Environmental Management Environmental Sustainability Report 2005

Environment-friendly Production (3)

[3] Reduction of Hazardous Substances

Chemical substances that are used in our lives can damage the ozone layer, human health and the ecosystem unless appropriately controlled. Kobe Steel shall continue to properly maintain its environmental facilities; thoroughly control chemical use or reduce the use of chemical substances; and switch to safer alternative substances. Uncompromising Control Toward Reduction Kobe Steel set up the Company-wide Chemical Substance Control Policy and strives for thorough control of chemical substances. For example, we use the Control Sheet for Designated Chemical Substances in all the offices throughout the company. With this Sheet, usage and management methods are defined for each chemical substance, and the transferred amount and released amount reported in accordance with the PRTR Law can be calculated accurately. The Control Sheet also enables that the content required to be reported under the PRTR Law is abided, and is used for controlling the amount of consumption and emissions of the substances. Group companies are being urged to adopt this Sheet for chemical substance control. In the total values reported in fiscal 2004 in compliance with the PRTR Law, Kobe Steel handled 32 substances, released 235 metric tons, and transferred 157 metric tons in total. As for group companies, 28 substances were handled, 652 metric tons were released, and 233 metric tons were transferred. * PRTR Law: Pollutant Release and Transfer Register (Law concerning Reporting, etc. of Releases to the Environment of Specific Chemical Substances and Promoting Improvements in their Management) The Company-wide Chemical Substance Control Policy Control production, use, and treatment of designated chemical substances taking account of the Chemical Substance Control Policy. Gain further understanding from stakeholders regarding control of designated chemical substances. Implement reduction measures in an organized way by setting control targets for transferring and disposing designated chemical substances. Yearly release and transfer of chemicals specified in the PRTR Law (parent company only) Unit: kg (dioxins: mg-TEQ) Government ordinance No. Substance Number of plants handling the substance Release Transfer 1 Water soluble zinc compounds 1 14 0 16 2-aminoethanol 1 0 0 40 Ethyl benzene 3 7,100 290 44 Ethylene glycol ethyl ether 1 180 40 63 Xylene 8 60,000 3,100 68 Chromium and trivalent chromium compounds 6 27 36,000 69 Hexavalent chromium compounds 3 0 320 99 Vanadium pentaoxide 1 10 530 100 Cobalt and its compounds 1 0 0 101 Ethylene glycol monoethyl ether acetate 1 200 58 132 1,1-dichloro-1-fluoroethane 2 18,000 0 145 Methylene chloride 2 60,000 5,600 179 Dioxins 6 3,700 410 207 Water soluble salts of copper 1 510 0 211 Trichloroethylene 1 7,500 0 224 1,3,5-trimethyl benzene 3 5,100 1,800 227 Toluene 6 46,000 320 230 Lead and its compounds 2 10 170 231 Nickel 4 1 1,300 232 Nickel compounds 3 16 2,600 253 Hydrazine 2 1,400 0 266 Phenol 1 0 1,600 283 Hydrogen fluoride and water-soluble salts 4 17,000 37,000 299 Benzene 1 9 0 304 Boron and its compounds 3 1,400 210 307 Polyoxyethylene alkyl ether 1 3,900 0 308 Poly(oxyethylene) octyl phenyl ether 1 16 1,600 309 Nonylphenyl ether 2 330 0 311 Manganese and its compounds 8 4,500 46,000 345 Mercaptoacetic acid 1 1,200 750 346 Molybdenum and its compounds 4 960 18,000 353 Trisphosphate(dimethylphenyl) 2 0 0 Efforts to Reduce Hazardous Substances To reduce use of chemical substances, it is effective to develop products and production lines free of chemical substances. In this regard, Kobe Steel develops products not only using no hexavalent chromium in its production processes, but also completely chromate-free in surface treatment, such as the chromate-free electrogalvanized steel sheet Zinkobella Greencote GX. (In-depth information about the chromate-free steel sheet is available on page 23). Likewise, Kobe Welding Wire, Co. Ltd. achieved its target to make TIG welding rod identification paint free of chromate and lead. Also at Kobe Leadmikk, Ltd., technology to produce lead-free Sn-Pb coating was developed and the ratio of lead-free applications rose to 73%, from 35%. At the Moka Plant, the use of dichloromethane as a degreasing cleaner for aluminum flat products was abolished in 2001. Also, Shinko Fab Tech, Ltd. at the Chofu Plant switched from using trichloroethylene for cleaning in the aluminum tube cleaning process to hydrocarbon-based cleaners by remodeling the equipment in November 2003. In fiscal 2002, the use of trichloroethylene was reduced by 70% from fiscal 2003, and in fiscal 2004, over 95% was reduced from the fiscal 2002 figure by using smaller cleaning equipment and improving the cleaning method. Currently, Kobe Steel is considering to improve the equipment by going completely free of trichloroethylene. At the Harima Plant of the Machinery & Engineering Company, a burn-in preventive agent used when inserting bearings to compressors was shifted to those not containing hazardous substances, such as molybdenum. Also, waste thinner generated from painting work is now recycled and reused by introducing equipment to heat, distill, and refine, resulting in a reduction of purchased thinner. Furthermore, at the Takasago Works of the Machinery & Engineering Company, the introduction of new cleaning equipment will enable the switch cleaning liquid from dichloromethane to paraffinic hydrocarbon. Aluminum pipe cleaning equipment (Shinko Fab Tech) Thinner reprocessing equipment Fully automatic 2-tank vacuum cleaning and drying equipment Yearly release and transfer of chemicals specified in the PRTR Law (group companies) Unit: kg (dioxins: mg-TEQ) Government ordinance No. Substance Number of plants handling the substance Release Transfer 1 Water soluble zinc compounds 2 540 21,000 30 Bisphenol A epoxy resin 2 0 180 40 Ethyl benzene 7 35,000 10,000 43 Ethylene glycol 2 47,000 260 59 p-octyl phenol 1 0 0.7 63 Xylene 12 270,000 19,000 64 Silver and its water-soluble compounds 2 0 210 68 Chromium and trivalent chromium compounds 7 350 36,000 100 Cobalt and its compounds 1 0 11 101 Ethylene glycol monoethyl ether acetate 1 1,800 0 108 Inorganic cyanide compound 1 0 1,200 145 Methylene chloride 3 36,000 1,300 177 Styrene 2 240 210 179 Dioxins 1 44 670 198 Hexamethylenetetramine 2 0 67 200 Tetrachloroethylene 2 26,000 6,700 211 Trichloroethylene 2 16,000 0 224 1,3,5-trimethyl benzene 2 1,800 200 227 Toluene 10 170,000 15,000 230 Lead and its compounds 4 12 9,400 231 Nickel 4 0 860 232 Nickel compounds 1 150 5,600 266 Phenol 2 22,000 130 283 Hydrogen fluoride and water-soluble salts 6 11,000 4,300 299 Benzene 1 11,000 0 304 Boron and its compounds 3 1.7 140 311 Manganese and its compounds 7 2,300 100,000 346 Molybdenum and its compounds 4 470 1,300 PCB control Kobe Steel properly stores transformers, capacitors, and other components that contain PCB (polychlorinated biphenyl) in special-purpose storage and reports in compliance with the "Law concerning Special Measures against PCB Wastes." Measures to Maintain the Ozone Layer The amount of ultraviolet light reaching the ground is known to increase due to the depletion of the ozone layer. In order to protect life from harmful ultraviolet light, we must reduce the use of ozone-depleting substances. Kobe Steel stopped using cleaners containing CFC (chlorofluorocarbon) completely by the end of fiscal 1994. Measures against Dioxins For waste incinerators, the amount of incinerated waste is reduced by promoting the collection of source-separated refuse and recycling. Also, thoroughgoing operation control is implemented, such as the preliminary screening of waste, equipment management, and combustion control. By these measures, dioxin generation is controlled. In the production process, Kobe Steel controls the operation of sintering furnaces in compliance with the self-imposed guidelines of the iron and steel industry and implements meticulous equipment control and operation control for wastewater from aluminum alloy facilities, electric furnaces for steelmaking , and wet waste gas scrubbers. Due to these measures, with respect to dioxins generated unintentionally in these manufacturing processes, they are well below the compliance level. Also, Kobe Steel and Fountec Co., Ltd., the top manufacturer of a molten nonferrous metal treatment agent, developed a non-chloride flux, which completely prevents dioxin from arising in the aluminum smelting process. Kobe Steel will continue to strive to suppress dioxin emission by improving and maintaining equipment as well as appropriate operation control, in addition to technical development.