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Environmental Management
Sustainability Report 2006

Environmentally Friendly Manufacturing (2)
Building a Recycling-based Society


To build a recycling-based society, the first priority is to reduce the generation of waste to the maximum extent. For waste whose generation cannot be prevented, it is important to recycle the waste to whatever degree possible. Kobe Steel is actively participating in the building of a recycling-based society. At works and plants, efforts are being made to reduce waste by increasing product yield and using waste plastic generated by society.



Reducing the Volume of Waste and Promoting Recycling
Kobe Steel has promoted the recycling of slag and steel dust generated in the steelmaking process. Since fiscal 1992, each location has drawn up a comprehensive action program for recycling waste and has been promoting waste reduction and recycling.

As a result, the recycling rate in 2005 was 95.6% for all of Kobe Steel's works and plants, and 87.5% for 45 domestic companies in the Kobe Steel Group.
In 2005 some of the dust that was stored for recycling purposes was difficult to recycle and was disposed.
We will further suppress waste generation by developing new technologies for difficult-to-recycle waste.
Volume of Waste, Recycled Volume & Recycling Rate
(Non-consolidated)


Volume of Waste, Recycled Volume & Recycling Rate


Voluntary Action Programs
Voluntary Action Programs in Industry
 
Industrial sector
(Trade association)
Target

Iron and steel
(The Japan Iron and Steel Federation)

1. By 2010, reduce quantity of final disposal of slag, dust, and sludge to 75% of 1990 levels, to about 50,000 metric tons.
2. Bring recycling rate of steel cans up to 85%.

Aluminum
(Japan Aluminium Association)

1. By 2010 cut quantity of final disposal to about 17,000 metric tons.>
2. By 2010 recycle more than 90% of aluminum dross residual ash.

Rolled copper
(Japan Copper and Brass Association)

Cut quantity for final disposal to below 3,000 metric tons by 2010.

Industrial machinery
(The Japan Society of Industrial Machinery Manufacturers)

Boost recycling rate of waste products to 10% more than 1997 levels.



Zero Emission Activities

Since 1997, Kobe Steel has been promoting zero-waste emission activities to eliminate the final disposal volume of wastes at works and plants.



Iron and Steel Sector
Recycling of waste materials
At the Kakogawa Works we are aiming for a zero-emission plant. Efficient use is made of used refractories, waste oil, sludge and other byproducts. Dust is turned into cement material, and sludge with a low iron content is used for ornamental bricks. We have also developed a recycling technology for dust with high zinc content, which was previously difficult to recycle. At eco-stations, we collect and separate glass bottles, aluminum cans and other materials.


Recycling Rate (Kakogawa Works)

Recycling Rate (Kakogawa Works)


Slag Recycling
Kobe and Kakogawa works generate approximately 2.18 million metric tons of blast furnace slag and approximately 960,000 metric tons of converter slag annually. Both blast furnace slag and converter slag are recycled into cement material, roadbed material and other uses.

In particular, blast furnace cement made from powdered slag is more effective than regular cement in controlling the alkali-aggregate reaction. It can also save energy during cement production and emit less CO2. Customers highly value these qualities. Moreover, fine aggregate for concrete made by adjusting the particle size of granulated blast furnace slag is used as a substitute for natural sand, contributing to environmental protection.
Granulated slag yard
Granulated slag yard


Production Flow for Fine Aggregate for Concrete from Blast Furnace Slag (Shinko Sand)
 


Shinko Sand is listed as a designated procurement item under the Law on Promoting Green Purchasing.

Examples of products made of Shinko Sand
 



Waste Plastic Recycling
In addition, Kakogawa Works also accepts waste plastic collected not only in the works but also from outside in accordance with the Container and Packaging Recycling Law. Kakogawa uses the waste plastic as a reductant in the blast furnaces.

Because chlorine deteriorates the blast-furnace refractory and corrodes steel, only low-chlorine waste plastic was used until recently. In April 2004, the first commercial dechlorination facility for removing chlorine in waste plastic was completed. The new facility makes it possible to use more than 75% of the waste plastic as a reductant. The chlorine removed is turned into hydrochloric acid, which is used in the pickling line.

In fiscal 2005, Kakogawa Works recycled approximately 9,000 metric tons of waste plastic.


Waste Plastic Disposal Flow
 
Waste Plastic Disposal Flow


Coal Ash and Sulfur Oxide Recycling
Nearly all the coal ash generated from coal-fired boilers is recycled as cement material and composite roadbed material.

Through a reaction with coal in the exhaust gas desulfurizer, the sulfur oxide in the exhaust combustion gas is utilized efficiently to make gypsum.



Dust Recycling
Dust generated at the steelworks is collected by dust collectors. Nearly all the dust is recycled. Low-zinc dust is used in sintering and pelletizing. High-zinc dust is turned into cement material.



RPF Utilization
At Kakogawa Works, RPF is used as fuel for the circulating fluidized bed boilers for power generation to reduce the amount of coal used.

RPF (Refuse Paper & Plastic Fuel): Solid fuel consisting of used paper, waste plastic, and other materials.


Fly ash recycling
At Kakogawa Works, in order to utilize fly ash generated from the coal-fired boilers, pelletizing equipment, which makes steam-cultivated spherical pellets called ashstone, was installed. Currently, ashstone is utilized as a road material.

In December 2005 ashstone was registered with the New Technology Information System (NETIS), a system for utilizing technologies in public works projects.
Ashstone
Ashstone



Welding Company
At Fujisawa Industrial Operations, waste materials are carefully separated for disposal and activities to recycle resources are also promoted. One example of this is sets of four containers "white, blue, yellow and orange" used for separating different types of waste paper. Sets are located in each workplace within the plant, and employees can see at a glance how to dispose of waste paper. The standardized approach means that employees can dispose of paper correctly and without confusion, wherever they go in the plant. The cost of waste disposal has been reduced as a result.
Refuse containers for separate waste collection



Aluminum and Copper Company
The Moka Plant has installed two melting furnaces for scrap, improved the yield ratio during melting, and reduced the volume of impurities (aluminum dross) during aluminum melting. Furthermore, the plant operates two arc furnaces to improve the recovery rate of aluminum dross. The remaining ash, as a result of R&D efforts, is effectively recycled as cement material. Most of the residual from aluminum dross is no longer disposed as landfill, resulting in a recycling rate of 89.7% in fiscal 2005. Currently, Kobe Steel is promoting research and development to improve recycling efficiency.

The Chofu Works also operates an arc furnace to strengthen its efforts in zero waste emission. It has a recycling rate of 99.5%.

At the Daian Plant, waste plastic is segregated by quality and stored separately. The disposal system was changed from simple incineration to entrusting disposal to outside professionals who carry out thermal recycling.
Changes in Resource Recovery Rate of Wastes (Moka Plant)

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Machinery and Engineering Company
At the Harima Plant, in 2004 we succeeded in recycling waste cleaning fluid, grindstone dust, grinding dust, and weld fume, and in March 2006 we began recycling controller filters. Controllers, demisters, and intake filters are made up of many different materials and were thought difficult to recycle, but by taking them apart and sorting the materials, steel can be recycled as a metal resource, and waste plastics are used to make cement. We are also more thorough about separating plastics and wood scrap generated in the plant.
Filters
Filters

Waste plastic for use in cement
Waste plastic for use in cement



Measures Implemented by Group Companies
Company name Location of plant or office Measures Implemented
Ceratechno Co., Ltd. Akashi, Hyogo Dust and scattered ore are recycled as much as possible to the same quality and used as raw materials. (120 metric tons annually)
Shinko Actec Co., Ltd. Toyooka, Hyogo Since February 2006 dry waste materials have been pulverized and sieved, and then recycled as flux.
Shinko Metal Products Co., Ltd. Kita-Kyushu, Fukuoka Since 2005 material used in melting furnace construction has been recycled.
Shinko Engineering Co., Ltd. Ogaki, Gifu

Since August 2005 waste plastics, vinyl and other waste material have been recycled as RPF.




Chofu Works Achieves Zero Emission Status

The Chofu Works achieved zero emission status with a landfill disposal ratio of only 0.38% between October 2004 and September 2005. It is the third Kobe Steel facility to achieve this status, after the Kobe and Kakogawa works, and the first in the aluminum-rolling and copper-rolling industries.

The Works achieved compliance with ISO 14001 in March 2001. It has cut the volume of final waste and encouraged recycling by reducing the amount of industrial waste for landfill and separating wastes for recycling. As a result, the 3,300 metric tons of waste for final disposal in 2000 were cut to just 64 metric tons for the year October 2004 to September 2005, a reduction of 98%. With a landfill disposal ratio of 0.38% the plant achieved zero emission status. At that time it was also found possible to turn sludge containing copper, tin or aluminum, ceramic debris and waste plastic debris into useful resources, which resulted in considerable savings in waste disposal. Due to its zero emission status, the plant was recognized as a "Yamaguchi Prefecture-designated eco factory" and was awarded a certificate by Yamaguchi Prefecture on March 28, 2006.

Achieving Zero Emission
- By changing the processing method of ceramic debris and sludge containing copper, tin and aluminum, the waste materials could be reused as raw materials.
- Waste plastics were carefully separated to be recycled as cement fuel or turned into pellets for further use.
- By collaborating with processing contractors, residual material after incineration was recycled as roadbed material.
- The metal recovery rate from aluminum dross used in arc furnaces was boosted.
Arc furnace
Arc furnace

Recycling Center
Recycling Center

Measures Undertaken at Overseas Companies
Kobelco Compressors (America) Inc. (KOCOA) manufactures and sells screw compressors at its plant in Indiana, USA.
The cutting operations in compressor manufacturing generate a mixture of steel dust and machining oil. These are separated in a centrifuge. The resulting oil is used in the plant, while the steel dust is sent for use in another plant.
Through this process, 10% of the machining oil used in the manufacturing process is recovered for recycling.
Centrifuge for separating steel dust and machining oil
Centrifuge for separating steel dust and machining oil

Steel dust
Steel dust