JAPAN AUTOMOBILE RECYCLE NETWORK NEWSVol. 97

MARCH 2016

http://www.jara.co.jp

The Tomorrow ofAutomotive Recycling
Summary of the second Automotive
Recycling Summit

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

Participants in the 2nd Automotive Recycling Summit
Japan ELV Recycler's Association
Japan Truck Refine Parts Association
NGP Group

whole industry should work through issues.
East Japan Automobile Dismantling Union
Meanwhile, MOE’s Yamaguchi said, “There is
RUM Alliancea variety of players emerging through MOE’s
JARA Corporation
projects in the areas of issues related to global
Big Wave Inc.
Opportunity lays in how towarming and natural circulation. The
automotive recycling industry should have aSSG
collect valued ELVs
wider viewpoint,” suggesting that crossJapan Parts Association
sectional communications will be needed for theDaily Automotive News hosted the “SecondBuyukai Corporationindustry.
Automotive Recycling Summit” on Feb. 3 inAt the summit, three major agenda were set:
Tokyo. Under the theme of “Recyclingmight rely on how to collect as many valued“Today’s business environment and measures”,business for connecting dreams to the next
vehicles as possible, and not simply seek large“Securing human resources and training” andgeneration”, directions and issues for thevolumes of ELVs. It is increasingly becoming“International development of the recycling
industry were discussed by a total of 10
important for the industry to make sure of thebusiness.” With these, discussions took place
recycling-related groups. At the end, aright route of ELV collection.
centering on the direction for the future.
“Summit Declaration” was adopted by theParticipants mostly referred to the chronicparticipants, who agreed to steadily respond toOverseas development
status of the declining number of ELVs. “Thethe changing environment, in addition todecline in ELVs is our biggest problem,” said
conflicts with domestic market
contributing to a recycling-oriented society.
Masayuki Kiuchi of the Japan ELV Recycler’s
Amid the worsening business environment,
Association. “Lack of core (vehicles) fuels aSince last year, the falling price of scrap steel
each group is forced to cope with difficult
battle of vehicle acquisition”, said Michito Ota
has been a serious concern of the automotive
issues, such as globalization and personnelof NGP Group. Recently, ELV generation has
recycling industry. Recyclers attending on thedevelopment.
been running at the lowest level ever since suchsummit expressed this concern one after
Key note speeches were given by Akira
statistics were first compiled.
another. For a recycler whose earnings depend
Hosaka, director of the Office for Automobile
The causes of the decline in ELVs aremostly on scrap steel shipments, “the situation
Recycling Policy, Automobile Division,stagnant new car sales and increasing used
is becoming difficult, if you solely depend on
Manufacturing Industries Bureau of Ministryvehicle exports. For recyclers, ELVs are “thethe resource business,” said Sakae Hasegawa,of Economy, Trade and Industry, who spoke
rice of the business”, from which recycled parts
chairman of the East Japan Automobile
about “Industry trends and measures forand scrap steel are produced. Their
Dismantling Union. In addition to theexpanding recycled parts market”, and Yuji
disappearance would have dire consequences forworsening business environment, Japan’s
Yamaguchi, deputy director of the Office forthe industry.
declining population is causing the domestic
Recycling Promotion, Waste Management andBuyukai Corporation Chairman Shojiro
market to shrink. The industry is searching for
Recycling Department, Ministry of theHatomura admitted, “Our business starts withclues on how to overcome the situation. In fact,Environment, who spoke about the “recyclingvehicle acquisition. You can’t do businesssome recyclers are looking for solutions
Published by SPN Co., Ltd.
industry in light of the environmental policy”.
without vehicles.” On the other hand, JARA
overseas.
JAPANAUTOMOBILE
RECYCLENETWORK
NEWSTokyo Head Office: Shinwa Bldg. 1-2-2-7F
METI’s Hosaka referred to the worsening
Corporation President Sosho Kitajima said,
Scrap
steel prices
fallenapproximately
Nihonbashi,
Chuo-ku,haveTokyo,
JAPAN
103-0027
business environment in Japan,Vol.
and 02
urged MARCH
http://www.spn-partner.com“Our sales
so we feel the recycled
Phone: +81
3 3548 3010
/ Fax:+81 3 3231
4690 to2008are rising,
40 percent,comparedwithJanuaryof 2015,
people to “throw away your differences for theparts market is expanding.”–Continued on Page 2
sake of the common good”, suggesting that theIn terms of recycled parts sales, the business

JAPAN AUTOMOBILE RECYCLE NETWORK NEWS No.97 MARCH 2016 < 2 >The Tomorrow of Automotive Recycling
International development is becoming animportant theme for the recyclinh industry–Continued from Page 1

around 15,000 yen a ton. Due to the sluggish
Chinese economy, “It is hard to see a price hikein scrap steels”, said NGP Group’s Ota,suggesting a common view of the industry.
On the other hand, Atsushi Hattori, Presidentof Big Wave Inc., expressed his thoughts,saying, “The price of scrap steel is necessarily
affected by the market price. It changes
according to time and circumstances. We should
keep that in mind.” Hokkaido-based SSG also
takes an original approach toward addressing
the market prices. “We will overcome thesituation by launching a regional campaign for
ELV collection and parts sales”, said SSG’s
Kouji Kudo.
However, it is a fact that recyclers are facing
the new challenge of falling scrap steep price, inaddition to the existing issues of the decline in
ELVs and transport cost hikes. Therefore, themajority of them expressed difficulty inforeseeing the future of their business.
In recent years, overseas businessdevelopment has been increasingly attracting
attentions in the industry. Major recyclers andrecycled parts sales groups began to put theireyes on overseas markets, where, unlike thedomestic market, demand growth is expected.
Some have already established joint venturesand factories abroad to cultivate a new market.
JARA Corporation’s Kitajima said,“Aftermarket parts go abroad because Japanese
vehicles are international products”, underlining
his perspective on recycled parts in the entire
stream of the auto market. The Japan Parts
Association’s Hiroyasu Furuyama said, “Evenabroad, demands are for the same quality ofsuch parts as those sold domestically.” The highquality of Japanese recycled parts being wellrecognized overseas might assist the movetoward overseas business.
Meanwhile the Japanese government isexploring a way to export Japan’s automotive
recycling system as a form of environmental
contribution to the world. Masayuki Kiuchi ofthe Japan ELV Recycler’s Association
supported the vision, by saying, “It is needed tomake an effort to export the infrastructure
system.” Others agreed. However, Masaki
Miyamoto of the Japan Truck Refine Parts
Association warned, “The automobile recycling

law should help domestic circulation inside
Japan, such as in the reuse of parts.” Hiscomment underlined fears that increasing
exports of parts would collapse the fundamental
system of the reuse of automotive resources inJapan.
Yoichiro Akasu of RUM Alliance, said, “We
need to have a standing point between theglobal view and the domestic production fordomestic use of recycled parts.” It is a fact thatrecyclers face the difficult choice of whether or
not to chase both the hare of business expansion
overseas and the hare of domestic circulation, at
the risk of not being able to catch either. Withthe two governmental authorities of METI andMOE, which have jurisdiction over the
automobile recycling law, the whole industry
should share the future directions together.

Image improvement for
securing human resources
Declining population and aging society arecreeping over Japan. Personnel shortages will beexpected in all industries. The automotive
recycling industry is not exception. Recyclers
attending on the summit expressed how they
were struggling and experiencing trial-and-error
attempts at “securing human resources.” Howshould they show the way for the industry andhow can they replace the old guard with thenew? The industry is entering a period oftransition.
In terms of personnel training and education,
each recycling group has various courses,
resulting in the most-ample menu of suchamong other aftermarket industries. SSG
created “a unique workshop called ‘Joshikai’,exclusively for women to learn how to handlecomplaints”, according to SSG’s Kudo.
However, the East Japan Automobile
Dismantling Union’s Hasegawa pointed out thatthe important thing is “how young trainees use
what they learn when they return to eachcompany.” Such training courses are provided
to only member companies of each group. As awhole, the industry has yet to find an effective
way to promote recruitment.
As Big Wave’s Hattori says, the industry has“the image of being hard, dirty and dark, amongpeople.” Not a few participants in the summit
recognize that the industry’s image is not good.
So how to appeal to others is an urgent issue forthe industry.
Japan Truck Refine Parts Association’s
Miyamoto, whose company hires newgraduates, said, “We need to show students that
our workplace is rewarding. Company owners
should meet students with the specific intention
that we have industrial value.” Lack ofpromotional activities in recruitment is not aunique problem in the recycling industry.
Against the backdrop of the growing image ofrecycling business being “black (dark)companies”, it is necessary to review theapproach to recruitment.

CO2 Reduction Effect(based on Super-Line System)

The use of Reuse Parts saved

3,347 tons of CO2 emissions
in January 2016
The reference figure represents the differenceof carbon dioxide (CO2) emissions at thevehicle repair using genuine (new) parts andrecycled 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.

Step-by-step activities for “the improvementof the image and awareness might be the seedfor future development”, suggested the JapanELV Recycler’s Association’s Kiuchi.
On the other hand, NGP’ Group’s Ota, chiefof NGP’s youth group, called for accepting
foreign personnel, saying, “It is important toinvite foreign trainees, rather than focusing on
domestic recruitment only.” Since the recycling
business is not covered by the government’s
technical training system for foreigners, theacceptance of foreign personnel under thesystem is not allowed in the industry. In order towiden human resources, the recycling industry
should “open the door to foreign trainees”, said
Big Wave’s Hattori as already seen in the auto
repair industry.
Staffing is highly likely to become a serious
problem, not only in the recycling businesses,
but also in the Japanese economy.
The industry is forced to take on challenges
that are not seen before, such ascountermeasures for next-generation vehicles,
new materials and internationalization. JARA
Corporation’s Kitajima said, “We completed thegeneration change among executives.” Greater
mobility in staffing will be needed in theindustry. In order to connect the business to thefollowing generation, the first step is to sharethe sense of crisis and then find points forcollaboration. (Daily Automotive News, Feb. 10,12, and 16 issues)

Discussions at the summit centered on how
to staff the next generation.

JAPAN AUTOMOBILE RECYCLE NETWORK NEWS No.97 MARCH 2016 < 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。

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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。

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새로운 발상은KOBELCO에서
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