Procurement

We fulfill our corporate social responsibilities in procurement activities as part of our efforts to be a company trusted and chosen by our business partners and other stakeholders.

Basic Procurement Policy of the Mitsubishi Steel Group

The Company will promote material procurement activities based on the following three basic polices:

1Equitable and Fair Business
In all our dealings with business partners, we offer opportunities for equitable and fair business.
We select suppliers in good faith through overall and equitable evaluation on quality, costs, technologies,delivery deadlines and other related aspects.
2Building Partnerships with Business Partners
We seek the establishment of true partnerships in the spirit of co-existence and co-prosperity with our business partners based on mutual trust and cooperation.
3Proper Management of the Confidential Information, Intellectual Property and Assets, etc. of Our Business Partners
We properly manage and protect the confidential information, intellectual property, and assets, etc.of our business partners while procuring materials.

Promoting CSR procurement

We advance CSR procurement in accordance with the following four principles, for which we request the understanding and cooperation of our business partners.

1Compliance with laws, regulations and societal norms
We perform corporate activities in compliance with corporate ethics, as well as the laws, regulations and ordinances of each country.
2Concern for the global environment
We will ensure promotion of green procurement with low environmental impact, management of hazardous chemicals, and reduction in CO₂ emissions.
3Concern for human rights and worker safety and health
We will respect human rights and prohibit any kind of discrimination, child labor and forced labor. We also give consideration to the development of the work environment, as well as safety and health.
4Ensuring product safety and QCD
We promote material procurement activities that ensure safety and QCD (quality, cost and deadline) to maintain and improve product values.

Green procurement initiatives

To protect the earth's environment by reducing CO₂ emissions and other measures, we prioritize use of recycled and eco-friendly products. We also actively seek out proposals for products and services that contribute to environmental conservation activities. We partner with business partners and other stakeholders to prevent use of conflict minerals that might fund armed forces and foster human rights abuses and conflict.

Conflict minerals initiatives

Conflict minerals refer to the four minerals of tin, tantalum, tungsten, and gold sourced from the Democratic Republic of the Congo and nine neighboring countries. There are concerns that sales of these minerals play a role in human rights violations, armed conflict, and funding for military actions.
We investigate whether suppliers use conflict minerals. As requested by customers, we also use the investigation template issued by the Responsible Minerals Initiative (RMI) to report that products are free of conflict minerals.

Material Procurement Categories

Raw materials

Item	product	Specification, grade	Delivery location
Scrap	Heavy	PNS･HS1･H1･H2	Surabaya, Jawa Timur (Indonesia)
	Bushelling	Roose･Bundle
	Shredded
	SUS scrap	Ferrite	Aizuwakamatsu, Fukushima (Japan)
Iron alloys	Mn	Si-Mn, FMnHC	Aizuwakamatsu, Fukushima (Japan), Muroran, Hokkaido (Japan), Surabaya, Jawa Timur (Indonesia)
	MO	MO, FMO
	Si	Fe-Si
	Ni	Ni
	V	FV
	Cr	FCrHC, FCrLC
	Cr	Met	Aizuwakamatsu, Fukushima (Japan)
	Co	Co	Aizuwakamatsu, Fukushima (Japan)
Auxiliary materials	Aluminum block	5kg block	Aizuwakamatsu, Fukushima (Japan), Surabaya, Jawa Timur (Indonesia)
Refractories	For Steel Casting Ladle	Magcarbon, Almagcarbon	Surabaya, Jawa Timur (Indonesia)
Electrodes	8", 10", 14", 16"	HP, UHP	Aizuwakamatsu, Fukushima (Japan), Muroran, Hokkaido (Japan), Surabaya, Jawa Timur (Indonesia)

Others

Suspension Parts	Bonded bush (to be vulcanized)	For stabilizer	Ichihara, Chiba (Japan), Ningbo, Zhejiang (China), Chatham, Ontario (Canada), Aguascalientes, Aguascalientes (Mexico)
Suspension Parts	Bracket	For stabilizer fastening

The above are the material procurement items currently being required. We are also waiting for suggestions for similar products.