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Measures against Global Warming

Environmental Management
Sustainability Report 2007
1. Environmentally Friendly Manufacturing (1)
Measures against Global Warming
Global warming is believed to be caused by the increase of greenhouse gases, such as carbon dioxide and methane, created by human activity. The Kyoto Protocol went into effect in February 2005, and preventive measures are being undertaken at an international level. 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 their respective industries.
Saving Energy in Production Processes
In fiscal 2006 the Kobe Steel Group used a total of 231 PJ (petajoules) of energy. Steel-related businesses accounted for 93.6% of this.

Significant savings have been made in the use of energy at steel works and other manufacturing plants, through concatenation of facilities, installing large-scale waste-heat recovery equipment, and making heating and cooling processes more efficient. As a result, the level of energy efficiency in our production processes is now among the highest in the world. We are also active in developing new manufacturing technologies that are more energy-efficient and have less impact on the environment.
Energy Use by Business Segments
(includes group companies)
Amount of energy used in fiscal 2006: 231 PJ
Energy Use by Business Segment (includes group companies)
Iron and Steel Sector
At Kakogawa and Kobe Works, concatenated processes in steelmaking, recovering and reusing waste heat from processing, and new energy-saving technology have been implemented since the 1970s. By around 1990, we achieved energy savings of over 20%.

Since the 1990s facilities to recover waste heat have been expanded, and other measures to boost plant efficiency have been implemented. Since 2000, a high level of energy savings was achieved by utilizing waste resources effectively such as waste plastic in the blast furnace, updating the facilities, and making use of new technologies.

We are also helping to limit global warming by saving energy in other industrial sectors, for example through the development of environmentally friendly products such as high strength steel sheet that is used to make lighter weight automobiles.
History of Energy-Saving Activities
History of Energy-Saving Activities
Production Flows and Main Energy-saving Measures
Production Flows and Main Energy-saving Measures

In fiscal 2006 low-key measures such as saving on the use of steam and air, and improving combustion and recovering waste heat in sintering furnaces were implemented, as well as making facilities more efficient by such means as installing high-efficiency air compressors. Expanded production led to a small increase in energy consumed, but through operational improvements such as lowering the proportion of reductant in furnaces, CO2 emissions went down slightly in comparison to fiscal 2005 and decreased 3.2% from the fiscal 1990 figure.

These operational improvements and careful energy-saving efforts are continuing in fiscal 2007. In addition, increasing efficiency of motors, transformers and other electrical equipment, switching from petroleum-based fuels such as LPG and oil to city gas, and updating power generation with more efficient equipment is all now under review to cut CO2 emissions and meet the targets of voluntary action plans.
Trends in energy consumption and specific energy consumption (Iron and Steel Sector; approximate figures)
Trends in energy consumption and specific energy consumption (Iron and Steel Sector; approximate figures)
Trends in CO2 emissions and specific CO2 emissions index (Iron and Steel Sector; approximate figures)

Notes: Based on calorific values of comprehensive energy statistics. Approximate figures adjusted for plants etc. operating in fiscal 1990.
Aluminum and Copper Company
The Aluminum and Copper Company has been working at saving energy in line with voluntary action plans formulated by the Japan Aluminium Association and Japan Copper and Brass Association.

At the Moka Plant, large-capacity inverter drive motors are operational and we have installed exhaust heat recovery equipment at melting furnaces. At the Chofu Works we have installed special burners on melting furnaces to increase exhaust heat recovery. Furthermore, we are proceeding with switching from coal, oil and other CO2 emitting fuels to natural gas at the Moka Plant, Chofu Works and Daian Plant. For the Aluminum and Copper Company as a whole, CO2 emissions in fiscal 2006 were 11% lower than the previous year. We will encourage further energy saving in fiscal 2007.
Trends in specific energy consumption and CO2 emissions (approx.)
Voluntary action plans

Business Associations' Voluntary Action Plans
Industry segment
(Industrial Association)
(The Japan Iron and Steel Federation)
To reduce energy consumption in production processes by 10% between 1990 and 2010. Also, assuming a collection system is in place, to utilize waste plastic in blast furnaces thereby reducing energy consumption by a further 1.5% of the 1990 figure.
(Japan Aluminium Association)
To reduce specific energy consumption by 10% between 1995 and 2010.
Copper and brass
(Japan Copper and Brass Association)
To reduce energy used in manufacturing by 8.6% between 1995 and 2010.
Industrial machinery
(The Japan Society of Industrial Machinery Manufacturers)
To cut emissions of CO2 by 12.2% between 1997 and 2010. (CO2 emission coefficient for purchased electricity based on 1997 coefficient)
Energy Savings in Logistics
Kobe Steel is striving to improve distribution efficiency by unifying administrative and back office 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 is also making efforts to reduce carbon dioxide emission, including the introduction of low-emission cars.
Some of Japan’s largest unloaders are in operation at Kobe Steel’s Kobe Works
Some of Japan's largest unloaders are in operation at Kobe Steel's Kobe Works

Iron and Steel Sector
Efforts have been made to improve the efficient transportation of products by selecting the optimal routes and means of transport and upgrading information systems such as the shipping allocation system.

Since 2003, action has been taken to deliver products as close to the customer as possible by ship or rail, cutting the distance traveled by trucks, in a modal shift of transport means. Changes affecting about 20,000 tons of cargo per month in the three years from 2003 to 2005 resulted in a 3% cut in CO2 generated by transportation.

Ships for transporting iron ore between the Kakogawa and Kobe Works are being replaced, and the larger-sized Shinko Maru came into service in March 2007 to increase transportation efficiency.

As part of a three-way alliance, Kobe Steel cooperates with Nippon Steel Corporation and Sumitomo Metal Industries in transportation. One measure is the joint operation of vessels in domestic waters. Instead of returning empty after delivering cargo, ships now take on cargo from any of the three companies. This improves efficiency and lowers energy consumption.

Under the medium-term business plan, more focused efforts will be directed to modal shifting and improving the efficiency of transportation by ship and truck. Trucks and trailers used for transportation purposes are gradually being replaced with more fuel-efficient vehicles.
The Shinkomaru
The Shinko Maru
Loading wire rod into a container Loading wire rod into a container
Welding Company
The Welding Company's efforts include efforts to reduce transportation energy by sharing shipping with Group companies and improving load efficiency.
Aluminum and Copper Company
The Aluminum and Copper Company promotes joint distribution with other companies in the same field. For example, the Moka Plant is increasing transportation efficiency through joint shipping with Sumitomo Light Metal Industries, Ltd. The Chofu Works is also expanding its energy-saving measures such as joint shipping and joint utilization of warehouses.

Also, the Moka Plant changed the landing port for some of its imported aluminum ingots from Yokohama Port to Hitachinaka Port, which is closer to Moka, reducing the overland transportation distance by half. When using Yokohama Port, efforts are made to improve transportation efficiency by taking on exports as cargo on the return trip. As a result, the energy used in the domestic distribution of imported ingots is reduced by 7%.

Since 2005, we have also been promoting a modal shift to railways and ferries.
Group Companies' Activities
Company name Location of plant Activities
Kansai Coke and Chemicals Co., Ltd. Kakogawa, Hyogo Prefecture Energy saving through improved combustion controls for coke ovens and a modified cleaning method for heat exchangers in diesel oil recovery equipment
Nippon Koshuha Steel Co., Ltd. Imizu, Toyama Prefecture
Energy saving through replacement of refractories in heating furnaces and improved combustion control of heat treatment furnaces
Shinko Wire Company, Ltd. Amagasaki, Hyogo Prefecture

Kakogawa, Hyogo Prefecture
Inverters for high-frequency quenching furnaces; automatic extinguishing of plant lights

Inverters for wire-drawing and wire-stranding machines ; Upgrade of transformer room to improve efficiency
Kobe Special Tube Co., Ltd. Shimonoseki, Yamaguchi Prefecture Energy saving through improved combustion control of through furnace and reduced quantity of steam used in pickling
Shinko Bolt, Ltd. Ichikawa, Chiba Prefecture

Switch of fuel for heat treatment furnaces

Sanwa Tekko Co., Ltd. Inuyama, Aichi Prefecture

Energy saving through improved slitter productivity

Kobelco Logistics, Ltd. Kobe, Hyogo Prefecture Shortening iron ore unloading time and reducing the use of fuel
Shinko Kobe Power Inc. Kobe, Hyogo Prefecture Energy saving through improved sealing of air pre-heaters, reduction of pressure loss through boiler cleaning
Kobe Welding Wire Co., Ltd. Fukuchiyama, Kyoto Prefecture Measures implemented to reduce leaking of compressed air and steam
Hanshin Yosetsu Kizai Co., Ltd. Okayama, Okayama Prefecture Measures implemented to save pump energy and reduce fuel consumption in drying and baking furnaces
Shinko Metal Products Co., Ltd. Kita-Kyushu, Fukuoka Prefecture Switch of fuel for heating furnaces, energy saving through redesigning extraction doors, and high efficiency transformers installed
Shinko Leadmikk Co., Ltd. Kita-Kyushu, Fukuoka Prefecture Energy saving through replacing transformers and air conditioning
Shinko Electric Co., Ltd. Toyohashi, Aichi Prefecture
Ise , Mie Prefecture
Energy saving through integrating drying furnaces and replacing transformers
Fuel for boilers switched and air conditioning replaced
EarthTechnica Co., Ltd. Yachiyo, Chiba Prefecture Energy saving through switch of fuel for heat treatment furnaces and reduction in defect rate
Kobelco Cranes Co., Ltd. Akashi, Hyogo Prefecture Switching to inverters in painting equipment
Genesis Technology Inc. Hayami-gun, Oita Prefecture Energy saving through inverters for air conditioning equipment, and energy-efficient operation of facilities, etc.
Energy Savings in Offices
Kobe Steel and its Group companies are promoting 'eco-office' activities. Efforts to reduce energy consumption include a Summer 'Eco Style' Campaign to encourage employees to wear light clothing so that air conditioning can be set at a higher temperature and Winter Energy Saving Campaign, where the thermostat is set at a lower temperature, as well as converting offices to use low-energy lighting. Summer ‘Eco Style’ Campaign poster
Summer 'Eco Style' Campaign poster
Winter Energy Saving Campaign poster
Winter Energy Saving Campaign poster