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Soil Recycling Operation Starts at SDK’s Yokohama Site

SANBIC CO., LTD.
SHOWA DENKO K.K.
OBAYASHI CORP.
SHIMIZU CORP.
April 26, 2004

A facility for soil treatment and transshipment has started commercial operation at Showa Denko K.K.’s (SDK) site in Yokohama. The facility is owned and operated by Geo Environment Technology Systems Co., Ltd. (GE Technos), a subsidiary of Sanbic Co., Ltd. in Handa City, Aichi prefecture.

GE Technos will treat 300,000 tons per year of contaminated soil to be collected from the metropolitan area. The treated soil will be used as raw material for cement and in aggregate recycling or sent to purification facilities. In the second phase, a purification facility will be built to enable the use of soil for back-filling purposes.

Due to its convenient location in the heart of the metropolitan area, the newly opened facility can treat a large amount of contaminated soil resulting from various redevelopment projects in the area. The facility will aim to provide treated soil with quality assurance as “earth for refilling” required for redevelopment projects.

The facility has storage space for 10,000 tons of contaminated soil as well as storage space for 6,000 tons of treated soil. It also has truck scales and drying/classification unit (80 tons per hour; 30,000 tons per month at maximum), in addition to an administration building. To bring in raw materials and ship out products, 2,000-ton class vessels will be used.

Furthermore, in accordance with the guidance by the Yokohama Municipal Government, the facility is equipped with appropriate air purification units and designed to prevent permeation of contaminated substances into the ground. Thus, the facility can store contaminated soil in an environment-friendly manner.

Sanbic developed a technology to purify contaminated soil by firing and started full-fledged soil recycling business in the spring of 2001. At present, the company’s plant in Handa City is treating around 300 tons per day of contaminated soil and conducting purification of soil.

SDK has participated in the soil recycling business since its Yokohama Plant owns a wharf and yard that can accommodate large vessels and in view of the plant’s location in the metropolitan area, where there is a big demand for soil recycling. Also, SDK contributes its expertise in plant operation, chemical analysis, inorganic material handling, and effluent/waste gas treatment.

SDK, Obayashi Corporation, Shimizu Corporation, Showa Engineering Co., Ltd., Tokyo Gas Engineering Co., Ltd. Osaka Gas Co., Ltd. and Shimada Co., Ltd. will become shareholders in GE Technos, together with Sanbic. Transfer of some of Sanbic’s shares in GE Technos to the new shareholders will take effect in May.

The new shareholders will support GE Technos with their respective technologies and utilize the new facility as their soil-recycling base.

[Profile of Geo Environment Technology Systems Co., Ltd.]

President Manabu Yanagi (concurrently, president of Sanbic Co., Ltd.)
Head office 28-12, Meieki 3-chome, Nagoya City, Aichi Prefecture
Capital ¥80 million
Shareholders (after May) Sanbic 52%; Showa Denko Group 27%; and others
Scope of business Soil recycling
Annual sales ¥3billion (for 2004, estimates)
Offices Tokyo Branch and Yokohama Office