Tooru Moriki

Suzhou is famous for its rice, tea and freshwater crabs, known as Shanghai crabs in Japan, as well as its abundance of fish. Thus, many people from Japan also come here on sightseeing tours.
The plant began operations in 2008 as a truck and bus tire plant and added passenger car tire production in 2014.
In 2017, the TB factory finished producing tires for trucks and buses, and has since been renovated into a tire factory for passenger cars.
Our production capacity has been increased to 20,000 units per day. Cumulative production reached 32 million units by 2024.

Our goal is to be a company that coexists in harmony with the local community by engaging in activities that contribute to the local community and take root in the community in this rich land. On the other hand, due to its affluent location, it is highly sensitive to the environment and its regulations are much higher than Japan's. Environmental measures for odors and VOCs are required at a high level. In addition, we will continue to participate in the release of fry into the lake, continue our tree planting activities in the Forever Forest, and promote biodiversity activities in the region.

Through our health and safety activities, we will help our employees feel that their safety is a family's happiness, and all of us will strive to become a company that is admired and trusted by everyone to achieve the goal of "becoming a “company that is attractive to both employees and regional communities.”

Workplace communication

Within the company, corporate decision-making is conducted through the holding of key meetings (including management meetings, cost meetings, safety meetings, environmental meetings, quality meetings, meetings of the human resources committee, minister's meeting, section chief's meeting, general manager's meeting, field morning meeting and CSR education) on a periodic basis.

CSR education

We are committed to upholding the highest ethical standards. To this end, we conduct annual compliance and ethics training for all employees to enhance their adherence to compliance standards. We also create quarterly legal and regulatory training reports to promote legal knowledge. Monthly CSR training is provided to managers at the section chief level and above, highlighting our commitment to corporate social responsibility. Furthermore, this year, we invited prosecutors from the local Procuratorate to provide training on preventing embezzlement and commercial bribery for employees at the supervisor level and above.

Grievance resolution

January 2024: The renovation of the vulcanization and calendering processing equipment at Factory 1 was fully completed.
May 2024: The maintenance and upgrade of the exhaust treatment system for vulcanization and calendering at Factory 2 was finalized.
July 26, 2024: We commenced the Regenerative Thermal Oxidizer (RTO) replacement project at Factory 1, which was completed and officially commissioned on November 11, 2024. This resulted in stabilized VOCs levels averaging 1.06 mg/m³, well below the national standard of 10 mg/m³.
December 11, 2024: The RTO replacement project at Factory 2 was initiated and became operational on May 7, 2025. Centralized processing of factory emissions ensures that airborne VOCs remain below national standards.

These enhancements to our environmental treatment facilities have significantly reduced our environmental impact. Furthermore, the improved exhaust systems have mitigated heat dispersion within the factories, creating a more comfortable and productive working environment for our employees.

Building a safe, healthy workplace environment

Slogan: Personal safety, family happiness (my safety is my family’s happiness)
We also passed an external audit for ISO 45001.
In 2024, we focused on safety measures for large winding devices to reduce the risk of serious accidents.
We also implemented noise reduction measures for equipment that can cause occupational diseases (hearing loss).

These enhancements to our environmental treatment facilities have significantly reduced our environmental impact. Furthermore, the improved exhaust systems have mitigated heat dispersion within the factories, creating a more comfortable and productive working environment for our employees.

1. In FY2024, 16 new work standard documents were created and 235 were reviewed. 11 new Fault Handling Procedures documents were created and 21 were reviewed.
2. Open work observations were conducted 11 times. Internal work training was conducted 192 times.
3. The deployment of internal occupational accidents and those at other plants totaled 205 cases, and 1269 measures were implemented.
4. In risk assessments related to potential occupational accidents, we identified 71 Level III risks and implemented improvements (1 Level V risk and 52 Level III risks have been resolved).
5. To strengthen management of subcontractors, we conducted training for contractors three times (total of 43). We awarded a certificate of qualification for construction safety supervisor from our company.

We are improving the level of safety management through the continuous implementation of initiatives such as KYT, near-miss submissions, one-on-one education, periodic risk assessment, work observation and training, and review of work standards.

Labor safety and health

In accordance with China's national regulations, all employees who join, are enrolled in, or leave the company undergo occupational disease medical examinations, as well as workplace environment measurements and heat stroke training.
There will be no outbreak of occupational diseases in FY2024.

Labor relations

The company holds regular meetings with the labor union for the exchange of views.
We were awarded as an excellent company in Suzhou labor-management relations in 2024.

Human resources development and training

1. Three-level safety training (plant/department/process level) is conducted for new employees, to certify them to work alone.
2. Improved the level of KY implementation in key sections (pilot program in the Maintenance Section).
3. In safety education, occupational disease risks were educated to occupational health staff in each division.
4. Safety training for section managers to general managers was conducted. (4 times).
5. Special fire prevention training was conducted. (For all employees. Safety personnel from outside contractors and resident contractor personnel also received training.)

Responses in case of disaster

We have an emergency contact system and first aid plan for safety incidents. In the event of a disaster, the emergency contact system is used to report to the general manager.
The first aid plan is immediately activated to deal with the disaster.
Each section conducts first aid drills. The contents of these drills include falling from a height, getting caught in a vehicle, collision with a towing vehicle, chemical leakage, etc. A total of 65 drills have been conducted.
In 2024, evacuation drills against fire were conducted 4 times and fire drills were conducted 4 times.
Firefighting drills were conducted for resident subcontractor personnel, including security guards, cafeteria staff, and cleaning staff.

Managerial diversity

Managerial positions are filled not only through internal promotion from within the company, but also through outside recruitment. Currently, out of 17 managers, there is 1 female department head and 2 female section managers.

Employment of people with disabilities and promotion of employee diversity

There is a legal requirement that at least 1.5% of a company’s employees must be people with disabilities. Currently, CSZY has 1 employees with disabilities. CSZY does not discriminate on the basis of gender in its recruitment and treatment of employees.
Of the total workforce of 840 employees (as of December 31, 2024), 90 were female employees.

Environmental management

We have set out an environmental policy and comply with laws and regulations related to environmental protection, save resources, and implement preventive measures against pollution. In order to become a plant that is trusted by local communities, we operate an environmental management system, ISO 14001:2015, and are making improvements to our environmental facilities in consideration of the environmental impact on local residents.

Environmental data

• FY: January to December
• Greenhouse gas emissions were calculated based on the Calculation and Reporting Manual for Greenhouse Gas Emissions jointly published by the Ministry of the Environment and the Ministry of Economy, Trade and Industry, Japan. Calculation of emissions from overseas business locations in FY2015 was based on the Greenhouse Gas Protocol Initiative.

Reporting on chemical substance management status (Pollutant Release and Transfer Register (PRTR) Law compliance)

Chemical substances are managed in accordance with the chemical substance management regulations of the Plant prepared according to the laws.
We have prepared the oil and chemical management guideline CSZY-EPD-017R03.

Noise and emissions

We conduct measurements two a year in accordance with the regulations of the regional government. With respect to all measurements that have been taken thus far, the environmental regulation values on all items fall within the specified scope.
As a result of both the national “Action Plan for Winning the Blue-Sky War,” and the three-year emission controlplan put forward by the Suzhou National New & Hi-Tech Industrial Development Zone, the regulatory environment regarding emissions has stiffened. In undertaking our business activities, the company has worked together with the Suzhou City administration in order to meet such demands.
Noise measurements are conducted four times a year. All standards have been met.

Environmental activities

In 2024, we participated in activities to release fish into Lake Taihu and to plant trees in a carbon exchange public forest. Within the company, we carried out biodiversity activities (twice),YOKOHAMA Forever Forest seeding activities (once), and pot sharing activities (once),Trash Pickup (once).

On March 30th, 8 employees and family members participated in an activity organized by the Environmental Protection Association to release fish into Lake Tai.

On March 10h, we participated in a tree-planting activity at the Carbon Exchange Public Forest organized by the Environmental Protection Association, with 14 employees and family members participating and donating 100 seedlings.

On March 15th, new employees sowed seeds in the Forever Forest and divided the seedlings into pots, with 15 people participating.

On June 16, 2024, the Environmental Protection Bureau and Taihu Wetland Park jointly organized a biodiversity survey of the Taihu Wetland, with the participation of three families.

On June 28, 2024, we conducted our 16th annual biodiversity survey, with 12 new participants joining the effort.

On October 31, 2024, we conducted a cleanup campaign centered around Factories 1 and 2. Twenty managers (section chief level and above) participated, collecting a total of 139 kg of trash and scrap materials.

On November 29, 2024, we held our 17th internal biodiversity survey, with 15 new employees participating.

Corruption prevention

We ensure that all operations are performed according to regulations and appropriately through designated personnel and regular audits.
We have established internal and external reporting channels for anonymous reporting by employees and suppliers.
We continuously strive to foster a culture of legal compliance and integrity through compliance training and internal communication.

Responsible participation in political affairs

At each meeting, relevant departments will report any amendments to laws, rules and regulations.
The General Accounting Office examines contracts and matters that require legal knowledge from a professional perspective, and then consults with a lawyer.
We regularly collect laws related to company management and send them to relevant departments to ensure that they do not violate laws.

Fair competition

We have formulated and published competition law compliance regulations and provide open, fair and impartial transactions to domestic and overseas suppliers who wish to do business with us.

Promotion of social responsibility within the company’s scope of influence

We require our suppliers to engage in green purchasing and research.

Respect for intellectual property rights

All software used in the company is genuine.

Ensuring product quality and product safety

In line with our quality policy of “Providing consistently high- quality products so that customers all over the world can purchase our products with complete peace of mind,” we implement our quality management system effectively in accordance with the IATF 16949:2016 standard and customers’ requirements.

1. We successfully passed all 20 external audits, meeting customer requirements.
   ・OE Audits: Primarily from domestic Chinese automotive manufacturers.
   ・REP Audits: Commissioned by TUHU, supervised and passed by TUV.
   ・Certification Audits: In addition to CCC certification, we underwent our first certification audit in Thailand.
2. Our PFMEA improvement activities are ongoing, with 32 completed in 2024.
3. Corrective and preventive action (CAPA) improvement activities were completed as planned.

Improving after-sales services and customer satisfaction

To meet tire appearance quality requirements in the domestic market, CSZY and CHZY in the China Group have established unified and stringent tire appearance standards, improved inspection proficiency, SOP compliance, and reduced miss rates to satisfy customer needs.
With the continuous development of the factory, equipment hardware, software, operation methods, and processes are constantly changing, as are measures against past quality accidents. To prevent recurrence, we comprehensively verify the effectiveness of traditional PYB measures and past customer complaints/process anomalies to ensure continuous and effective operation of countermeasures.

Education and awareness-raising

To enhance the quality awareness of all personnel, we implemented the following measures at each process, once per shift: Quality Foresee Training (QFT), activities to ensure correct understanding and adherence to rules such as SOPs, process improvements from the customer's perspective, and quality site visits by the General Manager.
In May, we conducted quality awareness training for foremen/team leaders. In November, we provided quality fraud prevention training for all employees. Furthermore, as part of our Quality Month activities, we implemented the following: ① Quality Skills Contest, ② QYT Contest, ③ Quality Patrol by the General Manager, ④ Quality Day Activities, and ⑤ On-site Quality Supervision and Education.

Participation in local environmental activities

On March 10, 2024, we participated in a carbon exchange public tree planting activity sponsored by the Environmental Protection Association.
On March 30, 2024, we participated in an activity to stock fish into Lake Tai, sponsored by the Environmental Protection Association.
On June 2, 2024, 15 families participated in an environmental protection event co-organized by the New District Environmental Protection Bureau, the Environmental Protection Association, and YOKOHAMA.

On June 5, 2024, we participated in the first electronic waste recycling activity in the High-Tech Zone, organized by the New District Environmental Protection Bureau and the Environmental Protection Association.

Plant tours

Applications for plant tours are accepted at any time by the Administration Department in accordance with the "Rules for Accepting Visitors”.