(Ningxia) Co., Ltd. - Schaeffler Group

Report Environmental Protection
and Safety 2010
Schaeffler (Ningxia) Co., Ltd.
SCHAEFFLER GROUP

Schaeffler Group
Providing a stable environment in our
world will not get any easier because we
live on a planet with limited resources.
Sustainable development and
environmental protection are thus key
factors for securing our future.
At the Schaeffler Group, protecting the
environment is one of our company goals.
We are proud to say that environmental
awareness has been our top priority in
our development, purchasing, manufacturing
and waste disposal activities
for many years.
The Schaeffler Group has integrated
environmental protection in all of its
divisions. We save resources, prevent
waste and close cycles because it is our
goal to protect the environment all the
way from development to disposal.
This may sound simple but it requires a
lot of work. It’s worth it though, and the
certification of all of our plants by an
independent environmental verifier clearly
shows that our efforts have been
successful.
Company management is committed
to environmental protection based on
the conviction that environmental
management represents an important
contribution to our company’s continued
existence and success. Our awareness
has grown, and our forward looking,
responsible actions allow us to improve
a little more every day.
Maria-Elisabeth Schaeffler
1

Environmental protection and work safety
is a fundamental part of our management
principles. We aim to ensure the continued
existence and success of our company by
establishing and maintaining a safe
working environment that promotes the
health and performance of our employees
as well as taking active measures to
protect the environment.
The following principles apply to all of
our companies worldwide and so
demonstrate the responsibility we have
toward our employees, society, and future
generations.
Effective Work Safety and
Environmental Management
We actively use a global work safety and
environmental management system that
is undergoing continuous improvement.
We elaborate forward-looking concepts
that we implement in collaboration with
our contractual partners. We carry out
regular checks across all areas to determine
the extent to which these measures have
been implemented and to monitor the
success of our management system.
2
Environmental and Safety Policy
of the Schaeffler Group
Safe, Employee-Friendly Workplaces
We are convinced that all occupational
accidents and illnesses can be avoided.
Motivated employees and managers help
us achieve our goal of a zero-accident
workplace. When it comes to protection,
our employees and contractors have equal
priority. When designing work centers and
procedures, we take into account the
latest trends and developments and place
special emphasis on ergonomic design.
Reliable Actions
We are committed to observing all
legislation and specifications regarding
work safety and environmental protection.
We act in a responsible manner in
accordance with our own regulations,
which, in many cases, go beyond existing
legal requirements. We configure, purchase,
operate, and maintain machines and
facilities in such a way as to minimize
potential hazards, risks, and operational
disturbances. Our technology is based on
the latest state of the art.
Minimum Environmental Impact and
Environmentally-Friendly Products
Regardless of the activities we are carrying
out, we endeavor to minimize environmental
impact by taking suitable measures
in advance. We consume raw materials
and energy sparingly and make every
effort to minimize waste, waste water,
noise, and other emissions.
We manufacture environmentally-friendly
products taking into account the entire
product lifecycle.
Responsible Employees
We hold regular information and
training sessions to ensure that our
employees and business partners have
the expertise and knowledge to carry
out their work safely and with the
minimum of environmental impact in
all areas of the company.
Preventative Measures
We take comprehensive measures to
protect our employees against health
hazards and prevent damage to the
environment. Comprehensive and
effective emergency measures are in
place at all locations to ensure that
our employees and visitors are treated
properly in the event of injury.
Open Communication
We conduct an intensive and trusted
dialog with interested parties.
We provide information about our work
safety and environmental protection
measures as well as the impact each
of our locations has on the environment.
Company Management and all
employees are committed to this policy.
Herzogenaurach, July 2006
Dr. Juergen M. Geissinger

The Schaeffler Group
The Schaeffler Group with its INA, LuK
and FAG brands is one of the world’s
leading rolling bearing manufacturers
and a renowned supplier to the automotive
industry. In 2009, roughly 65,000
employees, 28,000 of them in Germany,
generated sales of nearly 7.3 billion
euros. This makes the Schaeffler Group
one of Germany’s largest family-owned
industrial companies.
The group also includes Schaeffler
Technologies GmbH & Co. KG and
LuK GmbH & Co. oHG, based in Bühl.
The Schaeffler Group has 180 locations
in around 50 countries, with a major
focus in Europe and North America.
Growth markets in Eastern Europe
and particularly in Asia are becoming
increasingly important. All Schaeffler
Group plants worldwide comply with
very high quality and environmental
standards and have been certified
to the most stringent international
standards.
The Schaeffler Group’s Divisions
Automotive
The automotive industry is one of the
Schaeffler Group’s key customers,
generating around 60% of total sales.
For almost all manufacturers and major
suppliers, the Schaeffler Group is a
recognized development partner with
systems expertise for the entire power
train, i.e. a vehicle’s engine, transmission
and chassis, as well as accessories in
passenger cars and trucks. Precision
products made by INA, LuK and FAG
help reduce energy consumption and
emissions and simultaneously increase
driving comfort and fun.
Customers include all renowned automotive
manufacturers and important
suppliers worldwide. The Automotive
Aftermarket division supplies replacement
parts and provides services to distributors
and independent repair shops.
Industrial
More than 40,000 customers worldwide
from more than 60 industrial
sectors rely on the rolling bearings
and plain bearings, linear guides and
direct drives supplied by Schaeffler
Group Industrial.
The Industrial division offers more than
225,000 catalog items, making it the
world’s second largest rolling bearing
manufacturer.
Products include standardized
catalog products as well as customized
solutions, replacement parts and
services and ranges from miniature
bearings, such as those used in dental
drills, to large bearings with outside
diameters of several meters, e.g. those
used in wind turbines.
The renowned Aviation and Aerospace
division produces high-precision
bearings for engines used in airplanes,
helicopters and aerospace applications.
The Schaeffler Group with its FAG and
Barden brands is regarded as one of
the world’s leading manufacturers in
this industry. All of its products are
extremely powerful and offer maximum
possible reliability.
3

Aside from local presence worldwide,
top quality in manufacturing and
processes, employee focus and
sustainability, the Schaeffler Group’s
success factors also include innovation
and creativity.
Today roughly 5,250 R&D employees
at 32 development locations work on
the development of new products.
Patent applications are filed annually
for approximately 1,250 inventions.
Major development locations are in
Herzogenaurach, Schweinfurt and Bühl,
all of which are linked to other development
centers in Europe and Asia as
well as North and South America.
4
Schaeffler Group Success Factors
The Schaeffler Group is a family-owned
business – and this is its very special
success factor. One of Germany’s largest,
privately owned industrial companies,
it is characterized by social responsibility
and long-term thinking. In addition, a
streamlined and efficient management
ensures that decisions can be taken
quickly worldwide.
Schaeffler Group Brands:
INA
Founded in 1946 by brothers and
Ph.D. holders Wilhelm Schaeffler and
Georg Schaeffler in Herzogenaurach,
this rolling bearing manufacturer and
automotive supplier has become a global
player. The INA brand primarily includes
rolling bearings, linear systems and
engine components.
The success of this company with headquarters
in Herzogenaurach began in
1949 when Georg Schaeffler developed
the needle roller and cage assembly –
an ingenious invention that helped
needle roller bearings achieve their
international breakthrough.
In 1952, an INA-made needle roller
bearing replaced the previously used
plain bearings in VW Beetle transmissions
and played an important role in the
success of this million seller.
Today, there are hardly any passenger
cars without INA engine and transmission
components. Cam phasers and hydraulic
bucket tappets ensure higher performance,
reduced consumption, fewer
emissions and more driving comfort in
modern engines.

The high quality and reliability of its
rolling bearings, engine components and
linear technology products have made
the INA brand a sought-after and reliable
partner for numerous manufacturing
customers.
FAG
The FAG brand also started out with
an ingenious idea: in 1883 Friedrich
Fischer designed the first ball grinder
that could grind steel balls, making
them completely round. This invention
is generally considered the historical
beginning of the rolling bearing industry,
which started its triumphant road to
success in Schweinfurt. Ever since, FAG
rolling bearings – a registered trademark
since 1905 – have been synonymous
with first-class products and expertise.
Since its acquisition by Schaeffler in
2001, FAG has been an important brand
of the Schaeffler Group.
Whether it’s high-precision bearings
used in the Space Shuttle and Airbus
A 380 aircraft, wheel bearings with
integrated sensors in passenger cars
or large bearings with an outside diameter
of several meters for wind turbines,
FAG is the first choice for all major
customers from the aviation and aerospace,
manufacturing and automotive.
FAG’s range of products and services
is the perfect complement for the INA
brand.
LuK
In the Schaeffler Group, LuK is the
company that focuses exclusively on
the automotive industry.
LuK was founded by the Schaeffler
brothers in 1965 in Bühl and immediately
took the technological lead in the
market with its first innovative product,
a diaphragm spring clutch. This was
followed by a number of groundbreaking
products such as the self-adjusting clutch
for dual-mass flywheels and the chain
for continuously variable multitronic
transmissions. Innovation and technological
leadership are important company
pillars. Today, one out of four cars
worldwide has a LuK clutch.
LuK works closely with its customers
to find solutions for tomorrow’s automotive
world. Examples include dual
clutch transmissions, dual mass
flywheels, torque converters and
components for automatic transmissions,
all products that provide added safety
and comfort and fewer emissions.
LuK’s Langen-based Aftermarket Service
handles the automotive aftermarket
business for the entire Schaeffler Group.
5

Over the past decade, the Schaeffler
Group has successively established an
environmental management system it
can be proud of. All manufacturing sites
have been certified per ISO 14001 and
some even to the more stringent
European Eco-Management and Audit
Scheme (EMAS).
The Group’s non-European locations,
e.g. in the United States, Brazil, China,
India and Korea, have also successfully
passed inspection based on EMAS.
Since these countries are not part of
the European Union, these locations
cannot be registered and, consequently,
cannot be assigned a registration
number.
6
Global Environmental Protection
All current environmental certificates
and environmental statements as well
as the Schaeffler Group’s environmental
policy are available on the Internet.
With the validation and certification of
its manufacturing sites, the Schaeffler
Group has been leading the way in
environmental protection. The company
has received several awards for this
commitment, including the Bavarian
Environmental Medal and has been
awarded Ford Motor Company’s
“Recognition of Achievement, Environmental
Leadership“ award three times.
The Schaeffler Group’s worldwide commitment
to environmental protection
was recognized beyond its own region
when it was presented with the EMAS
Award in 2005.
All of the Schaeffler Group’s manufacturing
sites have an environmental
protection coordinator. At each location,
the plant manager is responsible for
ensuring environmental compliance.
The “Competence Center for Safety and
Environmental Protection” and its
competence groups both plan and
coordinate the strategic orientation of
the management system and provide
support on environmental protection
issues to all Schaeffler Group locations
worldwide.
Environmental Communication
The company’s intranet provides
comprehensive information: contact
persons, databases, a waste guide and
much more. This information is made
available to all employees worldwide.
Company newsletters and notices are
also used to inform employees.

Regular Conferences
Environmental protection conferences
held every year allow participants to
exchange information and coordinate
goals and actions. These conferences
last several days and are attended by
the environmental protection
coordinators from all locations.
Since environmental protection
conferences were first introduced,
cooperation and coordination
(e.g. for planning environmentally
relevant facilities) between all locations
have improved tremendously.
Global Regulations:
Plant Standards and Procedures
All actions relevant for the environment,
such as the approval of indirect
materials or the specification of
substances prohibited for use in
products and packaging, are regulated
globally by special plant standards.
In this way, the Schaeffler Group
ensures that hazardous materials are
used only if there are no other alternatives.
The EMAS Award (Eco-Management and Audit
Scheme) is presented to Schaeffler on October 3,
2005 in Villach.
(From left to right) Herbert Aichinger (European
Commisison, Directorate-General for Environmental
Protection), Miguel Tiago Lopes de Oliveira (Oceanário
de Lisboa), Norbert Hörauf (INA-Schaeffler KG),
Peter Engelbrechtsmüller (Engelbrechtsmüller Chimney
Sweeps).
The relevant departments are informed
in a timely manner about the use of
such materials, and the required action
is taken. This means that our customers
can be sure that products supplied by
the Schaeffler Group contain only
approved materials.
Safety rules and regulations also apply
to contractors working in Schaeffler
Group plants. A document detailing all
safety-related requirements has been
prepared for contractors working on
the plant premises. Contractors may
not enter the premises to perform their
work unless they have agreed in writing
to comply with these requirements.
Regular Internal and External Audits
The level and progress of the
company’s environmental protection
are also monitored by regular internal
audits at all manufacturing sites as well
as external audits by an independent
environmental verifier.
These audits are planned and
coordinated at company headquarters
and carried out by the Schaeffler
auditor pool.
All locations receive an audit report
that includes details of the current
status and recommendations for
improvement.
Due dates and responsibilities are
defined for all relevant measures.
7

Environmental pollution and the
depletion of resources can largely be
attributed to the increased consumption
of products. We must change our way
of thinking and insist on environmentally
friendly products that use
fewer resources and minimize the strain
on the environment. Our “Integrated
Product Policy (IPP)” addresses this
idea and aims to promote environmentally
friendly products.
The Schaeffler Group’s Advance
Achievements
This isn’t a new idea for the Schaeffler
Group; we have embraced this idea for
many years. We accepted the challenge
to design environmentally friendly
products a long time ago. What is
new are the methods and tools used
to achieve this goal. How can we utilize
previously untapped potential to
improve the ecobalance of a product
over its entire lifecycle?
New Inroads
One way to make environmentally
friendly products is to increase the
efficiency of the material and energy
used, thus reducing environmental
impacts. We continuously evaluate and
design all material and energy flows,
from the time they enter the company
to the time they leave as products or
residual materials.
8
Environmentally Friendly Products
Comprehensive Data Management
The company’s own environmental data
coordinator handles inputs and outputs
of material and energy flows for all
processes and products at the respective
plant. Material flow analysis helps further
integrate environmental management
into the company’s corporate units,
such as Logistics, Manufacturing and
Financial Controlling. Existing processes
and technologies are questioned
thoroughly, and additional opportunities
for improving processes are recognized
and put into practice.
Information Networks
Environmental impacts occur even
when resources are extracted. To make
products even more environmentally
friendly, the Schaeffler Group stays in
close contact with its suppliers and
customers. A shared network is used
to record and analyze environmental
information along the entire product
chain. The insights gained allow new
solutions to be recognized for environmentally
friendly products and sustainable
development.
Recycling
We try to ensure that manufactured
components are recycled at the end
of a vehicle’s service life. This is why
LuK and INA are founding members of
the Partslife recycling system.

Code of Conduct for
Responsible Company Management
The Schaeffler Group is continuing the
social responsibility of all Group companies
and sees this as a prerequisite
for lasting corporate success.
The Schaeffler Group’s Code of Conduct
is based on the principles of the
“Global Compact”, “The Global Sullivan
Principles of Corporate Social
Responsibility” and the standards of
“Social Accountability International”.
The basic principles described here
constitute a minimum standard for us
and do not affect country-specific
additions that are based on the relevant
cultural circumstances.
Human Rights
We undertake to observe the internationally
proclaimed human rights in
our sphere of influence.
Forced Labor
We will not engage in or associate
ourselves with use of any form of forced
labor.
Child Labor
We will not engage in or associate
ourselves with use of child labor in
our operations.
Discrimination and Respect of Others
We mean to provide a workplace free
of discrimination and harassment on
the basis of gender, race, skin color,
religious beliefs, age, national origin,
handicap, or sexual orientation.
Employees in our workplace deserve
each other’s respect.
Compensation and Working Hours
We recognize workers’ needs for
adequate remuneration and observe
the legally guaranteed minimum wages
in the respective labor market.
We observe the rules that apply to
working hours in each of our operations.
Relationship with Employees and
Employee Representatives
We respect our employees’ voluntary
freedom of association. Independent
of this, we also enable our employees
to express their interests directly to
management on a continual basis.
Reconcilability of Job and Family
We are a family-owned enterprise.
With our family-friendly arrangements
and provisions we strive to enhance
the satisfaction and motivation of
our employees and hence increase the
performance of the Group.
Health and Safety
We mean to provide a safe and healthy
working environment that meets or
exceeds applicable standards for
occupational health and safety.
We will take steps to prevent injuries
and occupational illnesses caused by
workplace conditions.
Workforce Development
We see the development of our
employees as an essential investment
in the future of our company.
We also value the development of
social and technical expertise.
Environmental Responsibility
We maintain an environmental
management system at all production
sites world-wide, which we continuously
improve. Local environmental
protection laws and the specifications
of the Schaeffler Group’s environmental
protection system must be observed
as a minimum. We collaborate with
our business partners and suppliers
in exercising our environmental
responsibility.
Conflict of Interests, Gifts and
Attempted Bribery
We give an undertaking that we will
not accept gifts or payments or hold
(company) investments which could
lead to a conflict of interests.
In particular, neither bribes nor
any other illegal payments may be
offered, made or accepted.
Suppliers
We encourage, where practicable,
our suppliers to introduce and
implement similar principles of social
responsibility within their companies.
Responsibility
We believe each of our employees has
an individual responsibility to follow
this Code of Conduct and encourage
coworkers to abide by it as well.
Management is responsible for
enforcing principles that become part
of our rules or policies.
9

Environmental experts around the world
agree that the global environmental
problems of our time can only be solved
if both economic and social factors are
also considered. On the one hand,
only economically healthy companies
pursue long-term environmental
protection activities, and from a social
standpoint people who are starving or
suffering social injustice cannot be
motivated to become active in
protecting the environment. The
“principle of sustainable development”
is based on these assumptions.
In line with its philosophy of accepting
new challenges, the Schaeffler Group
has tackled the concept of sustainability.
Generally, sustainability is not seen as
an additional job to be completed but
as an idea that offers new opportunities
since it links problems that were
previously treated separately. A view
that integrates economic, ecological
and social issues allows new solutions
to be found and thus contributes to
the sustainability of a company and
of society as a whole.
Although a lot has been said about
sustainability and social responsibility,
not a great deal has been done.
10
Social Responsibility
The examples below show that things
are different at the Schaeffler Group:
Health as a Social Factor
Preventive health protection is one of
the Schaeffler Group’s major social
components. We take up the challenges
associated with this responsibility by
implementing numerous measures and
projects. Medical checkups, workplace
inspections and medical workplace
consultation all help in meeting our
entrepreneurial responsibilities, such as
occupational reintegration after an
extended illness or fast first aid in the
event of plant emergencies.
Apprenticeships and Professional
Training for Future Needs
The Schaeffler Group offers
apprenticeships to a large number of
young people every year, making the
company a role model in vocational
training. After completing their technical
or administrative apprenticeships,
many former apprentices remain with
our company and use its comprehensive
range of additional professional training
courses to stay up-to-date, both in their
jobs and personal lives.
Commitment to People
The Schaeffler Group is dedicated to
ensuring equal opportunities for its
employees. This principle, which is also
included in the “Human Resources
Management Guidelines,” describes the
equality of all employees, regardless
of their gender, skin color or nationality.
Retirees are Still Part of It All
Even after our employees retire, they
have a number of opportunities to stay
in touch with their company.
Social security, justice and
consideration, training and company
pension plans aren’t just empty phrases.
The Group does its part to benefit
society, putting it on the right track in
its efforts to achieve sustainability.

Introducing the Location
in Schaeffler (Ningxia) Co., Ltd.
Schaeffler (Ningxia) Co., Ltd. with more
than 119,000 square meters is located
in Yinchuan, the capital city of Ningxia
Hui Autonomous Region in China. About
500 highly qualified employees work
at this plant.
Railway axlebox bearings (TAROL units),
including metric & inch are produced
with international quality. TAROL
bearings are mainly used in locomotives,
and freight as well as passenger cars.
The company invested heavily in
introducing imported technology,
completed inspection instruments.
It applied itself to manufacturing and
refurbishing railway journal bearings,
especially the high speed and heavy
load bearing as well as its components
and accessories.
Moreover, the company reconditions
used axlebox bearing units, also
production from various other manufacturers,
and this task is carried out
in a workshop separated from the new
bearing production.
11

Schaeffler Ningxia is capable of
producing 200,000 sets of TAROL
(New production) and around 100,000
sets for reconditioning annually.
Our main customers are the Chinese
Ministry of Railways (MoR), to which
we provide locomotive and wagon works
in China, international railway systems
manufacturers and railway operations
worldwide.
Schaeffler (Ningxia) Co., Ltd. has received
ISO 9001:2000 quality certification under
the Schaeffler Group cooperator
schedule (by TüV Sueddeutschland).
Further, Schaeffler Ningxia has been
accorded the AAR (American Association
of Railroad) certification as well as
approvals of several international
railway systems manufacturers product
and small celter quality system.
Additionally, ISO 14001:2004
environmental certification was received
in 2006. And OHSAS 18001 and EMAS
certificate was received in 2009 also.
12

Product at
Schaeffler (Ningxia) Co., Ltd.
Individual parts of a TAROL unit with lamellar rings
Backing
ring with
lamellar
ring
Sealing
cap
Bearing
inner ring
with roller
and cage
assembly
Individual parts of a TAROL unit with sealing rings
Backing
ring
Seal Seal wear
ring
Bearing
inner ring
with roller
and cage
assembly
Bearing
outer ring
Bearing
outer ring
Spacer
ring
Spacer
ring
Bearing
inner ring
with roller
and cage
assembly
Bearing
inner ring
with roller
and cage
assembly
Sealing
cap
Seal wear
ring
Seal
End cap
with
lamellar
rings
End cap
13

Changes in 2008:
1. Building TRB workshop
2. Turning department moved to
new workshop where forging
department is.
3. Oil and water separator for air
compressor is fixed.
4. Rebuilt many facilities in the
workshop, many auto-protection
equipment and guards were
installed.
14
Changes at the Location
Changes in 2009:
1. Schaeffler Ningxia organization chart
has been changed, and the plant
manager is in charge of general
responsibility of EHS work.
2. E&S coordinator is also coordinator
for ergonomics.
3. The layout of grinding and assembly
has been changed and according to
company organization the chart has
been changed.

Environmental Impacts
One of the primary objectives of
environmental protection is to prevent
adverse effects on the environment and
to minimize those effects that cannot
be prevented.
Input
Steel
Plastic
Oil
Grease
Paper
Electricity
Water
LPG/Gas
Methanol & Acetone
Emulsion
Phosphating materials
Kerosene
Chemicals
Packaging materials
A large number of measures have been
implemented to achieve this objective.
Process Description
Forging
Turning
Marking
Heat Treatment
Grinding
Super Finishing
Flaw Detection
Final Inspection
Phosphating
Washing
Assembly
Output
Bearing
Products Packing
Wastewater
CO 2
Exhaust gas & Odour
Waste Oil
Waste wood
Waste paper
Greasy dishcloth
Grinding powder
Used grinding wheel
Waste Emulsion
Noise
Waste
Phosphating liquid
Kerosene
Dust / particles
15

Legal requirements and permitted limits
The environmental protection and
occupational health system was setup;
it is base on state relevant law, and
we get many permits from government,
such as sewage discharging permit and
hazardous chemicals using permit etc.
Separate Waste Collection
Waste which is generated at this location
is collected separately, and 40 different
types of separated waste are recycled
whenever feasible. The solid waste
control procedure and chemicals & oils
control procedure can help employees
to separate the waste properly.
The waste management departments
often communicate with each other.
Waste segregation aims to effectively
prevent polluting the soil and water.
Fewer emissions
Industrial emissions such as emulsion
and grinding sludge have been reduced
considerably by using vacuum circulate
filters, and so has kerosene by using
new washing material. In the year 2009,
two departments – assembly and
grinding – increased a vacuum circulate
filter used by grinding department
resulted in the emusion consumption
and emission was decreased
significantly.
Noise is also an emission which can
affect the health of human beings.
Soundproof windows and doors have
been installed in the office buildings
and laboratories to minimize the noise.
In the workshops, our employees have
16
been made aware of this problem, and
earplugs have been provided to the
employees to reduce the effect. By far,
there has been no report or complaint
about noise problems by our neighbors.
Up to now, we use water, heat and gas
from Xibei Bearings Co., Ltd. We
discharge sanitary water into the city´s
sewer system. The electricity we use is
from City power system.
Save Energy
Energy saving is always as the
management target. We set the energy
saving target every year and many
continual actions were done such as
renew the machines, change the old
lamp with energy saving lamp, keep etc.
Additionally in order to minimize the
water consumption we change the water
valve and call upon all the employees
to save the water. Many measures have
been taken to reduce water consumption
further such as reusing water in
the shower room.
Active Water & Soil Protection
Leak proof floors and tops have been
installed in all storage areas to prevent
leaks and volatilization of potential
water & soil pollutants. Hazardous
substances are collected in a special
container.
To reduce environmental risks and to
save resources, central facilities have
been installed for large-scale
consumption of substances such as
grinding oil. A wastewater disposal
system is in the planning phase.
Before we build a new plant on a ground,
we carefully conduct accurate environmental
tests of the ground water and
soil in order to find out the soil & ground
water situation. If contamination found,
we will take measures to treat the
harmful substances.
Emergency and risk management
All person, vehicles and materials which
come in and which will leave our permises
will be controlled. Only checked persons
and vehicles are allowed to enter and to
leave the permises. The Logistic department
is directly responsible for managing
high risk materials, such as methanol
and acetone. An emergency plan to ensure
that all the accident can be solved and
controlled in time has been created.
Logistic and transportation
Transportation of products and goods
will be strictly controlled. The transportation
is considered contamination
during the packing process in order to
prevent. At the same time under the
premise of considering the cost, energy
saving transportation will be use
previously.

Indirect Environmental Impacts
Products and packaging
The main material in the products
at our plant is steel, which contains
virtually no hazardous substances after
machining. The unused parts can easily
be recycled and re-melted into raw
steel, thus ending the raw material
cycle.
The customer generally decides what
type of packaging is to be used. If
possible, reusable packaging is used
to reduce the environment impact at
our plant. Cardboard packaging and
wooden pallets are usually recycled.
External Transport and Logistic
Contractors are used for external
transports. Those transports are
coordinated by the logistic department.
Sometimes we also use internal vehicles
to carry products. We always remind
our contractors to take care of our
environment.
Employee transport
At our site, most of the employees
come to work by bicycle.
We have installed a bicycle parking
space outside of every workshop.
Suppliers
We always take supplier’s environmental
certificate into consideration.
We require all suppliers to follow our
environmental protection regulations.
Emergency and Risk Management
All vehicles, persons and goods which
enter or leave the permises will be
controlled.
We ensure that only authorized persons
and vehicles have access to the
company premises.
Plant guards check the vehicles and
goods in and out.
The Logistic Department is directly in
charge of the high-risk goods, such as
methanol and acetone.
17

Risk Management covers the topics fire
protection and plant security as well
as special requirements regarding the
usage/storage of particular chemicals
(methanol, propane, quench salt, toxic
substances, etc.) or out of special
manufacturing processes (machining of
magnesium, foundry, etc.).
1. Fire protection
a. Plant fire brigade
We have the compulsory fire brigade.
All members are selected from Guard
and by each department. Every year
we will make training and drilling of
all fireman, to ensure the whole
company can make quickly response
when there is any fire or emergency.
18
Risk Management
b. Fire-fighting equipment
Sufficient fire extinguisher and hydrants
were installed in our plant, and
deferent fire extinguishers were provided
according to the area deference.
c. Training and exercises
Except the compulsory fireman have
the fire training and drilling, all the
employees also will attend the fire
training and drilling.
2. Plant security
a. Access control (employees, business
partners and visitors, etc.)
The guards follow the security
principles to register the visitors and
distribute visitor cards. No visitor
can walk radam without staff’s
accompany or take photos without
the permit.
b. Contractors management
All contractors need to work in our
company must sign the EHS
agreement, and follow all the rules
of national and company.
c. Checkup (transports for dangerous
goods, etc.)
All vehicles which go outside of the
company, must be checked by
guards. All vehicles from other
companies must be registered at
guard room, before entering the
company.
3. Emergency plans and management
The company made an Emergency
Reponsibility Plan (ERP).
Any urgent situation, GM start the
ERP, and all depts follow the ERP.

Health and Safety
Schaeffler Ningxia pays much attention
to the work safety and occupational
health, continual improvement have
made on the workplace in order to
create a safe and comfortable environment
for employees.
1. Occupational safety
We commit ourselves to create a healthy
and safe workplace. Hazardous health
impact tests take place every year, any
emergency will be solved in time. The
occupational health examine we did for
all hazardous positions, and all the
reports should be documented.
2. Ergonomic issues
During we designing the layout and
choosing the machine, comfortable
workplace, measurably lighting etc.
ergonomic impact is considered.
3. Hygiene
We also pay attention to hygiene, and
we make many disease prevention and
hygiene information.
4. Occupational health
Physical examination for all employees
biennially, during the infectivity disease
come high frequency, we will organize
employees take more exercise, as well
as sterilize the public area, setting the
propagandistic information board to
provide the relevant hygiene information
to all employees.
19

Enterprises can not develop without
the government’s support, so Schaeffler
Ningxia participates the social service
actively every year.
1. Social benefits
In summer of 2008, our General Manager
Mr. Hofmann visited the Xixia district
orphanage to condole with the orphan
on books, summer quilts etc, and play
games with the childrens, to encourage
them to study hard.
20
Social Aspects
2. Projects with social demand
During 2008, there was a big earthquake
in Sichuan, except organize the employees
to donation. Our company also make
donation.
3. Cooperation with external welfare
services
Schaeffler Ningxia cooperates with the
Ningxia municipality foreign affairs contribute
the Ningxia Pengyang grade school
located in the needy mountainous area.
Company staff supported the education
in Schaeffler middle school in Wenchuan,
Sichuan Province.
4. Company sporting groups
Under company support, a badminton
team, a basketball team and a football
team were set up. They obtain good
mark in the games which were hold by
government and self organized with
friendly companies.

Environmental Indicators
for Emissions
21

The representation of the most
important environmental indicators
for this location is always prepared in
relation to the manufacturing material
used. In this way, the numbers for each
year can be compared, irrespective of
changes in headcount and manufacturing
fluctuations.
CO 2 Emissions
CO2 emissions have been calculated
with conversion index (1,000m3 Gas =
2.45 tons CO2, 1 Mwh Electricity = 0.48
Tons CO2)
CO2 emission is directly from natural
gas which is used in forging and heat
treatment department, and indirectly
from electricity consumption.
CO2 emission increased from 2004 to
2008, and the main reasons were gas
consumption and electricity consumption
increased yearly. In the year 2009,
CO2 emission decreased 20% compare
with 2008, it is due to the gas and
electric consumption decreased.
22
Emissions
7000
6000
5000
4000
3000
2000
1000
CO2 Emissions
Yearly CO2 emissions
0
2491.73
2005
29.18
163.24
4403.33
2006
23.26
273.59
4858.97
2007
25.87
250.72
CO2 Emissions from electricity use
CO2 Emissions from gas use
CO2 Emissions per bearing (kg/Set)
CO2 emissions per bearing
60
5484.35
50.12
2008
728.54
4412.15
CO 2 emissions have been calculated with conversion index
2009
41.84
387.30
(1000 m 3 Gas = 2.45 tons CO 2 1 Mwh Electricity = 0.48 tons CO 2)
50
40
30
20
10
0

Environmental Indicators
for Water
23

Water Consumption
(Based on the production material used)
As shown in the graph you see, the
water consumption increased yearly
from 2004 to 2006, is due to the
increased output.
Water consumption from 2007 to 2009
without big change; in 2009 the unit
water consumption is a little more than
in 2008, is also due to the output
decreased, we are continuing to improve
awareness and take more measures of
thrift in 2009. In 2009, 80% is industrial
consumption, other is sanitary
consumption.
24
Water Consumption
Water Consumption
Yearly water consumption
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
0.24
22000
40956
0.20
25468
0.13
2005 2006 2007
Yearly water consumption (m3 )
Water consumption per bearing (m3 /set)
Water consumption per bearing
0.40
0.23
28870
2008
0.24
28020
2009
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0

Environmental Indicators
for Energy Management
25

Electricity Consumption
(Based on the production material used)
From the graph, it is shown that the
electricity consumption increased yearly
from 2004 to 2008.
The main reason was increased equipment
and products and the company
tested many types of bearings from
2007. In 2008 the company set up
LSB workshop as well as introduced
new export product line. So the unit
consumption in 2008 increased by
80% composed to 2007. The total
consumption in 2009 is decreased more
than 2008, is due to the output
decreased, and in 2009, company
continues to optimize the consumption,
and take feasible action such as
replaced the energy-saving bulb and
valve.
Gas Consumption
(Based on the production material used)
The graph showes that the natural gas
consumption increased yearly from 2004
to 2006. The consumption in 2007
reduced because of lower output than
in 2006. The consumption increased
rapidly because forging production
increased very fast in 2008. But for
whole company finished goods reduced,
so the unit consumption is 2.4 m3 /set,
it is four times than in 2007. Total
consumption in 2009 decreased 47%
compared with 2008, is due to the
work hours decreased, but for the output
only have a little change compare
with 2008, so the unit consumption
decreased 40%.
26
Energy Management
Electricity Consumption
Yearly electricity consumption
12000000
10000000
8000000
6000000
4000000
2000000
0
5191100
Gas Consumption
Yearly gas consumption
350000
300000
250000
200000
150000
100000
50000
0
56.99
9173600
10122856
2005 2006 2007 2008
Yearly electricity consumption (KWh)
Electricity consumption per bearing (Kwh/Set)
0.73
66628
45.56
0.55
51.20
0.52
Yearly gas consumption (m3 )
Gas consumption per bearing (m3 /set)
Electricity consumption per bearing
92.17
100
80.14 90
11425726
2005 2006 2007 2008
80
70
60
50
40
30
20
10
Gas consumption per bearing
3.0
2.40
111669 102334 297364
9191977
2009
1.38
158080
2009
0
2.5
2.0
1.5
1,0
0.5
0

Environmental Indicators
for Waste Management
27

Waste Generation for Recycling
(Based on the production material used)
From the graph, the waste generation
increased yearly from 2006 to 2008.
Of which attributed to test new product,
introduce new machines and product
lines, etc. During the year 2009, there
are many saving measures to taken,
such as classify the office waste, and
27.45 tons scrap paper was collected,
total waste generation was decreased
35% compare with 2008, it is due to
the employees and output decreased.
There is no statistic data before 2006.
28
Waste Management
Waste Generation for Recycling
Waste generation
1800
1600
1400
1200
1000
800
600
400
200
0
880
0.004
2006
1150
0.006
2007
0.013
1673
Yearly waste generation (ton)
Waste generation per bearing (ton/set)
Waste generation per bearing
0.016
0.010
1099
2008 2009
0.014
0.012
0.010
0.008
0.006
0.004
0.002
0

Our Achievements
Numerous environmental protection
actions have been implemented at
this location since the last complete
environmental statement.
Objective
Reduce industrial
accident.
Save water
Save electricity
Save gas
Reduce carbon
dioxide generation
More training
Reduce waste
generation
Goal
Reduce the industrial accidents

Setting specific and realistic goals is
the only way to protect the environment
in the long run. Environmental programs
must include actions that can be
implemented.
Objective
Reduce industrial
accident
More communication
exchange
Save Water
30
Goal
Our Plans
Lost hours per employees decreased
to 5 hours per employees. (IN:4.5
H/P; EX:0.5H/P), Severity: 25days
per case(IN:20 D/Case; EX:5D/Case)
Communication with HQ and China
EHS team regularly, improve the
EHS management continually.
Reduce 5% water consumption of
each bearing compare with 2009
We have selected the most important
actions for the next three years.
Responsibilities for implementing these
actions have been clearly defined.
Environmental protection and occupational health target and program 2010
Program
1. More Safety/Operating/Self-
protection training for all
employees (not only managers
and supervisors)
2. Risk assessment &
improvement activity
3. Improvement of Ergonomic
situation
4. Forklift drivers training
5. Safety training for guards
1. Workshop once a year in
Schaeffler china region.
2. Teleconference once a
quarter with EHS china
team.
3. Organize the inner EHS
meeting once a month.
Separate meter should be
installed in each area to
measure the water consumption
clearly. Improve the
saving consciousness of all
employees, decrease waste.
The successful completion of
environmental programs further relieves
the environment within the specified
time.
Responsible
EHS/Xie Yunhui
All manager
EHS/Xie Yunhui
PM/SU Bo
EHS/Wang
Xiaopo
Deadline
2010.12.30
2010.12.30
2010.12.30

Objective
Save electricity
Save gas
Goal
Reduce 5% electricity consumption
of each bearing compare with 2009
Reduce 5% gas consumption of
each bearing compare with 2009
Program
Use the saver switch, take
more training for employees
to improve energy saving
consciousness, all the E&S
coordinator strengthen inspect,
to avoid longer running water
and longer lighting.
More inspection to prevent the
leak of PIpe and the valve.
Responsible
PM/SU Bo
EHS/Wang
Xiaopo
PM/SU Bo
EHS/Wang
Xiaopo
Deadline
2010.12.30
2010.12.30
31

Validation
Dr.-Ing. R. Beer, with EMAS
environmental verifier registration
number DE-V-0007, accredited or
licensed for the scope Schaeffler Ningxia,
declares to have verified the site
No. 86 South Wenchang Rd, Xixia District,
Yin Chuan, Ningxia, China.750021
as indicated in environmental
statement/updated environmental
statement of the organization
Schaeffler (Ningxia) Co., Ltd.
meet all requirements of Regulation
(EC) No 1221/2009 of the European
Parliament and of the Council of
25. November 2009 on the voluntary
participation by organizations in a
community eco-management and audit
scheme (EMAS).
By signing this declaration, I declare
that
the verification and validation has
been carried out in full compliance
with the requirements of Regulation
(EC) No 1221/2009.
the outcome of the verification and
validation confirms that there is no
evidence of non-compliance with
applicable legal requirements relating
to the environment.
32
Validation and Responsibilities
the data and information of the
environmental statement/updated
environmental statement of the site
reflect a reliable, credible and correct
image of all the sites activities, within
the scope mentioned in the
environmental statement.
This document is not equivalent to
EMAS registration. EMAS registration
can only be granted by a Competent
Body under Regulation (EC) Nr. 1221/
2009. This document shall not be used
as a stand-alone piece of public
communication.
Done at Schaeffler Ningxia,
on 14.04.2010
Dr.-Ing. Reiner Beer
Responsible for environmental
protection and safety at the Schaeffler
Ningxia location:
Mr. Namgui Shin
Chief operating officer, China
Responsible for environmental
protection and safety statement at the
Schaeffler Ningxia location:
Wang Xiaopo
Environmental protection coordinator
The next environmental statement will be submitted for validation in 1. May 2012 at the latest.
In the years between, an annual update of the Environmental Statement will be compiled for validation by the environmental
verifier.

Questions about environmental
protection and safety at the locations:
Schaeffler (Ningxia) Co., Ltd.
Questions about environmental
protection and safety at the Schaeffler Group:
Schaeffler Technologies GmbH & Co. KG
brendli@t-online.de
0732, 49 / 31 91 (0) +49 Tel. Print: and Design
Xiaopo Wang
Norbert Hörauf
Every care has been taken
No. 86 South Wenchang Rd.,
Industriestraße 1-3
to ensure the correctness of the
Xixia District, Yin Chuan 750021
D-91074 Herzogenaurach
information contained in this
P.R. China
Internet www.ina.com
publication but no liability can be
Internet www.fag.com
E-Mail Norbert.Hoerauf@Schaeffler.com accepted for any errors or omissions.
E-Mail wangxop@Schaeffler.com
We reserve the right to make
In China:
technical changes.
Germany:
Phone 951 202 18 08
Phone 0 91 32 82 20 58
© Schaeffler Technologies
Fax 951 202 92 76
Fax 0 91 32 82 45 20 58
GmbH & Co. KG · 2011, January
From other countries:
From other countries:
This publication or parts thereof
Phone +86 951 202 18 08
Phone +49 91 32 82 20 58
may not be reproduced without
Fax +86 951 202 92 76
Fax +49 91 32 82 45 20 58
our permission.
The structure and contents of this report correspond to the requirements stated in Annex IV of Regulation (EC) No. 1221/
2009 of the European Parliament and the Council dated November 25, 2009 regarding the voluntary participation of
organizations in the eco-management and audit scheme (EMAS).
Moreover, the report contains information about issues pertaining to occupational safety, plant security and fire protection
as well as general information on social benefits provided by the company and this location.