Environmental
Action Report 2005

NTN corporation

Contents2
3

Editorial Line
Corporate Data
Message from the President
NTN Environmental Policy

Corporate Data
(As of March 31, 2005)

Corporate NameNTN corporation

Head Office

1-3-17 Kyomachibori, Nishi-ku, Osaka, 550-0003
Japan■ Environmental Management
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Organizational Structure of Environmental Conservation and Initiatives
Results for Fiscal 2004 and Targets for Fiscal 2005
Business Activities and Environmental Hazard/
Environmental Accounting
Actively Developing Products that are Eco-friendly
Environmental Management System
Expansion of Our Environmental Management System
Environmental Communications

Phone: 81-6-6443-5001 (switchboard)
Date founded

March 1918

Date incorporated

March 1934

President

Yasunobu Suzuki

Number of Employees

5,465 (NTN corporation) 12,788 (Consolidated)

Fiscal term

March 31st

Capital¥39.6 billion■ Environmental Conservation Activities

Net Sales¥292 billion (Consolidated: ¥388.3 billion)

To Prevent Global Warming
Reduce Waste/Prevent Air, Ground and Water Pollution
Promotion Activities to Protect Resources
Activities to Reduce Environmental Impact ofTransportation
TOPICS/Construction of NTN R&D Center
Environmental Conservation Efforts at NTN
Operating Sites
Environmental Conservation Efforts at NTN
Domestic Operating Sites
Environmental Conservation Efforts at NTN
Overseas Operating Sites

Stock

Listed on the first section of the Tokyo Stock
Exchange and the Osaka Securities Exchange■ Total Assets and Shareholders’Equity (Consolidated)■ Trends in Net Sales andIncomes (Consolidated)

Results of the NTN Environmental Action Report
2004 Questionnaire

Editorial LineAt NTN Group, we have been conducting ourbusiness activities with the concept “Coexist withthe environment” in all departments from thedevelopment and production of products todistribution and service. Since we issued our first
Environmental Action Report in 1999, we have used
this report to disclose important information to all
our stakeholders -- our investors, stockholders,
suppliers and customers, subcontractors and thoseresiding near our plants. In this report, we will
introduce the environmental actions that the NTNGroup and its employees have taken as part of ourdaily business activities.
We refer to the Environmental Report Guidelines
2003 issued by the Ministry of the Environment andfocused on the results of our activities for fiscal
2004 (April 2004 thru March 2005). (*Some contents
are from after fiscal 2004) In addition, we took great
effort to give detailed accounts in terms that areeasy to understand. We hope that through thisreport, the proposition “Conserving the global
environment” will bring us (join us) together.
To promote better environmental activities, we
await your candid opinions and suggestions. The
opinions obtained through the attached questionnaire will be used to improve our activities, therefore we appreciate your cooperation.
June 2005

NTN corporation Environmental Action Report 2005

■ Sales by Division (Consolidated)■ Sales by Region (Consolidated)Aiming to Coexist with the Global Environment
At the NTN Group, we ask ourselves what we can do as inhabitants of this planet-- and we understand the importance of taking action

NTN corporation Environmental Action Report 2005

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Message from the President

Environmental problems have become increasingly serious on a global levelsuch as global warming, increased pollution, and the depletion of resources.
We must move beyond the framework of country, company and region and ask
ourselves “what should we do to solve environmental problems?” and takeaction accordingly.
The bearings and constant velocity joints that the NTN Group provides are
essentially “eco-friendly products” in that they reduce energy loss and improve
efficiency and we are actively promoting the development of environmentally
responsive products -- striving for compact size, low torque, high efficiency andlonger life. Additionally, for future environmental conservation, we are actively
introducing wind and solar power generation systems with the understandingthat the utilization of natural energy is the key to conservation. Using ouroriginal technology, we are developing and commercializing “high performance
bearings for wind power generators.”
With regards to the main items we set up the previous fiscal year (such as
global warming prevention and the reduction of waste materials), we have met
our environmental targets. For CO2 emission, at present, we have met the
reduction targets of trade organizations (The Japan Bearing Industrial Association cooperating with the Japan Business Federation) and NTN’s voluntary
reduction targets. However with the issuance of the Kyoto Protocol this February, further voluntary efforts are anticipated and we will set still higher targets
for fiscal 2010 and work to reduce CO2 emission.
We at NTN are working to expand our environmental management fromdomestic to overseas and to include our suppliers. With regards to ISO14001,
NTN Omaezaki Works (domestic), NTN-NIDEC (ZHEJIANG) CORP (China),
and GUANGZHOU NTN-YULON DRIVETRAIN CO., LTD (China) have been
newly added giving us a total of 13 domestic operating sites and 12 overseas
operating sites with the certification. This fiscal year we aim to achieve the ISO
certification at one domestic site and one overseas site that recently started
operations. Additionally, we have requested of environmental certification fromall our major suppliers and are working to expand this circle of environmental
management. We support the certification process for suppliers with smaller
operations and in order to reduce the expense of these processes, NTN hassuggested a simpler certification level, “Eco Stage Introductory Level,” to be
accepted at the examining authority and we hope this will lead to an expansion
in the acquisition of the certification.
The NTN Group has begun efforts with our midterm management plan “Rapid
Advance 21” and through the “Monozukuri movement” we have promoted theefficient use of all production resources such as human resources, raw materials, and energy. At the NTN Mie Works, opened the previous fiscal year as amodel Monozukuri plant, we worked to make the production facilities morecompact and utilize natural energy and strove to reduce the environmental
impact.
We have compiled these efforts into the “Environmental Action Report 2005.”
We have incorporated the opinions and suggestions of our past readers andtried to make the layout easier to understand. We hope that you will take thetime to review this report. We invite our investors, stockholders, and suppliersand customers to submit their candid opinions and suggestions so that we canrefine our environmental conservation activities.

Yasunobu Suzuki
President
NTN corporation

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NTN corporation Environmental Action Report 2005

NTN Environmental Policy

Basic Concept
Advocating harmony with the global environment is our most important issue and we will makeconstant efforts to contribute to the harmonious development of society, while aiming to reduce
environmental impacts and contribute to a recycling society.

Action Guideline
In connection with its manufacture and sales of bearings, constant velocity joints and precisionequipment, the NTN Group will comply with the following guidelines, which state our commitment
to continuously reduce harm to the environment from our business activities, products andservices and to maintain a safe environment for the future.

1. NTN will contribute to world-wide energy conservation by developing and providing eco-conscious
products using state-of-the-art high precision techniques and friction-reducing technology.
2. NTN not only will comply with the standards and requirements set forth in applicable governmental
laws and regulations but also with customers’ requirements and internal standards, which NTN will
establish as it deems necessary.
3. Beginning at the research, development, and design stages, NTN will endeavor to reduce harm to
the environment.
4. In its purchases of raw materials, parts, and equipment, NTN will take into account protection of
the environment, preservation of resources and more efficient use of energy. In its production andsales activities, NTN will endeavor to reduce energy consumption and waste generation andpromote recycling.
5. NTN will endeavor to implement production methods and distribution systems that have lessenvironmental effect in terms of use of resources, energy, pollution, and waste.
6. NTN will conduct environmental audits and will endeavor to maintain and improve corporate
environmental management systems.
7. NTN will cooperate in programs for environmental protection conducted by national and local
governmental entities and will participate actively in regional environmental activities.
8. NTN will conduct environmental education and company-wide promotion activities. NTN will
promote improved awareness of this Environmental Policy and environmental protection to all
persons working for and on behalf of NTN Group.

Kenji Okada
Managing Director
Chief Environmental Management Officer
NTN corporation
April 1, 2005

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To Coexist with the Environment— Environmental Management —At NTN, we aim to coexist with the global environment,
and we strive to fulfill all legal standards and to achieve our voluntary targets.

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Environmental Management

Organizational Structure of Environmental
Conservation and Initiatives

NTN Group’s Environmental Conservation Structure
At NTN, we have established the“NTN Environmental Policy” and all
our business activities are basedon it. We have made continuousand coordinated efforts to reduce
environmental hazards and our aim
is to coexist with the global environment.
Our environmental conservation

activities started in 1993 with theestablishment of the Environmental
Conservation Committee in all
departments (including the head
office, R&D, manufacturing, sales
and logistics). This committee waslater renamed the Environmental
Management Committee andpromotes efforts in environmental

conservation. The Environmental
Management Department is thehead office for environmental
conservation activities for the entire
company and the Environmental
Management Division* at each site
plays a central role in the activities ofthat location.

* At some sites, the Management Section or the General
Administration Office is in charge of this operation.

■ Chronology of the NTN Group’s Environmental Conservation Initiatives
FiscalYear
1993■ The Basic Environment Law is established■ 1,1,1-Trichloroethane phased out

1994■ The Basic Environment Plan is settled■ CFC113 phased out

1995

Details of Efforts■ Environmental Conservation Committee established■ Iwata Works begins preparations to acquire ISO14001
certification■ Environmental Management Guide established■ Changed the Environmental Conservation Committee tothe Environmental Management Committee■ Iwata Works acquires ISO14001 certification

1996■ Containers and Packaging Recycling Law is established■ ISO14001, JISQ14001 established

1997■ The Kyoto Protocol is adopted

1998■ Legislation established for the promotion of global warming
countermeasures■ A total of 13 operating sites acquired ISO14001 certification (multi-site)■ Issued first edition of NTN Environmental Action Report

New laws, International treaties established■ Law Concerning Special Measure against Dioxins established
1999■ PRTR Law established■ Development of ECO series product■ Trichloroethylene phased out■ Disclosed Environmental Accounting■ The Basic Law to promote the creation of a recycling society
2000■ Law on promoting green purchasing established■ Iwata Works transferred to ISO14001 (multi-site)■ Dichloromethane phased out■ PRTR Law Countermeasures (database)2001■ Zero emission targets established■ Respond to EU’s End-of-Life Vehicles Directive■ Start manufacture and distribution of grinding swarf
briquetting machine■ Achieved zero emission for all domestic operating sites■ Incorporated NTN Casting into ISO14001 (multi-site)■ Law for Promotion of Effective Utilization of Resources established■ Soil Contamination Countermeasures Law established

2002

2003

■ Incorporated NTN Omaezaki Works into ISO14001 (multi-site)■ Completed cleanup of polluted ground at old operating sites(Kishiwada and Kawachi Nagano, Osaka)■ Law Concerning Special Measures against PCB Waste issued■ Automobile Recycling Law established■ Revision of the Waste Disposal and Public Cleaning Law■ Implementation of Soil Contamination Countermeasures Law■ Kyoto Protocol was put into effect

2004■ ISO14001 revised■ Implementation of Automobile Recycling Law
NTN corporation Environmental Action Report 2005

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Environmental Management

Results for Fiscal 2004 and Targets for Fiscal 2005

Results for Fiscal 2004

As our environmental goal for
fiscal 2004, NTN upheld 13 concrete targets (domestic: 11 items,
overseas: 2 items) in three categories: “Conservation of global
environment,” “Contribution to a
recycling society,” and “Maintenance and improvement of environmental management system.” As a
Objective
Conservation of
Global Environment

result, we were able to meet ourtargets for 11 items, such as the
reduction of CO2 and maintaining
zero emission (domestic).
Concerning the promotion of zero
emission, we were able to maintaina high standard of 99% in Japan,
but for overseas, which we added
to our target last year, we wereunable to achieve zero emission. In
the future, we will promote activities to improve various forms ofrecycling overseas.
Target for Fiscal 2004

Reduce CO2
emission

In addition, with regards to theconservation of resources such aswith packing materials and recoverable resources (Styrofoam, cardboard, paper, etc.), we have met all
our number targets. Our voluntarytarget of phasing out coolants that
contain chlorine is not a legal
restriction, and we were unable tomeet our target. We will continue towork towards an early phase out ofchlorine in coolants.

Result for Fiscal 2004

Evaluation*1) Page

Domestic • CO2 emission rate:*2)
17% reduction relative to fiscal 1997

• CO2 emission rate:
18% reduction relative to fiscal 1997

Overseas • CO2 emission rate:
2% reduction relative to fiscal 2002

• CO2 emission rate:
4% reduction relative to fiscal 2002

Domestic • Number of halon extinguishers
replaced with carbon dioxide
extinguishers: 175 units or more

• Number of halon extinguishers
replaced with carbon dioxide
extinguishers: 198 units or more

P18

Domestic • Complete phase out of coolantsthat contain chlorine• Number of switches from coolants
containing chlorine: 3 (2 switches left)

P18

Domestic • Complete decontamination of thetwo closed operation sites• Decontamination of the two closed
operation sites completed

P19

Domestic • Promote zero emission:
recycle rate 98% or more*3)• Promote zero emission:
recycle rate 99%

Overseas • Promote zero emission:
recycle rate 94% or more

• Promote zero emission:
recycle rate 87%

Domestic • Styrofoam:
75% reduction relative to fiscal 1999

• Styrofoam:
79% reduction relative to fiscal 1999

Domestic • Use of cardboard boxes:
18% reduction relative to fiscal 1998

• Use of cardboard boxes:
19% reduction relative to fiscal 1998

Domestic • Paper consumption:
20% reduction relative to fiscal 1998

• Paper consumption:
23% reduction relative to fiscal 1998

Domestic • Paper recycle rate:
maintain 100% or more

• Paper recycle rate: 143%

Domestic • Switching from various controlled
substances• Promoting switchover from phthalate
estersDomestic • Support the acquisition of ISO14001
and Eco Stage for suppliers• Held EMS establishment seminars• Started certification support for Eco
Stage Introductory Level as a trial
activity

P17

Prevent air, waterand ground pollution

Create Recycling
society

Reduce waste

P18

Protect resources

Maintain and improve Promote green
environmental
procurement
management structure

Promote environment
management of the
supply chain*1) Symbols for evaluation:achieved/promoted,

not achieved*2) CO2 emission rate (ton/million yen) =CO2 emission (ton)Sales added value amount (million yen)

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NTN corporation Environmental Action Report 2005

*3) Recycling percentage (%) = 1 —Final amount disposed of by landfill (tons)
Total amount discharged (tons)

P19

P20

P13

P14

X 100

Environmental Target
for Fiscal 2005
The environmental targets forfiscal 2005 were based on theefforts and results of fiscal 2004.
This year’s targets also included
concrete items to further reduce
environmental hazard.
For “Conservation of global
environment,” we are working to
reduce environmental hazards bypromoting activities such as CO2
emission reduction and development of eco-friendly products.
Additionally, we have expanded theregional environmental preservation activities at Iwata Works andstarted participating in local
greening activities on a corporate
level.
For “Create a recycling society,”
we continued our efforts to maintain zero emission in Japan andexpanded use of the grinding swarf

Objective

Target for Fiscal 2005

Conservation of the
global environment

Reduce CO2 emission Domestic • CO2 emission rate: 20% reduction relative
to fiscal 1997
• Energy conservation diagnosis andimprovements for major Works
Overseas • CO2 emission rate:
2% reduction relative to fiscal 2004
Prevent air, water and Domestic • Number of halon extinguishers replaced withground pollution
carbon dioxide extinguishers: 115 units or morebriquetting machine to overseas
sites in order to promote zero
emission.
For “Maintaining and improving
the environmental management
system,” we enhanced our environmental hazardous substancemanagement system and promoted
voluntary elimination to improvegreen procurement.

Target for Fiscal 2010
• CO2 emission rate:
25% reduction relative to fiscal 1997

• CO2 emission rate:
10% reduction relative to fiscal 2002
• Phasing out of halon extinguishers

Domestic • Elimination of coolants with chlorine:phase out (2 remaining)
Domestic • Response to Soil Contamination
Countermeasures Law
Promote the develop- Domestic • Sales amount for eco-friendly products:
ment of eco-friendly+10% relative to fiscal 2004
products• Sales amount for eco-friendly products:+60% relative to fiscal 2004

Participation in Regional Domestic • Participation in regional green activities
Environmental
Preservation Activities
Create a Recycling
society

Reduce wastematerials

Protect resources

Maintain and improve Promote green
environmental
procurement
management structure

Domestic • Promote zero emission:
recycle rate 98% or more

• Continue Zero emission

Overseas • Promote zero emission:
recycle rate 94% or more

• Promote zero emission:
recycle rate 98% or more (target for fiscal 2006)

Domestic • Styrofoam:
84% reduction relative to fiscal 1999

• Complete phase out of Styrofoam

Domestic • Paper consumption:
28% reduction relative to fiscal 1998

• Paper consumption:
50% reduction relative to fiscal 1998

Domestic • Establish environmental hazardous substancemanagement structure• Establish green procurement policy• Respond to customers’ audits• Promote elimination of phthalate esters

Promote ISO14001
Domestic • Acquired the certification for NTN Mie WorksMulti-Site Certification
Promote environment Domestic • Support suppliers’ acquisition of ISO14001
management of theand others
supply chain
Respond to new laws Domestic • Respond to ISO14001 (2004 version)• Respond to revised Energy Conservation Law• Respond to VOC emission control

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Environmental Management

Business Activities and Environmental Hazard/
Environmental Accounting

Business Activities andEnvironmental Hazard● INPUT and OUTPUT in
Manufacturing
For fiscal 2004, the production
amount (INPUT) for NTN as a wholeincreased 12% in relation to theprevious year. However, as a resultof energy conservation measuresand efforts towards zero emission,
we were able to keep CO2 emission(OUTPUT) down to a 9% increase.

● Increased economic effectthrough environmental
accounting

Environmental
Accounting

In NTN’s environmental accounting
for fiscal 2004, the total cost forenvironmental equipment andenvironmental preservation was¥4,376 million. The financial effect ofenvironmental preservation activities
exceeded that of the previous year at¥356 million.

■ Environmental preservation costs

Unit: million yen / year

Environmental
Equipment Investment

Environmental
Preservation Costs

Pollution prevention costs

46

138

Global environmental preservation expenses

207

144

Resource recycling expenses

41

507

0

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Classification of Environmental Preservation Costs
1) Cost of in-factory facilities(Environmental preservation cost for inhibiting environmental
hazards caused by business activities)2) Upstream/downstream expenses (Environmental preservation cost for inhibiting environmental hazard
caused upstream and downstream from the business activities)3) Management activity expenses (Environmental preservation cost for management activities)4) R&D expenses (Environmental preservation cost for R&D)

217
2,315

5) Social activity expenses (Environmental preservation cost for social activities)

0246) Environmental remediation expenses (Cost for environmental remediation)

0

45

Grand total

975

3,401

(Reference) Grand total for previous year

2,086

3,482

■ Impact of environmental preservation
Indicator

8

0
681

Result (for fiscal 2004)■ Financial effect of environmental
preservation activities

Unit: million yen / year

Items

AmountCO2 emission rate

18% reduction relative to fiscal 1997

Cost reductions through resource conservation

71

Reduction of waste

Recycle rate 99%

Cost reductions through energy conservation

149

Reduction in cardboard box
purchase factor

19% reduction relative to fiscal 1998

Cost reductions of waste treatment through the recycling

136

Grand total

356(Reference) Grand total for previous year320

NTN corporation Environmental Action Report 2005

Environmental Management

Actively Developing Products that are Eco-friendly

Significantly Improved Yield Rate
“Multi-Repair System for LCD Color Filters”— NTN Is Everywhere You Look —NTN has developed a multi-repair
system that reduces the failure rate
(number rejected) by automaticallycorrecting minute defects in the LCD
color filter used in LCD screens of
television sets and personal computers (joint development with Takano
Co., Ltd.).
The size of Color filter boards usedin devices such as LCD television
sets is getting larger and larger andthe demand for LCD television sets
is growing and there is an increasingneed for defect correction equipment to reduce the failure rate of
LCD color filters. There are threemajor types of defects in LCD color
filters, “black defect,”*1) “white
defect,”*2) and “particle defect”*3) andthus far there was no single solution
to correct all defect types so it wasnecessary to combine the use of
several types of equipment depend-ing of the type of defect. Because ofissues such as investment costs,
installation area and correction time
when using several different types ofequipment, the appearance ofequipment that could correct all
types of defects was greatly anticipated.
Under these circumstances, NTN
developed and commercialized amulti-repair system that can correct
the three major defect types of color
filters by fusing NTN’s “Ink coating
technology” and “Laser cutting
technology” with Takano’s “Tapepolishing technology”.
We were awarded the Grand Prizein the test/repair category of the“Advanced Display of the YearAwards 2004”*4) in recognition of thisoutstanding function.

*4) An award given to exceptional products outof all the new flat panel display related
products (screen display devices such as
LCDs and plasma) released in fiscal 2003.

9th Advanced Display of the Year 2004
Color filters are made up of four colors, R(red), G (green), B (blue) and BK (black) andeach pixel of RGB is lined up regularly and theborder of each color is separated with BK.

Example of the correction of white
defect using ink coating*1) Black defects: when BK is mixed in R, G
and B pixels turning it black, or when othercolors are mixed.
*2) White defects: when a pixel is not colored.
*3) Particle defects: when the colored part ofthe pixel sticks out of the surface or whena foreign particle is attached and sticking
out.

Foreign particle

Remove foreign
particle with laser

Coat coloring

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Environmental Management

Actively Developing Products that are Eco-friendly

Development ofEnvironmentally
Responsive Products● Ball screws for mechanicalautomatic transmission
electromotive
Improved
actuator
fuel-efficiency
Improved fuel-efficiency inmechanical automatictransmission vehicles andoperating performance
We began the commercial production of ball screws for electromotive
actuators for gear switching inmechanical automatic transmission
installed in trucks. The electromotive
types allow for a simpler structure
than conventional types (air andhydraulic) and by using NTN ballscrews we were able to reduce drive
train loss significantly and improve
the fuel-efficiency of the automobile.
We are currently developing ballscrew units for electromotive actuator of control devices surrounding thebrakes and engine, and so on.

Bearings are essentially “eco-friendly products” because they reduce frictionand energy loss. At NTN, we are actively promoting the development of“Environmentally Responsive Products” that are at the top of eco-performancewith compact size, low torque, high efficiency and longer life and contributing to
the reduction of global environmental hazards.

● Lightweight compact constant velocity joint “EPTJ”
World’s lowest vibration and lightweight & compact
Constant velocity joints convey theengine’s power to the wheels. Throughoptimal design using computer analysis,
we were able to improve vibration
characteristics which affect the ride
quality (NVH performance) of theautomobile (50% reduction in vibration
value relative to conventional CVJs) andat the same time made it lightweight(8% reduction relative to conventional
CVJs), and compact (4% reduction in
overall size relative to conventional
CVJs).

● “Double row thrust needle roller bearing” for car
air conditioning and A/T t ransmission

Long life,
low torque

Attained longer life and lower torque for bearing by making therollers double row
In recent years, the lubrication
conditions for automobile bearings
have become increasingly severe
and there is a greater need forbearings with longer life. Through the
double alignment of rollers and the
optimization of the roller shape, wehave achieved longer life, lower
torque, and lower noise. This
contributes to resource and energy
conservation.

10 NTNNTN corporation
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Compact &lightweight

For automatic transmissions

For car air conditioner
compressors

● “RustGuard TM” Improved corrosion-resistance inbearings for steel mill machinery
Long life

Improved corrosion-resistance and realized 3.5 times longer life
relative to conventional goods
NTN attained longer life forbearings used in steel mill machinery
used in harsh environments -- suchas exposure to excessive water orscales (iron powder). We use special
heat treatment and improved
resistance to rolling fatigue while
improving corrosion-resistancesignificantly by applying NTN’s
proprietary manganese phosphatecoating.

● New Series of Spherical Roller
Bearings
Long life“S-TITAN TM”
Adapt long-life steel andoptimal design toproductworld’s longest life andhighest dynamic load rating
Spherical roller bearings arebearings with barrel shaped rollers
that are self-aligning and used invarious industrial machines. By
adopting long-life, high-temperaturesteel for S-TITAN, we were able toincrease life by a factor of 30 at atemperature of 200°C and improveload carrying capability by 50%
compared with conventional bearings.

● Wing turbine bearing

High-performance

Proprietary technology incorporated into high-performance
bearings
Used in the nacelle (the section where the power generator, accelerator, andbrakes are stored) of wind power generators, this technology encourages theuse of natural energy. Spherical roller bearings are used for the main shaft,angular contact ball bearings for reducers, cylindrical roller bearings for accelerators, and insulated bearings for power generators (MEGAOHM® series).

Main spindle

Power generator

Reducer

Step-up gear

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Environmental Management

Environmental Management System

Present State of ISO14001 Certifications
In 1999, NTN acquired multi-site
ISO14001 certification for 11
domestic operating sites (headquarters, 5 plants and 5 affiliates) and weare working to expand this circle.
In 2004, NTN Omaezaki Works(domestic), NTN-NIDEC (ZHEJIANG)
CORP (China), and GUANGZHOUNTN-YULON DRIVETRAIN CO., LTD.
(China) acquired certification.
For details on the location andcertification of our domestic
and overseas operatingsites, please refer to pages
22 to 36.

NTN-NIDEC (ZHEJIANG) CORP GUANGZHOU NTN-YULONDRIVETRAIN CO., LTD.
ISO14001 Certificate
ISO14001 Certificate

Comprehensive Auditing System
At NTN Group, we have anenvironmental audit system so that
our environmental management
structure functions properly. We
conduct both “reviews by externalorganizations” and “internal audits at
operation sites” and starting fromfiscal 2004 we have “cross auditing”
in which operating sites audit eachother.

● ISO14001 Periodic
Maintenance Evaluation
The domestic NTN Group operating sites have completed theacquisition of multi-site ISO14001
certification.
At the maintenance evaluation
conducted last November, NTN
Omaezaki Works received its
certification and was incorporated
into the NTN Group multi-site
certification.

Receiving ISO14001 Periodic Maintenance Evaluation● Customers’ Environmental
Auditing
We underwent environmental
audits by two of our customers infiscal 2004. NTN’s environmental
management structure received highratings and we received accreditation as a supplier.
Customer’s certificates

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NTN corporation Environmental Action Report 2005

Compliance with Legal Requirements● Compliance with
Regulations and Voluntary
Measures
For the “ELV directive,”*1) whichtargets automobiles, and the “RoHS
directive,”*2) which targets electricand electronic devices, we haveswitched all bearing parts to thosethat do not contain toxic substances(starting in October 2003). For
automobile CVJs, we have proposed
replacement materials (lead-freegrease) to our users from March
2003 and realized complete phaseout of toxic substances.
At present, we are promoting thecomplete phase out of phthalate

ester*3), which was newly added to
CMR substances*4) targeted by EU
restrictions. This is a chemical
substance that is used as an additivein rubber seals and boots for CVJs
and we are promoting a switch toreplacement materials in preparation
for complete phase out by the end of2007 (NTN voluntary target).
At NTN, we not only comply withlegal requirements but also actively
set voluntary targets and phase-outs
ahead of other companies for any
substance with a heavy environmental hazard or that are suspected ofbeing toxic.

*1) targets of the ELV directive (End of Life
Vehicles): lead, mercury, cadmium, andhexavalent chromium.
*2) targets of the RoHS directive (Restriction of
the use of certain Hazardous Substance inelectrical and electronic equipment): thesubstances above + brominated flame
retardants*3) Phthalate esters: a type of organic chemicalthat is partially restricted by the EU directive(2003/36/EC) for suspicions raised abouthuman toxicity.
*4) CMR substances: substances that areconsidered to be C (carcinogenic), M(mutagenic) or R (Toxic to Reproduction).

● NTN employees withqualifications
At NTN, in order to deal with thelegal requirements, we are promoting
the acquisition of various qualifications.

Lead-free grease for CVJ

Rubber seals and boots for CVJ that arephthalate ester switchover targets(As of March 31, 2005)
Major Qualifications

Number of Employeeswith Qualification

Energy Management
Qualifications

Qualified electrical energy manager
Qualified thermal energy manager

19

Pollution Prevention Manager

Air (categories 1–4)

28

Water (categories 1–4)

47

High-pressure Gas
Manufacturing and
Security Manager

Chief Electrical Engineer

17

Noise

22

Vibration

17

Refrigerating equipment categories 2, 3

11Categories A and B Chemical

12

Category C Chemical/liquefied petroleum gas

76

Category C Chemical/special test items

47

Category B Machinery

2

Categories 1, 2

6

Category 3

44

Environmental Measurement Analyzer

5Working Environment Measurement Expert (Type 1, Type 2)2Manager of Specially Controlled Industrial Waste

23

Manager of intermediate treatment facility for industrial waste

5Manager of poisonous and harmful substances

15

Assistant Auditor for ISO14001 Specification
Total

Newspaper article on the elimination of phthalate ester(March 3, 2005 Nikkei Sangyo Shinbun)

3401

NTN corporation Environmental Action Report 2005

13

Environmental Management

Expansion of Our Environmental Management System

Supporting Environmental Management System
Certifications
At NTN, in efforts to expand ourenvironmental management system
to include our suppliers, we haveasked our major suppliers to acquire
Environmental Management System
Certifications (ISO14001 or private
certification such as Eco Stage*1))
and at the same time we haveprovided support for these certifications through the NTN Technical
Service*2). These efforts are the firstof their kind in the bearing industry
and about 50% of our major suppliers have acquired certification.
Through these efforts we havereconfirmed the importance of taking
the first step in environmental
management and the reality that it isdifficult for small companies to takethe first step because the cost is toohigh. With this in mind we approached the Eco Stage Instituteand advocated the need for a
simpler certification level and as aresult the “Eco Stage Introductory
level” that we proposed was introduced last year as a trial certificationlevel.
In the future, by accruing cases of
NTN’s support activities, it is expected that this will be approved as
an official certification level. We
believe that this will contribute toenvironmental management efforts
not only at our suppliers but at small
companies nationwide.

*1) A consumer specification of the Eco Stage
Institute (Limited Responsible Intermediate)*2) A wholly owned subsidiary of NTN. It conducts support activities such as certification
consulting as an Eco Stage certification authority.

Environmental Management System Seminar

The newly-established NTN Environmental Award
Starting from the previous fiscal
year, we established the “NTN
Environmental Award” and awarded
suppliers and operating sites thathave achieved significant resultsfrom exceptional environmental
activities. The suppliers thatreceived awards were Komori Seiki
Co., Ltd., which acquired
ISO14001 certification in a shortperiod of time, and three companies that received the Eco Stage
Level 1 -- Koide Ironworks Co.,

Ltd., Goto Chemical Co., Ltd., andMatsumura Ironworks Co., Ltd.
In addition, three operating sites
were presented the award including
Iwata Works, which was actively
involved in greening activities.
We will continue to present the
NTN Environmental Award to
exceptional environmental efforts inhope of raising awareness about theenvironment and improving the levelof our environmental conservation
activities.

1st NTN Environmental Award Ceremony

Environmental Information-sharing Meetings
with Denso Corp.
Last November, Denso Corp.
(Daian Plant) and NTN (KuwanaWorks) held an environmental
information-sharing meeting. We
shared valuable information related
to the theme of energy conservationby presenting examples of our efforts
onsite and introducing new equipment.

NTN presented examples ofenergy conservation through the useof demand control (collective
management system) to conduct
centralized control of air conditioning
packages and the effects of thegrinding swarf briquetting machine.
There was a vigorous exchange ofideas and we have continued
communication since then.

Demand Control System that conducts centralized control of air conditioning packages
14

NTN corporation Environmental Action Report 2005

Environmental Management

Environmental Communications● Created Poster to Heighten
Environmental Consciousness

Environmental
Communication Tools
At the NTN Group, to let all of our
stakeholders know our environmental activities, we conduct variouspress activities such as issuing an
Environmental Action Report andmaintaining a website.
Additionally, we have a page forenvironmental issues in our company newsletter with the basic
information we would like our
employees to understand, such as
the contents of the EU Directive toregulate toxic substances and ourcountermeasures, written in easy tounderstand terms so that each of
our employees understands the
background and importance of ourenvironmental activities.

Environmental
Education and Social
Contribution
At NTN, we are committed toeducating our employees and theirfamilies about the environment. By
being actively involved in local
beautification efforts and planting
activities, we hope to raise environmental awareness in the NTN Group
as a whole while at the same time
contributing to the local communities.

● Iwata Works Regional
Greening Activities
At Iwata Works, we are conducting
greening activities such as improving
the local woodlands. In fiscal 2004,
160 people, including 100 employees
and their families and the local
volunteer group “Green YouthGroup,” took part in the planting of
450 azaleas in the woodlands near
Iwata city and built and installed 6

Planting Azaleas

NTN Group Newsletter

benches made from thinned wood.
Through a 3-year greening project,
we were able to plant our target of
1,000 azaleas and install a total of 11benches.

● Water Quality Conservation
Activities in the Kamiina Area
The Kamiina area, where theNagano Works is located, is rich with
natutral features such as the Tenryu
River system, and the conservationof the river’s water quality is an
important issue for the local community.

“Tenryu River Checkup”
Award

At Nagano Works, 24 employees
and their families took part in the“Tenryu River Picnic,” a riversideclean up activity supported by about
90 local companies. Additionally, we
monitored the water quality of Tenryu
River and cooperated 24 hours a dayin the “Tenryu River Checkup,” thewater quality measurement conducted around the clock as a joint
effort of the community to improve
the water quality.

At NTN Transmissions Europe(France), we created a poster that
presented our targets based on ourenvironmental policy in a beautiful visual
format and worked to familiarize our
employees with our targets. Specifically,
we listed our number targets for the
reduction ofelectricity, gas
and water use
and industrial
waste anddeclared that“the entire
company will
strive together
to meet ourtargets.”

These river beautification efforts by
the local community in the Tenryu
River area were awarded the “Japan
Water Award” encouragement prizein 2004 in acknowledgement of ourcontribution to the restoration of ahealthy water cycle.

● “Monozukuri” Support
Activities at Unsiversities
At NTN, we support “Monozukuri”
activities of students in university
clubs related to motor sports.
Not only do we provide ourcompany’s automobile products
such as bearings and constantvelocity joints free of cost, but wealso provide technical advice andhave provided support at a total of
14 universities.
At the “2nd Student Formula SAE
Competition of Japan” held in
Tochigi, last August and September,
12 of those universities participated
and the Shibaura Institute of Technology team (a team supported by
NTN) came in fourth place.

Nagoya Institute of Technology Racing Car
NTN corporation Environmental Action Report 2005

15

To Coexist— Environmental Conservation Activities —At NTN, we aim to coexist with the global environment.
We work with our communities to protect the earth’s rich natural features,
blessed land, and beautiful water.

16 NTNNTN corporation
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EnvironmentalAction
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2005

Environmental Conservation Activities

To Prevent Global Warming

Surpassed CO2 Reduction Targets
In fiscal 2004, for the CO2 emission rate*), we achieved 18%
reduction, surpassing our target of
17% reduction (relative to fiscal
1997). However, the Kyoto Protocol
was brought into effect this February,
raising expectations for morevoluntary efforts and we will continue
to make efforts to reduce CO2, bysetting more aggressive targets(fiscal 2005 goal: 20% reduction).
Major energy conservation
measures for the previous year
include efficient use of electricity andexhaust heat through co-generation,use of engine compressors during
summer months when the energy
demand is at its peak and energy
conversion from heat treatment
furnaces.

■ NTN’s CO2 emission by Energy Source■ Annual trends in CO2 emission rate

■ Energy Consumption (Yearly)
Electricity
PetroleumGas

512,492,000 kWh

Heavy oil A

3,519 kl

Kerosene

4,245 kl

Butane/propane

7,305 tNatural gas

3,217 km3

CO2 emission (ton)*) CO2 emission rate (ton/million yen) =Sales added value amount (million yen)

Major Energy Conservation Measures● Introduction of
Co-generation facilities● Reduced Electricity Costs● Constructed Up-to-datethrough the Mebius Link System
Energy Saving Plant

In the past, the NTN Group has
introduced co-generation facilities atfour operating sites. The power
generated is used onsite and by
utilizing heat exhaust, we are able toreduce CO2 emission.

At Iwata Works, we introduced the
Mebius Link System that conducts
centralized control of air conditioning
compressors and were able toreduce CO2 emission from excessive
cooling.
This system conducts centralized
control of several compressors in thebuilding using computers. Randomly
selected compressors are switched
off for several minutes during a given
period of time and air conditioning isswitched to fan and as a result wewere able to maintain a comfortableroom temperature while reducing
energy consumption.

NTN has completed the construction of the Mie Works as an up-todate plant with reduced environmental hazard. At this plant, we are
improving productivity through the“Monozukuri” movement and we are
actively utilizing natural energy byintroducing wind and solar power
generation.
Solar power generation panels
NTN Mie Works

Co-generation facilities(NTN Powder Metal Corporation)

Control equipment installed in outdoor
air conditioning units (3 unit group)Wind power generator
Computer for central control

NTN corporation Environmental Action Report 2005

17

Environmental Conservation Activities

Reduce Waste/Prevent Air, Ground and Water Pollution

Reduce Waste
At NTN, we defined “zero emission” as a recycle rate of 98% ormore and we have promoted efforts
in waste reduction. Last year, of theten domestic operating sites where
we set zero emission as a target, wewere able to realize zero emission at
all the sites. However, we were notable to achieve zero emission at NTN
Casting, where ISO14001 certification was acquired the previous year.
We are working to improve ourrecycle rate by utilizing waste slag
and waste sand discharged from thecasting process as base course
material.
Concerning the achievement ofzero emission at each operating site,

the effect of introducing the grinding
swarf briquetting machine was
especially significant and we wereable to recycle grinding swarf thatwould otherwise have ended up in
landfill treatment. This is because theswarf that was briquetted with thisequipment is recycled and used as
raw material (made into a valuable
resource) at steel manufacturers andthe recovered grinding coolants arealso reused in the process. With
regards to cost, we were also able tosignificantly reduce waste treatment
costs for landfills and such.
In fiscal 2005, we will actively
advance our efforts to maintain andachieve zero emission and spread
our efforts to our overseas sites andsuppliers.

■ Recycle rate and amount of landfill treatment● New release of ultra
compact grinding swarf
briquetting machine
NTN released an ultra compact
grinding swarf briquetting machine(GSB-15S) that has an installation
area that is 40% of the conventional
equipment. By meeting our customers’ needs such as price,processing power andinstallation area, we areable to compete withconventional equipment.

Efforts to Prevent Air Pollution● Going forward with our plan
to completely phase out
halon extinguishers
At NTN, we are working to switch
extinguishers to those that do notuse halon, an ozone-depleting
substance, by fiscal 2010. In fiscal
2004, we switched 198 units
compared to our target of 175. Thismeans we are progressing ahead of
our plan.

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NTN corporation Environmental Action Report 2005

■ Number of halon extinguishers remaining● Efforts to phase out
coolants containing
chlorine
At NTN, starting in fiscal 2000, we
set a voluntary target to completely
phase out coolants containing
chlorine and have worked to meetthis target. This is not an item that islegally restricted, but because there
is a possibility that toxic dioxins are
generated during the processing ofsolid residue and waste fluids, NTN
has been unique in dealing with thisitem.
Last year, we were able to switch
out three (of our target of complete
phase out), and we will phase out
the remaining two to complete phaseout during fiscal 2005.

Efforts to completely
decontaminate ground
Minor contamination with volatileorganic compound was found at two
closed NTN operating sites, and as aresult of a voluntary effort to decontaminate the ground, we were able tocompletely decontaminate the sites
last fiscal year.
The targets were old operatingsites located in Kishiwada and
Kawachi Nagano in Osaka and weused the Kimitsu method*) to conduct a detailed investigation into thecontamination and to decontaminate
the ground. Before beginning ourinvestigation and decontamination,
we held a briefing session for the
local residents and supervisory
authorities, got their consent andworked to provide information on thedecontamination process in a timely
manner.
As a result, the decontamination
was completed in Kishiwada inAugust 2004 and in Kawachi Nagano
this January, and we have received
formal approval of a complete
decontamination from the supervisory authorities. We also released
this result to the residents and got
their understanding.

Concerning the discovery of minor
volatile organic compound contamination during our periodic inspectionof the groundwater at KuwanaWorks, in compliance with theordinance of Mie Prefecture, we held
briefing sessions for the local residents’ associations and placed anannouncement in the newspapers.
We then conducted an investigationof the groundwater and the extent ofcontamination and we are now
conducting decontamination by
drawing water from the wells andutilizing activated carbon absorption.
In addition, as a result of conducting detailed investigation of theextent of contamination within theentire site, we discovered threelocations (including the one mentioned above) with the same minor
contamination. We will start decontamination work using the Kimitsu
method and expect to complete
decontamination by the latter part of2006.
*) This is a method in which complete
decontamination can be done efficiently bypinpointing the contaminated area throughdetailed investigation and contamination
studies and decontamination can be
conducted while operating. We plan on
using this method for the decontamination
work at Kuwana Works.

Ground gas investigation

Ground water remediation equipment

Ground water analysis

Environmental Conservation Activities

Promotion Activities to Protect Resources■ Trends in Amount of Styrofoam used

Reduction of packing
materials
1 Reduction of the use of●

Styrofoam
Last year we reached a 79%
reduction (compared with ourlongterm target of 75%) comparedto fiscal 1999.
Some of our major measures
include the use of alternative
materials such as “Oka Pack” which
is made out of soy pomace andrecycling/reusing Styrofoam.

“Oka Pack”

NTN corporation Environmental Action Report 2005

19

Environmental Conservation Activities

Promotion Activities to Protect Resources

2 Reduction in cardboard●■ Reduction of cardboard boxes

box usage

3 Reduced paper●

consumption
As a result of conservation
measures such as using both sidesof photocopy paper, aspiring to a“paperless office” by using computers, and reducing the amountprinted, we achieved a 23% reduction compared to our target of 20%
reduction in paper consumption
compared to fiscal 1998.

We achieved a 20% reduction
compared to our target of an 18%
reduction in the amount of cardboard boxes used relative to fiscal
1998. Some of our major measures
are the promotion of the use of“reusable containers” with customers
and reduction of the weight ofcardboard boxes. In fiscal 2005, we
will continue to work to reduce ourconsumption of cardboard boxes.

■ Annual trends in paper consumption

Reusable containers packaging style

Opened reusable container

Environmental Conservation Activities

Activities to Reduce Environmental Impact of Transportation
New Export
Distribution Center
Aiming for environmental
hazard reduction andstreamlined logistics

The new “Export Distribution
Center” that was completed in
Kuwana, Mie in May 2005, takes
advantage of its convenient locationnear the Port of Nagoya, the shipping port, and production plants tostreamline logistics for our company
as a whole. NTN has improved
logistics efficiency by 22% on a tonkilometer base (t-km)*) for domestic
shipments.

Additionally, in order to reduce
environmental hazards, we installed
an output 10kW vertical axis wind
power generator (SVAT Wing
Turbine) at the plant site and use it topower the lighting within the center.
We also adopted low power consumption light-emitting diodes forour company sign on the exteriorwall to conserve energy.
*) Weight of shipped load (t) times the shipping
distance (km)NaganoShimaneKobe Kuwana
Okayama
Osaka

NagoyaIwata

Wind power generator
20

NTN corporation Environmental Action Report 2005

Light-emitting diode exterior wall sign■ TOPICS ■Constructing the NTN R&D Center to strengthen thedevelopment of eco-friendly products■ “Creating Value”
NTN is currently implementing the
medium term business plan “Rapid
Advance 21” as a priority measure
and conducting reforms to “create
value” under the concept “design
determines everything.”
The NTN R&D Center that wascompleted September 2005 in the
Iwata area, will support rapidly
developing technical innovations
worldwide, respond to borderlessmarkets and will serve as the“mother center” for the global supplyof new products and technologies.
Overseas, in addition to our America
Technical Center in the North
American area, in 2005 we willreorganize our technology base inEurope and in 2006 we plan on
constructing a technical center in the
China Changzhou area. Once thesecenters are completed at the end of
fiscal 2006, we will have establishedour research and technology systemat four points worldwide including
China.

■ Development of Next
Generation Environmental
Energy Products■ A Place to Experimentusing Environmental
DesignAt this center, not only do we
conduct technological development
for existing operations, we will
strengthen the development of new
products in the cutting-edge fields ofnext-generation automobiles,
environmental energy, medical careand robotics. We have reinforced our
specialty division for the purpose of
applied research in electronics andwe will develop new products whichhave substantial market potential ora major technological application
potential in cutting-edge areas suchas next-generation automobiles,
environment, and welfare.

Concerning the facilities anddesign of the building, we considered it an opportunity to experimentwith environmental devices such as
seismic isolation, natural energy andeco-air conditioning. The building isenvironmentally friendly with rooftop
greening, the green procurement of
the equipment used, and theintroduction of NTN environmental
equipment. Additionally, it has aseismic isolated design using
seismic isolation equipment
developed by NTN to provide
against an earthquake like the Great
Hanshin Earthquake and has crisis
management functions so that it canoperate as a disaster control centerfor the Iwata area operation site(refer to picture and diagram below).

■ “Living Research Lab” does
not sleep
We operate 24 hours a day dealing
with development items and responding to customers worldwide
and we created a real time networkwith our overseas technical centersin an effort to share technologicalinformation and utilize testing
facilities globally. At this center, we
promote speed in the developmentof new products through the latest IT
environment, testing facilities, andflexible management.

NORTH AMERICA“NTN Super Sliding Bearing”

EUROPEJAPANASIA

AFRICANTN R&D Center(1) Location: Inside the NTN Iwata Works
OCEANIA(1578 Higashi Kaizuka, Iwata City, Shizuoka
Prefecture)(2) Total floor area: Aggregate floor space for 5
floors = 16,800m2(3) Structure: The building will be built on aseismically isolated structure using the“support system with sliding type seismic
isolator” manufactured by NTN Engineering
Plastics Corp.
(4) Facilities: In-house power generation, well
water supply systems and other emergency
response equipment designed for use
during accidents and natural disasters,
Roof greenery, Eco-friendly air-conditioning(5) Total construction costs: Approx. ¥3 billion
Illustration of NTN R&D Center

NTN
NTNcorporation
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21

Environmental Conservation Activities

Environmental Conservation Efforts at NTN Operating Sites

Every operating site of the NTN Group, including those overseas, iscommitted to actively preventing global warming while reducing environmental impact through waste reduction, recycling, and reuse. NTN operating sites are seeking to eliminate environmental pollution by satisfying
not only legally regulated standards but also our more stringent voluntaryinternal standards for substances of environmental concern.
In addition, NTN takes part in community activities, cooperating withlocal residents’ efforts to preserve the environment.

NTN Kugellagerfabrik (Deutschland) GmbH Mettman Plant
NTN Transmissions Europe

SHANGHAI NTN CORP.

CHANGZHOU NTN-GUANGYANG CORP.
GUANGZHOU NTN-YULON DRIVETRAIN CO., LTD.
NTN Manufacturing Thailand
NTN-NIDEC (ZHEJIANG) CORP.

22 NTN corporation Environmental
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■ Certified Operating Sites
Operating Site
Area

Company Name

Year/Month Obtained
Plant Name

Year

Month

Registration
Registration No.

Registration
AgencyObtained collectively through the multi-site method
1999
11
JSAE176
JSA
Domestic (Operating sites included are: Kuwana Works, Iwata Works, Okayama Works, Takarazuka Works, Nagano Works, NTN
Kongo Corporation, NTN Mikumo Co., Ltd., NTN Engineering Plastics Corporation, NTN Powder Metal Corporation, Hikari
Seiki Industry Co., Ltd., NTN Casting Corp., NTN Omaezaki Corporation, and the Head Office.)
American NTN Bearing
Manufacturing CorporationUSA

NTN-BOWER Corporation

Elgin Plant

2000

6

111994

Schiller Park Plant

2000

9

112115LRQA
LRQA

Macomb Plant

2000

6

111998LRQA

Hamilton Plant

2000

6

111999LRQA

NTN-BCA Corporation, Lititz Plant

2000

7

A8699

UL

NTN Driveshaft, Inc.

1999

12

A8478

UL

CanadaNTN Bearing Corporation of Canada, Canada Plant

1999

7

287

KPMG

Germany

NTN Kugellagerfabrik (Deutschland) GmbH, Mettman Plant

1999

6

201167-2

LRQA

FranceNTN Transmissions Europe

2003

1

19479

AFAQ

ThailandNTN Manufacturing Thailand

2003

8

31634

TUV

NTN-NIDEC (ZHEJIANG) CORP.

2005

1

02005E10013R0L

CNAB

GUANGZHOU NTN-YULON DRIVETRAIN CO., LTD.

2005

4

104 043247

TUV

China

¨
¨

■ Operating Sites expected to be certified.
To be obtained

Area

Operating Site

Domestic
China

Year

Month

NTN Mie Corporation

2005

11

SHANGHAI NTN CORP.

2005

6

CHANGZHOU NTN-GUANGYANG CORP.

2006

9

American NTN Bearing Manufacturing Corporation, Schiller Park Plant
American NTN Bearing Manufacturing Corporation, Elgin Plant

NTN Bearing Corporation of Canada, Canada Plant

NTN Casting Corp.
Hikari Seiki Industry Co., Ltd.
NTN Engineering Plastics Corporation
NTN-BCA Corporation, Lititz Plant
NTN Mie Corporation
NTN Powder Metal Corporation
Nagano WorksNTN Driveshaft, Inc.
NTN-Bower Corporation, Hamilton Plant
NTN-Bower Corporation, Macomb Plant

NTN Omaezaki Corporation
Iwata Works
Kuwana WorksNTN Mikumo Co., Ltd.
Head Office
NTN Kongo Corporation
Takarazuka WorksOkayama Works

To be obtained
Obtained

NTN
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2005

23

Environmental Conservation Activities

Environmental Conservation Efforts at NTN
Domestic Operating Sites

2454 Tsuchijima, Higashikata, Kuwana, Mie

Kuwana Works

Operation started: 1918 Site area: 177,935m2
Main products: Ball bearings, cylindrical roller bearings, constant velocity joints, steel balls

Actively Promoting
Energy Conservation andWaste Reduction
In fiscal 2004, we introduced four
grinding swarf briquetting machines
in order to increase swarf recycling
and coolant reuse.
Additionally, we renovated twocompressors into high-efficiency
turbo types to improve energy
conservation, and at the same time,
we switched the heat source for ourheat treating furnace from electricity
to city gas as an effort to reduce CO2
and cost.
We received an award from theMie Prefecture Industrial Waste
Association in recognition of ouractive efforts towards waste treatment that span over 10 years.

Grinding swarf briquetting
machineEnvironmental training for new recruits

Award from the Mie Prefecture
Industrial Waste Association

1578 Higashikaizuka, Iwata, Shizuoka

Iwata Works

Operation started: 1960

Site area: 226,860m2

Main products: Constant velocity joints, needle roller bearings, ball bearings, andvarious precision equipment

Green Activities toCreate Woodlands
We are actively promoting therecovery of exhaust heat from theco-generation process for use inheating rinse water used in theforging process.
In addition, in an aim to coexist
with the local community, we actively
participate in local greening activities. The woodland improvement
campaign, conducted by Green
volunteers, is one of them. Our
employees and their families participated in planting azaleas in the
woodlands near our plant, madebenches out of thinned wood andpaved areas near the arbor using old
grinding stones.
Heat exchanger to use co-generation
exhaust heat24

NTN corporation Environmental Action Report 2005

Planting Azaleas

● Domestic Operating Sites

500-1 Hatakeda, Bizen, Okayama

Okayama Works

Operation started: 1971

Site area: 175,323m2

Main products: Tapered roller bearings, axle unit bearings, constant velocity joints

Created New Tapered
Roller Bearing Plant;
Next Generation Equipment with Improved
Productivity in Operation
At the new tapered roller bearing
plant, in an effort to balance thereduction of environmental hazards
and productivity, we introduced next
generation equipment with increased
workability and production efficiency
while at the same time realizing
energy conservation while taking up
less space to produce axle bearings
for automobiles.
Additionally, we have taken
measures to green the grounds suchas planting pressure resistant grasson our plant’s west parking lot.
Next generation equipment

Parking lot with pressure resistant grass

2-1 Toyo-cho, Takarazuka, Hyogo

Takarazuka Works

Operation started: 1938

Site area: 88,340m2

Main products: Tapered roller bearings, ball bearings, inner rings and pins for needle
roller bearings

Contribute to Society by
Joining and Supporting
Local Activities
We have created communityconscious voluntary standards fornoise and vibration that go beyond
the legal standards and promoted
the recycling of resources throughseparating waste streams within theworkplace.
In an effort to coexist with our local
community, we have opened ourcompany playing fields to our local
sports groups (Takarazuka Little
League, rugby team) and supported
youth activities. We have also
created environmental activities withthe residents of our community,
taking part in activities such as clean
up volunteers for the “Mukogawa
Riverside Park Beautification Committee.”

Waste Storage

Clean up volunteer activities

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Environmental Conservation Activities

14017-11 Nakaminowa, Minowa-machi, Kamiina-gun, Nagano

Nagano Works

Operation started: 1985

Site area: 125,500m2

Main products: Miniature ball bearings, small size ball bearings, cam followers,
autotensioners, and parts feeders

Confirmed Energy Conservation Effect through theApplication of Heat Shielding Paint
Last summer, we conducted the trial
application of heat shielding paint thatreflects 70% to 80% of the solar rays
on part of the roof of our miniature
bearing plant. As a result, we were able
to confirm a 30°C drop in the surface
temperature of the roof in the summer.
We will continue to apply this paint toour roofs as an effective measure to
reduce energy consumption in thesummertime.
In addition, our employees and theirfamilies took part in the 12th annual
Tenryu River Picnic, with the proposal of“Let’s make Tenryu River safe for swimming and create a recycling society,” andhelped clean up the river bank.

NTN Kongo
Corporation

Heat shield paint (the white part)

Tenryu River Picnic Opening Ceremony(clean up activities)

1-3-13 Kido Nishimachi, Kawachi Nagano, Osaka
Operation started: 1925

Site area: 38,700m2

Main products: Ball bearings, bearing units, double row angular contact ball bearings,
clutch release bearings

Significant Impact
through the Introductionof Grinding swarf
briquetting machine
We introduced two “grinding swarf
briquetting machines” to the twoplants that have started full-scale
operation in fiscal 2004. As a result,
the waste treatment cost for theentire works was cut in half compared with the previous year.
Additionally, through the collection ofoil based grinding fluids, we wereable to double our cost savings
compared to the previous year.
At the same time, we are dedicated to the beautification of thesurrounding areas and conductclean up activities four times a year.
Grinding swarf briquetting machine

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NTN corporation Environmental Action Report 2005

Community Beautification Activities

● Domestic Operating Sites

NTN Engineering
Plastics Corporation

970 Ano, Toin-cho, Inabe-gun, Mie
Operation started: 1965

Site area: 20,486m2

Main products: High performance plastics products made of the original compounds

Emphasis on
Environmental Education
At NTN Engineering Plastics, weemphasize environmental education.
In order to promote the recycling andreuse of waste plastics, we provide aplace for education at the waste
storage location, have programs to
educate our employees on theproper way to separate waste andwork to motivate our employees.
In addition, we conducted emergency training, “specifically reenacting an accident where waste alkaline
fluids have leaked from the ammonia
treatment equipment to the gutters.”

Waste separation program

NTN Powder Metal
Corporation

Emergency response training

101 Katsutaba, Kanie-cho, Ama-gun, Aichi
Operation started: 1966

Site area: 21,000m2

Main products: Oil impregnated sintered bearings, hydrodynamic bearings, andsintered mechanical components

Conduct Periodic Emergency Response Training
We conducted emergency
response training for liquid ammonium, which can have a grave effecton the environment in the event of adisaster. In continuation of our efforts
in the previous fiscal year, we
promoted energy conservation
efforts with electricity and gas,demand control for air conditioning,
and the recycling of component
waste materials.
Additionally, we are actively
involved in greening activities in ourcommunity.

Emergency response training

Greening activities

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Environmental Conservation Activities

750-1 Onoe, Matsusaka-shi, Mie

NTN Mikumo Co., Ltd.

Operation started: 1988

Site area: 33,000m2

Main products: Needle roller bearings for rocker arms, torque diodes, various clutches,
spherical rings for constant velocity joints, PTJ roller cassettes, plastic molding

Recycling of Used Oils
To efficiently use resources, we are
reducing the amount of oil used. By
putting oils through distillation
renewal equipment, we haveobtained the same quality as new oil.
This has also been effective in
reducing costs and we plan on
expanding its application.
As part of our contribution tosociety, our employees and theirfamilies took part in the “River andOcean Clean Up Mission” sponsoredby the local government and helped
clean up the seaside.

Distillation renewal equipment for oils

Seaside clean up activities

Hirata plant : 475-1 Nadabun-cho, Izumo-shi, Shimane

NTN Casting Corp.

Kisuki plant : 231-29 Yamagata, Kisuki-cho, Unnan-shi, Shimane
Operation started: 1967

Site area: 27,223m2

Main products: Bearing units, plummer blocks, casting material for general industrial machinery

Created an environment
in line with the demand
characteristics of wasteslag.
We promoted the recycling ofwaste slag and waste sand createdduring casting as foundation forroads. There is a large fluctuation indemand, therefore we have createda temporary storage space exclusively for March 2005 and havecreated an environment for recycling.
Additionally, we installed an air
dryer in the compressor in an effort
to make more efficient use of air.

Temporary storage space for waste slag

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NTN corporation Environmental Action Report 2005

Air dryer

● Domestic Operating Sites

Hikari Seiki Industry
Co., Ltd.

8 Higashikata, Sanmaiden-cho, Tenri-shi, Nara
Operation started: 1945

Site area: 9,100m2

Main products: Bearing adaptors, constant velocity joint components, and seal wear ringfor Shinkansen rail cars

Introduced Compressors
with Inverters toConserve Electricity
As one of our energy conservation
measures, we introduced compressors with inverters. As a result, wewere able to reduce our electricity
usage by about 20% and we werealso able to reduce noise during
operation.
In addition, in cooperation withneighboring companies, we are
actively involved in local beautification activities.

Compressor with inverter 75kWNTN Omaezaki
Corporation

4681-3 Sakura, Omaezaki-shi, Shizuoka
Operation started: 1966

Site area: 13,437m2

Main products: Needle roller bearings

Acquired ISO14001 andIncorporated Multi-Site
Certification
Last November, we received
ISO14001 certification and wereincorporated in the NTN multi-site
certification. We worked to educate
all employees about the environment
and to raise awareness by conducting activities such as distributing“Environmental Action Guideline”
cards to all new employees andhaving them repeat it in chorus.
Additionally, in order to protect therich natural environment of our site
location, we pay particular attention
to the sewage treatment discharged
from our plant.
Sewage treatment facilities

Clean up activities

NTN corporation Environmental Action Report 200529

● Domestic Operating Sites

Environmental Conservation Activities

Head Office

1-3-17 Kyomachibori, Nishi-ku, Osaka
Operation started: 1918

Site area: 969m2

Participated in “Clean
Osaka 2004”
Through the environmental
activities of the Office Environment
Action Committee, we have promoted resource and energy conservation activities in the office. For
example, we have set targets for the
reduction of electricity, gasoline,
paper and general waste andworked to meet these targets. Also,
by using an ice storage air conditioning system, we are reducing daytime
power consumption.
In addition, we took part in
Osaka’s environmental event, “Clean
Osaka 2004,” and helped clean up
the local parks.

Clean up activities in parks

Ice storage air conditioning system

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30 NTN corporation Environmental Action Report 2005

● Overseas Operating Sites

Environmental Conservation Activities

Environmental Conservation Efforts at NTN
Overseas Operating Sites

American NTN Bearing
Manufacturing
Corporation, Elgin Plant

1500 Holmes Road, Elgin, Illinois 60123-1206, U.S.A.
Operation started: 1975

Site area: 137,000m2

Main products: Hub bearings, angular units, steel balls
ISO14001 Certification: June 2000

Donated Hickory
Seedlings
We have been cooperating withthe charity operation called “FoodDrive” since 2001. Food donated byour employees have been distributed
to people facing danger such as
victims of domestic violence andhomeless people through a localorganization.
In addition, we donated hickory
seedlings to Elgin and our employees planted them in our local parks
on Earth Day held this April.

Our employees planting seedlings in local parks

American NTN Bearing
Manufacturing Corporation,
Schiller Park Plant

A scene from Earth Day

9515 Winona Avenue, Schiller Park, Illinois 60176-1024, U.S.A.
Operation started: 1971

Site area: 9,713m2

Main products: Radial ball bearings
ISO14001 Certification: September 2000

Reusing Crates(large size cardboard
boxes)
We worked on recycling activities
such as using incoming crates used
to ship parts from Japan to ship out
completed products and recovering
waste materials.
We also worked to conserve
energy by eliminating thermal drying
after assembly, and switching thefluorescent lighting in the workplace
to an energy saving type.

CratesEnergy saving fluorescent lighting

NTN corporation Environmental Action Report 2005

31

Environmental Conservation Activities

NTN-Bower Corporation,
Macomb Plant

711 North Bower Road, Macomb, Illinois 61455-2511, U.S.A.
Operation started: 1985

Site area: 408,500m2

Main products: Cylindrical roller bearings, tapered roller bearings
ISO14001 Certification: June 2000

Reduced Electric and
Gas Consumption Costs
We enhanced energy conservation
by periodically adjusting the gas
burners in the heat-treating furnaces
and boilers to improve combustion
efficiency and changed the burners
in the rotary hearth furnaces to highefficiency burners.
Additionally, we installed radientheating in our plant. Througheffective heating, we were able tocut our natural gas consumption
costs by about 9,000 dollars
compared to the previous fiscal year.

Radient heaters installed above the work area

NTN-Bower Corporation,
Hamilton Plant

2086 Military Street South, Hamilton, Alabama 35570, U.S.A.
Operation started: 1985

Site area: 208,000m2

Main products: Tapered roller bearings
ISO14001 Certification: June 2000

Significant Reduction in
Consumption of Oil
We are actively promoting oil
recycling; and in 2004, we recycled
a total of 30,800 gallons of quenching oil and other hydraulic oils.
In the future, we will continue towork to conserve energy by reducing
the gas consumption in carburizing
furnaces and introducing highefficiency motors.

Used hydraulic oil recovery

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NTN corporation Environmental Action Report 2005

● Overseas Operating Sites

8251 South International Drive, Columbus, Indiana 47201, U.S.A.

NTN Driveshaft, Inc.

Operation started: 1991

Site area: 485,623m2

Main products: Constant velocity joints
ISO14001 Certification: December 1999

Significantly Reduced
Solid Waste Materials
By improving the recycle rate ofcardboard boxes and wood palettes,
we reduced the amount of solid
waste material that is sent to landfills
by 31%.
Additionally, last November, we
received the 2004 Governor’s Awardfor the State of Indiana to commend
our outstanding environmental
efforts. This recognized our continuous (5 year) improvement in environmental management and is our
second award in this category.

Promote recycling activities

NTN-BCA Corporation,
Lititz Plant

2004 Indiana Governor’s Award

401 West Lincoln Avenue, Lititz, Pennsylvania 17543-7020, U.S.A.
Operation started: 1997

Site area: 24,919m2

Main products: Radial ball bearings, needle roller bearings, rocker arm bearings, EM couplings
ISO14001 Certification: July 2000

Promote Energy Conservation by Switching to
New Type Compressor
We are promoting energy conservation by switching several of theexisting piston type air compressors
to two modern scroll compressors.

Modernized scroll compressor

NTN corporation Environmental Action Report 2005

33

Environmental Conservation Activities

NTN Bearing
Corporation of
Canada, Canada Plant

6740 Kitimat Road, Mississauga, Ontario, L5N 1M6, Canada
Operation started: 1973

Site area: 61,500m2

Main products: Radial ball bearings, angular units
ISO14001 Certification: July 1999

Introduced compressor
waste heat recovery
heating system
We constructed a new building forthe production of angular unit
bearings. In doing so, we introduced
a compressor waste heat recovery
heating system and were able toreduce 20,000 CAN$/year on gas
fuel costs and reduce CO2.
Additionally, by utilizing thegrinding swarf briquetting machine
we are working towards the efficient
usage of resources and zero emission.

Compressor waste heat recovery
heating system

NTN Kugellagerfabrik(Deutschland) GmbH,
Mettmann Plant

Grinding swarf briquetting machine

NTN Strasse 1-3 40822 Mettmann, F.R. Germany
Operation started: 1971

Site area: 62,312m2

Main products: Ball bearings, angular units, autotensioners
ISO14001 Certification: June 1999

Donated alders to theMettmann community
At the 1100th anniversary of thefirst official record of the town ofMettmann in 2004, citizens andcompanies donated 1100 trees tobe planted in the area. Our plantparticipated by donating 7 alders
and a bench.

Planting trees in town

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NTN corporation Environmental Action Report 2005

● Overseas Operating Sites

Z.A. des Tremelieres Communaute Urbaine du Mans 72704 Allonnes Cedex, France

NTN Transmissions
EuropeOperation started: 2000

Site area: 456,000m2

Main products: Constant velocity joints
ISO14001 Certification: January 2003

Significant results Environmental management
We shortened the length of time
the shutters to the forklift exit are
opened to prevent heat from leaking
out of the plant and drasticallyreduced gas consumption.
In addition, we installed an oil/water separator to renew and reuseused cleansing water and as a result
achieved zero emission to thenatural world.

Automatic shutter

NTN Manufacturing
Thailand

Oily water separator

111/2 Moo 4,Tambol Pluakdaeng, Amphur Pluakdaeng, Rayong 21140, Thailand
Operation started: 1999

Site area: 114,846m2

Main products: Constant velocity joints, hub bearings, needle roller bearings, autotensioners,
timing belt pulley, needle rollers for rocker arms, electromagnetic clutch
bearings, hydrodynamic BEARPHITE, shaft, housing
ISO14001 Certification: August 2003

Utilize natural light toreduce daytime lighting
usage
We have adopted a skylight (clear
roof material) for the roof of our new
plant and were able to reduce
daytime lighting usage by letting in
natural light.
Additionally, we installed wastewater treatment equipment for thesurface treatment of wastewater thatis in line with Thailand’s domesticlaw.

Skylights

Wastewater treatment equipment

NTN corporation Environmental Action Report 2005

35

● Overseas Operating Sites

Environmental Conservation Activities

NTN-NIDEC(ZHEJIANG) CORP.

Pinghu Economic-Development Zone, Pinghu City, Zhejiang Province, China
Operation started: 2003

Site area: 43,000m2

Main products: Hydrodynamic bearing units
ISO14001 Certification: January 2005

Acquired ISO14001
Certification in January
2005
We set up a preparation team for
the ISO14001 certification lastAugust and began preparing for theacquisition of the certificate. Additionally, selected staff members fromeach department took part in internal
auditor training and received qualification. After sufficient preparationsof our environmental management
system in September, we received
ISO14001 environmental management system certification in Januaryof this year.

Emergency response training (fire drill)

GUANGZHOU NTNYULON DRIVETRAIN
CO., LTD.

No.11 Jun Da Road, East Dong-Peng Avenue, East District of Guangzhou Economic andTechnological Development Zone, Guangzhou, Guangdong Province, China
Operation started: 2003

Site area: 52,821m2

Main products: Constant velocity joints
ISO14001 Certification: April 2005

Environmental Education
for Employees
We launched the ISO14001
Certification Preparation team lastAugust and built up our Environmental Management structure andsuccessfully received certification
this April.
We are actively involved in theenvironmental education of employees, and make efforts to sortgarbage and effectively use
resources.

Waste sorting36

NTN corporation Environmental Action Report 2005

Results of the NTN Environmental Action Report
2004 Questionnaire
NTN conducted this survey in order to hear everyone’s opinions through the Environmental Action Report.
We would like to thank everyone who cooperated in this survey and present the following results.

1. Impressions

3. Contents that interested the readers (Multiple answers allowed)

2. How the readers’ felt about the
NTN Group’s approach toenvironmental issues

4. A sampling of the comments● Well organized and easy for an outside
party to understand.
● Can see you are returning to your mainline of business, EMS.

● I believe it would be clearer if illustrations were used to show how the
major waste materials are being
reused with regards to zero emission.

● Why don’t you open your seminars
and training to companies, organizations, and schools in the local
communities?

● It covers all aspects of Environmental
issues.

● I would like to know more about youractivities within the local communities.

● Please tell us about your activities withregards to Green Procurement
activities.

● I give you credit for your high recycle
rate.

■ Target Locations of this Report
Kuwana WorksNTN Mikumo Co., Ltd.
Iwata WorksNTN Casting Corp.
Okayama Works
Hikari Seiki Industry Co., Ltd.
Takarazuka WorksNTN Omaezaki Corporation
Nagano WorksNTN Mie CorporationNTN Kongo Corporation
Head Office
NTN Engineering Plastics Corporation
NTN Powder Metal Corporation■ Period of the Report
April 2004 to March 2005 (with some exceptions)* This report is based on all operating sites that produce NTN-brand products.

American NTN Bearing Manufacturing Corporation, Elgin Plant
American NTN Bearing Manufacturing Corporation, Schiller Park Plant
NTN-Bower Corporation, Macomb Plant
NTN-Bower Corporation, Hamilton Plant
NTN Driveshaft, Inc.
NTN-BCA Corporation, Lititz Plant
NTN Bearing Corporation of Canada, Canada Plant
NTN Kugellagerfabrik (Deutschland) GmbH, Mettman Plant
NTN Transmissions Europe
NTN Manufacturing Thailand
NTN-NIDEC (ZHEJIANG) CORP.
GUANGZHOU NTN-YULON DRIVETRAIN CO., LTD.

NTN corporation Environmental Action Report 2005

37

NTN corporation
For further information about this environmental report contact:

Environmental Management Department
1-3-17 Kyomachibori, Nishi-ku, Osaka, 550-0003 Japan
Phone: 81-6-6449-3517
Fax: 81-6-6443-2592
URL: http://www.ntn.co.jp/kankyou/index.html
E-mail: kankyou@osa.ntn.co.jp

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SOY INK

TMThis environmental action report was printed with soy-based ink on 100% recycled paper.
Printed in Japan (2005.10.1500)