To strengthen the quality assurance program for our expanding international and OEM production activities, the Product Safety and Quality Assurance Planning Department, covering the entire Toray Group and under the direct supervision of the President, was established in December of 2006. At the same time, Quality Assurance Departments were established in each business division's Product Safety Secretariat, by adding the function of quality assurance. This is to further ensure product quality in a wide range of business areas-fibers and textiles, films, plastics, composite materials, electronics and information materials, pharmaceuticals and medical products.

The Product Safety and Quality Assurance Planning Department sets product safety and quality policy for the entire company, and provides guidance and management for the individual Quality Assurance Departments. During FY 2006, we reexamined the quality policy based on our Corporate Philosophy, focusing on a customer-first, qualityfirst approach.

Toray Industries' product safety system is shown in the diagram below. As the basis for product safety management, each year the Product Safety Committee sets out product safety issues common to the entire company; then, through discussions with the Product Safety Managers Council, the Divisional and Departmental Product Safety Committees plan comprehensive activities. During FY 2006 the product safety management systems at affiliated Japanese and overseas companies were reviewed and improvements put in place, including a move from GHS (a globally-unified system for the classification and labeling of chemicals) to MSDS (Material Safety Data Sheets).

Divisional and departmental Product Safety Committees also meet with the Product Safety Managers Council to set annual product safety themes, and in close cooperation with those in charge of production, technology and sales, work to improve the level of product safety management.

To ensure both Japanese and overseas affiliates have the same safety management as Toray, all have enacted the product safety control regulations. The affiliated companies division, each division and department mainly provide support and guidance so that the product safety level of the entire Toray Group is improved.

New product safety checks are undertaken by the Director in charge of manufacturing new product. The examination includes a safety check of the product itself, the MSDS, an examination of the instruction manual (including warning labels), catalogs and other safety information sources used by the customer, as well as a confirmation of the environmental impact of the product. When any doubts about product safety emerge as a result of these checks, the Product Safety Review Board, a group of impartial, knowledgeable individuals from both inside and outside the company, will convene, and the product must pass their review before going to market. Safety is also followed-up after the product is delivered.