An Overview of the Showa Denko Group (as of December 2016)

Transcription

1 An Overview of the Showa Denko Group (as of December 216) Company name Head office location Number of consolidated subsidiaries Total number of employee Showa Denko K.K. 13-9, Shiba Daimon 1-chome, Minato-ku, Tokyo , Japan 48 1,146 Consolidated business results Sales 671billion yen 42.1billion yen Net attribute to owners of the parent 123billion yen Business Sites Sites in Japan Higashinagahara Plant Kitakata Plant Isesaki Plant Oyama Plant Head Office Oyama Plant (Nasu) Nagoya Branch Chichibu Plant Osaka Branch Fukuoka Branch Kawasaki Office A Institute for Advanced and Core Technology B Institute for Integrated Product Development Kawasaki Plant Yokohama Plant Omachi Plant Shiojiri Plant Hikone Plant Sakai Plant Tatsuno Plant Chiba Plant 1 A B Tokuyama Plant Oita Complex For information on main Group companies in Japan, please go to the P19 Sales Net attribute to owners of the parent million yen 1, 847,83 8, 739,675 6, 872, , ,159 million yen 5, 4, 3, 28,18 25,953 33,58 42,53 million yen 15, 12, 9, 9,368 9,65 12,35 4, 2, 2,551 6, 2, 1, 3, 2, SHOWA DENKO REPORT 217

2 Europe SHOTIC Europa Industria de Aluminio Lda. Showa Denko Europe GmbH Europe East Asia East Asia Shanghai Showa Chemicals Co., Ltd. Shanghai Showa Highpolymer Co., Ltd. Shanghai Showa Electronics Materials Co., Ltd. Shanghai Showa Highpolymer Trading Co., Ltd. Zhejiag Quzhou Juhua Showa Electoronic Chemical Materials Co., Ltd. Showa Denko Sichuan Carbon Inc. Showa Denko (Dalian) Co., Ltd. Showa Denko Aluminum (Nantong) Co., Ltd. Ganzhou Zhaori Rare Earth New Materials Co., Ltd. SHOWA DENKO New Material (Zhuhai) Co.,Ltd. Showa Specialty Gas (Taiwan) Co., Ltd. Taiwan Showa Chemicals Manufacturing Co., Ltd. Showa Denko HD Trace corp. Korea Showa Chemicals Co. Southeast Asia Southeast Asia Showa Specialty Gas Singapore (Pte.) Ltd. SHOTIC (Singapore) Pte Ltd. Showa Denko HD Singapore Pte Ltd. Showa Denko Singapore (Pte)Ltd. Showa Denko Rare-Earth Vietnam Co., Ltd. Hanacans JSC Showa Aluminum Manufacturing Philippines Corporation Showa Denko HD (Malaysia) Sdn.Bhd. SHOTIC MALAYSIA Sdn.Bhd. Overseas Sites North America North America Showa Denko Carbon, Inc. Showa Aluminum Corporation of America Showa Denko America, Inc. About Showa Denko CSR Financial (Major Subsidiaries as of March 31,217) Number of employees Discharged amounts of greenhouse gases Frequency rate of lost-time injuries 12, 1, 9,89 1,234 1,577 1,561 1,146 Overseas Japan kt-co2 3, 2,5 2,54 2,673 2,675 2,687 2, Showa Denko Group Showa Denko 8, 6, 4, 2, 4,88 4,329 4,645 4,688 5,82 5,95 5,932 5,873 4,71 6, , 1,5 1, SHOWA DENKO REPORT

3 History of the Group History of the Group The Showa Denko Group started its business operations by focusing on the bright future of the electrochemical industry, which utilized one of Japan s important resources: abundant water energy. Originating from electrochemistry, our Group s technology further evolved to cover the fields of inorganic chemistry, organic chemistry and metal materials. Today, the gene of our original technology is inherited to a wide variety of products that are essential in everyday life, including materials and components used in the information/ telecommunication industry and the automotive industry. 198 With the business on track under the spirit of tenacity and indomitability, established the foundation of the Showa Denko Group. Showa Denko K.K. Showa Aluminum Corporation Showa Highpolymer Co., Ltd. Technology and products CSR Event 1931 Started manufacturing ammonium sulfate using domestic technology (Showa Fertilizers K.K.) 1934 Industrialized domestically produced aluminum (Nihon Iodine K.K.) 198 Established Sobo Marine Products K.K Established Nihon Iodine K.K Established Riken Kohaku Kogyo K.K Established Takada Aluminum Equipment Manufacturing K.K Established Showa Fertilizers K.K Established Showa Denko K.K Deepened and further developed business, taking advantage of postwar reconstruction and rapid growth 1945 Resumed production of ammonium sulfate fertilizer 1951 Achieved domestic production of synthetic resin emulsion 1953 Achieved domestic production of unsaturated polyester resin 1965 Achieved domestic production of vinyl ester resin 1969 Showa Aluminum Can Corporation produced the first aluminum can in Japan 1981 Started aluminum can collection activities at certain plants 1969 Oita Petrochemical Complex started commercial operation 1981 Developed the Cojunal Method, a high-purity aluminum refining method 1986 Switched to energy-saving products after overcoming oil crises 1986 Started manufacture and sale of aluminum cylinders 199 Started company-wide aluminum can recycling activities 1995 Formulated Responsible Care Action Guidelines 1997 Published Responsible Care Report 1998 Established Our Code of Conduct 1986 Acquired a graphite electrode business in the United States, and established Showa Denko Carbon, Inc Expanded into the hard disk business 21 Expanded into the energy-saving and high value-adding business in full-scale, through the fusion of organic/inorganic and aluminum technologies. 23 Started the business to recycl used plastic as material for ammonia at Kawasaki Plant 25 Started mass production of perpendicular magnetic recording hard disks first in the world 29 Started production of cooling devices for power control units 21 With the merger with Showa Aluminum Corporation as the trigger, expanded aluminum can recycling activities to Showa Denko s plants, offices and group companies 25 Issued a CSR Report 25 Signed the RC Charter 21 Merged Showa Aluminum Corporation 29 Established Showa Denko HD Yamagata K.K 21 Merged Showa Highpolymer Co., Ltd. 211 Engaged in Shaping Ideas in pursuit of evolving chemical company with individualized products through the fusion of organic / inorganic and aluminum technologies 211 Received the 43rd Ichimura Industrial Award for the development of cooling devices for power control units 213 Our LED lighting equipment for plant growth received the Nikkei Business Daily Merit Award of the 212 Nikkei Superior Products & Services Award 216 Receives 216 Top 1 Global Innovators Award, 2 Years in a Row 212 Established Our Code of Conduct and Its Practical Guide 213 Our long history of aluminum can recycling activities received the Minister of Economy, Trade and Industry's Prize of the 3Rs (Reduce, Reuse, and Recycle) Promotion Merit Awards in FY Resigned the amended Responsible Care Charter 214 Received the Special Incentive Award of the Ikumen Company Award 214 sponsored by the Ministry of Health, Labour and Welfare 216 Received the Platinum Kurumin 216 Deciding to acquire SGL GE's graphite electrode business 217 Established Advanced Battery Materials Division 12 SHOWA DENKO REPORT 217

4 Showa Denko Group's Technological Lineage Carbide Nitrolime Magnet alloys Electrochemical Electrical Furnaces 気分解Electrolysis Product Technology Purchase or intermediate Ferroalloys Graphite Ceramics 電Water electrolysis Salt electrolysis Hydrogen High-pressure technology Graphite electrodes Rare earth metal VGCF TM (Carbon nanotube) Super hard materials Abrasives for semiconductors Abrasive grains Refractory materials Extreme pressure Technologies for making fine powder Chlorine Ammonia Fertilizers Organic synthesis Caustic soda Petrochemical Gases for medical use Highpolymer Polyolefin Specialty gases for semiconductors Catalysts Acetic acids Aluminum polymer solid condenser Shodex TM Acrylonitrile SCMG TM (Material for negative electrodes in lithium ion cells) Amino acid Agricultural chemicals Phenol resin Sputtering Allylic esters Hard disks BMC Vitamin derivatives Agrochemical intermediates Biodegradable plastic About Showa Denko CSR Financial Aluminum hydroxide LED Fused salt electrolysis Alumina Gallium Epitaxial growth Aluminum Chemical alumina Melting and casting Rolling Extrusion Casting and forging Chemical vapor deposition Aluminum foils for capacitors Titanium Titanium oxide Aluminum cans Aluminum cylinders SHOTIC TM Heat exchangers SHOWA DENKO REPORT

5 Introduction of Businesses of the Group Petrochemicals 26% Petrochemicals Segment Sales 1,858 2, Petrochemicals Petrochemicals Division (Olefins Department, Organic Chemicals Department) The Petrochemicals segment provides basic petrochemicals including ethylene and propylene, and organic chemicals derived from them, including acetyls and allyl alcohol derivatives. Ethylene We contribute to effective use of resources and high cost competitiveness by not relying solely on naphtha (raw material diversication) to produce ethylene, which is widely used to produce various petrochemicals. n-propyl acetate (NPAC) Demand for NPAC, which is used as a solvent for special gravure printing ink, has been increasing as an environmentfriendly substitute for the currently popular toluene. We are promoting the sales of the highly transparent and heatresistant film SHORAYAL TM as a glass substitute to be used in displays for mobile devices and other equipment. SHORAYAL TM QUALEAR TM is a new kind of polypropylene manufactured and sold by SunAllomer Ltd. This product, which is well balanced in terms of transparency, resistance to shocks, and rigidity, meets the needs of customers in the food packaging and automobile fields in particular. QUALEAR TM Holding a dialogue meeting with local residents In February 216, Showa Denko s Oita Complex took part in a dialogue meeting with local residents on Responsible Care. The meeting, the 1th of its kind, was organized in partnership with the Japan Chemical Industry Association and 1 companies located in the Oita coastal industrial zone. About 2 people participated in the biennial meeting, which included a factory tour and a lecture session. Participants were briefed on the safety and environmental measures taken at the plants of the hosting companies and opinions were shared by both sides. Locals had lots of questions, opinions and requests for the participating companies about their earthquake and tsunami countermeasures and environmental issues. As we continue to conduct our business activities, we will firmly keep the opinions of local residents in mind. 14 SHOWA DENKO REPORT 217

6 Chemicals 19% Chemicals Segment Sales 1,345 1, Chemicals Electronic specialty gases Showa Denko manufactures and sells vitamin derivatives (ascorbic acid PM, Apprecier TM, and TPNa TM ), a slimming agent (Hi-Carnitine), and hair care products (DL-Cysteine and SPIERA TM ). Industrial Gases Division, Basic Chemicals Division (Industrial Chemicals Department, Organic Industrial Chemicals Department), Electronic Chemicals Division, Functional Chemicals Division (Functional Polymers Department, Specialty Chemicals Department) The Chemicals segment provides wide-ranging products, from industrial gases, industrial chemicals, highperformance chemicals, and elastomers, to electronic specialty gases and chemicals for the semiconductor industry, resins for reinforced plastics, HPLC columns and raw materials for cosmetics. Electronic specialty gases are used in production processes for electronic components such as semiconductors, LCD panels, LEDs, and solar cells. Showa Denko manufactures dozens of these high-purity gases including ammonia, chlorine, and fluorinecontaining gases. Cosmetic raw materials Unsaturated polyester resin Showa Denko Gas Products Co., Ltd. contributes to securing safety and stable supply of food resources by supplying carbon dioxide mainly for carbonated beverages and dry ice for cooling. Rigolac TM, unsaturated polyester resin that meets requirements for a lightweight material with high durability and high corrosion resistance, is used for a wide range of applications including automotive components, home appliances, and ocean development. Carbon dioxide and dry ice About Showa Denko CSR Financial Enhancing the supply system in China for the thermosetting bulk molding compound business In January 217, Showa Denko New Material (Zhuhai) Co., Ltd. began the mass production and sale of thermosetting bulk molding compounds (BMCs) as the Showa Denko Group s second BMC base in China. BMC is a thermosetting bulk molding compound made from unsaturated polyester resin as main component, kneaded together with glass fiber and other additives. BMC is put to various uses including headlamp reflectors and engine covers for car applications, and precision mold parts for projectors. Moreover, the range of BMC's use is expected to increase in the future. BMC is expected to be used as sealing material for power-module housings and motors in home appliances including air conditioners and washing machines, and also as sealing material for motors in EVs and hybrid cars. SHOWA DENKO REPORT

7 Introduction of Businesses of the Group Electronics 14% Electronics Segment Sales 1,33 1, In 217, we transferred the lithium-ion battery material business from the Others segment to the Electronics segment. As such, the numerical data shown above do not include those for that business. Electronics Electronics Materials Division, HD Division, Advanced Battery Materials Division The Electronics segment provides compound semiconductor materials for ultrabright and high-output LEDs; rare earth magnetic alloys for high-performance motors; and HD media with high storage capacity for use in PCs, consumer electronics such as DVD recorders and game machines, and servers for data centers. We are supplying lithium-ion battery materials and promoting R&D of fuel cells. LED In addition to a broad lineup of infrared LED chips used as light sources for optical sensors for various applications, we also offer high-output red LED chips optimized specifically for plant growth. Rare earths The demand for rare earth magnet alloy is growing in fields such as drive motors for hybrid cars and energy efficient home electric appliances. We are also strengthening the development of next-generation magnet alloys with d expensive heavy rare earth content. As the world s largest hard disk manufacturer and seller, the Showa Denko Group is utilizing the leading-edge technologies to expand the storage capacity of its hard disks, while building the optimal production and supply system to help the Group meet the requests of customers in a smooth manner. HD For the lithium-ion battery market, we offer a variety of items, including SCMG TM long-life anode material, VGCF TM unique anode and cathode additive featuring high stability and quality, and SPALF TM aluminum laminated film produced and marketed. Lithium-ion battery materials SDK to expand production capacities for LIB materials SDK positions its LIB materials business as an advantage-establishing business in its medium-term business plan Project 22+, aiming to establish a business model that has competitive advantages in terms of earning power and technical development. Demand for LIB materials has been growing rapidly. This is because demand for large LIBs is increasing mainly for automotive applications, in addition to demand for small LIBs for smartphones. In January 216, Showa Denko started to outsource a part of its SDX TM carbon-coated aluminum foil in China. Subsequently, in June and August, we decided to enhance the production capacity for our SCMG TM carbon-based anode material and our VGCF TM conduction support agent for cathodes and anodes, respectively. 16 SHOWA DENKO REPORT 217

8 Inorganics 7% Inorganics Segment Sales ー Inorganics Graphite electrodes With a hardness coming second only to diamond, CBN is used for tools to cut automotive and other components. Ceramics Division, Carbons Division The Inorganics segment provides ceramic products such as alumina, polishing materials, abrasives, and refractories; graphite electrodes for electric steel-making furnaces. Graphite electrodes contribute to iron and steel recycling as a component to melt iron and steel scraps in electric steel furnaces. Our graphite electrodes are rated very highly by customers throughout the world due to their excellent quality. CBN (cubic boron nitride) Alumina SUPER-TITANIA TM high-purity titanium oxide is used as one of the main materials in ceramic capacitors installed in familiar electronic and electrical devices. Alumina is widely used among various industries, for purposes such as ceramics, filers for plastics, refractories, and abrasives. Ceramics for capacitors About Showa Denko CSR Financial Deciding to acquire SGL GE s graphite electrode business In October 216, Showa Denko K.K. concluded an agreement with the SGL Group of Germany regarding the acquisition of SGL s graphite electrode business, SGL GE. The transaction is expected to be finalized in the middle of 217. With the addition of SGL GE s manufacturing bases in Europe, the US, and Southeast Asia, Showa Denko s graphite electrode business will cover the entire world market, enabling it to provide customers with highly attractive products and services so as to further enhance the business and establish its position as a leading graphite electrode supplier. SHOWA DENKO REPORT

9 Introduction of Businesses of the Group Aluminum 14% Aluminum Segment Sales 986 1, Aluminum Aluminum Rolled Products Division, Aluminum Specialty Components Division, Aluminum Can Division The Aluminum segment provides aluminum materials including rolled, extruded and forged products; and various high-value-added fabricated aluminum products such as high-purity aluminum foil for capacitors, aluminum cylinders for laser beam printers, radiators for power devices installed in hybrid cars and other vehicles, and aluminum cans for beverages. High-purity aluminum foil High-purity aluminum foil is a key material in electronic components essential to IT devices, home electric appliances, and automobiles. High-purity aluminum foil for electrolytic capacitors is produced through precise control of purity and manufacturing processes. Cooling devices We provide oil coolers, heat sinks and other heat exchangers for industrial equipment, as well as cooling devices for hybrid car power control units. We are producing SHOTIC TM continuously cast rods of aluminum alloy and their forgings. The fine alloy structure contributes to reducing the weight of automobiles and the products are used as parts for compressors of in-vehicle air conditioners, etc. SHOTIC TM Showa Aluminum Can Corporation was the first to manufacture aluminum cans in Japan. Its lightweight and recyclable aluminum cans are sold both in Japan and abroad. In 216 the production of sleek cans* was also launched at Hanacans site in Vietnam. Aluminum Cans * Sleek cans: have a smaller diameter and greater height compared with regular cans, and are increasingly adopted across the world in recognition of design excellence. SDK launches SHOCARES TM bed sensor for care Showa Denko has developed SHOCARES TM bed sensors for care, and started to sell them in October 216. SDK developed SHOCARES TM bed sensor by taking advantage of aluminum s properties of high rigidity and light weight. By sensing slight changes in weight and applying Showa Denko s original algorithm, the sensor detects the movements of the bed user, including lying on the bed and getting up from the bed, and helps reduce the risk of the user falling out of the bed by informing the nurse or caregiver of the likelihood as detected from the user s movements. SHOCARES TM comes with new design to be put on the floor just underneath four legs of a bed, and can be easily used with existing beds. 18 SHOWA DENKO REPORT 217

10 Etcetera 2% Etcetera Segment Sales 1,424 1, The numerical data shown above include those for the lithium-ion battery materials business. Development Themes and Related Businesses Included in this section are themes for future businesses as well as the manufacture and sale of various chemical products, light metals, and building and civil engineering materials. SiC epitaxial wafers Major Subsidiaries in Japan Petrochemicals segment Sun Allomer Ltd. Tsurusaki Kyodo Doryoku K.K. The wafers are used as materials for nextgeneration power semiconductors, which are expected to contribute to energy conservation. They have already been used in power supplies for data center servers and in devices for railway cars. Electronics segment Showa Denko HD Yamagata K.K. Showa Denko Packaging Co.,Ltd. E-POLE lighting system E-POLE, produced and marketed by Showa Denko Aluminum Trading K.K., stores electricity generated by its photovoltaic cells during the day and uses it to power its LED lamps at night. The system is capable of providing illumination for three to four days continuously even under low light and cloudy conditions. Aluminum segment Showa Aluminum Can Corp. About Showa Denko CSR Financial Chemicals segment Showa Denko Gas Products Co., Ltd. Nippon Polytech Corp. Inorganics segment Showa Denko Ceramics Co., Ltd. Showa Fine Ceramics Co., Ltd. Showa Denko Kenso Co., Ltd. Others segment Shoko Co., Ltd. Showa Denko Kenzai K.K. Major Subsidiaries as of March 31,217 Acquiring non-stick coatings manufacturer the GMM Group In November 216, Showa Denko K.K. acquired all shares of the GMM Group, a Hong Kong-based manufacturer and seller of non-stick coating chemicals used to prevent the burning on, fouling, and soiling of cookware, home electrical appliances, and industrial equipment. By the acquisition of these shares, we will expand our value chain into downstream markets to broaden the scope of our technologies that provide the foundation of our business activities, thereby fostering the establishment of new individualized businesses within our Group. SHOWA DENKO REPORT