Special Feature:
20 Years after the Great Hanshin-Awaji Earthquake

Following the Great Hanshin-Awaji Earthquake, Kobe Steel began improving on the BCP (business continuity plan) it had previously put in place. The BCP lays out backup protocol to ensure that important operations remain uninterrupted in the event of a large-scale earthquake or in the case that interruption does occur, that operations can be resumed as quickly as possible. The plan's two major policies call for "ensuring employee life and safety" and "maintaining supply of products and services to customers."

For instance, in the case of an emergency, the plan calls for us to quickly establish a disaster response headquarters to support affected offices and plants. We have also installed satellite phones, emergency wireless communication systems and priority telephone lines at head offices, branches and plants, in case land lines and mobile phones become unavailable. Distributed real-time backup systems between plants and offices are also in place should host computers go down.

It has been 20 years since the Great Hanshin-Awaji Earthquake. The events of that day were tragic, but the lessons we learned have made us stronger, more ready to cope with disaster and more able to satisfy the trust placed in us by customers.

Despite personal losses, the Kobe Steel Rugby Club rose to the occasion to help their community. Having learned from that disaster, they also assisted in the aftermath of the Great East Japan Earthquake.

During the Great Hanshin-Awaji Earthquake, Shinko Hospital* resembled a hospital in a war zone. In addition to treating the injured, the hospital also struggled with a host of problems, including maintaining electricity and food supplies and dealing with sanitation issues. Kobe Steel was quick to provide support to the hospital, which had become a lifeline for the area. We dispatched engineers to repair the hospital's emergency generators as quickly as possible and sent relief supplies that had been stored by the Group.

Two weeks after the earthquake the hospital expanded its efforts by sending volunteer physicians into disaster-struck areas. Additionally, after working on recovery efforts at Kobe Steel during the day, many employees volunteered at night to help with restoration efforts in the community.

*At the time of the earthquake Shinko Hospital was run by Kobe Steel. It became independent in 1998, as an incorporated medical institution of Shinko-Kai Association. It then became a social medical care corporation in April 2015.

There were approximately 400 employees at the Kobe Works when the level-7 earthquake hit at 5:46 am on January 17, 1995. Many were in the middle of dangerous work, including feeding molten iron into the No. 4 Converter, operating a forklift at the Bar Mill, and transporting hot metal. The lives of every employee at the Works were in danger. Looking back, it was a miracle that not a single worker suffered serious injury and all were safe.

While fate played a role, it was obviously more than good luck that contributed to people's safety that day. Safety and preventive measures to deal with accidents, earthquakes and other emergencies were already in place at Kobe Works and other Kobe Steel manufacturing sites. For instance, preparations were in place to deal with molten iron and other molten materials, and to ensure power during an emergency. Damage was minimized that day thanks to the knowledge and good judgment of our employees.

In the 20 years since the Great Hanshin-Awaji Earthquake, the Kobe Steel Group has continued to implement safety and disaster prevention measures to protect our employees' lives in the event of a large-scale earthquake or accident. Companywide earthquake countermeasure provisions are in place at Kobe Steel, and seismic checks and reinforcements are carried out on buildings where people are located. The standard for these buildings is that they should be able to resist functional damage (no collapse and repairable) even during an earthquake of seismic intensity 6 on the Japanese scale. We also identify workplace safety risks that could occur during an earthquake and implement appropriate countermeasures. For instance, measures are in place to stop coil from rolling during tremors. There are also emergency response guidelines in place to deal with the possibility of large-scale tsunami.

Additionally, we hold the Kobelco 1/17 Walk (Kobe Head Office) and drills to practice returning home after a disaster (at four locations including the Kobe and Tokyo head offices), to ensure that workers are familiar with commuting routes in the event that regular public transport becomes unavailable during an emergency. We also hold a group disaster prevention meeting each year and carry out surveys into disaster prevention at major Group offices and plants. The results of these surveys are used to improve disaster and personnel training. Through these and other measures we aim to continuously raise our level of safety and disaster prevention.

In the late 1990s, after the liberalization of the wholesale power supply industry, the Kobe Steel Group looked into creating a new IPP business based on a power station adjacent to the Kobe Works. However, building a power station in an urban setting demanded cautious consideration, and it was unclear at first whether we would be able to commercialize such an endeavor.

The Great Hanshin-Awaji Earthquake caused severe damage to the region, and stable power supply became a significant long-term issue. As a result, in order to protect the city's infrastructure and contribute to a more stable supply of power in the region, Kobe Steel decided to move forward with its commercial IPP business.

The decision to move forward with a new IPP business during such a chaotic time showed Kobe Steel's dedication to the region. Then-president Sokichi Kametaka spoke to reporters about the decision. "Kobe Steel has no intention of moving away from Kobe. Our fates are linked, now and forever," he said. This sense of community and responsibility is what led us to start the new IPP business. In turn, we received significant encouragement and support from the people of Kobe, who had become keenly aware of the importance of electricity in light of the effects of the earthquake.

The Shinko Kobe Power Station was created to help ensure stable power supply to the region. The station's No. 1 Power Plant went into operation in 2002. The No. 2 Power Plant went into operation in 2004. Together, they are able to cover approximately 70 percent of Kobe City's power requirements during peak times. The station increases Kobe City's power self-sufficiency through a more diversified power supply network, thus helping to place the city on more stable ground in the event of a disaster.

As an important part of the community, the Kobe Shinko Power Station's role extends beyond simply power supply. Through the supply of thermal energy produced by the generators, the station also contributes to environmental and energy conservation in the region. A variety of community facilities has also been constructed adjacent to the power station, to provide members of the local community with places to gather, relax and refresh themselves. These include Nadahama Science Square, where children can experience the wonder and fascination of science and technology through play, the Nadahama Garden Baden health and spa facility, and Nadahama Sports Zone, which is open to the public and includes tennis courts and an artificial turf sports ground. Through our IPP business Kobe Steel connects with its hometown of Kobe in a variety of meaningful ways. We plan to continue contributing to the lives of people in the community well into the future.