FY2015 CSR Website CSR > Site Reports > Worksites > Tokuyama Plant

The Tokuyama Plant, which started operating in 1965, is located in the Shunan Industrial
Complex of Yamaguchi Prefecture. The plant manufactures butadiene with the GPBprocess, an extraction distillation technology developed by Zeon, and then uses thebutadiene to produce synthetic rubber, a raw material in fuel-efficient tires; synthetic latex, araw material in gloves for medical and testing use; and polymerized toner for printers, aproduct that Zeon was first in the world to produce on an industrial scale. The Tokuyama
Plant operates on a global level as Zeon Corporation's key synthetic rubber producer,
Aerial view of the Tokuyama
Plant

exporting many of these products to overseas markets.
The Shunan Industrial Complex is said to have had its start when Kodama Gentaro, generalof the Japanese Imperial Army and native of Tokuyama (currently Shunan City), recognized the advantages of Tokuyama as aport location and, responding to military demand created by the Russo-Japanese War, decided to construct a coal briquette
manufacturing plant there for the navy in 1905. Shunan has since become a manufacturing hub for the petrochemical industry
and many other industries.
Wander around the Tokuyama Plant today and you will find various remnants from olden days when the site was used as anaval fueling station. Most symbolic of this history is Zeon Shrine, built in 1966 in dedication to the divided portions (bunshin) of
the three kami of Nachi Gongen, Sumiyoshi Myojin, Toishi Hachiman and to pray for safe operations, employee health, andbusiness growth. To the west of the shrine is the "monument of martyrs," erected in 1924 to commemorate martyrs from theTokuyama area, along with other artifacts.
While basing its operations on the principle of safety and stability first, the Tokuyama Plant tries to build rapport with its local
community in various ways. For example, the plant hosts the annual Waraku Odori Dance Festival and has also invited local
residents to observe its emergency-response drills.

The Tokuyama Plant is located adjacent to the city center and residential areas around Tokuyama Station. To support thesustainable growth of society and earn the trust of the local community based on safe, stable operations, we are creating a
dynamic and productive plant. To do this we introduce production innovations with the full participation of all employees underthe banner, “Greetings and 3Ss (seiri, seiton, and seisou, or neatness, orderliness, and cleanliness) are the Foundation ofEverything We Do.” Employees at the plant actively collaborate with the local community to tackle various public issues,
including collecting bottle caps and can tabs and cleaning nearby streets and the Higashi River, which flows alongside the plant.

-1-FY2015 CSR Website CSR > Site Reports > Worksites > Tokuyama Plant

1. Reducing toxic chemical substances
In fiscal 2011, we introduced an exhaust gas purification system and, although this has allowed us to stably reduce emissions ofsubstances subject to PRTR regulations, the fiscal 2014 PRTR emissions of substances came to 2.7 tons. Moving closer tozero emissions*, our future target is 1.9 tons of emissions or less.
* Zero emissions:
The establishment of systems that discharge no emissions into the natural world, and the fundamental idea behind such establishment.

Substances subject to PRTR law

2. Reducing industrial waste
We have continually achieved zero waste since fiscal 2010.
We are developing activities in connection to industrial waste with the goal of further implementing 3R* and reducing the amountof waste produced.
* 3RReduce, reuse, and recycle.

3. Reducing air and water pollution
We were able to steadily reduce NOx emissions into the air through energy conservation and improved combustion by installing
dry air emission processing equipment and optimizing the amount of combustible air of the boilers. However, in fiscal 2013, wewere unable to switch to lower sulfur fuel and SOx emissions therefore increased. In the second half of fiscal 2014, bycompleting the new boilers that were under construction, we were able to stably reduce SOx emissions.
For water pollution, we are reducing COD and total nitrogen discharge every year by upgrading our wastewater treatment
facilities and improving our treatment methods.
Based on these efforts we were able to clear all our environmental standards, and in fiscal 2015 we plan to maintain our current
performance.

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CO2 emissions

SOx and NOx emissions

Overall wastewater, COD, total nitrogen (TN) and total phosphorus (TP) discharge-3-FY2015 CSR Website CSR > Site Reports > Worksites > Tokuyama Plant

4. Saving resources and energy
We organized an energy conservation work group and promotion committee at the plant, and we have concluded a mid-termplan to promote improvements in connection to technical issues associated with energy-hungry facilities. We are also mobilizing
the collective knowledge of all employees to achieve our target for reducing unit energy consumption to less than 90% of 1990
levels through day-to-day operational management. In addition, we will are putting our daily efforts into promoting information
sharing of our activities status of each plant at the Energy Conservation Promotion Subcommittee held at our Head Office, weare steadfastly seeking improvements by reviewing actions from every perspective and introducing innovative technologies.
Total amount of energy and Unit energy consumption index

5. Environmental Data
Tokuyama Plant
Butadiene consumption (tons)
Butadiene emissions (tons)
Toxicsubstances
Acrylonitrile consumption (tons)
Acrylonitrile emissions (tons)
Substances
Consumption (tons)
subject toAmount emitted (tons)
PRTR law
Amount generated (before volumereduction) (tons)
Industrial
Amount generated (after volume reduction)
waste(tons)
Amount sent to landfill (tons)
CO2 emissions (tons)
SOx emissions (tons)
Atmosphericemissions
NOx emissions (tons)
Soot emissions (tons)
Water resources (Industrial water + Ground water +3Waterworks) consumption (1,000 m )3Total waste water discharge (1,000 m )COD emissions (tons)
Waste water
Total phosphorus discharge (tons)
Total nitrogen discharge (tons)
Total consumption (crude oil equivalent, kL)
EnergyUnit consumption index (1990 = 100)
Production of PDR equivalent (tons)-4-

FY2010217,074
0.7
16,9160.6
464,767

FY2011
186,784
1.4
13,697
0.6
388,603

FY2012
181,275
1.2
13,6000.6
391,766

FY2013
206,7100.8
17,4640.6
453,075

FY2014
170,327
1.1
14,3790.7
397,637

2.2

3.1

2.7

2.0

2.7

21,516

18,71816,93919,201

24,063

3,756

3,762

3,505

3,377

4,674

0.0
294,112
483
358
12.1

0.0
248,294
502
272
7.7

0.0
239,609
322
243
5.7

0.0
279,750
471
205
3.5

0.0
237,362
507
179
2.2

7,824

9,482

8,788

8,927

8,393

6,942
77
0.7
33
107,49798％
599,400

7,884
69
0.6
27
90,95599％
498,167

8,288
58
0.6
27
90,648102％
487,782

8,165
490.7
28
103,000
99％
573,961

7,785
42
0.6
27
92,423
106%477,797

FY2015 CSR Website CSR > Site Reports > Worksites > Tokuyama Plant

In line with Zeon's Mid-Term Management Plan, including the Enterprise Blueprint for 2020: “Zeon creates the future today
through the power of chemistry,” the Tokuyama Plant continuously improves and innovates its production technologies toachieve a 100% yield rate* and build certifiable quality into all of its products. We aim to be a plant that consistently delivers
high-quality products that satisfy our customers.
* Yield rate
The percentage of products rolling off the production line that pass quality inspections. A 100% yield rate means that no defective products were produced.

VOICEFor Safer, More Reliable, More Socially Responsible Products

Our mission at the Tokuyama Plant is not just to produce products that satisfy standards.
Our products should have a greater purpose: to contribute to society's sustainable growth,
to help improve the global environment, and to fulfill Zeon's CSR Policy. To achieve this,zero accidents, zero injuries, and zero pollution are obviously important. But we also need toachieve zero PRTR emissions, reduce CO2 emissions, and by stabilizing manufacturing
operations, develop a cost structure by which we can secure a profit even at low capacity
Toshiaki Saya,Tokuyama Plant Managerutilization.
As the parent plant* of a plant currently under construction in Singapore that will produce

synthetic rubber for fuel-efficient tires, the Tokuyama Plant also needs to support its overseas production centers, not only
technically but by developing human resources that can drive reforms and improvements from a global perspective. I hope todraw on the knowledge of all our employees in our quest for greater innovation in production.
* Parent plant
A plant that applies new technologies developed in Japan before they are adopted at overseas subsidiary plants.

1. Interaction with the local community (39th Zeon Waraku Odori Dance Festival)
Zeon's Waraku Odori Dance Festival is one of Shunan district's annual summer evening
events and is organized by Tokuyama Plant employees. Since 1974, this old-fashioned
summer festival has fostered connections among our most valued stakeholders, including
local residents and plant employees and their families. The event is a popular attraction
every year, attendance of more than 2,000 people turnout to join in, making it a great
success. Employees talked with local residents as they served up foods such as yakitori andoden. The Waraku Odori, a simple dance that encourages everyone to join, tops off theZeon Waraku Odori Dance
Festivalevening.
The Tokuyama Plant will forever cherish its relationship with local residents and contributeto environmental protection and social welfare.
2. Local Public Relations (RC regional informational meeting and plant tour)
In fiscal 2014, we again invited the chairpersons and vice chairpersons of five neighborhood
associations in the vicinity of our plant to the RC regional informational meeting and plant

Plant report meeting

tour, held for the tenth time.
During the summer vacation, we held two Parent-And-Child Classrooms, sponsored by theChamber of Commerce and Industry, which included making super balls in the laboratories,
and taking a tour of the plant by bus.
Our goal now and in the future is to realize a safe and secure plant that allows all-local
residents to have peace of mind.
Laboratory-5-