Environmental Management Sustainability Report 2006

Disaster Prevention Activities

Since the 1995 Hanshin Awaji Earthquake, Kobe Steel has been involved in recovery and reconstruction work and has also strengthened measures company-wide on dealing with earthquakes and other natural disasters. Management guidelines on disaster prevention have been drawn up for the whole company, and efforts have been directed toward preventing disasters or limiting damage in the event of a disaster, although it has not been possible to eliminate accidents completely. In the future, we will pursue further Group-wide disaster prevention activities, including a strengthening of the safety management system. (Information in this section follows the Kobe Steel publication Disaster Prevention Guidelines)

Company-wide Disaster Prevention Management Policy

In Kobe Steel, a company-wide disaster prevention management policy is drawn up each year for dealing with natural disasters such as earthquakes and trying to prevent accidents in our plants. We are constantly working to increase disaster prevention readiness by following policy guidelines adapted for the circumstances of each individual workplace.

FY2005 Company-wide Disaster Prevention Management Policy The Kobe Steel Group aims to be adequately prepared for such natural disasters as typhoons and earthquakes, and to eliminate accidents such as fires, explosions and leaks. Basic Policy Respect for human life Continuity of corporate activities Cooperation with the local community

Organization Chart for Company-wide Disaster Prevention Management

Group Disaster Prevention Meeting

The Kobe Steel Group holds an annual Group Disaster Prevention Meeting that is attended by representatives from all of Kobe Steel's works, plants and offices and Group companies. The purpose of the meeting is for all the companies in the Group to use this opportunity to share information on disaster prevention and thereby extend disaster prevention activities. The 2005 Group Disaster Prevention Meeting, held on 26 October last year, was attended by 104 representatives from 62 Group companies. Reports were made on specific activities related to disaster prevention at locations and Group companies. A special address was given by Professor Hayashi Haruo, director of Kyoto University's Research Center for Disaster Reduction Systems and a leading figure in disaster prevention research.

Kobe Steel 2005 Group Disaster Prevention Meeting

Back-up System for Important Data

Computers are now used for all aspects of business, and computer breakdown occurring as the result of a natural disaster leads to considerable disruption. For Kobe Steel's computer system, strengthening disaster countermeasures in order to continue business activity, which is top priority, and maintain an uninterrupted supply of products to our customers, has been well researched. Close to 90% of the computer system is operated from the Nadahama and Kakogawa computer centers. In September 2005, a security system was put in place enabling mutual backing-up of important data on production, sales, financial affairs, personnel, and so on in real time between these two major centers, which are located about 40 km apart. This sort of real-time back-up system between physically separate locations is a first in the steel industry, directing maximum effort into the uninterrupted supply of products to our customers.

Back-up System for Important Data

Disaster Management at Times of Emergency

In all areas of business, contingency plans for natural disasters such as earthquakes are prepared. A disaster headquarters will be set up in the event of an emergency to minimize the effect of the disaster on business. In addition, a disaster prevention network is set up on the Kobe Steel Group Intranet, to display and disseminate emergency information and news on employee safety from a Group company at a time of emergency.

Organization Chart for Overall Disaster Countermeasures Center * The general manager is the president of Kobe Steel. The deputy general manager is appointed by the president.

Regional Disaster Prevention Symposium in Kobe 2006

The Regional Disaster Prevention Symposium in Kobe 2006, sponsored by Kobe City and Kobe Chamber of Commerce and Industry, was held for the tenth time on 20 January, 2006, on the subject of "Coping with Disaster in the Community: The Role of Corporations What is BCP?" Representatives of Kobe Steel participated in a panel discussion on "Corporations and the Community: The Challenge to Reduce Damage" and talked about Kobe Steel's efforts after the Hanshin Earthquake. The symposium is designed to pass on to following generations the lessons that were learned from the Hanshin Awaji Earthquake and to contribute to boosting disaster prevention capabilities in the community and promoting disaster countermeasures. The Kobe Steel Group will continue to work in cooperation with others in the community to promote efforts to reduce damage from disasters.

Kobe Steel participating in a panel discussion

Disaster Prevention Drills

Every year, all offices, plants, works and Group companies conduct disaster prevention drills designed to deal with emergencies such as fire, earthquake, or flooding. At the Kakogawa Works, fire drills were held four times between September 2005 and January 2006. This training had three objectives: to improve the fire-fighting system to act swiftly to minimize damage and prevent secondary disasters; to provide information quickly to local communities and the relevant government authorities; and to make personnel more conscious of disaster prevention.

Comprehensive disaster prevention drill Disaster prevention drill at oil refining complex

	Working for Ever Better Disaster Prevention Strategies The Kobe Steel Group's disaster prevention activities are based on a recognition that preventing accidents and disasters is fundamental to corporate activity, and much is expected of corporate disaster prevention measures. However in May 2005, precious life was lost in a boiler accident at the Kakogawa Works. Because there has been a series of power station accidents, including this one, since 2004, the premises were inspected by the Chubu Kinki Industrial Safety and Inspection Department, and in April 2006 the Kakogawa power station received a severe written reprimand. The company takes this very seriously and has been making efforts to improve disaster prevention strategies, implementing measures throughout the Group to prevent the re-occurrence of such an accident, and raising awareness of disaster prevention.

	Shinko Engineering Staff Active in Ogaki City's Fire Brigade Shinko Engineering, based in Ogaki City, Gifu Prefecture, is involved in local disaster prevention activities, with around 10 staff members, including retired staff, working with the Ogaki City Fire Brigade. Every year they participate in the annual contest of fire-fighting skills, and in 1995 one member won an individual prize at the prefectural level and went on to compete at the all-Japan level. Members are also busy working with local neighborhood groups, inspecting fire extinguishers and fire hoses installed in the community and organizing annual community fire drills. Firefighting training