an overview of the showa denko group · 2017-09-05 · 8 show enko eport 2017 an overview of the...

8 SHOWA DENKO REPORT 2017

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

Institute for Integrated Product Development

B

Head O�ce

Nagoya Branch

Osaka Branch

Fukuoka Branch

Kawasaki O�ce

Institute for Advanced and Core Technology

A

Higashinagahara Plant

Kitakata Plant

Isesaki Plant

Oyama Plant

Oyama Plant (Nasu)

Chichibu Plant

Kawasaki Plant

Yokohama Plant

Omachi Plant

Shiojiri Plant

Hikone Plant

Sakai Plant

Tatsuno Plant

Tokuyama Plant

Chiba Plant

B

For information on main Group companies in Japan, please go to the P17

　　

1 A

EuropeSHOTIC Europa Industria de Aluminio Lda.

Showa Denko Europe GmbH

North AmericaShowa Denko Carbon, Inc.

Showa Aluminum Corporation of America

Showa Denko America, Inc.

East AsiaShanghai 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 AsiaShowa 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.

Europe

East Asia

Southeast Asia

North America

Sites in Japan Overseas Sites

Business Sites

Oita Complex

Company name

Head office location

Number of consolidated subsidiaries

Total number of employee

Consolidated business results

Showa Denko K.K.

13-9, Shiba Daimon 1-chome, Minato-ku, Tokyo 105-8518, Japan

48

10,146

Sales 671billion yen

Operating income 42.1billion yen

Net income attribute to owners of the parent 123billion yen

■ Sales

0

200,000

400,000

600,000

800,000

1000,000

2012 2013 2014 2015 2016

847,803775,732

671,159

872,785

739,675

million yen

■ Operating income

2012 2013 2014 2015 2016

25,953

33,508

42,053

20,551

28,108

0

10,000

20,000

30,000

40,000

50,000million yen

■ Net income attribute to owners of the parent

2012 2013 2014 2015 2016

9,368 9,065

921

12,305

2,929

0

3,000

6,000

9,000

12,000

15,000million yen

9SHOWA DENKO REPORT 2017

About Show

a Denko

Highlights of C

SR Activities

Financial Highlights

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

Institute for Integrated Product Development

B

Head O�ce

Nagoya Branch

Osaka Branch

Fukuoka Branch

Kawasaki O�ce

Institute for Advanced and Core Technology

A

Higashinagahara Plant

Kitakata Plant

Isesaki Plant

Oyama Plant

Oyama Plant (Nasu)

Chichibu Plant

Kawasaki Plant

Yokohama Plant

Omachi Plant

Shiojiri Plant

Hikone Plant

Sakai Plant

Tatsuno Plant

Tokuyama Plant

Chiba Plant

B

For information on main Group companies in Japan, please go to the P17

　　

1 A

EuropeSHOTIC Europa Industria de Aluminio Lda.

Showa Denko Europe GmbH

North AmericaShowa Denko Carbon, Inc.

Showa Aluminum Corporation of America

Showa Denko America, Inc.

East AsiaShanghai 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 AsiaShowa 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.

Europe

East Asia

Southeast Asia

North America

Sites in Japan Overseas Sites

Business Sites

Oita Complex

■ Frequency rate of lost-time injuries

(Major Subsidiaries as of March 31,2017)

0.0

0.1

0.2

0.3

0.4

0.5

2012 2013 2014 2015 2016

0

0.14

0.43

0.25

0.15

0.150.13

0.22

0.24

0.12

Showa DenkoShowa Denko Group

■ Discharged amounts of greenhouse gases

0

500

1,000

1,500

2,000

2,500

3,000

2012 2013 2014 2015 2016

2,504

kt-CO2

2,673 2,675 2,687 2,687

■ Number of employees

0

2,000

4,000

6,000

8,000

10,000

12,000

2012 2013 2014 2015 2016

5,802

4,088

9,89010,234

4,329

5,905

10,577

4,645

5,932

10,561

4,688　

5,873

10,146

4,071

6,075

JapanOverseas


History of the Group

★ Showa Denko K.K. ◆ Showa Aluminum Corporation ● Showa Highpolymer Co., Ltd.

1908With the business on track under the spirit of “tenacity

and indomitability”,

established the foundation of the Showa Denko

Group.

Deepened and further developed business,

taking advantage of postwar reconstruction

and rapid growth

1945

Switched to energy-saving products

after overcomingoil crises

1986

Expanded into the energy-saving and high

value-adding business in full-scale,

through the fusion of organic/inorganic and

aluminum technologies.

2001

Engaged inShaping Ideas in pursuit of

evolving chemical company with

individualized products

through the fusion of organic / inorganic and aluminum technologies

2011

Technology and products CSR Event

◆1981Started aluminum can collection activities at certain plants

★1931Started manufacturing ammonium sulfate using domestic technology (Showa Fertilizers K.K.)

★1934Industrialized domestically produced aluminum (Nihon Iodine K.K.)

★1908Established Sobo Marine Products K.K.

★1926Established Nihon Iodine K.K.

●1937Established Riken Kohaku Kogyo K.K.

★1945Resumed production of ammonium sulfate fertilizer

●1951Achieved domestic production of synthetic resin emulsion

●1953Achieved domestic production of unsaturated polyester resin

●1965Achieved domestic production of vinyl ester resin

◆1969Showa Aluminum Can Corporation produced the �rst aluminum can in Japan

◆1981Developed the “Cojunal Method”, a high-purity aluminum re�ning method

◆1921Established Takada Aluminum Equipment Manufacturing K.K.

★1928Established Showa Fertilizers K.K.

★1939Established Showa Denko K.K.

◆1986Started manufacture and sale of aluminum cylinders

◆1990Started company-wide aluminum can recycling activities

★1995Formulated “Responsible Care Action Guidelines”

★1997Published Responsible Care Report

★1998Established “Our Code of Conduct”

★1986Acquired a graphite electrode business in the United States, and established Showa Denko Carbon, Inc.

★1988Expanded into the hard disk business

★2012Established “Our Code of Conduct and Its Practical Guide”

★2013Our 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 2013

★2014Resigned the amended Responsible Care Charter

★2014Received the Special Incentive Award of the “Ikumen Company Award 2014” sponsored by the Ministry of Health, Labour and Welfare

★2016Received the “Platinum Kurumin”

★◆2001Merged Showa Aluminum Corporation

★2009

Established Showa Denko HD Yamagata K.K

★●2010Merged Showa Highpolymer Co., Ltd.

★2016Deciding to acquire SGL GE's graphite electrode business

★2017Established Advanced Battery Materials Division

★2003Started the business to recycl used plastic as material for ammonia at Kawasaki Plant

★2005Started mass production of perpendicular magnetic recording hard disks �rst in the world

★2009Started production of cooling devices for power control units

★◆2001With the merger with Showa Aluminum Corporation as the trigger, expanded aluminum can recycling activities to Showa Denko’s plants, o�ces and group companies

★2005Issued a CSR Report

★2005Signed the “RC Charter”

★2011Received the 43rd Ichimura Industrial Award for the “development of cooling devices for power control units”

★2013Our LED lighting equipment for plant growth received the “Nikkei Business Daily Merit Award” of the 2012 Nikkei Superior Products & Services Award

★2016Receives “2016 Top 100 Global Innovators” Award, 2 Years in a Row

★1969Oita Petrochemical Complex started commercial operation

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.


About Show

a Denko

Highlights of C

SR Activities


Product Technology Purchase or intermediate

電気分解

Carbide

Ferroalloys

Graphite

Ceramics

Nitrolime

Graphite electrodes

Abrasive grains Refractory materials Extreme pressure Technologies for making fine powder

VGCFTM(Carbon nanotube)

Magnet alloys

Abrasives for semiconductorsSuper hard materials

Rare earth metal

Titanium

Acetic acids

BMC

LED

Hydrogen

Fertilizers

Chlorine

Salt electrolysis

Alumina Gallium Epitaxial growth

Petrochemical

Sputtering

Chemical vapor deposition

Heat exchangersAluminum cans

Amino acid

Chemical alumina

Aluminum hydroxide

Aluminum cylinders

SHOTICTM

Allylic esters

Hard disksCaustic soda

Vitamin derivatives

Phenol resin

Gases for medical use

Ammonia

Polyolefin

Titanium oxide

ShodexTM

Highpolymer

Catalysts

Acrylonitrile

Melting and castingAluminum

Casting and forging

Rolling

Extrusion

Electrochemical

ElectrolysisElectrical Furnaces

SCMGTM

(Material for negative electrodesin lithium ion cells)

Waterelectrolysis

High-pressuretechnology

Aluminum polymersolid condenser

Biodegradable plastic

Agrochemicalintermediates

Agriculturalchemicals

Organicsynthesis

Specialty gases forsemiconductors

Aluminum foilsfor capacitors

Fused saltelectrolysis

Showa Denko Group's Technological Lineage


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.

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.

Ethylene

We are promoting the sales of the highly transparent and heat-

resistant film SHORAYALTM as a glass substitute to be used in

displays for mobile devices and other equipment.

Demand for NPAC, which is used as a solvent for special

gravure printing ink, has been increasing as an environment-

friendly substitute for the currently popular toluene.

n-Propyl acetate (NPAC)

QUALEARTM 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.

QUALEARTMSHORAYALTM

2016 2015 Increase/decrease

Increase/ decrease ratio(%)

Sales 1,858 2,313 △455 △19.7

Operating income 207 105 101 96.2

Petrochemicals Segment (Billions of yen)

Introduction of Businesses of the Group

Holding a dialogue meeting with local residents

In February 2016, Showa Denko’s Oita Complex took part in a dialogue meeting with local residents on Responsible Care. The meeting, the 10th of its kind, was organized in partnership with the Japan Chemical Industry Association and 10 companies located in the Oita coastal industrial zone.

About 200 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.

Petrochemicals

26%


About Show

a Denko

Highlights of C

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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 fluorine-containing gases.

Showa Denko manufactures and sells vitamin derivatives (ascorbic

acid PM, ApprecierTM, and TPNaTM), a slimming agent (Hi-Carnitine), and

hair care products (DL-Cysteine and SPIERATM).

RigolacTM, 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.

Unsaturated polyester resin

Electronic specialty gases

Cosmetic raw materials

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.

Chemicals

19%



Sales 1,345 1,423 △78 △5.5


Chemicals Segment (Billions of yen)

Carbon dioxide and dry ice

Chemicals 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, high-performance chemicals, and elastomers, to electronic specialty gases and chemicals for the semiconductor industry, resins for reinforced plastics, HPLC columns and raw materials for cosmetics.

Enhancing the supply system in China for the thermosetting bulk molding compound business

In January 2017, 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.


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.

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.

LED

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

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 decreased expensive

heavy rare earth content.

For the lithium-ion battery market, we offer a variety

of items, including SCMGTM long-life anode material,

VGCFTM unique anode and cathode additive featuring

high stability and quality, and SPALFTM aluminum laminated

film produced and marketed .

Electronics

14%

Rare earths

Lithium-ion battery materials

In 2017, 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.



Sales 1,033 1,315 △282 △21.4

Operating income 139 175 △36 △20.4

Electronics Segment (Billions of yen)

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 2020+,” 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 2016, Showa Denko started to outsource a part of its SDXTM carbon-coated aluminum foil in China. Subsequently, in June and August, we decided to enhance the production capacity for our SCMGTM carbon-based anode material and our VGCFTM conduction support agent for cathodes and anodes, respectively.



About Show

a Denko

Highlights of C

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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.

With a hardness coming second only to diamond,

CBN is used for tools to cut automotive and other

components.

Alumina is widely used among various industries, for

purposes such as ceramics, filers for plastics, refractories,

and abrasives.

CBN (cubic boron nitride)

SUPER-TITANIATM high-purity titanium oxide is used as

one of the main materials in ceramic capacitors installed

in familiar electronic and electrical devices.

Alumina

Ceramics for capacitors



Sales 509 635 △126 △19.9

Operating income △58 △12 △45 ー

Inorganics Segment (Billions of yen)

Graphite electrodes

Inorganics

7%

Inorganics 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.

Deciding to acquire SGL GE’s graphite electrode business

In October 2016, 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 2017.

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.


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.

We are producing SHOTICTM 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.

We provide oil coolers, heat sinks and other heat

exchangers for industrial equipment, as well as cooling

devices for hybrid car power control units.

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 2016 the

production of sleek cans* was also launched at Hanacans’ site in

Vietnam.

Aluminum Cans

Aluminum

14%

High-purity aluminum foil



Sales 986 1,008 △22 △2.2


Aluminum Segment (Billions of yen)

Cooling devices

SHOTICTM

* 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.

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.

SDK launches SHOCARESTM bed sensor for care

Showa Denko has developed “SHOCARESTM” bed sensors for care, and started to sell them in October 2016.SDK developed SHOCARESTM 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.

SHOCARESTM 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.



About Show

a Denko

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The wafers are used as materials for next-

generation 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.

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.

E-POLE lighting system

■ Petrochemicals segment Sun Allomer Ltd. Tsurusaki Kyodo Doryoku K.K.

■ Chemicals segment Showa Denko Gas Products Co., Ltd. Nippon Polytech Corp.

■ Electronics segment Showa Denko HD Yamagata K.K. Showa Denko Packaging Co.,Ltd.

■ Inorganics segment Showa Denko Ceramics Co., Ltd. Showa Fine Ceramics Co., Ltd. Showa Denko Kenso Co., Ltd.

■ Aluminum segment Showa Aluminum Can Corp.

■ Others segment Shoko Co., Ltd. Showa Denko Kenzai K.K.

Major Subsidiaries as of March 31,2017

Etcetera

20%



Sales 1,424 1,472 △49 △3.3

Operating income 18 13 　　4 33.6

Etcetera Segment (Billions of yen)

Development Themes and Related BusinessesIncluded 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.

Major Subsidiaries in Japan

The numerical data shown above include those for the lithium-ion bat-tery materials business.

Acquiring non-stick coatings manufacturer the GMM Group

In November 2016, 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.

SiC epitaxial wafers

an overview of the showa denko group · 2017-09-05 · 8 show enko eport 2017 an overview of the...

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