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Disaster Prevention Activities

The Kobe Steel Group continues to adopt protective measures for its facilities and prepare for natural disasters through such means as holding Group-wide disaster prevention meetings, establishing disaster response systems, and holding training exercises. These measures are actively pursued in order to prevent accidents from occurring and to minimize damage if a disaster does strike. We will continue to raise every employee's awareness of the importance of disaster prevention while further pursuing disaster prevention activities on a Group-wide level.

FY2008 Company-Wide Disaster Prevention Management Policy

Respect for human life
Continuity of corporate activities
Cooperation with local communities

The Kobe Steel Group strives to be adequately prepared for typhoons, earthquakes and other natural disasters, while working to eliminate fires, explosions, and leaks.
Measures Taken to Reduce Fires, Leaks, and Other Facility Accidents
- Reviewing the content of facility inspections
- Reconfirming and implementing steps that should be taken
- Conducting training programs based on specific disaster scenarios
Measures Taken to Prepare for Earthquakes, Typhoons and Other Natural Disasters
- Anticipating regional natural disaster damage and assessing risk
- Determining pertinent issues and formulating countermeasures on the basis of risk assessment
- Conducting training exercises premised on a large earthquake and other disaster scenarios
Organizational Chart for Company-Wide Disaster Prevention Management
Organizational Chart for Company-Wide Disaster Prevention Management

Disaster Management in Times of Emergency

In the event of a large-scale earthquake or other natural disaster or accident, a Disaster Management Headquarters will be set up to conduct relief work and restoration activities.

In addition, the Kobe Steel Group Intranet will be used to share emergency information and news about employee safety disseminated from the Group companies affected.
Organization Chart for Disaster Management Headquarters
Organization Chart for Disaster Management Headquarters

*The General Manager of the Disaster Management Headquarters is the President of Kobe Steel. The President appoints the Deputy General Manager of the Disaster Management Headquarters.

Disaster Prevention Measures at Plants, Works and Offices

Despite our best efforts to prevent accidents, we were unable to prevent fires from breaking out in FY2008. We have investigated the causes and are taking appropriate countermeasures. We will continue our efforts to prevent recurrences and the outbreak of similar accidents in the future.
Accidents and Incidents at Manufacturing Locations in FY2008
Operating Location Number of Incidents
Kobe Works
0
Kakogawa Works
2
Fujisawa Industrial Operations
0
Ibaraki Plant
0
Saijo Plant
0
Moka Plant
0
Chofu Works
0
Daian Plant
0
Harima Plant
0
Kobe Corporate Research Laboratories
0
Takasago Works
13
* Many fires broke out at Takasago Works that were caused by faulty electrical equipment. In response, we conducted comprehensive inspections of similar equipment and, with the cooperation of the local fire department, held three training sessions.
Main Incidents in FY2008
Date and Location Incident
May 2008
Kakogawa Works
Gas welding during construction caused a fire in a wooden cooling tower. The fire almost completely consumed the tower.
July 2008
Takasago Works
An old electrical cable shorted and ignited, causing burn damage to the cooling fan and nearby wiring of a titanium crusher.
December 2008
Takasago Works
Sparks generated by a control board inside an elevator machine room ignited combustible material inside the room. The fire later spread to flexible container bags that are used to collect dust.

Measures to Ensure the Safety of In-House Power Plants at Company Steelworks

We are continuing measures that were initiated in FY2006 to prevent the recurrence of accidents and ensure conformity with technical standards cited in the Electricity Utilities Industry law. The following measures were taken in FY2008.
(1) Measures Related to Strengthening Safety Management Systems and Functions, and Measures Related to Regulations and Standards
We have continued to implement measures that were finalized in FY2007 regarding the strengthening of safety management systems and functions at power generating facilities.
(2) Measures Related to Equipment and Technology
We implement various measures related to equipment and technology used in in-house power generating facilities operating at Kakogawa Works and Kobe Works. Of the 24 measures planned, 23 were completed as of FY2008.

Main Measures Completed in FY2008
Kakogawa Works Replaced the condenser in the No. 2 steam turbine generator
Installed an automatic control system for boiler water-quality management
Replaced boiler piping and furnace evaporator piping
Implemented regular operator inspections ahead of schedule
Kobe Works Replaced the last-stage blade of the No. 8 steam turbine generator
Replaced the No. 1 steam turbine generator
The final measure to be completed is the replacement of the in-house power generation facility's boiler at Kakogawa Works. This final project is on track for scheduled completion in December 2014. In FY2008, environmental impact assessments were implemented related to boiler replacement.

Disaster Prevention Activities at Plants, Works and Offices

The Kobe Steel Group implements regular disaster prevention training programs at various operating locations. At Moka Plant, for example, we conducted a plant-wide evacuation exercise premised on a scenario of a major earthquake. The exercise included the simulation of a leaking kerosene tank and other realistic elements. Approximately 600 people participated, including personnel from cooperating companies. Training to deal with a leaking kerosene tank
Training to deal with a leaking kerosene tank

Exercise to provide care for wounded victims
Exercise to provide care for wounded victims

Group Disaster Prevention Meeting

The Kobe Steel Group holds an annual Group Disaster Prevention Meeting that is attended by representatives from Kobe Steel's works, plants and offices and Group companies. These meetings give disaster prevention managers an opportunity to share information and find lateral applications for their knowledge.

The meeting held on November 18, 2008 was attended by 128 people from 64 Group companies. They introduced examples of disaster prevention measures taken at various operating locations, shared information about changes in related laws and ordinances, and listened to a special presentation given by Mr. Kazuaki Ito, chairman of the Information Institute of Disaster Prevention.
Group Disaster Prevention Meeting in November 2008
Group Disaster Prevention Meeting in November 2008

Topics
Kobelco 1/17 Walk
On January 17, 2009, the third annual Kobelco 1/17 Walk was held as an exercise to ensure that employees understand how to get to work safely in the event of a major disaster. More than 200 employees and family members participated. They walked either from their homes or from designated train stations with the aim of confirming the routes they would take if a large earthquake made walking necessary. They were provided in advance with maps and went through a checklist of places that felt dangerous, while confirming the locations of convenience stores and evacuation sites. In this way, the event was a meaningful exercise helping employees prepare for an earthquake or other natural disaster.

Walking a maximum distance of 13 kilometers (four hours), participates were pleased to find steaming bowls of udon noodles and rice balls waiting for them at the end of their trek. They enjoyed sharing their walking experiences while savoring their well-deserved meal.
Participants arrive at the destination of the Kobelco 1/17 Walk.
Participants arrive at the destination of the Kobelco 1/17 Walk.


VOICE
Director's Message
Taking a Medium- and Long-Term Perspective in Pursuing Group-Wide Disaster Prevention Activities
Hiroya Kawasaki, Director Responsible for Disaster Prevention (Officer, Kobe Steel, Ltd.)

Major earthquakes occur almost annually somewhere in the Japanese archipelago, and we continue to experience fires and other accidents at our steelworks. In view of this, we understand that we can never relax our vigilance when it comes to disaster prevention.

The Kobe Steel Group suffered great losses in the Great Hanshin-Awaji Earthquake of 1995. Learning from that experience, we have instituted various anti-earthquake measures, both organizationally and physically, and have also made steady efforts to reduce the number of accidents occurring in our many operating locations.

A new program scheduled to begin in FY2009 is a comprehensive, Group-wide pursuit of disaster prevention activities based on a medium-term strategy that will be undertaken in addition to the facility-centered efforts that have been the main focus of past efforts.

The quest to reduce disaster-related losses never ends. In the years ahead, we will continue our sustained efforts to implement each activity with the goal of improving our disaster preparedness.
Hiroya Kawasaki