Intangible Assets
Manufacturing Capital
The DKK Group applies originality and ingenuity to customize zirconium compounds to meet the needs of customers in a variety of fields and provide the world with materials with diverse properties. As a result, we have developed unique, versatile, and highly productive manufacturing technology that can turn out products for multiple fields on the same line. We are able to make effective use of this manufacturing capital and flexibly change our production portfolio to improve investment efficiency and develop business in Strategic Areas and the Automotive Catalyst Area. We also aim to use DX to improve coordination between our supply chain and production management to further increase capital efficiency. DKK is the only group of companies in the world involved in the whole production process for zirconium compounds, from decomposition and refining of zirconium ores to manufacturing, supply, and distribution of high-performance materials, and our subsidiary VIETNAM RARE ELEMENTS CHEMICAL JOINT STOCK COMPANY is the only company outside China to produce and sell zirconium oxychloride, giving us supply resilience for the main intermediate material source for these compounds. This subsidiary commenced production activity at a new plant in August 2023 and full operation is planned from June 2025.
Intellectual Capital
Inheriting our founders’ spirit of undertaking challenges, embodied by the slogan “Because no one has done it, we will do it,” the DKK Group has grown by developing new functions and expanding applications for zirconium compounds, as well as conducting research and surveys on new materials. As a result, zirconium compound refining and zirconium oxide agglomeration control have become our core technologies. We have also been able to acquire a variety of intellectual property rights and now hold 96 domestic patents and 118 overseas patents, and we expect them to contribute significantly to our competitiveness in Strategic Areas. In FY3/2024, the Group commenced activities at a new R&D Center in Osaka together with an updated pilot plant. We intend to strengthen R&D for Strategic Areas, evolve the center into an innovation hub, and use process design to shorten time to mass production and promote environmental technologies. The goal is to create a new business base by establishing an R&D structure that can respond flexibly to changes in the business environment. We continue to aim for co-creation of value with all stakeholders through development activities based on our R&D policy and intellectual property activities based on our intellectual property strategy.
Human Capital
Since its establishment, the DKK Group has held the belief that “people” are the most important factor in supplying ‘Valuable Products’ for society, and that the effect of a strong bond between executives and employees is very significant. The Group’s human capital is the foundation of its beliefs and is considered one of the most important forms of management capital. We aim to maximize the value of human capital by creating a safe and comfortable work environment for employees by addressing issues such as human resource development, diverse work styles, mental health care, and employee engagement. The Group believes it needs to create a corporate culture that encourages employees to grow, continue to take on challenges, and demonstrate results. To that end, it promotes flat relationships that allow people to talk honestly and supports employees in furthering their education and using their experience throughout the DKK Group.
Natural Capital
The DKK Group takes global environmental issues seriously and works constantly to reduce the environmental burdens of its business activities. We also contribute to the realization of a sustainable society by actively developing products that aid environmental preservation and providing highly functional and quality materials. Through our environmental action plan, we strive to reduce burdens at every stage of a product’s lifecycle, promote resource and energy saving and effectively reuse waste, actively develop products that preserve the global environment, and ensure the safe handling of and proper disclosure on chemical substances. We comply with all relevant environmental laws, regulations, and agreements, strictly implement and continuously improve our environmental management system, set environmental objectives based on our management and environmental policies, and ensure everyone at the company is familiar with these policies. Our environmental promotion structure, headed by the Board of Directors, oversees initiatives such as the management and reporting of chemical substance usage in line with international laws and industry standards, the protection of river systems that supply the Fukui and Gotsu sites, and the introduction of a fuel cell-based electricity generation system at the Fukui site.
Social and Relational Capital
The DKK Group acknowledges that its activities may impact on the human rights of everyone associated with the business and that respect for human rights is essential for the development of a sustainable society and for the implementation of its management philosophy: ‘Valuable Products,’ ‘Fulfilling Life,’ and ‘Rewarding Workplace.’ Based on this philosophy, the Group conducts its business with a view to building sound relationships with all its diverse stakeholders. We must remain socially useful and essential to continue growing and developing and are committed to procurement activities based on mutual understanding and trustful relationships with suppliers. Across our supply chains, we conduct risk self-assessments and due diligence to ensure respect for human rights, comply with international standards on responsible procurement, and adhere to safety and health laws to build safe and sound work environments and reduce risks. We also place great importance on coexistence with local communities and conduct a range of social contribution and revitalization activities while working to protect the environment. Internally, we implement initiatives to foster a sense of unity in the organization and provide spaces for employees to express their opinions and ideas, regardless of their position or length of service.
