JARA NEWSfromJapan Automotive Recyclers Alliancewww.jara.co.jp

The 11th AAEF held in
India, confirms theimportance of ties
between recyclers andautomakers
The 11th Asian Automotive Environmental
Forum (AAEF) was organized in New Delhi on
November 1, 2018. The AAEF was organized inIndia for the first time and approximately 200
delegates from seven countries participated in
the main conference and the related meetings.
These delegates included automakers,
representatives from the automotive recycling
industry, and those from government andacademic sectors. From the hosting country
India, the board of directors of the Metal
Recycling Association of India (MRAI) and theCO2 Reduction Effect(based on JARA System)

The use of Reuse Parts saved

3,088 tons of CO2 emissions
in November 2018
The reference figure represents the difference ofcarbon 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.

Published by JARA Corporation
Tokyo Head Office: 1 F. Yaesu KT Bldg. 1-1-8,Yaesu, Chuo-ku, Tokyo JAPAN 103-0028
Phone: +81 3 3548 3010 / Fax: +81 3 3231 4690

building an advanced automobile recyclingsystem. A new plant fitted with the latest
equipment and facilities is likely to beconstructed in the suburbs of Chennai.
MRAI is also involved in developing proper
dismantling of ELVs as well as reducing the useof heavy metals. It recognizes the importance ofthe relationship between recyclers andautomakers.
The speakers from every country were asked
many questions by the audience

Society of the Indian Automobile Manufacturers(SIAM) attended the event. From Japan,
directors and members of the AAEF JapanCommittee (Chairman Professor YU Jeong-soo,
Tohoku University Graduate School) and thenon-profit organization Japan Automotive
Recycling Alliance (NPO-JARA Chairman
Satoshi Takahashi), as well as the representativesof Toyota Tsusho Corporation, Kobelco
Construction Machinery Co., Ltd. automakers
and NPO-JARA member companies participatedin the event.

India responding to rapid growth

Chairman of the AAEF Japan Committee,
Professor YU Jeong-soo, Tohoku University
Graduate School declared the opening of the11th AAEF

January 2019, No. 131

In the opening session of the conference,Professor YU Jeong-soo stressed the necessity of
the responding to changing environment
surrounding the automotive industry. He added,“In addition to its core members, Japan, China
and South Korea, the AAEF has recently
welcomed Malaysia, Australia, and Mongolia.
We need to further widen AAEF’s coverage.” Hefurther added, “We also welcome India, thenewest member.”
The annual sales figures in the new vehicle
market in India are expected to grow from 4
million-unit at present to 10 million units in2030. End-of-life-vehicles (ELVs) are also
expected to significantly increase in the country.
A member of a recycling group of SIAM
expressed concerns, “Older vehicles areextensively used in India, which causes airpollution. Now, the Government is considering
an incentive program for purchasing newvehicles to replace with the older ones.” At
present, the recycling of ELVs is primarily doneby medium- to small-sized recyclers, which aremostly located in big cities. “Even if a large
number of ELVs appear, the capacity of recyclers
would not be enough. They cannot handle proper
processing of electric auto parts.”
Further, SIAM, jointly with the governmentand heavy industries association, is involved inIncreasing awareness about theimportance of automobile recycling
The participants paid careful attentions toJapan’s advanced auto recycling system.
Professor YU Jeong-soo explained Japan’sefforts, and then referred to the global impact ofresources recycling and cross-border pollution.
At present, many used hybrid vehicles areexported from Japan to Mongolia, Sri Lanka,Myanmar, and Pakistan. “When the hybridvehicles become ELVs in these countries, itcould cause issues. Since people all over theworld have suffered natural disasters in recentyears, he reported that, in Japan, the Japan
Automobile Recycling Promotion Center(JARC), jointly with the environment ministry,is creating a manual for proper recycling ofvehicle damaged due to disasters.
Meanwhile, YU also pointed out that due tothe China’s import restrictions on industrial
wastes, export of miscellaneous goods andelectric products from Japan is likely to bedifficult. In China, authorities are tightening therules regarding environment-related issues,
which might affect the country’s auto recycling
businesses. “In future, environmental regulations
are expected to be tightened in all Asian
countries, Japan’s technical support would bemuch sought-after in building the automotive
recycling systems and rule-making, especiallyin developing countries.” (Daily Automotive
News, Dec. 6, 2018 issue)

Many people from Japan participated in theconference

JARA NEWS No. 131 January 2019 Page 2
many inquiries regarding recycled parts fromvisitors.
“It was a good opportunity to directly
communicate with visitors regarding the lowpriced recycled- and reuse-parts that are underwarranty,” JARA said. (Daily AutomotiveNews, Dec. 13, 2018 issue)

Rebuilt parts, etc. are on display at theJARA booth

JARA and partners join
old cars festival in Odaiba
Japan Automotive Recycling AllianceCorporation (JARA, President Sosho Kitajima)
participated in the Odaiba Kyusha Tengoku
2018 (Odaiba Old Car Festival), which washeld in Tokyo’s Odaiba area. JARA’s partner
rebuilt parts manufacturers jointly exhibited
their products. They were Links Japan Co.,
Ltd., Turbo Techno Service Co., Ltd., TAS
Corporation’s Yokohama Generator SupplyDivision, and Soshin Co., Ltd.
At the JARA booth, cut models of turbo
chargers and compressors, as well as starters,
were displayed. Promotional leaflets on
recycled auto parts were also provided tovisitors. Many owners of old and classic carsthat were made during Japan’s Showa Era
attended the event. Exhibitors’ staff received

Toyota Tsusho increases
Lithium carbonate output
in South America
Toyota Tsusho Corporation announced theirplans to increase lithium carbonate production
capacity in Argentina. The production is a joint
operation with Australia’s Orocobre Ltd. By
2020, company plans to increase the output
volumes by 1.7 times the current level. With anincrease in the production capacity of lithium
carbonate output is expected to increase to42,500 tons per year. This move comes as one of
the company’s efforts to meet the growing
demand for electric vehicles (EVs), with planned
investment of 295.00 US$ (33.4 billion yen) infacility expansion.
Since 2014, Toyota Tsusho facilities at Salarde Olaroz, Argentina, has been producing
lithium carbonate, by pumping up sea watercontaining metal carbonate, followed byevaporating and concentrating processes.
Currently, it produces 25,000 tons of Lithium
carbonate annually.
On completion of the expansion, increased
capacity is partially expected to go for Lithiumhydroxide output, which is also used for EVs.

China's ban on waste plastics
import brakes shredding
operations in Japan
Shredding of ELV bodies and remaining
materials is slowed down at shredding
operators’ facilities, with stocks piled up towait. In October 2018, pile of such vehicles
increased by 7.5 percent compared to theprevious year to 22,456, caused by China’s
ban on import of waste plastics. Following theban, shredder residues of household electricalappliances had a sharp increase and rush to theshredding facilities, resulting in a scale downof shredding capacity of automobiles.
Usually, every year ELV body shedding
peaks in March and April and this pace goes
down coinciding with new vehicle’s salesperformance. However, affected by China’s
import restrictions on industrial waste andimport ban on waste plastics, which wereintroduced in June 2016 and December 2017,
respectively, waste electrical appliances andused plastics stock have no place to go but pile
up in Japan.
(Daily Automotive News, Dec. 4, 2018 issue)

ELV acceptance expected
to grow for two
consecutive years
In 2018, accepted numbers of end-of-lifevehicles (ELVs) by certified operators is
expected to increase compared to the previousy e a r, m a r k i n g y e a r l y i n c r e a s e f o r t w oconsecutive years. According to the Japan
Automobile Recycling Promotion Center(JARC), the ELV acceptance in November 2018
increased by 2.9 percent on the year to 275.446
units. As the numbers during January-November
2018 period was 3,085,669 units, the full year2018 figures are expected to be close to 3.36
million units, about 90,000 units more than theprevious year.
Increase in sales of new vehicles contributed
to the growing trend of ELVs. During JanuaryNovember 2018, new vehicle sales were
4,884,542 units, up 0.9 percent higher than theprevious year, and by the end of 2018 figures areexpected to surpass 5 million units for thesecond year in a row. This facilitates the growthof ELVs. If the numbers of ELV acceptanceSome shredding operators reduce trading
volumeThis scenario affected the automobile
shredding operations. “Some operators areforced to reduce trading volume of ELV
shredding,” JARC said.
Recyclers have to pay close attentions tothe future trends in other Asian countries. As
import ban on waste plastics is also introducedin Thailand, Malaysia and Vietnam. According
to the Ministry of Environment, Japan emits
900 million tons of waste plastics annuallyout of which 140 million tons are exportedto China per year. The amount of automobile
shredder residues (ASRs) in Japan aggregatesto only 600,000 tons a year, which contributes
very small portion of waste plastics.
If a huge amount of industrial wastes has
no overseas place but to build up in Japan,
recycling businesses would face serious
problems in near future. This situation may
pose great impact on the automobile recycling
industry in Japan, which until now relied onoverseas markets. (Daily Automotive News,Dec.6, 2018 issue)
surpasses 3.3 million units, it would be for thefirst time in four years.
Another factor contributing to the growth of
ELV is high trade prices of scrap steels. SinceNovember 2016, scrap steel prices have beenhigh: currently, it is between 32,000 yen to
33,000 yen per ton. Further, many vehicles weredamaged by disasters, which hit in Japan in thesummer of 2018, also contributed to the increasein ELV acceptance increase.
Meanwhile, for fiscal year 2018 ending inMarch 2019, JARC expects an annual increaseof 2.6 percent comparing to the previous year
figure to 3.39 million units. (Daily AutomotiveNews, Dec. 20, 2018 issue)

Acceptance of ELVs is expected to be above3.3 million units for the first time in 4 years

JARA NEWS No. 131 January 2019 Page 3

Dismantling process flow chart
How the Car Dismantling machine works
1. Receiving andevaluating cars
Incomingvehicles tested
on dynamometerto check engine
condition

3. Parts collection

4. Collecting
undercarriage
parts and engines

Efficiently collectreusable parts

The car is turned to safely
collect engine, exhaustsystem and suspension parts

Remove fluids such as fuel, various types ofoil and chlorofluorocarbon gas

13CuAlCopperAluminium

63.546

Tyres

Batteries

Doors

Seats

Bonnets

ExhaustEngine Suspension

After treating, the scrap cars
are cut up and crushed orpressed into materials thatmeet industry needs

After pre-processing,
the car is sorted into raw
components such as
ferrous, non-ferrous andplastics
29

2. Collecting fuel, fluids andchlorofluorocarbon gas

6.Volume
reduction
processes

5. Car dismantlingprocess

Harnesses

MotorsRadiator

26.982Blocks of material can then be
distributed to smelting plants
for recycling

5. Processes
after removing
parts
Once thoroughly
cleaned, the parts
become good quality
recycled parts

The Evolution of car dismantling industry by Kobelco
Four times* the vehicle dismantlingcapability compared with hand dismantling.

EngineCatalytic
AgentsBody SteelSeats

Improved recovery
rate of rare earth metals
Windows26

1329

78

46

FeAl

CuPt

Pd

Iron

Aluminium

CopperPlatinum

Palladium55.933*In one day (Kobelco test figures)

15 vehicles >Wheels/Tyres

26.98263.546

195.08106.42

Separation of these valuable
materials is quicker and easierand can be performed with one
Kobelco machine.

Sus pension

One operative
working by hand.
Radiator

60 vehicles >One operativein a KobelcoCar Dismantlingmachine.

BrakesFront & Rear
Bumperswww.kobelco-kenki.co.jp/

www.samjung-kenki.co.kr/

KOBELCO CONSTRUCTION MACHINERY AUSTRALIA PTY LTD
www.kobelco.com.au/

FAIR FRIEND ENTERPRISE CO.,LTD.
www.ffg-tw.com/

The machine’s special attachment
is designed to strip materials from
End-of-Life Vehicles (ELV)safely and thoroughly
Transmission

For Japan

For Korea

For Australia

For Taiwan

Doors

Harnesses

www.kobelco-jianji.com/

www.kobelco-usa.com/

www.kobelco-europe.com/

For China

For North America

For Europe