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Denka
DenkaReport
Report
Integrated
IntegratedReport
Report
0002ⓢ0010
0002ⓢ0010
SM SM
Printed
Printed
in Japan,
in Japan,
Published
Published
in January
in January
20212021
by Denka
by Denka
Company
Company
Limited
Limited
Our Management Resources
■ Editorial Policy
The Denka Report 2020 printed brochure is
aimed at providing our stakeholders,
Our Corporate Philosophy
including shareholders and investors, with a
robust communication tool that focuses on
conveying what we have been doing to create
new value over the medium to long term from
the viewpoint of addressing environmental,
Following the celebration of its centennial in 2015, social and governance (ESG) issues.
In addition, we operate an ESG-themed
Denka established The Denka Value, a corporate philosophy. corporate website to ensure the
The Denka Value consists of the Denka Mission and the Denka Principles, comprehensive and timely disclosure of
relevant information.
a set of precepts aimed at guiding the actions of all Group employees.
(Corporate philosophy)
■ Coverage
The Denka Value
Fiscal 2019 (April 1 2019 through March 31,
2020) in principle; this report includes
additional information on some initiatives
undertaken subsequent to the fiscal 2019
year-end while presenting data on numerical
targets for and performance statistics from the
past several fiscal years.
Date of publication: January 29, 2021
Denka Mission Taking on the challenge of expanding the
■ Scope
possibilities of chemistry to create new value and In general, this report encompasses topics on
the Denka Group’s business sites within the
contribute to sound social development. scope of consolidation. However, some
articles are based on data gleaned outside
the scope of consolidation. These articles
individually specify the organizations subject
Denka Principles We: to reporting.
• Boldly confront challenges with determination and
■ Guidelines
SDGs
sincerity. ・The GRI Standards of the Global Reporting
Initiative (GRI)
• Think and take action today with the future in mind. ・The Environmental Reporting Guidelines
2018 of Japan’s Ministry of the Environment
• Deliver new values, and inspire customers through ・The International Integrated Reporting
Framework of the International Integrated
innovative Monozukuri.*
Reporting Council (IIRC)
• Respect the environment and create a cheerful workplace
that prioritizes safety. ■ Inquiries
Corporate Planning Dept., Denka Company Limited
• Contribute to a better society, whilst taking pride in being a TEL. +81-3-5290-5510
FAX. +81-3-5290-5149
trusted corporate citizen.
Nihonbashi Mitsui Tower, 1-1, Nihonbashi-Muromachi
*Japanese-style craftsmanship 2-chome, Chuo-ku, Tokyo 103-8338, Japan
http://www.denka.co.jp/eng/
Environmental Strategies Corporate Governance ■ Overview of the Denka Report 2020 and
CONTENTS 53
23 Initiatives to Achieve Carbon-Neutral Status Basic Approach to Corporate Governance Other Supplementary Reporting Tools
Our Management Resources 55 Concepts on the Appointment of Directors Financial information Non-financial information
Growth Strategies 56 The Denka Group’s Internal Control
01 Our Corporate Philosophy
27 Progress of the Denka Value-Up Management Plan 57 A Message from an Outside Director Denka Report 2020 printed brochure
03 Business at a Glance 1
(integrated report)
33 Introduction of Innovative Processes 59 Directors
05 Financial and Non-Financial Highlights
37 Nurturing and Better Utilizing Human Resources 61 Promoting Thorough Compliance
07 Trajectory of Denka’s Growth
with Specialized Skills 62
Website
09 Our Strengths Risk Management
39 Placing the Utmost Priority on Safety 2 ESG information
IR information
Value Creation 41 Quality Assurance Management Financial Information
website
11 A Message from the President 65 Consolidated Financial Statements https://www.denka.co.jp/eng/ir/ https://denka_sustainability.disclosure.site/en
Business Strategies
13 Our Value Creation Process
43 Life Innovation Corporate Information
15 The Denka Group’s Vision for 2030 regarding Its
45 70 Corporate Information
This report is aimed at providing our stakeholders, including shareholders and
Electronics & Innovative Products 1 investors, with a robust communication tool that focuses on conveying what we
Social Responsibilities and Contributions
47 Infrastructure & Social Solutions have been doing to create new value over the medium to long term from the
17 Dialogue with an External Specialist viewpoint of addressing ESG issues.
49 Elastomers & Performance Plastics
21 Special Feature: Our Healthcare-Related Operations 2
We maintain the timely and comprehensive disclosure of our ESG-related
51 Living & Environment Products corporate information via our website, updating reporting on relevant activities
and detailed data that has not been included in the aforementioned editions.
01 02
Our Management Resources
Business at a Glance
Others and
intersegment
elimination
¥36.2 billion Elastomers &
Performance Plastics
¥149.3 billion
Life Innovation
¥35.5 billion
Healthcare The environment and energy High-value-added infrastructure
Help people around the world Fiscal 2019
Create a clean and safe future Support infrastructure development
enhance their quality of life Consolidated Net Sales
society and improve accessibility
by Segment
¥380.8
In addition to illness prevention and early diagnosis via the We employ such core technologies as cutting-edge inorganic Addressing needs for such products as expansive additives,
provision of vaccines and diagnostic reagents, we are materials in product development with the aim of better quick-setting agents and high-strength materials, we provide
cutting-edge materials and solutions for infrastructure billion
expanding into cancer remedies and gene alteration analysis. satisfying the latest needs for solutions that help achieve zero
development while aiding in efforts to repair aged facilities and
emissions and support autonomous driving systems.
lengthen building life.
Life Innovation Electronics & Infrastructure &
Innovative Products Social Solutions
Vaccines Diagnostic reagents Spherical alumina DENKA BLACK NATMIC TOYODRAIN Infrastructure &
(underground drainpipes for Living &
Social Solutions
agriculture and construction use) Environment
¥54.8 billion
Products
Key Operations ¥37.0 billion
Electronics &
Innovative Products
We are increasing the “specialty grade” ratio in our product Elastomers & Living &
¥68.0 billion
lineup to secure resilience in the face of changes in external Performance Plastics Environment
conditions as we shift our focus to the solution business. Products
Examples of chloroprene Examples of products A food container TOYOKALON
rubber-based made using DENKA (synthetic fiber for wigs
automobile parts TRANSPARENT POLYMER and hairpieces)
Main Group Companies (styrene-based functional resin)
Japan Worldwide
• Kanazawa Denka Ready-Mixed Concrete Co., Ltd. • Denak Co., Ltd. • Denka Renotec Co., Ltd. • Denka Advanced Materials (Suzhou) Co., Ltd. • Denka Corporation • DENKA SEIKEN (SHANGHAI) Co., Ltd.
• Kanto Acetylene Industry Co., Ltd. • Denka Azumin Co., Ltd. • Toyo Styrene Co., Ltd. • Denka Advanced Materials Vietnam Co., Ltd. • Denka Electronics Materials Dalian Co., Ltd. • DENKA SEIKEN UK Limited
• Kanbara Ready-Mixed Concrete Co., Ltd. • Denka Elastlution Co., Ltd. • NAKAGAWA CO., LTD. • Denka Advantech Pte Ltd • Denka Infrastructure Technologies Pte Ltd • DENKA SEIKEN USA Incorporated
• Kyusyu Plastic Industry Co., Ltd. • Denka Consultant & Engineering Co., Ltd. • Nishi-nihon Koatsu Gas Co., Ltd. • Denka Chemicals Development Suzhou Co., Ltd. • Denka Infrastructure Technologies Shanghai Co., Ltd. • Denka Singapore Pte Ltd
• Kurobegawa Electric Power Company • Denka-KEW Genomics LLC • Higashi Nihon Koatsu Co., Ltd. • Denka Chemicals GmbH • Denka Inorganic Materials (Tianjin) Co., Ltd. • Denka Taiwan Corporation
• Sanshin Bussan Kabushiki Kaisha • Denka Kojundo Gas Kabushiki Kaisha • Hinode Kagaku Kogyo Kaisha. Ltd. • Denka Chemicals Holdings Asia Pacific Pte Ltd • Denka Korea Co., Ltd. • Icon Genetics GmbH
• Juzen Chemical Corporation • Denka Cosmetics Limited Company • Akros Trading Co. Ltd. • Denka Chemicals Hong Kong Co., Ltd. • Denka Life Innovation Research Pte Ltd • PT. ESTOP Indonesia
• Shonan Sekisui Kogyo Kabushiki Kaisha • Denka Ready-Mixed Concrete Takayama Co., Ltd. • Denka Chemicals Shanghai Co., Ltd. • Denka Middle East and Africa FZCO
• Denal Silane Co., Ltd. • Denka Polymer Kabushiki Kaisha • Denka Construction Solutions Malaysia Sdn Bhd • Denka Performance Elastomer LLC
03 04
Our Management Resources
Financial and Non-Financial Highlights (Fiscal 2019)
Financial
Overseas sales / Operating income / Profit attributable to
Net sales overseas sales ratio operating income ratio Total assets / ROA Cash flow (CF)
owners of the parent / ROE
156.3 / 31.6 / 22.7 / 501.4 / 41,954
Million
380.8
Operating CF yen
Billion Billion Billion Billion
-36,303
Billion yen yen yen yen
Million
41.0% 8.3% 9.1% 6.1%
yen Investment CF yen
Financial CF
9,544 Million
yen
Profit attributable ROE（%） Operating CF Investment CF
Net sales(Billion yen) Overseas sales(Billion yen) Operating income(Billion yen) to owners of the parent Total assets(Billion yen) ROA（%）
Financial CF
Overseas sales ratio(%) Operating income ratio(%) (Billion yen)
25.0 501.4
413.1 176.1
Million yen
48,776
395.6 168.7 33.7 34.2 23.0 22.7 473.8 483.8 44,014
369.9 362.6 380.8 156.3 30.6 31.6 443.9 454.9 39,557 41,954
138.7 141.5 19.5 32,660
25.8 18.1
42.6 42.6 6.9
8.5 8.3 10.3
10.0 6.8 9,544
39.0 8.3
41.0
37.5 8.2 6.1
9.3
6.1
9.1 -7,348 -8,408
7.1 8.3 -19,319
5.2 -15,858
-22,258
-26,176
-29,298
-34,979 -36,303
FY 2015 2016 2017 2018 2019 FY 2015 2016 2017 2018 2019 FY 2015 2016 2017 2018 2019 FY 2015 2016 2017 2018 2019 FY 2015 2016 2017 2018 2019 FY 2015 2016 2017 2018 2019
Non-Financial
Development Power generation Offices Production and sale
Promoting open innovation, we are developing new To produce clean energy, we are employing a total of We are promoting work style reforms and workforce Giving due consideration to our environmental footprint,
products and technologies that contribute to a 15 hydroelectric power plants in addition to operating diversity at our business bases at home and we pursue sustainable manufacturing operations to
sustainable society. cogeneration systems fueled by natural gas. abroad. deliver safe and reliable products.
Purchased
energy
40％ Hydroelectric
Breakdown 40％
Volume of waste and industrial Volume of CO2 emissions Final disposal
by energy Average number of Ratio of female byproducts accepted from from energy sources and amount of waste
R&D expenses Hydroelectric annual paid leave employees
source external sources and used to non-energy sources
power generation days utilized (non-consolidated basis)
1,950
Thermal
15.0 40% 12.7 14.4% 393 42
produce one ton of cement
Waste heat (natural gas)
Billion 2％ 18％ thousand
yen days kg/t-Cement tons tons
Volume of waste and industrial
Trend in energy consumption intensity Average number of annual Ratio of female employees byproducts accepted from
R&D expenses (billion yen) external sources and used to Volume of CO2 emissions Final disposal amount (tons)
Trend in production volume paid leave days utilized （%）
(non-consolidated basis) (thousand tons)
produce one ton of cement
14.6 15.0 12.7 14.1 14.4 （kg/t-Cement）
13.9 0.95 0.95 1.00 0.94 11.8
11.8 13.0 0.94 10.5 365 393 367 401 393 153
0.95 0.91 9.6 9.7
0.94 119
0.92 0.90 7.8 8.2 8.7
Note:
The fiscal 2013 level = 1
88
49 42
FY 2015 2016 2017 2018 2019 FY 2015 2016 2017 2018 2019 FY 2015 2016 2017 2018 2019 FY 2015 2016 2017 2018 2019 FY 2015 2016 2017 2018 2019 FY 2015 2016 2017 2018 2019 FY 2015 2016 2017 2018 2019
05 06
Our Management Resources
Trajectory of Denka’s Growth
Taking on the Challenge of Expanding the Possibilities
of Chemistry for More than a Century Macromolecular sodium
Merged with Denka Seiken via an absorption merger
Novel coronavirus antigen rapid test kits
The Denka Group has striven to create a wealth of products ever since its founding, beginning with hyaluronate preparation
the innovative application of calcium carbide production technologies and expanding into 1986 Biotechnology research 2016
Immunochemistry Established an R&D
operating a pharmaceutical business that today boasts an established track record spanning more 2020 Healthcare
diagnostic reagents
1996 base in Singapore
than 70 years. Reflecting the needs of the times in our output, we have thus pursued the ultimate in 1979
Monozukuri (Japanese-style craftsmanship). Leveraging its arsenal of unique technologies, which are backed
Made an entry into the pharmaceutical field Antigen and 1985 2000 2015 by a long track record spanning more than 70 years, former
Having acquired shares in the Research Institute for Biology, antibody Denka Seiken has created epoch-making pharmaceutical
Diagnostic Influenza antigen Made
Dr. Tsuneichi Fujiyama, the pioneer Physics and Chemistry, which was established in 1950 reaction
reagents detection test kits Germany-based
products, such as vaccines and diagnostic reagents. Looking
ahead, the Denka Group will strive to help enhance people’s
technologies
of the carbide industry in Japan (subsequently renamed Toshiba Kagaku Kogyo in 1951 and
Point-of-Care Testing Icon Genetics quality of life and, to this end, deliver solutions to counter
then Denka Seiken Co., Ltd. in 1982), the Company made an
(POCT) GmbH a subsidiary infectious diseases and lifestyle diseases while providing cancer
In 1902, at a plant in Sankyozawa, near Sendai city, Dr. entry into pharmaceutical-related fields, including vaccines drugs and cancer remedy information services.
Technologies to
Fujiyama became the first in Japan to successfully and diagnostic reagents. Adhesion combine multiple
manufacture calcium carbide. This was only about ten
years after the world’s first trial production of calcium Made an entry into
technologies different materials The environment and energy
carbide by a Canadian chemist. He also introduced
technology for the manufacture of calcium cyanamide the fine ceramics field 1971 Our research into high-temperature control and nitride technologies led
(nitrogenous limestone) from calcium carbide to Japan. In 1971, the Company 1976 1981 1985 1989 1998 2004 2009 2015 to the creation of fine ceramics that, in turn, helped us develop an array
Moreover, he himself developed a steady stream of initiated the marketing of of unique solutions in the field of electronic materials, including
new technologies and opened the Hokkai Carbide HARDLOC Thermally HITTPLATE Spherical DENKA SN Spherical Launched the Initiated the insulation as well as thermally and electrically conductive and
fused silica and boron nitrate high-performa conductive fused silica Plate alumina ALONBRIGHT production of heat-resistant materials. Today, our products are used for a broad range
Plant in the city of Tomakomai, Hokkaido, in 1912. His
achievements greatly influenced the subsequent (BN) and developed various nce adhesive sheets filler phosphor ALSINK in China of applications, such as automobiles, railcars, displays and mobile
growth of Japan’s chemical industry. fine ceramics materials devices, to help achieve technological innovation in terms of energy
Application of synthesis, calcining
thereafter.
and sintering technologies 2015 saving, miniaturization, weight reduction and functional upgrading.
Technological pursuit aimed at Made Malaysia-based
functionally upgrading concrete POSCO a subsidiary High-value-added infrastructure
1915 Our special cement additive business began with the release
1954 1963 1967 1977 1980 1993 2001 2006 2012 of DENKA CSA in 1967. Since then, we have been serving
markets at home and abroad to meet needs for expansive
Entered the cement business AZUMIN Launched CSA production Σ1000 NATOMIC Denka TECHNOCRETE TORETARO SUQCEM Commercialized additives, quick-setting agents, high-strength materials and
on a full-scale basis as well as the special Technologies Quick-setting System CO2-SUICOM other cutting-edge solutions in construction and civil
Entered the field of cement additive business engineering fields. In addition to helping reduce
Launched the manufacture of calcium to enhance agent Technologies for repairing and
environmental burdens, we are taking on infrastructure
acetylene chemistry Cracking prevention technologies concrete technologies enhancing the durability of buildings
carbide and calcium cyanamide (e.g., nonshrink grouting materials) strength
development in such regions as Southeast Asia while
In 1915, Denki Kagaku Kogyo Kabushiki Kaisha 1962 1965 1987 1997 2007 2015
supporting the resolution of issues associated with the repair
of aged concrete structures and increasing building
(now Denka Company Limited) was established Organic polymer-related technologies, durability in Japan.
Successfully initiated the domestic Entered the petrochemicals field including precise synthesis, Maleimide-modified Launched polystyrene Became the world’s biggest Established Denka
as the successor to the Hokkai Carbide Plant. It production of chloroprene rubber Styrene monomer and polystyrene polymerization and composite techniques resin production in Singapore chloroprene rubber producer Performance Elastomer
1942
started off producing calcium carbide and a
calcium cyanamide fertilizer derived from
calcium carbide, with hydroelectric power 1970 1985
plants providing the production facilities with
electricity to sinter limestone and coke. ABS resin / EVA TEX DENKA ER The specialization of key operations
Commercialized acetylene black 2003 We are increasing the “specialty grade” ratio in our product
The Company entered the acetylene chemicals field 1949 1951 1955 1967 1970 1983 Polymer design and 2015 lineup to secure resilience in the face of changes in external
conditions as we shift our focus to the solution business.
via the application of technologies that utilize processing technologies Initiated the production
TOYO VINI-TAPE Rain gutters Corrugated TOYOKALON Biaxially-oriented
acetylene derived from calcium carbide. After the of VINI-TAPE in Vietnam
KAGAKU Co., pipes polystyrene sheet Having merged with TOYO KAGAKU Co., Ltd., the Company
release of acetylene black in 1942, the Company
Ltd. (BOPS) launched the Living & Environment Products Business,
succeeded in commercializing such products as Centennial of Denka’s founding
acetic acid, vinyl acetate and vinyl chloride. established introducing a lineup of unique products made via resin
processing and designed to help enhance people’s
2015 Rebranded to “Denka Company Limited”
well-being and preserve the global environment.
1915-1944 1945-1974 1975-2006 2007-2017 2018-2022
Initial Period Period of Expanding Core Businesses Period of Expanding Specialty Businesses DENKA100 Denka Value-Up
Launched the calcium Entered the field of acetylene chemistry Created a series of leading-edge products via a combination of Developed a robust foundation for To become a specialty-fusion company capable of
cyanamide business organic and inorganic chemistry the next 100 years while focusing achieving sound and sustained growth
management resources on growth fields
Trend in Operating 400 Net sales 50 Profit
Results 350
(Billions of yen) (Billions of yen)
40
300
Net sales (left axis)
250
30
ー Operating income
(right axis) 200
ー Net income
20
150
Note: Figures for the period leading up to fiscal
1976 represent the Company’s operating 100
results on a non-consolidated basis. 10
Figures for fiscal 1977 and later 50
represent consolidated operating results.
0 0
1950 1960 1970 1980 1990 2000 2010 2019
07 08
Our Management Resources
Denka Value-Up Challenges
Our Strengths Infrastructure & Social Solutions
105
In line with the Denka Value-Up management plan, we are striving to become Building on a track record in A track record spanning
the functional fertilizer
a “Specialty-Fusion Company with a Strong Global Presence.” Here, we introduce business spanning 105 years,
some notable topics associated with distinctive strengths we are currently honing Biostimulants
Denka develops and delivers
solutions supporting
as we take on the challenge of expanding the possibilities of chemistry. Biostimulants are a new technology that aims to control agricultural production and a
years
abiotic stresses imposed on plants, reducing damage steady food supply.
inflicted by shifts in climate or soil conditions and thus
Hydroelectric Power Generation Overseas Network (Singapore) helping cultivate healthy crops.
Denka provides a humic acid liquid fertilizer that serves
years since Denka’s founding
15
as a biostimulant and contributes to higher crop quality and
power plants in Japan
40
larger crop yields.
(including those under
co-ownership via a joint venture)
Maximum output:
Elastomers & Performance Plastics
118,240 The th
No.1
kW anniversary of expansion into Singapore We command the world’s No.
1 share in various product The world’s
Note: As of April 2020; output from power plants owned by categories.
the joint venture is calculated based on Denka’s equity ratio.
Employing production
facilities at home and abroad,
Since its founding in 1915, Denka has been proactively engaged in the construction In 1980, we established Denka Singapore Private Limited (DSPL) to accommodate we deliver a stable supply of
of hydroelectric power plants. growing demand for acetylene black for use in dry batteries and power transmission high-quality products to
Output from 15 hydroelectric power plants, including those under co-ownership cables. Having reached a new landmark in our expansion into Singapore, where we customers around the globe. DENKA CHLOROPRENE
via a joint venture, accounts for approximately 40% of Denka’s energy consumption. currently produce a number of offerings, including acetylene black, spherical fused market share (chloroprene rubber (CR))
Currently, construction projects are under way to build the New Omigawa Power silica fillers, styrene-based synthetic resins and vinyl chloride resin fibers, through
A type of rubber that is extremely easy to process, CR boasts
Plant (maximum output: 8,100kW; planned operational kickoff: December 2020) and our own local plants. Right now, efforts are underway to upgrade these facilities into
all-weather superiority, ozone and oil resistance and is
the New Himekawa Power Plant No. 6 (maximum output: 28,000kW; planned a smart factory employing cutting-edge AI and IoT.
equipped with other excellent and well-balanced properties.
operational kickoff: April 2022; owned by the joint venture).
Life Innovation Living & Environment Products
Our rapid diagnostic testing kits detect
the existence of novel coronavirus
15
Time necessary for
60
antigen in approximately 15 minutes
without using special measurement diagnosis Denka became the first in Japan to Used in approximately
equipment. successfully commercialize a vinyl
15
Thus, these testing kits serve as a tape.
hassle-free solution enabling Today, our VINI-TAPE is used in
healthcare institutions in general to approximately 60 countries
quickly conduct examinations. worldwide.
By using specimens collected
from the examinee’s nasopharynx or Cold-resistant, thin harness tape
nasal cavity, our testing kits are minutes Novel coronavirus antigen countries worldwide
capable of executing the simultaneous rapid diagnostic testing kits A vinyl tape for bundling wire harnesses, essential
testing for the novel coronavirus, automobile components, our harness tape is the
Released in August 2020 for use by healthcare industry’s thinnest and contributes to reduction in
influenza virus and RS virus. institutions. vehicle weight.
Electronics & Innovative Products TOPIC
Contributing to industry efforts aimed at adapting to a revolutionary change
that has been accelerating in the face of a post-pandemic world
According to input from automakers and industry specialist magazines at home and abroad, the automotive industry is currently
facing an urgent need to disperse supply chain risks and to take a more selective approach when determining R&D themes in
No.1
We command the world’s
order to counter sluggish financial results in the wake of undeniable changes in the business environment due to the influence of
No. 1 market share of
the novel coronavirus pandemic.
ultra-pure acetylene black, The world’s On the other hand, since before the pandemic four technological trends—Connected, Autonomous, Shared & Services and
which boasts robust electro
Electric—summarized as CASE have been precipitating a once-in-a-century revolutionary change that has been picking up
and thermal conductivity,
momentum throughout the global automotive industry. Among these four technological trends, Shared & Services is expected to
and spherical alumina,
face difficulties due to anxiety about the risk of infection. However, automobiles themselves are once again garnering public
which was developed via
support as they represent optimal vehicles for individual mobility. Accordingly, the Connected, Autonomous and Electric trends are
DENKA BLACK Spherical alumina the use of unique
expected to accelerate the pace of development industrywide. Moreover, the current surge in the popularity of online shopping is
technologies to achieve
driving the vigorous movement of goods via parcel delivery and other services. Despite the expected stagnation of Shared &
We offer a diverse product lineup employing fine Services technologies, the ongoing megatrend toward Mobility as a Service (MaaS) will thus continue.
ceramics, organic fine chemicals and technologies for
superior sphericity. market share Taro Kamiya Aiming to meet needs for solutions supporting the post-pandemic trends discussed above, we are striving to ensure the
combining these materials. In particular, we boast the Automotive Materials & steady supply of acetylene black, spherical alumina, ceramics-based electronic circuit substrates and other EV-related products,
world’s No. 1 market share of DENKA BLACK and Solutions (AMS) Dept. all of which have gained growing popularity. Simultaneously, we are endeavoring to release new products for use in connected
spherical alumina. cars and autonomous driving systems (LCP film and low dielectric loss tangent fillers) at an even faster pace.
Looking ahead, we will cultivate even closer ties with automakers and automobile parts manufacturers as we strive to flexibly
and accurately accommodate the evolving needs of society. In these ways, we will develop new materials and components with
the aim of contributing to the realization of a sustainable society as a chemical manufacturer.
09 10
Value Creation
Fulfilling Denka’s Social Responsibilities
A Message from the President In April 2020, the Denka Group executed two reorganization contributing to the enhancement of the latter’s diagnostic
measures. First, Denka Company Limited merged with Denka examination capacities.
Seiken Co., Ltd. with the aim of strengthening the healthcare In addition, we have rallied the Group’s overall strengths to
business. Second, the merger of the Group’s two trading resume the production of diethyl malonate, the raw material for
companies resulted in the inauguration of Akros Trading Co. Ltd. Avigan , an anti-virus drug expected to help treat novel
Through the integration of Group entities equipped with different coronavirus infection, to fulfill our responsibilities as the only
cultures and strengths, we will push ahead with across-the- domestic manufacturer of this substance. In the short span of
board reforms and facilitate intragroup collaboration, thereby six weeks since receiving a request from the government, we
maximizing synergies. were able to restart our production lines, which had lain dormant
When it comes to making social contributions through our for three years, and have begun once more supplying an
business operations, we can point to a number of accomplishments, essential ingredient for Avigan , thus supporting the buildup of
some of which we have listed below, achieved through the the drug’s stockpiles. It is our sincere hope that our efforts as
strengthening of our approach to reforms and collaboration on a discussed above will contribute to the delivery of remedies to as
Groupwide basis. many patients as possible and the restoration of their health.
Since the beginning of fiscal 2020, we have been placing We aim to serve as a contributor to the technological
particular emphasis on delivering solutions enabling the swift sophistication of the post-pandemic society. Accordingly, we are
diagnosis of the novel coronavirus as well as supporting a providing customers around the globe with a number of
remedy for the disease. products supporting the introduction of 5G infrastructure and
To this end, we developed a rapid diagnostic testing kit for the intensive use of car electronics. In particular, we command
detecting the novel coronavirus antigen. Thanks to the the world’s largest market share for acetylene black, spherical
dedication of our staff and cooperation of external partners, the alumina and other essential materials for use in communication
testing kit was completed amazingly quickly and successfully base stations as well as those used in lithium ion batteries.
released in August 2020. This testing kit detects the existence of Demand for these materials is expected to grow rapidly. In
the antigen in quite a short period of time without using specific addition to maintaining the stable supply of these offerings, we
Manabu Yamamoto diagnostic equipment. In October, we also released a new
version capable of performing simultaneous examinations for the
will continue to develop new products in an effort to secure our
ability to meet future needs arising from the growing popularity
Representative Director, novel coronavirus, influenza virus and RS virus as well as of high-speed communications and the widespread use of
President & CEO accommodating a specimen collected from the examinee’s high-performance electric vehicles (EVs) with the aim of fulfilling
nasal cavity. The latter feature is expected to help medical our social responsibilities.
practitioners avoid the risk of infection in the course of collecting
specimens. Our solutions are thus helping reduce burdens Note: Avigan is the registered trademark of FUJIFILM Toyama
placed on both examinees and healthcare institutions while Chemical Co., Ltd.
Becoming a Company That Is Genuinely Needed by Society by
Striving to Achieve Carbon-Neutral Status
Reshaping Our Vision Amid the Novel Coronavirus Crisis Even in the midst of drastic changes in the business answer lies in our ongoing efforts to pursue our goal, which I
environment like those seen today, our corporate philosophy mentioned earlier, of becoming a company that is genuinely
First of all, I would like to express my deepest condolences to With this in mind, we consider the imminent management aimed at achieving sustainable growth in a way that fulfills our needed by society. To that end, we will steadily promote the
any who have lost loved ones to the novel coronavirus. At the challenges we are currently confronting to be twofold: social responsibilities remains unchanged. In line with this, we Denka Value-Up management plan, pushing ahead further with
same time, I pray for the earliest possible recovery of people (1) securing a foundation for boosting our business expansion have positioned the SDGs as our compass for the execution of the specialization of our business structure while accelerating
infected with the disease. Also, I would like to extend my and achieving sustainable growth in ways that accommodate an ESG-oriented management approach. Moreover, our across-the-board operational reforms aimed at improving
wholehearted respect and gratitude to the frontline medical changes in social structure in the post-pandemic period as well corporate philosophy is shared by all Group members, with productivity via the introduction of the cutting-edge technologies
practitioners who combat the novel coronavirus to save lives and as needs arising in people’s lifestyles due to the new normal and Denka Value-Up, our current management plan, being executed and digital transformation (DX). Simultaneously, we will strive to
other essential workers who, despite the pandemic, strive to fulfill (2) contributing to the resolution of issues society is now to support the realization of this philosophy. help employees embrace innovative working styles as they learn
their duties to support our daily lives. confronting in regions around the world through our business Looking at concrete initiatives under this plan, we are to adapt to the new normal in the post-pandemic period. Our
In 2020, the global economy has seen a crisis greater than operations. responding to issues arising from global warming by promoting Companywide policy on work style reforms was formulated for
the worldwide recessions triggered by Lehman Brothers Meanwhile, the United Nations Sustainable Development energy-saving measures at production front lines and that purpose. In line with this policy, we will empower each
bankruptcy. Many industries at home and abroad have been hit Goals (SDGs) have become more important than ever before in strengthening our network of hydroelectric power plants via the employee to choose the most efficient working style that enables
hard by a rapid decline in demand. In the short term, we must terms of determining the immediate direction of our business expansion of their output and the construction of new plants. them to realize their full potential and strike an optimal work-life
focus on overcoming economic fluctuations and continuing our activities centered on addressing environmental, social and Furthermore, we have formulated a new target of achieving balance. In these ways, we will improve productivity for the entire
business activities while acting swiftly to meet the pressing need governance (ESG) issues. We have thus positioned the SDGs as “carbon neutral” status, that is, reducing our net emissions of Denka Group.
for infection countermeasures. We must also work to secure our our compass in line with our aim to take a consistent approach greenhouse gases to zero, by 2050. To achieve this target, we Lastly, while I am proud of Group employees who share an
resilience against natural disasters, which have been hitting this to both business operations and social contribution activities and will pursue innovation employing our unique strengths as a aspiration to uphold Denka’s corporate philosophy, I also
nation one after another. In the long term, we are called upon to realize our goal of becoming a company that is genuinely chemical manufacturer. consider the trust of our stakeholders who support this
tackle the fundamental challenge of reshaping our vision as a needed by society. In the face of changes in social structure brought about by philosophy to be among the Company’s most valuable assets.
business, just as individuals and society as a whole are being the novel coronavirus pandemic, many businesses are looking As we strive to realize our corporate philosophy, we
asked to figure out how to adapt to the irreversible lifestyle for answers as they seek to secure their continued operations sincerely ask for your ongoing support for our endeavors.
changes brought about by the novel coronavirus pandemic. and corporate growth going forward. For Denka, I believe, the
11 12
Value Creation
Our Value Creation Process 企業理念 Philosophy
Corporate
The
The Denka
Denka Value
Denka Mission
Denka Principles
The Denka Group’s 13 Materiality Issues https://denka_sustainability.disclosure.site/en/themes/729
【Categories】
【Categories】 ■
■ Prioritization
Prioritization of
of safety
safety ■ Products
■ Products and
and technologies
technologies ■ Solid
■ Solid corporate
corporate governance/Corporate
governance Corporate conduct
conduct deserving
deserving of
of stakeholder
stakeholder trust
trust ■ Employee
■ Employee happiness
happiness ■ Environmental
■ Environmental preservation
preservation ■ Dialogue
■ Dialogue with
with society/Partnership
society/Partnership
社会的課題
Social Issues 6つの資本
Six Types of Capital The Denka Value-Up Management Plan (fiscal 2018 – fiscal 2022) Contribute to sound
social development
Contribute to sustainable social development as a company genuinely needed by society
知的資本
Intellectual Healthcare
無機化学で培った高温焼成技術、
● High-temperature calcining
● Prevention of technologies developed through our In addition to supporting the prevention and early diagnosis
● 感染症流行拡大の
無機 ・有機の複合技術、
infectious disease inorganic chemistry-related endeavors of infectious diseases and lifestyle diseases via the
高分子合成 ・ 樹脂加工技術、
防止 pandemics
● Improvement of
● Organic and inorganic material
感染症領域の抗原抗体反応技術
composite technologies Pursuing 成長戦略
Growth Strategies provision of vaccines and diagnostic reagents, we are
expanding into such new businesses as cancer-related gene
● 高齢化が進む社会の ● Polymer synthesis and resin processing
people’s quality of life in alteration analysis.
QOLan の向上
※
increasingly graying technologies
※クオリティ オブ ライフ
society ● Antigen and antibody reaction
Business portfolio shift
自然資本
事業ポートフォリオの変革
technologies for advancing infectious
Introduction of innovative
Specialty-
disease countermeasures
processes Help protect
ヘルスケア
Healthcare 水力等の自社発電所 革新的プロセス Fusion people’s health and
Three human resource
Natural
3つの人財戦略
strategies Company prevent infectious
Company-owned power generation
Become a Specialty-Fusion
disease pandemics
facilities, including hydroelectric power ・・
Securing human resources with
スペシャリティー人財の確保
plants
specialized skills
Company with a Strong
Global Presence
The environment
製造資本 ・ 働き方改革
・Work style reforms and energy
エネルギー効率の高い製造設備、 Manufacturing ・・ ダイバーシティ推進
Diversity promotion
● 地球温暖化
● Global
● Soil,
air and marine
warming
循環型社会に貢献する
● Manufacturing facilities boasting
Our We employ such core technologies as cutting-edge
inorganic materials in product development with the aim of
セメントプラント
● 陸上・海洋汚染
pollution
Need for resource
●
superior energy efficiency
● Cement production facilities that Threefold meeting needs arising from mega trends toward high-speed
data communications, the intensive use of car electronics
Growth
● 資源循環への対応 contribute to a recycling-oriented society and the introduction of autonomous driving systems
Sustained
recycling solutions
● 輸送システムの
● The safety of
Vision Sound
安全確保
transportation
systems
人的資本
Human
Growth Growth
Maintain Sustained
お客様のニーズに真摯に応え、 Placing the utmost Growth by Significantly
Secure Sound Growth Create a clean and
モノづく
安全最優先
A りを通じてソリュー
環境・The
エネルギー
corporate culture that sincerely
environment addresses customer needs and seeks to priority on safety Enhancing Productivity
through Work Style safe future society
ションを提案する企業文化 through Innovative
and energy propose solutions through manufacturing Reforms
Stepping up Processes
環境経営の強化
environmental
management High-value-added
Social
社会関係資本 新しい働き方の追求
● Need for
Incorporating innovative infrastructure
countermeasures
against aging
Across-the-board involvement in open
産官学で社会課題解決を目指す
innovation that aims to help resolve SDGsへの貢献
working styles
As a provider of cutting-edge materials and solutions,
オープンイノベーションの文化
● インフラ整備と老朽化
infrastructure and new issues society is confronting via
industry-academia-government
Contributing to SDGs including expansive additives, quick-setting agents and
への対応 infrastructure high-strength materials, we support the development of
development collaboration
resilient infrastructure while aiding in efforts to repair aged
● 持続可能な農業と
● Need to secure the facilities and lengthen building life.
安全で栄養のある
sustainability of
agriculture and a safe
食糧の確保
Fulfilling 社会的責任の遂行
our social responsibilities
and nutritious food 財務資本Financial
supply
Support infrastruc-
バランスのとれた
Ability to execute strategic investment
高付加価値
High-value-added and secure robust shareholder returns in
戦略投資と株主還元
ture development
infrastructure
インフラ
a well-balanced manner
and improve
accessibility
13 14
Value Creation
The Denka Group’s Vision for 2030 regarding
Its Social Responsibilities and Contributions MANUFACTURING
Our factories will be even more worker- and eco-friendly and coexist harmoniously with
the people, flora and fauna of their neighboring communities in addition to consuming
As a producer of chemical and pharmaceutical products, the Denka Group bears various responsibilities attendant to its value chain for
less fossil fuel and minimizing the use of fossil-based resources as raw materials.
delivering goods and solutions to society. Advances in IoT, robotics, VR/AR and other technologies will help establish labor-saving
Meanwhile, the twelfth of the United Nations Sustainable Development Goals (SDGs), a set of international goals to be achieved by “smart” manufacturing processes, resulting in a lean production system capable of handling
2030, calls for public awareness of “Responsible consumption and production.” the small-lot production of multiple items while ensuring high quality. Simultaneously, we
Based on the concept of a circular economy, we have identified issues the Denka Group must address and responsibilities it must will realize a safer labor environment in which everyone can work with confidence.
assume in support of this goal. Aiming to be a company that is genuinely needed by society, we will focus on applying the unique Thanks to the popularization of AI-based development activities and the use of a
strengths of the Denka Group and the areas in which it is best positioned to contribute to society. “smart” office/factory, our employees will be empowered to concentrate on tasks only
humans can handle, shifting their focus from simple manufacturing to value creation.
■：Social responsibilities to be fulfilled via manufacturing ■：Responsibilities to the environment, resource preservation and safety
■：Strategies Develop materials free of fossil Achieve carbon-neutral status and Embrace innovative working styles
resources reduce the environmental burden and promote work style reforms
RECYCLING •Employ naturally derived ingredients
to zero •Employ a “smart” office/factory while
from plant-based and other sources as •Develop CO2 and carbon circulation nurturing human resources with
Working in tandem with other members of society, we will create manufacturing processes and technologies
well as microorganism cultivation specialized skills
ecosystems designed to deliver products that are long-lived or easy to recycle while minimizing •Achieve “zero emission” status in terms
their footprints on the natural environment, including on marine, land and other living organisms. Page 49 Elastomers & Performance of waste disposal Page 29 Work Style Reforms
For example, we will recycle waste plastics into raw material monomer for use in the Plastics Page 23 Initiatives to Achieve Page 33 Introduction of Innovative
manufacture of new products. We will also produce recycling-oriented materials that smooth the Page 51 Living & Environment Carbon-Neutral Status Processes
separation of parts and/or cleansing, while developing highly durable products that are inherently Products Page 39 Placing the Utmost
capable of self-restoration if cut or cracked as well as those that naturally repel stains. Priority on Safety
Ensure occupational safety and
Furthermore, we will incorporate CO2 as a plastic ingredient. In all these pursuits, we remain Pursue clean energy health while creating a lively and
strongly committed to lengthening product life and promoting recycling. technologies sound workplace environment Launch the full-scale utilization
•Battery material and high-temperature •Reduce intrinsic dangers associated with
of material informatics
control technologies our operations and improve the •Utilize a data lake, AI and text mining
workplace environment technologies
Page 45 Electronics & Innovative
Products Page 39 Placing the Utmost Page 35 R&D Process Reforms
Priority on Safety
Promote a circular economy
Push ahead with energy-saving Drastically improve labor
•Establish a plastic recycling ecosystem productivity
•Develop CO2 and carbon circulation technologies measures while promoting the
use of renewable energy •Introduce robotics, IoT and AI
Page 23 Initiatives to Achieve Carbon-Neutral Status technologies to improve productivity
•Enhance energy efficiency while
while securing the ability to handle
expanding our hydroelectric power
RECYCLING MANUFACTURING
small lots of multiple production items
Enhance infrastructure resilience by delivering generation capacities
Page 33 Introduction of Innovative
technologies to lengthen the durability of and Page 5 Non-Financial Highlights
Processes
restore concrete and other structures Page 23 Initiatives to Achieve
Contribute to the advancement of concrete and special Carbon-Neutral Status
cement additive technologies
Page 47 Infrastructure & Social Solutions TRANSPORTING
High-speed circulation of digital data encompassing every corner of
society will help realize a “smart” factory and reduce the volume of
products that need to be transported or stored.
Moreover, the popularization of working remotely will result in
a decrease in traffic and contribute to a reduction in the
environmental burden.
The Denka Group will supply cutting-edge materials and
electronic components for use in high-speed data communication
infrastructure, electric vehicles equipped with autonomous driving
systems, automotive fuel cells, drones and other machines.
USING
Targeting “Generation Z,”* which prizes empathy, sharing USING TRANSPORTING
economies and respecting the unique attributes of
individuals, as well as people who are highly concerned
about ethical consumption, we will deliver manufacturing Create new value through Ensure sustainable and stable logistics operations
proposals for products and solutions that resonate with innovation in logistics and sales •Pursue the improvement of our working environment and the enhancement of
these sensibilities and help consumers discover new value
while focusing on ensuring functionalities and
processes labor efficiency and productivity by advocating for the “white logistics movement”*
•Help resolve issues confronting society by •Ceaselessly work to reduce environmental burden via partnership with supply
eco-friendliness of our offerings.
stepping up collaboration with supply chains
We will also incorporate findings from biomimetics to
*An initiative promoted by the Japanese government since 2018 with the aim of achieving a
advance our R&D aimed at creating eco-friendly products chains highly productive and efficient logistics process while ensuring better working environments for
that generate minimal waste. •Leverage advanced information networks operators
Moreover, we will uphold our commitment to ensuring and create an innovative business model Page 39 Placing the Utmost Priority on Safety
the health of product users.
In line with these pursuits, we will be deeply involved
in the provision of products and services aimed at assisting
health maintenance and disease prevention as well as
those addressing pre-symptomatic conditions.
Protect people’s lives and well-being Contribute to food safety Assist women around the Support the development and Contribute to the
Furthermore, we will help reduce the volume of food •Advance disease prevention, diagnosis and and the resolution of food world in their pursuit of maintenance of resilient infrastructure popularization of autonomous
waste associated with processes ranging from harvesting treatment technologies while helping improve problems success via the provision of and safe transportation methods driving systems and drones
through transport, processing and sale. In addition, as part pre-symptomatic conditions •Help providers adapt to “new fashion items •Provide chemical and electronic materials for •Contribute to 5G and other
of efforts to ensure food safety, we will contribute to •Contribute to the establishment of technologies norms” in lifestyles, such as the •Supply TOYOKALON (synthetic fiber automotive parts and rolling stock communication technologies via the
logistics efficiency and help consumers smoothly receive to prevent, diagnose and treat diseases arising growing trend toward solitary for wigs and hairpieces) •Provide special cement additives for road and supply of chemical and electronic
fresh food. from the novel coronavirus dining, by delivering food tunnel construction
Page 51 Living & Environment materials
* From 2030 onward, Generation Z are expected to be in their packaging materials that help
early 30s and become leaders of society around the world. Page 17 Dialogue with an External Specialist Products Page 45 Electronics & Innovative Products Page 45 Electronics & Innovative
preserve freshness and otherwise
Page 21 Special Feature: Our supporting stable food supply Page 47 Infrastructure & Social Solutions Products
Healthcare-Related Operations Page 49 Elastomers & Performance Plastics
Page 51 Living & Environment
Page 43 Life Innovation
Products
15 16
Value Creation
Dialogue with an External Specialist
Becoming a Truly Resilient Company by Preparing for New Risks
Tateda: The risk of a global infectious disease pandemic has Tateda: The pandemic revealed two weak points in Japanese
long been considered inevitable by many specialists. The society. First is the country’s less than robust ability to carry out
recent emergence of the novel coronavirus saw their warnings Polymerase Chain Reaction (PCR) testing, with the required
becoming a reality, with an outbreak quickly developing into a equipment in extremely low stock at domestic healthcare
worldwide pandemic. institutions. Given the considerable risk of another infectious
A variety of factors have been put forward as allegedly disease emerging, building up testing capacity is essential to
facilitating a pandemic. For example, the separation of human ensuring our preparedness.
development and the natural world has grown too narrow. It is Second, although the obedient nature of Japanese
believed that the excessive bulldozing of forests has led to a citizens is believed to be helping prop up a medical system on
growing number of opportunities for direct interactions between the verge of collapse as the vast majority of citizens have been
humans and wild animals, where previously habitats had been remarkably willing to respect the voluntary “Stay Home”
segregated. The resulting exchange of the infectious viruses protocols during the state of emergency, this trait has also
they host has allegedly caused certain types of viruses to created a negative effect, such as excessive peer pressure.
evolve to acquire human-to-human transmission capabilities. Because of that, lamentable incidents of discrimination and
Also, global warming serves as a major risk factor. There is prejudice have also been reported from some corners of
an undeniable possibility that the viable habitat of pathological society.
organisms responsible for tropical and subtropical infectious
Yamamoto: So, the pandemic has revealed both positive and
diseases will expand going forward. We cannot know when the
negative aspects of the unique Japanese character, has it?
next pandemic will occur, nor can we determine if or when
another novel pathological organism will emerge. Due to the Tateda: That’s right. It is important to learn lessons from what
increasing globalization of our society, a regional outbreak of we have experienced during the pandemic, be it success or
an infectious disease can quickly spread globally, just as we failure, to ensure our preparedness for the next crisis. We
have witnessed. Therefore, I consider ensuring thoroughgoing should not be content with merely getting through the current
pandemic countermeasures to be a matter of crucial crisis. Rather, we should be focusing on how to upgrade our
importance. As the spread of the novel coronavirus is still structure going forward. This will, in turn, help us acquire
ongoing in regions around the world, human society will be genuine resilience. Also, an endeavor of this kind must be
forced to continue the grueling battle against this infectious carried out via collaboration involving industry, the government
Taking advantage of in-house and external collaboration, disease for the time being. and academia.
Yamamoto: Dr. Tateda, could you elaborate on your thoughts on
we will deliver genuinely meaningful changes how we should counter this situation?
in society to fulfill our responsibilities
in light of the coming new normal. Rebuilding the Business Portfolio
Tateda: When the novel coronavirus first emerged, people had In order to genuinely protect the well-being of citizens,
Dr. Kazuhiro Tateda Manabu Yamamoto Hideki Takahashi been overly afraid of it as it was a totally unknown virus. Since
then, however, specialist insights about the virus have become
economic activities and infection countermeasures must go
hand in hand. I consider it a matter of the utmost importance.
Professor, Department of Microbiology Representative Director, President & CEO, Executive Officer, Life Innovation Division,
ever more robust. Accordingly, it is time to consider how to I assume that, in the midst of the pandemic crisis,
and Infectious Diseases, Denka Company Limited Denka Company Limited
Toho University School of Medicine sustain economic activities while simultaneously preventing the business corporations are similarly being called upon to identify
spread of infection. Due to the drastic deterioration of the economy, a business model capable of simultaneously achieving
■ Facilitator:
a growing number of people are losing their jobs and struggling profitability and contributing to people and society as a whole.
Mr. Nobuyasu Tanaka
to maintain their livelihoods. We must face this harsh reality, too. This seems to be an important challenge they are currently
Senior Managing Executive Officer and Chief of Corporate Planning Division, Sun Messe Co.,Ltd.
Representative Director, Sun Messe Innovative Network Center (Sinc)
In this section, we present excerpts from a discussion Dr. Kazuhiro Tateda
・Professor, Department of Microbiology and Infectious
with Dr. Kazuhiro Tateda, a professor at Toho University
Diseases, Toho University School of Medicine
School of Medicine who also serves as president of the ・President, the Japanese Association for Infectious
Japanese Association for Infectious Diseases and is a Diseases
member of the government-led Expert Meeting on the ・President, the Japanese Society for Clinical Microbiology
Novel Coronavirus Disease Control. We invited Dr. ・Member of the Expert Meeting on the Novel Coronavirus
Disease Control under the auspices of Cabinet
Tateda to join us in dialogue in order to glean his
Secretariat Headquarters for Novel Coronavirus Disease
insights into the role Denka should fulfill in a society Control
undergoing drastic changes influenced by the novel In his efforts to disseminate accurate knowledge of
coronavirus pandemic. infectious diseases and countermeasures against
them, Dr. Tateda has appeared on television on a
number of occasions and contributes to newspaper
articles.
17 18Value Creation
Dialogue with an External Specialist
Speaking in general of the nature of Japanese people, used for detecting such viruses as influenza virus, to develop believe that our ongoing efforts to assist medical practitioners
they can be extremely sensitive to risk; but they also tend to the testing kit. and to support the well-being of patients will naturally position
quickly stop being vigilant once a crisis has passed. I think In the healthcare field, there must be considerable latent us to simultaneously achieve profit while contributing to society.
Japanese people are not so good at changing their mode of need for innovative pharmaceuticals and medical equipment. I
behavior based on takeaways from a crisis.
Tateda: In the field of medicine, a great number of papers have
been issued right after major crises by specialists in countries
abroad. This phenomenon is typically accompanied by a Identifying New Value to Be Delivered to Society
growing momentum of technological advances and the
introduction of more sophisticated methodologies. In contrast,
through Our Existing Operations
Japanese specialists seem to focus mainly on implementing
robust countermeasures during crises.
Yamamoto: Denka believes that corporate growth matters only
By the way, business contribution to the preservation of
if it also entails the fulfillment of the Company’s social
the global environment is becoming the subject of growing
responsibilities. In line with this belief, we have positioned the
public expectation. This issue is also relevant to the prevention
United Nations Sustainable Development Goals (SDGs) as the
of infectious disease pandemics. In this context, what are Mr.
compass guiding our management approach centered on
Yamamoto’s views on the positioning of Japanese corporations
addressing ESG issues. Furthermore, the third of the SDGs,
among their global peers in terms of technological capabilities?
Manabu Yamamoto, Representative Director, President & CEO “Good Health and Well-Being,” coincides with our mission,
I have heard about Denka’s R&D efforts aimed at creating a
which, as Mr. Takahashi discussed, has been upheld by Group
variety of environment-friendly products, such as bioplastics.
expected to tackle. Is it correct? employees for many years, even before the formulation of the
Yamamoto: Many Japanese corporations boast a high level of SDGs. Because of this, I consider the shared sense of mission
Yamamoto: Exactly. If we were to suspend our production and
environmental technologies even compared with their global among them to constitute an extremely valuable asset and
sales activities altogether, we may be able to completely
peers. While the pandemic has revealed the weakness of expect it to support our efforts to become a company that is
eliminate the possibility of the spread of infection within our
globalized economic activities, businesses today are facing a genuinely capable of fulfilling its social responsibilities.
organization. However, such a precipitous move would amount
growing shift in customer requirements from quantity to quality.
to stopping the Company’s breath. It would simply cause Tateda: I understand why you are proud of Group employees
To adapt to this change amid times like these, we need to
Denka’s operations to cease. Instead, we are striving to and what they have accomplished. I also assume that a sense
rebuild our product portfolio by raising the proportion of Hideki Takahashi, Executive Officer, Life Innovation Division
embrace innovative working styles while redefining our mode of of mission has significantly helped them realize their potential
specialty grades that are resilient against changes in the
operations in a way that focuses on what is truly essential, as whether they engage in research, development or other duties.
external environment.
we seek to adapt to the new lifestyle and social norms brought Yamamoto: Not only do I give credit to employees for their Takahashi: Specifically, the formulation of a “Health Tech
about by the pandemic. dedication, I also appreciate the cooperation and support Working Group” to be charged with interdepartmental
offered by external specialists like Mr. Tateda and others from assignments is now under way. Pharmaceuticals and medical
academia and government agencies. Denka has been able to equipment, which require official approval, are not the only
achieve the growth it has thanks to long-cultivated ties and things needed by frontline medical practitioners. We assume
Responding to the Pandemic Crisis in Ways That Fulfill Denka’s lasting collaboration with people it has worked hand in hand
with in R&D activities. In addition to meeting the expectations of
that there must be other areas in which Denka can bring
solutions via the use of its materials, technologies and sales
Responsibilities and Live up to Its Pride in Manufacturing our shareholders, we will continuously strive to live up to the channels. Based on this assumption, we engage in information
trust of the aforementioned stakeholders in the course of sharing with and proposals targeting medical practitioners.
corporate activities. In these ways, we will play our part in
Tateda: If you take a close look at medical front lines, you will
Yamamoto: To date, the Denka Group has responded to Yamamoto: We have positioned our healthcare-related industry-government-academia collaboration aimed at creating
come up with good ideas based on an accurate understanding
infectious disease pandemics by delivering a timely and steady operations as one of the three priority fields that are subject to and delivering solutions in the fields of medicine and infectious
of what is needed. Although a growing trend toward
supply of vaccines and diagnostic reagents. In doing so, we focused management resource allocations. To strengthen and disease prevention.
cross-sector collaboration and interdisciplinary research is
have been helping the general public prevent the spread of expand these operations, in April 2020 we merged Denka Tateda: It is important to have a partner with whom you can similarly affecting the medical field, succeeding in these
infectious diseases for 70 years. Thanks to our involvement in Seiken Co., Ltd., a subsidiary, into Denka Company Limited. work toward a shared goal. Moreover, working in tandem with endeavors is, in reality, not easy at all. Collaboration of this kind
these operations, our colleagues across the Group are well Although this move was already determined prior to the partners from a broad range of sectors will help you speed up does not occur naturally. Rather, it needs someone actively
aware of their responsibilities to “protect people’s lives and emergence of the novel coronavirus pandemic, the merger your endeavor. In addition, chemistry arising from external working to facilitate it. I have great expectations regarding
well-being.” This is one reason why I am proud of them. helped us swiftly make decisions and respond to the pandemic. collaboration may help to generate unconventional ideas. Based Denka’s spontaneous efforts to facilitate chemistry arising from
Recently, we restarted shipping diethyl malonate, reviving on my experience as a researcher, inspirational insights often collaboration. As a medical specialist, I find Denka’s initiative to
Takahashi: Amid the pandemic, Denka’s Life Innovation Division
our production lines, which had lain dormant for three years, spring from teams of individuals who have differing ways of be quite promising and will gladly offer my endorsement.
has been operating with a strong sense of mission to practice a
upon a government request to supply the raw material for thinking, rather than homogeneous teams in which everyone Lastly, I have only one request of Denka. I would like the
policy of “respecting the dignity of life and protecting people’s
Avigan , an anti-virus drug expected to help treat novel thinks in the same way. Company to keep working with medical specialists like me and
health to remain a company deserving of society’s trust.” This
coronavirus infection. Although we had only six weeks until the play its part in contributing to the well-being of patients. I hope
also represents a mission upheld by and taken over from Denka Yamamoto: In line with the Denka Value-Up management plan,
scheduled date of first shipment, none of frontline operators to deliver new solutions at the earliest possible date by working
Seiken. we aim to become a “Specialty-Fusion Company.” In this
were opposed to the Company’s decision or balked at this in tandem with Denka and other businesses as well as
The development of our rapid diagnostic testing kit for regard, the merger of Denka Seiken is expected to better
challenge. As Denka is only domestic manufacturer capable of governmental agencies. I believe that by doing so, we will be
detecting the novel coronavirus antigen was launched in position us to utilize an even broader range of technologies and
producing this substance, everyone knew that this task was able to see a breakthrough greater than what can be achieved
February 2020, several months before we obtained official realize innovation. In addition, vigorous engagement in in-house
uniquely bestowed upon it. by academia alone. Looking ahead, I expect the Company to
approval for manufacture and sale in August. As this testing kit and external collaboration is a requirement for a company
Tateda: That sounds wonderful. I think that employee is intended to support doctors in private practice who have no make even greater social contributions by taking full advantage
aiming to grow sustainably. This approach is essential to swiftly
aspirations supporting Denka’s concerted efforts to contribute access to costly diagnostic equipment but are often asked to of its abundant potential in the fields of medicine and infectious
effecting changes. To this end, we are currently developing a
to society should be known to a broader range of the general quickly perform clinical diagnoses of patients with fevers, we disease prevention.
new framework supporting collaboration.
public. employed the immunochromato-method, a popular method (September 17, 2020 at Denka’s Head Office)
19 20You can also read
