Disaster Countermeasure Training to Promote Business Continuity Planning

Today, Sumitomo Metal Industries, Ltd. (Sumitomo Metals) conducted training based on the premise that the Tokyo headquarter had lost its office functions as a result of a large earthquake or other such natural disaster. The training entailed setting up a back-up office at the Osaka head office, transferring business operations of sales divisions, confirming the shipment status of products that have been manufactured in response to orders, and responding to inquiries from customers.

Last year, Sumitomo Metals conducted training that involved giving manufacturing instructions by linking orders from customers to various production bases. Through the training last year and this year, Sumitomo Metals has confirmed it is able to reliably manufacture and deliver orders from customers even if the Tokyo head office is struck by an earthquake.

Sumitomo Metals is engaged in promoting a business continuity plan (BCP) whose basic policy is to ensure the safety of employees and achieve stable supply of products to customers when a natural disaster occurs. The Company will continue to carry out this BCP training and strive to continually enhance corporate value by maintaining systems that enable products and services to be swiftly and reliably supplied to customers even if a sudden emergency situation arises.

1. Outline of disaster countermeasure training this year

(1) Implementation date
November 14, 2008 (Fri) 10 a.m. – 12 p.m.

(2) Main activities
It is presumed that a major earthquake with a magnitude of just less than 6, whose epicenter is located in the Tokyo metropolitan area, occurred at 10 a.m. on November 14 (Fri). This year, Sumitomo Metals initiated the drill by conducting a training broadcast based on the Earthquake Early Warning*, The Company plans to install this broadcasting system at the Tokyo head office.

*The Earthquake Early Warning is a system of advance announcement of the estimated intensities and expected arrival time of an earthquake, based on prompt analysis of data observed near the epicenter. It is provided by the Japan Meteorological Agency,

(i) Back-up office set-up training
Based on the assumption that the Tokyo head office had lost its office functions, Sumitomo Metals conducted training to start up a back-up office at the Osaka head office and maintain a system to provide products and services to customers centered on the distribution division.

Specifically, in addition to Sumitomo Metal Logistics Service Co., Ltd., a logistics subsidiary of Sumitomo Metals, four trading companies also participated in the training. At the same time, the sales division at the Osaka head office became the contact point, confirmed the shipment status at the major distribution bases throughout the country, and responded to customers' inquiries. As a result, Sumitomo Metals confirmed that its system to continue business from orders to shipment was effective.

Furthermore, throughout the entire training, Sumitomo Metals presumed that the infrastructure functions of the Tokyo head office had ceased, and therefore ensured the supply of emergency power based on its own generators while using satellite phones as a means of communication.

(ii) Implementation of action immediately after tremor at Tokyo head office divisions
All the employees at the Tokyo head office carried out initial responses, including safety assurance activities (diving under the desk,) watching out for fire, and verifying important documents.

(iii) Training to confirm the well-being of employees
The Company conducted training to rapidly concentrate information regarding the well-being of all employees at the Disaster Countermeasure Headquarters.

(iv) Training to rescue injured people
Based on the premise that several people had been injured, the Company conducted training that included transporting the injured on stretchers.

2. Future initiatives
Based on the perspective of putting priority on the stable delivery of products and services to customers, Sumitomo Metals will further strengthen cooperation between relevant internal and external divisions and continue to conduct initiatives aimed at carrying out operations from orders to manufacturing and shipment more reliably even when disasters occur.