management of supply chain risks associated with disasters in

MANAGEMENT OF SUPPLY CHAIN RISKS
ASSOCIATED WITH DISASTERS IN PETROCHEMICAL COMPLEXES
Akira NAKAJIMA*, Kenji WATANABE**
Graduate Student, Nagoya Institute of Technology*
Professor, Nagoya Institute of Technology**
ABSTRACT: In the Great East Japan Earthquake, several weaknesses of the supply chains were found.
Although many companies had not suffered the direct damages of the earthquake, it fell into the disruptions
of productions in response to the influences from the companies that played key roles in its supply chain. In
this research, we assumed that it was required to build a business continuity management framework among
the companies which constitute a supply chain in order to prepare for future disasters. Then, case analysis
was executed on the petrochemical complex which suffered serious damages by Tsunami, liquefaction, a
tank fire by the Great East Japan Earthquake. In the process of the analysis extraction of the problems at the
time of the disaster in petrochemical complexes of Japan, visualization of a supply chain, and dynamic grasp
were performed. At last, we proposed the goal of development the design of the measure considered to
reduce the damages of supply chain for petrochemical complexes at the time of a disaster.
KEYWORDS: Supply Chain Risk Management (SCRM), disaster prevention, Great East Japan Earthquake
1. INTRODUCTION
2. DISASTER CASE ANALYSIS IN THE
In the Great East Japan Earthquake, we found the
weaknesses
of
some
The Maruzen Petrochemical Complex suffered
petrochemical complexes in Japan. In this area, a lot
serious damages in the Great East Japan Earthquake
of companies produce basic materials that uses from
and experienced a serious tank fire. This complex is
automobile parts to daily needs, and the area is
located in Chiba prefecture and a lot of chemical
positioned
Japanese
products factories gathering around of this area.
manufacturing. It is necessary to continue to supply
Figure 1 shows the flow of supply chain in this
and maintain the supply chain when emergency
complex. And some X-marks are showed the
arises. In this research, case analysis was executed
facilities that stopped its production in the Great East
on the petrochemical complexes which suffered
Japan Earthquake. This shows the companies and
serious damages in the Great East Japan Earthquake.
products which accept materials were also affected
And, we propose some measures to reduce the
because suppliers suffered serious damages in
as
the
a
core
HDPE
EO
offgas
UBE-MARUZEN
poryethylene
acethylene
DENKA
supply
LDPE
Acetate bm
Styrene monomer
chains
industry
Ethylene glycol
eabe
VCM
KEIYO monomer
naphtha
AGC
ethylene
EDC
MARUZEN
KUREHA
APC
Pc-ethylene
JNC
HDPE
propylene
JAPAN PP
JNC
CHIBA
Butadiene
B-B fraction
polypropylene
CG ester
DOP
octanol
UBE Industries
butanol
butadiene
UMG ABS
DENKA
S-butyl alcohol
T-butyl alcohol
ABSresin
ABSresin
MEK
GOI Chemical
KH Neo Chem
C₅fraction
benzene
toluene
xykene
Fig.1
Supply
Hi-dicyclopentadiene
Petroleum resin
HITACHI chemical
JSR
chain
petrochemical complex
way, we found a lot of supply chain disruptions. And,
complex at the
supply chain was stopped the whole of this complex.
time of disaster.
In another case, the Kashima Complex suffered
isooctane
diisobutylene
tributylene
Cracked
petroleum
petrochemical
Butadiene rubber
butylene
MARUZEN
consideration of tank fire in The Cosmo-Oil. In this
Vinylidene chloride
resin
KEIYO ethylene
ethylene
damage for the
polystyrene
TOYO-st
ABSresin
Styrene-butadiene
COSMO-OIL
for
for
GREAT EAST JAPAN EARTHQUAKE
POF
isononanoate
nonanol
serious damages by Tsunami and also stopped their
methyltetrahydrophthalic acid
anhydride
dicyclopentadiene
JSR-kashima
disruption
in
IR
Maruzen
supply chain.
3. MEASURES TO REDUCE THE DAMAGE
4. THE YOKKAICHI COMPLEX
TO THE PETROCHEMICAL COMPLEXES
The Yokkaichi Complex is suspected to suffer
3.1 Cooperation between companies in the
serious damages by the Nankai Trough Earthquake
petrochemical complexes
which has the high potential to happen near
Fig.2 shows the case of back-up solution in the Great
Yokkaichi. So, in this study, we attempted to survey
East Japan Earthquake in the Maruzen Complex. The
about supply chain in the Yokkaichi Petrochemical
Ube-Maruzen Polyethylene Co.,Ltd. and the UBE
Complex. In this complex, supply chain consists of a
Industries Co.,Ltd. were located same site and
lot of chemical companies (Fig.4) like as the
suffered damage from stopped supply. But it was
Maruzen and the Kashima complex. In addition to
different in the time of restart. The Ube-Maruzen
the problem about supply chain disruption, this
Polyethylene had an alternate supplier (Keiyo
complex has problem of geographical aspect. This
Ethylene,Ltd.). So, it was possible to procure
factory area is located next to a residential area. So,
ethylene and continue their operation. We speculate
this complex have the risk of fire spread to
it is available to reduce supply chain disruptions by
residential area, mass evacuation include community
means of alternate supply that accommodate
people, and so on.
MARUZEN Chemical
materials each other companies in the complex.
MITSUBISHI Chemical
KH Neo Chem
VCM
ethylene oxide
ethylene glycol
ethylene oxide A
ethanol
acetaldehyde
TAIYO Vinyl
Alternative supplier
KEIYO
Ethylene
COSMO-OIL
ethylene
A subsidiary of Maruzen
No damage by the earthquake
TOSOH
ethylene
SM
UBE-MARUZEN
Polyethylene
MARUZEN
Chemical
butylaldehyde
isobutylaldehyde
cumene
octanol
PS
J-Plus
octylic acid
KH Neo Chem
propylene
Required only a safety check
B-B fraction
DIC
polyethylene
3/19~ Restart Operation (FULL)
3/11 stop
4/4~ restart
PVC
polyethylene (LDPE・
・LLDPE)
EVAC
polyethylene (HDPE)
ethylene
naphtha
acetone
DOP
Butyl-acetate
GE
Isobutyl-acetate
butanol
Iso-butanol
MIBK
DAA
CHIBA
Butadiene
butadiene
4/5~ restart
UBE
Industries
JAPAN PP
butadiene
rubber
3/19~ restart operation (small-scale)
(because of supply problems)
Synthetic gum
B-B fraction
4/16~ Restart Operation (FULL)
In the same site (UBE industries)
No damage for facilities
polypropylene
butadiene
JSR
C₄₄ fraction raffinate
Cracked
petroleum
Petroleum resin
toluene
xylene
Techno Polymer
TOSOH
ABSresin
CR
TBA
benzene
Fig.2 Case of back up solution
3.2 Wide-area cooperation between complexes
Fig.4 Supply chain map in Yokkaichi
5. CONCLUSION
throughout Japan
It is important to cooperate in the petrochemical
complex, but it will be necessary to cooperate with
complexes between separated areas at the time of
widespread disaster happened. As petrochemical
complexes are located around Japan (Fig.3). So, they
may reduce the damage of supply chain disruption if
they can achieve implementing the wide-area mutual
cooperation and also lead to strengthened Japanese
In this research, we attempted to visualize about the
situation of supply chain disruption by analyzing
petrochemical complexes which suffered damages in
the Great East Japan Earthquake. So, we found the
problems for concentration risk. In response, we
propose some measures to make the chain more
robust at the time of disaster. And, we attempted to
find problems in Yokkaichi petrochemical complex.
It will be necessary to consider about supply risk not
petrochemical industry.
only at a company but also at whole complexes.
REFERENCES
・Japan Petrochemical Industry Association
K a was a ki
The epic enter of
the Great East
Japan Earthquak e
Os ak a
M izushim a
S huna n
Ka s him a
Chiba
Yok k aic hi
Oita
Fig.3 the 8 major petrochemical complexes in Japan
URL: http://www.jpca.or.jp/ (Website References)
・Disaster prevention plan at petrochemical complex
in Chiba Prefecture ,2010 (Journal Articles)