1-15 Honnogahara, Toyokawa, Aichi, 442-8544 Japan
Tel.+81-533-84-8929 Fax.+81-533-84-8952
E-mail : infoeco@osg.co.jp

Environmental
Report2018

Top Message

Further growth in a new era by adapting to the changing times
OSG recognizes that addressing environmental problems is a common issue worldwide and essential to our
corporate activities. Responding to the changing times and customers’ needs, we will take the initiative indeveloping environmentally friendly products using future technology.
In fiscal 2017, OSG achieved record-high net sales. We have announced
the four-year management plan entitled “The Next Stage 17” for theperiod from fiscal year 2017 to 2020, which targets sustainable growth

Fundamental Business Policy
Always aware that our corporation is an institution that serves society, we provide products that areappreciated by our customers.
We assign our employees appropriate jobs and strive to improve their daily lives.
We strive to provide stable dividends to our stockholders.
We implement sound business practices that earn enhanced social trust and develop the corporation
into a worldwide business.

and corporate value enhancement for the long term.
In March 2018, OSG has marked its 80th anniversary since its
foundation and created an anniversary logo forming “80” with threeintertwined rings which represent the core values of ourcompany – quality, globalization, and innovation. By enhancing the

Basic Environmental Ideas
All will work to maintain the global environment in harmony with OSG’s basic
business policies.
OSG publicizes information on its three declarations made in October 1996 (i.e., Global Expansion,
Health-consciousness, and Eco-friendliness).

core values and deepening communication with customers, we willtake on the challenge of achieving further growth toward the 100th
anniversary.

that contribute to society.
Following societal norms, OSG promotes communication with the local community.

In an effort to further promote our ongoing activities forEnvironmental Policy

environmental conservation, we will actively develop products that
contribute to environmental protection and help our customers to01

reduce their environmental impact through the use of our products.

OSG strives to protect the global environment and act in harmony with nature under OSG’sslogans of “an Eco-friendly Company” and “a Culture That Cares for the Environment.”

In our eco-friendly production, we will aim, with making full use of
information technology, to maximize productivity and promote energy

Seventh Mid-Term Environmental Plan (From FY2018 through FY2020)

saving by installing a smart production line which enables both fullautomation for large lot production and the improvement of flexibility
OSG Corporation
President and CEO

for small lot production.
We will commit ourselves to transforming each and every one of ourcustomers’ dreams into reality and continue to contribute to thedevelopment of the manufacturing industry and the realization of asustainable future. We look forward to your continued support.

Slogan: Achieve further environmental improvement as a leading eco company【We aim to reduce costs by actively promoting eco-factory activities and developing eco-products】

Priority activities
Eco-factory

Reduction in consumption of energy and indirect materials such as cutting
oils and grinding wheels
Eco-productDevelopment of cutting tools with long life and that help customers to
reduce their environmental impact
Energy conservation Productivity enhancement by reducing setup time and improving cycle time

FY2017 Targets and Results, FY2018 Targets

Concept of OSG’s Anniversary Logo “OSG’s 80 Ring”

FY2017
Target

FY2017
Result

FY2018TargetTotal Energy Use Reduction(Energy sources: Electric power,
Fuel oil and LPG)
Total use of energy BM: 95,676 GJ/month

1.0% reduction
850 GJ/month
reduction

1.0% reduction
897 GJ/month
reduction

1.0% reduction
957 GJ/month
reduction

Basic unit of production
BM: 20 GJ/million yen

1.0% reduction
0.20 GJ/million
yen reduction

2.2% reduction
0.44 GJ/million
yen reduction

1.0% reduction
0.20 GJ/million
yen reduction

Eco-Products

Eco-Friendly Product Development

13 cases

13 cases

29 points *1

Eco-Factory

Eco-Friendly Production

22 cases

21 cases

31 points *1

Environmental Objectives

OSG’s 80th anniversary logo represents our core values in the three intertwined rings – quality, globalization, and innovation. “Quality” has been an
unchangeable core value of OSG since its founding in 1938. With expand-

EnergyConservation

ing the three core values, we will continue to take on the challenge ofachieving sustainable growth toward our 100th anniversary.

*1 Improvement of environmental activities
Evaluation by scoring (60 points maximum)02

Top Message

Further growth in a new era by adapting to the changing times
OSG recognizes that addressing environmental problems is a common issue worldwide and essential to our
corporate activities. Responding to the changing times and customers’ needs, we will take the initiative indeveloping environmentally friendly products using future technology.
In fiscal 2017, OSG achieved record-high net sales. We have announced
the four-year management plan entitled “The Next Stage 17” for theperiod from fiscal year 2017 to 2020, which targets sustainable growth

Fundamental Business Policy
Always aware that our corporation is an institution that serves society, we provide products that areappreciated by our customers.
We assign our employees appropriate jobs and strive to improve their daily lives.
We strive to provide stable dividends to our stockholders.
We implement sound business practices that earn enhanced social trust and develop the corporation
into a worldwide business.

and corporate value enhancement for the long term.
In March 2018, OSG has marked its 80th anniversary since its
foundation and created an anniversary logo forming “80” with threeintertwined rings which represent the core values of ourcompany – quality, globalization, and innovation. By enhancing the

Basic Environmental Ideas
All will work to maintain the global environment in harmony with OSG’s basic
business policies.
OSG publicizes information on its three declarations made in October 1996 (i.e., Global Expansion,
Health-consciousness, and Eco-friendliness).

core values and deepening communication with customers, we willtake on the challenge of achieving further growth toward the 100th
anniversary.

that contribute to society.
Following societal norms, OSG promotes communication with the local community.

In an effort to further promote our ongoing activities forEnvironmental Policy

environmental conservation, we will actively develop products that
contribute to environmental protection and help our customers to01

reduce their environmental impact through the use of our products.

OSG strives to protect the global environment and act in harmony with nature under OSG’sslogans of “an Eco-friendly Company” and “a Culture That Cares for the Environment.”

In our eco-friendly production, we will aim, with making full use of
information technology, to maximize productivity and promote energy

Seventh Mid-Term Environmental Plan (From FY2018 through FY2020)

saving by installing a smart production line which enables both fullautomation for large lot production and the improvement of flexibility
OSG Corporation
President and CEO

for small lot production.
We will commit ourselves to transforming each and every one of ourcustomers’ dreams into reality and continue to contribute to thedevelopment of the manufacturing industry and the realization of asustainable future. We look forward to your continued support.

Slogan: Achieve further environmental improvement as a leading eco company【We aim to reduce costs by actively promoting eco-factory activities and developing eco-products】

Priority activities
Eco-factory

Reduction in consumption of energy and indirect materials such as cutting
oils and grinding wheels
Eco-productDevelopment of cutting tools with long life and that help customers to
reduce their environmental impact
Energy conservation Productivity enhancement by reducing setup time and improving cycle time

FY2017 Targets and Results, FY2018 Targets

Concept of OSG’s Anniversary Logo “OSG’s 80 Ring”

FY2017
Target

FY2017
Result

FY2018TargetTotal Energy Use Reduction(Energy sources: Electric power,
Fuel oil and LPG)
Total use of energy BM: 95,676 GJ/month

1.0% reduction
850 GJ/month
reduction

1.0% reduction
897 GJ/month
reduction

1.0% reduction
957 GJ/month
reduction

Basic unit of production
BM: 20 GJ/million yen

1.0% reduction
0.20 GJ/million
yen reduction

2.2% reduction
0.44 GJ/million
yen reduction

1.0% reduction
0.20 GJ/million
yen reduction

Eco-Products

Eco-Friendly Product Development

13 cases

13 cases

29 points *1

Eco-Factory

Eco-Friendly Production

22 cases

21 cases

31 points *1

Environmental Objectives

OSG’s 80th anniversary logo represents our core values in the three intertwined rings – quality, globalization, and innovation. “Quality” has been an
unchangeable core value of OSG since its founding in 1938. With expand-

EnergyConservation

ing the three core values, we will continue to take on the challenge ofachieving sustainable growth toward our 100th anniversary.

*1 Improvement of environmental activities
Evaluation by scoring (60 points maximum)02

Environmental Activities

An important task for OSG is to address environmental issues, which will impact future generations. We aim to
reduce environmental impacts and build a recycling-oriented society, while making efficient use of resources,
promoting eco-friendly production and providing eco-friendly products and services to our customers.
Waste Recycling

Material Balance

Promotion of Resources Recycling

In order to contribute to the realization of a low-carbon society and the creation of a resource recycling society, OSG understands
and manages the various environmental impacts of our business activities. We remain committed to initiatives such as reducing
energy use and using waste from our manufacturing processes as recycled materials.

OSG has promoted zero emission activities to reduce waste. We
developed a system to recycle reusable and recyclable resources,and established a structure to ensure the proper disposal of wastefrom our operations. Therefore, our recycling rate has been over
99% since 2005.

EnergyPurchased electric power

INPUT

89,700,000 kWh

Crude oil power generation

1,174 kl

Air conditioning

830 klGas (LPG)(Natural resources, Energy)

433 tons

Water supply

115,603 m

Water for industrial use

31,452 m3

Well water

4,710 m3

Paper: Copy paper (A4 size)

03

Resource extraction
Material manufacture
Energy resource
extraction
Material (Smelting)

Recycling
Rate

Resources
Raw Materials (Metal)

1,890 tons

(Substances subject to PRTR

261 tons)

Procurement

Storage (Processing)

Entrance
controllong tool life)

Green procurement

Reduction ofenvironmental impacts

Packaging

Sales and Services

Eco-friendly
production

Eco-package
promotion

Reduction ofenvironmental impacts

Reduction ofenvironmental impacts

443.8 tons

Waste grinding wheels (recycled)

40.8 tons

Waste plastic (recycled)

46.3 tons

Wood chips (recycled)

90.9 tons

Others (recycled)

53.0 tons
2,306.4 tons

04

Waste emissions and valuable materials ratio
OSG has been continuing to promote the recovery of valuable
materials from waste.
Although our waste emissions increased 6% with theincrease in production, the sale amount of valuable materials
increased 11% from the previous fiscal year.

Customers
RecycleDisposalCarbon-Dioxide Emissions(GJ/Million yen)

(GJ)

30

1,200,000

Manufactured Products
Production

Water Emissions

53,258 million yen

Packaging supplies

185 million yen

Emissions Waste Material
Amount for re-use

1,251.5 tons

Recycled amount

1,054.9 tons

Reclaimed amount

3.0 tons

Total output

Diatomaceous soil (sold for re-use, recycled)

OSG’s CO2 emissions per unit of production remained flatfrom FY2016 because increased production resulted inincreased CO2 emissions.

In FY2017, although OSG continuously encouraged theswitch to LED lighting across the entire company, our energy
consumption increased as due to increase in production.
As a result, our energy consumption per unit of production
remained the same level as that of the previous fiscal year.

Energy Use(Waste materials,
Emissions to water andatmosphere)

140.1 tons

Total

Reductions in Energy Consumption(Dry cutting tools)

OUTPUT

Oil sludge (sold for re-use, recycled)

CO 2 Emissions

OSG has strived to reduce energy consumption, CO2
emissions and waste output. Focusing on efficient energy
use and switching to energy-saving equipment, we haveworked to promote continuous improvement inenvironmental impact throughout the entire company.

Products

Energy saving,
resource saving

528.0 tons

Reductions in Environmental Impacts

4,090,000 sheets

Manufacture74.1 tons

Waste oil (sold for re-use, recycled)

Sub-materials

Others3

Development of
Eco-friendly products

Suppliers

99%

Cardboard boxes (sold for re-use)

511 klOSG
Design development

889.5 tons

Metal scrap

2,309.4 tons

Drainage water* Most drainage water is domestic drainage water.
* We have balanced our water use so that the amount ofdrainage water equals our water usage. 50–60% of actual
drainage water is estimated to be from the use ofwater-soluble coolants and the evaporation from air
conditioning, etc.

800,000(t/Million yen)(t)

60,00050,0001,000,000

151,765 m3

Waste Output and Ratio of
Recovered Valuables

21.4

20

19.4

600,000

17.6

18.6

18.7

30,00010

400,000

40,0001.21
0.95

20,000

0.82

0.96

0.97

10,000200,000

(t)

(%)

2.5

2,500

100

2

2,000

80

1.5

1,500

60

1

1,000

0.5

500

0

0

53%

50%

52%

52%

54%

40

20

Atmospheric Emissions
0

CO2 emissions
Production

51,484 tons-CO2

13

14

15

16

17

0

Electricity
Fuel oil (Generating electricity)
Liquefied petroleum gas Basic unit of production

0

13

14

15

Emission
Comparing production output

16

17

13

14

15

Total weight of emissions
Ratio of recovered valuables

16

17

0

Environmental Activities

An important task for OSG is to address environmental issues, which will impact future generations. We aim to
reduce environmental impacts and build a recycling-oriented society, while making efficient use of resources,
promoting eco-friendly production and providing eco-friendly products and services to our customers.
Waste Recycling

Material Balance

Promotion of Resources Recycling

In order to contribute to the realization of a low-carbon society and the creation of a resource recycling society, OSG understands
and manages the various environmental impacts of our business activities. We remain committed to initiatives such as reducing
energy use and using waste from our manufacturing processes as recycled materials.

OSG has promoted zero emission activities to reduce waste. We
developed a system to recycle reusable and recyclable resources,and established a structure to ensure the proper disposal of wastefrom our operations. Therefore, our recycling rate has been over
99% since 2005.

EnergyPurchased electric power

INPUT

89,700,000 kWh

Crude oil power generation

1,174 kl

Air conditioning

830 klGas (LPG)(Natural resources, Energy)

433 tons

Water supply

115,603 m

Water for industrial use

31,452 m3

Well water

4,710 m3

Paper: Copy paper (A4 size)

03

Resource extraction
Material manufacture
Energy resource
extraction
Material (Smelting)

Recycling
Rate

Resources
Raw Materials (Metal)

1,890 tons

(Substances subject to PRTR

261 tons)

Procurement

Storage (Processing)

Entrance
controllong tool life)

Green procurement

Reduction ofenvironmental impacts

Packaging

Sales and Services

Eco-friendly
production

Eco-package
promotion

Reduction ofenvironmental impacts

Reduction ofenvironmental impacts

443.8 tons

Waste grinding wheels (recycled)

40.8 tons

Waste plastic (recycled)

46.3 tons

Wood chips (recycled)

90.9 tons

Others (recycled)

53.0 tons
2,306.4 tons

04

Waste emissions and valuable materials ratio
OSG has been continuing to promote the recovery of valuable
materials from waste.
Although our waste emissions increased 6% with theincrease in production, the sale amount of valuable materials
increased 11% from the previous fiscal year.

Customers
RecycleDisposalCarbon-Dioxide Emissions(GJ/Million yen)

(GJ)

30

1,200,000

Manufactured Products
Production

Water Emissions

53,258 million yen

Packaging supplies

185 million yen

Emissions Waste Material
Amount for re-use

1,251.5 tons

Recycled amount

1,054.9 tons

Reclaimed amount

3.0 tons

Total output

Diatomaceous soil (sold for re-use, recycled)

OSG’s CO2 emissions per unit of production remained flatfrom FY2016 because increased production resulted inincreased CO2 emissions.

In FY2017, although OSG continuously encouraged theswitch to LED lighting across the entire company, our energy
consumption increased as due to increase in production.
As a result, our energy consumption per unit of production
remained the same level as that of the previous fiscal year.

Energy Use(Waste materials,
Emissions to water andatmosphere)

140.1 tons

Total

Reductions in Energy Consumption(Dry cutting tools)

OUTPUT

Oil sludge (sold for re-use, recycled)

CO 2 Emissions

OSG has strived to reduce energy consumption, CO2
emissions and waste output. Focusing on efficient energy
use and switching to energy-saving equipment, we haveworked to promote continuous improvement inenvironmental impact throughout the entire company.

Products

Energy saving,
resource saving

528.0 tons

Reductions in Environmental Impacts

4,090,000 sheets

Manufacture74.1 tons

Waste oil (sold for re-use, recycled)

Sub-materials

Others3

Development of
Eco-friendly products

Suppliers

99%

Cardboard boxes (sold for re-use)

511 klOSG
Design development

889.5 tons

Metal scrap

2,309.4 tons

Drainage water* Most drainage water is domestic drainage water.
* We have balanced our water use so that the amount ofdrainage water equals our water usage. 50–60% of actual
drainage water is estimated to be from the use ofwater-soluble coolants and the evaporation from air
conditioning, etc.

800,000(t/Million yen)(t)

60,00050,0001,000,000

151,765 m3

Waste Output and Ratio of
Recovered Valuables

21.4

20

19.4

600,000

17.6

18.6

18.7

30,00010

400,000

40,0001.21
0.95

20,000

0.82

0.96

0.97

10,000200,000

(t)

(%)

2.5

2,500

100

2

2,000

80

1.5

1,500

60

1

1,000

0.5

500

0

0

53%

50%

52%

52%

54%

40

20

Atmospheric Emissions
0

CO2 emissions
Production

51,484 tons-CO2

13

14

15

16

17

0

Electricity
Fuel oil (Generating electricity)
Liquefied petroleum gas Basic unit of production

0

13

14

15

Emission
Comparing production output

16

17

13

14

15

Total weight of emissions
Ratio of recovered valuables

16

17

0

Environmental Activities

Eco-Friendly Products and Services

Revolutionary 1-Pass Thread Mill AT-1

OSG is striving to produce eco-friendly products and provide them to our customers. We are actively working to reduce

Features
Right-Hand Cut and Left-Hand Helix Geometrythat enable high speed and long-life.

The AT-1’s right-hand cut and left-hand helix geometry begins the cutting process from the shank side, thereby
reducing deflection. With the elimination of zero-cutting, which is used for the correction of deflection, longer tool
life can be achieved.

Carbide Material Recycling

AT-1(Left Hand Helix)

Raw materials of carbide tools include rare metals such as
tungsten and cobalt.
OSG group promotes recycling of carbide tools. For
customers’ CSR activities and zero-emission promotion, we
utilize these resources by collecting end-of-life tools from ourcustomers and recycling rare metals.

Conventional Thread Mill
(Right Hand Helix)

Unit: mm

Customers(Carbide tool users)

Nihon
Hard Metal
Co., Ltd.

OSG

Materials

Collection

Starts cutting from the tip→ Big deflection

Inner Hole Area

Dia. Difference

Right Hand
Helix

+0.120〜+0.140+0.040〜+0.060

0.060〜0.100

Left Hand
Helix+0.120〜+0.140+0.120〜+0.140

0〜0.020

Pitch diameter measurement method:
Step gauge

Unequal Spacing and Variable Lead Flute(Cemented
Carbide material
manufacturer)

manufacturers

Starts cutting from the shank side
→ Reduced deflection

Hole Entry(Carbide
tool manufacturer)

Products

Conventional Thread Mill (2-pass)Handles pitch diameter
differences of 20μm or less.

Changes in pitch diameter with time (rendered image)By applying the unequal spacing and variable leadflute geometry for reducing vibration, thread
milling in one pass can be achieved, which enables
superior and consistent surface finish.

Unit: mm

0.14

Right Hand Helix

0.12

Left Hand Helix

0.1

Pitch dia.

05
Rare metals
such astungsten

Comparison of differences in internal thread pitch diameterat initial cutting stage

0.08
0.06
0.04
0.02
0

Regrinding Services

100

200

300

400

500

600

700

800

900 1,000

Number of processed thread holes

Cutting tools such as taps, end mills and drills become wornand dull after repeated use.
These tools can be returned to their original as-new
condition by regrinding. OSG group provides regrinding
services and meets customer’s various needs.

Before1

AT-1 (1-pass)

After

Variable lead flute

Cutting in 1-Pass
The AT-1’s unique tool geometry enables to generate threads in one pass, thus reducing machining time,
which contributes to the reduction of power consumption.

Unequal spacing

06

Environmental Activities

Eco-Friendly Products and Services

Revolutionary 1-Pass Thread Mill AT-1

OSG is striving to produce eco-friendly products and provide them to our customers. We are actively working to reduce

Features
Right-Hand Cut and Left-Hand Helix Geometrythat enable high speed and long-life.

The AT-1’s right-hand cut and left-hand helix geometry begins the cutting process from the shank side, thereby
reducing deflection. With the elimination of zero-cutting, which is used for the correction of deflection, longer tool
life can be achieved.

Carbide Material Recycling

AT-1(Left Hand Helix)

Raw materials of carbide tools include rare metals such as
tungsten and cobalt.
OSG group promotes recycling of carbide tools. For
customers’ CSR activities and zero-emission promotion, we
utilize these resources by collecting end-of-life tools from ourcustomers and recycling rare metals.

Conventional Thread Mill
(Right Hand Helix)

Unit: mm

Customers(Carbide tool users)

Nihon
Hard Metal
Co., Ltd.

OSG

Materials

Collection

Starts cutting from the tip→ Big deflection

Inner Hole Area

Dia. Difference

Right Hand
Helix

+0.120〜+0.140+0.040〜+0.060

0.060〜0.100

Left Hand
Helix+0.120〜+0.140+0.120〜+0.140

0〜0.020

Pitch diameter measurement method:
Step gauge

Unequal Spacing and Variable Lead Flute(Cemented
Carbide material
manufacturer)

manufacturers

Starts cutting from the shank side
→ Reduced deflection

Hole Entry(Carbide
tool manufacturer)

Products

Conventional Thread Mill (2-pass)Handles pitch diameter
differences of 20μm or less.

Changes in pitch diameter with time (rendered image)By applying the unequal spacing and variable leadflute geometry for reducing vibration, thread
milling in one pass can be achieved, which enables
superior and consistent surface finish.

Unit: mm

0.14

Right Hand Helix

0.12

Left Hand Helix

0.1

Pitch dia.

05
Rare metals
such astungsten

Comparison of differences in internal thread pitch diameterat initial cutting stage

0.08
0.06
0.04
0.02
0

Regrinding Services

100

200

300

400

500

600

700

800

900 1,000

Number of processed thread holes

Cutting tools such as taps, end mills and drills become wornand dull after repeated use.
These tools can be returned to their original as-new
condition by regrinding. OSG group provides regrinding
services and meets customer’s various needs.

Before1

AT-1 (1-pass)

After

Variable lead flute

Cutting in 1-Pass
The AT-1’s unique tool geometry enables to generate threads in one pass, thus reducing machining time,
which contributes to the reduction of power consumption.

Unequal spacing06

1-15 Honnogahara, Toyokawa, Aichi, 442-8544 Japan
Tel.+81-533-84-8929 Fax.+81-533-84-8952
E-mail : infoeco@osg.co.jp

Environmental
Report2018