It is time to transition from defence to attack Passing on the technology and spirit Pushing forwards with Power and Passion cultivated through copper mine operation

Since the company’s foundation in 1875, we have expanded with a variety of The present prosperity of the Furukawa Company Group would not and electric rock drills and Western smelting technology. businesses in order to meet the demands of the times, originating in copper mine have been achieved without its founder, Ichibei Furukawa (1832- Some time later, Furukawa began imported machinery maintenance, development. The core technologies that we cultivated in copper mine develop- 1903). The history of Furukawa dates back to 1875 when Ichibei began component manufacturing, and machinery production. This is the root the Kusakura Copper Mine operation in Niigata. Two years later, he history of the Furukawa Company Group – a manufacturer of products ment have progressed and developed over time and are now the basis for the cur- launched the Ashio Copper Mine operation in Tochigi, where he intro- and developer of technologies with large shares in the global markets rent business fields of the Group. We provide products to all sorts of markets, duced revolutionary mining technologies one after another. This was of rock drills for mines, pumps for slurry transportation, ore crushing mainly in the fields of machinery and materials. the beginning of Furukawa’s development. machinery, water treatment technology and exhaust gas treatment tech- We celebrated our 140th anniversary on 8th August 2015. As social environ- Mining technology is not only about mining ore and extracting cop- nology, as well as the production of rare metals and concentrated sul- ments are significantly changing and global competition is becoming increasingly per. It may be no exaggeration to say that it is the essence of technolo- phuric acid, which are by-products of copper, among other things. fierce, we have established a new Management Philosophy in anticipation of the gies from all the industrial fields, from ore transportation, slurry trans- In 1905, Furukawa Mining Co., Ltd. was founded and private man- portation, water treatment and by-product treatment to construction of agement was shifted to a corporate structure. On the platform of the future: The Furukawa Company Group will remain indispensable to society by power plants which supply power required for these activities. Ichibei Ashio Copper Mine development, Furukawa began breaking new always embracing a spirit of challenge, advancing the technologies that have adopted leading-edge Western high-tech engineering technology for the ground in diversified industrial fields. Now, the Furukawa Group* underpinned the foundation of society that originated in mining development. operation of the Ashio Copper Mine, which was so significant that it has grown to include the Furukawa Company Group and other Furthermore, in order to realize this philosophy, we formulated, in November of was included in the Industrial History of the Meiji Era (1868 to 1912). Groups, and their companies are leaders in the Japanese industrial the same year, FURUKAWA Power & Passion 150, a vision for 2025 which will These technologies were utilized for the installation of tracks, world from high-tech home electronics to communications and cableways and conveyers for the transportation of ore, the construc- finance. Furukawa’s business fields vary. However, the technology Naohisa Miyakawa, be our 150th anniversary. This shows the future orientation of the whole company President and Representative Director based on our belief that now is the time to transition from defence to attack. tion of Japan’s first hydroelectric power plant, for the electrification and spirit cultivated by Ichibei through the development of copper of underground and surface mines and the introduction of pneumatic mines have undoubtedly been solidly passed on in each field to this day. The 2025 vision FURUKAWA Power & Passion 150 describes how we would like the Group to be in 10 years’ time. It aims to become a corporate group that leverages its reputation for category leadership and uniqueness to deliver growth. We will work to achieve continuous growth by placing more emphasis on our specialist niche products that have high market share, rising to the challenge with our own peerless technology and always responding to customer needs with mar- keting-based management*. In order to aim for an even higher level in the future, the Group believes that it should carefully maintain the positives that it has cultivated so far while being required to break through traditional corporate culture and moulds. With Power and Passion, we will push towards achieving this vision and continue to meet the expectations of all our stakeholders with the intention of working towards even better corporate value.

* Marketing-based management means incorporating marketing into the core of management to provide products and services recognized as valuable in changing markets, with the aims of deepening ties with customers, achieving sustained growth, and increasing corporate value.

* Furukawa Group The history of the Furukawa Group dates back to when the Japanese Mine King, Ichibei Furukawa, started the copper mine business. Since then, a number of Furukawa Group compa- nies have been established through the development and diversification of businesses and are now active in various industries in Japan as well as overseas. Currently, the Furukawa Group forms a voluntary organization called the Furukawa Group Executive Council consisting of 10 executive companies, namely Furukawa Co., Ltd., The Furukawa Electric Co., Ltd., ADEKA Corporation, The Yokohama Rubber Co., Ltd., Fuji Electric Holdings Co., Ltd., Fujitsu Limited, Nippon Light Metal Holdings Company, Ltd., ZEON Corporation, Asahi Mutual Life Insurance Co, Mizuho Financial Group and member companies, for cooperation between Group companies and enhanced mutual collaboration.

Passing on the technology and spirit cultivated through copper mine operation 1 Meeting diverse needs of customers New management structure for a time of change with the spirit of “Facing the new by learning from the past”

For over 140 years since our foundation in 1875, we have remained idea of paying attention to the environment around us was not common, Furukawa Co., Ltd. has been working to restructure its organization Separating and incorporating our businesses enabled us to make steadfast as a vanguard of a society changing at a bewildering pace. we implemented the world’s best environmental measures at the Ashio through the selection and concentration of businesses and to improve decisions quickly, more accurately understand customer needs and In 1918, the predecessor of the current Furukawa Company Group, Copper Mine. Ashio became an experimental site for environmental and enhance its financial culture in order to meet diversifying customer prepare to beat increasingly fierce global competition in this time of Furukawa Mining Co., Ltd. was established. The technologies and measures in Japan. Pollution prevention measures and by-product col- demands and to win global competition. change. products cultivated at the Ashio Copper Mine were utilized in a wide lection technologies developed at Ashio, as well as our mindset of serv- We have now come to adopt a new management structure through In addition, after the incorporation, each company in the Group range of fields by Furukawa Mining Co., Ltd. In 1989, the company ing society, are invaluable assets which have been passed down to today. spinning off businesses as Furukawa Company Group with Furukawa began promoting the overall business by being conscious of its indi- name was changed to Furukawa Co., Ltd. Grounded in its current Now we are in the 21st century and we have separated and incorpo- Co., Ltd., the operating holding company, at its core. vidual responsibility for profit and loss, resulting in raised awareness Action Guidelines set as the corporate philosophies, Innovation, rated our businesses in order to meet increasingly diversifying needs. In the Machinery Business, the industrial machinery segment was of cost reduction and energy conservation. This generated effects of Creativity, and Harmony, we have been working to improve new corporate The new Furukawa Company Group aims to transition from being an taken over by Furukawa Industrial Machinery Systems, Co., Ltd., the synergy in each company, which is contributing to the enhancement of value in this time of change. excellent company to being the best company that it can possibly be, rock drill segment by Furukawa Rock Drill Co., Ltd. and the UNIC the management culture of the whole Group. Even though the company name was changed, the roots of the through self-transformation and by going back to its roots. machinery segment by Furukawa UNIC Corporation. These are the Furukawa Company Group lie in the operation of copper mines, and core companies in the Group. the technologies and products developed at mines are still supporting *Monozukuri is a Japanese word consisting of “mono” which means “products,” In the Materials Business, the metals segment started at the time of our competitiveness in different forms. Grounded in this history of the and “zukuri” which means “process of making or creation.” However, the word Furukawa’s foundation, and was succeeded by Furukawa Metals & Group, we believe that since now we are in a time of change, taking means more than simply making something; it has overtones of excellence, skill, Resources Co., Ltd. The electronics segment was taken over by spirit, zest, and pride in the ability to make things very well. is not pride in and identifying with our grass roots monozukuri* is important, Monozukuri Furukawa Denshi Co., Ltd. and the chemicals segment by Furukawa in the spirit of “Facing the new by learning from the past.” mindless repetition; it requires creative minds and is often related to craftsman- Chemicals, Co., Ltd. ship, which can be learned through lengthy apprenticeships rather than the In addition, we give the highest priority to contributing to society The operating holding company, Furukawa Co., Ltd. is continuously structured course curricula taught at traditional schools. and the environment. From the late 1800s to the early 1900s when the conducting the Real Estate Business.

Machinery Business Industrial Machinery / Rock Drill Machinery / UNIC Machinery / Furukawa Industrial Machinery Systems Co., Ltd. Furukawa Rock Drill Co., Ltd. Furukawa UNIC Corporation

Materials Business Metals / Electronics Materials / Chemicals / Furukawa Metals & Resources Co., Ltd. Furukawa Denshi Co., Ltd. Furukawa Chemicals Co., Ltd.

Real Estate Business Furukawa Co., Ltd.

2 Meeting diverse needs of customers with the spirit of “Facing the new by learning from the past” New management structure for a time of change 3 Technologies that evolved in diversified fields in response to the demands of the times

■ From hand-held rock drills to large drilling machines What is essential for the modernization of copper mines is improvement of drilling We have been applying technologies that we acquired The machinery products that the companies in our Group technologies. At the Ashio Copper Mine, when the company was first founded, workers from operating copper mines to diversified fields in are manufacturing and distributing and the electronic dug by hand until imported rock drills were introduced in 1885. Then, a works was response to the demands of the times. Such technologies materials that we are producing at our sophisticated built in Ashio to repair imported machines and to manufacture replacement parts. In and products are continuously evolving with the changing facilities did not come about overnight. Tracing back 1914, we successfully developed a domestic hand-held rock drill that could accommodate times. the history of each product reveals stories about how our the physique of the Japanese operators. We started on the path to becoming a leading It is no exaggeration to say that the main support for technologies were passed down through history, since rock drill manufacturer. the current Furukawa Company Group comes from the our foundation over 140 years ago. In more recent years, we developed a Tunnel Drill Jumbo using rock drill technology foresight of pioneers who introduced the latest equipment to drill holes in mountains for setting blasting powder at tunnel construction sites. Our in the late 1800s, as well as the inquiring minds of the Tunnel Drill Jumbos have been used at the majority of tunnel construction sites in engineers who, not content with conventional technolo- Japan such as the Hakkoda and Seikan Tunnels on JR (formerly JNR) railway lines gies, worked on the development of new technologies and the Kan-etsu Tunnel on the Kan-etsu Expressway, as well as the Severomuysk and products. Tunnel construction* on the Second Trans-Siberian Railway - one of the most difficult tunnel construction projects in the world. Furthermore, our products to which this rock drill technology is applied, such as hydraulic crawler drills which make down- Various types of rock drills used in infrastructure construction ward holes in rocks for blasting powder and hydraulic breakers which crush rocks, are and at mine development sites utilized around the world in infrastructure construction and at open pit mining sites.

■ Low-cost and low-pollution technologies - Revolutionary flash smelting ■ Continuously evolving UNIC products to respond Smelting technology is used to separate metallic copper from copper concentrates to the demands of the times and is required for the operation of copper mines. The Blast Furnace Smelting UNIC cranes, synonymous with truck-mounted cranes, were invented in 1961 dur- Method which combusts coke in the furnace and smelts copper ores became common ing the post-war reconstruction period. Having transportation and cargo-handling func- from the late 1800s onwards. tions on a single truck significantly improved work efficiency. We have always devel- We, on the other hand, developed a revolutionary smelting method by making oped UNIC products in order to meet the demands of the times, such as improving lift- unique modifications to the technology imported from Outokumpu in Finland. This ing capability and adopting long booms to expand work areas as well as labor saving technology called Furukawa/Outokumpu Flash Smelting Technology smelts copper with radio and remote controls. using thermal energy generated when sulphur and iron in copper concentrates react The fuel-efficient and low-noise U-can ECO series (medium to large truck-mounted with oxygen and therefore enabled fuel-free smelting, which significantly reduced cranes) was released in 2006. Thanks to the development of the ECO pump system”, costs. the series achieved the same performance level with approximately 50% less engine In addition, it makes possible the sophisticated collection of sulphur dioxide speed compared to our conventional products. It also won the ECCJ Chairman’s Prize* which causes environmental pollution, which enabled efficient sulphuric acid at the 18th Energy Conservation Grand Prize event organized by the Ministry of manufacturing. The first plant which applied this technology started operation in Economy, Trade and Industry, for the first time in the industry, for these significant 1962. This flash smelting is highly-acclaimed as one of the top-level smelting carbon dioxide emission and cost reduction effects. UNIC has continuously evolved technologies in the world and has been adopted in a number of smelting facilities in Furukawa / Outokumpu flash smelting furnace UNIC products evolving with the times and will continue to evolve in the future. Japan and abroad. *This prize was given to medium to large truck-mounted models.

■ Slurry transportation technology used in mines made highly-functional ■ By-products generated through the smelting process are transformed and durable into valuable resources At mines, including copper and coal mines, work performance and efficiency When copper ore is smelted, by-products such as concentrated sulphuric acid and greatly depend on slurry transportation capacity. We began manufacturing pumps for rare metals are generated. We used to consider such by-products without worth but, as use by our company in the early 1900s in order to transfer slurry (water mixed with science advanced, it was revealed that they were valuable resources with many uses. solids such as stones, mud and metals) from the dressing plant to the treatment plant We saw a strong potential for arsenic, one of the by-products, and developed Japan’s outside the premises at the Ashio Copper Mine and started selling them on the gene- only arsenious acid manufacturing technology in the early 1900s. At that time arsenic ral market after the war. was used in glass and pesticides, etc., but it soon started gathering attention as a mate- The greatest feature of our pumps is that they are highly durable and can transport rial for semiconductors. We began developing high-purity metallic arsenic in 1961 slurry smoothly even in severe water conditions, utilizing the know-how that we and we are now capable of producing metallic arsenic with a purity of 99.999995% accumulated at copper mines. We are now developing and manufacturing pumps for and have the largest share both in the Japanese and global markets. High-purity metallic various applications in order to meet diversified requests. Our pumps are used for arsenic is used to make gallium arsenide semiconductors which are indispensable for wastewater discharge from places of business and plants and for sludge transporta- high-frequency electronic devices in mobile phones, laser diodes for DVD pickup and tion at sewage treatment plants. In addition, they are used to transport soil at tunnel light-emitting diodes used in traffic lights. In this way, our high-purity metallic arsenic construction sites using shield tunnel machines, specifically, the Trans-Tokyo Bay is contributing to the advancement of the information society. Pumps used at sewage treatment plants and tunnel Expressway (Aqualine) tunnel/bridge, underground tunnels on the Tsukuba Express High-purity metallic arsenic (top left) construction sites and the tunnel under the Bosphorus Straits in Turkey. They have also become essen- and its finished products tial tools at various wastewater discharge infrastructures.

4 Technologies that evolved in diversified fields in response to the demands of the times Technologies that evolved in diversified fields in response to the demands of the times 5 Vision and strategies of the Furukawa Company Group

■ Furukawa Company Group Management Philosophy ■ Vision for 2025 “Furukawa Power & Passion 150” ■ Policies for achieving vision for 2025 The Furukawa Company Group will remain indispensable Become a corporate group that leverages its reputation for (1) Increase the value of the Furukawa brand through (3) Strengthen and expand our human resource bases to society by always embracing a spirit of challenge, category leadership and uniqueness to deliver growth. marketing-based management 1. Build vibrant human resources and corporate culture for a new advancing the technologies that have underpinned the - Targeting consolidated annual operating income regularly in excess 1. Develop products and technologies that match market needs Furukawa foundation of society that originated in mining of ¥15 billion as we approach our 150th anniversary in fiscal 2025. - 2. Reinforce technological sales capabilities (proposals and solutions) 2. Secure, utilize, and develop diverse human resources in Japan development. reflecting customer needs and overseas 3. Achieve category-leading positions by concentrating on niche products 3. Put even more effort into training sales and marketing personnel ■ Furukawa Company Group Action Guidelines that have competitive advantages and using differentiation strategy In order to live up to our Management Philosophy, we put our 4 . Cultivate and create new markets and product categories; build a new (4) Actively promote investments to increase corporate value Action Guidelines of Innovation, Creativity and Harmony into business model 1. Make proactive capital investments necessary for growth practice, while always bearing in mind the three key words, Luck, 2. Expand business through strategic M&A and alliances Stolidity and Perseverance that best represents the spirit of our (2) Sustainably expand the Machinery Business founder. 1. Reinforce revenue bases in growing overseas markets mainly in business (5) Establish a robust corporate foundation related to infrastructure and resource development Increase corporate value by improving profitability and capital Innovation: We will work constantly at self-innovation by embracing 1. a future-oriented mindset. 2. Strengthen and enhance stock business efficiency, targeting ROE of more than 10% The "Power & Passion" symbol expresses the "power and speed" and the Maximize business opportunities by demonstrating comprehensive Establish a strong financial base Creativity: We will seek to create reliable, appealing products that 3. 2. "passion and enthusiasm" aspects of our business approach. The perfect Group competences and reinforcing engineering strengths Achieve balanced appropriations between investments meet market needs. 3. red circle conveys the connections and bonds we have with customers, for growth and return to shareholders Harmony: We will improve management transparency and contribute and "150" represents the 150th anniversary of our founding in 2025, which to the development of a society that is in harmony with is the year for achieving our vision. the environment.

■ Formulating the 2025 vision that aims ■ Furukawa Company Group to maximize corporate value marketing-based management Now we are in the 21st century and economic circumstances and Our perception of marketing is corporate activities carried out from The Tunnel Drill Jumbo business, which boasts an overwhelming ships with construc- social environments surrounding companies are changing even more the point of view of the customer, in other words, encompassing all domestic market share, is the best at putting marketing-based tion companies and dramatically than ever. With such changes, the Group will promote activities that provide value that is truly required by customers and management into practice. As a rock drill manufacturer, we have have worked with various strategies in order to become a corporate group that leverages that contributes to their success. The basis of our management is that been involved in many mountain tunnel constructions. them hand-in-hand. its reputation for category leadership and uniqueness to deliver all executives and employees are conscious of providing value to Tunnel construction requires high levels of safety and construction This history contin- growth by placing more emphasis on our specialist niche products customers and that they continue to think of even more ways to have speed, making it necessary to select construction methods that corre- ues to be an asset to that have high market share and that demonstrate its strengths, rising that value acknowledged further in the future. This is our definition of spond to geological changes and cross-section size. By understan- this day. to the challenge with our proprietary technology. marketing-based management. ding requirements starting from the construction planning stages It also allowed us In order to achieve this, the Group established a new Management In these changeable markets, we would like to achieve sustained and incorporating unique ideas, in order to maximize the advan- to develop a Linear Philosophy as well as new Action Guidelines in 2015, its 140th growth and increase corporate value by deepening ties with customers tages for our users, the construction companies, we have developed Tunnel Drill Jumbo. anniversary, and formulated a long-term vision of how the Group through providing value that contributes to their success through Tunnel Drill Jumbos for each site corresponding to its construction With expectations should be for its coming 150th anniversary. products and services. methods. In addi- of difficult construc- The 2025 vision FURUKAWA Power & Passion 150 describes how Human capital itself is indispensable in the pursuit of marketing- tion, in order to pro- tion conditions such we would like the Group to be in 10 years’ time. In order to accomplish based management. Aiming for an even higher level in all company vide machine opera- as rapid construc- this vision, we have positioned marketing-based management at the activities in the future such as management, development, monozukuri, tional support, we tion, large cross-sec- heart of our management with the belief that it is important for all our quality control, sales, services and administrative departments, while have created a sys- tions and concern Linear Tunnel Drill Jumbo equipped with new employees to be continuously thinking about what they should be carefully maintaining the positives that we have cultivated so far in tem for not only about encountering functions such as a navigation system doing in their allotted fields such as sales, service, development, our history of over 140 years, we are breaking through traditional machinery sales but fracture zones, the new machine format created from marketing- quality and production and to always have new ideas in order to corporate culture and moulds and promoting the building of vibrant also selling parts and based management is, of course, a more sophisticated rock drill provide the products, services and, further, value that customers truly human resources and corporate culture. providing repairs/ser- and also achieves improvements in workability and safety and require. We are also making good use of the technologies and We believe that these reforms will promote company growth and vices close to sites, allows computerized construction at a high level. We have strengths that the Group has cultivated over its long history to enhance development and will make sustainable operation possible. making speedy, high- established a new branch in Nagano Prefecture close to the stock businesses such as after-sales service and life-cycle support and quality response pos- operation site making it possible to provide machinery main- to work towards even better sustainable growth for our Machinery sible. In this way, we tenance and we are preparing for full-scale construction. Business. have placed impor- 21 boom whole cross-section Drill Jumbo tance on our relation- (Showa era)

6 Vision and Strategies of the Furukawa Company Group Vision and strategies of the Furukawa Company Group 7 Machinery Business Industrial Machinery Segment

Furukawa Industrial Machinery Systems Co., Ltd.

Furukawa Industrial Machinery Systems Co., Ltd. designs, Machinery Systems in 2008. This merger added abundant tech- ■ Pumps manufactures, conducts installation work and manages operation nologies and superior products for crushing, milling and briquet- We have a history of over 100 years of manufacturing pumps since developing a pump for use for slurry pumps, sludge pumps, crushers, grinding mills, bri- ting to enable us to meet diversified needs. by our company for slurry transportation at mines in the early 1900s. Our company’s strength is the quetting machines and screens, electrostatic precipitators, steel We will continue to enhance core technologies, further develop fact that we offer various types of pumps for different applications. In particular, our slurry pumps structures, such as steel bridges, and belt conveyors. competitive products and technologies and expand the contractor which transport liquid with solids and sludge pumps for sewage treatment are highly appreciated The history of our Industrial machinery business dates back to business by taking orders for certain parts of plant construction for their durability and abrasion resistance required at sites. the Mining Machinery Repair Division at the Ashio Copper Mine and large-scale works projects and so on. In addition, we aim to We have delivered our products to customers in a wide range of fields including slag granula- founded in the late 1800s. Since then, we have expanded the shake off the label of a simple equipment manufacturer, to rein- tion equipment at steel works, corrosion- and abrasion-resistant raw material transportation equip- industrial machinery business by continuously developing vari- force our engineering strengths and to work on expanding the ment such as at non-ferrous metal works, equipment for wastewater discharge from places of busi- ous types of machinery for use in mines and innovating technolo- foundation of our business in domestic markets. ness and plants, water filtration and sewage treatment plants nationally and shield tunnel works for gies. Furukawa Industrial Machinery Systems Co., Ltd. was the Trans-Tokyo Bay Expressway (Aqualine) and other similar works. In addition, we replace dete- founded in 2004 and took over the industrial machinery business riorated sludge pumps used at sewage treatment plants. Shield pump of Furukawa Co., Ltd. in 2005. In 2006, Otsuka Iron Works, Ltd. became a subsidiary and it was merged with Furukawa Industrial ■ Materials Machinery We design and manufacture crushers, grinding mills and screens used in the iron, chemical, and nonferrous metal industries and at stone pits, briquetting machines used to form fuels and medicines into briquettes and electrostatic precipitators used for preventing air pollution as well as designing, manufacturing and conducting installation work for certain parts of plants includ- ing peripheral equipment. Furthermore, our machinery is making a great contribution to the fields of alternative energy development and environmental conservation such as dry crushing of coal, manufacturing of a new composite fuel which is a mixture of coal dust and wood chips and crushing of burned resi- due and melted slag from municipal waste incineration plants.

■ Contractor Business Cone crusher GEOPUS R We have plenty of experience over many years of delivering steel structures such as road and expressway bridges, mainly in the metropolitan area, that are a necessary part of social infra- structure. We contribute to improvements in safety and convenience in people’s lives using our rich experience and technical skills to be involved in the whole process from design to con- Oyama Works (Tochigi Prefecture) Tochigi Works (Tochigi Prefecture) struction. We operate our contractor business utilizing both crusher, steel bridge and belt conveyor technologies and construction management skills. Recently, in reconstruction works in Rikuzen-Takata City after the Great East Japan Earthquake, we have been gathering attention by radically reducing the amount of time taken in earth conveying works in raising ground lev- els in the city and with environmentally-friendly construction methods that prevent the pollu- tion of the Kesengawa River. Our company’s strength is the fact that we can provide a total solution to cover everything from overall design of the works to construction and operation management. Night installation of a bridge

Slurry pumps Crushers Grinding mills Steel bridges

Sludge pumps Screens Briquetting machines Belt conveyors Belt conveyor and suspension bridge

8 Machinery Business Industrial Machinery Segment Machinery Business Industrial Machinery Segment 9 Machinery Business Rock Drill Segment

Furukawa Rock Drill Co., Ltd.

Furukawa Rock Drill Co., Ltd. manufactures and distributes rock Furukawa Rock Drill Co., Ltd. ■ Tunnel Drill Jumbos ■ Hydraulic Breakers ■ Hydraulic Crawler Drills drills such as Tunnel Drill Jumbos, hydraulic breakers and hydraulic Based on the concept of Life Cycle Support (LCS), we are current- A Tunnel Drill Jumbo is a machine used A hydraulic breaker is an attachment fit- A hydraulic crawler drill is a self-propelled crawler drills essential for drilling and crushing in infrastructure con- ly aiming to strengthen our provision of optimum services throughout to drill holes in rocks for setting blasting ted to excavators for excavating bedrock, machine for making downward holes in rocks. struction and mine development, etc. the whole life-cycle of a machine from delivery to repair, recycling, powder at tunnel construction sites. They are breaking down rocks and crushing concrete Our hydraulic crawler drills are used at lime- When it comes to rock drills, our Group has a long history. It began disposal and replacement as well as reinforcing revenue bases through used frequently in mountain tunnel works for structures and so forth. In order to meet a stone mines and quarries and for civil engineer- when we started maintaining imported rock drills used at the Ashio product distribution and stock businesses. We are continuing to work road and rail such as the Kan-etsu and variety of needs, we supply a wide range of ing work and at construction sites in Japan and Copper Mine and developed an original rock drill that could accom- towards enhancing our domestic service support system and establish- Seikan Tunnels and, more recently, in long high-quality, highly reliable hydraulic break- abroad and hold the largest share (30%) in the modate the physique of Japanese operators in 1914. Since then, we ing overseas distribution channels. tunnels on 5 different Shinkansen lines and ers from small to super large for bedrock global market. They can drill the most suitable have been proactively developing technology and have led the industry for reconstruction roads in the Tohoku excavation all over the world. Our hydraulic holes relative to ever-changing rock conditions. as a top rock drill manufacturer. region. In addition, we expect our new mod- breakers currently contribute to infrastruc- Their highly evaluated, accurate and speedy In 1961, our dedicated sales company, Furukawa Rock Drill Sales els equipped with new technology that ena- ture development such as civil engineering drilling technology produces holes with few Co., Ltd. was founded. In 2005, the company merged the rock drill bles rapid construction to be used for the work and construction sites worldwide. bends, and the demand for the drills is increas- manufacturing Takasaki and Yoshii Works of Furukawa Co., Ltd. The Linear Chuo Shinkansen Line on which ing in infrastructure construction and mine amalgamation of the two works became known as the present-day work is well underway and we will distribute development. Tunnel Drill Jumbos not only in Japan but also in overseas markets in the future.

Takasaki Works (Gunma Prefecture) Yoshii Works (Gunma Prefecture)

Tunnel Drill Jumbo Hydraulic breaker Hydraulic crawler drill

Hydraulic breakers Hydraulic crushers Tunnel Drill Jumbos

Hydraulic crawler drills Down-the-hole drills Drill Jumbos used in mines

10 Machinery Business Rock Drill Segment Machinery Business Rock Drill Segment 11 Machinery Business UNIC Segment

Furukawa UNIC Corporation

Furukawa UNIC Corporation manufactures and distributes truck- Group and in 1989, its name was changed to Furukawa UNIC ■ UNIC Cranes ■ Mini Crawler Cranes ■ Radio Control Devices mounted cranes called UNIC cranes. The UNIC crane has revolution- Corporation. In 2005, the Sakura Works, formerly a UNIC production ized the efficiency of the cargo-handling process from hoisting, load- works for Furukawa Co., Ltd., was merged to become the present-day ing and transporting to set construction; mounted on trucks or on Furukawa UNIC Corporation. ships. Our products hold the largest share (almost 50%) of the domes- Since we began producing UNIC cranes, we have continuously tic market and the nickname “UNIC” is so well-known that it is a syno- made improvements while incorporating basic functions and forms. In nym for truck-mounted cranes in Japan. the future, we aim to secure stable revenue in Japan and to increase The predecessor of Furukawa UNIC Corporation, Kyoei Kaihatsu revenue overseas by reinforcing competitive strength through differen- Co., Ltd. developed Japan’s first truck-mounted crane in 1961. The tiation such as higher functionality and higher-added value for UNIC nickname “UNIC” was given then, representing their hopes that it cranes as well as re-organizing overseas vendor networks and rein- would become a “universal crane” for all the people in the world and forcing distribution capacity. the image of the legendary, strong “unicorn” which resembles the shape of a UNIC. UNIC crane G-FORCE Mini crawler crane LCD radio control devices In 1987, the company became part of the Furukawa Company We have a wide range of UNIC Crane mod- The mini crawler crane shows its power in This popular radio control device enables a els, synonymous with truck-mounted cranes, construction sites, rough ground or indoor single user to remotely operate the crane and from small to large truck-mounted cranes and worksites where trucks cannot enter with its perform multiple tasks from crane operation various boom lengths and crane capacities compact body and crawling function. We to slinging and assisting with slung cargo which correspond to customer needs. offer cranes that can undertake a diverse therefore making contribution to improving Furthermore, in addition to the basic func- range of work from a compact model safety and work efficiency. A line-up of a tions of hoisting, loading and transporting, we (Maximum Lifting Capacity 995kg) that can wide variety of products that respond to are launching new models with advanced fea- be laid down on the back of a small, standard diverse customer needs is available from a tures, such as environmentally-friendly, energy- cab 2-ton truck, to a model with the world’s model that makes complex connecting opera- saving models, safety models and LCD radio- largest Maximum Lifting Capacity of 10t, as tion possible, a joystick model which enables controlled models that can achieve complex well as models fitted with safety functions intuitive operations, a model with a moment connecting operation. such as turn-over prevention and overloading limiter function to a model equipped with an alarm mechanisms. LCD screen with which the operator can check the lifting weight at the touch of a but- ton. Sakura Works (Chiba Prefecture)

UNIC cranes UNIC carriers

UNICPAL Mini crawler cranes UNIC ocean cranes

12 Machinery Business UNIC Segment Machinery Business UNIC Segment 13 Materials Business Metals Segment

The current economic environment in which we find ourselves Furukawa Metals & Resources Co., Ltd. in Japan shows advancing infrastructure development such as works related to 5 different Shinkansen lines and the Linear Chuo Shinkansen, construction work in preparation for the 2020 Tokyo Furukawa Metals & Resources Co., Ltd. inherited the metals business and Furukawa Metals & Resources Co., Ltd. was founded. Olympic and Paralympic Games and, further, public works based of the Furukawa Company Group and manufactures and distributes The Ashio Copper Mine was closed in 1973 but we purchase cop- on the Fundamental Plan for National Resilience. By utilizing, electrolytic copper, gold, silver and sulphuric acid. per concentrates, which are our main raw material, from overseas and evolving and developing the experience and technologies pertain- The metals business of the Furukawa Company Group originated at outsource the smelting process to Onahama Smelting and Refining ing to infrastructure improvement that we have accumulated the time of its foundation dating back to when we started operations at Co., Ltd., Hibi Kyodo Smelting Co., Ltd. and others that we invest in. through mining development technologies since our foundation, the Kusakura Copper Mine in Niigata Prefecture in 1875 and the We therefore have a geographically optimal production system for Hydraulic crawler drill Hydraulic breaker we will steadily create and maintain vigorous domestic demand. Ashio Copper Mine in Tochigi Prefecture in 1877. Among various copper and sulphuric acid in Japan. We are currently aiming to further In addition, we are determined to expand, in Japan and overseas, cutting-edge technologies developed at the Ashio Copper Mine, improve revenue conditions and we are working on establishing an our mining/infrastructure development businesses in which we Furukawa/Outokumpu flash smelting is highly-acclaimed as one of optimized production/distribution system focusing on profit margins. expect demand to increase in the future, responding to the diverse the top-level technologies in the world. This low-cost, low-pollution needs of society and further evolving our Machinery Business. technology was developed into a commercially-based technology in 1962 and has been adopted in a number of smelters in Japan and abroad. Tunnel construction In 2004, the metals business of Furukawa Co., Ltd. was spun off, In construction in which tunnels are excavated to build roads and railways, blasting excavation is used for mountain tunnels in Crusher hard rock and Tunnel Drill Jumbos are used at these sites. The Tunnel Drill Jumbo is a machine that drills holes to set blasting powder in rock and has been used in Japan in, for exam- Civil engineering and construction sites ple, the Seikan, Hakkoda and Kan-etsu Tunnels in the past. It is We expect to see a real increase in civil engineering and con- currently being used at many sites including reconstruction roads struction sites in the future as infrastructure development pro- in the Tohoku region and on 5 different Shinkansen lines. gresses. It is UNIC cranes that are used at these kinds of sites to The shield method is used in underground tunnels and requires transport, load and unload and install materials and they are pop- shield pumps that move excavated earth out with water and belt ular due to their high level of efficiency and convenience because conveyors that are labour-saving and environmentally-friendly. one crane can perform several roles. In addition, the compact We expect that these products will be used in the future for tunnel mini crawler crane with superior operability can be used in tight construction on the Linear Chuo Shinkansen Line. spaces and indoor worksites where trucks cannot enter. Further, excavators fitted with our hydraulic breakers are used Onahama Smelting and Refining Co., Ltd. (Fukushima Prefecture) Hibi Kyodo Smelting Co., Ltd. (Okayama Prefecture) at demolition sites for buildings and so on.

Tunnel Drill Jumbo Shield pump UNIC crane Concrete Demand for concrete, which is indispensable to all kinds of Mini crawler crane Electrolytic copper Gold Silver structures such as buildings and roads, is increasing as progress is made with developing infrastructure and we expect continued strong demand for crushed stone which is a raw material for aggregates used in concrete and limestone used in cement. In order to mine these materials, hydraulic crawler drills are We invest in overseas min- Oita Mining Co., Ltd. used to drill holes in rocks for setting blasting powder and ing projects through Furukawa Established in 1954. Special- Co., Ltd. in order to secure izing in the digging and dis- hydraulic breakers are utilized to break up large rocks that result Hydraulic crusher long-term stable supply of tribution of limestone in from the blasts. In addition, both our crushers such as jaw and copper concentrates as a raw Tsukumi City in Oita Pre- cone crushers and our screens that sort rocks by size are used at material. fecture. plants where excavated rock is crushed.

Gibraltar Mine (Canada) Oita Mining

14 Column Important fields of focus and business development in the Machinery Business Materials Business Metals Segment 15 Materials Business Materials Business Electronics Segment Chemicals Segment

Furukawa Denshi Co., Ltd. Furukawa Chemicals Co., Ltd.

Furukawa Denshi Co., Ltd. manufactures and distributes electronic Our products are not usually visible to the human eye, but they are all Furukawa Chemicals Co., Ltd. manufactures and distributes a diver- including polymeric ferric sulphate solution used to treat sewage and materials that are indispensable to the evolution of a sophisticated infor- essential for the functioning of modern society. By continuing to deve- sity of products such as sulphuric acid, sulphuric acid derivatives and aluminium sulphate used to treat water for domestic use as an inorganic mation society such as high-purity metal arsenide which is a raw mater- lop materials that protect people’s lives and play a part in enriching those copper-related products. coagulant for water treatment. Furthermore, we manufacture and distri- ial for gallium arsenide semiconductors, all kinds of crystal products lives, we will contribute even more to society. In order to do this, we will Furukawa Company Group's chemical business history dates back to bute all kinds of copper-related products such as cuprous oxide used as including gallium phosphide polycrystals, core coils, aluminium nitride work on cultivating and reinforcing sales for not only mature products when we began producing sulphuric acid in 1935. Sulphuric acid is an ingredient in ship-bottom paints and cupric oxide used as an ingredi- ceramics and lenses for lasers. but also for strategic products. always in great demand as a basic material essential in various industries ent in copper plating. The Group’s electronic materials business was founded in 1961 when such as chemicals, electronic parts, steel and food-processing. Since we By providing these high-quality chemicals, we support people’s lives we began the only domestic research into high-purity metal arsenide. We took over the smelting business of Toa Chemical Smelting Co., Ltd. from behind the scenes with the hope of making them more affluent and are currently the only Japanese manufacturer of high-purity metal arse- (now Tohpe Corporation) in 1944 and re-launched it as Osaka work on reliably securing revenue in the future and on the early com- nide, having built up an unshakeable position in the market and we meet Cementation and Refining, we have steadily expanded this business. mercialization and cultivation of newly developed products. most of the demand in Japan as well as exporting large quantities over- In 2005, the chemicals business of Furukawa Co., Ltd. was spun off seas. and Furukawa Chemicals Co., Ltd. was established. In 2005, the Furukawa Co., Ltd. electronic materials business was Currently the company not only manufactures sulphuric acid, but also spun off and Furukawa Denshi Co., Ltd. was established. manufactures and distributes a line-up of sulphuric acid derivatives

■ High-purity metal arsenide ■ Cuprous Oxide One indispensable element of the Cuprous oxide is a red powdered development of information technology pigment used as an antifoulant for is the gallium arsenide semiconductor ship-bottom paints to prevent barnacle which is used in mobile phones, LDs build-up. Our cuprous oxide products and LEDs. High-purity metal arsenide have a large share of the domestic is one of the raw materials used in market. Recently, it has been used in their manufacture. We focused on ship-bottom paints for low fuel con- characteristics early on and we have been mass-producing the world’s sumption ships with the aim of preventing marine pollution and is purest high-purity metal arsenide at 99.999995% (7N5). We are cur- highly praised as an environmentally-friendly product. rently the only manufacturer in Japan and we also hold the highest share of the global market. Iwaki Plant (Fukushima Prefecture) Osaka Plant (Osaka Prefecture)

Cuprous oxide used as an anti- Cupric oxide used as an ingredi- Aluminium sulphate Sulphuric acid foulant for ship-bottom paints ent in copper plating High-purity metal arsenide Aluminium nitride (filler) Aluminium nitride (parts)

Real Estate Business/Furukawa Co., Ltd. Affiliate Companies The Real Estate Business of the Furukawa Company Group is run by the operating holding Iwaki Semiconductor Co., Ltd. company, Furukawa Co., Ltd. In 1957, we launched the real estate business by setting up Established in 1982, specializing in the Furukawa Real Estate Co., Ltd., which merged with Furukawa Co., Ltd. in 2003. manufacture and distribution of gallium Currently, services include lease of company-owned buildings in Tokyo, Osaka and Fukuoka phosphide and gallium arsenide single crys- tals and substrates and other products. as well as a real estate agency. In 2014, the Muromachi Furukawa Mitsui Building (commercial FD Coil Philippines, Inc. complex name: COREDO Muromachi 2) was completed and it is contributing to the reinforce- Established in 2014. Headquarters in ment of our revenue bases as a new cornerstone of our Real Estate Business. Bulacan Province in the Philippines special- Core coils Lenses for lasers and optical Crystals for scintillators izing in the manufacture of coils. components Muromachi Furukawa Mitsui Building

16 Materials Business Electronics Segment Materials Business Chemicals Segment Real Estate Business 17 Towards a sustainable society and the development of the company

Technology Division Human Resource Development

This Division supports the basis of R&D activities that are “What supports limitless development of a company is people.” essential to the development of the Group’s business and is Under this policy, our Group has prepared various types of human composed of 5 separate organizations: Technological Strategy resource development systems in order to develop professionals. Department, Advanced Technology Department, Material These systems are used in order to develop each and every Research & Development Department, Nitride Semiconductors employee into excellent human capital who can demonstrate know- Department and Intellectual Property Department. In close ledge and abilities to the maximum and can create new value. We are cooperation with the Group companies in fields from materials also working hard to ensure a workplace environment that is both to machinery and equipment, we are making progress with R&D very comfortable and rewarding for this excellent human capital. that can contribute to the development of our business, those of our clients and of society.

■ Technological Strategy Department ■ Material Research & Development Department ■ Hierarchical Training ■ Self-Development Programs As well as coordinating general research and development activi- This Department conducts development activities that contribute to We have prepared a number of hierarchical programs, such as those for In addition to internally-held educational programs and training, we ties, this Department is responsible for proposing the development of the expansion of the Materials Business, mainly those that increase new employees, young employees, mid-career employees, staff members who encourage our employees to engage in autonomous self-development next-generation products and new materials that meet the demands of the functionality and added value of existing materials. Furthermore, are newly-assigned to a management position and managers, and for the cul- and capability development activities. We introduce them to various the times while catering to social trends and market needs through while developing materials that can be applied to our Machinery tivation of the next generation of executives. By participating in these pro- types of correspondence courses, as well as introducing and referring making development plans for new products based on marketing and Business products, we are earnestly working on basic research that grams, they can learn basic knowledge required for each position and acquire educational materials and books. so on. The Department also plans educational programmes to train will lead to the development of new materials. the ability to respond to social/environmental changes. For example, in 2014, In regards to correspondence courses, employees can choose from a engineering personnel involved in research and development. we started our Global Human Resources Training program for employees wide range of courses, not only in direct relation to their work, but also ■ Nitride Semiconductors Department who are in their 5th year with the company in order to develop personnel who qualifications, language study and computer-related courses, for some We are preparing to manufacture and distribute nitride semiconduc- can work on an international level. By cultivating an understanding of other of which the company pays part of the fees. tor (GaN) substrates with a view to mass-production. In close cooper- cultures, we are reaffirming communication with other people, polishing ■ Advanced Technology Department ation with user companies that are developing laser diodes and next- knowledge as members of the working population and as members of a com- ■ Personnel System In addition to supporting development that contributes to the generation semiconductor devices, we will contribute to the creation pany and working to improve skills and personal characteristics. At the Furukawa Company Group, the work performance, eager- growth of our Machinery Business, this Department promotes the of even more superior nitride semiconductor devices. ness, and capabilities of our employees are evaluated based on the development of machinery products that incorporate AI and IoT that ■ Specialized/Functional Training competence/qualification level system. The evaluation results are used are bound to be in demand in the future while taking on a leading role ■ Intellectual Property Office We provide training for each specialized field and employee function for employees’ education and training, capability development and in control, information, communications and sensor technologies We are responsible for managing intellectual properties produced internally and externally to enable staff to gain a broad knowledge and appropriate allocation and to maintain a fair and adequate attitude in through close cooperation with Group companies. We also support the through the research and development activities of the Group. We help technical skills in each field. terms of salary, bonus and retirement bonus, as well as an ability- development of manufacturing equipment technology for our with the development of Furukawa’s technologies, as well as sharing We also actively encourage our employees to participate in specialist based grade system level upgrading. Materials Business. with society the technologies that we own. courses held outside the company and to acquire official qualifications. In Today, in a time of major changes, we believe that creating an environ- addition, we support the dispatch of employees to external educational/ ment where motivated employees can exercise their abilities for the research organizations and academic societies to develop personnel who long term with peace of mind is important for the development of our are well-versed in advanced technologies and social/environmental trends. company.

Advanced Technology Department and Material Research & Development Nitride Semiconductors Department, Advanced Technology Department and Department (Tsukuba City, Ibaraki Prefecture) Material Research & Development Department (Oyama City, Tochigi Prefecture) Young Employee Training

18 Towards a sustainable society and the development of the company Towards a sustainable society and the development of the company 19

Corporate Social Responsibility (CSR)

We believe that fulfilling our Corporate Social Responsibility implemented the best measures by utilizing the latest technolo- ■ Environmental / Safety Initiatives conservation activities within the Group. In 2007, we established the (CSR) by helping to build a sustainable society is the most gies to meet the needs of the times. At the beginning, we imple- For more than 140 years since it was founded, the Furukawa Environmental/Safety Audit Principle and Policies in order to verify important task for us. Keeping in mind its contributions to, and mented smoke pollution and water treatment measures in Company Group has made efforts towards environmental conserva- that activities conducted by each company and branch, etc., appropri- responsibilities for society, the Furukawa Company Group has Ashio, and during the economic boom, we utilized imported tion by always implementing the latest technologies and the best ately reflect the Environmental Conservation Activity Policies and continuously evolved through business based on such things as pollution prevention technologies such as equipment for waste- measures available at that time. other regulations. We are also working to enhance our environmental full-fledged monozukuri and full-scale structural development as water discharge from places of business and plants and elec- Today, we have prepared a system which enables all employees to conservation activities through annual Environmental and Safety well as diverse activities including environmental conservation trostatic precipitators as well as manufacturing and distributing work on environmental conservation activities in every area of our Audits conducted by each department. and human resources development since its establishment over pollution prevention equipment. In this way, we have always ful- business. In 2002, considering the conservation of the global environ- Furthermore, we consider the creation and maintenance of safe and 140 years ago. filled our mission as a corporate citizen. ment as one of the important issues in the operation of the company, comfortable workplaces as an important issue in the operation of the Regarding environmental conservation in particular, we have we established the Basic Environmental Management Principle which company. Therefore, we established the Basic Occupational Health and stipulates that all employees shall contribute to the development of a Safety Principle and Occupational Health and Safety Policies as voluntary- ■ Group CSR ■ Corporate Governance sustainable society. Along with the Environmental Conservation management standards in order to enable employees to work in the best We believe that the Furukawa Company Group’s Management The Group’s basic corporate governance policy consists of enhanc- Activity Policies that stipulate specific activities in order to put the environment and to continuously improve the management level. Philosophy is embodied in its CSR activities. Since its establishment, ing management transparency, constructing an efficient management Principle into practice and the Biodiversity Activity Guidelines (estab- We are determined to run the company in an environmentally-friendly Group employees have practiced constant self-reformation through con- system through continuously reforming corporate structure, increasing lished in 2012) that stipulate specific guidelines to conserve biodiversity, and safe manner according to one of our corporate philosophies: har- tinually changing their mindset towards the future, and we have always corporate value through the creation of stable profits and contributing the above-mentioned Principle supports initiatives in environmental mony between environmental conservation and production activities. pursued reliable and appealing monozukuri in order to respond to the to all stakeholders including shareholders. Under this basic policy, demands of the times with the evolution of various businesses. As a result, each Group company is striving to move forward with flexible man- we have substantially contributed to the development of Japanese industry. agement based on clear asset management and by taking responsibility We will continue our transparent management through compliance, for profits and losses while maintaining the integrity of the Group and corporate governance and risk management and, along with further to maximize the corporate value of the Group as a whole by providing strengthening monozukuri towards the future, we will enhance commu- products and services to the satisfaction of customers. nication with our Group’s stakeholders who are clients, business part- The Group is a company with a board of directors and an audit & ners, shareholders and investors, employees, the local community and supervisory board who monitor the execution of its business. We select the global environment, build trusting relationships with them and con- people with plenty of experience in a variety of fields, specialist Japanese serow goat (Spotted on the tribute to the development of a sustainable society. knowledge and objectivity as our external directors and auditors to site of the former Honzan Smelting ensure the validity of management decision-making and the effective- Ashio Cherry Tree Planting Society (Group-owned land, Ashio-machi, Nikko Cherry trees planted at the 2nd Planting Works, Ashio-machi, Nikko City, ■ Compliance ness of monitoring and auditing. We have adopted an executive officer City, Tochigi Prefecture) Society meet (March 2010) Tochigi Prefecture) We believe that it is a company’s duty not only to comply with laws system in order to separate management monitoring functions and and regulations but also to act in a sincere and responsible manner in business execution functions and to speed up the decision-making ■ Sustainable Energy Initiatives social and ethical aspects. Based on this belief, the Furukawa Company process and clarify where responsibilities lie. In addition, based on the The Group constructed a solar power station on the site of the for- Group has established the Corporate Conduct Charter and the Employees guidelines in the Corporate Governance Code of the Tokyo Stock mer Ashio Smelting and Refining (Ashio-machi, Nikko City, Tochigi Code of Behaviour so that all employees engage in their work, thorough- Exchange applied from June 2015, we will continue to create an even Prefecture; official name: Ashio Office Solar Power Station, ly acknowledging the importance of compliance. In addition, the man- better corporate governance system in order to achieve sustainable Furukawa Co., Ltd.; power output: 1,000kW) and we began producing agement is taking the initiative in working towards creating a corporate growth and improve corporate value. and supplying electricity in December 2013. The Ashio District is the climate where compliance is considered important by, for example, tak- foundation on which we have built our business and it is important to ing the time to explain its importance and priority at every opportunity. Furukawa both in terms of its history and technology. Along with con- tinuing to consider the most valid use of this district in the future, we will actively conduct activities that conserve the global environment and contribute to the local community. We also generate solar-powered electricity at Gunma Kankyo Recycle Center Co., Ltd. (Kuragano-machi, Takasaki City, Gunma Ashio Office Solar Power Station, Furukawa Prefecture) where we conduct intermediate treatment of medical Co., Ltd. waste and we began producing and supplying electricity in February 2014 (power output: 250kW). Website

■ Communication with society The basic stance of the Furukawa Company Group is to disclose our business performance results, financial details, future visions, business strategies and social activities promptly, accurately and in an easy-to-understand way so that every stakeholder can properly under- stand our business activities. Additionally, for greater management transparency, we hold explan- atory meetings as needed and willingly disclose information through PR materials and websites. 5 Minute Introduction to Furukawa To all Shareholders (Shareholders’ Report)

20 Corporate Social Responsibility (CSR) Corporate Social Responsibility (CSR) 21 Technologies and products utilized in every corner of our lives Furukawa Company Group serving our everyday lives

What kind of company is the Furukawa Company Group? Many of you might have heard of our name but you may not know exactly what we do. However, when you have a look around you, you will realize that more products and technologies of the Furukawa Company Group than you imagined are being utilized in every corner of our lives serving to provide a more convenient, affluent life and to make a safer society.

Illustrator: Akira Tomari

22 Technologies and products utilized in every corner of our lives Technologies and products utilized in every corner of our lives 23 Corporate History

1875 Began the operation of the Kusakura Copper Mine in Niigata 1950 Built the Takasaki Works of the Rock Drill Division in Gunma 1987 Bought UNIC Corporation (manufacturer for truck-mounted 2005 Spun off the Machinery business, the Metals business and the (Company foundation) At the Takasaki Works, rock drills were mass- cranes) Electronic Materials and Chemicals business and strengthened the 1877 Began the operation of the Ashio Copper Mine in Tochigi produced and we established our position as a management system as the Furukawa Company Group “UNIC” has become a synonym for truck-mounted leading rock drill manufacturer. 2006 Established a rock drill products distribution company, Furukawa Rock The Ashio Copper Mine is where the Furukawa cranes in Japan. UNIC Corporation, which devel- Drill (Shanghai) Co., Ltd. in China Company Group began. At that time in Japan, oped the first UNIC products in Japan, entered the when industries had not yet fully developed, the Group and the name was changed to Furukawa This is an affiliate company for the Construction operation of copper mines was a key industry. UNIC Corporation two years later. and Mining Machinery business established in Shanghai, China and distributes rock drills and 1951 Began manufacturing of titanium dioxide and cuprous oxide at other products. Osaka Cementation and Refining Took over the Manufacturing Division of UNIC Corporation and 1884 The Ashio Copper Mine produced the largest amount of copper in Japan 1954 Imported flash smelting technology from Outokumpu in Finland established it as the Sakura Works Comparison of output at each copper mine around 1884 1956 Completed the flash smelting plant at Ashio Smelting and Ref ining 1989 The Japanese name changed from Furukawa Kogyo Kabushiki tons 1960 Began sales of petroleum Kaisha to Furukawa Kikai Kinzoku Kabushiki Kaisha Transferred the General Machinery business to Otsuka Iron Works, Ltd. (Year) Ashio Kusakura Besshi Yoshioka Arakawa Ogoya 1961 Began manufacturing of concentrated sulphuric acid at Osaka 1990 Bought an American breaker manufacturer from Furukawa Industrial Machinery Systems Co., Ltd. and changed the 1883 654 1,016 1,025 74 244 168 Cementation and Refining 1997 Established a copper smelting company, Port Kembla Copper Pty. company name to Furukawa Otsuka Co., Ltd. 1884 2,308 1,084 1,036 131 243 228 1962 Completed the Furukawa/Outokumpu flash smelting plant at Ashio Ltd. (PKC) in Australia 2007 Formed a capital and business alliance for the GaN Semiconductor 1885 4,132 1,031 1,507 367 235 256 Smelting and Refining Established a manufacturer of UNIC products/components, Furukawa Epi Wafer business with POWDEC K.K. (tonnes) Source: Meiji Industrial History – Mining The Furukawa /Outokumpu flash smelting plant UNIC (Thailand) Co., Ltd. in Thailand 2008 Furukawa Industrial Machinery Systems Co., Ltd. merged with was made by improving technology from a This is an affiliate company for the UNIC segment Furukawa Otsuka Co., Ltd. 1885 Began using rock drills to excavate mine cavity Finnish company, Outokumpu. Its major feature established in Rayong, Thailand, which manufac- Newly setup the Nitride Semiconductors Department as a nitride semiconductor- For the operation of copper mines, the latest is that fuel is not needed, which resulted in a tures truck-mounted cranes and other products. related research organization technologies were imported from Europe and the significant smelting cost reduction. Spun off the Fuels business and passed it on to Furukawa Commerce Co., Ltd. U.S.A. The rock drill was one of these technolo- 2009 Built the new development building for the Nitride Semiconductors gies and the Ashio Copper Mine was one of the Department at the Oyama Works first places to start using them in Japan. Completed development and began sales of bowling equipment 1998 Established a rock drill products distribution company, Furukawa Gallium nitride substrate, which is under develop- Rock Drill Europe B.V. in Holland ment, is used in blue-violet LDs such as Blu-ray This is an affiliate company for the Construction and is also expected to be applied in the future to 1887 Set up the Manufacturing Section at the Ashio Copper Mine and and Mining Machinery business established in high-luminance white LEDs in next-generation began machinery repair and manufacturing Utrect, Holland, which distributes rock drills and lighting and power devices for electric vehicles 1894 Began operation of the Shimo-Yamada Coal Mine in Fukuoka and other products. and so on. entered into the coal industry Tohpe Corporation, a manufacturer and distributor of paints and chem- 1900 Set up a machinery works at the Ashio Copper Mine and entered into A huge bowling craze took place in Japan at that time. We manufactured bowling the machinery industry equipment providing people with healthy entertainment. icals, became a consolidated subsidiary 1905 Furukawa & Co. was founded. Shifted from private management to a Newly established the Materials Research Laboratory for metal and 2010 Obtained interests in a copper mine in Canada corporate structure Began manufacturing of crawler shovels at the Oyama Works electronic chemical-related research 2011 Established a rock drill products distribution company, Furukawa Rock 1906 Completed Hosoo Electric Power Station in Nikko in Tochigi Completed research and development of high-purity (99.999%) 1999 Moved the Materials Research Laboratory to Tsukuba City in Ibaraki Drill India Pvt. Ltd., in India 1911 Changed the organization to Furukawa General Partnership metallic arsenic and commenced with the sale of it 2000 Newly established the Techno-Research Laboratory for machinery 2012 Established a rock drill products distribution company, Furukawa Rock 1914 Manufactured the first rock drill in Japan Arsenic is one of the by-products generated dur- segment-related research Drill Latin America S.A., in Panama The first domestic rock drill was developed at ing the smelting stage of copper concentrates. It 2001 Established Gunma Kankyo Recycle Center Co., Ltd. Established a UNIC products distribution company, LLC Furukawa Ashio. Because imported rock drills were too started getting attention as a semiconductor 2002 Established the Semiconductor Growth System Department as a develop- UNIC RUS, in Russia large and difficult to handle, development of a material around this time. ment organization for manufacturing equipment for electronic materi- Withdrew from the fuels industry small rock drill that could accommodate the phy- als, etc. 2013 Transferred all shares of Tohpe Corporation to Zeon Corporation and sique of Japanese operators had been long 2003 Established a rock drill products distribution company, Furukawa Rock withdrew from the paints industry awaited. Drill Korea Co., Ltd. in Korea Built a solar power station on the site of the former Ashio Smelting and 1918 Spun off the Mining Division from Furukawa General Partnership 1970 Withdrew from the coal industry Merged Furukawa Real Estate Co., Ltd. and established the Real Estate Refining and established Furukawa Mining Co., Ltd. 1971 Built the Yoshii Works of the Bowling Division in Gunma Division 2014 The Muromachi Furukawa Mitsui Building was completed in Nihonbashi, 1920 Established the Furukawa Electric Co., Ltd. through investment in Began manufacturing of wheel loaders at the Oyama Works Established Taian Furukawa Machinery Co., Ltd. - a joint company for Tokyo It is a 22-storey building with 4 underground lev- kind to Nikko Electric Copper Refinery A large volume of our wheel loaders was expor- the manufacturing and distribution of UNIC cranes in China els and is split into 3 distinct sections: a com- 1941 Furukawa General Partnership was merged with Furukawa Mining ted and this helped spread our name around the This is an affiliate company for the UNIC seg- mercial complex (COREDO Muromachi 2), offices Co., Ltd. to form the basis of the current management world. ment established in Taian, Shandong, China, and housing to let. 1942 Went semi-public which manufactures and distributes truck- Spun off the Machinery Division from Ashio Mining to establish mounted cranes and other products. Ashio Manufacturing 1944 Bought Osaka Smelter of Toa Chemical Smelting Co., Ltd. and established it as Osaka Cementation and Refining. Entered into the 1972 Built the Iwaki Works of the Electronic Materials Division in  Established a coil manufacturing company, FD Coil Philippines, Inc., chemical industry Fukushima Discontinued operations at the copper smelting company run by PKC in in the Philippines Built the Oyama Works of the Machinery Division of the Ashio Changed the English company name to Furukawa Co., Ltd. Australia Integrated our research institutions: the Techno-Research Laboratory, the Copper Mine in Tochigi 1973 Discontinued the Mining Division of the Ashio Office (closed the Transferred and spun off the Casting business to Furukawa Castec Co., Ltd. Materials Research Laboratory and the Semiconductor Growth System At the Oyama Works, pumps and mining machin- Ashio Copper Mine) 2004 Sold the Construction Machinery business to Hitachi Construction Department ery for copper mines were manufactured, not only Built the Mibu Works of the Construction Machinery Division in Tochigi Machinery Group 2015 Formulated the Management Philosophy, Action Guidelines and long-term for internal use but also to sell externally. 1986 Built the high-purity metallic arsenic manufacturing facility at the vision Iwaki Works

24 Corporate History Corporate History 25