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Printed in Japan. 2012-06 1,000TP

UBE GROUP PROFILE Group Vision Business Highlights Group Activities

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Cement & Construction MaterialsCement and Ready-mixed Concrete / Building Materials / Limestone / Calcia and Magnesia / Recycling Machinery & Metal Products

Molding Machinery (Die-casting Machines / Injection Molding Machines / Extrusion Presses) / Industrial Machinery (Crushers / Pulverizers / Conveyers) /Bridges and Steel Structures / Steel Products

Specialty Chemicals & ProductsPolyimide / Battery Materials / Gas Separation Membranes / Semiconductor-related Materials and Electronic Materials (High-purity Chemicals / Optical Cable-related Materials) / Telecommunication Devices / Ceramics / Fine Chemicals

Chemicals & PlasticsBasic Chemicals (Caprolactam /Industrial Chemicals / Fertilizer) /Resins (Polyamide / ABS / Polyethylene) /Synthetic Rubbers

Energy & EnvironmentCoal / Electric Power /Environment-related Products

PharmaceuticalsUbe’s products from R&D / Custom Manufacturing

Over its history of more than 100 years,UBE has continuously responded to thechanges in society and industry, devel-oping a range of businesses and pro-ducing a variety of products while con-stantly reforming itself. UBE’s ability to“make things” through creative technolo-gies and the UBE spirit of challenge,which embraces change positively, com-bine to form the Company’s core identi-ty. These values are passed down fromperson to person through the decadesas UBE’s corporate DNA.Under the policy of development cen-tered on the differentiated chemicalbusiness, the UBE Group currently cov-ers six fields: chemicals and plastics;specialty chemicals and products; phar-maceuticals; cement and constructionmaterials; machinery and metal prod-ucts; and energy and environment. Ineach of these areas, the companiesconcentrate on their core competenceguided by the keywords of “technology”and “innovation.” Brandishing ourunique technologies and products, ourgoal is to expand our share in targetmarkets both within Japan and abroad,and to spur on sustainable growth.From the time UBE began “living andprospering together” with Ube City ofYamaguchi Prefecture, the Company’sbirthplace, the Company has maintainedan unchanging tradition of being thor-oughly committed to upholding its bondswith society. How should a successfulcompany live with the community, theworld, and the planet? Seeking new an-swers with this theme in mind, the UBEGroup continues to soar into the worldon an endless flight to the future.

Wings of Technology, Spirit of Innovation.That’s our DNA driving our global success.

The UBE Group, which is imbued with frontier spirit and uses limitless technology to live in harmony with the world, will continue to create next-generation value.

CONTENTSGroup Vision ..........................................02

Business HighlightsChemicals & Plastics..............................04

Specialty Chemicals & Products ............06

Pharmaceuticals......................................09

Cement & Construction Materials .........10

Machinery & Metal Products .................12

Energy & Environment ..........................14

Group ActivitiesResearch & Development ......................16

Advancing the Spirit of “Living and Prospering Together” to Become “Global Coexistence ................18

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UBE GROUP PROFILE Group Vision Business Highlights Group Activities

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ResinsIn the engineering plastics field,UBE’s main products are Polyamide6 and Polyamide 12, of which rawmaterials are also produced in-house. The total production systemhelps the Company keep its competi-tive edge.The wide variety of grades availablefor Polyamide 6 allows it to be usedin an extremely broad range of appli-cations from automobile parts toelectrical appliances, electronics,building materials, fishing lines, syn-thetic leather, and food packing films.As a material contributing to theweight reduction of automobiles,Polyamide 6 is a material in hugeworldwide demand. A global triple

network with plants in Japan, Spainand Thailand has been established inthe same manner as caprolactam tosupply users with Polyamide 6throughout the world. This triple net-work has been established for tech-nological services as well to ensureexcellent quality. There is alsoPolyamide 66, which features en-hanced heat resistance. It is utilizedfor automotive parts, electrical appli-ances and electronics.UBE also manufactures Polyamide12 UBESTA® from the raw materiallaurolactam, which is supplied fromEms-Ube, Ltd., a group company.Polyamide 12 boasts excellent extru-sion and chemical resistance charac-teristics and a demand for it is grow-ing in applications for automobile fuel

Synthetic RubbersUBE’s polybutadiene rubber UBE-POL BR® is a highly trusted productadopted for tire production by theworld’s major tire manufacturers. Ithas an impressive record of achieve-ments with applications in not just au-tomobile tires but also golf balls, autoparts, industrial parts, and footwear,as well as in modified polystyreneresins. In particular, UBEPOL VCR®,developed through our unique tech-nology, has earned admiration for itscontribution to higher performance intires.Production facilities are located inJapan’s Chiba prefecture, Thailand,and China, boasting the largest pro-duction capacity in Japan and thefourth largest in the world. Throughthis tripolar network, superb UBEbrand products are supplied to indus-tries not only in Japan, but through-out the world as well. To accommo-date diversifying demands, the UBEGroup is amplifying its range of highlyspecialized products.

q Application examples of Polyamide 12 UBESTA®

w Application examples of ABS resin (UMG ABS, Ltd.)

e Cushion packing material, Ube Air Cap®

r Application examples of polybutadiene rubber

q Chiba Petrochemical Factory (Ichihara City, Chiba)

Manufactures polybutadiene rubber and polyethylene.

w Sakai Factory (Sakai City, Osaka)Manufactured here are basic chemicals such as caprolactam, and electrolytes for lithium ion secondary batteries.

e Laurolactam plant Ems-Ube, Ltd.Makes laurolactam, a raw material for Polyamide 12.

r ABS plastic manufacturing plant (UMG ABS, Ltd.)

Basic ChemicalsCaprolactam, a raw material for themanufacture of polyamide fibers andresins, typifies UBE’s basic chemi-cals lineup. Ube Industries has es-tablished a global tripolar system withproduction bases in Japan (Ube In-dustries, Ltd.), Spain (Ube ChemicalEurope S.A., a group company) andThailand (UBE Chemicals (Asia)Public Co., Ltd., a group company).The Company boasts a high level oftechnological expertise and a capro-lactam production volume that ranksamong the top three global manufac-turers.In the industrial chemicals field, UBEmanufactures numerous productscentered on organic chemicals, inor-ganic chemicals, and gases. TheCompany supplies these materials toa wide range of industries, includingchemicals, steel, machinery, electri-cal, and foodstuffs. Ube Ammonia In-dustry, Ltd., a group company, manu-factures ammonia, which is a basicraw material used in a wide range ofapplications. At UBE-MC HydrogenPeroxide Ltd., hydrogen peroxide,with applications ranging from paperand pulp bleaching to PCB etchingand waste water treatment, is manu-factured. In the field of agriculture and garden-ing, MC FERTICOM Co., Ltd. manu-factures specialty fertilizers includingslow-release fertilizer and compoundfertilizer with coated urea. Theseproducts are widely adopted in thecultivation of paddy rice and vegeta-bles.

t Hydrogen peroxide manufacturing plant (UBE-MC Hydrogen Peroxide Ltd.)

y Polyamide specialty products made from caprolactam

u Application example of Polyamide 6 (air intake manifold)

Chemicals & Plastics

Chemicals and plastics are a key component of UBE’s chemical business. This sector supports modern industry and the everyday comfort and convenience of consumers with a wide range of materials. These include caprolactam, one of the raw materials used in the production of polyamide, for which we rank among the top three manufacturers in the world; an array of industrial chemicals; engineering plastics such as polyamide resins; and commodity plastics such as ABS resins and polyethylene, and polybutadiene rubber.

o Thai Synthetic Rubbers Co., Ltd.The company produces and sells UBEPOLBR and VCR in Rayong, Thailand.

!0 TSRC-UBE (Nantong) Chemical Ind., Co., Ltd.

Plant operations started up in 2009 in Nantong, Jiangsu Province, China. Thiscompany produces and sells UBEPOL BR.

t The Ube Chemical Europe, S.A. Caprolactum Plant (Castellon, Spain)

y Ube Engineering Plastics, S.A.Located adjacent to the plant shown in tabove, this subsidiary produces Polyamide 6 resin.

u UBE Chemicals (Asia) Public Co., Ltd.Caprolactam is produced here in Rayong, Thailand, and supplied both domestically and to the neighboring countries of Asia.

i UBE Chemicals (Asia) Public Co., Ltd.Nylon 6 resin and compound is manufacturedand sold here in Rayong, Thailand.

tubes, air brake tubes, and industrialmachine tubes. This is also attractingattention as a substitute material fortraditional city gas pipes. In addition,polyamide elastomer, UBESTA XPA®,is being increasingly put to use as amaterial for professional sports shoesdue to its high resistance to flexuralfatigue and other superior properties.ABS resin, which is manufactured byUMG ABS, Ltd., a group company,has recorded a steady stream of suc-cesses in fields such as automobilesand office automation equipment.The newly developed AES resinmanifests outstanding weatherabilityand boasts a widening range of appli-cations such as automotive interiorsand exteriors and mechanical com-ponents for office automation equip-ment.In the field of commodity plastics,UBE Polyethylene is a low-density

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polyethylene that is available in awide range of grades. Applicationsextend from packaging materials,laminates, and containers to powercable insulation. HAO-LLDPEUMERIT® employs a metallocenecatalyst and features superior low-temperature sealing properties andprocessability. UBE was the first inJapan to commercialize this product,whose share of the market for high-grade films is steadily rising. Thesepolyethylene products are manufac-tured and supplied by Ube-MaruzenPolyethylene Co., Ltd., a group com-pany.Processed products using this poly-ethylene are also manufactured bythe UBE Group companies. UbeFilm, Ltd., best known for PolyWrap®, an additive-free film for stor-ing foods, manufactures a diversity ofproducts from various types of pack-aging film to air-cushion packing ma-terials. These products are earninggreat kudos from consumers.

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Specialty Chemicals & Products

The UBE Group is focusing its greatest strengths in the chemical business that holds a wealth of future prospects. Within the differentiated chemicals domain, the field of specialty chemicals and products is where our chemical technology-based excellence can be utilized to the fullest. By creating high-value-added, strikingly original chemical products such as materials with highly specialized or environmentally friendly features, this business responds to the expectations of the most sophisticated areas of society.

Specialty ChemicalsThe diverse applications for specialtyproducts, which draw on UBE’s ex-pertise in organic and polymer chem-icals and inorganic technology, in-clude electronic materials, batterymaterials, communication parts, sep-aration membranes, and ceramics.

■ PolyimidesUBE’s original super-heat-resistantpolyimide resins are widely used inelectronic and electrical equipment,as well as in the aerospace industry.A leading product, UPILEX®-S, apolyimide film, is used in the tapecarrier package (TCP), the substratefor integrated circuits (IC), becauseof its superior size stability, as well asin a two-layered copper-clad laminatewith copper plating by sputtering, em-ployed for the chip-on-film (COF)substrate of large liquid crystal dis-

y Ube Chemical Factory (Ube City, Yamaguchi)

This is UBE’s main chemical factory, where a variety of products ranging from highly advanced pharmaceuticals to basic chemicals are manufactured.

u Gifu Factory, Ube-Nitto Kasei Co., Ltd.This factory is where materials for optical communication cables and UPISEL®-N are manufactured.

i Ube Factory of Meiwa Plastics Industry, Ltd.

Manufactures phenol resins.

q UPISEL®-N, a double-sided copper-clad laminate of polyimide film UPILEX®-VT

w TAB (Tape automated bonding) tape using UPILEX®-S

e COF forming a high-resolution circuitr Lineup of super heat-resistant polyimide

resin productst Super-heat-resistant polyimide resin

application examples y UPILEX®-R, a polyimide film covering

the outside of domestic artificial satellites for protection against the harsh environment of space

u Lithium-ion secondary batteries application examples

play driver IC. UPISEL®-N, a copper-clad laminate based on UPILEX®-VT,which retains the features ofUPILEX® with the addition of thermaladhesion functions, is manufacturedand sold by Ube-Nitto Kasei Co.,Ltd., a group company. This productis meeting strong demand in elec-tronic applications such as digitalcameras and mobile phones. In so-phisticated down-stream areas thatutilize the features of polyimide film,commercialization of high-value-added products such as double-sidedcircuit boards for COF drawing a fine-pitch circuit is now underway.The products of polyimide are notlimited to film alone. Liquid productssuch as U-Varnish®, a polyimide pre-cursor, are utilized in printer applica-tions which demand high strengthand heat resistance, and UPICOAT®

is highly lauded as an insulating over-coat for electronic circuit boards. Awide diversity of other polyimideproducts is also available, includingpolyimide powder and compact, tomeet the application demands of ourcustomers.

■Battery MaterialsBattery materials show the most out-standing presence within our rangeof specialty products. These materi-als include electrolytes and separa-tors for lithium ion secondary batter-ies. The electrolyte Pure Lyte®, pro-duced from in-house dimethyl car-bonates (DMC), has continued todominate the market as “functionalelectrolyte” that responds to the indi-vidual needs of customers.Separators, known as U-Pore®, aretriple-layer micro-porous membranesmade of polyethylene and polypropy-lene. Sales are soaring due to highassessment from the users for itsperformance, including solvent-freeproduction that is environmentallyfriendly, high ion permeability due toextremely uniform pore shape, andhigh safety in the event of over-charging.

■ Semiconductor Related Materials and Electronic Materials

UBE also has a wide variety of prod-ucts used in the manufacturing ofsemiconductors. Its line of high-puritychemicals includes boron trichloride,metal organics (MO), nitric acid, sul-furic acid, aqueous ammonium, cate-chol, and hydroxylamine sulphate. Itsdry etching exhaust gas treatmentequipment also has a superb reputa-tion.Meiwa Plastics Industries, Ltd. bringsexcellent products to market, such asphenol resins for semiconductorsealants.Ube-Nitto Kasei Co., Ltd., is strong inoptical cable related materials suchas Rasen Compose® and Compose®

Tension Member, as well as compo-nents such as HIPRESICA®, a silicaparticle used in applications such asliquid crystal display spacers. o Ube Electronics (Wuxi) Co., Ltd.

Telecommunication devices are manufactured in Wuxi, China.

■ Telecommunication DevicesIn the field of telecommunication de-vices, the Group supplies dielectricduplexers and filters, which are es-sential for cellular phones and otherforms of mobile communications, aswell as positive temperature coeffi-cient elements applied in productssuch as heaters and protection cir-cuits. The products have won high re-gard for their precise response to de-mands for miniaturization and higherperformances. The production baseof the manufacturer, Ube Electronics

Ltd., has been established in Chinato serve this growing demand. Based on such achievements, nextgeneration devices that combine ouroriginal material and circuit designtechnologies such as LTCC andFBAR are under development formulti-band wireless communication.

q Laser diodes using MOw Phenol resin application examplese Material for optical communication

cables by Ube-Nitto Kasei Co. Ltd. r Microwave dielectric filterst Laminate filters for multi-band

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UBE GROUP PROFILE Group Vision Business Highlights Group Activities

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●w q Application example of silicon nitride powder

w Application example of silicon nitride powder (ceramic glow plug)

e Tyranno Fiber®

Broad applications include threads and textilesr Separation membrane modules for

a variety of applicationst Nitrogen generator for lead-free

soldering employing separation membranes

y Marine fragrance, Heliofresh®

q Plant producing MEKO w Antiallergy agent Talion® and

antihypertensive agent Calblock®

e Antiplatelet agent EffientTM

y UBE Chemical Europe S.A. PCD plantu The Ube Chemical Europe S.A.

1,6-hexanediol plant located in Castellon of the Valencia region in Spain.

r DMC plant (Ube City, Yamaguchi)t Pharmaceutical factories

(Ube City, Yamaguchi)

■CeramicsUBE’s silicon nitride powder, a ce-ramics material, is a global standard.As a multi-purpose powder that canmeet the demands of individualusers, its features are employed toserve an increasingly diverse rangeof applications from high qualitystructural materials to specialty mate-rials. Application examples includeprecision machinery parts, automo-tive parts such as glow plugs, aircraftparts, and semiconductor and ITparts.The Company’s silicon carbide ce-ramic fiber, Tyranno Fiber®, is utilizedin many areas from the aerospace in-dustry to general industrial applica-tions such as heat resisting filters,employing its excellent heat resist-ance as well as its feature for trans-mission and absorption of electro-magnetic waves. We have recentlybeen successful in developing theTSA grade that has ultimate heat re-sistance capable of withstanding upto 2000°C. Aircraft manufacturers allover the world are accelerating de-velopment of composites using thisfiber, for applications such as engineparts.

■ PharmaceuticalsPharmaceuticals are anticipated tobe a high growth business withinUBE’s chemical sector. In the field ofdrug discovery that has the goal ofcreating novel drugs, three propri-etary drugs have been conceivedthrough joint R&D efforts with phar-maceutical firms. Talion®, an antial-lergy agent, Calblock®, an antihyper-tensive agent, and EffientTM, an an-tiplatelet drug, are now being market-ed overseas.In addition, we have won the strongtrust of domestic and overseas phar-maceutical companies by providingthem with stable supplies of severaldozen varieties of active ingredientsand intermediates, including anti-in-

Fine ChemicalsIn the fine chemicals field, a wide va-riety of products are manufacturedfor use in fragrances, paints, coat-ings, resins, and electronic compo-nents, among others. We are the soledomestic supplier of many specialtychemicals such as catechol, 1,6-hexanediol, dodecandioic acid, andDMC (dimethyl carbonate). Theseproducts are used as feedstock toproduce goods that meet contempo-rary needs, such as environmentallyfriendly water-based paints, powdercoatings, synthetic leathers, and syn-thetic fragrances. One clear exampleis the “marine” fragrance Heliofresh®.Using catechol, this is the world’s firstcomplete chemical synthesis of a fra-grance that had only been producedfrom natural ingredients extractedfrom trees growing in tropical forests.Another fast growing product ismethylethylketoxime (MEKO), avail-able for wide applications centeringon anti-skinning agents for liquidpaints.

Demand for fine chemical products isglobal. In addition to our key plant,the Ube Chemical Factory, a groupcompany based in Spain, Ube Chem-ical Europe S.A., also produces 1,6-hexanediol, a raw material forpolyurethane and paint resin materi-als, and its derivatives, PCD (poly-carbonate diol) and 1,5-pentanediol.UBE is also the sole manufacturer inJapan of DMC, one of the proudest

achievements of C1 chemicals usingcarbon monoxide as raw material.New markets are currently being ex-plored for DMC such as methylationagents that are friendly to the envi-ronment and human health, and sol-vents that are low in toxicity and highin safety. Downstream areas are alsobeing aggressively developedthrough derivatives such as PCD, araw material for high-gradepolyurethane, oxetane compoundsfor low-toxic, high-performance ultra-violet and heat-hardening resins thatcan substitute for epoxy, and beta-ketoesters for pharmaceutical activeingredients and intermediates.

■Gas Separation MembranesSeparation membranes were devel-oped to make use of polyimide’s ex-cellent gas separation characteris-tics. Separation membranes incorpo-rating polyimide hollow fibers havelong been used for various applica-tions in the oil and gas industries,with one of its first applications beinghydrogen recovery. Slight adjust-ments to the chemical structure of thepolyimide allow performance to betailored to match the characteristicsof diverse gases, opening up new ap-plications. Membrane performance inindustrial applications such as theseparation of nitrogen (oxygen) andmoisture from air, separation of car-bon dioxide gas, and the removal ofwater from alcohol has earned cus-tomer trust and acceptance. We haverecently created new applications fornitrogen-separation membranes byapplying this technology in automo-bile tire filling and lead-free soldering.Demand is growing significantly, no-tably in explosion prevention applica-tions. More recently, separationmembranes have been attracting at-tention in water separation forbioethanol, a fuel widely anticipatedto become a popular alternative togasoline.

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* Talion® is a registered trademark of MitsubishiTanabe Pharma Corporation

* Calblock® is a registered trademark of DaiichiSankyo Co., Ltd.

* EffientTM is a trademark of Eli Lilly and Company

flammatory, antibacterial, and antihy-pertensive agents.Our pharmaceuticals are all manu-factured under strict production con-trol and quality assurance systems,which comply with the current GoodManufacturing Practices of the U.S.Food and Drug Administration andother regulations established by theauthorities of Japan, the UnitedStates, and Europe.

Pharmaceuticals

High growth is anticipated in the pharmaceuticals business, which is contributing to human well-being through the development of new, unique pharmaceuticals based on our proprietary drug discovery technology.

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Cement & Construction Materials

The UBE Group always keeps its pipeline full to meet diversifiedneeds for high-grade products in the civil engineering andconstruction industries. The Group’s rich lineup of building materials and cement has demonstrated superior performance and gained trust within industry circles.

r Ube Cement Factory (Ube City, Yamaguchi)

This flagship factory has a long history. In recent years, it has installed state-of-the-art facilities to achieve high production efficiency.

t Isa Cement Factory (Mine City, Yamaguchi)

The factory is adjacent to one of the largest limestone quarries in Japan and ships products to the seaside Ube facility through a private road.

y Kanda Cement Factory (Miyako-gun, Fukuoka)

The seaside factory facing the Sea of Suo is connected to Mitsubishi Materials’ Higashitani Quarry via a conveyer system.

u Ube Materials Co., Ltd. (Ube City, Yamaguchi)

Manufactures calcia and magnesia related products using limestone and seawater as the key raw materials.

Building MaterialsTo meet the diversifying needs of theconstruction industry, UBE is continu-ously developing new products suchas roofing, walling, and flooring mate-rials to fortify its position as a com-prehensive manufacturer of buildingmaterials.UBE makes use of its well-developedservice network integrating produc-tion and transit sites in the major re-gions, to reliably supply its self-level-ing materials, which hold the top mar-ket share for floor underlayment ma-terials. UBE’s extensive lineup ofself-leveling material products meetsa diverse range of industrial needs. Inaddition to Quick Ceramic Flow® andSL Flow®, the Company producesFinish Flow®, a fast-curing finishingproduct; Veranda Flow®, a slope-ad-justable leveling material; and UpperSurface Leveler, a product for level-ing the footings and foundations ofresidential housing. Also, UBE offersa wide selection of mortar products,such as the non-shrink grout mortarnamed U-Grout, and U-Mix® as a re-pair mortar.Taking advantage of its expertise inchemicals, UBE manufactures modi-fied asphalt materials including RASheet, Meltorchc® and Aquacut®.UBE distributes these products andprovides services through the

Meltorch Industry Association, an as-sociation comprising over 200 water-proofing contractors nationwide. Inaddition, Aquashutter®, a polymer ce-ment waterproofing paint that wasdeveloped by the comprehensivetechnology as a leading manufactur-er of cement, enjoys a high marketreputation. UBE Perlite also enjoysstable demand as a lightweight mate-rial with outstanding sound absorp-tion, fireproof performance and heatinsulating characteristics, and is used

for greenery work and housing con-struction boards.In addition, our group company, UbeBoard Co., Ltd. manufactures andsells UB Board, a ceramic exteriormaterial; Corrugated Slate n, a non-flammable construction material forplant warehouses; and NetworkFloor, a floor wiring system; as wellas materials such as Woodyceram®

EX/IN, a nonflammable ceramic artifi-cial wood material for interior and ex-terior fixtures, and Yasashii Kabe®, ahumidity controlling interior materialmade primarily of diatomite that alsoexcels in odor removal and absorp-tion of volatile organic compounds.

Cement & Ready-mixed ConcreteCement is fundamental to modernconstruction, and by extension to thesociety we live in. As today’s commu-nities grow increasingly aware of en-vironmental issues, excellent envi-ronmental performance is becomingone of the features expected of ce-ment.All of UBE’s three cement plants-twoin Yamaguchi Prefecture and one inFukuoka Prefecture-are fully certifiedunder the ISO 9000 quality controlstandard and the ISO 14001 environ-mental standard. The Company’smanufacturing philosophy states,“We clearly recognize our corporatesocial responsibility to improve theregional living environment and vigor-ously take up the tasks of environ-mental preservation, to build a com-munity that is pleasant to live in andsupportive of human development.”Each plant works hard to make useof various waste materials and em-ploy safe and stable waste recyclingtechnology, contributing to the cre-

ation of a recycling society. These ef-forts, along with the uncompromisingquality of our cement, underpin thegreat store of trust that UBE enjoys.The UBE Group has undertaken twojoint ventures with Mitsubishi Materi-als Corporation to provide excellencein sales, distribution, quality assur-ance and product development. UbeMitsubishi Cement Research Instituteand Ube-Mitsubishi Cement Corpora-tion are generating outstanding ac-complishments through the integra-tion of the two companies’ strengths.A rich lineup of products that answera diversity of user needs are steadilyprovided to our customers throughthe nationwide service network ofUbe-Mitsubishi Cement Corporation.In its overseas ventures, in order tomeet the increasingly strong demandfor high quality cement in China, UBEhas established Nantong Ube Con-crete Ltd. in the city of Nantong inChina’s JiangSu province to developits business in ready-mixed concrete.

i Nantong Ube Concrete Ltd. (China)Produces and sells ready-mixed concrete in China.

q Construction using ordinary Portland cement (UBE’s private road connecting the Ube facility and the Isa Factory)

w Construction using moderate-heat Portland cement (Tsubayama Dam in Wakayama)

e Construction using cement-based soil solidifier, USTABILIZER®

(Kansai International Airport)r Application example of the floor

underlayment material, Quick Ceramic Flow® (Kansai International Airport)

t Aquacut® was utilized at the Oita Stadium “Big Eye”

y Application example of Woodyceram® EX

q Yasashii Kabe®, a healthy and humidity controlling construction material

w High-Purity monodisperse silica particles HIPRESICA®

e Ceramic condenser using Ube Material Industries’ CS

Calcia & MagnesiaOther than limestone for cement,ready-mixed concrete, and steel pro-duction, and calcium carbonate forflue-gas desulphurization, Ube Mate-rial Industries, Ltd., a group compa-ny, supplies quick lime for steel pro-duction; hydrated lime for soil stabi-lization; Calbreed®, a highly reactivehydrated lime used for the removaltreatment of acid gas in waste incin-erators; and magnesia clinker, a re-fractory material.Furthermore, CS, an ultra-high puritysuperfine calcium carbonate, hasbeen in the limelight in recent yearsas material that can improve theproperties of multi-layered ceramiccapacitors. Fine materials such as avapor phase magnesium oxide forthe protective layer of plasma dis-plays and calcium additives for foodsare also growing significantly.

Specialty Inorganic MaterialsThe UBE Group handles a widerange of specialty inorganic materi-als. UBE is engaged in high purity sil-icon nitride and the superb heat-re-sistant TYRANNO Fiber; the R&DHeadquarters is working on TYRAN-NOHEX, an extremely tough, highlyheat-resistant ceramic, as well asphotocatalytic fibers that have excel-lent environment purification fea-tures; group companies Ube MaterialIndustries, Ltd. supplies high purityceramic powder and Ube-Nitto KaseiCo., Ltd. supplies spherical silica par-ticles.

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UBE GROUP PROFILE Group Vision Business Highlights Group Activities

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UBE GROUP PROFILE Group Vision Business Highlights Group Activities

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r Hybrid die-casting machine “UH series”t All-electric injection molding machine

“MDS-V series”y DIEPREST® productsu Cav-Change® productsi Group of large injection molding

machines in operation at an auto parts plant in China

q Vertical roller millw Cement kilne Tokyo Bay Aqua-Liner Ship deck machinery (Fukushima, Ltd.)t Electric furnace (Ube Steel)y Mobile crusher (Ube Techno Eng.)u Circuit board (T&U Electronics)

Machinery & Metal Products

The value of UBE brand products has been recognized globally due to their high reliability backed by the state-of-the art technologies.These products include die-casting machines, injection molding machines, and extrusion presses, which enjoy a high reputation both in Japan and abroad.

Molding MachinesProducts in the machinery businessare manufactured and sold by thegroup companies, lead by Ube Ma-chinery Corporation Ltd. In the corebusiness of plastic injection moldingmachines and metal molding ma-chines, such as die-casting machinesand extrusion presses, the companyhas, in recent years, been launchinga succession of high-performance,next-generation molding machines.In the realm of all-electric injectionmolding machines, which are nowthe mainstream in injection molding,Ube Machinery offers a line-up ofmachines with clamping forces from

Industrial Machinery and Bridge & Steel StructuresThere is also a substantial variety ofindustrial machinery other than mold-ing machines. Recent products thathave been well received include anair floating conveyor that transportsmaterials such as coal, grains, andwood chips without generating dust;a vertical roller mill with rotation fre-quency control, which can handle ul-tra-fine pulverization and a diversityof organic materials and their specialapplications; and a Euro-silo designedto store a range of bulk materials,such as sticky gypsum, with improvedstacking efficiency. UBE also boastsa wealth of component technologyand a wide variety of ceramic indus-try-related products such as kilns.In the bridge and steel structuresbusiness, evolving upon technologyused in construction of Japan’slargest steel truss bridge, the Kosan-

Ohashi Bridge, UBE’s list of accom-plishments in other large-scale bridgeconstruction projects, such as theTokyo Bay Aqua-line, is growing.In addition to providing machine serv-icing, Ube Techno Eng. Co., Ltd. alsomanufactures small crushers and en-vironment-related equipment.Differentiated technology is alsowielded for business developmentsby group companies such asFukushima, Ltd., engaging in ma-chinery for ships; Ube Steel Co., Ltd.,which handles castings and specialtybillets; and T&U Electronics Co., Ltd.,which deals in electric and electroniccircuit boards.

between 6,500KN to the world’slargest level of 30,000KN, constantlymaintaining its leading presence inthe field of large-sized machinery.Moreover, these machines are at-tracting high interest by incorporatingUBE’s original molding technologysuch as the DIEPREST® moldingprocess, which is capable of moldingplastics and skin inserts together withhigh precision, and the Cav-Change®

molding process, which makes high-performance and high-quality com-posite molding of different materialspossible. For die-casting machines in the metalmolding machine business, the com-pany has developed and launched anew series of die-casting machineswith a toggle system and hybrid die-casting machines, which have signifi-cantly improved injection perform-ance and energy-saving perform-ance. An original vertical machine(squeeze casting machine) capable

!1 UBE Machinery Inc. (Ann Arbor, Michigan, U.S.A.) This is an assembly plant for molding machines. It serves as the base for sales and service activities in North America.

!2 Ube Machinery (Shanghai) Limited (Shanghai, China)This is the base for sales and service activities for molding machines and industrial machinery in China, and is an assembly plant for die-casting machines.

of producing a quality high enough tocompete with forged products hasalso won kudos, particularly amongautomakers. UBE also holds theworld’s top share of the market forextrusion presses. The NPC-SS Ver.III series, which excels in space-sav-ing and energy-saving performances,was recently launched and enjoys ahigh reputation. Ube Machinery Corporation, Ltd. in-tegrates operations with Ube TechnoEng. Co., Ltd., the company handlingservice and maintenance, Ube Ma-chinery Inc. in North America, andUbe Machinery (Shanghai), Limitedin China, with the four companiesworking as one to meet rising over-seas demand.Global activities are also underwaywith the establishment of local sub-sidiaries in Bangkok, Thailand, andDelhi, India. These companies serveas centers for sales and services inthe emerging markets of Asia.

w Die-casting machine “UB-iV series”

e Direct single action extrusion press for aluminum

“NPC-SS Ver. III series”

q All-electric injection molding machine “UBEMAX-UF series”

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i Head offices and factories of Ube Machinery Corporation, Ltd. and Ube Techno Eng. Co., Ltd.(Ube City, Yamaguchi)

o Head office and factory of Ube Steel Co., Ltd.(Ube City, Yamaguchi)

!0 Head office and factory of Fukushima, Ltd.(Fukushima City, Fukushima)

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q Waste treatment facility for fuel use (Ube Cement Factory)

w High-chlorine bypass facility (Kanda Cement Factory)

e Yamaguchi Eco-tech plant (Shunan City, Yamaguchi)

r Biomass fuel facility (IPP power plant)t Chips made from crushed

construction waste

Energy & Environment

Along with shouldering the energy infrastructure of the UBE Group through the coal business that ensures a stable supply of overseas coal and through electric power supply from our own power plant, the Company is moving ahead with new energy strategies in wholesale power and other businesses. UBE’s environment business is helping to reduce environmentalimpact by promoting revolutionary waste recycling systems and adopting reusable biomass energy.

CoalUBE was the first in Japan to importsteaming coal. It imports and sellsquality coal from around the world, in-cluding Australia, Indonesia, and Chi-na.The Company handles around 7 mil-lion metric tons of coal annually, in-cluding that for sale, storage, anduse by the group companies. TheOkinoyama Coal Center in Ube Cityhas Japan’s largest-capacity coalstorage yard and handles most of thiscoal, transporting it to users aroundthe nation. Its services include blend-ing and removing foreign matter. TheCenter is upgrading its port and stor-age facilities to accommodate largervessels and to streamline coal ac-ceptance.

PowerUBE maintains a 145,000-kW powerplant in Ube City that has ensuredstable supplies of electricity to theCompany and group operations formany years. The Company drew onthe technologies and expertise accu-mulated in these operations to con-struct a sophisticated 216,000-kWpower plant in Ube City to commencethe Independent Power Producer(IPP) business. The new plant begansupplying power to Chugoku ElectricPower Co., Inc., from March 2004 un-der a 15-year contract.The operations of the two plants areintegrated. They receive coal usedfor fuel by conveyor from the Oki-noyama Coal Center. UBE business-es pipe industrial water, ammonia,and other supplies to the plants. Bothplants naturally take all possiblesteps to prevent pollution, includingmethods using flue gas desulfuriza-

EnvironmentDrawing on the technologies and ex-perience we have gained in con-structing a variety of plants in Japanand around the world, UBE is activelypromoting operations to protect theglobal environment. UBE’s technolo-gy for utilization of wastes has beenbroadly supported not only because itreduces manufacturing costs, butalso for its contributions to reductionof carbon dioxide emissions, effectiveutilization of resources, prolongingthe life of landfills and other environ-mental merits. It has led to the cre-

ation of a significant number of newtechnologies and businesses.Among these, the utilization of a di-versity of wastes by the three cementfactories of Ube, Isa and Kanda iswinning kudos for recycling. Becausecement kilns burn raw ingredients athigh temperatures of 1,450°C, theycan detoxify large quantities of mate-rials including those that cannot behandled by regular furnaces. Takingadvantage of this feature, a wide di-versity of waste materials such as flyash, waste construction soil, combus-tion ash, and waste plastics are nowactively received from within and out-side the UBE Group to be used aspart of the raw materials for cementor as fuel for the kiln. This is con-tributing to the establishment of a re-cycling-based society. Moreover, ourproprietary dechlorination technologyallows us to accept wastes with ahigh chlorine content, which hadbeen difficult to treat through conven-tional processes. Notably, since theconstruction of a high-chlorine by-pass facility in the Kanda CementFactory in fiscal 2005, which boaststhe largest size and highest perform-ance of any such facility in Japan, it

has become possible for us to reusewastes with even higher chlorinecontent such as urban refuse inciner-ation ash generated from incineratorsoperated by the local governments.In fiscal 2008, our factories began ac-cepting ash that the local authoritieshad, until then, been burying in land-fills. This effort is in the limelight forits contributions to the purging, recy-cling, and extension of the life oflandfills.Using dechlorination and dioxin re-moval technology, Yamaguchi Eco-tech Corporation, a companylaunched jointly with Tokuyama Cor-poration, is putting the business ofpre-treatment and recycling of urbanwaste incinerator ash on track.In other fields related to recycling,UBE has successfully established atechnology in which wood biomassfrom construction wastes and othersources are used to fuel power gen-erator boilers. This technology has

q Okinoyama Coal Center (Ube City, Yamaguchi)

w Hunter Valley Coal Mine, Australiae Large coal tanker berthed at

Okinoyama Coal Center r 145,000-kW power station

(Ube City, Yamaguchi)t 216,000-kW IPP power plant to

generate electricity for sale (Ube City, Yamaguchi)

tion and denitration facilities. Byprod-ucts such as fly ash and desulfurizedgypsum are shipped to UBE’s ce-ment factories where they are utilizedas raw materials for cement in our ef-forts to reduce environment impact.

been introduced to the in-house pow-er facility at the Isa Cement Factoryand the IPP power plant. As a car-bon-neutral fuel, the use of wood bio-mass contributes to the reduction ofcarbon dioxide emissions.

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●qq Organic Chemical Research Laboratory,Process Technology Research Laboratory, Pharmaceuticals Research Laboratory, Inorganic Specialty Products Research Laboratory(Ube City, Yamaguchi)

w Organic Specialty Materials Research Laboratory (Ichihara City, Chiba)

e Automotive Materials Development Center (Ube City, Yamaguchi)

r Measurement of chemical concentrations using liquid chromatography

t Comparison of clarity between the polyimide elastomer, UBESTA® XPA and Polyamide 12

y TDye-sensitized solar cell

Research & Development

UBE puts its major R&D resources into creating highervalue-added, unique products based on differentiated chemistrysuch as pharmaceuticals and specialty products, which areat the leading edge of growing business in the 21st century.UBE is also actively seeking and developingpromising new technologies, such as applied nanotechnology,which will lead to new businesses in the future.

Creation of New Pharmaceuticals through Advanced TechnologyEntrusted with the two missions ofexpanding and developing existingbusinesses and creating new busi-nesses, UBE advances its researchand development in line with theCompany’s management strategy todrive forward its operations centeringon the differentiated chemicals busi-ness.High anticipations are especially heldfor the field of pharmaceuticals.Three proprietary drugs have beenconceived through joint R&D effortswith pharmaceutical firms: Talion®,an antiallergy agent; Calblock®, anantihypertensive agent; and EffientTM,an antiplatelet drug. UBE has alsoachieved the deep trust of pharma-ceutical companies both in Japan

Research and Development on Specialty Products Many of the operations in specialtyproducts are positioned as strategicgrowth businesses. Therefore thefield of specialty products is an ex-tremely important area for researchand development. The targeted ar-eas for development include nextgeneration base materials for elec-tronic parts and circuit boards in thefield of electronics and IT, environ-mentally friendly bio-based sub-stances and solvent-free coating ma-terials with low environmental load inthe field of the environment, and highperformance polyamide elastomers.UBE is actively conducting researchin these areas, drawing from the

many years of experience in molecu-lar structure control and nanotechnol-ogy to respond quickly to the diversi-fied needs of the rapidly changingmarket.

For a Sustainable SocietyResearch and development is ad-vanced in areas centering on renew-able energies, which will secure en-ergy sources and ensure environ-mental preservation in our goal tomake sustainable society a reality.These include the development oftechnology for the creation of solarcells, fuel cells, and other forms ofenergy; energy storage such as pow-er storage devices for leveling theoutput of renewable energies; andenergy saving devices typified byLED systems. In the solar cell field,development is progressing in com-ponents for dye-sensitized solarcells-highly anticipated to be the nextgeneration solar cell-with special fo-cus on achieving a balance of highefficiency and high durability of dyes,the key material. In the realm of pow-er storage devices, UBE’s strongtechnology in polymer structure con-trol is fully utilized in the developmentof materials.

Photocatalytic Fibers for Water PurificationExpectations are held on photocatal-ysis as an effective technology toprotect the global environment.UBE’s photocatalytic fiber, createdthrough our original concept to usethis function in fibers, led to the cre-ation of the innovative water purifica-tion system, Aquasolution®. As a pu-rification system that uses photocat-alytic fibers without any chemical agents, market developments are accelerating with an increasingly broad range of applications from elimination of Legionella in bath water and precision cleansing of electronic parts, to removal of odors from drinking water. UBE has future plans to open up a large market by developing this into an environmental

purification system that would includeair purification.developing this into anenvironmental purification systemthat would include air purification.

Practical Use of Ultra-high Heat Resistance MaterialsUBE is steadily advancing toward ful-filling its goal of putting structural ce-ramics into practical use, which aremuch anticipated as key materials forultra-high heat resistant applications.TYRANNO Fiber®, an ultra-high heat-resistant ceramic, is widely used incomposite materials for aerospaceapplications and is now selling brisklyas a successful specialty product.(See Functional Materials - Ceram-ics) UBE is also leveraging the out-standing ultra-high heat resistanceproperties of TYRANNOHEX®, a newapplication of TYRANNO Fiber, andMGC (Melt Growth Composite),which combines the advantages ofmetals and ceramics, with the aim toextend applications to include turbineblades for aircraft engine and high-ef-ficiency gas turbines for power gen-eration.

Artificial Vascular Graft Enjoys High ReputationUBE regards commitment to nan-otechnology, which is attracting at-tention as a key technology in the21st century, to be one of its most im-portant research areas. The technol-ogy, which makes it possible to con-trol material structure on an atomic ormolecular length scale and produceunique properties, will not only allowUBE to create totally new materialsbut also allow it to revolutionize theperformance and manufacturingmethods of existing materials.UBE has already developed productsthat show signif icant featuresachieved by structure controlled on ananometer scale, such as NCHPolyamide (a polymer and montmoril-lonite (clay) composite material), gasseparation membranes, and MGC(see Ultra-High Heat Resistance Ma-terials). In order to develop more in-novative nano-materials, UBE is alsopromoting an integrated researchand development activity that re-moves the barriers separating fieldssuch as organic synthesis, inorganicmaterials, polymers, and polymeriza-tion catalysts.UBE’s advanced basic materials inthe pipeline include specialty mem-branes that help enhance the per-formance of distributed powersources; highly active catalysts thatpromise production efficiency andlow environmental impacts for indus-trial products; and specialty materialswith ultra-thin layered structures

q Aquasolution®, a water purification system using photocatalytic fibers

w Tyrannohex, an ultra heat-resistant ceramic with high tenacity

e MGC under melting and casting processr Synthesis experiment of a sample in

the draft chambert XPS (X-ray photoelectron spectroscopy)

equipmenty Analytical test at UBE Scientific Analysis

Laboratory, Inc.

and abroad for outsourced drug man-ufacture. Moreover, steady progressis seen in clinical trials on a drug totreat glaucoma.

formed by the self-assembly natureof molecules. These materials areexpected to be applied for practicaluse in the near future, creating totallynew businesses and products.Needless to say, this kind of researchrequires work on nano-length scalemeasurement and structural analysis.UBE Scientific Analysis Laboratory,Inc., a group company, steadily sup-ports such leading-edge researchand development using the latest,most sophisticated equipment, suchas electron microscopes and scan-ning probe microscopes, and throughits highly dedicated professional stafffor analysis and testing.

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Advancing the Spirit of “Living and Prospering Together” to Become “Global Coexistence”

Since its foundation, the UBE Group has been committed to its corporate philosophy of “living and prospering together.” While considering business development and community prosperity to be coaxial, the Group has strived for “harmonious coexistence” with all stakeholders.Now, this philosophy has been developed to go beyond the community to encompass the world, namely, to commit to “global coexistence” through business practices that aim for sustainable development on a global scale.

Deepening CSR ActivitiesSpurred by the misconduct of largeglobal enterprises, which came tolight upon entering the 21st century,society has come to strongly demandthat companies practice corporatesocial responsibility (CSR). In recentyears, problems concerning theeconomy, environment, and societyare becoming globalized, and the so-cial responsibilities that corporationsmust bear are increasing in impor-tance.The UBE Group, aiming for “co-exis-tence” with all our stakeholders,made up of shareholders, investors,customers, business partners, em-ployees, and the local community, ispursuing deeper CSR activities. Mea-sures to curb global warming andother activities to protect the environ-ment are particularly important chal-lenges for management to address.To this end, initiatives are advancedfor sustainable development on aglobal scale through collaboration be-tween our business centers in theworld such as Thailand and Spain.It is within such a situation that theUBE Group is advancing its spirit of“living and prospering together withthe community” to become one of“global coexistence.” Along with pur-suing sustainable development on aglobal scale, the companies of theUBE Group will work as one to makebroad contributions to society so thatwe can gain the even greater trust ofall our stakeholders.

Initiatives for Preservation of the EnvironmentThe manufacturing industry holds therole of supporting people’s lives byproviding materials, products, andtechnology. Meanwhile, however,manufacturing requires a great dealof fuel, and diverse sources of energyare consumed during the variousprocesses of production. As a result,society demands that manufacturersreduce the emissions of greenhousegases*1 such as carbon dioxide(CO2) and take measures to preventthe risk of environmental pollutionfrom chemical substances.As a member of the manufacturingindustry, the UBE Group feels strong-ly about environmental preservationand is focusing its energies on thedevelopment of innovative products

■Measures for WastesThe UBE Group is promoting the ef-fective reuse of wastes generated ineach field of business. Moreover, inthe cement and construction materi-als business, wastes are activelyused as fuel sources in cement facto-ries, accelerating recycling efforts.Specifically, approximately 3.4 millionmetric tons of old tires, scrap plastic,coal ash, sewage sludge, construc-tion soil, and other waste materialsand by-products are received annual-ly and are reused to augment fuelsources. This not only helps con-serve natural resources, but second-ary waste is also not generated sincethe cinder is also used as a raw ma-terial for cement. In this way, cementfactories contribute greatly to the es-tablishment of a resource recyclingsociety.

one of which is the holding of the UbeFestival. Additionally, to commemo-rate the 110th anniversary of thecompany’s foundation, in 2007 thecomprehensive information center,UBE- i -Plaza, was opened on thefirst floor of the Ube Head Office.Through product displays and de-tailed explanation using touch panelsystems, it provides information suchas introducing the UBE Group’s his-tory, businesses, and CSR activities.Overseas, a local activity called “Bet-ter Quality of Life” is being promotedin Thailand, providing support to theThai Ministry of Health’s mosquitoextermination program and mobilehealth care services, as well as thenarcotics eradication program. InSpain, UBE is making contributionsto have sports activities becomedeeply rooted in the community.These include the provision of sup-port to the sports teams and clubs ofCastellon as well as sports eventssuch as the 10-kilometer marathon.

■Relations with the Local Communities

Through the continuous implementa-tion of unique social contribution ac-tivities, the UBE Group strives to pro-mote communication with the localcommunities where its businessesare located both within Japan andabroad. In Japan, the Ube AcademyPromotion Foundation has been as-sisting young researchers in the fieldof medicine and other researchers forover 50 years; the UBE Group spon-sors charity concerts with perform-ances by the Japan Philharmonic Or-chestra; and the Watanabe MemorialCulture Association plays a centralrole in donating books to the Ube Mu-nicipal Library. Along with providingsupport for various lectures, musicalperformances, and other cultural andartistic activities, UBE also partici-pates actively in community events,

■Relations with EmployeesThe UBE Group employs a broadspectrum of personnel, and makesefforts to foster its employees in a va-riety of ways, such as bolsteringtraining systems so that each andevery employee can fully demon-strate his or her abilities. UBE is alsostriving to ensure a work-life balanceby introducing systems such as aflexible vacation and working systemso that the workplace will be one thatis comfortable for its employees. Ad-ditionally, from the perspective of oc-cupational safety and health, as wellas security and disaster prevention,we strive to ensure the safety of ouremployees and the safe operationsof the offices and factories.

q Calligraphy by Mr. Sukesaku Watanabew Thailand CDM Project Teame Cement factory kiln using various wastesr Cyclohexane recovery facilityt Separation facility for butadiene waste

gas combustiony Training sessionu Comprehensive disaster

management drilli UBE Group Charity Concerto The UBE Group Comprehensive

Information Center “UBE- i -Plaza”

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The Origin of CSR Activities“Living and prospering together.” Thiswas the corporate philosophy advo-cated by our first president, Mr. Suke-saku Watanabe, who dedicated hislife to the development of the compa-ny and the community since the com-pany’s foundation in 1897. This phi-losophy is the origin of the UBEGroup’s CSR activities, and is a lega-cy that continues to live on today,over a century since the company’sestablishment.Even before the concept of “corpo-rate social responsibility” had spreadthrough society, UBE’s businesspractices have aimed to enrich peo-ple’s lives. Along with expandingbusiness by consistently engaging inmanufacturing that fully utilizes inno-vative technologies, the Companyhas answered the requests and ex-pectations of the community by alsofocusing on the development of so-cial infrastructure and activities con-tributing to society.

Coexistence with StakeholdersThe UBE Group aims for coexistencewith all its stakeholders, and is work-ing to build good relations with stock-holders, investors, customers, busi-ness partners, employees, and thepeople of the community where ouroffices and factories are located.

■Relations with Stockholders and Investors

Viewing smooth communications be-tween UBE and its stockholders andinvestors to be vital, the Companyworks proactively in investor relationsactivities and to provide “timely, ap-propriate, and fair” information.

■Relations with Customers To ensure the provision of high quali-ty and safe products in all regions ofthe world, production operations arebased on the standards of the ISOquality management system. Addi-tionally, amid heightening awarenessof the environment, there is a grow-ing tendency for customers to pur-chase products that are good for theenvironment. To meet such de-mands, UBE is promoting the pro-curement of raw materials and thedevelopment of products and tech-nology that do not put a load on theenvironment, and is providing a broadproduct line-up to boost customersatisfaction to even higher levels.

■Relations with Business Partners

By establishing fair and equal rela-tions with business partners and hav-ing both parties recognize each otheras good partners, UBE aims for mu-tual sustainable development.

and technology that are friendly tothe planet. The concept of responsi-ble care*2 is incorporated in all busi-ness fields and we are engaged inpolicies that place priority on matterssuch as the reduction of greenhousegas emissions, measures for waste,and reduction of chemical substanceemissions.*1 Greenhouse gases: Greenhouse gases are gases such as carbon dioxide(CO2) and methane (CH4) in the atmosphere thatcause heat from the sun to be kept in the atmos-phere, eventually making the surface of the Earthwarmer.

*2 Responsible care: This is a voluntary initiative to secure preservationof the environment, safety, and health throughoutthe whole life cycle of chemical substances fromdevelopment to manufacture, distribution, use, endof consumption and disposal, and to constantlyseek improvement.

■Reduction of Greenhouse GasesIn order to reduce greenhouse gasemissions, the UBE Group is en-gaged in shifting sources of fuel toimprove energy efficiency and is pro-moting the use of wood biomass. Asa result of such efforts, compared tothe target set forth by the Kyoto Pro-tocol for Japan to reduce greenhousegas emissions from 2008 to 2012 by6 percent from 1990 levels, the UBEGroup as a whole, which had raisedthe aim of reducing CO2 emissionsby 12 percent, was able to achievethis target ahead of schedule in fiscal2008.As a new initiative, we are promotinga CDM* project in collaboration withMitsubishi Corporation at Thai Capro-lactam Public Company Ltd. to en-gage in the “reduction of greenhousegas emissions through catalyst de-composition,” a first for Thailand.UBE wil l continue efforts to cutgreenhouse gas emissions and con-tribute to preservation of the globalenvironment.* CDM (Clean Development Mechanism): This is one of the mechanisms defined by the Ky-oto Protocol to reduce greenhouse gas emissions,which was agreed to in 1997 to curb global warm-ing. In this system, a developed nation works to re-duce emissions of greenhouse gases in developingnations, and the amount reduced through such ef-forts can be credited to the greenhouse gas emis-sion reduction target of the developed nation.

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■Reducing Emission of Chemical Substances

As one facet of reducing the emissionof chemical substances in order toprotect the environment, the UBEGroup is promoting the reduction ofchemical substances designated inthe Pollutant Release and TransferRegister (PRTR). In this system, theamount of chemical substances re-leased into the environment and theamount of wastes transferred are cal-culated annually and the data is reg-istered with the relevant authorities.Based on the data, the UBE Groupdraws up plans to reduce emissionsof chemical substances and strives toreduce environmental risks throughthe establishment of recovery facili-ties and separation facilities for self-designated chemical substances.

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