Conscious of the environment and the need to conserve natural resources, Oxirane Chemical Corp. introduced vacuum pumps in place of injectors and improved processes at its production facilities in its ongoing efforts to promote energy efficient operations. Regrettably, these endeavors failed to produce material results due largely to the increase in energy-intensive products. Looking ahead, the company will redouble its efforts to curtail the use of energy.

With regard to Oxirane Chemical Corp.'s waste reduction activities, the company continues to successfully cutback waste oil and waste acid by realizing improvements in its production processes. In the second half of FY2004, the amount of landfill disposal was held within 1% of the amount of waste treated by commissioned subcontractors. This was primarily attributable to the use of incinerated residue. More recently, in FY2008, Oxirane Chemical Corp. has continued to successfully achieve zero emissions.

(1) Energy Conservation Activities
1. The introduction and installation of energy conservation facilities
Installation of the previously deferred batch plant vacuum pump in May 2008
2. Day-to-day management
Implementation of and strict adherence to such initiatives as the switching off of lights not is use and the control of air conditioning temperatures

Amidst an increase in energy-intensive products, Oxirane Chemical Corp. is promoting the upgrade of its vacuum systems shifting from injectors to vacuum pumps. Accordingly, one vacuum pump was installed in FY2008.

In FY2008, Oxirane Chemical Corp. achieved a 5.1% year-on-year reduction in steam consumption per unit of production. Electricity consumption per unit of production, on the other hand, climbed 6.5% year on year. Based on these results, the company had mixed results with respect to its established targets of a 1% reduction in steam and electricity consumption per unit of production compared with the previous fiscal year.

Looking at trends in energy consumption equivalent to crude oil, CO2 emissions and production amounts over the past five years, the amount of CO2 emissions in 2008 had increased 10.9% compared with those levels recorded in 1990.



(2) Industrial Waste Reduction
Owing to an accident in FY2007, 504 tons of foam fire-extinguishing agents were released as waste alkali for treatment by external subcontractors. By FY2008, however, Oxirane Chemical Corp. has again achieved zero emissions.

In FY2008, 36 tons of waste oil was used effectively as fuels. This reflects the company's ongoing efforts in this area.

On a year-on-year basis, both waste acid and organic sludge increased in FY2008. This partly reflects the reduction in waste in FY2007 attributable to the three-month shutdown of operations. Plans are in place to upgrade recyclable cleaning water facilities in FY2009. This is anticipated to help reduce waste acid.

The following chart represents trends in the amount of industrial waste treated by commissioned subcontractors over the past five years.



(3) The Management of Specified Chemical Substance Emissions
Oxirane Chemical Corp. carefully manages and annually reports to national authorities on the volumes of toluene and DOP, class 1 chemical substances designated under the Pollutant Release and Transfer Register (PRTR) Law, transported and emitted. In the fiscal year under review, the company again achieved a toluene retrieval rate exceeding 90% due largely to the effective management and use of toluene emission adsorption equipment installed in 2003.