Contents / Editorial policy

Company profile

Top Message

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Global Resource Circulation BusinessSocietyBusiness foundation / Growth foundation

References

Involvement in the construction of a global recycling system

Global Resource Circulation Business

Amid mounting concerns about the depletion of mineral resources
resulting from rapid global economic growth, the global utilizationand circulation of various resources has become a critical issue in theglobal economy. Another key issue is the change in material flow ina global recycling system as a result of the revision to environmental
regulations in China.
Foreign trade department of ECONECOL Inc. is globally engaged in
the transactions of recycled raw materials and resources produced by
the company’s different business segments within the framework of
the Global Resource Circulation Business, contributing toestablishing a recycling system across the world. It is involved in theinternational transactions of palm kernel shells (PKS) and woodpellets, which are renewable energy sources, and a variety of otherresources along with transactions of metal scrap both inside andoutside of Japan, thereby creating the optimal level of resource
circulation across the world.
Ordinary profit (Units: 100 million yen)

Sales (Units: 100 million yen)
250

Loading ferrous scrap in a container

228

218

5.0

4.4

4.3
4.0

200

150

150

158

3.0

100

2.0

50

1.00

2016/62017/62018/6

2019/60.0

2.1

2016/62017/6

2.4

2018/6

2019/6

Inside a freighter

Handling volume (Units: 1,000 tons)
600

565

500

585
514

513

400
300
200
1000

2016/62017/62018/6

2019/6

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Contents / Editorial policy

Company profile

Top Message

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Global Resource Circulation BusinessSocietyBusiness foundation / Growth foundation

References

Three Business Components under Global Resource
Circulation Business

Biomass BusinessFerrous Scrap BusinessWe sell ferrous scrap that is collected at ports across Japan to steel
manufacturers (blast/electric furnaces) in Japan and abroad after
ensuring its quality based on the needs of customers. We transportmaterials not only using bulk carriers but also using containers,
focusing on sales targeting small-scale customers and customers inremote areas.

export to Japan as well.

Nonferrous Metal Scrap BusinessAt our resource recovery plant, after shredding and screening
nonferrous metals contained in the various scrap, we separate
nonferrous scrap that is of a quality that meets the needs of major
nonferrous metal smelters and secondary alloy manufacturers, both
inside and outside of Japan. While we primarily supply companies inSouth Korea, China, and Southeast Asia, we are currently pursuingthe development of new markets in Southwest Asia (India, Pakistan,etc.)

TopicsWe have been engaged in the trading of palm kernel shells (PKS),
centering on Southeast Asia since 2017. In July 2019, we started their
PKS has been receiving attention as a renewable energy source anddemand is expected to increase in Japan and beyond. In light of this,we established a stockyard in Indonesia in August 2019, following
the yard in Malaysia. We plan to increase the number of items that
we trade, not only PKS but also wood pellets, new fuels, and others,
as well as expand the area of container yards.

PKS

Wood pellets

Recycling of the retired dedicated aircrafts ofJapanese government
ECONECOL Inc. concluded the purchase and sale agreementof two retired dedicated aircrafts of Japanese government(B747-400) after winning a tender invited by the Air SelfDefense Force in May 2019. They were handed over atAnchorage Airport in Alaska, USA, at the end of June in thesame year.
The concerned aircraft did not have an airworthiness certificate(equivalent to an inspection certificate for vehicles). Hence,
they were procured from the Air Self-Defense Force as junk
aircraft, not used aircraft, in order to obtain maintenance parts.
They were subsequently sold to a buyer in the U.S.
They were the first dedicated Japanese government aircraft,
beloved by the people as the flagship of Japan over the years.
Cognizant of this, the company has examined the “best way tosell” the aircraft and, subsequently, reused them by giving thema new “life” instead of merely selling them as they were.
Even in the West, there are two different types of companies
involved in recycling of aircrafts: one that trades used aircraft
and another that recycles parts such as disused frames. Thus, weare convinced that ECONECOL Inc. will be one of the very
few companies that can undertake the comprehensiveassessment and purchase of used aircraft without theinvolvement of any other companies. Taking advantage of thisenvironment as thefoundation fordeveloping our services,
Econecol Inc. will be
proactively engaged inthe reuse business.

Sustainability Report 201925

Contents / Editorial policy

Company profile

Top Message

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Global Resource Circulation BusinessSocietyBusiness foundation / Growth foundation

References

International transactions of resources
Foreign trade department of ECONECOL Inc. has established trading bases worldwide, centering on Asia, with the aim of promoting the international transactions of resources.

UK➋Netherlands

Topics

TopicsImporting from Europe, targeting smelters(Netherlands)
Since the Chinese government tightened regulations concerning
waste imports, scrap that contains precious metals, such as
electronic substrates, have become oversupplied across theworld including Europe. Foreign trade department of
ECONECOL Inc. imports this scrap. After accurately
separating and condensing any precious metals such as gold,silver, and platinum, it sells them to major smelters in Japan.
The company takes the initiative to procure scrap that contains
precious metals from resource recycling companies worldwide,and supports smelting companies in Japan to secure preciousresources. It contributes to promoting global resource
circulation and reducing environmental load. In addition, it isexpected that the company will play a role in controlling theenvironmental pollution caused by wastes that are exported todeveloping countries and inappropriately treated.

Establishment of the PKS Indonesia Stockyard (Indonesia)

SouthKorea

Japan

China

PKS can have different properties, depending on the region where it窶冱 produced. It has become possible to meet the demands for PSK
produced in both Malaysia and Indonesia after the yard was established.
Furthermore, the increase in the number of bases has led to an increasein collection volume, contributing to a more stable supply of fuels.
Without delegating responsibility to the local subsidiaries, the company
has undertaken thorough quality control by directly managing the yard.
Making use of the material transportation know-how that the company
has cultivated, it can thoroughly respond tovarious and detailed requests.

TaiwanIndia
ThailandVietnam➊➌

Malaysia➎Singapore➍

Indonesia

Legend* Established in August 2019

Sites
Ferrous metals

Nonferrous metals

Indonesia stockyard➊ Econecol Ho Chi Minh Representative Office➋ Econecol Europe Representative Office (UK) (Established on October 1, 2019)
Plastics

Wastepaper

Biomass fuels➌ Mine Biomass Synergies MALAYSIA (Malaysia)➍ Mine Biomass Synergies INDONESIA (Indonesia)➎ Mine Biomass Synergies SINGAPORE (Singapore)

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