JARA NEWSfrom
Japan Automotive Recyclers Alliancewww.jara.co.jp

Two recycler groups hold ajoint New Year Gathering
BEST Recyclers Association (BEST) andJapan Automotive Parts Recyclers Association(JAPRA) held their first joint New Year
Gathering on January 25 at a hotel in Tokyo.
Until the previous year, they had each held aseparate gathering. A total of 250 people related
to the auto recycling industry attended the joint
event.
At the beginning of the gathering, executive
committee chairperson Nobuo Shimizu said:“Although the business environment of ourindustry is not optimistic, a closer tie between
the players of demand and supply is important
this year.” He also stressed the cooperation andcompetition by saying: “The important thing iscooperation and competition toward going inthe same direction. You need to compete withWe are JARA members
Mitsumori Corporation, salesof 'replace' parts go well
Mitsumori Corporation, Sendai City, Miyagi
Prefecture, closed its dismantling division last
fall and operates as a trading house for recycled
auto parts. The decision to make the big change
was taken nearly 5 years ago by the former
president Takayuki Moriya, who suddenlypassed away on September 15 last year. Now
reborn Mitsumori Corporation offers newly
invented 'replace' parts in addition to its lineup
of 'reuse' and rebuilt parts.
Former president Moriya had led the industry
for nearly 30 years. His own company features
80 percent of total sales coming from therecycled parts business, which is an unusually

The company's original 'replace'parts muffler features high quality
at a low cost

others using originality and improvement, andnot get into a power game.”
Shimizu had led the industry as JAPRA
Chairman for a long time. Hiroyuki Kurihara,
who succeeded the chairman last December,
expressed thanks to Shimizu’s achievement.
Kurihara then said: ”Last year, we have seen aseries of bankruptcy and business closures. So I
have a sense of crisis. All the companies should
work together to survive.”
Attending guests included Akira Hosaka,
Automobile Recycling Department of theMinistry of Economy, Trade and Industry, andTo s h i h i k o K u d e , A u t o m o b i l e S e r v i c e
Department of the Ministry of Land,
Infrastructure, Transport and Tourism. Hosakasaid: “We expect a challenge out of the box
through tightened relationships with eachgroup.” Kude said: “Even for picking up andinstallation work of recycled parts, higher leveltechnologies will be required.”At the gathering, people also happened to seelarge ratio in the industry. Other recycling firms
mostly depend on dismantling and scrap sales
business. President Hiroko Okubo recalls: “Theformer president is always thinking of businessthat is not affected by the market price.” Themarket price of scrap steel has largely fallen
last year. It was natural that the company shut
down its dismantling division at that time. At
the end of last August, the company closed its
Ougimachi Plant, which performed automobiledismantling.
President Okubo said: “Now we all look in
the same direction. I would like to express mythanks to people who gave us support after theformer president died.”
One of the company’s features is its ownmade replace parts for mufflers and propeller
shafts, and head lights. These parts are produced
by replacing damaged part of the original parts
with a new one. Manabu Suzuki, company
director, said: “The idea of the replace parts
came from a suggestion of an employee. Theformer president also supported the idea.” If

President Hiroko Okubo, left,and director Manabu Suzuki leadthe company

March 2017, No. 109

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

New chairman Kurihara, right, and former
chairman Shimizu, left, who accepted abunch of flowers
a symbolic event of the industry moving towardunity. Atsushi Hattori, president of Big Wave,announced in front of the attendees that thegroup will join JAPRA. His announcement waswelcomed with cheers and applause. (Daily
Automotive News, Feb, 2 issue)
a part of an original muffler is damaged say
because of rust, it is replaced with new pipe andstay and then welded. A replace propeller shaft
is made by replacing a non-destructive spider,and then checking the balance. These are well
supported by customers because of their low
price and high quality performance.
Suzuki also stressed the stance of cooperation
with others: “We make these parts simply
because rebuilt parts makers do not. We have nointention of expanding this business area.”
President Okubo expressed her view: “I wantto make our company the one which people
say is great to work with. Both people and thecompany can develop in the future. ” Suzuki
said: “I will keep the business motto, which
the former president usually said, ‘always bespirited and greeting’”
Meanwhile, the company has a problem withthe front-desk’s capability of fully responding
to the customers’ requests. Therefore, “We haveto increase payroll, both for sales and front-deskstaff,” said Suzuki.

Headquarters of Mitsumori
Corporation'Replace' propeller shaft is
produced with the support frompartner companies

JARA NEWS No. 109 March 2017 Page 2
CO2 Reduction Effect(based on JARA System)

The use of Reuse Parts saved

3,137 tons of CO2 emissions
in January 2017
Executives of automobile recycling groups
attend from across the country

Japan ELV Recyclers Association C.E.O.
Sakai opens the debate

The 3rd report ofAuto Recycling Summit

Automobile Dismantling Union, analyzes thesituation by saying: “They often say the market
prices go bad. It is usual that this occurs for a longtime. The recent fall of the market price might
affect a little, so you don’t have to hurry.”

Current status and issues forthe auto recycling market
Daily Automotive News hosted the 3rd Auto
Recycling Summit on February 3 at a hotelin Tokyo. About 40 people attended the event,including those who are executives of auto
recycling groups and government staff. They
discussed current status and issues related to theauto recycling market. The first part of the total
three reports is summarized below.
“It’s really hard.” Yasuo Sakai, C.E.O. of
the Japan ELV Recyclers Association opened
the debate, suggesting the real status of theindustry. There are a lot of negative factors, suchas declining ELV generation in line with theshrinking demand for new cars and an increasein used vehicle exports from Japan. In addition,
the scrap steel price has fallen, ELV procurement
costs have increased, and transport cost increases
are also applying pressure. “It is easy to see theseriousness of our situation when you look at ourfaces at seminars,” said Ichiji Hayakawa, JapanParts Association.
Among others, a declining number ofacquisitions (collection) of end-of-life-vehicles(ELVs) is a critical issue. “Difficulty in collecting
ELVs is a big problem for us,” admitted JAPRA
Chairman Kurihara. “It is natural that the market
price changes. You should not be affected by suchchanges,” said Big Wave Hattori. “At present,
most recyclers earn money from a three pillar
business: parts sale in Japan, export and scrap
steel sales. Recently they are affected by declining
ELVs,” he added.
Chiyoshi Tsubo, Chairman of the East JapanARN C.E.O. Okada, center, seriously listens
to the discussion

Hideyuki Doi, President of System Auto Parts,
pointed out: “In recent years, the flow of ELVs haschanged. The number of vehicles going to auto
auctions has increased. We even have to procure
vehicles from such places to pick up parts, or wecannot do business.”
Shojiro Hatomura, C.E.O. of Buyukai
Corporation, said: “We have to compete to getvehicles at auctions. Vehicle prices at auctionsare high even for very old like ELVs.” Masayuki
Harigaya, President of Total Ecology Car LifeService Network, said: “The procurement costdoesn’t fall, while the scrap prices are falling.
As a result, competition is getting more intense.
Our selling prices are also going down. That’s theproblem.”
The situation is applicable not only forpassenger cars, but also for trucks. Masaki
Miyamoto, C.E.O. of the Japan Truck Refine Parts,
said: “As far as we have seen our 47 members,
their businesses have been steady for the pastyear. However, differences began to appear
between them by region and ELV acquisition.”
JARA Corporation’s President Sosho Kitajima
stressed: “A synergy effect has resulted since we
had a merger three years ago.” Parts sales are
growing through each of its two systems and ELV
acquisition is also going well with the support
from Toyota Tsusho Corporation.
Hiroshi Kudo, Director of SSG, said. “In thefuture, procurement will get much more difficult
owing to a declining number of vehicles in use
and fewer traffic accidents.” It is true. But how
does each group handle business under a sense ofuncertainty?
Takanori Okada, C.E.O. of Automotive
Recyclers Network, to which regional parts

This time user groups of recycled parts alsojoined the event, such as JASPA Secretary
General Ito, right.

The reference figure represents the difference of carbon
dioxide (CO2) emissions at the vehicle repair using
genuine (new) parts and recycled parts.**: Based on "Green Point System", which was jointly
developed by the Japan Automotive Parts Recyclers
Association and Waseda University Environmental
Research Institute using a life cycle assessment (LCA)
technique.

wholesalers joined, said: “We have had a study
meeting to grasp the whole picture of the auto
aftermarket. We have to handle not only reuseparts, but also rebuilt parts and new parts.”
Harigaya also stressed: “The primary theme is how
to get added value from a vehicle. This way, we aregoing to improve our business performance.”
Tsuyoshi Ishigami, Vice Chairman of the Total
Car Recycle Group, said: “Besides today’s profit,
we are exchanging information with members
to explore investment opportunities for the nextchallenges.” Yukio Sato, President of NGP Group,said: “Our effort is to help members get stablemanagement. And we have to create a group-wide
policy. So we need to go forward together withother groups.”
Norihiko Kondo, C.E.O. of RUM Alliance, anon-profit organization, stressed: “Our challenge isto know how to survive in hard times. By focusing
on precise parts recycling, we have to transform
our business into one that is not easily affected by
the market price.
At the 3rd summit, user groups of recycledparts also participated in the discussion. Yasushi
Yamamoto, Vice Chairman of the Japan Auto BodyRepair Association, hinted at a potential expansionof the use of recycled parts, by saying: “Many carusers are going to car repairers without insurance
coverage after the premium rate was revised.
Therefore, the use of recycled parts is increasing.”
Masanobu Ito, Secretary General of the Japan
Automobile Service Promotion Association(JASPA), said: “The auto repair industry might
move toward using more recycled parts owing tothe insurance premium rate change. Corporate fleet
vehicles, in particular, prefer recycled parts ratherthan new parts. I think we need to further cooperatewith the recycling industry.” (Daily AutomotiveNews, Feb. 9 issue)

JARA NEWS No. 109 March 2017 Page 3

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