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Environmental
Management
Sustainability Report 2006 |
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| Relations with Customers and Business Partners |
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| To supply products that meet
the satisfaction and retain the trust of customers and business partners
all round the world, the Kobe Steel Group undertakes rigorous quality
control and has put in place a management system to respond more swiftly
to individual customer requirements. |
| Quality Assurance & Quality Control |
 |
 |
Quality Assurance System |
 |
| To be able to supply products
to satisfy its customers, the Kobe Steel Group is promoting quality
assurance and quality control by achieving more widespread compliance
with the international standard ISO9001 for quality management systems. |
Kobe Steel Facilities Compliant with ISO9001:
| Facility
name |
Date compliance
achieved |
| Kakogawa
Works |
Titanium
Plant |
October
1994 |
| Plate
Mill |
June
1995 |
| Wire
Rod Mill |
December
1996 |
| Sheet
Mill |
November
1997 |
| Kobe
Works |
|
November
1997 |
| Takasago
Works |
Steel
Casting and Forging Plant |
January
1994 |
| Titanium
Plant |
December
1999 |
| Steel
Powder Plant |
January
1998 |
| Machinery
Plant |
September
1992 |
| Equipment
Plant |
March
1996 |
| Harima
Plant |
Standard
Compressor Plant |
April
1999 |
| Ibaraki
Plant |
|
March
1998 |
| Daian
Plant |
|
September
1997 |
| Chofu
Works |
|
September
1999 |
| Moka
Plant |
|
December
1998 |
|
|
Kobe Steel Group Companies Compliant with
ISO9001:
| Company |
Facility |
Date of compliance |
| Kobelco
Eagle Marine Engineering Co., Ltd. |
All |
March
1994 |
| Shinko
Wire Company, Ltd. |
Amagasaki
Plant |
July
2000 |
| Onoe
Plant |
February
1997 |
| Ceratechno
Co., Ltd. |
Headquarters,
Akashi Plant |
April
2005 |
| Bizen
Plant |
April
2005 |
| Nippon
Koshuha Steel Co., Ltd. |
Toyama
Works |
January
1996 |
| The
Kansai Coke and Chemicals Co., Ltd. |
Kakogawa
Plant |
March 2005 |
| Sakai
Steel Sheets Works, Ltd. |
All
(titanimum products only) |
April
2005 |
| Sanwa
Tekko Co., Ltd. |
Inuyama
Plant |
June
2002 |
| Kobe
Special Tube Co., Ltd. |
Chofu-Kita
Plant |
November
1992 |
| Shinko
Bolt, Ltd. |
Headquarters
and all branches |
December
2002 |
| Tesac
Wirerope Co., Ltd. |
All |
April
1999 |
| Shinko
Actec Co., Ltd. |
Hidaka
Plant |
September
2004 |
| Shinko
Welding Service Co., Ltd. |
Headquarters |
December
2005 |
| Kobelco
& Materials Copper Tube, Ltd. |
Hatano
Plant |
April
1998 |
| Thailand
Plant |
November
2000 |
| Malaysia
Plant |
September
1996 |
| Sun
Aluminium Industries, Ltd. |
All |
September
1999 |
| Shinko-North
Co., Ltd. |
All |
June
1999 |
| Shinko
Metal Products Co., Ltd. |
All |
April
1995 |
| Niko-Aluminium
Industries, Ltd. |
One
dept. at Moka Plant |
December 1998 |
| Shinko
Leadmikk, Ltd. |
All |
April
2000 |
| Shinko
Inspection & Service Co., Ltd. |
Headquarters |
December
2005 |
| Kobelco
Research Institute, Inc. |
Sputtering
Target Division |
February
1999 |
| Kobelco
Construction Machinery Co., Ltd. |
Hiroshima
Plant |
February
1998 |
| Kobelco
Eco-Solutions Co., Ltd. |
Headquarters |
February
1997 |
| Harima
Plant |
October
1996 |
| Technical
Research Center |
February
1997 |
| Shinko
Engineering Co., Ltd. |
Main
plant, all branches |
December
1995 |
| Shinko
Electric Co., Ltd. |
Toyohashi
Plant |
July
1995 |
| Ise
Plant |
June
1995 |
| Genesis
Technology Inc. |
Nishiwaki
Plant |
November
2003 |
| Tokorozawa
Plant |
February
2003 |
| Kyushu
Plant |
May
2002 |
|
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Quality Assurance for Products for the Auto Industry |
 |
The Daian plant is the Aluminum
& Copper Company's main plant for cast and forged aluminum parts
largely for the auto and aircraft manufacturing industries and aluminum
machined parts for semiconductor and LCD manufacturing equipment.
It is set up to meet diversified customer needs, not only for large-scale
production but also small-quantity production of many different types
of parts.
The plant's compliance with ISO9001 dates back to September 1997,
and in September 2004 it achieved compliance with the automotive sector
standard ISO/TS16949 (replacing the automotive quality standard QS-9000).
ISO/TS16949 is based on ISO9001:2000, said to be the toughest standard
worldwide for suppliers to the auto industry. In addition, compliance
with AS9100, the aerospace quality management system, was achieved
in September 2006. |
 |
ASME U3 Certification and NUK Project |
 |
| In the Machinery & Engineering
Company, ASME (American Society of Mechanical Engineers) U3 certification
of the ultra high-pressure vessels used in isostatic presses was granted
in June 2004, a first in Asia. In other attempts to upgrade quality,
an NUK certification system, meaning "no inspection on arrival",
has been introduced to our main suppliers with training and awards
offered to individual companies. |
| A Swift, Flexible Response to Customer Requirements |
 |
 |
Timely Provision of Information to Customers |
 |
| In the Iron & Steel Sector,
2005 saw the launch of a comprehensive database system that facilitates
information sharing between production and sales divisions, and a
web-type process computer that facilitates information sharing between
manufacturing plants and the production control departments, both
of which are in the production division. This allows more timely provision
of information to customers, as well as the formulation of more streamlined
production plans and sales strategies. |
 |
Meeting More Diversified Needs |
 |
In the Machinery & Engineering
Company, one example of the way in which diversified customer requirements
are accommodated is the Technical Center located at the Takasago Works.
Kobe Steel's industrial machinery, a main product line, has been installed
so that customers may have performance tests conducted and assist with development
before purchasing the machinery.
In efforts to boost customer satisfaction, a QNet system was set up in September
2005 to allow greater sharing of information about customers' queries and
complaints and promptly direct it as feedback for product development. For
customers with standard compressors, an energy-saving diagnostic service
measures and analyzes electricity consumption while the compressor is in
use, and offers an energy-saving strategy or cost-saving suggestions to
customers on the basis of the results. Industrial-use compressed air is
said to account for 10% of total energy used in Japan. The energy-saving
diagnostic service for customers' facilities offers energy-saving proposals. |
 |
Customer Support Centers |
 |
In the Welding Company,
in 2003 a Customer Support Center was established in the Marketing
Department as an expanded and upgraded version of the earlier Technical
Service Section. The Center works to upgrade customer satisfaction
and boost marketing and also provides swift feedback on customer requests
and complaints, thereby assisting in better product development and
product improvements.
|
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Technical Center at Takasago Works |
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Assistance with ISO Compliance |
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| Shinko Research Co., Ltd., offers
assistance for achieving compliance with ISO9001 and ISO14001. Experts
with many years' experience in this area assist in creating management
systems that are both practical and beneficial. |
QNet Database
 |
| Meeting Needs Locally-More Overseas Production |
 |
With a policy of "meeting
needs locally" the Kobe Steel Group has been actively promoting
overseas production since the 1960s. The appropriate technical development
and product development for each region or country is promoted based
on Kobe Steel's technical development and production technology in
Japan.
The Iron & Steel Sector was particularly quick to start production
overseas. Construction of wire rod secondary processing facilities
in China's Guangdong and Jiangsu provinces was begun in FY2005 in
response to strong demand.
The Welding Company is promoting locally based globalization, and
recently started construction of a new plant at Kobelco Welding of
Europe B.V. in the Netherlands, which manufactures and markets stainless
steel flux-cored wire. The new plant will produce carbon steel flux-cored
wire, for which demand is expected to grow in shipbuilding and offshore
construction.
In the Aluminum & Copper Company, increasingly production overseas
is planned to take advantage of location. For example, Kobe Aluminum
Automotive Products, LLC was set up in 2003 in Kentucky, USA to manufacture
and market forged aluminum parts for car suspensions, and began production
began in 2005. In Southeast Asia three companies for copper sheet
and strip have been set up to process copper alloys for electronic
applications, wide-width coil and other products made at the Chofu
Works, to respond quickly and flexibly to growth in demand for their
various applications overseas.
In the Machinery & Engineering segment, the Kobe Steel Group's
wholly owned subsidiary Kobelco Compressors Manufacturing (Shanghai)
Corporation was established in Shanghai, China in February 2005, and
the company began full-scale production in June. Furthermore, in February
2006 Kobe Steel upped its equity stake in the California company Engineering
Designs Transfer, Inc. (EDTI) from 50.0% to 92.5%, to form Kobelco
EDTI Compressors, Inc., the first Group company to manufacture and
sell non-standard screw compressors in the United States. In this
way, Group companies are responding through overseas ventures to meet
growing demand and diversified needs for compressors outside Japan.
|

Secondary wire rod processing plant in Guangdong,
China
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Kobe Aluminum Automotive Products in Kentucky,
USA |
| Materials Procurement Policy |
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Kobe Steel undertook a complete
revision of its purchasing rules for all Group companies in FY2004
to ensure it meets social obligations for environmental protection
and stricter compliance requirement.
Purchasing rules state that purchasing activities must be sensitive
to relevant social developments and requirements, and must take into
consideration environmental protection and conservation of resources.
Where quality is unlikely to be compromised, efforts should be made
to procure products that have minimal environmental impact, such as
recycled materials. Kobelco Green Procurement Guidelines are applied
to the purchase of paper and other stationery products.
In the European Union (EU) the Restrictions on Hazardous Substances
(RoHS) Directive came into force in July, 2006. The Kobe Steel Group
operates worldwide and has acted to prohibit use of products incorporating
the six substances whose use is restricted: lead, mercury, cadmium,
hexavalent chromium, polybrominated biphenyl (PBB) and polybrominated
diphenyl ether (PBDE). |
| Correct Exporting |
 |
Kobe Steel is striving to ensure that
exporting is carried out responsibly. Rules for the Security Export Control
Program (Shinko Program) have been formulated and exporting is carried out
in accordance with these rules.
Based on the rules, restrictions on products that may be used for military
purposes must be strictly observed, and strict in-house controls apply.
Additionally, customers' purposes are checked in accordance with the catch-all
system* introduced in April 2004. Staff training is also part of an ongoing
effort to foster constant awareness of events on the international stage.
| * |
Catch-all system: Exports of all
commodities and technologies are subject to restrictions if
they are known to be used, for example, in the development of
weapons of mass destruction, or if notification has been received
from government authorities. |
|
| Examples of Quality Assurance Measures of Group Companies |
 |
| Group
company |
Quality Assurance
Measure |
| Kobelco
Logistics, Ltd. |
For major customers,
goods are double-checked for quality before shipping. Also,
a safe delivery system has been introduced together with shippers,
to prevent products from being dropped, etc., during transportation. |
| Hanshin
Yosetsu Kizai Co., Ltd. |
Inspections are made
at manufacturers to determine whether any of the toxic materials
whose use the welding companies have prohibited, are used in
wrapping materials such as flexible containers, cans and paper
bags. If found, requests are made to terminate their use. |
| Kobelco
& Materials Copper Tube, Ltd. |
Regarding cladded
copper tube used in construction applications, we were number
one in the Kanto region to achieve compliance with New JIS (JIS
H3330). Quality assurance and quality control measures in line
with the new JIS standards are being speedily implemented. |
| Shinko
Fab Tech, Ltd. |
Plants for processing
aluminum and aluminum-alloy sheet, bar and extrusions are compliant
with the relevant JIS standards H4040, H4080 and H4100. Quality
assurance and quality control measures in line with new JIS
standards are being implemented. |
| Kobelco
Compressors Corporation |
In an effort to reduce
the high level of electricity consumption by air compressors,
suggestions are offered to our customers on how to save energy.
Through examining the operating conditions of air compressors
in use by our customers and proposing optimal operation, a total
of approximately 290 million kWh of electricity has been saved
annually. |
| Kobelco
Eco-Solutions Co., Ltd. |
Taking the customer's
point of view, we have created a service unit for each product
line we install to provide thorough after-care service, covering
routine checks and maintenance, maintenance management, evaluation
and upgrading recommendations. We also collect data on customer
satisfaction and work to upgrade and improve product quality. |
| Kobelco
Construction Machinery Co., Ltd. |
The quality assurance
function has been placed directly within the head office organization.
Kobelco is striving to improve customer satisfaction by providing
a user follow-up system through five domestic marketing companies
and designated service plants and by setting up service contacts,
available 24 hours a day and 365 days a year. |
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