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

JARA holds ATRS regional
workshop in Tokyo
On September 9 Japan Automotive Recyclers
Alliance (JARA) held its Automobile Total
Recycle System (ATRS) Regional Workshop inTokyo. This was the third workshop after those
held in Sendai and Nagoya and was attended by
17 companies.
Three new features of the ATRS wereintroduced: “parts taking guide,” “genuine parts
number retrieval,” and “QR code quick
registration for vehicle inspection certificate”.
The parts taking guide automatically displays
the parts to be recycled of the vehicle based ondata of sales, unit number, and inventory
rotation. So far, recycling processes havedepended mostly on experience and intuition.
This new feature allows the transformation of
the processes into an automatic system, thereby
producing recycled parts efficiently.
The genuine parts number retrieval helps
user to locate find the numbers of thecorresponding parts when these have beenregistered, resulting in an efficient process.
The QR code quick registration for vehicle
inspection certificate is a tool for reading theQR code printed on the certificate through a

CO2 Reduction Effect(based on JARA System)

The use of Reuse Parts saved

2,491 tons of CO2 emissions
in August 2017
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.

handy scanner. With this feature, relevant
vehicle information, such as chassis number andengine type, can be easily scanned andregistered in the system. Moreover, by linking
this with other data, such as model and year ofmanufacture, the feature allows the generationof detailed vehicle information.
The workshop also introduced the “ELVMode” feature that improves convenience forusers. It provides an automatic calculation of therecycling fee and creates an accounting form byusing the chassis number. JARA said that this isa vehicle management system for performing
proper recycling processes in accordance with
the Automobile Recycling Law (Daily
Automotive News, Sept. 14 issue).

JARA and manufacturers of
new and rebuilt parts hold agathering
JARA hosted its “One-on-One Meeting &Gathering” for its partner manufacturers ofrebuilt parts and new parts in Tokyo.
The event was attended by 20
representaticves from 16 companies. Unlike a
conventional meeting, the one-on-one session
provided a platform for the frank exchange ofviews of these manufacturers (Daily AutomotiveNews. Sept. 7 issue).

MOE hosts Summer Trial
for students
The Ministry of Environment hosted its
Summer Trial A Course for students on August
29 and 30. Twenty-nine students participated inthe 2-day event.
Twenty nine students participated in the twoday event. Through lectures and a field trip, thecourse aimed at cultivating their abilities toidentify and solve problems, which are essential
skills for governmental officials.
On the first day, the students learned about
the promotion of the 3Rs and quality
enhancement through lectures and a group
discussion in the building of MOE.
One the second day, participants visited
Showa Metal Co., Koshigaya Fender Co., and UParts, Inc. They observed automobile recycling
processes, which spanned dismantling,
shredding, material collection, and production ofreuse parts. They also listened to recyclers’

October 2017, No. 116

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

comments on operations and issues. A student
said, “I found there was a manual process in thebumper process. I think it would be quite
profitable if it is simplified.” Another said, “Onepart was pressed even if it looked clean. Why?”
They seemed eager to deepen theirunderstanding of automotive recycling (DailyAutomotive News, Sept. 7 issue).

JARA distributes area sheet
JARA distributed its Area Sheet that clearlyshows the damaged portions of vehicle exterior
panels to its members. It is a 10 centimetersquare sheet and comes with two types ofapplication: vinyl and magnet.
JARA recommends the use of this sheet
when taking photos for highlighting thedamaged portion. Through these photos, JARA
members can communicate the area of thedamaged portion to customers at a glance. The
area of the damaged portion is a common factor
for assessing the vehicle in repair and insurance
industries. JARA aims to help member
recyclers improve the success rate ofnegotiations with customers as well as avoid
production loss (Daily Automotive News, Aug. 31 issue).

Mazda The area sheet's vertical and horizontal
area is 10 centometers each. The two photos
on the left row show the damage without thearea sheet. The two photos on the right row
have been taken with a magnet type area
sheet.

JARA NEWS No. 116 October 2017 Page 2

Exports of electrified used vehicles
top 100,000 units a year
Growing number might have negative
impact on carmakers and Japan's
recycling policy
Exports of used hybrid (HV), plug-in hybrid
vehicle (PHV), and electric vehicle (EV) are likely
to exceed 100,000 unit-a-year mark. According
to the trade statistics by the Ministry of Finance,
exported volume of used HVs, PHVs, and EVs
totaled more than 70,000 units in the first sevenmonths of this year. Exports of such vehicles areincreasing at around 10,000 units per month. Last
year, the recyclers’ acceptance of such vehicles
as ELVs totaled only 8,100 units. A large numberof such vehicles, which should be recycled in thedomestic market, are going abroad. The movemight affect recycling of batteries of such vehicles
by carmakers and Japan’s recycling system.
By destination, the largest exports of used HVs,
PHVs, and EVs were to Mongolia at 20,033 units
in January-July 2017, followed by 11,244 units toSri Lanka. Pakistan, Russia, Singapore, and New
Zealand also imported between 3,000 and 9,000
units of such vehicles for the same period.
Growing exports of such vehicles would
probably have a negative impact on carmakers.
Since 2007, Toyota Motor Corporation has been
engaged in resource recycling of used nickel-metal
hydride batteries taken from hybrid cars. Nissan
Motor Co. is involved in the renewable energy
project using used lithium-ion batteries. The

Welcome to JARA Member Recycler
Kawashima Co. going steady on astrong customer baseKawashima Co. started their vehicle
dismantling business in Itami city, Hyogo
Prefecture, way back in 1969. The business grew,
and the recycler moved to a spacious, new locationin Rokko Island’s warehouse district of Kobe city
in 2011. Spread on an are of 2,500 square meters, it
has been gaining customers’ trust since then.
In February this year, it opened in yet
another attractive location–the Kobe Fashion
Mart building. The office serves as a call centerand front-end base: women staff handle all theoperations at the office. The building also houses
IT companies, technology ventures, and fashion-Kawashima Co. located in close
proximity to Kobe city center

Over 10,000 used electrified cars
are exported from Japan a month

Russia and Asia are major
destinations of damaged vehicles

Damaged vehicles are likely todecline

Exports of damaged vehicles have developed
into a niche market. According to a major
exporter of damaged vehicles, approximately 1.17
million units of vehicles damaged by accidents
are generated in Japan per year. There are threealternatives for such vehicles: to be repaired andreused, to be dismantled for reuse or recycled.
However, many of such vehicles are exported
to overseas market. Considering the export
performance of specialist damaged car traders suchas TAU Corporation and Hanamaru Co., more than

50 percent of the damaged cars are exported fromJapan.
Popularity of used Japanese vehicles inoverseas markets helps the exporters of damaged
vehicles grow their business. In some countries,
damaged cars are imported from Japan and thenrestored before being used. Import tariffs ofdamaged vehicles are low, along with the low
repair cost overseas. Overseas regulations forrestoration are not so strict as in Japan.
However, the supply of damaged vehicles willtend to shrink due to the decline in occurrenceof traffic accidents in Japan. Traffic accidents
declined to below 500,000 cases in 2016,
according to the National Police Office. The
trend is expected to progress as advanced safety
equipment and systems are increasingly being
fitted in many vehicles.
In these circumstances, players in the damaged
vehicle market are working hard to make profits
as efficiently as possible. Some players began
to operate their used-car purchasing by sourcing
directly from car owners, while others launchedheavy advertising on major search engines on theInternet. The market is expected to further heat up(Daily Automotive News, Aug. 20 issue).

related enterprises, which help Kawashima Co. toimprove their corporate image and attract talented
human resources. The company’s location atjust a one-minute walk from the Island Centerstation of the Rokko Liner line offers “the fastest
access ever seen is never seen in the car recyclingindustry,” according to the company president,
Junichiro Kawashima. With the new location,
the recycler has successfully formed a firm tieup with major auto leasing companies, resulting
in large volumes. “Visitors to our site are also
increasing, so the company staff are working
enthusiastically,” he added. In fact, Hyogo
Economic Development Center awarded a prize toKawashima Co., for excellence in its highly rated
enterprise technology management force.
However, the business environment of
automotive recyclers is increasingly becoming
difficult these days. Decline in the generation of

end-of-life-vehicles (ELVs) is inevitable in thenear future as the auto industry would shift toelectrified vehicles such as electric vehicle andfuel cell vehicles. The auto recycling industry is
also exposed to the crisis of selection and closure.
“So, it is urgent for us to enhance our corporate
value and improve the skills of each employee,”said Kawashima. He plans to review every work
process and revamp it.
The company will celebrate its 50th
anniversary in 2019. Kawashima sees the time
until 2019 as a step toward preparation andretooling to march into the next one hundred years
with renewed vigor. “It is certain that recycling
is here to stay. But that doesn’t mean we should
merely survive. As artificial intelligence (AI) is
highly likely to impact our business, we must
continue to think of how customers will select us(Daily Automotive News, Sept. 14 issue).”companies might be affected with the increasing
export of used HVs, PHV, and EVs.
The Ministry of Environment is promoting
the reuse and recycling business of lithium-ion
batteries under its vision toward a low-carbon
society. The ministry has already introduced asubsidy program for this project. Increased exports
of used electrified vehicles could discourage suchprojects (Daily Automotive News, Sept. 4 issue).

Damaged vehicles lure overseas
buyers with low cost

Junichiro Kawashima,Kawashima Co.'s business performancepresident ofis steadily growing
Kawashima Co.

To survive, the recycler is actively
involved in improvement ofproductivity

JARA NEWS No. 116 October 2017 Page 3

Dismantling process flow chart
How the Car Dismantling machine works
1. Receiving andevaluating cars
Incoming
vehicles tested
on dynamometerto check engine
condition

3. Parts collection

4. Collecting
undercarriage
parts and engines

Efficiently collectreusable parts

The car is turned to safely
collect engine, exhaustsystem and suspension parts

Remove fluids such as fuel, various types ofoil and chlorofluorocarbon gas

13CuAlCopperAluminium

63.546

Tyres

Batteries

DoorsSeatsBonnets

ExhaustEngine Suspension

After treating, the scrap cars
are cut up and crushed orpressed into materials thatmeet industry needs

After pre-processing,
the car is sorted into raw
components such as
ferrous, non-ferrous andplastics
29

2. Collecting fuel, fluids andchlorofluorocarbon gas

6.Volume
reduction
processes

5. Car dismantlingprocess

Harnesses

MotorsRadiator

26.982Blocks of material can then be
distributed to smelting plants
for recycling

5. Processes
after removingparts
Once thoroughly
cleaned, the parts
become good quality
recycled parts

The Evolution of car dismantling industry by Kobelco
Four times* the vehicle dismantlingcapability compared with hand dismantling.

EngineCatalytic
AgentsBody SteelSeats

Improved recovery
rate of rare earth metals
Windows26

132978

46

FeAl

Cu

Pt

Pd

Iron

Aluminium

CopperPlatinum

Palladium55.933*In one day (Kobelco test figures)

15 vehicles >Wheels/Tyres

26.98263.546

195.08106.42

Separation of these valuable
materials is quicker and easierand can be performed with one
Kobelco machine.

Sus pension

One operative
working by hand.
Radiator

60 vehicles >One operativein a Kobelco
Car Dismantlingmachine.

BrakesFront & Rear
Bumperswww.kobelco-kenki.co.jp/

www.samjung-kenki.co.kr/

KOBELCO CONSTRUCTION MACHINERY AUSTRALIA PTY LTD
www.kobelco.com.au/

FAIR FRIEND ENTERPRISE CO.,LTD.
www.ffg-tw.com/

The machine’s special attachment
is designed to strip materials from
End-of-Life Vehicles (ELV)safely and thoroughly
Transmission

For Japan

For Korea

For Australia

For Taiwan

Doors

Harnesses

www.kobelco-jianji.com/

www.kobelco-usa.com/

www.kobelco-europe.com/

For China

For North America

For Europe