Corporate Prof i le - KITZ...that are out of sight. These locations include places where water...

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Corporate Prof ile E-001=19 1407Printed in Japan

Transcript of Corporate Prof i le - KITZ...that are out of sight. These locations include places where water...

Corporate Prof i le

E-001=191407②

Printed in Japan

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Dependable supply of water to any location.

Uninterrupted supply of oil and gas.

Precision control systems for clean environments.

The KITZ Group helps enrich our world by producing

precision valves to control the flow of water, air, oil and gas,

all the fluids we need to sustain our industries,

our communities and life itself with.

KITZ professionals are in a constant state of challenge,

designing and directing the science of fluid flow control to

provide products and services that exceed customer

expectations, to create innovations that will encompass

new fields and new applications throughout the world and

to help conduct the flow of civilization into the future.

“We want to offer the highest quality products to industrial

facilities throughout the world. As we make this

happen, we will be able to see a brighter and broader future.”

(Sales Department)

Doing Our Part Today

Creating the Future

“We have intend to continue being a company that is indispensable in the continuously evolving semiconductor industry.”(a Group company)

“There's a whole world of craftsmanship and advanced

technology in KITZ valves.They are part of the unseen

lifeline that keeps the world moving every day.”

(Engineering Department)

“I would like to see KITZ become a model company, one that is trusted by people throughout the world.”(Sales Department)

“We are doing all we can to make sure our people can enjoy a working environment that is free of strife, where KITZ is always in harmony with other people around the globe.”(Environment Enhancement Department)

“I want to make the KITZ brand recognizable to more and

more people and to raise the image of our brand

worldwide.”(PR & IR Department)

“The KITZ Group’s most treasured

assets are its employees. No matter what, we intend to

remain a company that places the highest value on our people.”

(Human Resources Department)

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KITZ, the Professionals in Fluid Flow Control —Ceaseless Effort in Dedication to Quality

M e s s a g e f r o m t h e P r e s i d e n t

Everything we do is for “higher quality”Toshio Kitazawa founded the Kitazawa Factory (currently KITZ

Corporation) in 1951 at a time when Japan was changing over

from the chaotic aftermath of the postwar era to the approaching

era of high growth. With its head office in Tokyo and a factory in

Nagasaka, Yamanashi Prefecture in Japan, the new company

began manufacturing bronze valves.

Toshio Kitazawa’s founding principle was “Manufacture better

products at lower cost and with timely delivery.” Guided by this

principle, the Company positioned integrated production as the

basis of its operations and started its own foundry for copper alloy

castings, the basic material of valves. Because castings need

sophisticated manufacturing technologies and large-scale

facilities, even in today’s valve industry there are very few

manufacturers that produce their own castings.

We also built a system that carries out all production processes

under the same roof, from casting through machining, assembly,

testing, inspection, coating and shipment, and we have built

national and global networks that provide customers with precise

sales service and post-sale follow-up. This structure has enabled us

to achieve prominent management quality through outstanding

technological competence, cost competitiveness and timely

delivery. Our insistence on “higher quality” has been upheld and

passed down as the headstream of all the KITZ Group’s activities.

One of the world’s leading all-round valve manufacturers Valves are used to control the flow of water, air, gas, petroleum

and many other fluids to maintain our daily lives and support

industries around the globe. Our valves are often set in locations

that are out of sight. These locations include places where water

continually flows, ranging from water purification plants to

domestic or industrial plumbing and sewage treatment systems;

office buildings and hotels, where operation of ventilation and air

conditioning systems is essential; and hydrocarbon industries such

as oil and gas production and transportation facilities, petroleum

refineries, petrochemical plants and power generation plants, just

to name a few.

The KITZ Group has grown to become one of the world’s

pre-eminent corporate groups, building up a solid position as an

all-round valve manufacturer that provides a wide variety of fluid

flow control devices. Many valve manufacturers work only for a

specialized product range or limit the kind of valve materials to

just a few. In contrast, the KITZ Group handles more than 90,000

types of valves and other fluid flow control devices that are

available in diversified designs and made of many kinds of material

including copper alloy, iron, ductile iron, carbon steel, low-to-high

alloy steel and stainless steel ranging from austenitic stainless steel

to super duplex stainless steel.

Increasing earning power through Group synergyBesides the internationally recognized KITZ brand, the KITZ Group

also possesses numerous brands that feature unique technologies,

know-how and products that offer a total solution to diversified

customer needs. While each group operation offers its own

distinctive brand and products, we also work as a group to provide

our customers with products, technologies and services offered by

the group member companies in a package to maximize the

synergy effect while increasing earning power.

Creating added value that exceeds customers’ expectationsWith the concept “Insist on higher quality” as its backbone, the KITZ

Group adheres to its Corporate Mission that we are dedicated to

continually enriching our corporate value by offering originality and

quality in all products and services that will result in positive

contributions to the prosperity of the world.

We believe that “originality and quality in all products and

services” entails not only satisfying customers’ needs and solving their

problems but also creating added value that exceeds customers’

expectations. Besides favoring customers with products and services

of higher value, we also regard it as our social mission to contribute to

an enriched society in which people can live with a sense of

reassurance by supporting their lifelines through the dependable

supply and maintenance of valves and other fluid flow control devices

handling water and gas.

Constructing a structure for becoming a truly global companyThe KITZ Group is making important strides in expanding its bases

and strengthening its marketing strategies in global markets. We

have designated three key regions and two important countries

(Europe, the Americas, ASEAN, China and India) as priority areas

and have set up regional headquarters in each area to accelerate

management decision-making. At the same time, by combining

sales, engineering, maintenance, inventory control and other

functions, we are structuring locally completed organizations for

the provision of appropriate, timely services to customers, aiming

to join the ranks of the world’s top three valve manufacturers in

the future.

In aspiring to become a truly global company, our most

valuable management resources are naturally the people working

in the KITZ Group. To cultivate “global human resources” who are

able to think and act from a global perspective, we will enhance

our human resource development programs beginning with

language training. Concurrently, through career rotations and

personnel exchanges within the Group, we will vitalize our people

and organizations and build a corporate culture in which our

employees will keep themselves motivated to enhance the

solidarity of Group operations.

In moving forward as well, as professionals in fluid flow

control, the KITZ Group will create high value and continue to

provide products and services that contribute to customers, local

communities and the global environment.

1951The Nagasaka Plant begins operation in Japan with just 12 employees in a small workshop, not a full factory.

1962Japan’s first forged brass valves called FH and FS introduced.

1984Listed on the First Section of the Tokyo Stock Exchange.

1980An ergonomically designed handwheel, popularly known as the “CHRYSANTHEMUM-HANDLE ,” the corporate symbol, introduced for cast bronze valves.

1992Head office relocated from Tokyo to newly built offices in Chiba City. Renamed KITZ Corporation from Kitazawa Valve Co., Ltd.

2004Toyo Valve Co., Ltd., another well-known Japanese valve manufacturer, joins the KITZ Group.

2009German ball valve manufacturer Perrin GmbH joins the KITZ Group.

Yasuyuki HottaPresident and CEO, KITZ Corporation

Graduated from Keio University Faculty of Law

in 1978 and entered Kitazawa Valve Co., Ltd.

(currently KITZ Corporation) the same year.

Subsequent to postings in the United States

and Malaysia, he served as General Manager of

the Chubu Office in Nagoya and of the

Nagasaka Plant. He became Managing Director

of KITZ SCT Corp. in 2001 and its President in

2004. In 2006, he was appointed Managing

Executive Officer of KITZ Corp. and General

Manager of the Valve Division. In 2007, he

became Senior Managing Executive Officer and

then has assumed his current position in 2008.

He is a native of Nagano Prefecture.

P r o f i l e

H i s t o r y

®

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Water: The Source of Life—— Bringing Renewed Confidence to Water Usage ——

Water is the source of life and essential for sustaining all

lives on the earth. The KITZ Group helps to make people’s

daily lives more comfortable by supporting stabilized water

supply through its safety-conscious products and services.

The KITZ Group’s history began with water products.

Since we started producing bronze valves in 1951, we

have been supplying water service valves that control

distribution of water to homes, buildings and industrial

facilities. Our products are now installed in waterworks,

water reservoirs, sewage plants and water pipelines as

well as millions of homes.

We also forged ahead with technological

advancement in the water business, introducing new

products such as water purification devices for home

use and super duplex stainless steel valves for water

desalination plants in the Middle East.

KITZ is proactively developing technologies that

conform to international water quality standards. An

example is KITZ surface treatment technology that

protects elution of nickel and lead from valves and

faucets. Another is lead-free copper alloy used for home

faucets. The KITZ Group is seeking new solutions for

various water-related problems by harnessing the

Group’s combined capabilities, utilizing every group

member’s experience, know-how, technologies,

products and services.

Apartment houses

Houses Pools and hot springs

Water source Water purification plants

Water supply and distribution facilities

Sewage plants

Drainage systems Water distribution lines

Water purification devices

Pumps

Used for water sources and purification systems. Compact designs with precision membrane filters to upgrade quality of tap water.

Resilient seated gate valves

Widely used for water supply and distribution pipelines. Extensive product range including flange-type designs and aseismatic designs.

Water conditioners for commercial applications

Unique water conditioners sterilize bacteria and decompose organic materials to chemically improve water quality for application to swimming pools, hot springs, fish farms and metal plating processes where water needs to be recycled.

Valves for sewage plants

An extensive lineup of valves including gate valves and ball check valves that are essential for treatment of sewage water.

A broad choice of products including shutoff valves, metal fittings and snap taps for branching tap water pipes.

Products for water distribution systems

Made of special chemical ingredients to minimize or eliminate lead elution into tap water for protection of human health.

Valves for water supply systems

Hollow fiber membranes purify tap water. Available in the counter tap type and the under-sink type.

Tap water filters for home use

Designed for easy installation on compact, space-saving type for water heaters.

Valves for water heaters

A pre-assembled unit comprised of a water meter and fittings to simplify water pipeline installation works.

Water meter units

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Oil refineries and petrochemical plants

Crude oil and natural gas excavation locations

Thermal power plants Hydrogen gas stationsCNG stationsLNG terminals and

transportation facilities

Crude oilGasoline and petrochemical products

Liquefied natural gas (LNG)

Reputed well due to high cost performance and availability of a variety of materials including low and high alloy steel for high temperature, high pressure services.

Stainless steel valves

Available with various alloy steel including super duplex stainless steel. In recent years, their market has been expanded to light industry and building construction business, thanks to their high cost performance.

Pneumatic and electric actuators mounted gate, globe, ball and butterfly valves for automated operation.

Automated valves

Stainless steel gate, globe and ball valves specifically designed for handling industrial low temperature fluids as low as -196oC including LNG and ethylene.

Cryogenic and low temperature service shut-off valves

Stainless steel globe valves designed for automated precise control of flow rate for industrial low temperature fluids, under technical collaboration with Valtek Inc. USA (currently Flowserve Corp.)

Cryogenic and low temperature service control valves

Comprised of a fully-welded forged steel shell with double seals in all seal assemblies to guarantee leak-free control of fluid flow within pipelines.

Fully-welded type pipeline ball valves

Introduced for filling environmentally friendly fuel to FCVs, the next generation of automobiles.

Ball valves for hydrogen gas and CNG stations

Carbon steel valves

Specifically prepared for severe service plant operations handling high temperature, highly corrosive fluids.

Three-piece trunnion mounted ball valves

Introduced for a broad range of applications in petrochemical processing and chemical plants where periodic valve maintenance is essential.

Metal seated ball valves

Oil and Gas: The Valuable Energy Resources for Industry-running

—— Providing Oil and Gas to Users in an Endless Stream ——

The KITZ Group provides a wide scope of products that

play a key role in maintaining the flow of oil and gas—

essential energy resources—to oil refineries, petrochemi-

cal plants, chemical plants and innumerable other

industrial processes through oil and gas pipelines,

loading/off-loading terminals and other modes of

transportation.

For handling oil and gas, valves must be able to

withstand severe conditions like extremely high

temperatures and pressure with no possibility of failure.

Before introducing any new product, the KITZ Group

repeats stringent laboratory tests, analyses and evaluations

based on actual on-site service environments. Only those

products that have passed such verification procedures are

added to our product lineup. The KITZ Group’s steel valves

are in great demand for their reliability in the Middle East

as well as along the U.S. Gulf Coast, where many of the

world’s largest petrochemical processing plants are being

operated. Many of our cryogenic service valves are

installed at LNG loading/off-loading terminal processes in

many locations, while fully-welded design ball valves

efficiently serve natural gas transportation.

The KITZ Group is also investing its resources in the

development of environmentally friendly products. We

were the first in Japan to develop ball valves for hydrogen

stations that feed high-pressure hydrogen gas to fuel cell

vehicles (FCVs), an important part of the next-generation

transportation media.

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Stove burners Water faucets

Semiconductor manufacturing facilities Plant facilities

Service Sector Brass Bar Business

Ideal for water pipelines of semiconductor plant processes with concern of acid and alkali contaminants, with their highly corrosion-resistant PPS covered stainless steel discs.

Aluminum butterfly valves with PPS discs

Featuring extra high durability with a choice of the stainless steel diaphragm valve series or the bellows seal valve series.

Valves for high purity gas service

For handling ultra high purity chemical solutions and pure water within in-process piping systems.

PFA valves and weld fittings

Recognized for years of incomparable supply records in the market of housing and building utilities, sanitary and medical installations and in-process pipelines of various factories.

Bronze and brass valves

Designed for pneumatic or electric operation of compact ball valves for small-sized in-process piping systems for light industries.

Actuated compact ball valves

Recommended for micro-filtration of chemical solutions, compressed air and water, with our ultra-micropore hollow fiber membranes.

Industrial filters

This hot spring resort hotel is located within a magnificent natural setting on the shore of beautiful Lake Suwa in Nagano Prefecture, Japan, serving as a place for relaxation for tourists as well as for local residents.

Hotel Beniya

This factory manufactures and sells brass rods with lead-free and other types of chemical compositions for forged valves and machined components. It also provides machine-processed components and forged brass products to a large number of customers in the water treatment, consumer electronics and automobile industries.

Brass rods, machine processed components and forged brass productsKITZ Metal Works Corporation

Our brass rods are processed into a variety of parts and widely utilized in various fields.

Brass Bar Manufacturing Business

Valve Manufacturing

Business

Other (Service Sector)

Working for a Safe, Prosperous Society—— Making Things People Need for a Comfortable and Rewarding Lifestyle ——

Besides supplying water and energy, the KITZ Group’s

valves play a diverse role in making people’s daily lives

more comfortable and pleasant. The scope of

applications includes housing and building utilities

such as heating, ventilation, air conditioning and

sanitary accommodations, to name a few.

Pharmaceutical plants, paper and sugar mills, food

and beverage factories and other places that produce

housing materials and house-hold appliances depend

greatly on our products. Other industrial facilities also

rely on our wide selection of valves.

The KITZ Group is also involved in producing brass

bars and operating consumer service businesses.

Our brass bar manufacturing business started with

production of brass rods, as valve materials, but we

now produce a variety of brass rods tailored to different

business fields, including stove burner components and

water faucets. We also manufacture completed brass

products like flare nuts and hose nipples. In the service

sector, we operate a hotel and restaurants in Suwa City,

Nagano Prefecture, Japan. KITZ service operations are

dedicated to offering our customers and guests

complete, fine-tuned facilities and services.

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KITZ—A Reliable Brand

Focus on Strength

B r a n d s

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Toyo Valve was the first company in Japan to manufacture valves. It joined the Group in 2004. The products are highly reputed in building utilities and fire prevention markets.

URL http://www.toyovalve.co.jp/en/

Since its foundation in 1951, KITZ has combined first-class product quality with a fully integrated production system. As an all-round player, KITZ provides countless product items worldwide, with particular strength in building utility markets and petrochemical processing industries.

URL http://www.kitz.com/

Miyoshi Valve focuses on building utilities markets centering on water supply systems. Valves for turbo refrigeration units and regenerative air conditioning units are its unique products. Miyoshi Valve joined the Group in 1999.

KITZ Corporation of Europe works on a variety of carbon and stainless steel ball valves branded KITZ for the international market and ISO mainly for the local market in Spain and Europe. KITZ Corporation of Europe became part of the Group in 1991.

URL http://www.kitzeurope.com/

KITZ Micro Filter works on industrial precision filters and water conditioners. It was established when KITZ’s micro filter business was spun off to operate an independent company in 2004.

URL http://www.kitzmf.com/english/

YKV was incorporated in 1988 as a joint venture of KITZ Corp.; Yokogawa Electric Corp., an instrumentation device manufacturer; and U.S.-based Valtek Inc. (currently Flowserve Corp.), famous for control valve technologies. YKV produces control valves for various applications.

URL http://www.kitz.co.jp/ykv/

Perrin is specialized in metal-seated ball valves used in severe applications of petrochemical processing and chemical plants where corrosion and abrasion resistance is a critical requirement for valves. Perrin joined the Group in 2009.

SGS’s products range from valves for water supply systems to those for water purification systems. SGS became part of the Group in 1995.

KITZ SCT manufactures valves and fitting for semiconductor manufacturers and other factories where high-purity fluid is handled. KITZ SCT joined the Group in 2001.

URL http://www.miyoshivalve.com/

URL http://www.shimizugokin.co.jp/ URL http://www.kitz-sct.jp/english/

URL http://www.perrin.de/en/

The KITZ Group offers a lineup of over 90,000 types of products trusted by customers in and out of Japan for their top

quality. In our home market, the KITZ Group boasts an expansive brand portfolio. It includes the KITZ brand offered

by KITZ Corp., an all-round valve player; the TOYO and MIYOSHI brands known for their outstanding presence in the

building construction business; the SGS brand recognized in the water supply and sewage system fields; and the KITZ

SCT brand, well known among semiconductor manufacturers.

The KITZ Group is represented internationally by the KITZ brand, the ISO brand for our production and sales base in Spain

(KITZ Corporation of Europe, S.A.) and the Perrin brand (Perrin GmbH), which joined the KITZ Group in December 2009.

KITZ Group brands are earning the support of numerous customers in Japan, Europe, the Americas and Asia.

Perrin GmbH

YKV Corporation Toyo Valve Co., Ltd. Miyoshi Valve Co., Ltd.

Shimizu Alloy Mfg. Co., Ltd. KITZ SCT Corporation

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Simulation analysesIn addition to laboratory experiments, various on-site conditions of plant operations are simulated and analyzed with state-of-the-art Computer Aided Engineering (CAE) technology to determine the optimum design specifications for products.

Flow rate testEvaluating differential pressures of fluids flowing in a piping system simulating on-site service conditions.

Bending test Evaluating the durability of valve and pipe connections to verify mechanical strength against internal stress caused by earthquakes and other accidental overloading.

Blow-off testVerifying sufficient durability of the valve sealing mechanism and body construction against emergency shut-down or release of high-pressure high-temperature line fluid, using air as a test media.

Low temperature test Evaluating function and durability of cryogenic service valves in handling LNG and other extremely low temperature fluids using test fluid and facilities simulating on-site operating conditions.

Fire testVerifying that the valve’s secondary metal- sealing system will function properly and valves work properly after the primary non-metal-sealing components deteriorate when a soft-sealed valve is exposed to a plant fire.

R&D ConceptKITZ’s Product Development Department is proactive in its approach to R&D activities in line with its action guideline to “continuously provide customers with impressive and creative products, strengthen our technology structure and constantly improve corporate value.”• Core technologies

We integrate state-of-the-art process technologies in the fields of material and process engineering that serves as the core of our R&D operations.

• Solution provider

We strengthen our corporate structure to become a source of technology-based ideas that can solve customers’ problems.

• Speed

We take the lead from the competition by identifying and completing R&D objectives ahead of the curve.

Ceaseless Advancement of Product Development—From General Purpose to Specialty and

Value-Added Systems KITZ Corporation started operations from manufacturing

• Laboratory tests and analyses simulating user's on-site operation conditions

• Product development constantly moving forward on the crest of the world’s most advanced fluid flow control technologies

general-purpose valves. Over the years, KITZ has continually gone a step ahead of the needs of emerging markets and developed high value-added products, advancing from manually operated shut-off valves to automated control valves, and from single valves to complex modular products. To respond to the diverse needs of the times, all of our engineers are committed to upgrading their skills and to creating greater value, thereby enabling the KITZ Group to supply fluid flow control devices that offer the best in safety, durability and reliability.

Earning the Trust of Users Globally with World-Class Valve TechnologiesWhile keeping its position as the industry leader, KITZ is guided by a market-driven approach to constantly provide customers with innovative, high quality products. The KITZ Group works in unison to cultivate product development and production technologies that achieve high functional-ity and ultra-precision and nurtures the seeds of these technologies in today’s diversified business fields.

Unique R&D System that Continuously Creates High Value-Added ProductsThe driving forces underpinning KITZ’S R&D activities are its advanced testing, analysis and measurement technologies carried out at its laboratories. The quality of

all our products are controlled through rigorous in-house laboratory testing and analysis, and only those products that satisfy stringent criteria are made available to customers.

Valve Automation technologyKITZ ball and butterfly valves actuated by KITZ F Series pneumatic actuatorsAutomatically operated by compact aluminum pneumatic actuators with minimized air consumption and extended service life.

Module assembly technologyKITZ water meter unitsUsed for water distribution piping of apartment houses with ease of installation and high work efficiency.

High precision high performance technologyKITZ Micro Filter’s hollow fiber membrane filters for chemical solutionsOffering nano-filtration service to pharmaceutical plants to maintain parity with the constantly evolving semiconduc-tor manufacturing technology.

R & D a n d P r o d u c t i o n

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R&D and Production Systemsthat Assure High-Quality Products

Focus on Strength

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• Stainless Steel Valve Manufacturing Process

Focus on Strength 2

MeltingRaw materials are melted in high-frequency electric furnaces.

LadlingMelted metal is ladled for pouring.

PouringMelted metal is poured into a casting mold. The melted metal flows into the cavity between the upper mold, the lower mold and the core.

Heat treatment (solution heat treatment) Raw materials are quenched after having been heated up to 1,100°C. This process forms a uniform metallic structure and makes mechanical properties such as tensile strength and elongation higher.

Acid picklingPickling castings in acid solution removes impurities such as oxidized scales on the casting surface caused by heat treatment and shot blasting. At the same time, a protective film is formed on the casting surface for higher corrosion resistance.

MachiningCastings are cut, drilled and processed with machines.

AssemblyVarious parts and components are assembled to complete valves.

Pressure testsValves are pressurized with air and/or water and operated to verify satisfactory sealing function and soundness of valve castings and components.

ShipmentAfter coating and product protection measures are taken, satisfactorily tested products are gathered on a shipping platform under strict control and shipped in a timely manner to each designated destination.

Keeping integrated production as its operational basis, the KITZ Group undertakes in-house production of major materials and components including castings and forgings. In particular, foundry operations for castings, which determine the quality of the valve pressure vessel, are considered essential as our core technology. Application of our sophisticated quality assurance system backed by ISO 9001 certifications begins with production of materials and components and extends to machining, assembly and all other subsequent processes including pre-shipment tests and inspections. This system is deployed indepen-dently and exclusively for each production line of valves made of copper alloy, gray iron, ductile iron, carbon steel and stainless steel. This system is never neglected at KITZ even for a very small lot of non-standard products users occasionally order.

Heattreatment

Cutting InspectionCoolingPouringLadling

Molding

Melting

R & D a n d P r o d u c t i o n

R&D and Production Systemsthat Assure High-Quality Products

Integrated Production System from Castings Ensures Total Quality Control in All Production Processes

The basis of the KITZ Group’s manufacturing operations is supplying customers with what they need, when they need it and with whatever quality and price level they desire.

Manufacturing operations based on a market-in concept is supported by the KITZ Innovative and Challeng-ing System (KICS), our unique and revolutionary production method introduced in 1986. KICS enables us to work on one product at a time during each step of the manufacturing processes coordinated with the timing of delivery. This methodology eliminates waste and the need for backlogs and results in cost reduction and minimized lead time.

Amid the increasingly diversified market demands, KICS also helps customers reduce their inventories.

KICS Supports Manufacturing Operations Based on Market-in Concept

To ensure the timely supply of products that fully satisfy customers in terms of cost, quality, delivery and service, the KITZ Group is building a structure for undertaking produc-tion in the most suitable locations around the world.

Under this structure, we produce high value-added products in Japan, while Japan also plays a crucial role as the command center for our global manufacturing activities. The KITZ Group now has international factories in Thailand, Taiwan, China, Spain and Germany.

Global Production Network:Manufacturing Facilities Located in the World’s Most Suitable Regions

KITZ Corporation recognized the importance of conformance to the international standard on quality management systems earlier than anyone in the industry. In November 1989, KITZ became the first Japanese company to earn ISO 9001 certification. At present, all domestic and international production bases in the KITZ Group have been certified to this standard. In July 2001, KITZ Corporation was also certified, for the first time in the valve industry in Japan, to Pressure Equipment Directive 97/23/EC (PED) for CE marking required for European markets. KITZ plants in Taiwan, Thailand and China are now certified to PED as well.

In Japan, KITZ Corporation is approved by the Ministry of Economy, Trade and Industry as an authorized gas tester under the High Pressure Gas Safety Act. It supplies Japan Industrial Standards (JIS) certified products, and complies with standards of the Japan Water Works Association. KITZ Corporation is also certified to use the API Monogram of the American Petroleum Institute Production Department.

KITZ Brand Is Backed by Rigorous Quality Management Standards

AssemblyMachiningAcidpickling

Pressuretests

Shipment

E U R O P E A S E A N A M E R I C A

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Focus on Strategy

G l o b a l N e t w o r k

Straightening and Consolidating Our Supply System Prioritizing Key Regions and Important CountriesThe KITZ market covers the entire globe, with priority given to the regions that have the greatest demand for KITZ products. Beyond the home market in Japan, our priority market zones are centered in the three key market regions of Europe, the Americas and ASEAN nations, and the two important countries of China and India. We are driving these priorities by expanding our global distribution and service network focusing our market strategy on these areas. We have set up regional headquarters in each of these priority areas to handle marketing, sales, engineering, inventory control and backup service functions so that we can better meet the immediate needs of local customers in each region.

A Global Sales Network Handling a Diverse Range of Products SupplierAs an all-round valve supplier, the KITZ Group has established a distribution system that is capable of handling a diverse range of products tailored to customer needs.

In Japan, we operate sales offices in major cities for nationwide marketing and product distribution through an enormous number of distributors. In global markets, we operate marketing bases in India, the UAE and Korea, and sales bases in China, Singapore, Thailand, the United States, Germany and Spain.

• KITZ Group Production and Sales Networks

• ASEAN

Three Regional Headquarters

We operate KITZ Corporation of Asia

Pacific Pte. Ltd. in Singapore as our

marketing and sales promotion

center for the 10 ASEAN member

countries.

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The KITZ Group maintains a broad network of sales offices globally that provide customers with a wide scope of products and services through our global distribution and service network.

• The Americas

Located in Houston in the United

States, KITZ Corporation of America

carries out marketing and sales

activities in the United States as well

as in Central and South American

countries.

• Europe

We set up KITZ Europe GmbH in

Nidderau, Germany, to implement

our production and sales strategies

focused on the entire European

region, including Eastern Europe and

Russia.

Sales NetworkThat Covers the World

KITZ Corporation (Head office) Marketing basesProduction basesSales bases Production & sales bases

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Focus on Strategy

Promoting Business Structure ReformationTargeting ever-growing markets such as oil, gas and other energy-related sectors as well as plant instrumentation business, we will proactively invest in R&D and production facilities serving these fields. We also will pursue expansion of our business domains focused on M&A and technological alliances with companies that have unique technologies and products not available within KITZ Group operations.

Harnessing the Collective Capabilities of KITZ Group OperationsTo remain competitive in the global market, we are finding new ways to cut costs at our existing

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G r o u p S y n e r g y

Valves for hydrogen gas and CNG stations

manufacturing facilities in Japan and other countries, and at the same time, we are carefully planning future plant siting to make sure we locate our factories where they are needed most. We will emphasize our marketing program for our mainstay copper alloy and steel valves to be sure we are able to meet the needs of each region and review our supply systems, including reorganizing production bases, with the aim of improving our earnings.

At the sales level, we are planning to set up regional headquarters in priority global markets and to strengthen collaboration within our Group operations to speed up local management decision-making for expansion of each local market share.

We are striving to fully leverage KITZ Group synergies for new business through marketing and technical collaboration with Group companies and to explore a variety of new opportunities.

The KITZ Group will do all it can to stay flexible in responding to ongoing changes in the business environment to make sure we achieve growth and “keep evolving to become a fully global company.”

• The Group’s First Collaborative “KITZ CLESTEC-Project”

The KITZ Group has set its sights on the growth potential of the eco-car fueling station market and is developing, manufacturing and selling ball valves used for filling stations of hydrogen gas and compressed natural gas (CNG) as part of the KITZ CLESTEC-Project, the Group’s first collaborative initiative. The product is developed by KITZ Corporation, manufactured by both

KITZ SCT Corporation and Perrin GmbH, and sold by these three companies.

Fuel cell vehicles (FCVs) and other eco-cars are manufactured and strongly promoted not only in Japan but also in the EU, Korea and North America. We believe this trend will increase demand for eco-car fueling stations and subsequently the valves used for the gas filling stations.

KITZ is investing our accumulated know-how and technologies in the group-wide project to help build an eco-car fueling station infrastructure that will be a basic part of tomorrow’s low-carbon transportation system.

*CLESTEC stands for “KITZ Clean Energy Supply Technology for Future Generation.”

KITZ CLESTEC-Project Structure

Japan and Asia Europeand the Americas

Development

Manufacturing

Sales

KITZ Global Vision 2020 Slogan

Evolution to become a fully global company

Maximize corporate value by full globalization

Revitalization of our operations as a dynamic and conscientious group of companies

Develop global level business locations with composite functions of sales, marketing, engineering, stock, maintenance and service

• Highly secured rate of profits and cash flow• Continuous development of our corporate value and social contributions by

improving our values to the customer, our employees’ quality of life and mutually beneficial business with our partners

A high-pressure ball valve for hydrogen gas stations is being tested with high-pressure helium

gas (98Mpa) to verify leak-free operation. (KITZ SCT Corporation’s Nitta SC Plant, Japan)

In May 2010, the KITZ Group formulated KITZ Global Vision 2020, a Long-term Management Plan that runs through Fiscal 2020. With the slogan “Evolution to become a fully global company,” the KITZ Group will push forward with this vision to become an even stronger and more efficient company.

The vision includes directing management resources into the fields that promise to become leaders in tomorrow's economy, and with future enterprises, as with today's business, we will continue to revitalize our business structure to assure top earnings.

Evolution to Become a Fully Global Company

Corporate GovernanceThe KITZ Group is strengthening corporate gover-nance functions to ensure that we continue to be a company that earns the trust and support of society.

To strengthen the structure that supervises corporate management, KITZ Corporation appoints two external board members and provides thorough mutual surveillance of directors’ performance of duties to secure sound, proper management. To further strengthen execution of this activity, half the number of auditors are also assigned externally. To promote quick management decision-making, we deploy an executive officer system, in which board members formulate business strategies and executive officers perform assigned duties under board members’ supervision.

Risk Management and ComplianceThe KITZ Group analyzes a diverse array of crises such as natural disasters and serious failures in business activities and has established a system of risk management to minimize resultant damages and losses. The Group has organized the C&C (Crisis and Compliance) Control Committee, with the president of KITZ Corporation assigned as a committee chairper-son, to respond to management risks, promote compliance-focused management and tackle various problems alerted by internal whistle blowers.

Group-wide Promotion of Environmentally Conscious ManagementThe KITZ Group has designated “Group-wide promo-tion of environmentally conscious management” as a measure for strengthening our business infrastructure to “evolve to become a fully global company” and has established the targets of “enhancement of environ-mental management system,” “reduction in environ-mental impact” and “compliance with environment-related laws and regulations.”

The Group will work in unison to undertake

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For Sustainable Development

Participation in TABLE FOR TWO ProgramKITZ Corporation participates in a global social action program led by TABLE FOR TWO International, a non-profit organization (NPO). Helping to eliminate hunger in developing countries and obesity and lifestyle-related diseases in developed countries, we

donate 20 yen per meal out of what each of our employees pays for the meal selected from a healthy menu at our cafeterias. The money is transferred to developing countries in Africa to support their school lunch program.

Activities for Regional Development and Environmental ConservationAt the Nagasaka Plant in Yamanashi Prefecture, KITZ Corporation participates in tree-planting activities organized by a Japanese NPO in their effort to restore a “Satoyama,” an undeveloped village forest serving as a habitat for Japan’s national butterfly, the giant purple “Oo-murasaki.”

Meanwhile, at the head office in Chiba City, KITZ Corporation collaborates with another NPO to regenerate the Kujuukuri coastal forest preserve in Sammu City, Chiba Prefecture, that was damaged by the tsunami caused by the Great East Japan Earthquake. Additionally, KITZ Corporation supports various events in the areas of our business sites, including the Suwa Lake Fireworks Festival, Lake Suwa Marathon and Spring High School Ina “Ekiden,” a long-distance relay road race.

S o c i a l R e s p o n s i b i l i t y

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environmentally conscious management to attain these targets based on its policy of achieving a balance between risk prevention and cost reduction.

Planting trees to restore a “Satoyama” for Japan’s national butterflies.

We, the KITZ Group members, declare, as a good corporate citizen, to place a high value on communication with society, proactively address harmonious relations with local communities and on conservation of the global environment, and thus contribute to making our society more prosperous.

Social Action Program – Basic Principle

We, the KITZ Group members, in the true spirit of volunteerism, dedicate ourselves to promote successive social action programs that bring happiness to our communities and credit to our trade name:

1. We will develop a corporate climate that will encourage all employees to participate.

2. We will build a better relationship with local communities.

3. We will address structuring people-friendly surroundings.

4. We will disclose all corporate information and achieve full accountability.

Social Action Program – Guidelines

Stimulatinglocal economies

We undertake an array of activities to stimulate local

economies where our facilities are situated.

Promotinglocal culture

ActivityAreas

We join local mecenat cultural activities through our support of the Kitazawa

Museum of Art in Suwa, Japan.

Contributing toglobal society We participate in

international activities for humanitarian support and

human resources development.

Conservingregional environments

We participate in activities to conserve regional

environments.

Contributing to Global ProsperityThe KITZ Group is proactively undertaking social contribution activities as a group-wide movement. We put into practice our Corporate Mission “To contribute to global prosperity, KITZ is dedicated to continually

We have completed certification for ISO 14001 at all our production plants (seven locations) in Japan and will now expand efforts for obtaining ISO 14001 certification to our overseas bases. We will strive to complete the acquisition of ISO 14001 certification in the near future at all overseas manufacturing bases with the aim of building an environment management system as a truly global company.

• Enhancement of Environmental Management System

We have set the target of reducing consumption of energy and water used for our business activities and reducing the discharge of carbon dioxide, industrial waste and chemical pollutants from our business operations. We will effectively use finite resources while extensively eliminating waste to reduce environmental impacts in terms of total volume and basic units.

• Reduction in Environmental Impact

Besides complying with various environment-related laws and regulations for addressing environmental problems amid a tightening of restrictions worldwide, including in Japan, Europe, Asia and the United States, we also engage in activities to eliminate all environmental risk associated with our business activities.

• Compliance with Environment-Related Laws and Regulations

The KITZ Group believes its most important mission is to carry out sincere, sound business activities and continuously provide creative and high-quality products and services to contribute to global prosperity.

Working to Live in Harmony withthe Environment and Society

enriching its corporate value,” and we will strive to support society and the local communities as a good corporate citizen.