TonenGeneral Sekiyu / EMG Marketing / Tonen Chemical Corporation
W Building, 1-8-15 Konan, Minato-ku, Tokyo 108-8005
June 2012
Introduction
The TonenGeneral Group
In June 2012, TonenGeneral Sekiyu K.K. and EMG Marketing Godo Kaisha (formerly ExxonMobil Yugen Kaisha)
began operations as part of a new integrated production and sales group owned primarily by Japanese
shareholders.
The significance of the restructuring can be better understood by looking back at the Group’s 120-year history.
Standard Oil Company of New York (Socony) opened its first Japanese branch in Yokohama in 1893 to import
and sell kerosene at a time when kerosene lamps were still used for lighting. Vacuum Oil Company also opened a
branch in Yokohama that same year. Vacuum Oil’s high-grade lubricants and technical services were factors in
bringing Japan’s textile spinning industry to world prominence. The eventual sale of petroleum products under
the Esso and Mobil brands also originated with Socony and Vacuum Oil.
Meanwhile, domestic oil companies established Toa Nenryo Kogyo in 1939 through joint capital investment to
manufacture aviation gasoline and aviation lubricants, then regarded as high-tech products. Toa Nenryo Kogyo,
an oil refining company, founded Tonen Sekiyu Kagaku in 1960 to expand its business into the petrochemical
industry during the high-growth period of the Japanese economy.
Another event that contributed to our history was the establishment of General Bussan, originally the fuel
department of Mitsui & Co. until it was made independent with the dissolution of the zaibatsu conglomerates in
1947. The company later became involved in petroleum refining and the sale of petroleum products under the
General brand.
These three strands of our history came together with the formation of the ExxonMobil Japan Group in 2000.
However, the ExxonMobil Japan Group had a complicated capital structure: ExxonMobil Yugen Kaisha was
wholly owned by ExxonMobil, while TonenGeneral Sekiyu, listed on the First Section of the Tokyo Stock
Exchange, was partially (50.02%) owned by ExxonMobil Yugen Kaisha.
The new TonenGeneral Group was created in June 2012 to respond to these circumstances by integrating
refining and sales with TonenGeneral Sekiyu at its core. What had been a global organization divided vertically
by function and operation was transformed into an integrated, self-sufficient organization within Japan.
This evolution also means the Group has shifted to primarily Japanese ownership after having been foreign-owned
for the majority of its existence. The Group now has the most efficient management structure in its 120-year history.
Since the foundation of the ExxonMobil Japan Group, we have learned and witnessed firsthand what a global
company should be.
The expertise obtained from our past experience is the essence of our organization. Into this, we have integrated
a management style suitable for the Japanese market. With a global knowledge base, the new Group is capable
of responding to market needs faster than ever before.
Leveraging the world’s most advanced technology and expertise, the new TonenGeneral Group strives to provide
superior services grounded in actual conditions in Japan, as we continue to provide a stable supply of petroleum
and petrochemical products. Thank you for your continued support.
June 1, 2012
2
EMG Marketing Godo Kaisha
TonenGeneral Sekiyu K.K.
President
Representative Director, President
TonenGeneral Sekiyu K.K.
Jun Mutoh
Tonen Chemical Corporation
President
TonenGeneral Sekiyu K.K.
Representative Director, Vice President
Director
Takashi Hirose
Yasushi Onoda
3
Management Policy
Pursuing the benefits of a new structure while
maintaining our good practices
Effective management policy maintained
Our goals under the new structure
• Continuing flawless operations
The Group policy of maintaining our industry-leading
safety and environmental record while continuing
flawless business operations remains unchanged.
• Integrated management of production and sales
Greater integration of production and sales
operations results in closer coordination among
departments, enabling efficient management that
can respond quickly to changes in the domestic
business environment.
• Consistent business management
We have maintained our consistent business
management basics including high standards of
corporate ethics, effective corporate governance
and performance and transparent financial
reporting.
• Rigorous financial discipline
We continue to apply stringent investment
standards and pursue self-help efforts as we strive
to improve efficiency and maintain our healthy
financial foundation.
• Fostering outstanding human resources
We are proud of our highly capable employees,
who maintain a strong sense of responsibility and
ethics. We remain committed to fostering
outstanding human resources.
• Shareholder-focused management
We have maintained our shareholder-focused
management policy ensuring superior
competitiveness and capital efficiency to provide
stable dividends.
Main consolidated/affiliated companies (as of June 1, 2012)
100%
100%
TonenGeneral Sekiyu K.K.
TonenTechonology Godo Kaisha
Use of fuel brands
TonenGeneral Kaiun Yugen Kaisha
100%
50%
Lubricants business alliance
• Use of Mobil brands (e.g. Mobil 1)
• Production and quality control
technology
• Joint research and development
• Use of ExxonMobil’s global network
for products and base oils
Tonen Chemical Corporation
25%
• Expansion of our stable operating base
We continue to produce stable revenues and cash
flow through the combination of petroleum refining,
petrochemical and fuels marketing businesses,
enabling the base for implemention of the above
initiatives.
Continued collaboration with ExxonMobil
Chuo Sekiyu Hanbai K.K.
75%
Nippon Unicar Company Limited
Tonen Chemical Nasu Corporation
35%
99%
4
100%
• Greater competitiveness
We seek investment opportunities that suit the
Japanese business environment to strengthen cost
competitiveness and expand earning opportunities.
We also participate in joint marketing with domestic
business partners to strengthen our competitive
edge in marketing petroleum products. We are also
promoting greater cooperation with other
companies at petrochemical complexes and
effective investment in energy conservation
measures.
Technical support
Shimizu LNG Co., Ltd.
EMG Marketing Godo Kaisha
50%
Kyokuto Petroleum Industries Godo Kaisha
Consolidated subsidiary
• Refining
• Chemicals
• Management system
Supply cooperation
• Crude oil
• Feedstocks
• Product import and export
Equity method affiliate
5
Corporate History
Integrated refining and marketing operations as
a Japanese company after 120 years
Ⅰ
1893
Vacuum Oil (U.S.)
Japan branch
Overview of capital restructuring
Socony (U.S.)
Japan branch
As demand for kerosene and lubricants
increased, Socony and Vacuum Oil
opened Japanese branches in
Yokohama in 1893. Prewar
1932
Socony-Vacuum (U.S.)
Japan branch
1934
Stanvac (U.S.)
Japan branch
TonenGeneral Sekiyu acquired 99% of EMG Marketing Godo Kaisha (the former
ExxonMobil Yugen Kaisha), entering into a new partnership with ExxonMobil.
ExxonMobil remained the principal shareholder with 80 million shares in
TonenGeneral Sekiyu.
Then
General shareholders
Now
ExxonMobil
General shareholders
ExxonMobil
80 million shares
49.5% (approx.)
ⅠI
World War II
and postwar
Toa Nenryo Kogyo K.K.
(changed to Tonen K.K. in 1989)
1939
1947
General Bussan
Partnership between
Toa Nenryo Kogyo and Stanvac
1949
1958
ⅠII
General Sekiyu
Japan’s era of
rapid growth
Mobil Sekiyu K.K.
50.5% (approx.)
99%
Directly owned
1%
EMG Marketing G.K.
Indirectly owned
Note: Percentages (%) denote voting rights.
TonenGeneral Group
In 1963, Mobil Sekiyu and Mitsui Oil
invested equally in the establishment of
Kyokuto Petroleum Industries, a
petroleum refining specialist.
TonenGeneral Sekiyu
Petroleum refining,
production & sales of
petrochemical products
Kawasaki, Sakai and Wakayama Refineries
Tonen Chemical: Kawasaki Plant
EMG Marketing
Kyokuto Petroleum Industries:
Chiba Refinery
50%
Esso Sekiyu K.K.
TonenGeneral
Sekiyu K.K.
2000
With the merger of Exxon and Mobil in
1999, the Japanese companies they
had invested in were also restructured.
Fuels marketing
Tonen and General Sekiyu merged to
become TonenGeneral Sekiyu.
Lubricants
ExxonMobil
Yugen Kaisha
V
Capital restructuring of
TonenGeneral Sekiyu
and ExxonMobil
Yugen Kaisha
TonenGeneral Sekiyu K.K.
Esso Sekiyu and Mobil Sekiyu were
established with the dissolution of
Stanvac.
Kyokuto Petroleum
Industries K.K.
ⅠV
2002
22% (approx.)
ExxonMobil Yugen Kaisha
TonenGeneral Sekiyu K.K.
Toa Nenryo Kogyo formed a partnership
with Stanvac to introduce Standard Oil
technology. Stanvac acquired 51% of
Toa’s shares (later reduced to 50%).
Distribution
Restructuring of the
ExxonMobil Group
78% (approx.)
100%
The new structure allows for the integrated management of production and sales as shown
below.
Esso Standard
Sekiyu K.K.
1963
1982
As a result of the dissolution of zaibatsu
groups in Japan, the fuel department of
Mitsui & Co., Ltd. went independent as
General Bussan (later General Sekiyu K.K.)
and was certified as a motouri.
Tonen Sekiyu Kagaku
(now Tonen Chemical
Corporation)
1960
1961
In 1939, Toa Nenryo Kogyo was
founded jointly by eight Japanese
petroleum companies to produce
aviation gasoline and lubricants.
1 terminal
(Shimizu)
Wakayama Lube Oil
Blending Plant
8 terminals
(Including Shiogama, Nagoya and Fukuoka)
Tsurumi Lube Oil Blending Plant
ExxonMobil Yugen Kaisha became
EMG Marketing Godo Kaisha.
2012
Kyokuto Petroleum
Industries (G.K.)
EMG Marketing (G.K.)
TonenGeneral Group
Integrated management as the
TonenGeneral Group with TonenGeneral
Sekiyu’s acquisition of 99% of EMG
Marketing Godo Kaisha shares.
Note: (G.K.): Godo Kaisha
6
7
Business Overview
Bringing the best to Japan
The TonenGeneral Group maintains a petroleum supply chain from the transport and refining of
crude oil to the manufacture, distribution and sale of products.
P10-13
Crude oil transport
Crude oil used by the
Group is transported safely
and efficiently from various
regions including the
Middle East, Russia, West
Africa, Australia and
Southeast Asia to our four
refineries in Japan.
Refining and
manufacturing
With safety as our highest
priority, our refineries and
chemical plants produce
LPG, gasoline, naphtha,
kerosene, diesel oil and
other petroleum products,
as well as chemical
products, at low cost using
advanced refining and
production technology and
rigorous quality control
systems.
P14-21
Distribution
Sales
Petroleum and
petrochemical products
produced at our
refineries are transferred
to various regions and
distributed to customers.
We are committed to
safe and efficient
operations.
Our service stations
make full use of
ExxonMobil’s expertise.
They provide fuels,
lubricants,
petrochemical products
and services of the
highest global standards
to meet the needs of our
customers.
Research and engineering
TonenGeneral Research Center specializes in research
and development for lubricants and fuels
Since its establishment more than 70 years ago, our laboratory has
developed a number of advanced, high-performance lubricant
products. Through joint research with auto manufacturers we offer
passenger vehicle lubricants that can improve fuel efficiency,
reliability and ease of use. We also offer differentiated products that
contribute to the development of environmental technologies for
automobiles. We work with ExxonMobil in lubricant research and
development.
In fuels, we continuously seek sound, science-based solutions for fuel
quality issues and energy-related challenges. This leads to our active
engagement in joint research and study programs funded by the
industry and the government from the planning phases. Based on
these activities, we proactively make recommendations to related
industries and to the government. We also provide technical support
in fuel quality and performance to our refineries and fuels marketing
segment.
The TonenGeneral Group imports the optimal mix of crude oils and feedstocks from around the
world. We efficiently produce a wide range of petroleum and petrochemical products at oil
refineries in Japan and export some of these products overseas. We also maintain an integrated
supply chain of importing, refining and manufacturing through to distribution, sales and exporting.
We apply the world’s most advanced technologies and expertise to all of our business activities to
bring the best to Japanese consumers.
8
Engineering operations performed by our process
engineering division
The Group regards engineering as a pillar of our corporate activities.
Our engineering division has specialists in process, equipment and
project-related technical fields. These specialists plan and carry out
projects using the latest information on domestic and global
technology as well as technological support from ExxonMobil. Our
engineers are committed to ensuring the safe, reliable and
high-performance operation of existing facilities.
9
Refining & Manufacturing
Safety-focused, low-cost production system
for fuels, lubricants and chemicals
One of Japan’s largest refineries
Kawasaki Refinery
Kawasaki Refinery is located on the Keihin oceanfront, a
convenient land and sea transport site adjacent to the Tokyo
metropolitan area, Japan’s largest consumer market. Kawasaki
Refinery is our largest refinery with one of the highest refining
capacities in the country. It also has the largest FCC (fluid
catalytic cracker) in Japan and the only H-Oil (heavy oil
cracking/desulfurization unit) in the country.
The refinery is situated on the same site as the Tonen Chemical
Corporation plant, enabling mutual product supply, sharing of
facilities and organizational integration for a highly efficient
production system.
Refineries and terminals
Shiogama
Terminal
Fushiki Terminal
Kyokuto
Petroleum:
Chiba Refinery
Sakai Refinery
Hiroshima Terminal
Fukuoka Terminal
Kawasaki Refinery
Shimizu Terminal
Nagoya Terminal
Alkylation
unit
Distillation
column
Hydrodesulfurization
unit
Crude oil
Atmospheric pipestill
The fundamental role of our production segment is
to manufacture petroleum and petrochemical
products from the world’s best crude oil and
intermediate products at our four refineries in Japan.
With safety as our highest priority, we continue to
pursue greater added value as we carry out our
crude procurement and product export operations.
Manufacturing process
LPG
Catalytic
reformer
Benzene
extraction unit
Kerosene/diesel
hydrodesulfurization
unit
Gasoline, naphtha,
xylene, etc.
• Automotive fuel
• Chemical feedstocks
Kerosene/
jet fuel
• Fuel for kerosene heaters
• Jet fuel
Diesel
Fuel oil A
• Bus/truck fuel
• Fuel for small marine vessels
Fuel oil C
• Industrial fuel
• Fuel for power generation
• Marine fuel
FCC gasoline
desulfurization unit
Vacuum gas oil
desulfurization unit
Vacuum
pipestill
Fluid catalytic
cracker (FCC)
Heavy oil cracking/
desulfurization unit (H-Oil)
• Fuel for portable gas stoves
• Taxi fuel
• Chemical feedstocks
Common petroleum
products
Wakayama Refinery
Komatsushima Terminal
10
Miyazaki Terminal
Takamatsu Terminal
11
Refining & Manufacturing
Largest, highly energy-efficient
production and shipping base
in western Japan
Integrated production center provides flexible
support for global and domestic needs
Sakai Refinery
Wakayama Refinery is located in a quiet residential district
adjacent to the rich fishing waters of the Kii Channel in a
region known for the production of Arida tangerines. In
these surroundings, the refinery maintains the world’s
highest level of operational safety with the utmost attention
to environmental protection.
The refinery, which has a long history, is an integrated
production center for a number of petroleum products
including gasoline, lubricants and aromatics in addition to
special products such as aviation and automotive test fuels.
Taking advantage of its large number of tanks and its
marine shipment facilities located in a good harbor, the
refinery makes a great contribution to domestic energy
supply while responding flexibly to export needs.
Sakai Refinery is located in the Sakai-Senboku
coastal industrial area in Osaka, the largest
consumer market in western Japan.
In addition to refining, this integrated site
also manufactures chemical products such as paraxylene and
propylene.
The refinery also pursues synergy effects with the supply of
feedstocks via pipeline to and from other companies’ refineries in
the same industrial complex.
At the shipping terminal, the largest of its kind in the Kansai area,
the first bottom loading system in Japan has been implemented for
better environmental protection, improved safety and faster loading.
With one of the best energy efficiency ratings in Japan, the
refinery maintains a competitive edge thanks to its excellent
location as well as its environmentally conscious, safe and
efficient facilities and operations.
12
Wakayama Refinery
Chiba Refinery (Kyokuto
Petroleum Industries)
Wakayama Refinery Lube
Oil Blending Plant
This refinery is located in an industrial
complex in the Keiyo region. Kyokuto
Petroleum Industries is a limited
company established with equal
investment by the TonenGeneral
Group and Mitsui Oil.
This plant blends base oil produced
at Wakayama Refinery with
additives to produce
lubricants, which it puts in
drums, pails and other
containers for shipment.
13
Fuels Marketing
Trusted Brands: Esso, Mobil and General
Retail
The TonenGeneral Group carries out common
initiatives nationwide for the Esso, Mobil and
General brands to provide customers with a
stable supply of quality petroleum products at
reasonable prices. We are also leading the
industry in the expansion of self-service stations
and differentiating our services with ingeniously
designed service stations under the Express
brand. We continue to operate our service
stations with attention to environmental and safety
considerations while accurately responding to
customers’ ever-changing expectations.
Standard Oil created the Esso oval in
1933. The name “Esso” was coined
by spelling out the pronunciation of
the initials S and O.
The TonenGeneral Group’s business is supported by
trusted brands. We also offer a wide range of services
that provide flexible support for society’s needs. We
supply a variety of reliable products including fuels,
LPG, lubricants and chemicals. One of the Group’s
strengths is adopting the world’s best practices with
the motto “Customers Come First”.
14
West Japan Branch
The red and blue General logo was
created in 1967. Symbolizing the
blazing energy and speediness of a
wing, it expresses a sense of power
suitable for the image of an oil
company.
Sapporo
Satellite Office
Sales Centers
Osaka Branch No.1 & No.2
The bright blue logo with the letter O
in red was created in 1966. It is highly
visible even from long distances and
is perceived as a symbol of trust,
energy, enthusiasm and action.
East Japan
Branch
Tokyo Branch
No.1 & No.2
Nagoya Branch
Takamatsu Satellite Office
Hiroshima Satellite Office
15
Fuels Marketing
Self-service Express brand
Industrial & wholesales
Express self-service stations operate under the concept of
the quickest, easiest service in the cleanest, most
comfortable facilities. For the further evolution of our brand
value, we boost the tangible and intangible aspects of our
service by enhancing sales promotion programs, improving
customer service and ensuring clean environments at our
service stations.
16
In our industrial & wholesales segment, we provide a
stable supply of industrial fuels, LPG and other products
at competitive prices. We also continue to hold seminars
focusing on human resource development, a challenge
we share with our dealers.
Convenience of Express
Synergy Card
We implement a range of initiatives to
maintain and strengthen the top
brand position of Express, which
customers support more than any
other brand.
This personal-use credit card can be used at
Esso, Mobil and General service stations. It
provides a variety of special offers based on
amount of purchases, including discounts on
fuel and an annual fee waiver service.
Speedpass
Express Wash
Seven-Eleven
ExxonMobil’s original payment device that can
be used at affiliated service stations. Refueling
or car wash operations can be initiated by
simply holding the device over the panel
attached to the pump or car wash. It’s a fast and
secure way to complete payments.
Express Wash is equipped with a uniformlydesigned, easy-to-use operation panel. The
innovative drive-through car wash, based on a
foam jet design, is highly acclaimed by
customers.
We operate alliance sites with Seven-Eleven
Japan, a top brand and leader in the
convenience store industry. These sites offer
convenience to our customers while also
creating a new brand image for self-service
stations.
Video Pump
Mobil 1 Center
Doutor Coffee Shops
These fuel pumps feature high-luminance color
LCD touch panels. The menu screen displays
self-service operation guides and also enables
car wash reservations or orders to Doutor Coffee
Shops located on the same sites.
At Mobil 1 Centers, professional service station
staff provide quick and convenient oil change
service. Customers can choose from a variety of
oils, including Mobil 1, our synthetic engine oil.
We operate alliance sites with Doutor Coffee
Shop, which has strong brand power. The sites
provide customers with quality services and
convenience, including original seasonal
products and clean, appealing store environments.
Industrial fuels
LPG
We sell a wide range of products manufactured
from crude oil through distribution channels
other than service stations. For example, we
supply diesel oil mainly to public transport
operators and the logistics industry. Kerosene
and fuel oil A are now not only used for heating,
but are more increasingly supplied to
cogeneration systems at plants and hospitals.
Fuel oil C is used as a heat source for boilers at
thermal power stations and plants and also as
fuel for large marine vessels.
The former General Sekiyu (now TonenGeneral
Sekiyu) was the first Japanese company to
import LPG products from the Middle East,
paving the way for increased LPG consumption
in Japan. Kawasaki, Sakai and Wakayama
Refineries are the main centers for supplying
LPG to bottling terminals and industrial plants
nationwide.
Kawasaki and Sakai Refineries, both located
close to major markets, have their own import
terminals, contributing to a stable supply of LPG.
Marine fuel
Aviation fuel
We have supply bases in Tokyo and Osaka Bays, Japan’s
two key bay areas. These bases provide a stable supply of
high-grade fuels produced at the Group’s adjacent
refineries. Our quality control team strives to maintain
consistent product quality.
The Group provides high-quality aviation fuels and
customer services. Along with our outstanding operations
at airports, we supply aviation fuels, mainly jet fuel, to major
domestic and international airlines and public authorities.
17
Lubricants & Specialties
Consolidation of world-class technologies
High-grade oils
The Group offers an extensive lineup of oils, including the
synthetic engine oil Mobil 1, to meet the needs of our
customers in automotive, industrial, aviation and marine
applications.
Automotive lubricants
Aviation and marine lubricants
Industrial lubricants
Base oil and specialties
Mobil-brand industrial lubricants have led lubricant technology for
over 100 years. Our vast expertise and experience achieved
through research in this field are used extensively to develop
lubricants designed for advanced industrial machinery. Such
lubricants make great contributions to improved equipment
productivity and energy conservation.
Striving to improve productivity and conserve energy, we have
created the synthetic lubricant Mobil SHC using leading-edge
technology. Mobil-brand industrial lubricants, which provide
superior technological support and are recommended by major
international machinery manufacturers, demonstrate their strong
performance particularly in the manufacturing and electricity
industries, including wind power generation.
Through our strategic partnership with ExxonMobil, we produce
high value-added specialty products using an advanced quality
control system. We work with the refining department to ship wax
products nationwide, while making active efforts to expand exports
to global markets. We export base oils mainly to Asia via
ExxonMobil’s distribution channels.
Mobil-brand lubricants supported technological evolution even
before the first gasoline engine was invented. Mobil has played
important roles in a number of famous historical events: the Wright
brothers' first flight, space station launches and Formula One
engines from the very first to the latest models. Mobil automotive
lubricants meet the latest standards set by API (American
Petroleum Institute), ILSAC (International Lubricant Standardization
and Approval Committee), ACEA (European Automobile
Manufacturers Association) and other organizations and protect
engines effectively to help vehicles achieve the best performance
in all situations from routine car maintenance to use in harsh
conditions. Mobil 1, in particular, is a synthetic engine oil
manufactured using high-performance base oil and advanced
additive technology, and continues to be the oil of choice for
customers around the world. In addition to the domestic sale of
Mobil-brand automotive lubricants like Mobil 1, we are also
involved in the joint development of next-generation products with
major Japanese auto manufacturers to supply high-quality oils to
better meet the latest needs of customers.
18
In our lubricants and specialties segment, we sell automotive
lubricants with world-class brand power earned through our
support of Formula One and other initiatives. Other products
include industrial lubricants recommended by major international
machinery manufacturers, aviation and marine lubricants that
support the supply of high-quality products through a reliable
technical support system and base oil and specialty products
manufactured and sold in cooperation with our refining segment.
Mobil 1 is an automotive lubricant used as a factory fill oil by
major international auto manufacturers.
Plants
Mobil and Exxon brand high-grade aviation and marine lubricants
are used throughout the world and quality service is provided to
customers in Japan by the Group. We supply a wide variety of
aviation lubricants, including engine oil, hydraulic oil and grease
designed for aircraft. With a range of technical support to offer, we
have earned the trust of customers all over the world. Our
products, recommended by engine and airframe manufacturers,
contribute to safe aircraft operation.
We supply domestic marine customers with a range of lubricants
from engine oil and hydraulic oil to gear oil and grease. Our quality
products and services, including synthetic oils that help reduce
the total cost of vessel operation, meet the needs of our
customers.
For international marine customers in Japan, the Group offers
sales and technical support services through a strategic
partnership with ExxonMobil, making a significant contribution to
safe, efficient vessel operation.
Tsurumi Lube Oil Blending Plant
Tsurumi Lube
Oil Blending Plant
Wakayama Lube
Oil Blending Plant
Located in the northeastern part of Yokohama, the heart of
the Keihin industrial area, this lube plant is within the greater
Tokyo metropolitan area, Japan’s largest consumer market.
The plant specializes in lubricants for passenger vehicles
and various types of machinery. It carries out coordinated
operations from manufacturing to delivery. Mobil 1, a
synthetic engine oil, is one of the key products shipped from
this plant. Through cooperation with neighboring companies,
we also make efforts to preserve the environment and
improve safety, while actively participating in a variety of
community-based activities.
19
Chemicals
Competitive product range through integrated
operations with refining
Quality chemicals are indispensable for end products
used in every aspect of our lives, from automotive
products to cosmetics. We contribute to society as a whole
by providing a stable supply of quality chemicals not only
to the domestic market but also to the rapidly growing
Asian market.
Basic chemicals
With our competitive edge based on synergy with petroleum
refining, we provide both the domestic and regional markets with a
stable supply of olefins (ethylene, propylene, butadiene, etc.),
which are the building blocks of chemical materials used in aircraft
and automobile parts, electric and electronic components, food
packaging and household items, along with aromatics
(paraxylene, ortho-xylene, benzene, etc.) used as components in
polyester fiber, PET bottles and nylon fiber.
Petroleum resins
We manufacture and sell both hydrogenated and non-hydrogenated
petroleum resins. Our products, with excellent cold resistance,
heat stability, adhesiveness, transparency and gas barrier
properties, demonstrate high functionality that meets the needs of
our customers. Our products are used for a wide range of
applications including industrial adhesives, high-performance
tapes, fuel-efficient tires and disposable diapers. Demand is
expected to increase significantly, especially in developing
countries.
Specialty chemicals
Methyl ethyl ketone, a highly soluble and functional chemical, is
used for a number of applications in diverse fields, ranging from
solvents for paint and printing ink and resin treatment for
electronic components to film molding for optical panels and
chemical process solvents. Hydrocarbon solvent, which is
manufactured in the petroleum refining facilities, is added to car
paint, agricultural chemicals, metalworking oil and other products.
Such specialty chemicals work behind the scenes to enhance the
convenience of our lives.
Our chemical plants are located on the same sites as
our refineries, where they can readily obtain
refinery-produced feedstocks for their manufacturing
operations. The synergy generated by the integration
of our chemical and refining operations enables
TonenGeneral Sekiyu and Tonen Chemical to maintain
strong cost competitiveness in the chemicals market.
20
Refineries
Sakai Refinery
Kawasaki
Refinery
Wakayama Refinery
21
Corporate Social Responsibility
Contributing to society as a good corporate citizen
Safety
The Group introduced the Operations Integrity
Management System (OIMS) in the 1990’s as its safety,
health and environment management system and has been
implementing improvements ever since. In 2000, the Group
also introduced the Loss Prevention System (LPS), which
focuses on human behavior to prevent losses
(human-related injuries, damage to equipment and assets,
etc.) caused by unsafe actions. LPS has produced
significant results in our daily activities.
Health
The Group appoints industrial physicians and industrial
hygienists to assess potential adverse factors scientifically
and takes appropriate measures to minimize any impact on
the health of employees and contractors as well as on the
communities in which it operates.
Workplace
• Human resource development
Fair and subjective performance evaluations are vital for
human resource development.
Our managers and employees share the responsibility of
managing the progress of short-term operational goals
and creating long-term career plans, as well as drawing
up and carrying out training plans through regular
communication.
• Diversity
In rapidly changing times, strong creativity and ideas
based on diversity are essential for the sustainable
development of any company. The Group respects the
individuality of every employee and strives to provide a
workplace that can maximize their talents. The Group
also promotes the active recruitment of female
employees, who have established their own internal
activity network.
The TonenGeneral Group believes that a company is also a
member of society. Therefore, we strive to be a good corporate
citizen in every community in which we operate. It is very
important for the Group to contribute to the development and
vitalization of these communities, while maintaining high
standards of corporate conduct and complying with all
applicable laws and regulations.
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Corporate Social Responsibility
Corporate governance
Environmental activities
Social contributions
The Group complies with all applicable laws and regulations
and operates its business through sound corporate
governance, as we believe the methods used to achieve
business results are as important as the results themselves.
The Group’s policies for conducting its business operations
are clearly stipulated in its Standards of Business Conduct,
which contains 16 basic policies and various guidelines.
The Group uses the word “controls” as a general term
meaning the direction, management or supervision of a
range of business activities. We constantly monitor our
compliance status through a thorough controls structure
using two controls systems: the System of Management
Control (SMC) and the Controls Integrity Management
System (CIMS).
• Environmental policies
The Group maintains the highest level of responsibility for
all environmental aspects of its operations. Under the
slogan “Protect Tomorrow. Today.”, we strive to eliminate
incidents that impact the environment and continuously
improve our environmental performance while meeting all
environment-related legal requirements.
The Group believes that it has the very important social
responsibility of providing a stable supply of energy,
maintaining safety and trust and further contributing to the
development and vitalization of the communities where we
operate. Based on this concept, we deepen cooperation
with communities through a variety of social contribution
and cultural activities in fields such as environmental
preservation, health and welfare, regional exchange,
education, the arts and culture. Examples of some of these
activities include:
• Environmental business planning
Our refineries, chemical plants and distribution segment
create annual environmental business plans to achieve
their goals. They review the results of previous plans,
predict future environmental and business situations
based on current circumstances, assess public issues
and regulatory trends and create capital investment
plans that require concrete short- and long-term planning
for environmental preservation.
Head office:
Children’s Culture Award and Music Awards
Kawasaki Refinery:
Blood drive
Job Shadow program
Sakai Refinery:
Sakai City Opera dress rehearsal concert
• Addressing climate change risks
We have always made innovative, industry-leading efforts
in energy conservation initiatives at our refineries and
chemical plants. As a result, the Group’s refinery energy
consumption unit (oil equivalent energy volume used per
CDU equivalent throughput) is consistently among the
best in the industry.
Charity Run
Changes in energy consumption unit at three
TonenGeneral Group refineries
11
10.9
9
Rate of improvement
since 1990: 14.2%
8.58
9.07
7.78
7
1990
2000
Unit energy consumption
=
at refineries
Wakayama Refinery:
Petroleum industry average
Tangerine orchard patrol
Low
Efficiency
Three TonenGeneral Group
refineries
Phoenix Tennis School
Support for the Tonen International Scholarship Foundation
and General Sekiyu Research and Development
Encouragement and Assistance Foundation
High
2010
Energy consumption
(oil equivalent, KL)
Throughput
(CDU equivalent, thousand KL)
Kansai Refining and Sales:
Adopt Forest Nijozan
Voluntary beach cleanup
(Forest conservation activity on Mount Nijo in
Taishi-cho, Osaka)
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Corporate Social Responsibility
Support for areas affected by the Great East Japan Earthquake
Immediately after the Great East Japan Earthquake struck in March 2011, the Group acted in
accordance with the disaster response plan for the entire organization. Specifically, the Group promptly
set up emergency headquarters to ensure the safety of employees and their families in affected areas,
established a secure system to supply petroleum products, formed a joint support network with the
government and the industry and then put all these measures into practice.
• Prompt recovery of the product supply system
After the earthquake, all oil supply facilities on the Pacific
coastline in the Tohoku region were temporarily out of
operation. The Group, however, took immediate action to
restore the Shiogama terminal in Miyagi Prefecture.
Consequently, it took only nine days after the earthquake to
resume shipment of petroleum products. The terminal played
an important role as a fuel supply hub for the Tohoku region
and was also used by other oil companies.
• Emergency shipments of fuel in drums
In response to a request from the Ministry of Economy, Trade
and Industry, the Group shipped 1,000 drums of gasoline,
diesel and kerosene (200 liters per drum) from the Wakayama
Refinery to the disaster-stricken region from March 19 to 25.
The fuels, shipped from filling facilities at the refinery, were
first transported by land to the Air Self-Defense Force’s Iruma
Base. From there, they were flown to evacuation centers in
areas suffering from severe fuel shortages due to the disaster.
• Installation of a temporary service station
For more than one month after the quake, no service stations
were in operation in Rikuzentakata in Iwate Prefecture. With
the assistance of the Ministry of Economy, Trade and Industry
and the Fire and Disaster Management Agency, the Group
installed an unprecedented type of temporary service station
using containers normally employed to transport specialty
chemicals. The temporary service station was completed on
April 21 and handed over free of charge to the city of
Rikuzentakata the following day to serve the community as a
fuel supply center.
• Donation of 1 million liters of fuel
The Group donated 100,000 fuel coupons to about 30 local
governments in Iwate, Miyagi and Fukushima, the three
prefectures most affected by the disaster, as a way of
providing direct support to victims in the affected areas.
Coupons could be exchanged for 10 liters of gasoline, diesel
or kerosene at Group service stations. Local governments
distributed the coupons in the most effective way according
to their own requirements.
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