JAPAN AUTOMOBILE RECYCLE NETWORK NEWSVol. 76

JUNE 2014

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

leasing firms, and others. The remarkably
and six lifts for efficient recycling. In
high rate of sourcing from car dealersconsideration of the environment, draining
underlines Daikou’s procurement stability.
and other pre-compacting steps are conductedToday’s success is an outcome of thein a separate building to keep waste oils andcompany’s strategy. Ten years ago, Daikou
fluids from entering the main building. Such
started to build firm relations with car dealers.
advanced Japanese dismantling facilities will
It actively supported events hosted by local
be replicated at Malaysian plant.
car dealers, and cooperated with used car fairs
Furthermore, the company plans to buildby each the Akita Prefectural Car Sales
such plants in Myanmar, Indonesia, andAssociation and Japan Light Vehicle andThailand with parts and materials marketed
Motorcycle Association, by setting up a booth
locally, using setups similar to the one
displaying its agricultural products. Through
Daikou uses in Japan.
such steady efforts, Daikou established strong
ties with car dealers.
Used tires help greenhouse cultivation of
As a result, the company’s acquisition ofmushrooms and tomatoes
ELVs has been increasing year by year forthe past six years. At the same time, its
The other pillar of Daikou’s nextsales increased for five years in a row.
generation business plan is a greenhouse
Publishedby SPNbyCo.,utilizingLtd.
Daikou President Goro Domon,
vegetable
farmingthat uses theA k i t a P r e f e c t u r e - b a sJAPANe d m a jAUTOMOBILE
orRECYCLENETWORK
NEWSthermalTokyorecycling
Head Office: ofShinwa
1-2-2-7F
however, takesa stern viewof the future.
usedBldg.
tires.
In Augustautomobile recycler Daikou Shoji Co. is
Nihonbashi, Chuo-ku, Tokyo, JAPAN 103-0027“Forthetimebeing,strong
demandfor2012,
Daikouestablished
Deco
FarmCo.,http://www.spn-partner.com
02 MARCH 2008
Phone: +81 3 3548 3010 / Fax: +81 3 3231 4690
enjoying stable acquisition of Vol.
end-of-lifeused parts will allow us to maintain thewhich built a large greenhouse facility onv eh icles , th an k s to its clo s ely bu ilt
current situation. But, in the long term,
the 2,000-square-meter plot of land near
relationships with car dealers in Akita. Its
business is likely to slow down.” Domon
Daiko’s Honsha Plant. Today, the greenhousesales of used parts are ranked at a classattributed his projection to the declining
produces approximately 40 tons of mushrooms
topping level even for the entire Tohoku
number of vehicles in use and a change inand 10 tons of tomatoes a year with daily
region. As engines of next-generation
vehicle parts due to the diffusion of hybrid
shipments to local supermarkets, an upscalebusiness, the company has set its sights on
and electric vehicles. Demand for highersuper-market in Sendai City, and a fruit-andinvesting in business opportunities overseas
prices used parts such as engines andvegetable market in Shinjuku, Tokyo.
and expanding in the field of agriculture.
transmissions is expected to go down withDomon launched the business to makes
As such, the company, which has based its
greater use of hybrids, and, of even more
use of the large volume of used tires
current strength on used car parts for theconcern, electric cars have no engines. “Usedproduced by vehicle recycling and to
Japanese market, is planning to undergo aparts demand may be limited to only exterior
contribute to local employment by
long-term transformation.
and suspension parts,” Domon worries.
promoting agriculture.
Daikou Shoji’s sales come 50 percent fromTo respond to the cloudy future, Daikou
Domon plans to expand the greenhouseused parts for the domestic market, 30 percent
established a two-pillar, next-generation
facilities and has already acquired an additionalfrom exports, and 20 percent from trade inbusiness plan. One pillar of the plan is to23,000-square-meter site. In addition tomaterials. For the domestic parts business, theexpand Daikou’s automobile recycling
increasing vegetable production, processedcompany has always ranked as one of thebusiness overseas. The first step will be
products such as dried fruit and jams will be
leaders in the JARA group, earning a topconstructing a dismantling plant inadded to the lineup for export to Malaysia,
place finish for sales this past April.
Malaysia. A plot of land has already been
Russia, and Mongolia. His company has
Daikou’s acquisition of ELVs, which
secured in Kuala Lumpur, and construction,
earnedpraise,includingPublishedby SPN
Co., Ltd. in the form of
from the base of the used parts
business,JAPAN
AUTOMOBILENETWORKTokyo Head industry”
Office: Shinwa
Bldg. 1-2-2-7F
jointly withRECYCLE
local capital,
is expectedNEWS
to“sixth-sectorcertifiedby Japan’s
totals 1,300 units monthly on average. Of
Nihonbashi,Tokyo, JAPAN
103-0027andcommence withinhttp://www.spn-partner.com
this year. The company’s
Ministryof Chuo-ku,Agriculture,Forestry
the total, half of the sourced vehicles
come MARCH 2008
Vol. 02
Phone: +81 3 3548 3010 / Fax: +81 3 3231 4690
Akita Honsha Plant will serve as a model
Fisheries for its approach towardfrom car dealers, and half from repair
for the Malaysian plant. The Honsha Plant
agricultural production, processing andshops, body and paint shops (or light repair
uses two 2.8-ton overhead travelling cranessales. (Daily Automotive News, May 29 issue)
shops), used car dealers, auto insurers,

Overseas businessand agriculture:Engines of nextgeneration business ofDaikou ShojiJAPAN AUTOMOBILE RECYCLE NETWORK NEWS No.76 JUNE 2014 < 2 >NPO JARA supports businessseminar in Yamagata

BEST Recyclers Alliancehosts marketing workshop
for executives
JARA Corp. President Sosho Kitajima
encourages participants at the workshop,
pictured.
BEST Recyclers Alliance, whichco nsists of four sales groups ofrecycled auto parts, held theinaugural session of the “MarketingWorkshop” on May 17 at JARA
Corp.’s Tokyo head office. A totalof 24 executives from BESTmember recyclers took part.

The workshop, for which a totalof five sessions is planned for thisfiscal year, aims to develop
managers for strengthening themanagement culture andorganizational power of eachmember firm.
At the opening, lecturer JARA
Corp. President Sosho Kitajima
said, “Although such a workshop
was held for our former SPN
members, this is the first marketing
workshop for BEST members. I
really want you to learn marketingin a comprehensive manner to help
increase your companies’ sales.”Big Wave President Atsushi Hattori
followed and encouraged
participants by saying, “I want you
to consider what you learn today
from a variety of angles and make it
useful in your daily work.”
For the first session, under thetheme: “Why you need to become
No.1 in your region?”, JARA Corp.
President Sosho Kitajima, as thelecturer, encouraged participants toreview the exact status of each

On May 15, The Republic of Fiji Business Seminar washeld at Hotel Metropolitan Yamagata in Yamagata,
Yamagata Prefecture, hosted by the Embassy of Republic ofFiji. The Japan Automotive Recyclers Association supported
the seminar.
About 60 people attended the seminar, including
representatives from car sales companies and automobile
recyclers in Yamagata Prefecture.
At the event, Fiji Ambassador, Ishikeli U. Mataitoga andJARA Vice Chairman Takayuki Moriya jointly welcomed
the attendees and then appealed for economic partnership
between Fiji and Japan. They also introduced the charms of
tourism in Fiji.
Ambassador Mataitoga said, “We want to make thisbusiness seminar a chance of development of trade with
Yamagata-based enterprises. Please consider Fiji as a key site
for your investment.” After the seminar, a party was held, atwhich attendees had pleasant talks with each other. (Daily
Automotive News, May 23 issue)

firm’s positions, as well as to learn
about the latest trends and strategy
of repair and body & paintbusinesses.
Kitajima explained how toincrease sales of recycled parts indetail, referring to the necessity ofaccurate analysis by each companyof its weak points and strengths
using key performance indicators, aswell as to develop strategies. Healso explained, using case studies,
the latest trends of repair and body
& paint businesses, and forecasts foreach group’s moves. And hestressed what is needed to become aregional leading company and what
to do to out-compete rivals. (Daily
Automotive News, June issue)

Standard specs
for door packaging
undergoexamination
The third meeting of theAutomobile Recycled Parts
Logistics Study Association washeld on March 20 at JARA Corp.’shead office in Tokyo. The
association consists of four major
recycled parts sales groups: NGP,Big Wave, JARA Corp., ARN, andsystem developer, Broadleaf Co.
and a major transport firm.
A video of the conventional
packaging of the left-side front doorof a 177 Series Toyota Crown
jointly taken at the first and second
meetings and a video showing
application of NGP’s returnable
packaging materials were examined.
While comparing the two
approaches, members of the March
20 meeting discussed standard
specifications in terms of timerequired, safety, and cost
performance. They concluded which
practices were optimal,
photographed them, and agreed toadopt them as regular processes in
the case of using cardboard for doorpackaging.
Attendees also decided that, at thenext meeting, they will examine
viedos taken in advance by eachcompany of the packaging of 30
Series and 40 Series Toyota Estima
front bumpers.
Meanwhile, attendees expressed
concerns regarding increasingtransport costs, as well as regardinga growing cost-saving trend in therecycled parts industry. They
confirmed that they, starting withthe major transport firm that joined
the study group, will move forward
in building a lower-cost logistics
system for recycled auto parts.
(Body Shop Report, May issue)

JAPAN AUTOMOBILE RECYCLE NETWORK NEWS No.76 JUNE 2014 < 3 >JAPAN AUTOMOBILE RECYCLE NETWORK NEWS No.76 JUNE 2014 < 4 >