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Environmental
Management
Sustainability Report 2006 |
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| Report: Air Emission Problems at Steelworks |
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| 1. Introduction |
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Recently, several problems were discovered at
Kakogawa Works and Kobe Works. Air emissions were found to have exceeded
statutory limits, data was inappropriately handled, and boiler breakdowns
were not reported as they should have been. These lapses put us in
violation of the Air Pollution Control Law and the Electricity Utilities
Industry Law. They had a negative impact not only on the residents
living near the works but also on the local governments of Hyogo Prefecture
and Kakogawa, and everywhere in Japan. They also damaged the confidence
that people have in us. To ensure that similar incidents do not recur,
we established a task force headed by the president to conduct an
in-house investigation. The following report outlines the results
of that investigation, including a description of the main problems,
their cause, and the countermeasures that were subsequently adopted.
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| 2. Problems That Occurred |
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2.1. Kakogawa Works |
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(1) Emissions That Exceeded Limits Set by
the Air Pollution Control Law, and Inappropriate Handling of Data
After examining data covering a combined total of approximately 310,000
hours of in-house power generating boiler operation and about 160,000
hours of steelmaking equipment operation, Kobe Steel discovered that
legal limits for sulfur oxide (SOx) and nitrogen oxide (NOx) either
had been exceeded, or might have been exceeded. (Incomplete charts
and other gaps in the data make it impossible to know for certain
in some cases.) It should be noted, however, that total NOx and SOx
emissions from the steelworks were still below the limits set by pollution
prevention agreements signed between the Kobe Steel Group and the
city and prefectural governments.
(2) Unreported Breakdowns of In-House Power Generating Equipment,
and Failure to Perform Safety Inspections
Of the total number of malfunction incidents that occurred in in-house
power generating equipment from 2001 through 2004, 12 were not reported
as required to the Ministry of Economy, Trade and Industry's Nuclear
and Industrial Safety Agency. According to in-house safety inspection
documents, nearly all of these incidents were recorded falsely as
"temporary shut-down for electric power adjustment." Subsequent
investigation also revealed that at five power generating facilities,
no safety inspection was conducted at all.
| Extent to Which Emission Standards Were Exceeded |
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* K value: a coefficient used on the
basis of the Air Pollution Control Law to calculate the SOx
emission capacities for individual regions and facilities according
to smokestack height. |
Table 1. Status of Excessive Emissions for
Each Facility
(Cases in which excessive emissions were either confirmed or
interpreted as having occurred) |
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Facility |
Time
(hours) |
Substance |
Emission
standard |
Maximum
value |
Cause |
In-house
electric
power
generating
boilers
|
No.
4
boiler |
13 |
NOx |
180ppm |
- |
To
prevent black smoke emissions, excessive combustion
air was supplied. No exhaust-gas recycling device
was used to reduce NOx emissions at the No. 5 boiler. |
No.
5
boiler |
22 |
NOx |
100ppm |
115ppm |
No.
6
boiler |
22 |
SOx |
K
value
1.75 |
K
value
2.37 |
Fuel blockage
due to use of wood chips. Insufficient supply of
desulfurized coal. |
Steelmaking
equipment |
No.
2
soaking
pit
Low
sealability
|
96 |
NOx |
170ppm |
- |
Low sealability |
No.
1
pellet
baking
furnace |
2 |
SOx |
K
value
3.50 |
K
value
4.62 |
Inadequate
treatment of high-sulfur iron ore |
Alloy
steel
sintering
furnace |
5 |
NOx |
260ppm |
415ppm |
Operation
with excessive oxygen |
Cold-rolled
continuous
annealing
furnace
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2 |
NOx |
150ppm |
176ppm |
| Total |
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162 |
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* The NOx concentrations shown are
converted NOx values.
* Boxes marked with a line (-) in the "Maximum value"
column indicate cases in which the maximum value cannot be determined.
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Table 2. Status of Excessive Emissions for
Each Facility
(Cases in which data are missing, giving rise to the possibility
that excessive emissions occurred) |
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Facility |
Time (hours) |
Substance |
Emission
standard |
| Boiler |
Boilers
Nos. 1 through 5 |
357 |
NOx |
100
- 190ppm |
| No.
6 boiler |
626 |
SOx |
K
value 1.75 |
| Total |
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983 |
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* The NOx concentrations shown are
converted NOx values.
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| Inappropriate Handling of Data |

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Incomplete chart records: 993
hours |

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Failure of the environmental monitoring
system to take measurements during the time excessive
emissions were occurring (lack of measured values): 101
hours |

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Manual alteration of data: 336
hours |

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Automated alteration of data through
the environmental monitoring system: 445 hours |

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Manual writing of chart records:
237 hours |

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21 instances of inappropriate
re-analysis sampling methods used during periodic measurements
(batch analyses). |
* After subtracting overlapping data
in Tables 1 and 2 and the Inappropriate Handling of Data section,
the total time is 1,950 hours.
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Incomplete Chart Records |
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Alteration of Data |
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* Regarding incomplete chart records,
when the No. 5 boiler began operating in 1977, it proved especially
difficult to adhere to reported values, and it seems that the
employees involved decided that this situation couldn't be helped
over short periods of operating time. The same general approach
was adopted when various kinds of coal were tested in the No.
6 boiler in 1990, and again when recycled fuel began to be introduced
between 1999 and 2002. |
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2.2 Kobe Steel Works |
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(1) Excessive NOx Emissions from the Boilers
and Interrupted Telemeter Transmission
When the No. 2 boiler was started up again and data transmission had
been re-initiated after regular maintenance had been completed, transmission
was interrupted again and data that showed excessive NOx emissions
were deleted.
(2) Excessive NOx Emissions at a Rolling Mill and Inappropriate
Handling of Data
A logic program had been introduced that deleted data in cases where
there were unusually high levels of oxygen or when converted NOx values
exceeded standard emission limits.
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| 3. Causes |
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Environmental data had been mishandled for many
years with the under awareness of some managers. Although Kobe Steel
has adopted business policies that give priority to environmental
conservation and corporate compliance, in actual practice production
was given priority over environmental protection. There were also
inadequacies in the in-house monitoring system, which should have
prevented compliance violations. We recognize that these lapses were
not due to individual employees, but rather stem from the fault of
the internal control system.
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| 4. Measures to Prevent Recurrence |
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(1) Measures Concerning Company Organization and Administration |
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To strengthen our environmental control system,
we have increased the number of personnel in environmental administration
both in the head office and at our various operating locations. As
part of this effort, we have established a new Environmental Control
& Plant Safety Department in Kakogawa Works. The environmental
control system places top priority on environmental protection, with
the executive in charge of environmental issues at Kobe Steel given
authority to halt operations at any operating location if deemed necessary.
Environmental control departments in each operating location are authorized
to halt operations at manufacturing facilities if deemed necessary.
To ensure that environmental measurement data remain transparent,
environmental administration in the head office will be able to view
measurement data directly, and the data from Kakogawa Works and Kobe
Works will be made available to local authorities and the public at
large. We will also expand our educational programs for all employees
regarding environmental protection and compliance.
To ensure that these measures are steadily implemented, we have established
a new Environmental Administration Committee. Comprised of experts
from both inside and outside the company, this Committee is in charge
of formulating and implementing measures for the environment and related
safety assurance, reviewing the status of environmental administration,
and reporting to and advising the Board of Directors.
| Conceptual Diagram of Main Measures |
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(2) Technical and Facility-Related Measures |
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Kobe Steel's
Fiscal 2006-2008 Medium-Term Business Plan had already give
consideration to maintaining and improving environmental practices
at both Kakogawa Works and Kobe Works. While implementing the
environmental-related construction projects outlined in the
Plan ahead of schedule, we have added further projects that
will bring our total investment in environmental measures to
approximately 27 billion Yen.
To combat smoke, we will fit our boilers with automated combustion
control systems, install desulfurizing equipment, introduce
low-NOx burners in our boilers and annealing furnaces, upgrade
the desulfurizer at the sintering plant, and take other necessary
steps. To control dust, we will hermetically enclose equipment
especially where dust is generated, enhance cleaning and water-spraying
systems, increase the number of dust collectors, and install
anti-dust nets. We will also renew our environmental control
system by increasing the number of environmental measuring devices
and upgrading existing devices. |
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Composite image of future anti-dust
net |
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(3) Restoring the Trust of Local Communities |
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Explanatory Meetings for Local
Residents |
To help local residents understand the
steps we are taking to protect the environment, we will further
enhance the explanatory meetings we hold in local communities.
On July 30, 2005, one such meeting held at Kakogawa Works was
attended by nearly 200 people.

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Public Monitoring Equipment |
Under the guidance of government authorities,
we will install public monitoring equipment in public places
and disclose environmental data.

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Publishing Environmental Control
Information on Our Web site |
Environmental control data and information
concerning facility investment aimed at environmental improvement
will be posted online. The status of our compliance with laws
and regulations regarding facilities that generate smoke, as
well as the amount of dust generated are also published on the
website, along with other pertinent information.

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Phone Access for Public Interaction |
Both Kakogawa Works and Kobe Works maintain
an environmental hotline that citizens can use to express their
concerns.
Kakogawa Works: 0120-145065
Kobe Works: 0120-755505 |
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Publication of environmental information
on the Kobe Steel Web site |
| 5. Future Measures |
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We take these lapses very seriously and
resolve to do everything in our power to ensure that they do
not recur. All of our employees are working to regain public
trust in us as an environmentally advanced company. We will
hold improvement and verification meetings so that the progress
we make can be confirmed with Hyogo Prefecture and Kakogawa,
and we will take appropriate action to disclose the results.
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