Contents / Editorial policy

Company profile

Top Message

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Global Resource Circulation BusinessSocietyBusiness foundation / Growth foundation

References

Resource Circulation BusinessResource Circulation Business that enhances the sustainability of a society

Population explosions and the development of developing countries have increased resource consumption
across the world. Continuous resource consumption will cause depletion and generate enormous levels ofwaste, creating environmental problems such as waste plastics flowing into the sea, which is becoming
increasingly serious. It has been arousing concerns about the sustainability of a society.
The ENVIPRO Group promotes the resource circulation business as our key business to achieve our
mission statement that is to “contribute to create a sustainable society.” We offer new value to society,engaging in the effective utilization of limited resources, waste reduction, and the production of recycled
raw materials from waste, by promoting the reuse, recycling, and remanufacturing of materials that were
disposed of as waste.

12.0

300

128

127

9.9

10.0

120

99

100

2.0
2016/62017/62018/60.0

2019/6262

262

2018/6

2019/6

227

200

4.0

80
0

5.5

6.0

86

249

250

8.3

8.0

150

0.3
2016/62017/62018/60

2019/6

2016/62017/6

Recycling
Composite materials of metals, plastics, and glass are shredded, and separated by magnetic/air
separators before undergoing the next separating stage.
Magnetic separation
Removing ferrous scrap from theshredded mixture, using separatorswith a powerful magnetic force.
Powerful magnetic force

Reuse

Air

Nonferrous metals

Removing refuse
paper, sponges, andlight dust from theshredded mixture,using air separators.

Dry gravity separation

RPF(Refuse Paper and Plastic Fuel) plant

Separating, using vibrations andupward-moving air currents withthe application of frictional forces.

Producing solid fuels including RPF(refuse paper and plastic fuel) from waste.

Light particles
LiquidRPF

Heavy particles

Wet gravity separation

Eddy current separation
Separating non-magnetic metals that are falling due to gravity, using magnetic repulsion.

Remanufacturing
Plastics(heavyweight)

ExtruderS N S

Used-cars-related
Business

S N S

Depending on the objects to be removed
from the mixture, adjusting the specificgravity of a liquid that is mixed with waterand a specific metal powder, in order toseparate combinations of items that float
and those that settle.

Incineration

Plastics (lightweight)

Air

N

Global Resource
Circulation Business

Agitation propellers

Air separation
FerrousmetalsMaterials for
cement production

Refuse paper, sponges, and light dust

N SN

Shredding
Shredding materials into small
pieces with a shredder forrecycling.

・ Automobiles ・ Microwave oven
・ Photocopiers ・ Vacuum cleaners
・ Smartphones, etc.
・ Monitors

Aircraft

Handling volume (Units: 1,000 tons)

140

S

Sorting

Ordinary profit (Units: 100 million yen)

NS N

Reuse, recycling, andremanufacturing process

Sales (Units: 100 million yen)

Plastic pellets
Gold and Silver Copper
Sediment Sludge

Used car

Aluminum

Plastics for fuelExtruded materials

Manufacturers of raw/basic materials

Sustainability Report 201914

Contents / Editorial policy

Company profile

Top Message

Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Global Resource Circulation BusinessSocietyBusiness foundation / Growth foundation

References

TopicsThree key businesses
The ENVIPRO Group operates the resource circulation business,
focusing on the following three businesses as its key components.

1. Recycling Business (resource recovery)
Our group has been engaged for more than half a century in a
recycling business in which metal scrap, waste and others arecrushed, and physically sorted into ferrous and nonferrous metals,
gold, silver, and copper sediment sludge(mixed metals), plastics, etc.
based on differences in their properties. With the use of advanced
sorting technologies based on the above-mentioned technologies aswell as our accumulated know-how, it is possible to condense andcollect ultrafine precious metal particles from both waste incineration
ash and ASR* that seemingly contain no precious metals.
Furthermore, with regard to waste plastics, we have achieved arecycling rate of approximately 97.6%, minimizing simple
incineration and landfilling by producing RPF for thermal recycling.

To become a manufacturer of recycled raw materials for products, wemust maintain product quality, fabricate prototypes, ensure a stableproduct supply, guarantee delivery schedules, and others. We need tohave totally different viewpoints in order to develop technologies andbusiness know-how from the recycling businesses. We are now taking
up these new challenges.

3. Reuse Business (reuse)
We are engaged in a reuse business that distributes used products andmaintenance parts without modifying their functionality or value. The
volume of metal scrap and waste will inevitably decrease in Japan
where more people share goods and products, and where thepopulation is declining. Therefore, for our group which is engaged in
the resource circulation business based on these materials, ourinvolvement in the reuse business is important from the viewpoint of
securing materials for our key businesses.

CO2 reduction throughout the product lifecycle
To realize a sustainable society requires the efficient utilizationof not only material resources, such as mineral resources, butalso energy. Most materials, including steel and plastic
products, which are currently distributed throughout society, aremade from natural resources such as iron ore, petroleum, etc.
The manufacturing processes for these materials consume vast
amounts of energy.
Our group promotes the dissemination of materials produced
from waste through the resource circulation business which isengaged in the sorting/collection of iron from metal scrap andthe development/manufacturing of recycled pellets from waste
plastics. In turn, we contribute to reducing the amount of energy
use and CO2 emissions throughout the product lifecycle
including the procurement of raw materials.
Resource circulation of product materials contributes to the
reduction of CO2 emissions throughout the product lifecycle*ASR: Abbreviation of Automobile Shredder Residue. The residue which remains after end-of-use
vehicles are dismantled and shredded to remove chlorofluorocarbons and their parts, such as air bags,

Reduction of CO2 emissions by resource circulation

doors, and engines, and to collect useful metals.

2. Remanufacturing Business (re-production)
Our group promotes and actively invests in the “Remanufacturing
Business” which aims to manufacture recycled raw materials out of
waste and scrap by taking recycling technologies to the next level.
We are engaged in manufacturing recycled resin pellets from waste
plastics, rubber chips from waste tire rubber, and recycled cobalt andnickel materials from lithium-ion batteries.

Aluminum

StainlessMaterial extraction
production, andTransportation

RPF

Reuse of products
Resource recovery

Procurement

Production

Transportation

Product
Provision of services

Disposal
Recycling

Gold and Silver Sediment Sludge

Sustainability Report 201915

Contents / Editorial policy

Company profile

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Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Global Resource Circulation BusinessSocietyBusiness foundation / Growth foundation

References

Resource Circulation BusinessCollection of precious metals from waste incineration ash (riddling ash)

Undertakings to collect metals from so-called “urban mines,” suchas scrap cars and disposed home appliances, have been gradually
recognized in society since the Act on Promotion of Recycling of
Small Waste Electrical and Electronic Equipment was put into
effect. Nevertheless, a significant proportion of waste incineration
ash that contains a large quantity of metals is still landfilled without
being recycled, although some is recycled as materials for cement
production. Based on our research and accomplishments over theyears, we have successfully developed the technology to collectprecious metals from waste incineration ash discharged by generalwaste disposal facilities, for which we obtained a patent in May
2019. Through the application of this technology, we have not only
improved the recycling rate of waste/precious metals but also
contributed to reducing the landfilling of waste incineration ash.

Volume of waste incineration ash collected

Approx.

2,008 tons

Metal collection process from waste incineration ash (riddling ash)
General Waste Disposal Facility(FY2018)

Volume of precious metals collected from waste incineration ash

Au (gold)
Approx.

Input hopper

Ag (silver)

22.7kg Approx. 162.5kg● Purchase history from municipalities: collection of

precious metals from riddling ash

Riddling ash generated during waste incineration generally has a highmetal content, which can be collected as valuables without modifying
their properties. ECONECOL Inc. concluded agreements with threemunicipalities* for the purchase of riddling ash as of June 2019. By
expanding this undertaking to other municipalities across the country, we
will contribute to the effective use of resources and the reduction oflandfilling.
* Three municipalities: Inzai District Environmental Service Association (Chiba), Tottori Chubu Furusato

Riddling ash*Incinerator bottom ash*Riddling ash: waste and theash that have fallen through thegrate vents in a stoker-type
waste incinerator.

Wide-area Federation (Tottori), and Tama Newtown Environment Association (Tokyo)● Joint venture with Taiheiyo Cement Corporation:

recycling of incinerator bottom ash

Compared with riddling ash, the ash collected from the bottoms ofincinerators has a low metal content and is considered difficult torecycle. ECONECOL Inc. has engaged in a joint venture with Taiheiyo
Cement Corporation, aiming to collect precious metals from incinerator
bottom ash and to recycle the ash after the precious metals are removed
in order to produce materials for cement production. We have installed
equipment for verification tests in the Ofunato Plant of Taiheiyo
Cement and are currently undertaking the tests in collaboration with
REVER HOLDINGS CORPORATION, in preparation forcommercializing this technology.

Plant for the separation of metals
from waste incineration ash

Cement company

Metals collected
Gold, Silver, and Copper
Sediment Sludge (Mix metals)

Nonferrous smelting company

Sustainability Report 201916

Contents / Editorial policy

Company profile

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Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Global Resource Circulation BusinessSocietyBusiness foundation / Growth foundation

References

Resource Circulation Business

Recycling of lithium-ion batteries

Minor metals such as nickel and cobalt are known as the “vitamins
of industry” because these metal materials are indispensable to thehigh-tech and electronic industries. However, the depletion ofmaterials is now causing great concern because the expansion of
relevant industries has been increasing the demand for minor metals.
VOLTA Inc. focused its attention on particularly the inputs oflithium-ion batteries, and is currently engaged in the recycling ofminor metals (cobalt, nickel, and lithium) that are used in lithium-ion
batteries. Lithium-ion batteries are widely used in home appliances,such as smartphones and electric cars, and the demand is expected tofurther grow in the future. The company contributes to therealization of a sustainable society, promoting resource circulation
by supplying the collected minor metals back to battery
manufacturers.
In FY2018, the company made a large investment to ensure the safe
discharge of electricity and to create a system for prompt recycling.
Furthermore, it constructed a factory equipped with a unique exhaust
treatment system in order to enhance the safety of residents and theneighborhood environment. We will strive to promote lithium-ion
battery recycling and to improve the recovery rates by further
promoting technological innovation in the future.
* Black sand: a mixture of cobalt, nickel, and others
that is produced by the calcination of lithium-ion
batteries. By smelting Black sand, recycled cobalt andnickel are produced.

Black sandSustainability Report 201917

Contents / Editorial policy

Company profile

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Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Global Resource Circulation BusinessSocietyBusiness foundation / Growth foundation

References

Recycling of ASR

Resource Circulation Business

TopicsASR Recycling Business

Dealing with wood waste/materials that are difficult to dispose

KURODA RECYCLE Co., Ltd. is engaged in the recycling
business of Automobile Shredder Residue (ASR), which remains
after end-of-use vehicles are dismantled to remove
chlorofluorocarbons and their parts, such as air bags, doors andengines, and shredded to collect useful metals.
ASR contains metal particles that were not collected during theshredding process. By further separating/pulverizing and kneading
ASR, the company successfully collects the metal particles andrecycles them as materials for cement production, thereby
contributing to improving therecycling rates of scrap cars.
There are only a small number of
ASR recycling facilities nationwide.
Hence, the company’s facility in
Hakodate City, Hokkaido, accepts
ASR Recycling Facility
ASR from outside of Hokkaido.

Demand is expected to increase for disposal of wood waste
generated through demolition of buildings. In light of this, thecompany constructed an additional pulverizing plant to increase thevolume of wood waste to be recycled as fuel chips, etc.
Furthermore, this plant accepts materials that can be neither
shredded nor crushed, such as fishing equipment, which causes
disposal problems for people in the fishing industry. The company
will proactively increase the number of accepted products,
including materials that are difficult to dispose, thereby expanding
the range of products which they can recycle.

Resolution of waste management problems inherent in each
community
The company is located in the seaport town, Hakodate City. It works
on resolving waste management problems inherent in Southern
Hokkaido through the “Comfortable Life Support*” business. In
recent years, it has focused on the management of scrapped vessels,
ranging from small fishing boats that can be transported by truck asthey are, to large-scale fishing vessels that need to be dismantled onsite. In this business, it adopts a bracket contract. Hakodate is also asnowfall area. The company undertakes the preemptive demolition
and removal of houses, backyard sheds, containers, etc. that are
anticipated to collapse due to snowfall.
As described above, the company offers various services in responseto the different needs of customers in local communities, making useof its extensive knowledge and experience related to recycling.
*Comfortable Life Support: a business that addresses a wide range of issues faced by local residents
through, for instance, the disposal of disused articles, the removal and disposal of articles including
large-sized home appliances, and the demolition of vacant houses.

ASR Recycling Facility: Flowchart
Raw materials for fuel production

Metals separated
Light dust
Particle separation

Primary shredding

Air separation

Heavy dust

ASR resource
recovery rate

100%
(FY2018)

Alternative fuel(Materials and fuels for cement production/made from heavy dust)

Eddy current
separation(Waste plastics/wood waste/tatami mats)

Secondary shredding

Shredding
pretreatment

Magnetic separation

Kneading

Ferrous metals

Dismantling of vessels

Alternative fuel(Materials and fuels for cement production/made from light dust)

Fluff fuels
Unsolidified fuels madefrom shredded materials
Before garage removal

After garage removal

Sustainability Report 201918

Contents / Editorial policy

Company profile

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Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Global Resource Circulation BusinessSocietyBusiness foundation / Growth foundation

References

Resource Circulation Business

Regional circular and ecological economy through recycling“Syn Eco Plaza Azumino,” a recycling facility for regional circular and ecological economy through recycling“Syn Eco Plaza Azumino,”a recycling facility for regional circular and ecologicaleconomy through recycling
In April 2019, SYN ECO Inc. opened “Syn Eco Plaza Azumino,” arecycling facility for regional circular and ecological economy
through recycling. Under the theme of “solving social issues in thecommunity,” it offers a wide range of services to address the
problems facing local residents using recycling as an entry point.
Recycling of disposed home appliances
Syn Eco Plaza Azumino collects and recycles home appliances (TVs,
air-conditioners, washing machines and refrigerators) disposed in
Azumino City.
Opening of “Comfortable Life Support” help desk
Syn Eco Plaza Azumino operates the “Comfortable Life Support”
help desk for Azumino citizens, responding to the problems they arefacing, including disposal of disused articles.

Permanent installation of collection boxes of reusable materials
Syn Eco Plaza Azumino is engaged in the recycling of materials brought
in by local residents through the “Mottainai BOX” installed in thecompound where they can deposit reusable materials 24 hours a day.

● RE100 Recycling Facility
In July 2019, Syn Eco Plaza Azumino installed a power generating
facility with reused solar panels placed on the roof. Syn Eco Plaza
Azumino obtains 100% of the electricity that it consumes in thefacility from renewable sources, by combining its self-generated“Comfortable Life Support”
to support the comfortable life of local residents
The company undertakes the “Comfortable Life Support” business inthe areas around its offices. It offers a variety of services such as movingof furniture and home appliances, disposal of disused articles, removal/
disposal of large-sized home appliances, arrangement of the belongingsof the deceased by concerned specialists, demolition of vacant houses,
and cleaning of houses, thereby contributing to solving social issues in
the community such as assisting the elderly with waste disposal/housecleanup and addressing vacant house problems. The total number ofcases attended by our Comfortable Life Support teams reached 844 in
FY2018.

solar power with the electricity purchased from an electricity
retailer under the “RE100 Menu.”

Solar panels

Aerial view of “Syn Eco Plaza Azumino”

Sustainability Report 201919

Contents / Editorial policy

Company profile

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Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Global Resource Circulation BusinessSocietyBusiness foundation / Growth foundation

References

Resource Circulation Business

Regulatory Sandbox Framework

Collecting resources through “Mottainai BOX”
SYN ECO Inc. has permanently installed a “Mottainai BOX” in the
Chushin region of Nagano where people can leave reusable materials
24 hours a day. It recycles cardboard boxes, newspapers, wastepaper,
used clothes, metals etc. It has collected a total of 5,214 tons ofmaterials since its start.

Aiming to solve such problems, the company obtained approval
from the Ministry of the Environment, the first of this kind underthe “Regulatory Sandbox Framework*,” to install the “Mottainai
BOX” in 13 municipalities across the Chushin region, Nagano. This
is in addition to those that have already been installed in Matsumoto
City and Azumino City. By using IoT to manage the boxes that are
installed across a wide area, the company has efficiently collectedmaterials and improved recycling rates.

*Regulatory Sandbox Framework: This system is aimed at reviewing regulations that potentiallypose difficulties for the commercialization of new technologies, such as IoT, blockchain, or robots,or the realization of new business models such as platform businesses or the sharing economy.
Under the system, business operators who wish to promote new technologies or business models insociety will submit an application and obtain approval from the competent Minister in charge before
conducting a demonstration test. Then, the information and data collected through the demonstration
test will be utilized to review the regulations. (Source: Prime Minister’s Office: Growth Strategy
Portal Site)

33％

Collection BOX management system using IoT

84％
87％

40％

32％
16％

25％

Mottainai BOX

First project approved by the Ministry of the Environment
under the “Regulatory Sandbox Framework”-Demonstrating a next-generation wide-area recycling
system which uses IoTThe company has been undertaking a demonstration project for anext-generation wide-area recycling system which uses IoT, aiming toenhance the utilization of “Mottainai BOX.” The project is approvedby the Minister of the Environment.
While society demands the reduction of CO2 emissions during waste
incineration, a significant proportion of materials disposed byhouseholds, such as wastepaper, used clothes and metals have been
landfilled or incinerated as waste while they could have been
recycled. In addition, although municipalities should reduce theirexpenditure for waste management as the population decreases, theyfind it difficult to reduce related operation costs, labor costs, etc. Thisis because, in principle, each municipality is made responsible for thecollection of household waste in its own jurisdiction, making it
impossible for multiple municipalities to work together in order tobenefit from economies of scale.

25％
100％

93％

8％

Managing collection boxes installed across a wide area with IoT

Identifying the optimal collection route
Resource collection system
Mottainai BOX

Households

Optimalcollection routeacross a wide area Recycling facility

Metalsfor regional circular and ecologicaleconomy through recycling

Ferrous metals
Resource
recoveryNonferrous metals

Used clothes
Paper
Wastepaper
Used clothes

Sustainability Report 201920

Contents / Editorial policy

Company profile

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Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Global Resource Circulation BusinessSocietyBusiness foundation / Growth foundation

References

Resource Circulation Business

Remanufacturing (re-production) Business

Material recycling from ASR to plastics
Automobile shredder residue (ASR), which remains at the end of therecycling process, is recycled as solid fuels and materials for cement
production. However, a significant proportion of residue is incinerated
and landfilled due to various problems including the treatment
capacity of recipient companies. ASR contains a large volume ofplastics. Recycling such plastics will have great social significancefrom the viewpoints of promoting ASR recycling as well as thematerial recycling of plastics.
PLA 2 PLA Inc. manufactures plastic granular pellets with a diameterof 5 mm by separating and processing recycled plastics from ASR.
Recycled plastic pellets are currently used as recycled raw materials
for new plastic products such as pallets, which are utilized in the
distribution industry. The company has been engaged in research toexpand the use of recycled plastics in cooperation with an automobile
company, aiming to construct a resource circular model for vehicles(from one car to another car) in the future.
Furthermore, it is working on the development of “bioplastics” bymixing recycled plastic pellets with biomass such as wood powder.
This work is jointly undertaken with ECONECOL Inc. which isengaged in the business to mix plastics using a high-filling high-speed
melting machine, demonstrating the synergy that exists among groupcompanies.

Development of new recycled materials by melting andfusing different materials together
It is still difficult to recycle plastics and carbon fibers, which are
manufactured and disposed in massive quantities. Relevant
recycling technologies have not been well developed and, even if
they are recycled, their use has still been limited. ECONECOL Inc.
has introduced a new technology to mix two different materials
that an ordinary kneader finds difficult to mix such as recycledplastics and Japanese cedar, recycled plastics and carbon fibers,
and recycled plastics and gypsum. It has launched the manufactureof mixtures with the properties of few thermal hysteresis whichcause little damage, and has been collaborating with the
manufacturers of basic materials and molding equipment to expand
the use of recycled raw materials.

● Taking on challenges to manufacture biomass plastics
The high-filling high-speed melting machine that ECONECOL Inc.
has introduced is capable of mixing plastics, etc. with biomass, suchas wood chips, with a biomass content of 50% or more. It has beenverified to have the technical characteristics suitable for the
manufacturing of biomass plastics. The company is currently
engaged in the development of recycled plastics by melting andfusing plastics with various materials. There is enormous potential
for the production of composite recycled plastics.

Gypsum

CFRP*

Biomass

Manufacturing process of composite recycled plastics
ASR Recycled Pellet
Manufacturing Business

ASR(Automobile
shredder residue)

Recycledpellets

PLA 2 PLA Inc.

High-Filling High-Speed
Melting Business
ECONECOL Inc.

Scrap carsComposite recycled plastic
Manufacturing of recycledplastic pellets* CFRP: Carbon fiber reinforced plastic

GypsumCarbon fibers

CoffeeJapanese cedar
Sustainability Report 201921

Contents / Editorial policy

Company profile

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Sustainability Strategy

Resource Circulation Business

Used-cars-related Business

Global Resource Circulation BusinessSocietyBusiness foundation / Growth foundation

References

Resource Circulation Business

Manufacturing recycled materials from waste rubber

Taking over and advancing technologies

Enhancing safety in the community and ensuring a“joyful” environment for children

TOYO RUBBER CHIP Co., Ltd. founded in the Meiji era, has been
involved in the rubber recycling business since 1942. It makes fulluse of the skills and knowledge it has gained over 80 years to
manufacture products.
Regarding waste tires and offcuts of industrial rubber products asprecious resources, it manufactures rubber powder from thesematerials. This recycled powder is widely used for elastic paving
materials and artificial turf infills, as well as industrial products suchas tires and brake linings. The company is determined to develop
new materials by making use of the technologies that it has
cultivated.

Black rubber mulch, one of the recycled materials, is used for thecushioning of artificial turf for football fields, etc., ensuring the safetyof people who enjoy sports. Furthermore, “Omni rubber RailGuard
panels,” railroad crossing rubber panels, have great elasticity/durability
along with corrosion resistance and a nonskid-surface, thereby helping
to reduce the number of railroad crossing accidents.
Color rubber chips made from synthetic rubber are used for parks,
pavements and the flooring of play equipment as high-quality
cushioning with great elasticity. It is possible to create an original
design, by combining the various colors. Furthermore, they help reduce
the risks that involve fatal injuries caused by stumbling or falling.

Topics“RE100” Rubber Chip Factory
On May 1, 2019, the factory of TOYO RUBBER CHIP Co.,
Ltd. became an “RE100 Factory” where 100% of theelectricity consumed is generated from renewable sources.
The electricity consumed by the factory is purchased fromelectricity retailers under the “RE100 Menu.” Moreover, withthe use of the non-fossil fuel energy certificate with tracking
information, the factory will get prioritized to receive
electricity from the Komiya Solar Power Plant owned by SYNECO Inc., one of our group companies.
As a result, the company has achieved CO2 emission
reductions in the manufacturing process, making it possible toproduce zero emission products.

Rubber recycling process

Remanufacturing

Scrap tires(Offcuts of rubber products
from factories, etc.)

Black rubber mulch

Football field

Railroad crossing rubber panel

Shunsuke Park

Rubber panels for pedestrians

Maebashi Children Park

Kids Pia Ashikaga

Day care center

Kids Park

Synthetic rubber（EPDM）* EPDM: Ethylene
Propylene Diene Rubber

Color rubber chips

Sustainability Report 201922