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Environmental Report

Environmental Impact of NOF Group Companies


Nippon Koki Co., Ltd.


<Environmental Policies>

Nippon Koki's management philosophy regarding its business involvement in long-term defense and explosives is to contribute to society by providing first-class customer-oriented products, thereby satisfying all concerned parties. The Shirakawa Plant, the company's production base, is located in a luxuriant forest environment surrounded by mountains. We have always carefully considered the effect of our business activities on the environment. Looking ahead, we will address all environmental problems, including continuously working to prevent pollution.

1.   Comply with environmental laws and regulations, and adhere to the company's environmental agreements and other requirements.
2.   Work positively to conserve energy resources, including electricity, water, fuel and paper, and help prevent global warming and curb resource depletion.
3.   Reduce the use of hazardous chemicals and use substitutes.
4.   Work to prevent atmospheric pollution and water contamination.
5.   Reduce and recycle waste materials, and appropriately treat and control waste materials.
6.   Effectively use resources and minimize the burden on the environment of both newly developed and existing products by considering the raw materials, the products themselves, and recycling.
7.   Set environmental objectives and targets, and continuously improve them.
8.   Educate all employees about the environment to enhance their understanding.
9.   Ensure these environmental policies are thoroughly disseminated to all employees, and, upon request, openly disclose them to parties outside the company.
President: Kunihiko Tanaka
President: Kunihiko Tanaka

Shirakawa Plant
Shirakawa Plant

Business lines:
Production of defense equipment and industrial explosives; production and sale of pyrotechnics and crime prevention products.

Main environmental data (for Shirakawa Plant):

Item FY2001 FY2002 FY2003
Net sales (¥ million/year) 10,882 10,275 9,676
Production (t/year) 6,693 5,640 5,130
CO2 emissions (t/year) 9,836 9,929 9,641
Waste generated (t/year) 435 689 370
External landfill (t/year) 44 13 4

ISO 14001 certification: Acquired December 2003



Nichiyu Giken Kogyo Co., Ltd.


<Environmental Policies>

Under the slogan “From the oceans to outer space,” Nichiyu Giken Kogyo creates new and special products with originality and ingenuity, working to ensure the safety of various systems and maintain our customers' trust in business fields ranging from the deep-sea floor to outer space.

Looking ahead, the company will strive to not merely provide products beneficial to society, as an R&D company, we will also fulfill our social responsibilities and reconcile business and environmental needs. This will be achieved by designing products that give priority to people's health and safety, environmental preservation and safe operation, through all stages from development to disposal.

Cooperating with local communities
All employees work positively as part of the local community to implement environmental measures, ensuring local residents’ safety and the protection of the environment.
Compliance with laws
The company complies with all relevant laws in all its business activities, and cooperates with national and regional environmental policies.
Appropriate control of chemicals
The company ensures the safety of chemicals and their appropriate use. In the unlikely event of an environmental or safety problem occurring, the company takes full responsibility for remedying the situation.
Product development
The company develops products that maximize safety and minimize the burden on the environment by giving due consideration right from the design stage for hazardous substances, saving resources and energy, and reducing waste materials generated.
Reducing the burden on the environment
In its production activities, the company effectively uses resources and energy, reduces waste materials, promotes reuse and recycling, and works to continuously reduce the impact of its operations on the environment.
Employee education
The company continuously educates all employees to improve their understanding about environmental protection.
President: Hisashi Owaki
President: Hisashi Owaki

Kawagoe Plant
Kawagoe Plant

Business lines:
Production and sale of thermal indicator materials for temperature control, sterilized medical materials, construction materials, electrical materials, rocket components, processed chemical materials and marine equipment.

Main environmental data (for Kawagoe Plant):
Item FY2001 FY2002 FY2003
Net sales (¥ million/year) 6,075 6,249 6,481
Production (t/year) 750 762 843
CO2 emissions (t/year) 1,286 1,696 1,808
Water used (1,000 m3/year) 25 32 32
Waste generated (t/year) 85 108 90
External landfill (t/year) 33 35 28

Eco Action 21 (for ISO 14032):
Passed screening April 2004
Scheduled to acquire certification in October 2004
ISO 9001:
Scheduled to acquire certification in March 2005



Showa Kinzoku Kogyo Co., Ltd.


Business lines:
Production and sale of gun detonators, blanks, pyrotechnics, and gas generators for seatbelts.

Business motto:
Guided by our mission to ensure safety and preserve the environment, we do our utmost to ensure the safety and health of all employees and local residents.

President: Ikuo Araki
President: Ikuo Araki

Main environmental data (for Iwase Plant):
Item FY2001 FY2002 FY2003
Net sales (¥ million/year) 1,880 1,993 1,950
Production (t/year)
CO2 emissions (t/year) 487 539 508
Water used (1,000 m3/year) 7 5
Waste generated (t/year) 72 72 67
External landfill (t/year) 1 1 1

ISO 9001 certification: Acquired March 2003



Yuka Sangyo Co., Ltd.


Business lines:
Sale of oils and fats and chemical products; production and sale of raw materials fro cosmetics.

Yamato Plant
Yamato Plant
President: Hisao Ota
President: Hisao Ota

Main environmental data (for Yamato Plant):
Item FY2001 FY2002 FY2003
Net sales (¥ million/year) 478 483 513
Production (t/year) 1,976 2,168 2,412
CO2 emissions (t/year) 78 94 106
Water used (1,000 m3/year) 3 2
Waste generated (t/year) 76 60 89
External landfill (t/year) 15 9 9

ISO 9001 certification: Acquired April 2003



Nichiyu Kogyo Co., Ltd.


<Environmental Policies>
Nichiyu Kogyo works to minimize the effect on the environment of all its product-related activities, from production through delivery.
The company:
1. Complies with all environmental regulations, including ordinances and agreements, in cooperation with local communities.
2. Minimizes industrial waste and improves recycling efficiency.
3. Works to save energy and reduce carbon dioxide.

Business lines:
Production of oleochemical and chemical products.

Main environmental data (for Head Office Plant):
Item FY2001 FY2002 FY2003
Net sales (¥ million/year) 536 522 534
Production (t/year) 2,001 2,018 2,238
CO2 emissions (t/year) 702 696 674
Water used (1,000 m3/year) 105 104 103
Waste generated (t/year) 80 73 78
External landfill (t/year) 34 30 31



HOKKAIDO NOF CORPORATION


<Environmental Policies>
The foundation of HOKKAIDO NOF CORPORATION's business activities is ensuring safety, including in an environmental context. On this basis, we contribute to society through our business activities.

Business lines:
Production of industrial explosives; production and sale of road anti-icing agents and dispensing equipment.

Main environmental data (for Head Office Plant):
Item FY2001 FY2002 FY2003
Net sales (¥ million/year) 1,686 1,537 1,167
Production (t/year) 2,360 1,985 1,406
CO2 emissions (t/year) 2,265 2,437 1,785
Water used (1,000 m3/year) 37 35 34
Waste generated (t/year) 553 592 188
External landfill (t/year) 109 139 52



Nippo Kogyo Co., Ltd.


<Environmental Policies>
Nippo Kogyo has reaffirmed that Responsible Care activities are the foundation of compliance with all relevant legislation and the safe operation of plants. To this end, the company enforces rigorous voluntary controls.

Business lines:
Production and sale of ammunition for hunting and trap shooting.

Main environmental data (for Susono Plant):
Item FY2001 FY2002 FY2003
Net sales (¥ million/year) 940 1,134 1,440
Production (t/year) 149 149 122
CO2 emissions (t/year) 595 446 472
Water used (1,000 m3/year)
Waste generated (t/year) 17 32 35
External landfill (t/year) 0 0 0

Highlight:
All industrial waste materials generated are either recycled or sold as valuable resources, thereby resulting in zero landfill.



Nichiyu Logistics Co., Ltd.


<Nichiyu Service Corp. changed its name to Nichiyu Logistics Co., Ltd., effective October 1, 2004>


Business lines:
Truck transport, warehouse storage and handling business.

Business strategies:
By October 2004, Nichiyu Logistics plans to acquire Green Management certification from the EcoMo Foundation, an organization affiliated with the Ministry of Land, Infrastructure and Transport. CO2 emissions for fiscal 2004 were approximately 1,400 tons for the year.

<Environmental Policies>
Nichiyu Logistics has positioned itself as a company that focuses on safe working practices through management that promotes environmental protection. Leveraging its employees’ expertise and corporate experience, the company is able to contribute to society through its business activities.

Environmental policies
1. Comply with all laws, regulations and agreements related to environmental protection, and work to promote activities that protect the environment.
2. To minimize the company's environmental impact, work to reduce the amount of energy, fuel and other resources used.
3. To prevent environmental pollution, work to recycle resources and reduce industrial waste generated.

Environmental targets
1. Reduce gasoline and petroleum consumption by 5% by 2010 (compared to levels in 2003).
2. Reduce electricity and steam consumption by 3% by 2010 (compared to levels in 2003).


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