawa Plant

Language Courses

Ofuna Plant

Correspondence Courses

Central Research Center

Technical Knowledge(Patent, Quality Management, Analysis, etc.)
Management Knowledge(Legal, Accounting, CSR, etc.)

Assistant Chief Program
Technical Worker Program

Follow-up Program
General Staff Program↑

Education Programs According to Operation
Omi Plant
Omuta Plant

Sales Knowledge(Logistics, Trade, Procurement, etc.)
Chiba Plant↑

Chief Program
5-Year Program

New Employee Program

10

Company Overview

ReportMonitoring/
Instruction

General Manager Program

Results
Personal Growth

General Manager Level

Growth of Society
Growth of Company

Education Programs According to Rank (Mandatory Subjects)

Security Export
Control Committeethat are operating sectors of General Affairs and the Ethics
Committee of each plant. There is also an exclusive e-mail addressstrictly defined in the "DENKA Group Ethics Polisy", to maintain the
integrity and effectiveness of the system.

Scene of in-house education and training programs

PL Committee

corporate organization, as well as the Legal Dept. and other Dept.

discrimination or disadvantages with the clause for fair handling① Education Programs According to Rank
The goal is to learn and acquire knowledge and skills necessary

RC Committee

compliance hotline is setup to receive report at the Corporate
Auditors' Office and Labor Union that are independent from thefor internal reporting.
Furthur, DENKA also protects the whistle blowers from■ Programs

to perform the duties concerned and to act and behave
ReportRisk Management
Committee
Proxy organizations
according to case

The scope of the "Compliance Hotline" is to listen to reporting on

Setup
and
instruct

Environment

cracks with regular internal control systems and compliancesystems. Its role is to self-check the organization as well as selfcorrect the organization when necessary. The Compliance Hotline

and company. (profitability, brand and status)

Chairman of the Board / President (CEO)The purpose of this system is to cover the areas that fall through the

Official Certification Acquisition System

DENKA CSR Report 200711

Society

DENKA CSR REPORT 2007

Practicing CSR

Community Dialogue■ Responsible Care Chiba District/Community Dialogue
DENKA Chiba Plant participated in the "Responsible Care

This dialogue takes place every two years to serve as aplace of communication and exchange between corporate
members of Responsible Care and the representative of thecommunity, in hope to promote mutual understanding andsupport.

visiting the booth. The children created their own original
key holders under instruction of DENKA employees andhappily took home their new masterpiece.
Needless to say, the children were able to indulge in the
mysteries of "science" through this trade fair. We hope thatthese children will seek to become scientists in the future.

■ Emergency Drill
DENKA makes every effort to maintain safe plant operations ona daily basis. Work and workplace safety is also taken very
seriously with diverse measures enforced to prevent major
accidents and disaster. Each and every plant and researchpolice office. We also participate in other campaigns suchas the traffic safety and seatbelt campaign to prevent traffic
accidents.

center also trains through emergency fire drills that areperiodically conducted to always be prepared. The generalemergency drill is especially a serious training drill that takes
place with local fire brigade and the local government. The drill
covers the realm from emergency measures upon first contact,provides corporate information on activities and measuresby chemical enterprises to prevent disaster and fire. DENKA

reporting drills, fire extinguishing and various other serious
drills. The fire fighters also directly supervise us to improve ouralso provides information on safety and disaster prevention
measures by their chemical plants, and has gained

skills. Through these programs we intend to boost ourawareness and improve our skills to prevent fire and disaster.

understanding of the community. During discussions taking
place during the second half of the session, we found that

We similarly participate in general emergency drills organizedby the local government and entities of the industrial complex

the community were highly interested in environmental

because we are fully aware of the importance to enforce fire-conservation measures. We thereby discussed CSR-related
topics including mistakes taking place during businessfighting measures in collaboration with the entire community.

SocietySociety

At the request of the civic community, the activity report

Traffic Safety Activities■ Tour Around the Plant

Children making key holders at the DENKA booth

operations, concealment of accident, and disclosure of data.
During the session, DENKA also shared details of DENKA
GCP Activities.

During the Traffic Safety Week, we help to emphasize theimportance of safe driving in cooperation with the local

EconomyChiba /community dialogue" taking place in February 2007,as a representative of corporate operations.

Plant was used to make key holders. This event was
successful over both days, with a total of 1,400 children

DENKA offers a tour around DENKA plants for members of
the local government, as well as students from elementary■ Festival

school, junior high school and high school. During these
tours, DENKA briefs the group on business operations, aswell as explain the plant's measures on environmentalfriendliness, and safety. The group is also guided on a tour

the communities.
The Goi Rinkai Festival takes place every year in Ichihara
City, Chiba, where the Chiba Plant is located. DENKA

Omi Plant general emergency Drill

participated in the event as a member of the enterprises at
Goi coast with a refreshment booth to enjoy

around the production facilities.
The session always ends to deepen mutual understanding
between DENKA and the touring party through explanations,and Q&A after the tour, as well as hearing about requests
and expectations they may have toward DENKA.

communications with the local residents.

Environment

DENKA actively participates in local festivals as part of thecompany's effort to maintain good communications withAt the Ofuna Plant, we offered the plant premises tocelebrate the eve of the Shiogama Shrine Summer Festival.
Chiba Plant

Company Overview

The event was a great success, excited children and parents
enjoyed our snack booths, and kiddy entertainment shops.
Scene from the RC Chiba/ Community Dialogue■ Participate in Traffic Safety Council■ Youth Science Fair

DENKA uses vehicles throughout the workflow to transport

The DENKA Omi Plant participated as an exhibitor at theand move products inside and outside the plant, as well as
make sales rounds with sales vehicles to the main office and"Niigata Youth Science Fair" taking place at the Nagaoka
City (Niigata) Gymnasium over the two days on November

branch offices. Therefore, we always take safe driving on adaily basis. We invite traffic manager from the local police

25 and 26, 2006. The event was for children to find interest

office to our plants to constantly improve our knowledge

in sciences.
The DENKA booth provided a session under the title "makeoriginal key holders using shrinking plastic sheets". The"DENKA Thermosheet OPS" manufactured by the Chiba

12

DENKA CSR Report 2007

and skills. We learn from past traffic casualties andaccidents, study the cause of traffic accidents, then assess
Goi Rinkai Festival

the causes to define measures that prevent traffic accident.

Scene of Tour Around the Plant

DENKA CSR Report 200713

Society

DENKA CSR REPORT 2007

Practicing CSR■ Planting Hydrangea
A total of 8,000 hydrangea was planted on the road divider of
National Highway No. 17 in November 1999. This was a project

Investor

Contribution Programs■ IR Activities■ Mitsui Public Relations Committee

DENKA sponsors an orientation to institutional investors like

The Mitsui Public Relations Committee promotes

Shibukawa City, and the local Nakamura Self-Government

financial analysts and fund managers and individual
investors as part of DENKA's activities of investor relations.

international exchange and revitalizes the local community
through consolidated effort by the Mitsui Group companies

Council was appointed to manage and maintain the project. The
Shibukawa Plant was requested to cooperate in this program

In FY2006, orientations were provided to institutional

for various cultural and public affairs activities. Mitsui Group

from the planning stages, and readily accepted the proposal to
fully cooperate. Every year from April to November, theinvestors in May during the annual financial results andNovember upon semiannual financial results, to offer

also strives to make society more prosperous and contributeto social welfare to further boost the corporate image. Many

hydrangea grounds are plucked of weeds and pruned. The

corporate management. The details are provided on the
DENKA homepage. We also provided information on our

programs take place backed by this action principle,
including the "Fureai Trio" that is designed to support

flowers beautifully bloomed in 2006, as well, and successfully
entertained the eyes of passers-by.

"culture" and "education", the "Mitsui Golden Glove Award"

Business" at the same time. In addition were top meetings,
individual discussions and numerous other activities.

as an activity to support professional baseball, and "FureaiMarket" that is a social activity contribution to society.

"Environment and Health Promotion Council" of Shibukawa City.

Corporate orientations were provided in Kumamoto, Kobe
and Toyama for individual investors. Here, we explained

DENKA participates as a member of this committee tomainly support activities of "Fureai Trio".

Activities will be continued on.

Society

DENKA's business activities and the operations of our plants
and research center. Description was also provided on lime /(activities celebrating the 90th anniversary of the company)

was followed by feedbacks and Q&A session on DENKA
business. We believe this became an instant for the public

DENKA celebrated its 90th anniversary in 2005. In

to gain further understanding of DENKA efforts.
DENKA will continue to actively offer information tothe "DENKA Scholarship System" (rent assistance scholarship)
as a token of appreciation to the communities.

commemoration of this celebration, the company founded

The scope of this scholarship is for high school students
seeking admissions to a college/university where a DENKA
plant is located. Entry is open to the public and thencandidates are chosen. Successful scholarship winners will
receive a one-room apartment designated by DENKA and a■ Cleaning Programs

cash scholarship to partially assist the rent (30,000
yen/month) throughout the entire period of university studies

DENKA promotes programs to clean roads, parks and theirneighboring environment. The company works in collaboration

Fureai Programwith local residents to pickup empty bottles and cans, scrap
paper, cigarette buds, etc., as well as cut the grass along theroad. The volume of trash has been on a downward trend over

■ Donated Chemical Fire Truck to the Kingdom of Bhutan
In June 2006, DENKA offered the Kingdom of Bhutan achemical fire truck of the Chiba Plant, through "The Society
for Promotion of Japanese Diplomacy (SPJD)". To ensure

As members of the community, we will continue to help makea healthy and beautiful environment for the communities.

Scene from Investor Orientation

winner obligated to seek employment with the company.
There are currently 5 scholarship winners of this program.
With this system, DENKA strives to nurture human resources
to become persons that support the communities.

safe and effective utilization of the equipment, we
dispatched technical specialist. Instruction was provided on■ Permanent Member Awarding

the structure, mechanism and equipment of the truck, as

The Tokyo Chamber of Commerce and Industry

well as its function. Training and education also extended tomaintenance, repair and inspection methods, as well as

acknowledges contributions made by members to develop
the community and promote the industry, with theactual drills to spray water.
This chemical fire truck is expected to service the private"Permanent Member Awarding" system that was
implemented in FY2005. DENKA was proudly awarded

Civil Aviation Bureau (Paro International Airport) under thepermanent membership in FY06, which marks the 60th year

jurisdiction of the
Ministry of Information &Communication of the Kingdom of Bhutan. The truck isof DENKA's membership. Every effort will be made tocontinue to contribute to the development of the

expected to remain in service to fight fire and accidents incommunities and promotion of industries.

DENKA CSR Report 2007

15

Company Overview

the years, thus, hinting that the resident's awareness toward theenvironment has heightened.

accomplished within the normal number of years. There is noneed to reimburse the scholarship, nor is the scholarship

Environment

Deweeding/Pruning Activities

DENKA CSR Report 2007

Others■ DENKA Scholarship System

Fureai Concert

14

Airport Fire Fighting Personnel

calcium carbide business, petrochemical business, etc. Thisinstitutional and individual investors in the future.

The Himekawa River cleaning programs

Fire Drill

Society"Environmental Measures" and "Functional Ceramics

In 2005, we were recognized with a certificate of appropriationfor our meritorious participation in this activity as awarded by thethe airport and around it. We look forward to this new
device adding to the safety of Bhutan.

Economythat took place in collaboration with the Ministry of Construction(currently the Ministry of Land, Infrastructure and Transport) andSociety

DENKA CSR REPORT 2007

Contribution to a Recycling/Reusing Society

DENKA Cement Recycling System
It is important to reduce the volume of waste buried, as wellas establish a 3R (Reduce, Reuse and Recycle) system toresources. With this in mind, DENKA helps create arecycling/reusing society by recycling industrial waste andby-products to manufacture cement.
Cement is manufactured using natural raw materials and●Natural raw
materials

As a result of aggressively accepting out-of-house waste, thevolumeofwaste/by-products
accepted
andThermal recycling（reuse as fuel tomanufacture cement）

processed/treated in FY2006 amounted to 993,000 tons on
the overall, which was a 10,000 ton increase over FY05.

Steam

Reclaimed oil
Waste oilRaw materials
for iron

SilicaClay

Limestone

Progress of waste/by-products volume accepted
Foundrysand

SlagCoal ashIncineration ash

New Suspension
Preheater

The major characteristic of the cement recycling system isthat all input waste is output as cement, and that there are

Clinker
CoolerRotaryRotar y kiln

Thermal recycling（reuse as fuel tomanufacture cement）

Clinker
Finishing millSociety

Dryer/
grinder of raw
materials

CycloneCement Silo

1,000
800
600
400

Societyno secondary waste generated. It can be said that the waste
recycling system is an ideal one.

Biomass boiler
Wood chip,
waste plastic, etc.

TurbineExhaust heat boiler

effectively utilize some of the massively output industrial
waste and by-products as some raw materials and fuel.

Electric cyclone

Volume accepted (1,000 tons)

fossil fuel at the cement plant. However, it is possible toMaterial recycling（reused as materials
for cement)

Waste/By-products volume accepted200

GypsumElectric cyclone

・Sewage sludge
・Waste tire・Waste plastic

Thermal recycling（reuse as fuel tomanufacture cement）

as well as 29,000 tons
8,000 tons of sewage
sludge, waste plastic,
Cement Kiln

waste tire, reclaimed
oil, etc.
Waste Tire Processing Facility

Recycling Efforts
Efficacy of Cement Recycling Systemused as raw materials and fuel to manufacture cement.
In FY2006, DENKA's cement production amounted to

As mentioned earlier, the cement plant at Omi Plant recycles
various industrial waste. Therefore, the final waste disposalroughly 2,460,000 tons. Of this, roughly 260,000 tons of by-(buried volume disposed) has been reduced and thus,
contribute to reducing the environmental load. The plant also

products from within the plant were used as alternative raw
materials. Today, this has become the business foundationneighboring local autonomous bodies. As a result, it can be said
that the entity has grown into an indispensable presence inrecycled. In terms of external industry waste there wascreating a recycling/reusing society in the Hokuriku district.
The plant also contributes to global environmental conservationfrom the blast-furnace of iron manufacturing company,
53,000 tons of foundry sand generated at the founding plant,

16

DENKA CSR Report 2007

9900

Out-of-House●Cement is used concreats structures suchas highways, tunnels, dams, etc.

01

02

04

05 06
（FY）

Sewage Sludge Accepting Facilities

Breakdown of volume accepted

Implementations in FY2003 included a biomass boiler
power generator, and in FY05 a kiln accepting facility for

Waste and by-products from sludge, incineration ash, slag andother alternative raw materials was 90% or higher for the overall.

waste plastic, etc. In 2006, a facility to accept dewateredsewage sludge was completed to start accepting sewage

The waste and by-products from alternative fuel was approximately
5%. This trend is almost the same as that marked in FY2005.

sludge generated upon the neighboring local government's
sewage sludge plant. Future plans include the discussion to

What's more, we also continued to process and treat meat-andbone-meal sewage sludge, incineration ash, etc. at the request of

newly accept sewage sludge from other local governments

the government.

in hope to create a circulator society and contribute to
global environmental conservation.

Ratio of volume processed / treated by type（FY06）
Waste oil,waste plastic,
wood chip, etc.: 5%

Others: 13%

Sludge: 27%

VolumeAccepted:
993,000 tons
Slag: 24%with focus on alleviating global warming. This is done byrecycling wood scrap, waste plastic and alternative fuel waste,
which thereby reduces the crude unit of fossil fuel used.

03

In-house

accepts sewage sludge and waste carbide at the request offor the Omi Plant to smoothly operate as a chemical plant.
A grand total of 733,000 tons of industrial waste was
280,000 tons of coal ash from the coal fired power plant of
the electric power company, 140,000 tons of slug generated

98

Incineration ash:
31%
Warehouse to accept sewage sludge

DENKA CSR Report 200717

Company Overview

At the cement plant of Omi Plant, all by-products generated
in the plant and industrial waste from outside the plant are0

Material recycling(reused as materials for cement)

Environmentof wood scrap/chips,

By-product gypsum

Economyensure a society that promotes recycling and reusing of

DENKA Cement Recycling System
Flow of Waste/By-product AcceptanceSociety

DENKA CSR REPORT 2007

Environmental Consideration in Products and Technologies

Thermal management products【Electronic Products Dept.】

Fused silica contributes to less use of halogen and lead【Functional Ceramics Dept.】

DENKA's thermal management products are made from a combination oforganic and inorganic materials.

DENKA's fused silica is used as fillers for epoxy molding compounds

Product-making is promoted by effectively utilizing the properties of them.

conventional crushed fillers to spherical fillers. Recently the market

DENKA's PCB and heat-sink meet with wide range fields of commercial
devices, industrial devices and automotive devices.

requests to reduce use of substances that burden on the environment

These products contribute to product design on environmental friendlinesssuch as making more compact and lightwight equipment, promoting

demand, DENKA has been developing high flowable spherical silica

used for semiconductor packages. The product has shifted fromenergy saving specifications, reducing emission of marming gas, etc.

fillers by our exclusive technology, contributing to making new types

Thermally conductive sheet/spacer and other thermal interface materials
are used as radiation/insulation materials for various electronic parts andof molding compounds that are environmentfriendly.
DENKA AN Plate and DENKA ALSINK

contribute to downsizing and weight saving.

Society

DENKA HITT Plate(High Thermally Conductive Metal Substrate)

Spherical fused silica photographed under electron microscope

Purpose/Properties

Characteristics
Energy Saving

Energy saving power control parts for air conditioners
Contributed to improving fuel economy for automobile power steering systems.

Compact/Lightweight

Compact and lightweight with high density mounting of electronic parts.

DENKA AN Plate (High Thermally Conductive Aluminum Nitride Ceramic Substrate) Energy Saving

Lineup of products to make up for shortcomings of concrete【Special Cement Additives Div.】

Society

Product

Economysuch as halogen-base flame retardants and lead. To meet thisEnergy saving for industrial, railway and HEV power control parts.

DENKA ALSINK (Metal Matrix Composite
formed with aluminum and silicon carbide)

Energy Saving

Energy saving for industrial and railway power control parts

Reduce emission level of warming gas

Module to recover energy generated by wind power generation

Thermally Conductive Sheet, Thermally Conductive Spacer, Elethermal

Compact/LightweightContribute to compact and lightweight specifications using high density mounting electronic parts

DENKA's special cement additives are acknowledged as materials to make up for the defects of concrete. The materials aredesigned according to the following keywords: higher durability, lower environmental load, energy saving, and safety.
Special cement additive technologies and products contribute to build the "foundation of modern cities", "infrastructure oftransportation system", and make "comfort in daily living".

■ Product Lineup
Turpentine and paraffin-base thermoplastic waxes are used as temporary
fixing adhesives to ensure high precision processing of optical elements■Comparing the Sawing Process of "Wax" and "Temploc"
Optical glass
Wax

following results:

Optical glass

Substrate① Hardens and sets by short UV exposure at room temperature.

since it hardens/sets in short time without using heat, and it can reduce
the washing process greatly.

Hot Plate
CrystalCrystalGlasssubstrate
Organic
solvent

Cut andpolishprocess

18

DENKA CSR Report 2007

NATMIC, HIGHPRETASCONSupercement, Cosmic,
F-dak◇Quick Hardening, Quick Setting and Quick demoulding Agent

Thin/Lightweight(Resource Saving)

SUQCEM
Σ2000, Σ80N

UV lampGlass
substrate

Peel-off
Hot water

Film-state

Reduce Output ofEnvironmental load
Substance

ES◇Super High-Strength Fiber Reinforced Concrete
The thickness of the materials can be made thin to the ultimate limit(thin and lightweight materials/parts) due to high compressive
strength and because there is no need for reinforcing bar.

◇Quick Setting Materials for Soil Stabilization
Alleviate elution of hexavalent chromium(Cr+6)by stabilizing it.

The water used to wash ready-mixed concrete doesn' t have to bechanged in property upon reuse by using it.

◇Acrylic based adhesives
SafetyProduct

The construction period is shortened and the total cost is reduced asa result of using quick hardening, setting and demoulding agent. Fuelfor curing is also reduced.

◇Water Refreshing Agent for Ready-mixed Concrete
Darlex recovery

Wash"Temploc" can be used to sawing, slicing and polishing. Furthermore, thepurpose has been broadening for temporary use to protect the surface, as
well as prevent burring upon grinding and cutting.

Energy Saving,
Resource Saving

Reduce CO2 emission by reducing volume of cement used.

Company Overview

The characteristics of this temporary fixing adhesive is that it is not only
environment-friendly, but that it also greatly contributes to reducing cost

◇Strength Enhancing Additives

Substrateelements, and the process also becomes energy saving.
② Environment-friendly since there are no organic solvents used.

Scope

Σ2000
ΣPC

Temploc

Temporary
FixingSince there is no need for heating, it minimizes damages to the③ Peel-off in film-form, therefore, there is no glue residue and lessneed for washing.

Product

Energy Saving

Temploc

Wax

for lenses and prisms and various ceramic elements.
"Temploc" temporary fixing adhesive developed by DENKA provides theCategory

Environment"Temploc" Eco-Friendly temporary fixing adhesives【Electronic Products Dept.】

HARDLOCⅡ① Don't contain carcinogenic substances.
② Minimal environmental load with no generating toxic gas during combustion.
③ Minimal irritation during handle it.

DENKA CSR Report 200719

Society

DENKA CSR REPORT 2007

Environmental Consideration in Products and Technologies

Contribute to environment-friendly agriculture that conserves the environment
with multifunctional fertilizers and agricultural chemicals.【Fertilizer Div.】
Major products we supply include calcium cyanamide, a nitrogen fertilizer that isenvironmentally friendly yet is as effective as agricultural chemicals; calcium cyanamide, a■ Anti-exposure fire resistant rubber products

fields; Azumin, a humic acid magnesia fertilizer designated under the Soil Improvement Law as
containing roughly 50% humic acid - a major constituent of compost, among others; as well as

which cables and pipes are setup.
CRK supply fire-resistant rubber by effectively applying thermal expansion properties of fire-resistant fillers. What's more, there arealso new applications for this including substitute of asbestos. DENKA's original fire resistant sponges can be recycled and is therefore,

multifunctional environmentally friendly materials, such as a new type of silicate fertilizer
Toretaro and HIT-alpha (liquid cyanamide chemicals), which is a stabilized agricultural chemical

EconomyBuildings and housing complexes require measures to prevent fire from spreading. As a result, cables and piping through the building
layout are required to be prevented from being exposed to fire. Fire resistant fillers are also used to fill the gaps between the spaces inphosphate fertilizer suited to comprehensive soil improvement in rice paddies, orchards, andmaterials that are extremely environmentally-friendly.

made by extracting cyanamide - one of the effective components of calcium cyanamide among
others, thus contributing to the revitalization of agriculture and improving productivity.

Contribute to daily living with various rubber products【CRK Corporation】

Farm Fields Using Calcium Cyanamide■ Water cut-off rubber productsSociety

DENKA Polymer observes the revisions of the "Containers and Packaging Recycling Law". Efforts are undertaken by trying to reduce
disposal and generation of these types of waste. As a result, the policy defined was to researched and developted lightweight andpolluted water from soaking underground, but also prevent undergroundwater from entering.
Example of using fire-resistant rubber toprevent conflagration

durable packing materials that meet society's needs. In accordance with this policy, we have made containers lighter in weight withhigh foaming and thinning technologies, and thereby reduce waste.
Various materials are also constantly researched and developted to reduce environmental load, as well.

R&D with Consideration to Environment
1. Reduce Waste

2. Reduce Environmental Load
Development on low fuel calorie containers that don't generate toxic gas
Reduce environmental load through LCA base using lighter weight products

Provides waste water treatment and air pollution preventing environmental
devices【DENKA Consultant & Engineering Co., Ltd.】DENKA Construct & Engineering provides industrial waste water treatment, air pollution and other environmental devices to the industry.

■ BIO-DYNACTOR
Three-phase fluidized bed-style biological treatment systems
An innovative wastewater treatment system that utilizes the organic■ Developmental Example"OPC- R" (OPS Container)① The rib design and the overall design was reviewed for conventional "OPC" to satisfy both lightweightand strength. As a result, the weight is lighter by 12%.
② We developed a transparent food tray that is the lightest in the industry for fresh fish, fresh meat, readymade dishes, etc.
"SOFLIGHT" (OPS Container)① Soft and crack-resistant OPS sheet was formed for the body and cover of the container, to makecontainers roughly 40% lighter than A-PET containers.
② This is easier to fit than OPS and yields 30℃ higher heat-resistance compared to A-PET.

of bio-immobilized carriers and three-phase fluidized bed-style methods.
Performs 5 to 10 times better than conventional activated sludge processes.

■ LONG LIFE, BIO-AC
Biological activated carbon adsorption systems
An innovative adsorption system that does not require heat regeneration,and uses the excellent physical adsorptivity of activated carbon directly, in
addition to using bio-activated carbon recycling. It is a relatively simple
mechanism that delivers the solution to an activated carbon adsorption
column through a bio-incubator.

■ BIO-DEOR
Biological deodorizing systems
An innovative bio-deodorizing system developed through research on bioimmobilized carriers. High-performance, low-cost. Ideal for removal of odorous
substances such as hydrogen sulfide, ammonium, and methyl mercaptan.

20

DENKA CSR Report 2007

BIO-DYNACTOR

Company Overview"QX-R" (Super Light PSP Food Tray)① These are foamed polystyrene (PSP) food containers that are 20% lighter than conventional DENKA products.
② We prevented drop in strength through research and development and improvement of the processing
procedures from raw materials to the processing stages, in cooperation with the parent company
DENKA.
③ We contribute to reducing waste with lighter containers.

decomposing ability of microorganisms based on the fundamental technologies

Environment

Development on thin containers by improving molding technology
Development on lighter PSP food trays with high foaming technology
Shifting to lower specific gravity materials such as OPS (biaxially-oriented polystyrene), etc.

Society

Reduce waste with lighter containers【DENKA Polymer Co., Ltd.】

Butyl-base adhesive tape and water expanding rubber products are used to
cut-off water in U-shape gutters, sewages, tunnels, etc. It not only prevent

LONG LIFE, BIO-AC

BIO-DEOR

DENKA CSR Report 200721

Environment

DENKA CSR REPORT 2007

Responsible Care

Mid-Term Environment Plan

FY2006 Environmental Load Summary

The Second Mid-Term Environmental Plan was created as a 3 year plan from FY2005, backed by the FY04 results. The major themes are topromote energy conservation, reduce discharge of chemical substances, and reduce waste. In FY06, the goals to conserve energy and reduce

Input

OutputBusiness activity

Economywaste were attained. However, the goal to reduce discharge of chemical substances remained unattained due to delay in shifting raw materials.

The major statistics of environmental load for all plants and research laboratories marked in FY2006 are indicated below.

The goal for FY07 is to completely shift the raw materials, as well as seek to attain the statistical goal to reduce discharge of chemical substances.

Mid-Term Environment Plan
FY2005Item
Promotion of Energy Saving

Energy Consumption rate (compared to 1990)

Reduce discharge of chemical substances PRTR emissions
Final waste disposal

Reduce waste

Fuel

Secondary Plan
FY2006

products

552,000 kL

FY2007

Results

TargetResults

Target91.0 %

91.9%

90.4%

89.1%

233 tons

174 tons

221 tons

163 tons

4,920 tons

4,160 tons

3,600 tons

3,780 tons

Plants of DENKA
Air emission

Electricity
1.44 billion kWh

CO（Energy
2Origin）
NOｘ
SOx
soot and dust
PRTR SubstancesSociety

Environment

Water
86.8 million tons

Management System

1,710,000 tons
5,650 tons
2,080 tons
121 tons
174 tons

Total Electricity Use
1.82 billion kWh■ ISO14001

Water Discharged

Endeavor continued to abide by legislation, sustain the environment and promote sustainable improvement. A PDCA Cycle is promoted to plan, execute,evaluate and improve business according to the Environmental Management System (ISO14001). All in-house plants have been ISO14001 certified.

COD（BOD）
PRTR Substances

Out-of-House Waste
733,000 tons

1,670 tons
47 tons■ ISO9001
Appropriate product design takes place to buy/sell raw materials, manufacture items, inspect and establish the best handing over system. It is

Volume of Waste Generated
Raw materials（Volume Reduced: 13,600 tons）

PDCA cycle is promoted according to the Quality Management Systems (ISO9001). Almost all in-house products are ISO9001 certified.

ISO9001

ISO14001
Year/
Registration/
Registration/
Year/
Month Acquired Certification Number Month Acquired Certification Number
187071 A BVQI

August 19, 1994

Omuta Plant

December 28, 2000

143162 BVQI

Chiba Plant

May 31, 1999

180943 BVQIMarch 22, 1995

343593 BVQI

ShibukawaPlant

May 21, 2001

156003 BVQI

December 23, 1996

170106 BVQI

Ofuna Plant

November 9,2001

JQA-EM1895 JQA

December 25, 1996

JQA-1429 JQA

Product Acquired

Out of house effective recycle use
6,200 tons

In-house effective recycle use
96,700 tons

148577 BVQI
170090 BVQI

Final waste disposal (Buried)
3,600 tons

Explanation on input

Explanation on output

Fuel is summation of various fuels
used at each plant which areconverted to heavy oil by calories(Including fuel used for in-housethermoelectric power plants).

● Energy originated CO2 emission is the total of emission generated from fuel andelectricity purchased. In addition is 1,530,000 tons of non-energy origin CO2 emission.
● COD is computed as an equivalent to BOD that is discharged to the river.
● External waste recycling is used externally as items converted into
usable resources and fuel.
● Final waste disposal refers to the total of internal and external waste buried.
● The volume was reduced through dewatering, incineration, etc.

155948 BVQI

■GMP＊（Good Manufacturing Practice）
This is the standards to manage manufacture and quality of pharmaceuticals. Among DENKA's products, "SUVENYL", a

The following affiliates located in the following plants are within scope of this environmental load data.

pharmaceutical of Hyaluronic acid, is applicable to the standards.

Affiliates＊GMP: This is the standards defined by law to manufacture pharmaceuticals and quasi-drugs, as well as quality management standards. It also identifies the items to strictly observe and manage upon manufacture tosupply safe and high quality pharmaceuticals and medical equipment.

22

DENKA CSR Report 2007

Omi Plant

・Denal Silane ・Denak ・Juzen Chemical

Chiba Plant

・Chiba Styrene Monomer ・TOYO Styrene ・Taiyo PVC

DENKA CSR Report 2007

23

Company Overview

Omi Plant

October 16, 1999

Central Research July 5, 2004
Laboratory

120,000 tons

Environment

also vital to sustain measures, as well as continuously improve sustainable measures. Plan, execution of plan, evaluation and improvement

Environment

DENKA CSR REPORT 2007

Overview of RC Activities
DENKA highly considers "Environmental Conservation", "Product Safety", "Labor Safety and Hygiene" and "Prevantion
Disaster/Accident" to the environment, security and safety.
The FY2006 targets and results are indicated below.

Details of measures and final fiscal targets

FY2006
Targets

Related
Judgment page

Overview of execution results

Review plan every 3 years

Attain Environmental Load Target

The Second Mid-Term Environmental Plan is currently undertaken with FY2005 as the first fiscal year. Though
we failed to reach the target PRTR emission volume. we did successfully reduce waste and save energy.

△

P22

Environmental
Conservation

Promote to prevent global warming
and energy saving

The target is to reduce the Energy Consumption rate of FY2010 to 90%
and below of FY1990

Energy Consumption rate: 91.9%

Energy Consumption rate 90.4%
The efficiency has been improved at major plants. As a result, the Energy Consumption rate amounted to 90.4%of the rate over FY1990. This means we attained a 91.9% mark compared to FY1990, which was the goal for
FY2006. The energy origin CO2 emissions amounted to 1,710,000 tons/year, which was a 4% drop from FY05.

○

P26-28Prevent air and water pollution

Second Mid-Term Environmental PlanNOx
: 5,730 tons
SOx
: 2,290 tonssoot and dust : 150 tons
COD (BOD) : 1,290 tons

NOx
: 5,650 tons
SOx
: 2,080 tonssoot and dust : 121 tons
COD (BOD) : 1,670 tons
The level of COD (BOD) worsened with increase in production of some products.

△

P29

The level of waste generated amounted to 12,000 tons, which was a 4,000
tons reduction over FY2005.

○

P30

Reduce Waste (Zero Emission)

By promoting recycling of fuel in the cement plant, we surpassed theplanned value of 102,900 tons.

○

P16-17

Reduce Final waste disposal (3,000 tons or less in 2010)

Final waste disposal: 4,160 tons
and below

By improving yield, recycling in-house raw materials, and use for soil
improvement, we marked 3,600 tons and thus, reached the target.

○

P30

By 2010, boost the waste/by-product usage level (cement unit) ofper ton cement up to 400kg and contribute to establish acirculatory system in society.

Further boost level from FY2005
cement unit (389kg/ton) level

Crude cement unit 404 kg/ton
In FY2006 we started to newly accept sewage sludge generated from neighboring local autonomous
bodies. The total use of waste-by-products thereby increased 10,000 tons over FY05.

○

P16-17

Appropriate measures for chemical
substances management

Measures for GHS＊1〈(amended Industrial Safety and Health Law/2006)〉
RoHS＊2 (EU/2006) measures

Keep product safety records for all products
and thoroughly manage minute content
ingredients contained in the products

Currently promoted at all plants and research center.

○

P31

Appropriately control chemical
substances and reduce
emission/transfer

Emission of PRTR substances volume of 152 tons or less (FY2007)

Emission of PRTR substances
volume of 174 tons and below

The target is to enforce tank airing measures for volatile raw materials. It is also important to strengthen management of
combustion facilities and waste water microorganism treatment facilities. By doing so the level was reduced approximately 5% over
FY2005 (233 tons ⇒221 tons). However, we were not successful to attain the target due to delay in converting raw materials.

△

P30

Secure transport-related safety

Fulfill the collateral responsibility for safe transport of goods, as
the owner of goods shipped

Zero Self-Responsible Logistics Accident
Thoroughly practice the action index for safety
transport as the owner of goods shipped

We reviewed the yellow card system, and container yellow card (label) system. We also
promoted re-education programs. Effort also focused on understanding the current state,analyzing the actual situation and enforcing corrective measures to ensure safe transport.

○

P31

Labor Safety
and Hygiene

Eradicate labor accidents with Education and Safety Management
SystemEliminate unsafe activities
identified by risk management

Work Accident: DENKA : 4 cases (5 cases) directly under DENKA operations. Frequency Rate: 0.756 (0.911)
Affiliate companies : 4 cases (5 cases).
Frequency Rate: 0.673 (1.005)

×P32

Promote comfortable work environment and re-energize communications

Sustain normal business environment (concentration)

Normal environment was sustained through environment measurement activities and individual exposure measurement results.

○

P32

Eradication of labor accidents

Promotion of Employee Health Management

Company Overview

In-house/Out-of-House Resource
Recycling Level: 101,000 tons and above※Data in the parenthesis ( ) reflect FY2005 results.

Preservation
Disaster/Accident

Zero occurrence of Major Accidents

Refine system for preliminary safety assessment/evaluation
Sustain Safety Standards

There were no major accidents. However, there were incidents of minor trouble due to change in operating conditions.
Thus, we believe there is a need to further strengthen management system when any modifications are enforced.

○

P33

Communication
Relations

Maintain a relationship of respectwith the communities

Participate in local activities

Tours around the plant are offered at each plant. We also participate in local
volunteer activities, etc. to maintain good exchange with the communities.

○

P12-14＊1 GHS: This is a short for "Globally Harmonized System (GHS) for Classification and Labeling of Chemicals". It categorizes and labels toxic chemical substances to provide information on the Material Safety Data Sheet(MSDS), as a world uniform standardized system.
＊2 RoHS: This is a regulation on specific toxic substances enforced by the EU (European Union) on July 1, 2006. It stands for "Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment" and restricts specifichazardous substances from being contained in electric and electronic equipment. There are 6 substances regulated including heavy metals like lead, cadmium, hexavalent chromium, and mercury, and bromide flame retardants (PBB, PBDE).

24

DENKA CSR Report 2007

DENKA CSR Report 2007

Environment

Promote recycling of resources

Effective Utilization of Resources

Product Safety

Suppress and reduce generation

Society

Execution of Second Mid-Term
Environmental Plan (FY2005〜FY2007)

Environment

Middle-Term
Environment Plan

EconomyMajor Item

Judgment ○: Target Attained, △: Target Partially Unattained, ×: Target Unattained25

Environment

DENKA CSR REPORT 2007

Environmental Conservation

Measures to Prevent Global
Warming

CO2 Emission＊3(Energy origin CO2 according to "Concerning the Rational Use of Energy )Energy saving and measuresconcerning transport

Energy Saving Measures
DENKA has 5 plants designated as a "Type1 designated

The goal is to ensure sustainable transport efficiency andemission operations (higher than 3000 tons/year) according toenergy management factory". The Committee to Promoteenergy saving measures. To do this, a Logistics Projectemission level by 6% during the first promised period"The Promotion of Measures to Tackle Global Warming＊4

Energy Saving at each plant and research center isTeam was organized to enforce company-wide activities.

(2008 to 2012). As a result, the chemical productenforced on April 1, 2006. Thus, measures are being enforced

aggressively promoting energy saving activities.

Up to now, the target was to ensure safety and stableindustry introduced numerous self action plan toto lower the emission level and attain the goals set according to

In FY2006, the company-wide crude energy unit was

results, by observing the rules, regulations and legislation.

enforce the following target, in hope to promote energy

the Mid-Term Environment Plan.

improved to 90.4% (99.3% the previous year) compared

Effort was sustained in actualizing highly efficient transportsaving activities.

Effort will focus on improving the crude energy unit of eachto the level in FY1990, as a result of improving cement,by pursuing optimal logistics and shifting toward logistics

DENKA also participated in the same plan in promoting

manufacturing plant. This will be done by switching the fuel for

chloroprene and other substance efficiency at majorthat was environment-friendly. This in specific includes

energy saving activities toward the target. Measures

self-generated thermoelectric power from heavy oils to natural

production plants.

wholesale from several locations and transport of products

included clean energy use, etc. to reduce CO 2

gas, as well as increase the rate of waste used for cement fuelFuture efforts will include implementation of highof different cargo appearance. This has improved loading

emissions.

(waste plastic, etc.) to reduce the CO2 emissions.

efficiency equipment such as the high efficiency gas

efficiency.

The energy origin CO2 emissions amounted to 1.71 million

turbine cogeneration facility. We will also improve work

A 3-axis trailer was also actively implemented meeting

tons/year. This was roughly 4% less than FY2005. The non-efficiency by correcting the manufacturing process.

deregulation in 2003. Transport trucks were also increased

energy origin CO2 emissions (using waste and raw materials)

Through these measures and more, we seek to attain thein size. Modal shift was also promoted toward RO-RO

maintained a sideways trend over FY05.

goal of reducing the crude energy unit to 90% andvessels* and 20 ton trailers. Neighboring local ports were

below compared to FY1990, by FY 2010.

also effectively utilized to import/export foreign cargo

Target
The target is to reduce the Energy Consumption
rate of FY2010 to 90% and below of FY1990.

"

To save energy related to transport, we organized acontainers.
Progress of CO2 Emissions

logistics rationalization project team. This team then

Secretariat:
Electric Power Dept.

Plant and research
center department,
branches andaffiliates.※(Logistics Project Team)(Transport Sector)

The scope of affiliates indicated here include Denka Kako, Denka Azumin,
Kyushu Plastic Kogyo.

1.30 1.29
1.19

1.20

1.20 1.20

1.00

1.00

0.99

1.18

1.15 1.17
1.06

1,500

1,000

Management inenergy saving of
the transportation

amounted to roughly 50,000 tons (Volume of total cargo
1.37

1.40

1.09
1.04

0.96 0.97 0.98 0.96 0.98 0.97 0.96

0.92 0.94 0.91 0.90

transport = 864 million ton・km). DENKA practices
sustainable energy saving as a specific cargo handler, in

1.20

accordance with the revision in the concerning the
Rational Use of Energy enforced in April 2006.

0.89

0.80
0.60

500
0.40

0

Company Overview※）

In FY06, the total emission of CO 2 through transport

0.20
90

00

01

Energy Origin

02

03

04

05

06

07
（FY）

Non-Energy Origin＊5

From 2004, we added CO2 emission from non-energy origins.

027.5 ton capacity cement lorry truck

90 95 96 97 98 99 00 01 02 03 04 05 06 07（FY）
Production

Energy Unit

(FY90 as 1)＊1 Kyoto Protocol: This is the agreement endorsed by the 3rd Conference of the parties of the UNFCCC (3rd Conference of the Parties of the UNFCCC) held in Kyoto in 1997. This protocol defines the statistical goals,
deadline and methodologies in reducing greenhouse gases.
＊2 Greenhouse Gases: These include secondary CO2, methane, nitrous oxide, hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6) that stay in the atmosphere to create a greenhouse effectthat keeps the heat from the sun in the earth's atmosphere. The name Greenhouse Gases is the general term used to call these gases that warm the earth's surface (greenhouse effect). Recent human activity has
increased the concentration of greenhouse gases, thus, causing warming on a global scale.
＊3 Concerning the Rational Use of Energy: This is the law enforced to rationalize energy use.
＊4 The Promotion of Measures to Tackle Global Warming: This incorporates the clause to define the "Plant to Attain Kyoto Protocol Goals" that was revised and distributed in June 2002.
＊5 Non-Energy origin CO2: This CO2 is generated during the production process upon processing and/or treating raw materials and waste.

26

DENKA CSR Report 2007

Environment（

Energy saving promoting
committee of plant

2,000

TargetEnergy Saving
Subcommittee

Progress of Crude Energy Unit（compared to FY90）
TargetTargetpursuing suitable logistics.

Emission (1000 tons)

enforced measures to boost transport efficiency bySociety

A total of 5 DENKA plants applied as specific greenhouse gas

2005. The target was to reduce the greenhouse gas＊2

EconomyEnvironment

The Kyoto Protocol＊1 was agreed upon on February 16,＊RO-RO Vessel: This cargo ship comes with a ramp like a ferry boat to load trailers and vehicles. It
also has a vehicle deck to park trailers and other vehicles. The other unique structure of thiscargo ship is that it is designed for mobile load/unload operations.

27 tons capacity flat body truck

DENKA CSR Report 200727

Environment

DENKA CSR REPORT 2007

Environmental Conservation

Hydroelectricity as a clean energy source

Power source of electricity

Air and Water Environment

DENKA operates with power from 5 different channels■NOx＊1■ Soot and Dust＊3

DENKA owns 10 hydroelectric power generation

including the company's hydroelectric power plants,

In FY2006 the volume of cement production increased,

In FY2006 we sustained a good state and further

facilities, and 5 semi-private hydroelectric power

thermal power plants (3 stations), a natural gas

however, we successfully suppressed the NOx

improved the results. We will exert effort in managing

generation facilities which are jointly owned with thecogeneration ＊1 facility, and a exhaust heat power

emissions to that of FY05 by taking effective NOxfacilities to continue to maintain the soot and dust

Hokuriku Power Company. As a result, the total power

generation＊2 facility, as well as electricity purchased

reduction measures.

emissions at this rate in FY07.

generation capacity amounts to 110,000kW.

from power companies.

These hydroelectric power generation facilities cover

The total volume of use in FY2006 amounted to 1.82

36% of the power consumed (equivalent to 160,000kL

billion kWh.

of crude oil) by DENKA. It also greatly contributes to

The power ratio in FY06 was as follows. The total use

reducing CO 2 emissions since it is a clean energyof clean energy such as hydroelectric power, natural

source that doesn't generate greenhouse gases.

gas, exhaust heat power amounted to roughly 46%.

5,000
4,000

gas. Upon doing so, a new gas turbine cogeneration

3,000

facility using natural gas was implemented. The overall

2,000

goal is to improve the rate of clean energy use.

1,000
0

Power source of electricity（FY06）

0
90

00

01

02

03

04

05

06

07

90

00

01

02

03

04

05

06

In-house power
generation capacity(total): 57%

Total usage level:
1.82 billion kWh

Kitaotari

It was possible to drastically reduce the SOx emissions

In FY2006, the production volume at the Omi plantby switching fuel from heavy oils to natural gas withincreased, thus, the load of waste water increased. In

lower sulfur contents. Effort will continue to sustain the

FY07, effort will continue to reduce COD(BOD)

same volume in FY2007.

through various construction and policy measures.

Progress of SOx emissions

Progress of COD (BOD) discharges

5,000

4,000

Target

3,000

3,000

2,000

2,000
1,000

1,000
0

90

00

01

02

03

04

05

06

07
（FY）

Oami Power Plant＊1 Cogeneration: power generation facility using exhaust heat from industrial furnaces, etc.
＊2 Exhaust Heat Power Generation: power generation facility using exhaust heat from industrial furnaces, etc.

28

DENKA CSR Report 2007

Cogeneration facility

Company Overview

Target4,000

Emission Level (tons)

Natural Gas generation:
7%
Exhaust Heat Power
Generation: 3%■ COD＊4 (BOD＊5 )Emission Level (tons)

Thermal Powergeneration:11%

HydroelectricPower generation:
36%■SOx＊2

Environment

Hiraiwa

07
（FY）

（FY）

Electricity purchased:
43%

9 Umigawa Power Plant No.3 (2,600kw)
10 Umigawa Power Plant No.4 (900kw)
11 Himekawa Power Plant No. 6 (semi-private use = 26,000kw)
12 Takigami Power Plant(semi-private use = 15,000kw)
13 Nagatsuga Power Plant(semi-private use = 5,000kw)
14 Sasakura Power Plant No.2 (semi-private use = 10,200kw)
15 Kita-otari Power Plant(semi-private use = 10,500kw)

200

100

Kotaki

1 Omigawa Power Plant(3,300kw)
2 Kotakigawa Power Plant(4,200kw)
3 Oami Power Plant(24,500kw)
4 Otokorogawa Power Plant (8,400kw)
5 Yokokawa Power Plant No.1 (10,000kw)
6 Yokokawa Power Plant No.2 (16,000kw)
7 Umigawa Power Plant No.1 (3,800kw)
8 Umigawa Power Plant No.2 (4,400kw)

300

Society

Nechi

6,000

400

TargetKubiki-ono

7,000

Emission Level (tons)

Oyashirazu

HimekawaRiverthermoelectric power plant from heavy oils to natural

Progress of Soot and Dust emissions
TargetEnvironment

Omigawa
River Omi

Kajiyashiki
Umigawa Hayakawa River
River

Emission Level (tons)

The goal is to further shift the fuel source of the
Itoigawa

Progress of NOx emissions

EconomyAlong the Himekawa River area in Niigata Prefecture,

0

90

00

01

02

03

04

05

06

07
（FY）

＊1 NOx: This is the general term for nitrogen oxides. It is a substance that causes petrochemical oxidants. It is also the cause of acid rain.
＊2 SOx: This is the general term for sulfur oxides. It is emitted when burning fossil fuels like petroleum and coal, as well as hydrosulfide minerals like pyrite and chalcopyrite. It is also the cause of acid rain, along with NOx.
＊3 Soot and Dust: It refers to the solid particle substances remaining from soot and dust.
＊4 COD: This stands for Chemical Oxygen Demand. It is commonly used to indirectly measure the amount of organic compounds in water. It indicates the mass of oxygen consumed when organic compounds aredecomposed with oxidants. COD is a measure to determine the amount of organic pollutants found in the ocean, lakes and rivers.
＊5 BOD: This stands for Biochemical Oxygen Demand. It is a measure to determine the amount of oxygen consumed in decomposition, by microorganism, of organics contained in water and is an indication for the quality of the water.

DENKA CSR Report 200729

Environment

DENKA CSR REPORT 2007

Environmental Conservation

DENKA CSR REPORT 2007

Product Safety
DENKA observes various legislation throughout the entire workflow from raw materials procurement, R&D, manufacture, logistics, consumption and

PRTR＊1

Final Waste Disposal

Environment

abolishment. DENKA also set self-standards and closely observes them, as well as operate and audit numerous management systems. This and more takes effect(Pollutant Release and Transfer Register)

to alleviate the product's effect on the environment, as well as ensure work safety. These measures are also constantly reviewed and updated for betterment.

In FY2006, DENKA aimed to reduce 5% by airing measure of■ Flowchart of Material Safety and Management

tons. This was roughly a 4,000 tons drop over FY05.

the tanks containing volatile raw materials, and strengthening

The level of final waste disposal was 3,600 tons which

management of the microorganism treatment facilities of waste

ISO14001, ISO9001, GMP
Environment and quality management support for affiliates

Product Safety Records

was a 1,320 tons drop over FY05 as a result of various

water and incineration facilities. However, the goal remained③Manufacture⑥ Product

measures. As a result, the emission ratio of DENKA in

unattained due to delay in scheduled shifting raw materials.

FY06 became 3% which was one point improvement.

In FY07, effort will continue to reduce toluene, etc. by shifting

The target for FY07 seeks for zero emission by

raw materials. The goal is set at 163 tons which is roughly a

improving both internal and external recycling rate of

Audit of contracted manufacturers⑧ Customers⑤ Abolish

1,000
800
600
400
200
0

Progress of Final Waste Disposal

97 98 99 00 01 02 03 04 05

06

07

（FY）

Emission and transfer volume by substances
PRTR Substance
Ethyl Acrylate
Acrylonitrile
Adipic Acid bis (2-Ethyl Hexyl)

20

Acetaldehyde
AnilineEthyl benzene
Ethylene Glycol
XyleneVinyl Acetate
Dimethyl Formamide

90 95 96 97 98 99 00 01 02 03 04 05 06 07（FY）

StyreneWater Soluble Copper Salt
Trichloroethylene
Secondary Carbon Sulfide
Hydroquinone
Butadiene
Phthalic Acid bis (2-Ethyl Hexyl)
Hydrogen Fluoride
BenzeneBoron and Boron Compounds
Methacrylic Acid 2-Ethyl Hexyl
Methyl Methacrylate (MMA)
Total (tons)
Dioxins＊2（mg-TEQ）

1
7
0
3
0
13
0
0
26
0
41
0
1
68
0
0
10
0
1
1
0
0
3
174
367

Water

Transfer
Soil Buried Total volume

0
0
0
1
0
0
0
0
7
23
0
0
0
0
1
16
0
0
19
0
0
0
0
0
3
0
0
0
13
35
13
0
0
13
6
0
0
0
0
1
2
0
0
28
0
0
0
0
0
24
0
0
0
41
72
3
0
0
3
7
0
0
0
1
0
1
0
0
69
73
1
0
0
1
0
1
0
0
1
0
0
0
0
10
0
0
0
0
0
1
0
0
0
1
17
0
0
0
1
0
11
0
0
11
7
0
0
0
0
1
0
0
0
3
19
47
0
0 221 292
24
0
0 391
1
Unit: tons (excluding dioxins)＊1 PRTR: This is the framework to statistically assess, analyze and disclose data on various hazardous chemical substances in terms of where they originated and how much was discharged in the environment, as well as
how much was contained in the waste that was transported out of the plant and research laboratory.
＊2 Dioxins: This is the common name for organic chlorinated compounds that are classified as polychlorinated dibenzodioxins (PCDDs). It may be expressed as dioxins and is used to generally call toxic substances thatclosely resemble actual dioxins that are generated when chlorinated substances are burned.

③Support Environment and Quality Management of Affiliates DENKA operates withnumerous affiliates that the company invests in as part of business development. The affiliates
introduced on pages 43 to 45 are supported for management to share information. We do this because
we believe there is a need to manage quality, environment and safety according to DENKA standards.
⑤Audit of Waste Processing Companies There are numerous waste processing, Waste Management
and Public Cleaning Law＊2. When waste is treated outside the company, a waste treatment company
must be chosen and an agreement must be endorsed with that company. The company is also
responsible to publish a manifesto and check after recovery, as well. In addition to legislation, DENKA
periodically audits the processing plant site, as well as check their business details and financial records.

⑦Yellow Card/Container Label Depending on the material properties, transport of materials
may have a major effect on the environment in the case of accident. DENKA has introduced
numerous guidelines in case of an accident. The driver is required to keep a "Yellow Card" thatoverview the measures in the case of an accident. Product containers are also "labeled withindications", so swift and proper measures can be taken in case of an accident. What's more,
Yellow Card Drills are also conducted at each plant and research laboratory on emergency firstaid, properly reporting through proper chain of command, and preventing spread of fire/disaster.
⑧MSDS (Material Safety Data Sheet) There is a need to properly handle chemicalmaterial according to its physical and chemical risk of danger and health andenvironment hazard properties. DENKA creates an MSDS for all products. This is used
to disclose information to customers and educate the employees. It is important toconstantly review and update MDDS according to the changes in chemical substanceregulations and vital to fully distribute the information to customers. DENKA
periodically checks the state of these operations to ensure whether the operations areproperly managed.

Joint measures by the chemical industry■ HPV (High Production Volume) Program

substances. Approximately 700 chemicals are selected. DENKA also

The HPV program mainly by International Council of Chemical Associations (ICCA)

participates in this program in terms of the substances that concerns

evaluates and assesses safety of substances specified by Organization for Economic

DENKA.

Co-operation and Development (OECD) counts up to roughly 1,000 substances.
DENKA also participates in this program.

■ LRI (Long range Research Initiative)
This is a program promoted through chemical industries (Japan Chemical■ Japan Challenge Programs

Industry Association/JCIA, American Chemistry Council/ACC, European

With the cooperation between industrial sector and the national

Chemical Industry Council/CEFIC) in Japan, North America and Europe.

government (Ministry of Health, Labour and Welfare; Ministry ofLong-term basic research is undertaken to study carcinogenicity andEconomy, Trade and Industry; Ministry of the Environment), this program

endocrine sensitivity to chemical substances. DENKA also cooperates

was designed to promote and collect safety information on chemicalwith this program.

＊1 Negative List: This is a list of chemical substances that cannot be contained in a product and chemical substances that are restricted in use.
＊2 Waste Management and Public Cleaning Law: Law on how to treat and clean waste. Law that defines waste, requires the address of the treatment manager and description of how the substances are treated.

DENKA CSR Report 2007

31

Company Overview

TolueneEmission Volume
Air②④Audit of Contracted Manufacturers At DENKA, some of the raw materials are
manufactured and semi-products are processed by other companies specializing in these areas.
We believe that quality management is vital, as well as logistics, environment and product safetymeasures. Thus, DENKA conduct periodical audit along the standards designated.

⑥Product Safety Records DENKA records all incidents of impurities and hazardous
substances contained in final products in the "Product Safety Records". Effort ismaintained to ensure product quality and safety, as well as reduce environmental load.

Environment

30

TargetVolume Disposed (1,000 tons)

40①Green Procurement DENKA has prepared a "Negative List＊1". This defines all substances that
apply to domestic and international environment management regulations and danger/toxicity
regulations. Effort focuses on abolishing these regulated substances throughout the entire work
process from raw material to manufacturing process of the product. This is backed by the target tocontrol use of the substances indicated in the "Negative List" to maintain quality products.

Society

1,200

TargetEmission level (tons)

Environment

Final Waste Disposal
×100＜1
Volume of Waste Generated

DENKA CSR Report 2007

Audit of contracted manufacturers⑦ Logistics
Yellow Card
Container Label■ Product Safety Management of Supply Chain

DENKA's definition of Zero Emission

30④ Contracted processing
and manufacture

25% reduction.
Progress of Emission Level

0② Contracted manufactureof raw materials

MSDS(Material Safety Data Sheet)

Audit of waste processing contractor

the crude unit.

10① Raw materials

Green Procurement (Negative List)

EconomyThe amount of waste generated in FY2006 was 120,000

Environment

DENKA CSR REPORT 2007

Labor Safety and Hygiene, Safety and Disaster Prevention

Measures for Labor Safety and Hygiene■ Labor Safety ResultsFrequency Rate

2.5

2.0

activities of plants.

■ Preliminary Safety Evaluation

Opprtunity to communicate with other worksite

We reviewed past cases of accident and found that we

operators made the sharing of safety measuers effective.

encountered unconventional incidents and even experienced

Effort focuses on heightening awareness toward safety

dangerous incidents when changing the conditions of raw

on a comapany basis, by communicationg not only

materials, facilities and operational conditions.

with the members of the management but between

In FY2006, the manufacturing, engineering and environmental

plants of different levels.

protection sectors worked in collaboration to promote
activities that eradicate facility accident, change management

1.5

1.0

●Environment Measurement Activities

measures.

Environment measurement activities concerning the

As a result, the number of accidents cases in FY06 washealth of our employees are taken safety. Thus, wereduced to roughly half of the market compared to FY05.

implement and manage self-management standards at a

Activities will be sustained to stabilize good results for FY07

level higher than defined by the Labor Safety andand thereafter.

Hygiene Act. Management activities are especiallystrengthened with individual exposure measurement

FY

conducted in workplaces handling benzene, and other

DENKA
Chemical Industry Average(CY)

Affiliate Companies
Manufacturer Average(CY）●Mental Health
We believe that a healthy state of mental health is vitalcommunication, prevention, early detection, measures,■Labor Safety Activitiesetc.) to managers.

●Create Safety Management System
The Chiba Plant was reviewed for OHSAS18001

and accident drills are important.
Each plant and research center works in collaboration
with local fire-fighting organizations from the very earlystages. General fire drills are also conducted by the plant

Every effort is exerted to prevent work related accidents byimproving employee skills and knowledge. To ensure this we
conduct lecture and discussion on the "role of the plant supervisor",namely for the assistant chief and other supervisors at the forefront of
the job flow, in accordance with the Labour Safety and Sanitation
Law. Participants of this program emphasized that they strongly feltthat "communication was vital for work safety and that the assistantEnvironment

programs (mechanism of the mind and body, risk

major disaster. This is why we believe routine fire drills

Programs to Study Labour Safety and Sanitation Law

Operations

health measure, including mental health education

Construction

for operators. We enforce a company-wide mental

DesignDisaster Frequency Rate =Number of deaths andinjuries / Total number of working hours＊1,000,000

It is vital to prevent safety problems from turning intoand drills are constantly repeated to be prepared.

Flow of Preliminary Safety Evaluation

Discuss and Review Safety

Source: Japan Industrial Safety and Health Association
CY = calendar year

carcinogenic and/or hazardous substances.

■ Fire Drill

and research center. Periodical and systematic training

Check and Review Safety upon Completion of Construction

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

Scene of Safety Management Conference

Society

0.0

guidelines for betterment and polish preliminary evaluation

Plans for New Construction, Expansion and Renovation

Environment

0.5■ Hygiene Activities

EconomyLabor Safety Results

Safety Measures

chief leading the job made the difference in work safety".

certification in November 2006, and acquired
certification in February 2007.
promote certification for other plants, as well.
● Risk Assessment Measures
Effort focuses on activities that prevent accidents before
they happen by identifying latent risks of the facilities
and activities.
We not only study in-house accident cases, but also
assess risk of case studies of other companies.
●Workplace Safety Exchange Program
An exchange program for worksite operators was heldat the Omuta plant to discuss charactristic safety

32

DENKA CSR Report 2007

Simulation Programs

Ensuring Safety becomes the foremost priority at plants at risk

Scene of mental health seminar conducted at the Omuta Plant.

of fire or explosion and operating at high temperature. For thisThe process has been changed to ensure safe operations andreason, a Safety Management Conference organized by in-management during the workflow. What's more, automatedhouse specialists is periodically conducted in hope to ensure

facilities have also reduced the risk of employees, especiallysafety and security.

inexperienced employees, from getting involved in an

In FY2006, at the Omi plant, the cement plant using massive

accident. Though these advancements may be successful involumes of fuel was in scope, in addition to the chloroprene,

securing safety in the manufacture site, there is a concern

mono-silane, ML/MCA, PVA and electric furnace plants.

that workers may be desensitized toward latent dangers inFurther in FY07, the Safety Management Conference is also

the chemical plant. Thus, model devices are used in thescheduled to take place at the Chiba Plant which uses massive

actual workplace to simulate possible work accidents and tovolumes of organic solvents and reactivity monomers.

learn from those simulated experiences.

DENKA CSR Report 2007

33

Company Overview■ Safety Management Conference

Measures will be enforced to strengthen the system toEnvironment

DENKA CSR REPORT 2007

Environmental Accounting

Environment

DENKA CSR REPORT 2007

Environment Performance Data

Environmental Accounting

Environment Performance Data

To understand and analyze the effects of environmental investments, an aggregate on the investment, expenses, environmental

The performance data of each environmental conservation item enforced at our 5 plants (excluding the central research center) is indicated below.

conservation effect and economic effect was calculated to learn the results on environmental conservation effects from FY2006.

Omi Plant

1. Environmental Conservation Costs (FY2006)
A little over 60% of environmental investments were spent on preventing pollution.
Category

Environmental conservation Costs ( million)

Details of EffectInvestments

Expenses

608
297
145
166
220
2
0
0
0
0

2,733
1,930
0
803
13
43
231
9
10
0

830

3,039

Measures to reduce environmental load
Energy saving
Effective utilization of resources
Change raw materials
Environmental Education
Environmental Conservation
Communication Relations

Grand Total

Omuta Plant

Chiba Plant

Statistics on environmental load was computed.
Environmental Load

Unit

FY2005 Results

FY2006 Results

Effectten thousand tons
tons
tons
tons
tons
ten thousand tons
tons
thousand tons
tons

177
233
5,680
2,870
143
8,940
1,350
124
4,920

171
221
5,650
2,080
121
8,680
1,670
120
3,600

6
12
30
790
22
260
320
4
1,320

Shibukawa Plant

3. Economical Effects related to Environmental Measures
Ofuna Plant

The actual results presented profit/loss on sale of valuables, energy conservation, reduction of waste processing/treatment cost, and improved profits.
Category
ProfitCost Saving

Item
Business income from recycling waste generated frommajor business activities and recycling waste products
Reduce energy cost by saving energy
Reduce waste treatment/processing cost by saving and recycling resources
Improved Yield

Total

34

DENKA CSR Report 2007

Details

Effects (Unit : million)

Profit on selling valuables

699

Energy Saving Effect325

Effective Utilization of Resources

4
43
1,071

※

Energy Consumption rate
CO2 emissions (Energy Origin)
PRTR emissions
NOx emissions
SOx emissions
Soot and Dust emissions
Water Volume Used
COD (BOD) discharges
Volume of Waste Generated
Final waste disposal
Energy Consumption rate
CO2 emissions (Energy Origin)
PRTR emissions
NOx emissions
SOx emissions
Soot and Dust emissions
Water Volume Used
COD (BOD) discharges
Volume of Waste Generated
Final waste disposal

compared to FY1990
ten thousand tons
tons
tons
tons
tons
ten thousand tons
tons
thousand tons
tons
compared to FY1990
ten thousand tons
tons
tons
tons
tons
ten thousand tons
tons
thousand tons
tons
compared to FY1990
ten thousand tons
tons
tons
tons
tons
ten thousand tons
tons
thousand tons
tons
compared to FY1990
ten thousand tons
tons
tons
tons
tons
ten thousand tons
tons
thousand tons
tons
compared to FY2002
ten thousand tons
tons
tons
tons
tons
ten thousand tons
tons
thousand tons
tons

0.92
102
45
3,890
2,470
124
7,300
1,293
92
1,703
0.98
12
6
1,220
1
5
123
1
7
2,974
0.89
61
174
539
364
12
981
45
23
171
1.33
1
5
29
35
0
527
11
1
44
0.93
1
2
5
0
2
6
0
0
31

FY2006 Results FY2007 Target
0.92
102
36
4,010
1,725
102
7,170
1,593
89
1,188
0.96
11
6
1,144
1
5
120
1
7
2,178
0.88
56
171
485
326
14
986
68
23
206
1.18
1
6
10
27
1
392
9
0
19
0.84
1
1
3
0
0
7
0
0
13

0.94
104
22
3,720
1,695
101
−
1,483
93
1,599
0.93
12
7
1,342
1
4
−
3
7
1,938
0.83
57
127
540
356
16
−
37
24
215
1.15
1
6
11
29
1
−
9
0
15
0.77
1
1
3
0
0
−
0
0
12

Company Overview

CO2 emissions (Energy Origin)
PRTR emissions
NOx emissions
SOx emissions
Soot and Dust emissions
Water Volume Used
COD (BOD) discharges
Volume of Waste Generated
Final waste disposal

FY2005 Results

Environment

2. Effects of Environmental Conservation

Energy Consumption rate
CO2 emissions (Energy Origin)
PRTR emissions
NOx emissions
SOx emissions
Soot and Dust emissions
Water Volume Used
COD (BOD) discharges
Volume of Waste Generated
Final waste disposal
Energy Consumption rate
CO2 emissions (Energy Origin)
PRTR emissions
NOx emissions
SOx emissions
Soot and Dust emissions
Water Volume Used
COD (BOD) discharges
Volume of Waste Generated
Final waste disposal
Energy Consumption rate
CO2 emissions (Energy Origin)
PRTR emissions
NOx emissions
SOx emissions
Soot and Dust emissions
Water Volume Used
COD (BOD) discharges
Volume of Waste Generated
Final waste disposal

Unit

Society

Environment

1) Costs within business area
Pollution Prevention
Items
Global Environment conservation
Resource, recycling2) Upstream /Downstream Costs
3) Administrative costs4) R&D Costs
5) Society Activity Costs
6) Environmental damage costs7) Others

Item

The total values of each operation may vary with the values on p. 34 since the rounded off to the nearest whole number.

DENKA CSR Report 2007

EconomyPlantsScope of Aggregate:Plants and research center
Target Period: April 1, 2006 to March 31, 2007.

35

Company Overview

DENKA CSR REPORT 2007

Company Overview

Overview

Major Products and Affiliates by Segment
PlantsEstablished: May 1, 1915

Omi (Niigata), Omuta (Fukuoka), Chiba,

Capital: ￥36,998 million (as of March 31, 2007)

Shibukawa (Gunma), Ofuna (Kanagawa)Segment

Research Center

103-8338, JAPANMachida (Tokyo)

Branches and Sales Offices
Osaka, Nagoya, Fukuoka, Niigata, Toyama, Sapporo,

Overseas Subsidiaries

Sendai, Nagano, Takasaki, Shizuoka, Hiroshima,

New York, Dusseldorf, Singapore, Shanghai, Shuzhou

Major Products

Affiliates

1,536

Styrene monomer,
polystyrene resin,
ABS resin, "CLEAREN",
heat-resistant/transparent resins,
acetic acid, vinyl acetate monomer,
PVA, chloroprene rubber,acetylene black, etc.

Chiba Styrene Monomer,
TOYO Styrene, CRK, Denak,
Shonan Sekisui Kogyo,
DENKA Singapore, etc.

496

Fertilizers, calcium carbide,refractories, cement,
special cement additives, etc.

Hinode Kagaku Kogyo,
DENKA Azumin,
Nishi-Nihon Koatsu Gas,
DENKA Renotec, etc.

376

Spherical fused silica filler,fine ceramics,
electronic circuit board,thermally conductive sheet,adhesives, coating materials,
electronic component packaging materials,
adhesive film, etc.

TOYO Adtec,
Denal Silane,
DENKA Advantech, etc.

567

Food packaging materials, vaccine,drugs to improve joint functions,diagnostic reagent,construction materials,
industrial materials, etc.

DENKA Polymer,
DENKA Kako,
Nakagawa Techno Industry,
DENKA SEIKEN,
Juzen Chemical, etc.

317

Plant & engineering, etc.

DENKA Consultant & Engineering,
Yamatomi Trading,
Hissan Trading, etc.

Organic Materials

Head Office: Nihonbashi Mitsui Tower, 1-1, NihonbashiMuromachi 2-chome, Chuo-ku, Tokyo

Sales(￥100 million)

Takamatsu, Akita, Ageo

Company Overview■Consolidated Financial Highlights (FY 2006)■Non-consolidated Financial Highlights (FY 2006)

Net Sales: ￥329,262 million

Net Sales: ￥244,152 million

Operating Income: ￥29,877 million

Operating Income: ￥25,444 million

Employees: 4,696 (as of March 31, 2007)

Employees: 2,635 (as of March 31, 2007)

Net Sales by Segment

Net Sales /Operating Income(￥100 million)
300

2,500

(￥100 million)
300

2,000

200

Functional
Organic
Materials andMaterials:52%
Plastic Products:
14%

Electronic Materials

200

2,000

1,500

1,500

1,000

Electronic
Materials: 14%

100

1,000

Net Sales by Segment

Net Sales /Operating Income(￥100 million)
2,500

100
500

500
0

0
2002 2003 2004 2005 2006
（FY）
Net Sales (￥100 million)

Electronic
Materials: 11%

Inorganic
Materials:
15%0Operating Income (￥100 million)

25(￥100 million)
4,000

(yen)
350

3,500

300

3,000
2,500

20
15
50

0

36

250

150

100

5

500

50

0

(￥100 million)
3,500

(yen)
300

30

3,000

250

25

2,500

20

2,000

15

1,500

Net Income (￥100 million)

2002 2003 2004 2005 2006
（FY）
Total Assets (￥100 million)
Total Shareholders’ Equity(￥100 mil ion)

Net Income per Share (yen/share)

Total Shareholders’ Equity per Share (yen/share)

50

10

1,000

5

500

0

200
150

100
150

1,000

DENKA CSR Report 2007

Total Assets /Total Shareholders’ Equity
(yen)
35

1,500

10

0
2002 2003 2004 2005 2006
（FY）(￥100 million)
200

200

2,000

100

Functional Materials and Plastic Products

0

100
50

Net Income (￥100 million)

0
2002 2003 2004 2005 2006
（FY）
Total Assets (￥100 million)
Total Shareholders’ Equity(￥100 mil ion)

Net Income per Share (yen/share)

Total Shareholders’ Equity per Share (yen/share)0
2002 2003 2004 2005 2006
（FY）

Company Overview

30
150

Net Income

Total Assets /Total Shareholders’ Equity
(yen)
35

Inorganic
Materials: 20%

Operating Income (￥100 million)

Net Income(￥100 million)
200

02002 2003 2004 2005 2006
（FY）
Net Sales (￥100 million)

Environment

3,000

Functional
Others: Organic
Materials and 10%
Materials:
Plastic Products:
47%
17%

Society

Inorganic Materials

Data(￥100 million)
3,500

EconomyName: DENKI KAGAKU KOGYO KABUSHIKI KAISHA

Others※ Affiliate companies includes some non-consolidated companies.

DENKA CSR Report 200737

Company Overview

DENKA CSR REPORT 2007

Domestic Productions

Chiba Plant

DENKA SEIKEN Co., Ltd.
Niigata Plant
Kagamida Plant

We are proudly leading the pack domestically, by developing our polystyrene, ABS resin and other styrene-based resin businesses, using the resources of the styrene monomer plant.
Strengthening has also been carried out on transparent resin, CLEAREN and other functional resins, as well as ER rubber, resin-processing businesses and petrochemical businesses.

DENKA Kako Co., Ltd.
Polymer Processing Research Center◆Address

6, Goi-Minamikaigan, Ichihara-City, Chiba
Bibai Plant: 1-1 Higashi-Gojo-kita, 10-chome, Bibai City, Hokkaido◆Employees

503◆Major Products

Organic Materials ：Styrene monomer, polystyrene, ABS resin, transparent

Shibukawa Plant

DENKA Azumin Co., Ltd.

Omi Plant

EconomyBibai Plant

resin, heat resistance resin, SBC resin "CLEAREN", vinyl

CRK Corporation
Hinode Kagaku Kogyo K.K.

DENKA SEIKEN Co., Ltd.

Omuta Plant

DENKA Polymer Co., Ltd.

acetate monomer, ER rubber, etc.
Plastic Products ：Food packaging materials, construction materials, VINI-TAPE, etc.
◆Research Center○Process Research Center○Polymer Research Center

DENKA Polymer Co., Ltd.
Goi, Katori, Sakura Plant
Kyushu Plastic
Kogyo K.K.

Head Office■ Plants and Research Centers
Omi Plant

We started manufacturing fine products after the plant was launched to manufacture general-purpose chemical products. Currently, we are operating
as a core production base of organic-based electronic materials business, with focus on electronic circuit boards, emitters and structural adhesives.
◆Address

1135 Nakamura, Shibukawa-City, Gunma◆Employees

231◆Major ProductsElectronic Materials：High thermally conductive metal substrate "HITT plate",
thermally conductive spacer, adhesive film, adhesives,electron & ion emitters, etc.

It is estimated that the total reserve of limestone at Kurohime-yama amounts to 5 billion tons. Highly exclusive lime and calcium
carbide businesses are focally promoted backed by the company extensive resources and 160,000kW independent power generation
capability.

Organic Materials：PVC compound◆Research Center

2209 Oaza Omi, Itoigawa-City, Niigata◆Employees

1,059◆Major Products

Inorganic Materials ：Cement, special cement additives, calcium carbide,
calcium cyanamide, alumina fiber, etc.
Organic Materials ：Chloroprene rubber, PVA, etc.
Electronic Materials ：Monosilane○Electronic Materials Research Center

Environment◆Address

SocietyCompany Overview

Central Research Center

Chiba Plant
Ofuna Plant

Shibukawa Plant

Ofuna Plant
We develop and manufacture products such as synthetic fibers and packing tape, based on ejection molding technologies and adhesion coating
technologies. High function films have newly been added to the lineup, to develop into a core production base for resin-processing business.

Functional materials：Hyaluronic acid◆Research Center○Organic Materials Research Center ○Inorganic Materials Research Center

Omuta Plant

13-1 Dai, 2-chome, Kamakura-City, Kanagawa◆Employees

164◆Major Products

Plastic Products: Synthetic fiber "TOYOKALON", packaging materials, functional film.

◆Research Center○R&D Department

Company Overview◆Address

Since the first plant of DENKA was established, developments have been made in the advanced field of ceramics, based on original electrical furnace technologies, high temperaturetechnologies, and nitride technologies, as base of inorganic chemistry products. There has also been major expansion to fine ceramics, and areas of electronics materials, as well.

Central Research Center◆Address

Shinkai-cho, Omuta-City, Fukuoka◆Employees

449◆Major Products

Inorganic Materials：Calcium carbide, calcium cyanamide, alumina cement
FIRELEN, special cement additives, etc.

The focus remains on R&D of high function products specializing in exclusive deep plowing
technologies and peripheral technological areas. However, this is also the core R&D facilityof the DENKA Group striving to enforce new endeavors to attain "DENKA 100".

Organic Materials：Acetylene black◆Research Center

38

DENKA CSR Report 2007

Electronic Materials：Fused silica filler, silicon nitride, boron nitride,
ceramics substrate, thermally conductive sheet, etc.

◆Address

5-1 Asahi-cho, 3-chome, Machida-City, Tokyo◆Employees

75○Ceramics Research Center◆Research Center ○Biochemistry Research Center ○Materials Research Center ○Chemical & Numerical Analysis Research Center

DENKA CSR Report 2007

39

Company Overview

DENKA CSR REPORT 2007

Overseas Production and Marketing Bases

Asia

China

North America

DENKA Singapore Pte. Ltd.
DENKA Advantech Pte. Ltd.

DENKA Chemicals Shanghai Co., Ltd.

DENKA Corporation(Shanghai)(New York)(Singapore)

EconomySales
Europe
DENKA
Chemicals GmbH‥
(Dusseldorf)

SocietyCompany Overview

Environment

DENKA CSR Report 2007

DENKA Singapore/Merbau Plant

DENKA Advantech/Tuas Plant(Singapore)(Singapore)(Singapore)(China)Styrene-base resin facilities have been newly
implemented in 2006. The plant is the world's largest
scale styrene-based resin production base. The plant
prides in a high share of "MW Grade" (GPPS). It also
manufacturs SBC resin "CLEAREN" for label films for
PET bottles, and transparent resins (MS resins) suiting
optical needs. Today, this is a major operation of the
DENKA Group to globally supply products to theChinese, Asian, European, North American markets.

The plant manufactures acetylene black that isa conductive special carbon black which isindispensable to conductive products. This is
the first plant of the DENKA Group
constructed in Singapore, backed by thedemands increasing in Southeast Asia. Today,
it enjoys a growth in power cables withdelivery to Asia, Europe, North America andvarious countries around the world.

This plant prides in maintaining the world's highest share in
manufacturing spherical fused silica fillers. Effort constantly
focuses on manufacturing environment-friendly products,
upon meeting increasing demands for spherical fused silica
fillers used in epoxy molding compound for semiconductor
packages. As a result, the production capacity was reinforced
in 2006. A full-scale system was established in Omuta andSingapore to aggressively develop business according to theglobal market, with focus on the growing Asian market.

This plant was founded in 2006, andoperations were kicked-off as a production
base of electronic component packaging
materials, and heat-resistant insulation tapefor automobile wire harnesses. Effort focuseson swiftly meeting customer needs with quick
delivery, as well as strengthening andexpanding business.

Company Overview

Manufacture

40

DENKA Singapore/Seraya Plant

DENKA Advanced Materials (Shuzhou) Co., Ltd.

DENKA CSR Report 2007

41

Company Overview

DENKA CSR REPORT 2007

Overseas Production and Marketing Bases

Company Overview

DENKA CSR REPORT 2007

Affiliate Companies

DENKA Polymer Co., Ltd.

DENKA Singapore Group

Address■ RC Activities

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

DENKA Singapore Group operates in Singapore with 3 plants: DENKA SINGAPORE Merbau Plant, Seraya Plant, and DENKA Advantech Tuas Plant.

Employees

Each plant exerts daily effort in maintaining safe production bases upon manufacture, as well as environmental-friendliness by effectively utilizing

Major Products OPS products, PSP food trays, food containers, strech film.

resources and reducing waste. Operational efficiency was reviewed and the safety management system was re-organized in parallel with the growth

RC Activities and Results

Economyin the production scale of styrene-based resin and fused silica filler.

425

The Containers and Packaging Recycling Law was enacted
in June 2006. In line with its basic idea, we promoted consolidate effort by the entire DENKA Group tocontrol discharge of packaging waste and reduce recycling cost.

DENKA Singapore/Merbau Plant (acetylene black)◆RC Activities①We developed and sold the lightest PSP food tray in the industry by consolidating ourtechnological expertise from raw materials to processing technology to reduce discharge.

Reduce paper bag loss.

②Recycling cost was reduced by gaining further cooperation by retailers to recover food trays at

Abide by air and water environmental regulations.

the store, recycling raw materials and fuel of cement.

Prevent soil pollution.
Updated to 2004 version.

Company Overview

Society◆ISO14001■ Food Tray Recycling System
We set up recycling boxes to collectwaste PSP food trays.

DENKA Singapore/Seraya Plant (styrene-based resins)◆RC Activities

Promote effective utilization waste oil coming from resources, by reusing it as boiler fuel.
Prevent environmental pollution and abide by air and water environment regulations
Introduce closed shipment inspection sampling system.

◆ISO14001

Reduce use of package materials via built transport of item.
Updated to 2004 version.

DENKA Kako Co., Ltd.

DENKA Advantech/Tuas Plant (fused silica filler)◆RC Activities

Head Office: 245, Nishigawara, Naganuma-cho, Isesaki City, Gunma
Ojima Plant: 3015, Serada-cho, Ota City, Gunma

Employees

243

Abolish and manage toxic waste for proper waste management.
Promote recycling.
Secure safety of new plant constructed.
Updated to 2004 version.

Results■RC Results
Notable environmental activities enforced at the 3 plants are described as follows.

Item

Target2004 2005

2006 Details of Measures in 2007

Merbau Plant

Waste Management

Paper bag loss 0.5% or lower

0.2

0.3

0.3

Boost usage rate of excellent bag manufacturers

Seraya Plant

Effective Utilization of Resources(use waste oil as boiler fuel)2007: 320 liter/hour

−

80

260

Promote reuse of waste oil

Tuas Plant

Waste Management

2% or lower

1.4

1.2

2.4

Improve crude unit of raw materials

Company Overview

Major Products Electronic component packaging materials, foodpackaging materials.
RC Activities①Strengthen the system to manage work safety andhygiene. ② Labor accident measures. ③ Reduce
industrial waste. ④Improve the level of facilities and equipment quality (safe machines andequipment). ⑤Individual plan and practice each item defined for promotion for suitable work
place (5S, Health, Mental health, etc.).

Improve crude unit of raw materials.
Abide by air and noise environmental regulations.

◆ISO14001

Address

Environment.

We carry trays to Denka Omi Plant.

①A system of workplace-safety leader was newly appointed to train, and announce Labor Safety
and Hygiene policies.
② In FY06, there were no absences due to accident, though there were 7 incidents of minor
accidents without any injury.

Communication Relations●There was a tour around the Isesaki Plant by the Sawa-Isesaki District Industrial Education
Promotion Organization (roughly 30 participated).
※ DENKA Kako become Isesaki Plant of DENKA in October, 2007.

42

DENKA CSR Report 2007

DENKA CSR Report 200743

Company Overview

DENKA CSR REPORT 2007

Affiliate Companies

DENKA SEIKEN Co., Ltd.

Hinode Kagaku Kogyo

Address

Address

660 Aza Kuratani, Maizuru City, Kyoto

Employees

50

Head Office: 4-2 Kayaba-cho, 3-chome, Nihonbashi, Chuo-ku, Tokyo
Plant: Gosen City, Niigata (Niigata Plant, Kagamida Plant)

RC Activities① Setup waste water treatment device to treat BOD.
② Communication with local residents.

Results●The energy saving goal of each department was almost
attained.

Communication Relations●Communications with the local community was also
aggressively maintained through exchange programs.

RC Activities

disasters by boosting employee awareness througheducation and training programs.
●Save energy and resources, reduce discharge of substances.
●Actively participate to the environmental conservation activities by the community.
Results

We actively participated in cleaning activities.

Communication Relations●Sponsored a tour around the plant for elementary school students.
●Participated in the cleaning activities for the "Maizuru River and Ocean Beautification Month".
●Participated in the "Maizuru Clean Campaign".
Others

One employee was awarded the excellent employee : Kyoto Prefecture Safety and Disaster
Prevention Reference.

DENKA Azumin Co., Ltd.

Address

Address118, 5 Chiwari, Nimai-bashi, Hanamaki City, Iwate

Employees

23306-banchi, Koyagi-cho, Takasaki City, Gunma

Major Products "AZUMIN" (Magnesia Humate)
RC Activities

RC Activities and Results●To prevent generation of waste from the origin, we are aggressively
undertaken to improve yield, prevent defects and enforce recycling.
●Effort is constantly exerted to identify and eradicate hazardous and dangerous factors to ensure employee safety and hygiene.

Others●Our expertise in fire resistant technologies to manufacture fire resistant products has also been
acknowledged by winning the Nakagawa Takeo Technical Prize.
●The Company has been acknowledged by winning the "Association President Award" from the
Gunma Work Standards Association. Our company has been certified with the Promoting Projectof Comfortable workplace promoted by the Ministry of Health, Labour and Welfare.

DENKA CSR Report 2007

Results①Review rules and regulations in the workplace.
②Promote activities to ensure zero accident and zerodisaster/fire as a continual goal under the supervisionof the KY/HH Committee, Safety Patrol Committee andEnvironment Committee. The target is also to thoroughly control and manage NOx emissions,reinforce measures to prevent soot and dust, and other measures to prevent polluting theenvironment.
①Continued to mark zero accident and zero disaster/fire in FY2006.
②Participated in joint training with Hanamaki Fire Department for a nitric acid leakage training
drill, and gained mutual understanding.
③The Anti-Pollution Council of the Town Association acknowledged our efforts in reducing soot and dust emissions.

Company Overview

Communication Relations●We actively participate in events that take place in the industrial park to communicate with the local community.
●Monthly cleaning and beautification activities inside and outside the plant premises areconstantly on the agenda.

Environment

CRK Corporation
Employees
78
Major Products Various rubber compounds, industrial rubber products,
fire resistant rubber products, etc.

44

●Environmental legislation and prevent accidents andSocietyCompany Overview●BOD waste water treatment device was setup at the
Kagamida Plant in 2006.
●CO2 emissions at the Kagamida Plant rose by 25% due
to expanding the plant facilities.

Major Products "YORIN" (Fused magnesium phosphate)"TORETARO" (Fused silicate phosphate fertilizer)

EconomyEmployees
452
Major Products Influenza vaccines, virological diagnostic reagents,
bacteriological diagnostic reagents, immunologicaldiagnostic reagents, clinical chemistry diagnostic
reagents, and general biological diagnostic reagents.

Communication Relations●We accept plant patrol by "Anti Pollution mesure Council" of Nimai-bashi district. Q&A andinformation exchange conducted after patrol.
●We exchanged information with director and chairman of the town association.

DENKA CSR Report 2007

45

DENKA CSR REPORT 2007

Third-Party Audit

Progress of DENKA CSR
1985

Canadian Chemical Producers' Association proclaims Responsible Care (RC) to selfcontrol and self-manage chemical substances.

1990
1995

Found International Council of Chemical Association (ICCA).
Found Japan Responsible Care Council (JRCC); DENKA endorses membership.
Define (announce) basic policy on DENKA Responsible Care.
Organize RC Committee.

1997

Start RC Audit.
Create basic manual to promote Product Liability (PL) measures and organize PL
Committee.

1998

Organize Energy Saving Subcommittee.

1999

Chiba Plant acquires ISO14001 certification (all plants acquired certification by 2004)

2000

Publish 1st Environment Report published.
Discover that acetylene was generated (previously not known) and dioxin was generated
at alumina fiber production plant. Report the state to the governmental agency
concerned. (2002: specified as designated facility of "Dioxin Special Measures Act").

2001

Start operation of natural gas cogeneration facilities at Chiba Plant.

2002

Omi Mine wins Gold Kanban Award for "Good Mining Results".
Start indicating affiliates in Environment Report. (3rd)2003

Start operations of biomass boiler power generation.
Create negative list.
M&A with TOYO KAGAKU Co., Ltd
Define Middle-Term Environment Plan and start activities.

2004

Start Good Company Program (GCP).

2005

Define Second Middle-Term Environmental Plan according to 2003 and 2004 results,

2006

Start third-party audit at Omuta Plant.

and start activities.
Start accepting sewage sludge.
2007

Publish CSR Report

Editorial Afterword
Thank you for reading our "CSR Report 2007".
It was back in 2000 when we first published our "Environment Report" that
documented our measures on the environment, safety and hygiene. Since
then, we have published this in form of an annual report. However, this year,
we published the "CSR Report" to document our extensive activities andmeasures in terms of our CSR efforts.
We will continue to listen to the opinions of as many stakeholders as possible,
and reflect their feedback in our CSR activities.
We would be most obliged if you would gain understanding of DENKA's
activities and efforts through this report.

Higashi Ito, Representative Director, Senior Managing Director

46

DENKA CSR Report 2007

DENKA CSR Report 2007

47