NKK CORPORATION: Annual Report 2001
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ENVIRONMENTAL SOLUTIONS

Mirroring current emphasis on the establishment of a resource-recycling society that coexists with nature, NKK is earnestly developing its environment-related business--an area of tremendous growth potential. To this end, in April 2000 we opened the Environmental Solutions Center, which allows us to maximize the synergies of world-caliber steelmaking and engineering operations and draw on the combined strengths of the NKK Group to formulate proposals that take a solutions approach to environmental and eco-energy issues.




Recycling Solutions

Recycling operations, typified by the use of waste plastics as blast furnace feed, represent the perfect example of how synergies can be derived through expertise in steemaking and engineering.

      Turning waste plastics into blast furnace feed greatly curbs carbon dioxide emissions and may help minimize global warming, which is thought to hinge on the increase in greenhouse gases, such as carbon dioxide. Our facilities, with aggregate annual processing capacity of 150,000 tons, use industrial waste plastics and used plastic containers and packaging as their raw materials. In fiscal 2001, the first year we marketed our recycling business--mainly waste plastics recycling operations for blast furnace feed--sales reached ¥8.0 billion. We also started our used electric appliance recycling business, which followed the April 2001 enactment of a recycling law for specified electric appliances. We expect this business to expand.




Eco-Energy Solutions

Dimethyl ether (DME) is attracting considerable attention as a clean fuel for the 21st century. Development of direct synthesis of DME, using five tons per day, was essentially completed in December 2000. We already marked a world first with the successful production of DME from coal-bed methane, and will now focus on verification of operations at several hundred tons per day.

      We also concluded a contract with Siemens Westinghouse Power Corp. for distribution and packaging of stationary solid oxide fuel cells and acquired the marketing rights for Asia, including Japan. These highly efficient distributed power generation systems have a low environmental impact, producing almost no nitrogen oxide emissions. Commercialization is close at hand as we endeavor to achieve early market introduction in response to expected widespread demand.


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