Environment-friendly Production (1) Sustainability Report || KOBE STEEL, LTD.

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		Environmental Management Environmental Sustainability Report 2004

Environment-friendly Production (1)

Global warming is believed to be caused by the increase of greenhouse gases such as carbon dioxide and methane emitted through the massive use of fossil fuels. At an international level, preventive measures are being undertaken. Kobe Steel and its group companies are implementing energy-saving activities and reviewing energy use in their operations, in accordance with voluntary action plans in the respective industries.

Stop Global Warming.

Energy Savings in Production Processes


Since the first oil crisis, Kobe Steel has vigorously implemented a variety of energy-saving measures. The measures include reducing the number of processes, making facilities more efficient, recovering waste energy, and upgrading operations. As a result, we have achieved energy savings of over 20%. At steelworks and plants, which use high temperature processes, efforts have been made to greatly reduce energy consumption. Measures include implementing concatenated processes, introducing large exhaust heat recovery equipment, and minimizing the number of heating and cooling processes. At the same time, we are developing new ironmaking technologies for higher energy savings and lower impact on the environment.		Breakdown of Energy Sources and Volume of Energy Use (Fiscal 2003)

Iron and Steel Sector
At Kakogawa and Kobe Works, a high level of energy savings has been achieved by implementing concatenated processes, upgrading facilities, and recovering and reusing waste heat from steelmaking since the 1970s. In the 2000’s, high energy saving has been achieved by the effective utilization of waste resources, updating the facilities, and accommodating new technologies in the ironmaking process.
The amount of energy used in fiscal 2003 increased from the previous year because the production was increased, but the energy consumption rate was lowered from the previous year as a result of various energy measures implemented in spite of energy-increasing factors.

Steel Industry's Voluntary Action Program and Kobe Steel's Results

Changes of CO₂ emission (estimated value) and energy consumption rate index (Iron and Steel Sector)

Energy Consumption Rate (Kakogawa Works)

Aluminum and Copper Company
The Aluminum and Copper Company is promoting energy saving in accordance with the voluntary action plan of the Japan Aluminum Association and Japan Copper and Brass Association. In particular, the Moka Plant, the Company’s biggest plant, organized a dedicated energy-saving promotion team to strive to save energyIn fiscal 2003, Moka was able to reduce the energy consumption rate by improving yield and productivity.		Change of energy consumption rate (Aluminum and Copper Company)

Voluntary Action Program

Steel industry's voluntary action program

Category of business (trade association)	Target
Iron and steel (The Japan Iron and Steel Federation)	To reduce energy consumption in production processes by 10% between 1990 and 2010. Another 1.5% reduction from the 1990 level is also planned through such measures as using waste plastic in blast furnaces, providing the necessary infrastructure (namely collection systems) are built.
Aluminum (Japan Aluminium Association)	To target 10% reduction in energy consumption rates in rolling and extrusion processes between l 1995 and 2010. By product development, CO₂ emission is to be suppressed to that below the 1990 level.
Rolled copper (Japan Copper and Brass Association)	To target a 7.5% reduction in the energy consumption rate in production processes between 1995 and 2010 by improving production processes.
Industrial machinery (The Japan Society of Industrial Machinery Manufacturers)	To aim for an over 1% annual reduction in the carbon dioxide emissions rate in production processes through improving logistics and increasing the efficiency of production facilities.

Measures to Improve Logistics

Kobe Steel is striving to increase distribution efficiency by unifying administration and backoffice operations. Efforts include achieving optimum and quick domestic and overseas raw material distribution as well as optimum and quick product distribution inside the plants and works and from the plants and works to customers. In addition, each office and group company are also making efforts to reduce carbon dioxide emissions by introducing eco cars.

Introduction of eco cars	Raw material shipping (Kobelco Logistics)	Central control room for product shipment (Kobelco Logistics)
Iron & Steel Sector
The Iron & Steel Sector is improving the transport efficiency of its steel products by selecting optimal transport routes; improving distribution infrastructure such as vertical automated warehouses; upgrading distribution information systems such as a ship allocation system; and facilitating distribution integration. Kobe Steel and Kobelco Logistics is participating in a trial to demonstrate the use of ships to transport steel plate to the Chubu region. This demonstration is under the Ministry of Land, Infrastructure, and Transport. The modal shift from truck to sea transportation from Kakogawa Works to the Chubu region is intended to improve the transportation efficiency and alleviate an environmental burden. In this experiment, it is planned to reduce the yearly CO₂ emission from current 2,069 tons to 1,109 tons, down about 46% from the present level. Under their alliance, Kobe Steel, Nippon Steel, and Sumitomo Metal Industries reinforced their cooperation in logistics. In addition to the use of transit bases, the three companies jointly operate domestic vessels in order to more efficiently ship steel products. Ships that normally return empty from the landing port can take on as cargo the steel of any of the three companies. This can save time and improve the transportation efficiency, thereby contributing to a reduction in the ship fuel consumption rate.

Welding Company The Welding Company's efforts include selecting appropriate modes of transport in accordance with shipment volume and modal shifting to ships and railways.
Aluminum & Copper Company The Aluminum and Copper Company is promoting joint distribution with its competitors. For example, the Moka Plant is increasing its distribution through the use of joint vehicle allocation with Sumitomo Light Metal Industries. The Chofu Plant is also expanding its energy-saving measures such as joint truck delivery and joint utilization of warehouses.

Undertakings by Group Companies

Group company	Office location	Activity
Shinko Wire Company, Ltd.	Kakogawa, Hyogo Amagasaki, Hyogo	Higher efficiency achieved in trucking of products.
Shinko Kohan Kako, Ltd.	Ichikawa, Chiba	Commuter buses changed to eco-friendly vehicles.
Shinko Taseto Co., Ltd.	Fujisawa, Kanagawa	Gasoline fork-lift trucks changed to electrically-operated lifters.
Hanshin Yosetsu Kizai Co., Ltd.	Mitsugun, Okayama	Power consumption rate of pumps of plant facilities reduced by rotating speed control using inverters.
Kobe Leadmikk	Kitakyushu-shi	Logistic businesses are requested to use vehicles which meet vehicle exhaust gas standard. Idling of standby vehicles in premises is prohibited.
Shinsho Corporation	Tokyo Osaka	Hybrid car adopted to reduce CO₂ emission.
Shinko Engineering Co., Ltd.	Ogaki, Gifu	In delivering parts, mixed loading of truck is requested. Mixed loading is used for product shipment. Idling of standby vehicles in premises is prohibited.
Shinko Electric Co., Ltd.	Toyohashi, Aichi Ise, Mie	By increasing the mixed load, the number of trucks needed to transport products has been reduced. The number of trucks necessary to transport the products has been reduced by more than 20%.

ECOWAY Office Activities

Through the Ecoway Office Activities unique to the Kobe Steel Group, at head offices, branch and sales offices, and other facilities, air conditioning is set at 28 degrees Celsius (82 F) in the summer and 20 degrees Celsius (68 F) in the winter. In the summer, employees are no longer required to wear neckties. Other activities include turning off lights during lunchtime, using energy-saving lighting, and using energy-saving computers.