JAPAN AUTOMOBILE RECYCLE NETWORK NEWS

Vol. 86APRIL 2015

http://www.jara.co.jp

Published by JARA Corporation
Tokyo Head Office: Shinwa Bldg. 1-2-2-7F
Nihonbashi, Chuo-ku, Tokyo, JAPAN 103-0027
Phone: +81 3 3548 3010 / Fax: +81 3 3231 4690

have progressed.
CO2 Reduction EffectWith the planned(based on Super-Line System)
integration, “Wewill build a strongerorganization”, said
The use of Reuse Parts saved
JARA Chairman
Goro Domon. The
2,883 tons of CO2 emissions
two companies
hope to reach ain February 2015
basic integration
The reference figure represents theagreement withindifference of carbon dioxide (CO2)
this year.
emissions at the vehicle repair using
B i g W a v egenuine (new) parts and recycled parts.*
President Atsushi*: Based on "Green Point System", which was
Hattori referred tojointly developed by the Japan Automotive Parts
the importance ofRecyclers Association and Waseda University
the attitude toward the coming talks, saying:
Major online sales groups of automotive
Environmental Research Institute using a life cycle
assessment (LCA) technique.
“By taking into account the difference inrecycled parts, JARA Corporation and Bigculture of the two companies, we should all
Wave Co., unveiled their plans to create aboth distribution and its organization todiscuss this together and come to an
new integrated company. JARAsurvive”, said Hattori. Even if integrationagreement”. Big Wave, which was
Corporation was established in April 2014
takes place, despite expanded membership, aestablished in 1986, has led the market as
when the former SPN Co. and EcoLine Co.
key issue will remain: How to raise thetheoldest
distributorofrecycledpartsinmerged. The new entity, if created, wouldprofitability of each member company.
Japan.
On
theotherhand,reborn-JARA
have approximately 250members, the most(Daily Automotive News, Mar. 19 issue)
startedits
businesslastyear.
Since
thereisain the industry. The move will also help
completediffe
renceofbu
sinessaccelerate reorganization in the recycled
circumstances between the two companies,
parts industry, which faces mounting
a key focus will be how they set up the newproblems such as difficulty in end-of-lifeentity’s management structure after thevehicle acquisition and intensifyingmerger.
competition with rivals.
(Part 2 of a series reporting on theAs for SSG and ARN, both which joined
JARA President Sosho Kitajima stressedBEST,“Therelationshipwith
thesetwoproceedings at “The 1st Auto Recycling
the significance of the planned management
groups will remain unchanged. We will bemerger at a press conference jointly heldSummit” held in Tokyo on Jan. 29 by thedoing mutual distribution with ARN as
with Big Wave in Tokyo on Mar. 12,
Nikkan Jidosha Shimbun Co.)
before”, said Hattori.
saying: “I think the pros (of theThe business environment of themanagement integration) would outweigh
The ELV generation in Japan is expected toautomotive
recycled parts industry isthe cons”. The two companies have so far
decline in the future. Under such
becoming tougher and tougher due to not
pursued collaboration with each other in thecircumstances, some groups in the automotive
Published by SPN Co., Ltd.
only a shortage in ELVs acquisition, but
areas of mutual distribution of parts
recycled
makingefforts toJAPAN AUTOMOBILE
RECYCLENETWORKNEWSTokyoparts
Head businesses
Office: ShinwaareBldg.
1-2-2-7F
alsotransport
cost
hikes.
Thus,
thediffusion
through network linkage and holding joint
Nihonbashi,Tokyo,
JAPAN 103-0027
strengthen
theirChuo-ku,
businessfoundations,such asof recycled
has not progressed and isseminars under the BEST brand.
As a MARCH
Vol. 02
Phone: +81 3 3548 3010 / Fax: +81 3 3231 4690
2008 partshttp://www.spn-partner.com
by keeping
close contact with auto auction
actually at a standstill. To break through thisresult, both parts distribution and–Continued on Page 2
situation, JARA and Big Wave “will expand
communication between the two companies

Merger talks start between
JARA and Big Wave

Current status and issues
for auto recycling

JAPAN AUTOMOBILE RECYCLE NETWORK NEWS No.86 APRIL 2015 < 2 >METI, MOE review auto
recycling law focusing on
three themes
The sorting out of necessary issues forreview of the automobile recycling law began
on Feb. 17 with the Ministry of Economy,
Trade and Industry (METI) and the Ministryof Environment (MOE) kick-starting
discussion by outlining three key themes thattake into consideration information gatheredfrom organizations concerned. The
operational status of the law and related issues
are at the core of the discussions, during
which participants were quick in the inauguralsession to voice their opinions, thus
heightening anticipation about the outcome.
Whether the current system will remain inplace or not is already a key point formembers of the automobile recyclingindustry. And, in response to the globalizationof the industry, the discussions are also
expected to touch on, for the first time, the“internationalization of automobilerecycling.”
At the first session, METI and MOE
proposed that overall discussions focus on: (1)promotion of the 3Rs related to automobiles
and quality improvement, (2) stable andefficient use of the law, and (3) the ideal
system for automobile recycling in the future.
–Continued from Page 1
operators to secure ELVs for recycling.
The East Japan Auto Dismantlers
Association, which has been actively involved
in resource collection, is now rolling out its
precise dismantling process called “East JapanModel”. “We are making effort to add value
as much as possible despite few ELVs”, said
Chairman Chiyoshi Tsubo, at the summit. To
do so, the group has conducted a series ofanalyses on materials that can be retrieved
from parts. Management efforts to eke out
profits in a shrinking market are essential.
Many representatives expressed theirconcerns about transport cost hike. Overalltruck transport traffic has increased partly due
to a boom in mail-order services, resulting ina shortage of drivers, which, thus, had led toincreased transport costs. “Transport costs
have gone up in an excessive manner”, said
Yoshio Amaoka, chairman of the Sea Lion’sClub. The extra cost is absorbed by recyclers
in some cases, but it is burdened by customers
in other cases. At any rate, the price advantageof recycled parts over new parts only weakens
as the price gap narrows.
There is a move to get a handle on theproblem. System Auto Parts rents a joint

For the promotion of the 3Rs in
automobiles and quality improvement,
considerations include the promotion of 2R(reuse and reduce) and strengthening measures
to respond to the next-generation vehicles andnew materials.
As for the stable and efficient use of thelaw, discussions are expected to center on theoverall automobile recycling system, itself.
Main topics will be how to raise the awarenessof rebuilt and reuse parts among users, as wellas cost savings in the entire recycling schemeon the social level, including review of the useof earmarked deposit for resource recycling,
and the sorting out of roles of designatedcorporations. In addition, the position of“ELV collectors” will be discussed, as many
people have said that the position of such isunclear. The strengthening of measures torespond to illegal yards and inappropriate
processes, for which dismantlers previously
urged that action be taken, was also identified
as an issue needing discussion. As for theremaining items after resource recycling, theauthority identified inappropriate processes
and false reports by related operators, so these
also will be issues to be discussed in the scopeof evaluation system and recycling processmonitoring under the law.
In discussing the ideal system for
automobile recycling in the future, “thesustainable and autonomous development of
the automobile recycling law” has been set as
the main topic.

As the automobile recycling system isalways affected by changes in new car sales
and the price fluctuation of resources, it needs
to be able to flexibly respond to external
factors, as well as make achievements in costreduction. Therefore, the necessity of possible
measures to be taken will be discussed. As forthe “internationalization of automobilerecycling,” which is likely to become a big
issue in the future, not only dismantlers but
also knowledgeable persons are calling forJapanese know-hows to be provided to help
developing countries address problems withdiscarded cars, thereby contributing to theglobal environment.” As such, discussions will
look at how to Japanese technologies andsystems can be used to contribute to the world.
Participating members also voiced opinions
on the necessity of value chain creation for thecollection of precious metals from nextgeneration vehicles and how to recycle suchmaterials, as well as on the role and duty ofdesignated corporations.
Also at the Feb. 17 meeting, the results ofinformation-gathering by the General
Insurance Association of Japan, the status of
ASR recycling, and the developments of nextgeneration vehicles were explained.
Discussions are to continue under thethreethemes outlined by METI and MOE. A
conclusion, originally set to be reached within
this fiscal year ending March 31, 2015, isexpected by this summer, at the latest. (Daily
Automotive News, Feb. 19 issue)

warehouse for its members in Yokohama andmanage the parts inventory. “Parts can gofrom Yokohama to Hakata in a day”, said
Managing Director Yuki Sato. “Although mycompany is in Akita, deals with member
companies have increased. By using theYokohama warehouse, the market simplyexpands.” Joint warehousing is likely to
become one way to break through the logistics
problem of high transport cost. On the other
hand, NGP is making effort to reducetransport costs by use of common packaging
made of returnable materials for recycledparts, such as engines and bumpers. Transport
costs represent the “Achilles tendon” ofrecycled parts distribution, and will remain an
important challenge for the industry.
What is wanted for market expansion is tofurther promote the wide-spread use ofrecycled parts. The market share of such parts
is said to stand at only five percent of total
replacement parts sales in Japan. Hiroshi
Fukazawa, chairman of Rebuilt Manufacturers
Association Japan, pointed out, “Compared toEurope and the United States, Japanese
consumers have a different value.” Theawareness of recycled parts in the generalpublic is far low in Japan. Commercial
vehicles are not an exception. Maki

Miyamoto, chairman of the Truck Refine Parts
Association, said, “The awareness might evenbe lower than that in the case of passengercars.”
Actions for raising awareness andpromotion of use in society are alreadyunderway. Shimizu Nobuo, chairman of theJapan Automotive Parts Recyclers
Association, introduced the association’sactivities, saying, “Five groups including
JAPRA and general insurance companies areconducting promotional activities aimed at end
users.” JAPRA is doing such things as
distributing flyers to people in front of a train
station in metropolitan Tokyo that describe thebenefits of using recycled parts. On the other
hand, SSG, a Hokkaido-based group, targets
end users. “We distribute flyers to the generalpublic, and last year, created a poster targeting
consumers, which we asked be put up at repair
shops,” said Yasuomi Hamada, president ofSSG.
The users of recycled parts are repair shops,
while the end users of such parts are generalconsumers. To achieve the widespread
acceptance and use of recycled parts, a steadyand continuing effort is needed. (Daily
Automotive News, Feb. 6 issue)

JAPAN AUTOMOBILE RECYCLE NETWORK NEWS No.86 APRIL 2015 < 3 >コベルコが提案する
新しい考え方
1979年世界初の自動車解体機の発売以来、30年以上にわたって金属リサイクル分野で常にリードし、環境負荷の低減に貢献してきました。
マルチ解体機
使用済み自動車の解体以外にも廃家電などの金属製機器の解体およびさまざまな複合廃棄物の解体・分別作業が可能です。

New ideas comefrom KOBELCO
Since launching the world’s first car-dismantling machine in 1979,
KOBELCO has continued to take the lead in the metals recycling industry.
For over 30 years, we have contributed to reducing environmental impact.
Multi-Dismantling Machine

Car-Dismantling Machine

In addition to dismantling end-of-life cars,Multi-Dismantling Machine can break down
various metal products and equipment
such as used household appliances andcan separate and sort various composite
material wastes.

Car-Dismantling Machine efficiently
separates and sorts raw materials in
end-of-life cars and is able to recoverrare earth metals.

http://www.kobelco-europe.com/
http://www.kobelco-kenki.co.jp/

新构想源于神钢
1979年世界第一台汽车拆除机发售以来，
30多年来一直引领金属再生领域，
在降低对环境压力方面功不可没。

http://www.kobelco-usa.com/

새로운 발상은KOBELCO에서
1979년 세계 최초로 자동차 해체기를 출시한 이래,30여 년에 걸쳐 금속 재활용 분야에서 항상 앞장서서환경 부하 저감에 공헌해 왔습니다.

多功能拆除机

汽车拆除机멀티 해체기不仅可以拆除不再使用的汽车，还可以可快速进行报废汽车内素材的分类作业，용도 폐기된 자동차의 해체 외에도 폐가전제품 등 금속제 기기의

拆除废家电等金属制机器以及各种复合

能够回收稀金属资源。

해체 및 다양한 복합 폐기물의 해체 • 분리작업이 가능합니다.

废弃物品的拆除、分类作业。

http://www.kobelco-jianji.com/

http://www.samjung-kenki.co.kr/

JAPAN AUTOMOBILE RECYCLE NETWORK NEWS No.86 APRIL 2015 < 4 >Go Go Japan Industry (M) Sdn Bhd
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