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ENVIRONMENTAL REPORT 2004AISIN AW

ENVIRONMEREPORT 200

AISIN AW

Greetings

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Corporate Philosophy, Policies and Objectives

Acquisition of ISO 14001

Environmental Education and Training

Environmental Accounting

1.

2.

3.

4.

5.

1.1.

1.2.

1.3.

1.4.

Automatic Transmissions (A/T)

ECUs for A/Ts (Electronic Control Unit)

Navigation Systems

EV (Electric Vehicle) Drive Systems

Air Purifiers

Initiatives for reducing use of environmentally harmful substances

2.1.

2.2.

2.3.

2.4.

2.5.

2.6.

Production Processes

Equipment Initiatives

Improvements in Packaging

Remanufacturing

Energy Conservation

Waste Reduction

3.1.

3.2.

3.3.

3.4.

3.5.

3.6.

Cooperation with Suppliers and Group Companies

Management of Chemicals

Dealing with Soil and Groundwater Problems

Air Quality Efforts

Water Quality Efforts

Noise Pollution Efforts

Greening Initiatives

4.1.

4.2.

4.3.

4.4.

4.5.

4.6.

4.7.

Corporate Citizen Activities

Safety and Health Activities

5.1.

5.2.

Environmental Performance Data

Company Outline

CONTENTS

NTAL4

04

A I S I N A W E N V I R O N M E N T A L R E P O R T

In January 2004, AISIN AW became the first exclusive manufacturer of automatic trans-missions to reach a cumulative production volume of 50 million transmissions. Looking back over 35 years of automatic transmission development, it is clear to me that our un-compromising pursuit of compact size, light weight, and high efficiency has enabled us to bring to market transmissions that combine power performance with fuel efficiency and re-source-saving design characteristics, helping AW to make a meaningful contribution to a so-ciety that stays earth-friendly even as it becomes automobile-centric. During the same peri-od of time we were able to capitalize on our tradition of quality and innovation to intro-duce new products such as the 6-speed automatic transmission, the continuously variable transmission (CVT), and hybrid systems. Not content to rest on past accomplishments, to-day our entire company is hard at work designing the next wave of AW products... and the next.

In manufacturing technology, AW has pursued space- and energy-saving, flexible, and high-speed processing technologies as part of its ongoing and revolutionary effort to make earth-friendly production systems a reality. You may have seen some of these technologies on tele-vision, such as the Dream Carrier non-powered transport dolly, the development of which was inspired by an Edo-period mechanism used in making moving dolls. In the future, AW is committed to strengthening the triple aspects of manufacturing-product design, process de-sign, and production-even as it continues to develop the component technologies that drive innovations such as the Dream Carrier. This wide-ranging effort will be characterized by a comprehensive and intensive focus of all facets of AW's production system, including techni-ques, equipment, logistics, and inventory.

AISIN AW is also dedicated to increasing its contribution to a recycling-based society. De-termined to continue in our role as one of the world's leading companies, we hope to bring all employees together in an aggressive campaign to promote environmentally friendly man-ufacturing and to pursue a new technology development process that is informed by a com-prehensive understanding of the product life cycle, from product development and design through production, sale, disposal, and recycling.

I hope that this Environmental Report helps you to gain an understanding of the concrete environmental conservation initiatives being pursued by AISIN AW, as well as of the fu-ture directions in which we anticipate those programs to develop. This report will have served its purpose if it helps encourage more effective communication with regional residents and society at large.

Takao TaniguchiPresident

AISIN AW Co., LtdOctober 2004

Greetings

05

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A I S I N A W E N V I R O N M E N T A L R E P O R T 2 0 0 4

1

06

������� ����� �We aim to better serve our customers and contribute to society,

while, at the same time, continuously growing our company.We can only achieve this through having a body of outstanding people

who are motivated and fulfilled by their work.Therefore, our people are our most valuable asset.

���� � �� ���� ������ ��� �� ��� ����������Respect the culture and laws of all the countries in which we carry out business.

At the same time, we pledge to respect the environment in all our business activitiesand in every product we develop.

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A I S I N A W E N V I R O N M E N T A L R E P O R T

Satisfaction ofour employees

Satisfaction ofour customers

Respect forother culturesand forthe environment

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07

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*1 Although overall figures exceeded targets due to increases in production volumes, basic units are decreasing.

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Down 25% (from 1998 level) Down 14% (from 1998 level)

Down 60% (from 1999 level) Down 79% (from 1999 level)

1. Energy conservation (CO2 index)

2. Reduced emission of substances subject to the PRTR Law

Complete O-ring engineering changes Completed O-ring engineering changes

3. Reduction of environmentally harmful substances in products

Down 9.0% (from 2000 level) Down 10.6% (from 2000 level)

Down 45% (from 2000 level)

7. Reduction of energy consumed in distribution (CO2 index)

8. Reduction in use of packaging  materials

Down 45% (from 2000 level)

Continued zero emissions

Down 20% (from 2000 level)

4. Reduction of landfilled waste

5. Reduction of incinerated waste Down 33% (from 2000 level)

Down 7% (from 2001 level) Down 7% (from 2001 level)

Down 15% (from 1998 level)

Down 81% (from 1999 level)

Continue zero emissions

Complete transition to lead-free O-rings

Down 11.5% (from 2000 level)

Down 47% (from 2000 level)

Down 61% (from 2000 level)

Down 15% (from 2001 level)6. Reduction of material loss

Succeeded in continuing zero emissions

Management Principles

Long-term management visionLong-term management plans

1-year management plans

Organizational ActivitiesBusiness plans for each department

Implementation of activitiesInternal

EnvironmentalAudits

Effectiveness verification

Environmental Policies

Objectives and targets

Annual goals and targets

Annual environmentalactivity plans

Environment Committee

Energy Subcommittee

Material Loss Reduction Subcommittee

Chemical Reduction Subcommittee

Distribution Rationalization Subcommittee

Packaging Material Reduction Subcommittee

Subcommittee to Reduce EnvironmentallyHarmful Substances in Products

Waste & Recycling SubcommitteeExecutive Committee

Company Audit

To put our environmental policies effectively into practice, actions are taken as organizational activities in the policy man-agement system. Items that are especially important to business activities are carefully discussed in each subcommittee of the Environment Committee. Activities applicable to the entire organization are carried out in all the departments and sec-tions of AISIN AW. The Environment Committee comprehensively monitors and assesses the achievements of our environ-mental protection activities.

AISIN AW implements an Environmental Management System that is geared to all the company's business activities, from development

through to sales; it sets objectives and targets based on this Environmental Policy; and it works to make continual improvements to its En-

vironmental Management System through regularly reviews, as it implements the system according to plan.

AISIN AW complies with all applicable environmental regulations enacted by national and local governments (laws and regulations, pollu-

tion control agreements, etc.) and with all other requirements to which the company commits. It also actively implements measures to

prevent pollution.

AISIN AW strives to make effective use of natural resources and energy, and actively implements measures to minimize use of environ-

mentally harmful substances.

AISIN AW clearly documents its Environmental Policy and ensures that all employees are thoroughly conversant with its details. It also ur-

ges them to act on the letter and spirit of the policy.

AISIN AW publishes details of its environmental conservation activities, including its Environmental Policy.

1.

2.

3.

4.

5.

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08

At least once a year we conduct our own internal environmental audits of every department to check

that our environmental management system is being effectively implemented.

Management andmanagement

representative incharge of environmental

management

ISO 14001Implementation

OfficeAudit Team All Departments

(Review and orderchanges) Annual plans Conduct audit

Report result Summarizeaudit results

(Implementcorrective actions)

ISO 14001 Certificate of Registration

1.2

A I S I N A W E N V I R O N M E N T A L R E P O R T

AISIN AW acquired ISO 14001 certification for all departments on July 24, 1999, including the Head Plant

and Machine & Equipment Department (both in Anjo City), Okazaki Plant (Okazaki City), Tahara Plant (Tahara

City) and AWQUIS JAPAN Co., Ltd. (Takahama City)

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01997

18

1998

127

1999

175

2000 2001

211

50

100

150

200

250

300

350

400

223

2002 2003

230

332

2004

382�������

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09

1.3

Aimed at: Main details

New employees

Fundamentals of environmental protection

Environmental policies of AISIN AW

Importance of observing rules

Newly appointed management supervisors

Environmental problems

Environmental management procedures

Roles and responsibilities of workers

Workers in environment-related facilities

Operation and checking

Maintenance

Dealing with abnormalities and emergencies

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Performing internal environmental audits is essential for ensuring the success of

an environmental management system.

We provide continuous training for our internal environmental auditors to improve the quality of audits.

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Workers in environment-related facilities: Workers who are either directly involved in activities that impact onthe environment or who work in facilities that have an impact on it.

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1. Business costs

2.

3. Management costs

4. R&D costs

5. Social costs

6. Environmental harm costs

1.9 billion yen

900 million yen

100 million yen

2.8 billion yen

100 million yen

(Note 1)- 

5.8 billion yen

Preventing pollution, e.g. air, water and soil pollution

Energy saving

Recycling and waste disposal

Collecting and remanufacturing products, recycling packaging

Operating EMS, environmental education, environmental monitoring and measuring

Research and development to reduce environmental burdens

Nature protection and tree planting

Repairing environmental pollution damage

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Global warming prevention

Waste reduction

(Note 2) 5,500c-t

(Note 3) 6,200ton

400 million yen

1 billion yen

1.4 billion yen

Reduction of CO2 emissions

Selling recyclable materials (scrap, oil, etc.)

Total

Total

Note 2: Reduction compared to the previous yearNote 3: Total quantity of recyclable materials sold for the year

Note 1: - denotes less than 100 million yen

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A I S I N A W E N V I R O N M E N T A L R E P O R T

Upstream and downstream costs

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Partial estimates were used in the calculations of capital investments and research and development expen-ses where objectives are difficult to classify precisely into environmental and non-environmental categories.

Calculations are limited to substantive benefits that are conducive to well-grounded calculation.

11

2A I S I N A W E N V I R O N M E N T A L R E P O R T 2 0 0 4

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2.1

A I S I N A W E N V I R O N M E N T A L R E P O R T

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The new 6-speed automatic transmission received the Economy, Trade and Industry Minister's Prize at the 17th Chunichi Industrial Technology Awards in recognition of its advanced technological level and energy-saving characteristics.

By incorporating a system to prevent wasteful idling while stopped with the transmission in the "D" position, AISIN AW was able to realize further improvements in vehicle fuel efficiency, reaching 25 kilometers per liter in mixed city and highway driving.

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When the vehicle is stopped in the “D” range, this control moves the gear toward the neutral position and reduces the engine load.

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Differential ratio3.266

Differential ratio3.615

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Firstgear

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Thirdgear

Fourthgear

Fifthgear

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*1 CVT: Continuous Variable Transmission  *2 FWD: Front Wheel Drive  *3 RWD: Rear Wheel Drive

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More compact and lightweight ECUs

ECU with integrated neutral safety switch (N.S.SW.)

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The lengths of the harnesses between the automatic transmission and the ECU and between the vehicle and the ECU have been dramatically reduced.

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14

���������� ��� �2.3

A I S I N A W E N V I R O N M E N T A L R E P O R T

As AISIN AW continues its development of computerized voice navigation systems, it is trying

to identify all parts that contain substances that pose a risk to the environment. Whenever we

find such parts, we actively work to find alternatives that do not contain pollutants (e.g. parts

not containing lead in their terminals). AISIN AW is working to eliminate the use of hexavalent

chromium in 2004. Also, to eliminate lead from soldering processes, we are currently testing

and evaluating alternative substances to ensure that they can reliably withstand the harshest

conditions for installation in automobiles. AISIN AW began mass production of electronic con-

trol board models using lead-free solder in the spring of 2004, signaling the first product to

use only lead-free solder. The company is committed to actively pursing the use of lead-free

solder in the products it will be developing in the future.

Voice navigation systems can make a significant contribution to improving the fuel economy

of cars, because they allow drivers to reach their destinations easily via the most efficient

routes. Furthermore, they can save precious time and fuel by protecting drivers from losing

their way and wandering aimlessly. Our car navigation systems also include support for VICS

(Vehicle Information and Communication System). This function also improves fuel economy,

by giving drivers access to information that helps them to avoid traffic jams.

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15

2.4

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Urban driving 10-15 mode

FY 1999 Report on Medium toLong-term Diffusion Plans for ElectricVehicles(Japan Electric Vehicle Association)

EV (rechargingefficiency 70%)

Gasoline vehicle

+12.9% (2.2 times)

Better

Energy efficiency

10.8%

23.7%

We have been developing compact, highly

efficient drive systems for EVs by combining

our experience and know-how as a special-

ized maker of automatic transmissions with

state-of-the-art motor technology. Our first EV

Drive System was used in a four-wheel elec-

tric car in 1986. In 1993 we supplied EV

Drive Systems for Toyota's CROWN MAJES-

TA EV. Then in 1998, we produced the

unique EV Drive System for Toyota's "e-com,"

a revolutionary ultra compact EV. In 2000, we

supplied our EV Drive Systems for COMS, a

single-seater EV marketed by ARACO Cor-

poration.

In addition to EV Drive Systems, we are also

developing drive systems for hybrid (gaso-

line-electric) vehicles, which are drawing

widespread attention as a viable, environ-

mentally friendly alternative to conventional

gasoline vehicles.

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�������� �� ��� ������� �������� �� ������ ������ �� ��� �� ������ ��� ��������� �� ����� ������ �������� ���

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16

An e���� ���� ����� �� � ����� �����

Ultra Small EV Drive System(used in the Toyota“e·com”)

IPM motor

3-shaft reductioncounter gear

Diff gear

COMS is a four-wheel single-seater EV by ARACO Corporation. It

has been on the market since 2000. It offers a maximum speed of

50km/h and a range of 80km per electric charge (at a constant

speed of 30km/h). The vehicle is being used for a wide range of

purposes, including private transport, e.g. commuting to work or

school, and commercial use, e.g. as a delivery vehicle.

AISIN AW developed the drive system (wheel motors and motor

controller) of the COMS.

The in-wheel motor drive system makes use of motors fitted in-

side the wheel housings to drive the wheels directly. (Each wheel

functions as a motor.) This design eliminates the need for a drive

shaft and differential gears, thereby enabling improved transmis-

sion efficiency as well as improved driving performance, since

the left and right wheels can be independently controlled. It also

provides for greater luggage capacity.

Photo of motor and controller

Drawing of the vehicle's

build -in drive system

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Controller Wheel motor

A I S I N A W E N V I R O N M E N T A L R E P O R T

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This EV Drive System combines an ultra-small motor, a single-speed counter gear-type trans-

mission and differential gears in one remarkably compact package that fits in the smallest vehi-

cles.

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17

●The dual system is a new type of hybrid system that combines the best features of the series and parallel hybrid systems. Optimal engine operation and brake energy regeneration enables this system to achieve very high fuel efficiency. The drive and generation motors and inverters are all housed together in the transaxle for a more compact design.

●This system is slated to be used in the Ford Escape, which is scheduled to go on sale at the end of summer 2004.

Announcement article from the New York Auto Show Photo of dual system

���� ��� �� �� � ���� � ��� ������ �����

Ford introduced the first hybrid SUV mass-

produced in North America, the 2005 Escape

Hybrid, which will go on sale in late summer

2004. The company also says that it will follow the

compact gasoline/electric Escape Hybrid with two

other environmentally friendly products - a 2007

Mercury Mariner hybrid, a sister vehicle to the

Escape, and a yet-unnamed hybrid midsize car

later in the decade. The five-passenger Escape

Hybrid is being touted as the "most fuel-efficient

SUV in the world," with the ability to get about 38

mpg and travel 576 miles on the contents of its

15-gallon tank.

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18

2.5

In 1998, AISIN AW developed the Air Navi air

cleaner, which removes harmful gasses such as

formaldehyde as well as unpleasant odors from

the air in homes.

In addition to the typical ability to clean indoor

air that you would expect of any air cleaner, the

Air Navi provides functionality to clean fresh out-

door air that is brought into the home, removing

dust, pollen, and harmful gasses.

Starting in March 2004, AISIN AW began deliv-

ering the Air Navi Ⅱ to Toyota Home. The new

model inherits the outdoor air cleaning function-

ality of the original Air Navi while adding a more

compact, lightweight design featuring a re-

duced number of parts (see Figure 1).

The two models have seen combined sales to-

taling 18,000 units (as of May 2004).

AISIN AW has worked hard to develop high-per-

formance filters in order to enhance device ca-

pabilities, collaborating with Toyota Central R&D

Labs, Inc., to develop Photo/Platinum Filter tech-

nology that uses a combination of photocata-

lysts and platinum catalysts to deliver dramati-

cally increased filtration performance. Capable

of completely breaking down formaldehyde at

room temperature, the new filter is used in AISIN

AW's Air Navi Ⅱ. (See Figures 2 and 3.)

�������� ��������� �� �� � ��Ⅱ�

�������� � � ������ ���� ����� �������� ����� � � ���� ������

A I S I N A W E N V I R O N M E N T A L R E P O R T

�� � �� ������� �� ������ ���������� ���� ����������� ������������ �� ���������� ��� ��������� ���� �����

��� ��� ������ ��� ����� ��� �����

The demand for healthy, comfortable

spaces is no longer limited to houses and is

beginning to spread to automobile interiors

as well. AISIN AW is currently working to

develop an air cleaning filter suitable for

use in automobiles that can eliminate not

only odors such as cigarette smoke that

originate inside the vehicle, but also harm-

ful gasses that seep in from outside and

low-concentration smells like the distinctive

odor that characterizes a new car.

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Absorption

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Photo-platinum catalyst filter

Absorption

BreakdownBreakdown

Photo-platinumcatalyst filter

Photo-platinumcatalyst filter

inside air

Purifiedair

outside air

Dust filter

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100

50

030 60 90

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19

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AISIN AW is working to reduce the levels of hexavalent chromium, cadmium, mercury, lead, and other harmful

substances that are targeted for regulation by European End-of-Life Vehicle (ELV) directives.

���������� �� ������ )��� &������� &��#��#+��� ,������ -&+,. ����������

●'�/������� ��������

AISIN AW is working in partnership with automakers to reduce the use of hexavalent chromium. In 2004,

the company began the switch to trivalent chromium and anticipates completing this transition by the end

of 2005.

●�������

AISIN AW eliminated the use of solder containing cadmium in oil temperature switch contacts and satellite

navigation motor commutators in 2002, and inside throttle cabling in 2003. Cadmium is currently found in

no company products.

●+���

In 2003, AISIN AW completed a transition away from the use of lead in four areas, including rubber gasket

adhesives, vinyl sleeves for aluminum electrolytic capacitors, and level markings on fluid dipsticks. The

company further plans to eliminate the use of lead in acrylic rubber used in O-rings and aluminum bearings

in 2004. Development efforts are currently underway to eliminate the use of lead in free-cutting aluminum to

the extent prescribed by relevant regulations, and the company is proceeding with voluntary efforts to re-

duce the use of lead in solder and copper bearings that fall outside the scope of those regulations.

●0������

Mercury is not currently used in automatic transmissions. The substance is currently used only in satellite

navigation displays, and AISIN AW is working aggressively to establish alternative technologies.

1���� �����������

●�������

AISIN AW abandoned the use of asbestos in friction linings in the 1980s. The company also completed a

transition away from the use of asbestos in neutral switches in 2003.

/02����� ��� 2����������

20

A I S I N A W E N V I R O N M E N T A L R E P O R T

21

A I S I N A W E N V I R O N M E N T A L R E P O R T 2 0 0 4

3����������

22

3.1

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&+, ������� �� �� $-./%� �� ������� �� �� �������� � ��)���� �'������ ��� ��� ���� � � ��� �����������

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AISIN AW is committed to achieving historically unprecedented levels of speed, flexibility, and miniaturization through creative and original approaches and is also working actively to pursue and implement innovations in the production process. Through these efforts, the company's engineers have succeeded in developing produc-tion lines and equipment characterized by dramatically lower CO2 emissions and improved energy efficiency. Below are some examples of projects that embody these accomplishments.

A I S I N A W E N V I R O N M E N T A L R E P O R T

�������� ����� �

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Reducing the number of faciliti

Simplification offacility specifications

Downscaling facilities

Improving facility utilization

Reducing the number of parts

Net shape

Shortening cycle times

Discontinuing or consolidatingmanufacturing processes

Introduce energy-efficient equipment

Make use of chain technologies

Reduce excess (wasted) functionality

Increase line flexibility

Integral molding of presses

Sintering

Cold forging

High-precision casting

High-speed processing

Reduced non-machining times

Development of inexpensivemanufacturing techniques

Module assembly

Assembly center

Non-hydraulic equipment (hydraulic>servo)

*��� &���

A4-size assembly machines

Development of compact processing equipment

General-purpose module-based lines

Mixed-equipment lines

Energy-saving

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23

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● ����� ���� ���� �� �'����� ������� ��

●Dollies were used to transport automatic transmissions

from Process A to Process B, after which they returned to

Process A. Many such dollies were used along the

production line.

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●The new process was inspired by a traditional Japanese doll that used a spring-loaded mechanism to deliver tea to guests.The new dolly is powered by a combination of the weight of the automatic transmission and a spiral spring, effectively replacing the energy used to power the previous dolly with the power of the spring. ●The dolly moves forward as a result of the weight of the automatic

transmission (which is analogous to the cup of tea in the doll's hand, the weight of which propelled the doll towards the guest).

 ●It returns by the power stored in the spring.

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As part of its commitment to saving energy and reducing CO2 emissions, AISIN AW is refocusing on the basics of

manufacturing as it works on the research and development of techniques and equipment throughout the production process.

24

3.2

Main points to implement◎=Very effective ◯=Effective △=Not so effective

Changing machine tool materials

Optimizing cutting conditions

Reducing temperature of cutting edges

Improving materials that are cut

Improving machine tool materials

Improving swarf processing

Reducing wear of cutting tools* Improving the design of machine

tool cutting edges

Carrying out vibration cutting

Increasing machine tool hardness

Adding coatings

Reducing feed rates

Reducing speed

Using higher coolant pressure

Making hardness structure more uniform

Eliminating blow holes

Increasing the toughness of machine tools

Maintaining quality levels (accuracy)

*Reducing wear of cutting toolsExtending the life of cutting tools

Reducing chipping of cutting edges

������������� �� ������ �������� ����� ��������������� ��� �� ������ �������� ������ ���� �������� �������� ������

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A I S I N A W E N V I R O N M E N T A L R E P O R T

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AISIN AW is working to make more efficient use of equipment and reduce energy consumption in its production processes, through the fol-

lowing measures.

●Making cutting tools last longer: all our cutting devices

●Reducing the number of machines and the number of work processes: press equipment, etc.

●Introducing more energy efficient equipment: heat treatment equipment, etc.

Here, we would like to provide an outline of the work we are doing to make our cutting tools last longer in production pro-

cesses. Our aim is to use cutting tools for as long as possible while ensuring that all production work is performed to the

required accuracy. We are tackling this goal according to a plan that specifies the most important measures to implement,

based on the results of the previous fiscal year. We are successfully combining quality assurance with energy conserva-

tion measures through the practice of DRs (design reviews), performed by machine tool makers and the relevant sections

of AISIN AW. (Refer to the outline of measures in the figure below.) Also, to increase the quality and performance of pro-

duction processes and methods, we are doing extensive testing and evaluations, including bench tests, and working to-

wards further improvements. As a result of these kinds of efforts, we have managed to reduce our energy consumption

and CO2 emissions. And by applying the know-how we have acquired to improving new and existing processes, we will

continue cutting energy consumption and CO2 emissions.

10,000 kW/year

1999 result 2000 result

2,856

2,842

0.5% lower

2001 result 2002 result 2002 result

2,837

0.2%lower

2001 result

5,064

0.2%lower

tons/year

1999 result 2000 result

0.4%lower

0.4%lower

5,044

2003 result

0.6%lower

5,012

5,098

5,073

0.5% lower

2,826

2003 result

0.6%lower

2,808

25

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5

1995 1996 1997 1998 1999 20000

25

30Customers

2001 2002 2003 year

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18 18

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19

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8

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26

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For deliveries to our customers in Japan we have long used returnable steel pallets.

However, we have traditionally used disposable corrugated cardboard packaging for

products exported to our overseas customers. When we developed this corrugated

cardboard packaging, it was considered a major advance, because it was lighter,

stronger and cheaper than timber. More recently, after further environmental considera-

tions, we decided to switch to packaging that generated less waste in material resour-

ces. Starting in 1995, we began to develop steel returnable pallets for sea freight. With

the understanding of our customers, we started to introduce these in 1997. Since 2003,

we have been using steel pallets for a total of 15 of our overseas customers.

To use returnable pallets we needed to set up some infrastructure in order to get

pallets back after delivery. For this reason, steel pallets are not ideal for all of our

export markets. In view of this, we developed a new non-returnable steel pallet for

sea freight, with 100 percent recyclable packaging materials. In 1998 we started

to develop this new packaging and by 2003 we were using it for eleven of our

overseas customers. We are now planning to expand use of this packaging to

areas where returnable pallets have proved difficult to use.

We are focused on improving our product packaging through measures to expand the use of returnable pal-

lets and non-returnable steel pallets. Through these measures, we will continue striving for the ideal of zero

waste in packaging.

-./.+ -0 �� ��������� �� �������� ��� ���$� �� �� ��$� ���� ��������� ��� �� ���������1 %� ������� ��� ���������

������������� �� ��������� �� ���� �� ���$� � ����1 2���� �� ������ �� ��� ������� �� ������ ���$� �� �����1

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26

�������������3.4

���� �� ������ ������

�� �� �� ������� �� � ��������

2003:775 units remanufactured

� ����� ����

2003:12,812 units remanufactured

� ���� �����

2003:32,983 units remanufactured

� ��� ���

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��������� �������

User Dealer

Vehicle check and diagnosis

Customer distribution center Remanufacturing basesDisassemble,inspect and remanufacture

Parts recycling

T/C remanufacturingInstall remanufactured A/T

Complaint

Inventory shipmentRemanufactured

OrderOrder

Parts reproduction

������� ����������

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total units

year69 71 73 75 77 79 81 83 85 87 8988 989491 93 030295 97 99 0001

870,266

A I S I N A W E N V I R O N M E N T A L R E P O R T

In a word, it's the automatic transmission recycling business. AISIN AW provides recycled automatic trans-missions at an inexpensive price point for use in repair and replacement of models already in service. The company is contributing to global environmental conservation through its remanufacturing program, reducing waste products and effectively using resources. Three facilities-Orchis Japan (Aichi Prefecture), AWTEC USA (North America), and the AW Europe Service Center (Europe) recover automatic transmissions from the mar-ket and disassemble and repair them, guaranteeing proper functionality.

������������� ���� ���!

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May’96 Commenced A/T remanufacturing with the founding of AW

Started remanufacturing A/Ts forTOYOTA models (’79 to ’89)

Established remanufac-turing plant (Aug.'94)

Opened AWTEC USA(April ’88)

Opened AW Europe Service Center (July ’98)

Introduced returnable containers (Dec. ’99)

Established AWQUIS JAPANCO., LTD. (spun off from AW) (April ’03)

Started T/C remanufacturing (April ’00)

● �)���'�� ������������

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27

Order

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●Our basic approach to energy consumption is focused on improving environmental performance, achieving

greater cost effectiveness, and ensuring a stable energy supply. These three concepts add up to a balanced

use of energy. Collectively we call this the "BEST MIX" of energy use.

●AISIN AW sees the prevention of global warming as consisting of the suppression of CO2 emissions by pro-

moting energy conservation initiatives. The Energy Subcommittee lies at the center of the company's efforts in

this regard, which reflect the internal slogan, "Protecting the global environment is a job for everyone." AISIN

AW has come together to focus on energy conservation.

Energy conservation efforts until now have involved an active commitment to increasing energy efficiency

based on mid- and long-term scenarios that view energy utilization from a broad perspective, starting with the

purchase of energy, proceeding to its use in production processes, and ending with disposal.

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90%

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28

A I S I N A W E N V I R O N M E N T A L R E P O R T

●������ ������������ ����������� �������� �� ������� ��� ��������� �� ���� ����� ����������

●The company conducted educational initiatives including energy conservation contests, energy conservation patrols, and a rededication to

turning off lights during lunch time and between shifts.

●Horizontal development of energy conservation themes shared among production facilities continued this year, including the transition from

the use of electricity to steam to warm washing machines and centralized lubrication equipment, and the installation of inverters onto

hydraulic pumps.

●The company installed a new model production line that emphasizes energy conservation for air at Okazaki Factory, accompanied by an

intensified examination and verification of energy conservation themes.

●����� �� ������ ��� ��� ��� ���� ������ �� � � �� � ! �� � "��� �� �������� ��� ����������� ����

���� ����� ����������# �� �������� �� $��%��� �� ������� ��$ ���� ����� ������������ ��� ������& ��'

��� ������� �� � ������� ������������� ��� ��������� ��������������� � � ��(�)���������� ������ �����# *���

�� � ���� ��� ��������� �� ������������� ������� ���� ���� ��� ���� ����� � " ������� �������� ��

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����� �� ��� "��� ������ ����� �� ��� �� ��� ����$��� ������� � ������������� ��������"�����#

���������� �� �+� !

Solar power Lighting power cost: ▲20% Rooftop greenification Air conditioning costs: ▲10%

Air conditioning with floor vents Energy cost: ▲10%

Factory air conditioning system Energy cost: ▲10%

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SAEA EASA

SA

SAEA

SA

Air conditioner

Office

Previous system "Mixed system"

���� ���� ���� ����

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At least 30℃

Maximum 30℃

At least 30℃

Maximum 30℃

Manufacturing"Displacement ventilation system"

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29

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●�� �������� �� �������� ��� ����������� � ��� ����� �������� ������ �� ��� ��� ��� ���� ������ ���

$��%��� �� ������ ���� ����,������� �� �(������ ��� ��$ ���� ����� ���������' ����� �� �� ��������� ��

� �� ��� ����� ������ ���� �� ��$ ����������� "���� �� ��� ��� ��� ���� ������#

●*�� ������� �� ���� �(������� ������� ������������ �������' $���� ������� ���������� ������

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●�� �������� �� ������ ��� �����)����� �������� �������� �� ������� ������ ������������ �� �(������

���� ��� ��� ���������' ����� �� �� ��������� �� ���������� ������� ������ ������������ �����������

�� ��$ ���� ���' ����������� ��� ������ ������� � ���� �� ������' ���� ����� ������� ������' ���

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Recycled

Incinerated Waste

Landfilled Waste

(Year)19900

4,000

2,000

6,000

8,000

10,000

(Metric tons/year)12,000

1995 1996 1997 1998 1999 2000 2001 2002 2003501

6,801

4597,761

587

6,431

1,167

8,185

580

7,120

850

8,550

547

7,105

1,457

9,109

437

6,405

8,263

1,421

217

6,618

2,241

9,076

225

3,396

3,520

7,141

171

3342

3,818

7,331

3

3,918

5,345

0

2,286

8,294

10,5809,266

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30

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AW

Reuse inside the company Resources

Waste

Recycled

Landfilled waste (Second step)

Incinerated waste (Third step) Disposal outside the company (First step)

Incineration inside the company

"���� #������� ����

Target

65% reduction by 2000(compared to 1995 level)

Zero by the end of 2002

95% reduction by the end of 2005 (compared to 2000 level)

Item

Disposal outside the company

Landfilled waste

Incinerated waste

’95 ~’00 ’01 ’02 ’03 ’04 ’05

First Step

Second Step

Third Step

Achieved

Achieved

Landfilled Waste

Incinerated Waste

4,000

2,000

0

(Metric tons/year)

3,586215

3,371

2,850135

2,715

3,844

3,818

26

2,75710

2,747 1,318

1,316

2

167167

2000 2001 2002 2003 2004 (Year)2005

Dehydrated SludgeWaste Oil

General sludgeWaste Plastic Other

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%���& ��� ����� �����������% ●'�������� ����������� � ����� �� (�)�* (�

1. Improving the extent of recycling through more precise sorting of waste products

2. Promoting efforts to reduce waste volumes by measuring the volume of waste produced at each workplace

%���& ��� ����� �����������% ●����� ��� �������� �� �+�

1. Eliminating sludge by introducing evaporative concentration systems

2. Reducing sludge volume by intro-ducing sludge drying systems

A I S I N A W E N V I R O N M E N T A L R E P O R T

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����� �� ��������� �������' ��� ������ �� ��� ����� ����( )�������� � ����� ������� �������� ������ ���

�����() ��� �������� �� ������ *+++' ��� ����� ����( )�������� ���������� ����� � ��() ��� ���!

����� �����!���� �� ,�� *++*' %��� ������( �� ���� ������ � �������� ��� ����� ����( ����� �� � ��!

���� ��� ������� �� ���� � )������ ��� ���� � ����������� �����')

In keeping with a change in AISIN AW's fiscal year, statistics through 1999 use a fiscal year running from January to December, while statis-tics for 2000 and later are based on a year run-ning from April to March.

53%

6% 7%

10%

24%

31

������ �� ���� ������� ����������

�������� � ��� ������� ����������

●��� ������ ��� To ensure the efficient implementation of zero emission activities, we formed the Zero Emission Team* comprising ten departments and two con-tractors. This team led this entire activity.

●�������� ������� We began publishing Zero Emission News and Red Card in an effort to support planning for improvement of employee awareness of sorting practices.

●������������ � ��������� To ensure that all employees gain a renewed awareness of the value of resources, we made an effort to ensure that waste products became more visible by consolidating the waste sites — which used to be dotted around the outskirts of the factory — in a central location and opening them to view.

●���� ������������ Following the speech on the launch of the Zero Emission Campaign by Managing Director and Chairman of the Environment Committee, full par-ticipation of all staff was initiated. The ideas and suggestions offered by company employees were also utilized. By monitoring on-site progress as well as products with the participation of top man-agement, we have implemented activities that en-able the entire company to function as one.

Zero Emission Campaign

Zero Emission News Red Card

Tour by top management

����� ��������� �� ������� �����!����

●������� �� ��������� ��� ����������� � "����

Note: Achieved zero emissions as of May, 2002.

2001 Office 2002

Okazaki Plant

Head Office Plant

AWQUIS JAPAN Co., Ltd.

Tahara Plant

Machinery & Equipment Department ○

We have adopted company-wide activities to reduce to zero* all wastes that are directly landfilled as of the

end of 2002. This initiative takes into account the shortage of landfill space and the environmental impact of

landfilling waste. As a result, the company as a whole was able to achieve and continues to maintain zero

emissions** since May 2002.*Zero: Defined as a 95% reduction compared to the level for the year 2000**Zero emissions: The amount directly landfilled is zero.

*For efficient planning, we have promoted these activities by dividing the team into a "plant division" and "office technical division."

,��������

600

400

200

0

(Metric tons/year)587 580

547

437

217 225171

3 01995 1996 1997 1998 1999 2000 2001 2002 2003 (Year)

Landfilled Waste

-��.��� ��� !�/��� ������0��/���� .��� ���������,

1��� -����� 2����" (�34�) 5(2(* 6�," ���,"0��� '��/����� 7 89 ������ :���������0��/���� .��� ���������,

In keeping with a change in AISIN AW's fis-cal year, statistics through 1999 use a fiscal year running from January to December, while statistics for 2000 and later are based on a year running from April to March.

32

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This scrap is groundand reused asa roadbed material.

Plastics are ground upand reused as RPF (reductant) for the steel-making furnaces.

Recycled as the raw material forpolyvinyl chloride mats.

Recycled as the raw material for resin products.

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A I S I N A W E N V I R O N M E N T A L R E P O R T

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Before

Endmaterial

After

B���� ��� ����� ��������� �� �� �� �������� � ����

Before After

������: the amount of resources used by al-tering the process method.

�����: promote the reuse to packing and containers, etc.

�������: resources and fuels, etc.

33

A I S I N A W E N V I R O N M E N T A L R E P O R T 2 0 0 4

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A I S I N A W E N V I R O N M E N T A L R E P O R T

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Non-production

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Non-production

At the kickoff of the Joint North American Environmental Initiative

●� ���� ��

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��!�� �� �� ����� ������� �� ��#�� ������ �� ����������� ���������� ���������� �� �� �� ���� ��

��������� ����������� ���� $����� ��� ��!�� ������ ��������� �� ��� �� ����� %���������� �� &��'

�� ����� -��� � / �������

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【)������� �� &�� �� ����� ����� 】

AISIN Seiki Co., Ltd. /Aisin Takaoka Co., Ltd. /Aisin AW Co., Ltd.

01����

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The AISIN Group and the AW Group kicked off a Joint North American Environmental Initiative based on their partnership on May 14, 2004.

35

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$�� ����� �� �������� �� ���#��� ���� �������� �������� �� ������� ����� ����������� ����������

������� ���� ��������� ����� � �� ���������� ����� ����� �� #������ ���� ����� ��� ����� ��������� ��

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The company worked with partners to develop a new, light-weight door mat. PET bottle fibers account for 35% of the weight of the new material.

●0�"���� ����� ����� ������� ����� � ��� �������

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Environmentally friendly recycled mat

On-site inspections

The Ecomark ecological seal of approval

●!���� �� ������� �� �� � �!0 */..* ������ ���� ����

2001

1 Companies

2002

9 Companies

2003

14 CompaniesTargeted suppliers (14 companies)

0

10

(Companies)

$�� ����� � �� ��� ��������5� ����� ���� ���� ��

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Principlesuppliers

(year)

���������� � ���� ���4.2

36

A I S I N A W E N V I R O N M E N T A L R E P O R T

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&��� � � � ������� $� �!��� "����

New chemicals

Examine introduction ofnew chemicals

MSDS

Comprehensive evaluations

No problem

Prob

lem

(Use is banned)

Preliminary checking

RegulationsBanned substances

Influence on human healthand the environment

Effect on human healthEffect on the environment

Effluent treatment test (Approved for use)

Register withMSDS

Chemicals management system

Input stochasticformula

Order materials(Ascertain consumption

quantity)

MSDS information

Total consumptionquantity

Total dischargequantity

Creation ofreport materials

'���� �� ������ � ����� � � �� (�� � ������� � ���� � ��� � � � ����� �� � � (��

� ������� ������� ��� ! ����) �*"*+ �, �� ���� � ������� �� �!��� � � �� �! �� ��������- ����� ��)

� ���� � �� ������� � ! ������� ��� ������� ������ �� � ������� � � ������ ! ������ � � !���� ��

��#��� � � ��� � �� �!� � �������-�*"*+ �, �� ��� ���������� � � ��� ��.�� �� �� � � ��� /

�� �!� �� �� �� 0112) � �������� �� � � ����� � � ���� ���- � �� ��.�� �� ������ � ���� �

���� � ������ � � �� �����- � � ���� ���)

�*"*+ �, �� ������� ! ��� �� �������� ������ � ��� � ������ � ������� � � �� ��#� ! ���� ����

��� ���������� �� ���� ���� ���� �� ������� ! ������ � ����� -

Sections of the company that plan to use new oils or new chemicals will conduct preliminary

checks to evaluate their effects on human health and the environment, based on MSDS. The

Environmental Management Section will then conduct comprehensive evaluations, e.g. waste-

water treatment test. Only substances approved by this section will be used in the company.

AISIN AW has developed a proprietary chemicals management system that enables real-time

summarization and display of substance safety information (based on MSDS data), purchase

restrictions for toxic chemicals (when ordering materials), and quantities of chemicals con-

sumed and discharged by workplace. The company is committed to taking advantage of the

system to reduce toxic chemical use and accelerate the adoption of alternative substances.

37

��� �� ������ � � ������� ������ �� � ���� ��� ������

●������ �� ���� ���� �� !��� �� �!���

●"#���� �������� ������ �� ��# ����������

Chemical Name

0.008

0.3

0.2

1.07

1.5

0.01

46.8

134.6

0.2

288

0.2

546

28.8

2.5

4.0

1.9

12.8

0.3

134.6

287.7

544.5

28.8

46.8

0.2

4.9

1.9

12.8

0.008

5.1

2.2

2-Aminoethanol

Ethylbenzene

Ethylene glycol

Xylene

Dichloropentafluoropropane

Dioxins

Toluene

Benzene

Boron and its compounds

Poly (oxyethylene) alkyl ether

Poly (oxyethylene) nonylphenyl ether

2-(dimethylamino) ethyl methacrylate

GovernmentDecree No.

HandledQuantity

Eliminationand TreatmentQuantity

16

40

43

63

144

179

227

299

304

307

309

318

TransferQuantity

Discharge Quantity

Units: ton(Dioxins unit : mg-TEQ)

WaterAir SoilConsumptionQuantity

*1 *2

������ � � ���� � ! �� "��������� $� �!��� � � "��� � %� ��� ! � �������

Newly appointed group managers are taught about handling

chemical substances from the perspective of work environ-

ment managers. They develop a thorough understanding of

the company's rules and learn how to promote proper safety

practices in their workspaces.

In workplaces that use chemicals such as organic solvents,

our education efforts are aimed at making management prac-

tices better tuned to environmental protection and workers'

health and safety. Both work supervisors and workers attend

these sessions to study and discuss checking procedures

and risk prevention for their workspaces.

��� ��� �� �� ����� ��������

To further reduce the risk of chemicals to human health and the environment, the company will educate employ-

ees about these risks according to their responsibilities.

*1 "Consumption Quantity" is the amount (of the chemical covered by the PRTR Law) that is transformed into other substances as a result of combus-tion or other chemical reaction, or taken out of the plant as a part of products.

*2 "Elimination and Treatment Quantity" is the amount (of the chemical covered by the PRTR Law) that is neutralized or transformed into other substan-ces by chemical treatment or combustion within the plant.

����� �������� ����� ���� �����

���� ���������� ������� ��� ������� ��������� ����

��� �� ������ ��������� � �!��"������ �� #� ��������� ��� ���������� #������ � $�������� � �!� �%

��� ���� �� ��&���� �� ���� ��� $�"��������

38

A I S I N A W E N V I R O N M E N T A L R E P O R T

0.01~0.02 0.03

ND~0.02 0.04

Head Plant Average level Unit: mg/l

0.01~0.02 0.03

ND~0.02 0.04

!�����" #��$ ���� ��� %�����#���� ������� 4.3

��'���������� ������� ��� #��������� (�������

���������� ����������

)�������������� *�� ���

*2

*3

Decontamination in progresshas been used

Past UsageOffice Current Condition Detected substance

cis-1.2-dichloroethylene

none

No influence to soil and surrounding area.has been used

Impact on local Areas

Head Plant

Tahara Plant

Gamagori Plant

Okazaki Plant

Machinery & Equipment Department

AWQUIS JAPAN CO., LTD.

No history of organic chlorine solvent use

No history of organic chlorine solvent use

Gamagori Plant: None of the toxic substances defined in the Agricultural Land-Soil Pollution Prevention Law were detected when AI-SIN AW conducted a site survey in accordance with that act at the time of the plant's acquisition in December 2003. A total volume of 50 liters of trichloroethylene and dichloromethane were used in the cleaning of some molds during the period from 1973 to 1992.These showed that levels of organic chlorine exceeded environ-mental standards only within the compound of our head plant. So we then conducted a more detailed investigation and used the results to develop measures according to a clean-up plan. In addi-tion we reported the pollution to the local government.To clean up the affected areas, we used a vacuum gas extraction method to collect gas from the organic chlorine solvent that had penetrated the soil. The rehabilitation work was completed during FY2000. Our first priority in dealing with ground water problems is to prevent affected water flowing outside the boundary. A pumping well was installed near the boundary of the compound, down-stream of the ground water sources. Here, the ground water is purified using an air stripping method. Along with these efforts, we will continue to measure and continuously monitor the affected soil areas.

AISIN AW's head office began submitting environmental reports to public authorities in January 1999. Since that time it has regularly submitted reports and worked on further countermeasures.Starting in June 2001, the company has been holding informal meetings with local residents and public authorities. At these meetings, which are held periodically each year, AISIN AW provides information about its ongoing efforts to improve soil and groundwater pollution countermeasures.For this fiscal year, the company is holding a meeting in October to provide information concerning groundwater counter-measures and other environmental conservation activities.

*1 Decontamination in progress: Tests showed that contamination levels here exceed environmental standards. These areas are currently undergoing groundwater purification.

*2 Tahara Plant: The chemical 1.1.1-trichloroethane was used at Tahara Plant for measurement for one year before its use was stopped completely in July 1993. However, since this chemical was used and stored on the second floor of the plant, there were no effects on soil and surrounding environment.

*3 Gamagori Plant: None of the toxic substances defined in the Agricultural Land-Soil Pollution Prevention Law were detected when AISIN AW conducted a site survey in accordance with that act at the time of the plant's acquisition in December 2003. A total volume of 50 liters of trichloroethylene and dichloromethane were used in the cleaning of some molds during the period from 1973 to 1992.

Trichloroethylene*1

+����� ��� ���������� *�� �� #������� *�� ��

Groundwater Groundwater Groundwater flow direction

Activated carbon boxActivated carbon box

Vacuum extraction machine

Air flow Organic chlorine gas in soil

BoundaryRaw water tank

OutflowOutflowExhaust air

Exhaust air

The decontamination system we are employing is considered to be one of the most effective methods currently available.

In this method, gas is sucked out from the soil using a vacuum extraction machine, and then adsorbed and eliminated using activated carbon. (Collection was completed by FY2000.)

In this method, polluted ground water is pumped out and brought into contact with air to vaporize the pollutants, which are then adsorbed and eliminated using activated carbon.

#� � � ��� � �,,-" #���$ #% ���!������ ���!!�� ����� ������� � ������ ���'���� � �� !������ ���� ��� ������.����"

��� �� ���� ������ ����� ��� ����� ���� ������ ���� ����� � �� .� �'� ��������� ���� ��� ������.���� ��'�����������

�� ��� ��� !����� . ��� � ��� ���'���� �� ���� ����� %� � �� �������� � � ���� �����'� ��������� �� �� �����������

��� ��� !���� ���� !�������� .�� �������� � ���" ��� ��!�������� �������� �� ��!��� � � ��'���������� �������

ND: Not detected No other organic chlorine chemical substances were detected.

Aeration tower

39

��� ������ ����� 4.4

����������� � ���� ���������� ����������

������������ � ����� �����

�������� ����� ��� ���������

��� ��� �� ������� ��� �������� �� ��� �� ����� ��� �����

� ���� ����� ����������� �

November 30, 2002Complete shut-down of

the incinerator

������� �����

Fluidized-bed incinerator Bag filter dust collection

Adsorbs and eliminates acidic gases,hydrogen chloride gas and dioxin.

HCL

Dxn

700

4.9 Control limit 2003

0.00019

●Exhaust Gas Data

Units for HCL (hydrogen chloride) are mg/m3N; units for Dxn (dioxin) are ng-TEQ/m3N

Decomposes dioxin by re-burningexhaust gases at over 800°C

Adds calcium hydroxideand activated carbon

Head Plant incinerator

Okazaki Plant incinerator

0

tons/year

year

5642

150

1991 1992 1993 1994

����� �� ��� � ���� ��� ����� ���� ������ ���

�� ������ ��� !��������" #���$ #% �� !�������� �������� ��� �� �!������� ��������� �� ��� ����� � � � ���

��� ������" ����������� � � ��� � ����� ���������" ��� ��&��� ��� � ������� �����

To prevent the generation of toxic gases from our incinerators, we have implemented emissions controls.

Through careful combustion control and exhaust gas treatment technology we have eliminated harmful gases

such as hydrogen chloride gas and dioxin, We also conduct continuous measuring and monitoring to ensure

compliance with emission standards.

We completely eliminated the use of CFCs and 1.1.1-Trichloroethane (Methyl chlorfor) at the end of 1993 by

switching to alternatives.

To minimize emissions of SOx we use LNG as the fuel in almost all of our incinerating facilities in the company.

(The only exceptions are the emergency electric generators)

� ��'���������� (��������� #���'�����

Waste Disposal and Public Cleansing LawNon-compliance with “Standards for exhaust gas process-ing facilities” which strengthens the guidelines for control-ling dioxin emissions from industrial waste incinerators.

Outflow

40

A I S I N A W E N V I R O N M E N T A L R E P O R T

����� ������ �������4.5

���������������� ������� ��������� ������� ��� ��� �����

�� ��������������� �� ����! ��������� ��"��� ������� #$��������� %��������������&

'� ��������� � � �� (���� �� �"��� ���"�� ��������� )� ���������� �� ��

����� ������� �������� �� �� ��� ��

m3/day

Industrial waste water

Domestic waste water

2,320

800

704

Head Plant Okazaki Plant

310

Total 3,120 1,014

1,680

Tahara Plant

200

1,880

���!��� ������� ! "���

Denitrification tank Nitrification tankNo. 1

Nitrification tankNo. 2

Ultrafiltration membrane (hollow fiber membrane)

��#�� ��� � ������$� �%������ ������� � ��� �

������ ! "���

Industrial waste water(recycling rate 20%)

Domestic waste water(recycling rate 40%)

������ ! ���� &���� � �� �������� �����

���� � �� ������� ����� �����

� ��!� ��� !' ������ �� ����(� ��� ! ����)

��#�� ��� � ������ ! "�����

(� (����� ! �*���� � ��� (� ������� ! ���������

PH meter

DO meter

MLSS meter

TOC meter

COD meter

Turbidity meter

Total N meter

CondensationTreatment

BiologicalTreatment

TertiaryTreatment

PHAdjustment

Discharge

Facility Toilets

Industrialwater

Domestic wastewater

Industrial wastewater

Water treatment plant

��� ��� ���" ����� ��� ��� ��� �� �� ����� ��������� ����"���"� ��� ������ � ������� �� �������� ��� �� ��

����� �������� ����� � *� ��������! �� ���� �� ������ ��� ��� ����� ��������� ���+ ��� ����� ��������� ��� ��������

��������� ������� �� �"� ����� ��� � ���"�� �� "�� ��+� ��� �! �� ��� ���+��� ���� �� ������� ����� ����"�����

At our Okazaki Plant, which commenced operation in 1999, we have installed water treatment facilities that boast a number of leading-edge technological features, both to prevent water pollution and to use water resources as effi-ciently as possible.

AISIN AW was one of the first companies to install an industrial waste water treatment plant featuring ultrafiltration membrane separation, a technology that can efficiently eliminate both nitrogen and suspention materials(liquids with pieces of solid malters floating in them).

We have boosted our water recycling efficiency by set-ting up separate recycling facilities for industrial and domestic waste water.

All our water treatment processes are monitored us-ing automated measuring systems. All measurement data is conveniently monitored in the Central Monitor-ing Room.

× 100

41

��������� �� � � � ����� �������� �� � ������� � ��� �

P

Treatment Plant

��������� ������� �� ��

AISIN AW has implemented a system to prevent the discharge of oil into rivers. In this system, all the rain-

water in and around plants that is at risk of being contaminated with leaking oil ("specific rainwater areas")

is collected and passed through a water treatment plant.

�� ���� �� ����� �����(mainly roads surrounding plants and plant roofs)For these areas we have installed oil and water separation tanks. The pollution-prevention meas-ures are:

● Collecting all the rainwater● Continuously monitoring the oil membrane (central monitor)● Collecting floating oil

���� � � �� ����� �����

Mainly areas where there is a risk of oil leaks e.g. around oil storage tanks and resource collection sites. For these areas, we have installed a rainwater pit. All rainwater is collected, treated in a wa-ter treatment plant and then released.

�������������� ���������� ���������

42

A I S I N A W E N V I R O N M E N T A L R E P O R T

� ��� � ����� � ��� ���4.6

Plant No. 1

Plant No. 2

Main building

Cogeneration

Laboratory building

Concrete soundproof external wall

Boundary of the premises

Soundproof wall of cogeneration plant

Soundproof box for presses

● ������ � ��� ���������� ������Noise information(2003)

Units: db (A)

Soundproof external plant wall

A

B

C D

Place

Standard limit

60

Measurement value

57

56

58

55

Evaluation

����� ���� ����� �������� �������� ����� ������ �� ��������� ��������� ��� ����� ������� �� �� ��� �� �!�

������ �� �����" �� �� ����� ��� ��� ���������� �� ���!����� ���! ���#����� � ������������ ���� �!� �������

������ �� ��� ���������� �� ���!����� ������ ���� ��� ��� ����� �������" �� �!�� �� � ����!�� ��� � �� ��#

��� �!� ����� �����" ��� �$�� ��" %� ���������� ���� ������� ��������� �� ����������� �� ���� ������ ����#

��� ����� ������������ �� �!� %����� �� ��� ����� �� ������ �!�� ����� ������ ���� ������������� ������#

������

43

�������� ���������4.7

�������� ����� �� �� ����� �� �������

●� �� � �� ��� �� �� � ��� � � �� �� � �� ��������� ●� ����� ���� � �� ����� �� ������ � ������� � � ���� ����●� �� � �� � ������� � � ������� � � ���� ����●� ���� � ��� � ������ ����

Minister for International Trade and Industry Award for the Greening ofIndustrial Facilities

Chief of Agricultural Production Bureau Award for the National FlowerTown Creation Contest

�����

April 1985

June 1985

June 1989

Oct. 1997

Oct. 1998

Nov. 2000

8th Aichi Prefecture Factory Greening Contest Special Prize

President of the Japan Greening Center Award, for greening of industrial plants

Commendation from the Director-General of the Bureau of Nagoya Trade and Industry

Letter of appreciation from the Mayor of Anjo, for contributions to beautifying the environment

Minister for International Trade and Industry Award for the Greening of Industrial Facilities

Chief of Agricultural Production Bureau Award for the National Flower Town Creation Contest

Flower Festival, (which all employees take part in)

Based on the four basic concepts listed above, AISIN AW develops attractive parks and gardens and opens them to the local community; it holds a flower festival with the participation of all employees; it is working to protect natural forest on the company's land; and it is implementing a "five-year greening plan" at all of its plants. In acknowledgement of these efforts we received the following awards:

Employee-built walkway Gathering bamboo shoots in AISIN AW's natural forest

������� �� ����! ���! ����� &!���#�� �������������� �������'

AISIN AW is taking advantage of the natural forest found on its premises to develop programs to let employ-ees get in touch with the green of nature, including the building of a handmade walkway and events such as gathering bamboo shoots.

!"(������������ )��������� ����������

44

A I S I N A W E N V I R O N M E N T A L R E P O R T

45

A I S I N A W E N V I R O N M E N T A L R E P O R T 2 0 0 4

5��� ������

����� ������

46

��������� ����� ������5.1

���� ��������� �� ������ ���������� �� ����� ����������

���� ����� ������

����������� � ������� �������� ����������

A I S I N A W E N V I R O N M E N T A L R E P O R T

Facilities or Events

Parks

Frequency

throughout the year

once a year

once a year

once a year

throughout the year

throughout the year

Details

Open to employees, their families and local residents

All AISIN Charity Concert etc.

Work experience programs for local students etc.

Various events, a charity bazaar, and offers of free bonsai and foliage plants grown by our employees

Inter-company basketball league, community volleyball meets etc.

Community softball meet, Anjo City soccer league etc.

Indoor swimming pool

Harmony Hall

Production plant

Family Festival

Gymnasium

Sports fieldFacilities

other than parks

����� ������

Family Festival All AISIN Charity Concert

�� � ���� �������� ������ !� ����� �� ����������� !��� ��� ����� ����������"

AISIN AW opens all of its facilities and parks to employees, their families and local residents, in order to pro-

mote harmony within surrounding communities. Large numbers of people, from young children through to el-

derly citizens, attend and enjoy themselves at the various events we organize.

Every year, we designate May 30 as "Zero Waste Day." this day we or-

ganize collections of litter and waste around the company's premises as

well as surrounding roads. Company trainees also clean the parabolic

mirrors on local roads. All this work is greatly appreciated by local resi-

dents.

Takahama Citizens Simultaneous cleaning

AISIN AW works with the regional community by participating in the fol-

lowing types of activities.

●Registration into the Okazaki Business Environment ISO (Okazaki City) and promotion of the city’s environmental declaration

●Participation in the ISO liaison meeting of the ISO Business Network (Takahama City) for small and medium-sized businesses

●Holding of the Takahama Citizens’ Citywide Cleaning (Takahama City) twice a year in June and November

47

������ ��� ������ ������5.2

�������� ��������� �� ����� ������

�� �������� ��#��� �� ������ �� � ������� ����� $��� ��%� ��� ��������" �� ��� !��%�� ��

������ � ��#�� ��������� !��%���� &���� � ��� �������� �������� �# �����#��� ��� ��������"

'����#����� �# ��� �������� Create a corporate environment in which our people are encouraged to use their individual abilities to the

full, and in which they are well and fairly rewarded for their contributions.

We are committed to helping our people feel a sense of achievement, as well as find a healthy balance

between their working and personal lives.

����� ����� “Creating a safe, relaxing workplace that harnesses the creative efforts of everyone.”

������� #�� ()**+ ◆No fire accidents ◆No operation-suspending accidents ◆No occupational illnesses

'����� #�� ������� ��#��� �� ������ To achieve our basic policy of “creating a safe, relaxing workplace that harnesses the creative efforts of

everyone,” we are building a system that allows the full participation of all corporate individuals,

from the management to the workers, and promoting various activities for personal safety and health, fire

prevention, and traffic safety.

����� ������

Corporate meetings(quarterly)

Site meetings(statutory) (monthly)

Work group meetings(monthly)

Central Safety andHealth Committee

AW Group(information sharing)

Head OfficeSafety and Health

Committee

◆Plant No. 1◆Plant No. 2◆Main building◆Technical Center◆Development Center◆Test Production Dept.◆Manufacturing Center

Machinery & Equipment OfficeSafety and Health

Committee

Gamagori PlantSafety and

Health Committee

◆Okazaki Plant◆Okazaki Indirect Dept.◆Car Navigation System Production Dept.◆Car Navigation System Technical Dept.

Okazaki OfficeSafety and Health

Committee

◆Tahara Plant No. 1◆Tahara Plant No. 2

Tahara Plant OfficeSafety and Health

Committee

Creative and elaborate activities are developed in each department and workplace.

◆������ ����������������������������

◆ ������������

����� �����������������!��

48

A I S I N A W E N V I R O N M E N T A L R E P O R T

������ � � ��� ���� �� ������

����� ������

●#������������ ���������� ��� ���������� �� ���� ��� $�� �%������ �����Our plants often use AFT oil (torque converter oil) and processing oil; therefore, we place particular emphasis on fire safety. To eliminate fire hazards, we are developing "F-compo-nent management activities." These activities are used to determine the key equipment prone to fire*1, identify the factors that can cause equipment to catch fire, and completely eliminate those factors, and at the same time, conduct inspections, cleaning and other everyday management activities. To ensure quick and safe fire fighting in the case of a fire, we hold periodic company-wide emergency drills, fire emergency training for new employees, and 3-minute on-site fire fighting drills.In addition to working to completely eliminate fire hazards by intensifying fire component management efforts in 2004, AISIN AW is also trying to eliminate combustible materials based on a program of organizing and cleaning workspaces.

��� ���� ��

●&������� ��� '( )����*��� *������� #����� *������Recognizing that in the past a majority of accidents have occurred while rectifying short production line stoppages*2, the company has targeted the issue and is working intensively to address it.These efforts start by recognizing short line stoppages as a hazard. AISIN AW has developed a system for classifying relative danger levels and is working to selectively eradicate the most dangerous. The company has also designed a safety management mechanism to help achieve its goal of eliminating short stoppages and has succeeded in dramatically reducing associated accidents. (Important initiatives include articulating correct rectification procedures and educating and training workers accordingly, as well as maintaining a follow-up system.)Recent years have seen a transition in accident types from accidents occurring during the rectification of short line stoppages to accidents arising from carelessness and involving contact between workers' hands and machinery and parts.In order to eradicate accidents arising from worker carelessness and to awaken a safety awareness in individual employees, AISIN AW management established the AW Five-Part Priority Safety Program.*3 The company is actively promoting voluntary action on the part of workers to exercise ingenuity in the workplace.The company continues to intensify the AW Five-Part Priority Safety Program and is working to ensure its broad adoption. Management patrol

Fire fighting training

�������� �� ����� � ���� ��

�+ ,�� �%������ ���� �� �����

Equipment that generates sparks and equipment that has started small fires in the past is designated as key equipment prone to fire. Currently eight types of equipment are registered.

�� #���� ���� ����$��-��

An event in which a breakdown with a short stop time (such as a parts flow stop) occurs. Trained personnel can re-store operations with an easy fix, but making an incorrect fix, such as making the fix without stopping the equipment, can cause the equipment to abruptly move, creating an accident.

������ � ��� ����

��������� ����� ����

� �! ������ ����

�! ������ ���� held on the 10th, 20th, and 30th of each month

"���� � �������� ���� � � �������

�������������� ����#���

������������� �����

&������� ������ ����� #����� &�� ����� �� ������ ����� ������ ������ �-�������

Displaying cautionary placards to prevent equipment operation by other personnel

.���� ��� ������������������� �� $�

�/��� �! �� $ ���� ������ ������ �������

(   )

①Determining the causes of  short line stoppages②Assessing the risks of  short line stoppages③Promoting measures and  management approaches  based on priority levels assigned  according to short stoppage risk

����� �������� � ��������� �� ����� �

49

������ ������

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In addition to receiving a designated general health examination, all employees

35 and older receive a lifestyle-related disease*4 examination. The examination re-

sults are reflected in the health education, and efforts are made to help improve

and maintain the health of the employees through education and instructions tail-

ored to each employee. Health classes*5 are also periodically held for the pur-

pose of motivating the employees to take voluntary steps to improve their health.

(Treatment)

(Education, examinations)

(Guidance)

(Consultation) (Consultation)

(Consultation)

(Guidance)

(Education)

(Discussion) (Consultation)

(Policy)

������ �� ������� �� ������ ����� ����� ��� ��� �����

��������� ��� ����� �� ���� ��������� �� �����

Health class

�� ��������������� ���������

Illnesses (such as cancer, stroke, or heart disease) result-ing from obesity, high blood pressure, hyperlipidemia and other conditions due to poor lifestyle habits (smoking, drink-ing, eating, and lack of exer-cise).

�� ���� ������

Offered each year as a ten-class course held weekly (on Tuesdays) for all ages and both men and women as a way to motivate the employees to adopt light exercises to im-prove their health. The classes focus mainly on exercise and the instructor also offers advice on nutrition.

����� ����� �� ������ �� ����� � ������

With the cooperation of the industrial health staff (which consists mainly of

industrial physicians), human resources, and administrative supervisors,

mental health care activities are conducted to make the most of the roles

and functions of these individuals. Since 1997, mental health education

has been offered to newly appointed administrative supervisors. Further-

more, listener education*6 has been introduced to help create a workplace

with more efficient communication.

Listener education

�! �������� ��� ������

An important technique for mental health care is listening. The role of the listener is vital to improving communications and relations between individuals in the work-place. To help improve the ability of lis-teners, listener education has been of-fered since 2002 primarily for super-visors.

Public authoritiesManagement

Human resources

Administrative supervisor

FamiliesEmployees

Industrial health staff

Industrial physician

Externalspecialists/organizations

������ �� �� � ��

�"��� ������

'97

300

250

200

150

100

50

0

118

'98

92

'99

45

'00

81

'01

59

'02

215

'03

252

50

A I S I N A W E N V I R O N M E N T A L R E P O R T

����������� ��� ������ ��

���% ��% !�����& #����%'���&� �(���$ &����%)

���% ��$ #�*�&%

7.1

2.6

7.2

0.6

0.3

0.05

5.8

10.0

0.5

7.4

5.9

11

2.0

0.8

ND

ND

0.26

0.3

0.3

ND

0.3

43

15

0.84

6.0~8.0

25(20)

25(20)

30(20)

200

120(60)

16(8)

+���&��� ���% !�����& #����%

'���&� �(���$ &����%)

���% ��$ #�*�&%

Small single-pass boilers 0

43

0.002

25

0.031

0.16

27

0.0003

60

0.008

33

0.057

0.32

31

0.002

1.86

120

3.07

0.10

0.20

144

3.84

0.20

20

35

25.66

0.05

����%

��,� �*���(�

��,� �*���(�

Boilers (coldand hot watergenerators)

Heating furnaces

Aluminiummeltingfurnace

Gas tarbine generator

-��$ �&��� ���� ���� �� ���� ����

���� �����

��� �����

Address: 10 Takane, Fujii-cho,

Anjo City, Aichi 444-1192 Japan

Major products: Automatic transmissions

No. of employees: 5,398

Hydrogen ion concentration (pH)

Biochemical Oxygen Demand (BOD)

Chemical Oxygen Demand (COD)

Suspended Solids (SS)

Oils

Phenols

Copper

Zinc

Soluble iron

Soluble manganese

Chromium

Fluorine

Total Colon bacilli

Total Nitrogen

Total Phosphorus

*1: Hydrogen ion concentration is measured by the pH index; units for colon bacilli are units/ml. Figures for other items without units are in mg/l.

*2: ND (“not detected,” i.e. level is below that detectable by measuring equipment)*3: Figures in brackets are daily mean values.

SOx

NOx

SOx

Smoke and dust

Smoke and dust

NOx

SOx

Smoke and dust

Dioxins

NOx

SOx

Smoke and dust

*1: Units: SOx in m3N/H; NOx in ppm; smoke and dust in g/m3N; hydrogen chloride in mg/m3N; dioxin in ng-TEQ/m3N

51

��������� �� ������ ���������� ���� ���� �� ���� ����

������ ���� !��"#�$� ���� ���� �� ���� ����

����������� ��� ������ ��

���� �����

����% !�����& #����%'���&� �(���$ &����%)

���% ��$ #�*�&%

Hydrogen ion concentration (pH)

Chemical Oxygen Demand (COD)

Biochemical Oxygen Demand (BOD)

Suspended Solids (SS)

Colon bacilli

7.0

9.5

1.6

2.8

8.6

13

6.6

20

5.8~8.6

20

30

20

300

��,� �*���(�

���� �����

����% !�����& #����%'���&� �(���$ &����%)

���% ��$ #�*�&%

Hydrogen ion concentration (pH)

Chemical Oxygen Demand (COD)

Biochemical Oxygen Demand (BOD)

Suspended Solids (SS)

Colon bacilli

6.9

7.6

2.8

0.9

ND

7.4

11

7.3

5.0

ND

5.8~8.6

30

30

30

300

��,� �*���(�

*1: Hydrogen ion concentration is measured by the pH index; units for colon bacilli are units/ml. Figures for other items without units are in mg/l.

*2: Total for septic tanks: 160 persons, 35 m3/day

*1: Hydrogen ion concentration is measured by the pH index; units for colon bacilliare units/ml. Figures for other items without units are in mg/l.

*2: ND (“not detected,” i.e. level is below that detectable by measuring equipment)*3: Total for septic tanks: 75 persons, 16 m3/day

Address: 80-1 Nishiotsubo, Higashibata-cho,

Anjo City, Aichi 444-1213 Japan

Major products: Inspection and assembly

machines, stamping dies

No. of employees: 76

Address: 3-2-7 Shimizu-cho, Takahama City,

Aichi 444-1312 Japan

Major products: Remanufacture of automatic

transmissions

No. of employees: 111

52

����� �����

�� �����

������� ���� �� ���� � ��� ����

A I S I N A W E N V I R O N M E N T A L R E P O R T

���� ������ ���������� ������ �����

����!��� ��"���

Hydrogen ion concentration (pH)

Biochemical Oxygen Demand (BOD)

Chemical Oxygen Demand (COD)

Suspended Solids (SS)

Oils

Phenols

Copper

Zinc

Soluble iron

Soluble manganese

Total Chromium

Fluorine

Colon bacilli

Total Nitrogen

Total Phosphorus

Transparency

Negative ion surfactants (MBAS)

Dissolved oxygen (DO)

7.8

0.3

7.6

0.6

0.02

0.37

0.1

ND

ND

ND

5.0

0.312

100

0.02

7.3

8.4

1.2

8.9

0.3

0.02

0.86

0.3

ND

ND

ND

8.1

0.848

100

0.04

7.9

6.5~8.5

10

10

10

0.25

0.2

0.1

300

10

20 ������� ���

0.5

7 min

#�����$ %���� ������ ���������� ������ �����

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Gas turbine generator

Small single-pass boiler

Heating furnace

Incinerator

18

0.002

25

0.002

80

0.11

0.005

4.4

23

0.003

46

0.003

110

0.17

0.009

4.9

0.000019

35

2.66

0.04

110

0.49

0.1

0.1

187.5

0.37

0.1

700

10

����

NOx

SOx

Smoke and dust

NOx

SOx

Smoke and dust

Smoke and dust

NOx

SOx

Smoke and dust

Hydrogen chloride

Dioxin

��& "�����

��& "�����

Address: 6-18 Harayama, Oka-cho, Okazaki

City, Aichi 444-8546 Japan

Major products: Automatic transmissions/

Voice navigation systems

No. of employees: 2,037

*1: Hydrogen ion concentration is measured by the pH index; units for colon bacilli are units/ml. Figures for other items without units are in mg/l.

*2: ND (“not detected,” i.e. level is below that detectable by measuring equipment)

*1: Units: SOx in m3N/H; NOx in ppm; smoke and dust in g/m3N; hydrogen chloride in mg/m3N; dioxin in ng-TEQ/m3N.

53

����� �����

�� �����

������ ���� �� ���� � ��� ����

���� ������ ���������� ������ �����

����!��� ��"���

Hydrogen ion concentration (pH)

Biochemical Oxygen Demand (BOD)

Chemical Oxygen Demand (COD)

Suspended Solids (SS)

Oils

Phenols

Copper

Zinc

Soluble iron

Soluble manganese

Total Chromium

Fluorine

Colon bacilli

Total Nitrogen

Total Phosphorus

6.9

0.6

4.5

0.5

ND

0.02

0.13

0.1

0.1

ND

ND

30

4.6

0.10

7.3

4.5

7.8

0.5

ND

0.03

0.21

0.2

0.2

ND

ND

30

13

0.45

6.0~8.5

(10)

20(15)

20(15)

0.5

0.5

15

(1500)

15

16(8)

#�����$ %���� ������ ���������� ������ �����

����!��� ��"���

Steam boiler

Boiler(chilled and hot water generators)

Aluminiummelting furnace

71

0.214

0.001

62

0.173

0.001

37

ND

0.005

0.238

110

0.291

0.001

85

0.230

0.001

51

ND

0.007

0.39

160

8.76

0.2

160

8.76

0.2

160

8.76

0.2

����

NOx

SOx

Smoke and dust

NOx

SOx

Smoke and dust

NOx

SOx

Smoke and dust

Dioxin

��& "�����

��& "�����

Address: 2-2 Midorigahama, Tahara City,

Aichi 441-3401 Japan

Major products: Automatic transmissions

No. of employees: 1,440

*1: Units: SOx in m3N/H; NOx in ppm; smoke and dust in g/m3N; hydrogen chloride in mg/m3N; dioxin in ng-TEQ/m3N.

*2: AISIN AW's total SOx emission control efforts are focused solely on boilers (chilled and hot water generators). The control value for boiler SOx emissions is 4.706m3N/H. Measured maximum value was 0.742m3N/H, and average value was 0.664m3N/H.

*1: Hydrogen ion concentration is measured by the pH index; units for colon bacilli are units/ml. Figures for other items without units are in mg/l.

*2: ND (“not detected,” i.e. level is below that detectable by measuring equipment)*3: Figures in brackets are daily average values.

� ��� �� ��� �������� �� ����

54

A I S I N A W E N V I R O N M E N T A L R E P O R T

������������������� ���� �����������

��������

Trademark of American Soybean Association

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$"" � %#��#& � �& �#���% ��# �'�& �#�

This graphic and slogan, designed by our employees, is a unique symbol of our environmental commitment.The heart shape formed by the hands around the earth represents our care for the earth.

Although this report is based mainly on the results of our environmental protection efforts in FY2003(Apr. 2003 - Mar. 2004), some initiatives taken in FY2004 are also mentioned.

10 Takane, Fujii-cho, Anjo City, Aichi 444-1192 JapanTel: +81-566-73-1111

�� ! "#$%&''%()%$*$+

,�- ! "#$%&''%()%$&.(

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����� 1 ����������� 2���������Inquiries

As for all the contents of this report, the Internet also gets used to looking.

October, 2004

This pamphlet is produced out of recycled paper (old paper composition rate 100%) and printed with environment-friendly soy oil ink.

May 15, 1969

26.48 billion yen

Takao Taniguchi

555.8 billion yen (2003)

automatic transmissions, car navigation systems

8,770 (2003)

10 Takane, Fujii-cho, Anjo City, Aichi 444-1192 Japan Tel: +81-566-73-1111

AISIN AW ENVIRONMENTAL REPORT 2003


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