THE ADHESIVE MARKET IN JAPAN AND JAPAN ADHESIVE

THE ADHESIVE MARKET IN JAPAN AND JAPAN ADHESIVE INDUSTRY ASSOCIATION Takayuki　Nogawa　 President of JAPAN ADHESIVE INDUSTRY ASSOCIATION ( JAIA ) Contents 1. Activity of JAIA 2. Statistics of the Japanese adhesive market 3. JAIA’s efforts in the environmental and safety measures 1

2 JAPAN ADHESIVE INDUSTRY ASSOCIATION　 JAIA Establisheｄ in June 1966 Regular Members： 93 adhesive manufacturers 　　 （About 75％ of whole industry）　 Associate Members： 38 suppliers (Raw materials, equipment, etc. ） 7　Key Words Ｅｎｖｉｒｏｎｍｅｎｔ Ｓａｆｅｔｙ Ｑｕａｌｉｔｙ Ｓｔａｎｄａｒｄ Ｉｎｆｏｒｍａｔｉｏｎ Ｅｄｕｃａｔｉｏｎ Ｓｙｍｂｉｏｓｉｓ

3 MAIN ACTIVITIES OF JAIA 1．Production statistics 2．Promotion of standardization(JIS/JAI) 3．Certification of adhesives 　・ Certification of non-formaldehyde （F☆☆☆☆ ） 　・ Certification of 4 VOC Criterion 4．Environmental safety measures 5．Educational activities regarding adhesives 　・ Adhesive Technology School, lectures, etc. 6． International communion 7． Other activities

4 ADHESIVES SALES BREAK DOWN BY TYPES Adhesive type Formaldehyde resins Sales Volume　　　　　(Unit : tons) 2006 2007 2008 2009 2010 286, 794 285, 810 250, 224 215, 917 202, 178 50, 012 50, 270 46, 419 40, 419 42, 453 Waterborne 355, 504 265, 771 231, 944 204, 908 217, 249 Hot -melt 111, 629 100, 092 100, 228 94, 136 98, 862 Reactive 95, 994 111, 409 106, 083 93, 698 92, 456 129, 947 130, 149 115, 966 126, 072 118, 069 52, 403 49, 593 48, 295 43, 829 39, 054 1, 082, 283 993, 094 899, 157 818, 979 810, 321 Solvent-based Pressure-sensitive Others Total

5 ADHESIVES SALES BREAK DOWN BY TYPES Unit : tons 1, 200, 000 1, 000 800, 000 Others Pressure-sensitive Reactive 600, 000 Hotmelt Waterborne Solvent-based 400, 000 Formaldehyde resins 200, 000 0 2006 2007 2008 2009 2010 5

6 ADHESIVES SALES BREAK DOWN BY TYPES Unit : tons 400, 000 350, 000 300, 000 250, 000 Formaldehyde resins Solvent-based Waterborne 200, 000 Hotmelt Reactive 150, 000 Pressure-sensitive 100, 000 50, 000 0 2006 2007 2008 2009 2010

7 SALES BREAK DOWN BY TYPES Sales Amount ( Billion JPY ） Adhesive type 2006 2007 2008 2009 2010 Formaldehyde resins 22. 3 24. 3 19. 3 18. 5 16. 7 Solvent-based 22. 1 24. 5 25. 3 21. 8 25. 8 Waterborne 61. 5 48. 9 49. 7 40. 0 43. 9 Hotmelt 44. 6 45. 4 44. 7 43. 0 48. 7 Reactive 63. 4 73. 8 75. 6 68. 2 74. 2 Pressure-sensitive 35. 5 37. 7 26. 2 26. 7 31. 1 Others 22. 8 22. 7 21. 7 19. 3 19. 9 272. 2 277. 3 262. 5 237. 6 260. 3 Total

8 SALES BREAK DOWN BY TYPES Billion JPY 300. 0 250. 0 200. 0 Others Pressure-sensitive Reactive 150. 0 Hotmelt Waterborne Solvent-based 100. 0 Formaldehyde resins 50. 0 2006 2007 2008 2009 2010

9 SALES BREAK DOWN BY APPLICATION (Unit : tons) 2006 2007 2008 2009 2010 Plywood/Woodwork 347, 557 337, 603 307, 395 258, 391 248, 788 Construction 173, 885 179, 951 163, 469 165, 396 137, 320 Packaging 158, 858 160, 994 131, 519 112, 223 104, 871 Paper & Book Binding 44, 727 43, 370 37, 060 35, 628 37, 492 Textile 47, 290 52, 295 59, 163 51, 656 51, 547 Transportation 69, 327 70, 862 65, 891 52, 754 58, 321 Shoes, rubber &Leather 4, 067 4, 071 3, 281 2, 343 2, 637 31, 196 32, 733 11, 207 34, 447 47, 974 6, 258 5, 373 5, 551 5, 087 5, 518 Others 155, 831 60, 900 72, 901 67, 239 82, 551 Export 43, 287 44, 943 41, 721 33, 815 33, 302 TOTAL 1, 082, 283 993, 094 899, 157 818, 979 810, 321 Electric Machinery Household

10 SALES BREAK DOWN BY APPLICATION 1, 200, 000 1, 000 (Unit : tons) Export Others 800, 000 Household Electric Machinery Shoes, rubber &Leather 600, 000 Transportation Textile Paper & Book Binding Packaging 400, 000 Construction Plywood/Woodwork 200, 000 0 2006 2007 2008 2009 2010

11 JAIA ACTIVITY FOR ENVIRONMENT AND SAFETY Recent Important Activity Technical Committee ・ Negative List of food packaging adhesives (5 th Edition) Environment and Safety Committee ・ Preparation of a model MSDS conforming to GHS requirements. ・ Edition of Q&A of REACH. ・ JAIA Guideline for the quality labeling of household products, required by the law. VOC Committee ・ 36% reduction of VOC used in adhesives, in 8 years from 2003. ・ Publication of survey result of indoor air pollution by VOC in adhesives 　　　 Edition in 2006, 2 nd Edition in 2008 and 3 rd Edition in 2010 1 st ・ Voluntary Registration System for qualified adhesives.

12 unit : ton Solvent-based sales vol. VOC discharge vol. 60000 600 Solvent-based ▲ 22％　 compared with 2003 50000 500 VOC 40000 400 300 ▲ 36％　 20000 200 compared with 2003 10000 0 2003 100 2004 2005 2006 2007 2008 2009 0 2010

13 JAIA ACTIVITY FOR EDUCATION Educational Committee Adhesive Technology School (1) Woodwork/Building Material Course (2) Construction Course (3) Paperwork/Packaging Course (4) Metal/Composite Course (5) Plastics Course 　　　　 (Plural course attendance is accepted. ) 　 　・ of Graduates of the school ： 6807 persons No. 　・ of Adhesion Managers ： 5143 persons　 No.

14 REGISTRATION　　 SYSTEM OF JAIA (AS OF AUG. 2011) 1. Non-Formaldehyde　Products(F☆☆☆☆) 　　 ・Implemented in July 2003 ・Open to　non-members ＆overseas companies 　　・Current number of registration: 10506 items filed by 77　 　　　　companies　 (including 40 non-members and 2 overseas)　　　 2. 4 VOC ( JAIA-4 VOC Approval ) 　 ・Implemented in April 2008 　 ・Open to non-members & overseas companies 　　　　 　・Current number of registration: 4493 items filed by 58 companies 　　　　　　（including 2 non-members, No overseas 　 　　　　company ） So far no problem and dispute, caused by the registration system.

15 　FORMALDEHYDE EMISSION　CLASSIFICATION 　　OF CONSTRUCTION MATERIALS (JULY 2003)　 Labeling Emission　Rate mg/m 2・h Indoor installation　 F ★★★★ F★ 　<5. 0 　5. 0~20 　20~120 　>120 No limit Limited Banned Only F ★★★★ is registered by JAIA.

16 CONTROL CONCENTRATION OF 4 VOC IN ADHESIVES ※ 1 VOC Guide line μg/m 3　 　 ※ 3 JAIA Control ※ 2 ER μg/m 2・h Concentratio n (wt　%) Remarks Toluene 260 38 <0. 1%　 EVA Emul. <0. 05% Xylene 870 120 <0. 1%　 　 Ethylbenzene 3, 800 550 <0. 1%　 　 Styrene 220 32 <0. 015% SBR ※１　Ministry of Health, Labor and Welfare：Concentration in indoor atmosphere ※２　VOC Emission Rate Control Level for Construction Materials ･･・・ Japan Testing Center for Construction Materials ※３　Measurement Method：JAI 16（Japan Adhesive Industry Association Standard）

17 JAIA 4 VOC REGISTRATION PROCESS YES Raw materials 4 VOC <0. 1% Vessel/Strainer/ Filter 4 VOC<0. 1% NO 4 VOC Concemtration　 Determination NO YES 4 VOC Conc. <0. 1% NO ＪＡＩA ４ＶＯＣ　 Registratilon Rejection

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