LLC Yokohama R.P.Z. (YRPZ)

Business activities

Production of tires for passenger cars

Total site area

29ha

Number of employees

758 (as of the end of December 2018)

Location

YOKOHAMA Plant, SEZ “Lipetsk”, Kazinka Village, Gryazy District, Lipetsk Region, Russia, 399071

Contact for consultation and complaints

HR and Administration Dept.
TEL: +7 (4742) 727-800 FAX: +7 (4742) 727-900

Message from the President

Kazuo Kawada

Located approximately 450 kilometers south of the Russian capital of Moscow, LLC Yokohama R.P.Z. commenced its production activities in the Lipetsk Region in 2012.
2018 represents a year of intercultural exchange for Japan and Russia. In order to introduce Japanese culture to the Lipetsk community and to deepen understanding of the company among the Russian public, an event was held in cooperation with the Lipetsk Chamber of Commerce. When an exhibition of Japanese art entitled, “The Beauty of Detail” was held, it was warmly received by the local community.

In conducting our business, we aim to achieve the following:
・ We wish to create a high-quality and cleanly run factory from which our customers may experience peace-of-mind when they purchase our products.
・ We also wish to create an attractive company in which our employees can take pride.
・We will flexibly respond to the market environment in Russia.

Roughly five years have passed since production activities commenced at our factory, and the order of the requirements on which we place the greatest importance continues to be safety (S), the environment (E), quality (Q), delivery (D), and cost (C). Of these requirements, safety (S) is of the greatest importance to us. Accordingly, we earnestly wish that all of our employees can complete their jobs each day and return home to their families safe and sound.
In fiscal 2018, Yokohama R.P.Z. switched over from TS 16949 to IATF 16949 certification.
We also successfully obtained ISO 14001 environmental management certification in December of 2016. Starting from fiscal 2014, we have been contributing actively to the local community through our participation in the Green Wave Project, which aims to enhance the environmental awareness of the younger generation.
In the future as well, we intend to push forward with our aim of becoming a business that can be trusted by our customers, by our employees and by regional society.

Organizational Governance

Compliance

In our operations, we strive to be a company which complies with all applicable Russian laws and regulations.
Through our legal, compliance and internal control department, we undertake regular monitoring of Russian law. Where those actions reveal newly established or revised statutes, we quickly respond by informing both the company’s management team and the relevant business units.
Starting from July 2016, we have been utilizing a whistle blowing system as a tool for anonymous internal reporting; all employees, including new hires, are regularly encouraged to make use of the system.
In fiscal 2017, YRPZ made an effort to strengthen its compliance education. Starting from August 2017, YRPZ’s legal affairs department began to provide compliance-related case studies. These case studies, which cover the most important issues for YRPZ, are being provided on a monthly basis.
A compliance manual has been published, and by March 2018, we were able to have all of our employees follow it.

Human Rights

There have been no instances of human rights being violated as a result of the activities undertaken by the company. Concerning both recruitment and employment conditions, all our employees are treated equally irrespective of their nationality, ethnicity, religion, gender, age and appearance, etc.

Labor Practices

The company has been conducting its activity in line with the following priorities which are of great importance to us: safety (S), the environment (E), quality (Q), delivery (D), and cost (C).

Labor safety

Safety (S) is the highest-priority item. We are constantly striving, through the measures outlined below, to maintain and improve the safety standards on an ongoing basis.

  1. Safety education for employees
  2. Evaluations of safety awareness
  3. Internal inspections relating to occupational health, safety and the environment (conducted daily)
  4. Inspection patrols conducted by the internal safety committee (conducted weekly)
  5. Safety patrols conducted with the President acting in a leadership role (conducted monthly)
  6. Safety meetings (held monthly)
  7. Workplace environment evaluations of working conditions
  8. Provision of personal protective equipment (PPE)

In fiscal 2018, so as to heighten the awareness of employees regarding particular dangers that might be encountered when manufacturing operations were being conducted, we established a “Horror Chamber.” By utilizing such testing equipment that can be used for giving special demonstrations, we were able to show employees particular sets of dangerous circumstances that they might encounter. By doing so, we were able to make them appreciate the outcomes of unsafe behavior.
In 2018, we successfully achieved the goal of having 500 days of operations without any accidents (from August 1, 2017 to December 12, 2018). Following that success, we have immediately established a new goal (of 700 days of operations without any accidents).
We continued to revise the procedure for near-miss reports in fiscal 2018. In October, we also carried out an internal near-miss reporting procedure. During the year, near-miss reports for 4,633 incidents were submitted by employees in response to the original goal of 4,334 reports. Of the reports submitted, for 3,962 corrective or preventative measures were initiated.
Recently, there has been an ongoing process of legal revision whose focus is to ensure the safety of work conducted in high places. In responding to those developments, we have also implemented measures so as to ensure safety. For those employees who undertake such work, in addition to providing them with the necessary PPE, we have had them undergo special training so that they can perform their duties safely.

Disaster response safety measures

Fire-fighting training

In 2018, proactive strategies were formulated to enhance safety in relation to disaster prevention

  • Employee fire-fighting training was implemented throughout the year with respect to every stage in the production process.
  • On June 1 2018, a joint fire-fighting drill was carried out in which all of our employees participated along with the local fire brigade. After its conclusion, consideration was given to the simple recommendations for improvements.
  • In accordance with the revised legal requirements that came into effect in fiscal 2018, purchases of portable fire extinguishers were made, and then they were installed in the company units responsible for the various production processes, as well as in the company’s warehouses.
  • Company representatives took part in special drills that were conducted throughout Russia. The purpose of the drills in question was to prevent the occurrence of accidents and emergency situations.

Promoting health

Employee health promotion has a vital role to play in ensuring safety. Employee health status is checked on a regular basis, and health examinations – both at the time of hiring and on a periodic basis thereafter – are used to implement preventative monitoring. All records of employee health examinations are safeguarded within YRPZ’s on-site medical facility.
The provision of Voluntary Medical Insurance (VMI) is not compulsory under Russian law. YRPZ has continued to provide it to all of its employees since 2017. YRPZ’s VMI program is the best in the Lipetsk Region, both in terms of the scope of its coverage, and the number of medical facilities where employees can make use of it. Through our VMI, employees can receive prompt, high-quality medical treatment, thus get a better chance of making a good recovery.

Education and training

To improve employee specialist skills and knowledge, we undertake to carry out various forms of internal and external training.
Concerning the training conducted within the company, we mainly offer that which deals with work-related health and safety issues.
Training conducted externally also involves the cooperation of consulting companies, and in many cases external instructors are used to ensure that employees receive the best training possible.
This is because the aim of the training is to specialize and enhance employees’ know-how and skills.
Additionally, for those who are interested, we invite a teacher to give English language classes outside business hours. A special allowance is paid to those individuals who took the class and subsequently display a specified level of English proficiency.

Employment of people with disabilities

Since 2017, we have had four disabled persons working at YRPZ as employees.
Each of them is able to receive medical treatment without being subject to discrimination, and has the same opportunities for personal development and improvement as the rest of the workforce.

Improvement of the workplace environment

A labor survey is conducted once each year among all of our employees. In the survey, individuals are asked about the sense of satisfaction that they feel toward their jobs, the sense of loyalty that they feel toward the company, their motivation, and any problems of which they are aware. Based on the survey results, in fiscal 2018 steps were taken to improve the working environment in order to heighten the level of employee engagement.

The Environment

Environmental management

ISO 14001 Certificate

Besides Safety (S), the Environment (E) is also an important issue. YRPZ complies with all environment-related Russian laws and regulations. What is more, we make a concerted effort to be an environmentally friendly company.
As part of normal business, we keep abreast of the nation’s environment laws, and try our utmost to observe all laws and regulations whereby any revisions take place.
In fiscal 2018, YRPZ successfully passed its second external periodic review regarding the ISO 14001 environmental management system, and it was subsequently confirmed that the company would be able to maintain its certification. The next certification review is scheduled for November 2019.

Environmental data

Move the screen to the left or right to see the table information

Category FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Waste generated (t) 717.1 1,344.4 1,196.4 1,165.7 1,211.0
Proportion sent to landfill (%) 0 0 0 0 0
Energy use
(oil equivalent: kl)
Electric power 1,144 4,843 4,530 4,989 5,232
Fuel 9,343 5,271 4,838 4,875 4,918
Total 10,486 10,114 9,368 9,865 9,865
Greenhouse gas emissions (1,000t-CO2) 16.2 19.9 16.8 17.7 18.2
Water usage (1,000m3) 63.4 73.2 54.8 51.5 50.1

Measures for dealing with industrial waste

The disposal of industrial waste is strictly regulated by the Russian authorities. All waste generated by the YRPZ plant, of whatever type, is disposed of appropriately by certified waste disposal contractors.
We are continuing our efforts to reduce the amount of industrial waste generated.
The total amount of waste generated in fiscal 2018 was 1,211 tons, which represented an increase of approximately 3.8% compared to the 1,166 tons generated in the previous year.
That result meant that the amount of waste generated per tire produced was 0.75kg /unit.
In 2018, efforts were made to increase the volume of waste that was recycled. The recycling of paper and cardboard independent of one another was commenced. As a result, between August and December of 2018 we managed to recycle 13,350 kg of paper and cardboard which would have previously been processed as waste.

Disposal of used tires

Under the provisions of Regulation dd 09.04.2016 No. 284 issued by the Government of the Russian Federation, for certain specific products including automotive tires, the responsibility of manufacturers and importers is determined, and whereby such are deemed to be assets that are lost to consumers (having become fully-used products), to ensure that such are reliably disposed of, YPRZ shoulders a responsibility to act in accordance with the regulations. Specifically, the regulations in question present manufacturers and importers of such products with one of two choices. Namely, they can either pay an environmental charge in accordance with a schedule of charges defined by the government, or by themselves or by joining a union of waste processors, they can make guaranteed arrangements for the disposal of such products.
In October 2018, YPRZ joined the Eco Tyres Union (a union of tire manufacturers and importers that voluntarily acts in accordance with the recycling standards set for tires and rubber products). All members of that union concluded a contract with a recycling company to ensure the common recycling of used tires.

Reducing water usage

We have made progress in reducing water consumption, thanks to the implementation of a large number of measures. Overall consumption has been reduced from 51,450m3 in fiscal 2017 to 50,091m3 in fiscal 2018.
More specifically, in 2018 we implemented the following activities to reduce water consumption:

Managing wastewater discharge

The wastewater discharged from YRPZ plant facilities is managed properly using reliable methods before being discharged into the sewer system.
However, as a result of an analysis of wastewater for its environmental risk, YRPZ noted that its risk level needs to be further decreased. Accordingly, in 2018, a plan for the prevention of contamination due to wastewater was implemented, and the following measures are now carried out:

Energy savings

We recognize the importance of energy efficiency, and we are continuing our concerted efforts to make our energy usage more efficient. In particular, in fiscal 2018, we implemented the following energy-saving measures:

The Yokohama Forever Forest Project & biodiversity measures

The recovery of biodiversity

YRPZ aims to be an environmentally responsible enterprise, in that we strive to minimize the negative impact that our production activities have on the environment. In fiscal 2017, we sought the assistance of forestry experts from the Voronezh State University of Forestry and Technologies. In accordance with the instructions received from the scientists, while utilizing traditional Russian methods, we conducted trial plantings of pine seedlings that were selected by the university after having been specially cultivated under natural conditions. YRPZ then cooperated with the university in tracking both the seedlings’ survival and growth rates. Following the winter of 2018, the seedling survival rate was 92%.

Measures for biodiversity

Since YRPZ began participating in the Green Wave Project in 2014, each year we have contributed to the restoration of the biodiversity lost due to production activities. Additionally, we have also continued our efforts to strengthen the environmental awareness of the younger generation. In 2018, we were invited to participate in the Green Wave event that was put on by students of the Voronezh State University of Forestry and Technologies.

Green Wave activities

Green Wave activities

Fair Operating Practices

Internal controls

To prevent misconduct, operations are conducted based on a system of management internal approvals for contracts, purchasing and settlements, etc. Furthermore, internal rules have been established, and checks are carried out by managers, legal affairs and accounting, before approvals are issued by final decision makers.

Selection of business partners

Concerning raw material procurement from new Russian domestic suppliers, we work to handle matters fairly while cooperating with the procurement department of Yokohama Rubber.
When selecting suppliers, we make sure to verify the compliance and reliability of potential suppliers, in order to avoid doing business with firms that are untrustworthy or which are engaged in illegal behavior. To this end, we implement documentary review and enterprise evaluation surveys in advance. As a result, in the period since the YRPZ plant began operation, there have been no instances of signing contracts with suppliers that turned out to be unreliable or engaged in illegal activity.

Consumer Issues

Quality management systems

In fiscal 2018, we have again worked on improving our quality management practices.
In April, we successfully passed the transitional audit from ISO/TS 16949 to IATF 16949 certification. In August, YRPZ was issued with the relevant certification that attests to the suitability of its quality management systems.

Deliveries to original equipment manufacturers

In fiscal 2018 again, we continued to make original equipment (OE) tire deliveries to the Russian factories of Nissan, Toyota, Mitsubishi Motors and Volkswagen.
We are working hard to expand our OE deliveries business. What is more, in fiscal 2018, we were successful in passing all the regular audits conducted by the OE manufacturers.

Strengthening communication with consumers

Based on cooperation with LLC Yokohama Russia which has direct contact with consumers as a sales company, we are working hard to gain evaluative information of products from the marketplace. We are also implementing factory tours and presentations for retailers who are customers of LLC Yokohama Russia.

Community Involvement and Development

Internal activities

On an ongoing basis, the company shall continue to take care in fostering team spirit and a sense of loyalty among employees.

Workplace exercise contest

In November 2018, as part of the company’s efforts to contribute to the physical culture and sport of the Lipetsk Region, we participated in a workplace exercise contest that was held by the local municipality. As an entry, we created a video to demonstrate how employees from different units within the company are exercising at their places of work in the morning. The judges reviewed the 126 videos that were received from various participants in the contest, and winners were selected. YRPZ ended up in third place. As one of the winners, we received a certificate of excellence and a prize winner’s cup. Additionally, throughout the one-month period of the contest, the videos made by the participants were placed online for voting. Our video was one of the ones that obtained votes from more than half of the judges, and favorable evaluations from those who happened to see it. The contest was successful in further strengthening our team spirit, and it also represented a wonderful opportunity to promote a healthy lifestyle among the local community.

Scenes from the workplace exercise competition

Scenes from the workplace exercise competition

Soccer team activities

The YRPZ soccer team

The YRPZ soccer team continues to demonstrate superior performance and attract and excite its fans and spectators. In 2018, the team participated in the local competition, and it managed to win seven of its nine matches, ending up in second place on the ladder. It attracted a lot of attention both from the competition’s organizers and fans in general, for its beauty, passion and refreshing style of play.

External activities

Exhibition of Japanese art

2018 represents a year of intercultural exchange for Japan and Russia. Thus, the company held an event in cooperation with the Lipetsk Chamber of Commerce. At the local museum of oral traditions, an exhibition of Japanese art entitled, “The Beauty of Detail” was held.
The purpose of the event was to introduce Japanese arts and culture to the local population, and to strengthen the cultural and economic links between the Russian and Japanese peoples. Visitors to the exhibition enjoyed the depictions of Japanese beauty, and they were also given the opportunity to purchase pieces that they liked.

For the purpose of cohabitating with the local community, and strengthening ties with neighboring businesses and local organizations, in 2018 as well, we had the opportunity to carry out a number of plant tours for external visitors.
Tour participants included representatives of external companies, university students, children, and visitors from federal authorities including VIPs such as government ministers and other Russian government representatives.
As a listed company, YRPZ has shared many items of news – particularly those relating to important company events – with the mass media, as part of our efforts to strengthen communication with the local community.

YRPZ’s official website

Furthermore, we are also very proactive in our participation in events outside the company, including our involvement in a great variety of regularly held forums, seminars and meetings, etc. Through such activities, in addition to improving our corporate image, we aim to develop positive relationships with external enterprises. In fiscal 2017, YRPZ employees were actively invited to both participate and make presentations at meetings on the environment, safety and hygiene, TPS, and HR.