JAPAN AUTOMOBILE RECYCLE NETWORK NEWSVol. 87

MAY 2015

http://www.jara.co.jp

Royal Auto Parts
accelerates vehicle
collection to survive
The generation of end-of-life-vehicles
has been declining as new vehicle sales
weaken. Overseas demand for ELVs is
also strong, especially in the Middle Eastand Southeast Asia, and many low-priced
used vehicles are going to auto auctions assources for used parts. Such factors mean
automobile dismantling businesses
continue to face tough conditions. Drivenby fears that the number of ELVs entering
dismantlers’ sites will continue to decline,
Mie Prefecture-based Royal Auto Parts
Co., has begun to diversify how it
procures ELVs. It seems that entering anew business is becoming necessary tosurvive these days.

Seeking sources of ELVs
Royal Auto Parts was established in1972 in Nada Ward of Kobe City as
Sasaki Automobile Dismantler. It was
spun off in 1991 and then incorporated.
Currently the company has a factory inPublished 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

CO2 Reduction Effect(based on Super-Line System)

The use of Reuse Parts saved

3,190 tons of CO2 emissionsin March 2015
Miki City and two sales branches in
Suminoe Ward, Osaka and Sumoto City,Hyogo Prefecture.
Large-scale operations highlight thecompany. The factory has a 1,700 squaremeter floor area on a 26,000 square-metersite. Its monthly dismantling capacity is
2,000 vehicles, making it one of thelargest dismantlers in Hyogo. President
Kenkichi Sasaki said, “Our industry isfacing tough conditions. This is why weneed to take on new businesses in addition
to recycled-parts sales and overseas
operations.”
In order to diversify the procurement
route of ELVs, the company will set up anew site around this summer. It aims to go
beyond just ELVs and gather a wider
variety of vehicles in terms of both age
and models. “This is a challenge that adismantler has to attempt. We want tocollect all kinds of vehicles. We areplanning to be profitable, even in the firstyear,” Sasaki said in a show ofcommitment.

The reference figure represents thedifference 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.

behind 60 employees. The president has asense of crisis and believes that sticking to
the status quo is no guarantee for surviving
the hard times in the auto recycling market.
These are tough times. That’s why weneed to find ways to survive.” Although
his sense of danger started when he wasstill vice president, he said, “My sense ofcrisis has become stronger. My role is totransfer such a sense of crisis to the nextgeneration.”

Diversifying risk exposure

One key is directly purchasing vehicles
from general consumers. Dismantlers areoften thanked by vehicle owners when theybuy vehicles that can no longer operate due
Published byor
SPNCo., Ltd.
to accidents
mechanicalbreakdowns.
JAPAN AUTOMOBILENETWORK
Head Office: Shinwa Bldg. 1-2-2-7F
YoungRECYCLE
leader drives
changeNEWSThisTokyo
hasspurredRoyalAutoParts to useNihonbashi, Chuo-ku, Tokyo, JAPAN 103-0027
Internetactivelyvehicle
http://www.spn-partner.comthe Phone:Vol. 02 MARCH 2008
+81 3to3548
3010 / Fax:call+81 3on3231
4690
Sasaki became president in July 2014.
–Continued on Page 2
The 39-year-old leader is the driving force

JAPAN AUTOMOBILE RECYCLE NETWORK NEWS No.87 MAY 2015 < 2 >10th year of introduction of automobile recycling law
Current status and issues
for recycling

Tidal wave ofglobalization(Part 3 of a series reporting on theproceedings at “The 1st Auto Recycling
Summit” held in Tokyo on Jan. 29 by theNikkan Jidosha Shimbun Co.)
Although many years have passed since
globalization first came to the fore, with atidal wave looming over the automobile
recycling businesses, the summit also took
up the theme of cross-border activities.
Japanese recyclers groups and individualcompanies have already started doing
business in overseas markets. Such moves
are prominent in emerging economies,
which are considered to hold great
potential.
Non-profit organization JARA is eyeing
worldwide development through its
alliances with recyclers groups in North
America and Southeast Asia. Sosho
Kitajima of JARA, which often participatesin international conferences, said, “As one
might expect, much information from Japanis dispersed (at such conferences). Fromnow, I think what is important is providing
information on receiving trainees and on
know-how in the form of the distribution ofeducational and other materials.”
In reality, the establishment of
automobile recycling systems in emerging
economies such as in South America, Asia,and Africa, is still forthcoming. From now,
along with the development ofmotorization, problems with ELVs arelikely to arise in such economies. By

Dismantler acceleratingvehicle collection–Continued from Page 1

owners to sell the company no-longerwanted vehicles. The company is now
ambitiously aiming at having vehicles
purchased directly from consumers
making up to 40 percent of its total
vehicles intake in the future. “Concerns

fulfilling the role of recycling leader, Japan
will have an opportunity to meet demand. “I
am always thinking of how we cancontribute to world society, and how we canachieve something through globalization,”
said Norihiko Kondo, Chairman of RUM
Alliance. Kondo is also president of KaihoSangyo Co., which is developing businessin Brazil, Nigeria, the United ArabEmirates, among other countries. Kaiho
Sangyo is a company that takes boldoffensives overseas, when it senses future
opportunity.
On the other hand, Takanori Okada,
ARN Chairman, taking into consideration
relationships with automobile
manufacturers, pointed out, “I think weshould probably protect parts through theregistration of intellectual property.” Theoverseas business as a whole is still a workin progress and has inherent risks, which areamong the considerations that need to bemade as future policy unfolds. .
From a global perspective, automobile
recycling has a great potential for growth.
The Japanese market also has room for
expansion in consideration of its currentsize. To strengthen the foundation of theindustry, the development of humanresources will be key. Nishio Kawamura,
Chairman of the Japan ELV Recycler’sAssociation, suggested, “We want to enrich
our certified recycling technician system.”
Other groups also host their own seminars
and technical contests. Such exchanges
toward industry-wide development should
be continued.
At the summit, calls to carmakers andgovernment authorities were also made.
“We want more information exchange anddisclosure with carmakers,” said Takehiko
Ohashi, Chairman of Total Car Recycle
Group. “We want the government toofficially recognize our Green Point system,
in which reduction of CO 2 emissions
through the use of recycled parts can beconverted into numerical values,” said
Yoshio Amaoka, Chairman of Sea Lions

may be few while demand lasts toward the2020 Tokyo Olympic Games. But the end
will come.” As the Japanese consumption
tax is scheduled to be hiked to 10 percent
in October 2017, economic conditions areuncertain. Steel scrap prices might also
fluctuate. Royal Auto Parts’diversification is its way of diversifying
risk exposure. (Daily Automotive News,Apr. 23 issue)

Club. As the automobile recycling law hasentered the 10th year since its introduction,
discussions started on review of the law.
The circumstances of the recycling industry
have started to sharply change.
“Deepen relationships with relatedindustries” was adopted as the summit
declaration. Strengthening relationships
between carmakers on the manufacturingside and the auto service industry on theuser side is must task. A participant pointedout “Galapagosization” of the Japaneseindustry, ringing an alarm over the existing
ways of the industry thus far. Masayuki
Harigaya, president of TECLS Network,stressed, “Nobody can tell the market size
and actual sales volume of our industry as awhole. We need to make much more efforts
to be able to announce official market figure
to the public, thereby gaining recognition of
our industry.” The need is growing for theindustry to demonstrate unity.
In recent years, ELV acquisition has beena headache for recyclers. As mentioned
earlier in this series of reports on thesummit, Japan ELV Recyclers Association
Chairman Nishio Kawamura pointed out:
“Many old vehicles 14 years or older are
flowing out of Japan to overseas. I think thebrakes need to be applied to a certain extent
to sustain our industry”. A drastic solution
has yet to be found. On the other hand,
many recyclers suggest that each company
should accept the situation and move
forward by undertaking self-initiatives.
“Guidelines for handling ELVs were
established under the automobile recycling
law, but they are no more than empty words
today. I am sure that self-help is the only
way to overcome this situation”, said TCRGroup Chairman Takehiko Ohashi. “Buyexpensive ELVs at auto auctions and sell
recycled parts at higher prices. I think weneed that kind of samurai-like mental
readiness to do so”, said Japan Parts
Association Chairman Ichiji Hayakawa. It is
important for each group to tackle theproblem squarely, as it is not avoidable.
(Daily Automotive News, Feb. 7 issue)

JAPAN AUTOMOBILE RECYCLE NETWORK NEWS No.87 MAY 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.87 MAY 2015 < 4 >Go Go Japan Industry (M) Sdn Bhd
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