Special Feature 2Daiseki Group’s Capital Investment
As the global trend toward carbon neutrality enters full swing, we have seen a further increase insocietal support for Daiseki’s recycling-centric treatment methods and recycled fuels. Against thisbackground, we are implementing large-scale capital investment with an eye to medium- and longterm growth. In the Kanto and Kansai regions, which have large-scale markets of which the DaisekiGroup has a relatively low share, we are focusing on proactive capital investment and sales
activities to expand our business.

Trends in Capital Investment by Segment Millions of yen

Breakdown of Daiseki Group Capital Investment by Purpose (FY2023)■ Wastewater, waste oil, and sludge recycling segment ■ Soil and plasterboard recycling segment■ Lead recycling segment ■ Oil tank cleaning segment
5,336

2,664

Others21.7％

Safety5.4％

Capitalinvestment*

Environment*
72.9％

1,800
608

1,038
203 143

203 133

FY2021

FY2022741 545

117

FY2023

Note: Information for wastewater, waste oil and sludge recycling segment is derived from data of Daiseki Co., Ltd and Hokuriku
Daiseki Co., Ltd. and information for soil and plasterboard recycling segment is derived from data of Daiseki Eco. Solution Co.,
Ltd., Green Arrows Central Co., Ltd. and Green Arrows Kyushu Co., Ltd. Information for Lead recycling segment is derived
data from Daiseki MCR Co., Ltd. and information of oil tank cleaning segment is derived data from System Kikou Co., Ltd.

Note: This capital investment amount does not include the costof land purchases.
* E nvironment includes initiatives for the purpose of promoting
recycling, preventing pollution, and reducing CO2 emissions.

Major capital investment in FY2023● Newly established Kansai Works Harima Recycling Center (Daiseki)
Harima Recycling Center, which manufactures supplemental fuelsfrom waste solvents and other materials, was completed in January
2023. Recycled supplemental fuels shipped from Harima Recycling
Center is used as an alternative to coal by customers in the
manufacturing industry in the Kansai region. We plan to continue
adding to the facilities at Harima Recycling Center, in addition to thesupplemental fuel plant.
Recycled supplemental fuel plant at Harima Recycling Center● Newly established Hiroshima Works (Daiseki)
Our goal in newly establishing our Hiroshima Works is to increase ourshare in the markets of Japan’s Chugoku and Shikoku regions, locatedbetween our Kansai Works and Kyushu Works. The land was acquired inAugust 2021 and plant construction began in January 2023. This works isscheduled to begin operations in March 2024. A plant for recycling waste
solvents and other materials into supplemental fuels will be constructed at
the Hiroshima Works. We plan to sell these supplemental fuels primarily tocustomers in the manufacturing industry in the Chugoku and Shikoku regions.

25Hiroshima Works under construction

● Enhancing treatment facilities at Kyushu Works (Daiseki)Inordertorespondtothedemandforsupplementalfuels,we
investedover2.5billionyentobuildanewsupplementalfuelplantat
ourKyushuWorks.
Thisnewsupplementalfuelplanthasthecapacitytoprocess
1,584m3ofwasteoilperday.Wewillusethisfacilitytobolsteroursalesactivitiesandmeetcustomerexpectationsmorefullythanever
before.
SupplementalfuelplantatKyushuWorks● Newly established industrial waste treatment facility (Daiseki MCR)
EstablishinganindustrialwastetreatmentfacilityattheHiraidePlant
inJanuary2023andacquiringalicenseforspeciallycontrolledindustrial
wasteenabledustocompleteintermediate-stagetreatmentofwaste
leadbatteriesatonelocation.
Byintroducingfacilitiesforcleaningandshreddingplastic,theplastic
containersofthewasteleadbatteriescannowberecycledinto
recycledplasticmaterial.Thiscutting-edgeintermediate-stagetreatment
facilitywasdesignedwithconsiderationfortheSDGsandreduces
IndustrialwastetreatmentfacilityatDaiseki
environmentalimpact.
MCR’sHiraidePlant
Sincethissafe,cleanrecyclingfacilityrespondstothedemandfortreatmentofindustrialwasteleadbatteriessuchasthosefor
uninterruptiblepowersupply(UPS),itwillcontributetothecreationof
acirculareconomysociety.

Future capital expenditure plan with a focus on Vision 2030
Today,thereisagrowingdemandfortheproper
treatmentandrecyclingofindustrialwaste,whichis
becomingincreasinglydiversifiedandcomplex.AsaGroup,weareworkingtoexpandourbusinessto
addressthis.Specifically,weareimprovingour
technicalcapabilities,expandingthenumberofitems
thatcanbetreatedandrecycledbyintroducingnew
equipment,andproactivelyinvestingcapitaland
expandingsales,withtheaimofincreasingourmarketshareespeciallyinthetwolargemarketsof
KantoandKansai.
FollowingtheHiroshimaWorks,whichiscurrently
underconstruction,weplantobuildnewworksinthesouthernKantoandTohokuregions,wherewearesearchingforsuitableland,assoonasthereare
prospectsforcommercialization.
Wearealsonowconsideringlaunchingthreenew
businessesthatwouldgeneratesalesof
around15billionyen.Regardingthis,we
plantoinvestcapitalassoonasthereareprospectsforcommercialization.

DaisekiHeadquarters
DaisekiWorksNewDaisekiWorks
(plannedorunderconstruction)
Groupcompanies(headquarters)

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