Production flow of Daido Steel
The production system of Daido Steel has a flow suited to environmental conservation, right from the start, as 91% of the materials, which are mostly iron scraps, are recycled products. To address the problem of exhaust gas in the production process, Daido Steel has switched fuels and improved fuel consumption, thus achieving significant reductions in CO2 and sulfur oxide (SOx) emissions. Coproducts generated in the manufacturing process are effectively utilized through internal recycling and external sales of reproduced products such as base coarse materials.
Investment for Environmental Conservation
The Daido Steel Group has continuously implemented environmental protection measures over many years, including the introduction of dust collection equipment, switching fuels to reduce SOx and NOx emissions, the introduction of continuous casting machines that made it possible to increase yields and omit processes, the introduction of technology to reduce fluorine in wastewater, and the introduction of energy-saving devices such as regenerative burners and cogeneration systems. As of the end of fiscal 2019, such investments have totaled ¥84.6 billion. In fiscal 2019, the main investments made included a refresh of wastewater treatment systems at the Hoshizaki Plant and renewal of the slag aging area and upgrades to dust collectors at continuous casting facilities at the Chita Plant.
Environmental Conservation Costs
The total investment cost of measures taken for environmental conservation during the fiscal years 2018 to 2019 were tabulated, and the results were quantified according to Environmental Accounting Guidelines 2005 issued by the Ministry of the Environment. The results are as follows:
Costs of Environmental Conservation
（One million yen）
| Items | Definitions | Fiscal 2018 | Fiscal 2019 |
| 1. Business costs | Cost for preventing pollution, conserving energy and recycling | 9,957 | 8,493 |
| 2. Up- and downstream costs | Costs arising from green procurement | 281 | 437 |
| 3. Cost of management activities | Costs for operating environmental management systems, environmental training, and on-site greenification | 851 | 884 |
| 4. Cost of environmental R&D | Costs for developing environmentally friendly products | 5,188 | 5,341 |
| 5. Social activity cost | Costs related to off-site nature preservation | 32 | 79 |
| 6. Cost of response for environmental damage | Cost of contributions to projects for preventing damage to health | 733 | 444 |
| Total | 17,042 | 15,678 |