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Dynagon's Achievement in Chemical Safety Management

Dynagon Co., Ltd., headquartered in Shinagawa, Tokyo, has once again been recognized for its SDS software, Smart SDS, under the Ministry of Health, Labour and Welfare's electronic SDS subsidy program. This recognition marks the second consecutive year that Dynagon's Smart SDS Make and Smart SDS Check have been approved since the subsidy program started in 2025. The electronic SDS subsidy is designed to enhance the management of safety data sheets (SDS) and risk assessments, which are vital documents that outline the dangers and hazards associated with chemical substances.

Understanding SDS and Its Importance

SDS stands for Safety Data Sheet. It serves as a crucial document that contains information on the potential dangers and harmful effects of various chemical products. The purpose of SDS is to prevent accidents related to chemical substances through proper management. With recent legislative changes, such as the amendments to the Industrial Safety and Health Act coming into effect in 2024, the number of substances classified under SDS has significantly increased. As a result, there is an urgent need for efficient management practices, especially considering global trade disruptions and changes in supply chains due to geopolitical issues like the closure of the Strait of Hormuz.

Impact of Geopolitical Issues

The Middle East's geopolitical tensions have raised concerns over sourcing naphtha, which is critical for various chemical processes. Many companies are now reassessing their supply chains and considering alternative sources or substitute products. This shift necessitates meticulous safety management processes, including verifying SDS compliance and conducting risk assessments, to ensure safety during procurement.

A survey conducted by Dynagon involving 100 representatives from chemical manufacturers and importers revealed that approximately 54% of respondents reported that the anxiety surrounding naphtha sourcing has affected their chemical management operations. Companies are now required to establish compliance with over 20 relevant laws and accurately document information for each chemical in their SDS, adding significant workload on their safety managers.

Challenges Post-Law Amendments

The revision of the Industrial Safety and Health Act in 2024 has increased the compliance burden on industry professionals. The number of substances considered in the SDS documentation is expected to multiply from 674 in 2016 to nearly 2,300 by April 2026. This surge in requirement places a hefty burden on professionals tasked with maintaining compliance, as they must determine which of their products contain regulated substances and provide corresponding SDS documents.

Furthermore, companies must retain risk assessment records for three years, which adds to the workload, leading to demands that surpass the actual increase in regulated materials.

Overview of the Electronic SDS Subsidy

The electronic SDS subsidy program supports businesses in transitioning to a standardized data structure for SDS that facilitates seamless information sharing between companies and systems. Launched in 2025, the program aids enterprises in adopting suitable systems that streamline the creation and management of SDS, thus promoting autonomous management and reducing chemical accidents.

Eligible small and medium-sized enterprises can receive a subsidy covering 50% of their system implementation costs, up to a maximum of 1 million yen. In particular, services like Smart SDS are conducive to meeting subsidy requirements, which will cover three years of service fees.

Resources for Implementing Smart SDS

Dynagon aims to leverage this subsidy to enhance digitalization in small and medium enterprises that have previously faced barriers to accessing paid systems. The company intends to triple its current user base of Smart SDS to 300 companies during the subsidy period, promoting efficient chemical management across the supply chain. Furthermore, Dynagon is offering free consultations for companies interested in the subsidy, guiding them on the feasibility of integrating Smart SDS and the application process.

Dynagon remains steadfast in its mission to eliminate chemical-related accidents, promoting a culture of safety through advanced technology.

For more about Dynagon and its services, visit their websites: Smart SDS Make and Smart SDS Check.

About Dynagon

Founded on May 15, 2023, Dynagon is dedicated to driving technology that fosters health and safety in society, particularly through its innovative SDS solutions developed under the leadership of CEO Shingo Sakamoto. For more details, visit Dynagon.