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- Response to the Great East Japan Earthquake
Here at the Mitsubishi Chemical Holdings (MCHC) Group, we set up a task force immediately after the earthquake to ascertain the impact on the MCHC Group, take appropriate action, and quickly determine and provide necessary support. The following is a report on the impact that the earthquake had on our operations and our response, as of June 30, 2011.
We were deeply saddened to learn that the recent earthquake claimed the lives of one MCHC Group employee and two family members. Another of our employees is still missing. Several employees and family members were also injured.
Although we were able to safely halt operations at all of our manufacturing facilities without any security issues, the earthquake had a major impact on MCHC Group companies based in the Tohoku and Kanto regions. Buildings and facilities were damaged at 26 manufacturing, research, and distribution sites (16 companies), and also at sales offices and other premises operated by Mitsubishi Tanabe Pharma Corporation and other group companies in the six prefectures that make up the Tohoku region, bringing sales and production activities to a standstill.
Of the MCHC Group’s facilities, those in the Kashima area of Ibaraki prefecture sustained the most damage. Production had to be halted at plants operated by Mitsubishi Chemicals Corporation (MCC), the MCC Group and the Mitsubishi Tanabe Pharma Group.
MCC was forced to suspend supplies of ethylene and other raw materials in particular. We appreciate that this caused serious concern throughout the supply chain and would like to thank all those involved for their understanding.
The table below outlines the main damage caused by the earthquake and progress with recovery work. As it stands, we have restored normal operations and activities at the vast majority of our sites.
| Location | Company | Site/Facility | Damage caused by the earthquake | Progress with recovery |
|---|---|---|---|---|
| Ibaraki Prefecture | MCC | Kashima Plant (East) | Plant completely shut down, water cut off Damage to waterfront facilities |
Operations restarted at No.2 ethylene production facility on May 20 Routine repairs postponed until the end of August in order to restart supplying ethylene products Operations and product supplies restarted at No.1 ethylene production facility on June 30, after scheduled routine repairs |
| Tsukuba Plant (Ushiku) | Plant completely shut down, water cut off | All utilities restored, operations fully recovered on April 11 | ||
| Mitsubishi Chemical Medience Corporation | Kashima Plant (Hasaki) | Utilities temporarily cut off, operations continuing on bare minimum resources | All utilities restored Operations fully restored by early May |
|
| Fukushima Prefecture | Nippon Kasei Chemicals Co. Ltd. | Onahama Plant | Operations halted due to power failure, water cut off, and partial damage to facilities | Operations running as normal, with the exception of selected plants in need of repair and ancillary facilities |
| API Corporation | Iwaki Plant | Damage to facilities | Operations restarted by the end of May |
| Location | Company | Site/Facility | Damage caused by the earthquake | Progress with recovery |
|---|---|---|---|---|
| Tohoku (six Prefectures) | Mitsubishi Tanabe Pharma Corporation | Facilities overseen by Tohoku Branch | Difficulties continuing normal sales activities | Activities restarted on March 28, dealing mainly with safety management duties at the request of medical institutions, etc. As it stands, activities more or less restored to normal levels |
| Tochigi Prefecture Ibaraki Prefecture Chiba Prefecture |
Mitsubishi Tanabe Pharma Factory, Ltd. | Ashikaga Plant Kashima Plant |
Operations temporarily suspended, but no serious damage to buildings or facilities | Ashikaga Plant, Kashima Plant Operations restarted on April 11 |
| MP-Logistics Corporation | East Japan Distribution Center | Deliveries suspended due to partial damage to buildings and facilities | Deliveries restarted on April 11 |
| Location | Company | Site/Facility | Damage caused by the earthquake | Progress with recovery |
|---|---|---|---|---|
| Ibaraki Prefecture | MKV Dream Co. Ltd. (Mitsubishi Plastics Group) | Tsukuba Plant | Manufacturing facilities completely shut down | Operations restarted at selected facilities by the end of March Operations fully restarted by late April |
| Fukushima Prefecture | Mitsubishi Plastics Inc. | Koriyama Plant | Manufacturing facilities completely shut down | Operations restarted by the end of March |
| Location | Company | Site/Facility | Damage caused by the earthquake | Progress with recovery |
|---|---|---|---|---|
| Aomori Prefecture | MRC Unitec Co. Ltd. | Head Office | Plant completely shut down Damage to waterfront facilities |
Operations partially restarted on March 28, fully restarted on April 18 |
| Fukushima Prefecture | Toeikasei Co. Ltd. | Ono Plant | Plant completely shut down Damage to facilities |
Operations partially restarted on April 8, with other operations scheduled to restart over time |
On behalf of the MCHC Group, we donated ¥300 million to the affected area to provide support for those affected by the Great East Japan Earthquake.
Our officers and employees also collected donations and raised a total of approximately ¥50 million, which we donated to people in the affected area via organizations such as the Japanese Red Cross Society and local Community Chest organizations.
Loading relief supplies at Mitsubishi Tanabe Pharma
We have sent pharmaceuticals, plastic wrap, solar powered battery chargers and other relief supplies to the affected area.
MCHC Group volunteer activities on the ground
In addition to making donations and sending relief supplies in response to the Great East Japan Earthquake, we believe that we also need to provide ongoing assistance for support activities for the time being. We are therefore providing support for volunteer activities being carried out by MCHC Group employees, to help those in the affected area. Having appealed for volunteers at four MCHC Group companies, and their respective group companies, participants are assisting with activities such as loading supplies for temporary housing throughout July, in conjunction with an NPO based in Ichinoseki. We will continue to engage in these activities after July, as well, in line with the needs of people on the ground.
In response to restricted electric power supplies as a result of the nuclear accident, we made full use of our in-house generation facilities and managed to restrict power on the production floor by 15% and still sustain our business activities without any interruption to production or supplies.
MCC meanwhile supplied surplus power generated in-house to Tokyo Electric Power and Tohoku Electric Power.
Commencement of sales of electricity to TEPCO from Kashima-kita Electric Power Corporation (Ibaraki Prefecture) on April 21. Power for (up to) 300,000 homes.
Commencement of sales of electricity to TEPCO from Mitsubishi Chemical Naoetsu Plant (Niigata Prefecture) from mid-June. Power for (up to) 150,000 homes
At our Head Office, we managed to reduce energy use by 25% through means such as switching off lighting, limiting air conditioning, and closing off floors on an alternating basis.
We have put in place manuals and procedures at our Head Office and all MCHC Group facilities to ensure that we are able to continue operating in the event that our corporate activities are affected by a major earthquake, as occurred in recent months, or an accident. We also take steps to protect our employees and their families, to maintain our business activities, and to ensure the safety of our plants and facilities (for instance, through automatic shutdown).
Following the recent earthquake, we adopted predetermined measures in accordance with our manuals and acted with the minimum of confusion, such as verifying the safety of our employees and providing assistance to those unable to return home. At many of our facilities in the east of the country, however, communications were down during the initial period after the earthquake. As a result, it took longer to ascertain the situation in some cases.
Bearing in mind issues such as these, we are now revising our overall business continuity plan, including efforts to maintain our supply chain, in the event of a serious disaster in the Tokyo area. In the Kashima area, meanwhile, we are investigating damage to waterside infrastructure facilities as a result of the tsunami, and are working on both tangible and intangible improvements based on our experiences from the recent earthquake and tsunami.
