JAPAN AUTOMOBILE RECYCLE NETWORK NEWSVol. 74

APRIL 2014

http://www.jara.co.jp

SPN and EcoLine merge on April 1tors, including sevenfrom SPN Co. andthree from EcoLine
parent Toyota Tsusho
Corporation. Amongthem, eight will be
part-time directors. At
186 companies, JARA
will represent theindustry’s largest network, and, throughcooperation
withToyota Tsusho, it aims
to actively promote its
business on globally.

New company named
JARA
SPN’s Kitajima to fill
top position
Taking business global
with Toyota Tsusho
On March 14, major recycled parts companies SPN Co. and EcoLine Co. held anews conference in Tokyo to provide anoverview of the new company to result
from the merger as of April 1. The newcompany will be called the Japan
Automobile Recyclers Alliance (or“JARA”) and current SPN President Sosho
Kitajima will assume the post of president.
The new company will be led by 10 direc-

A signing ceremony
took place before thenews conference. Attending SPN executives were Chairman Goro Domon,President Kitajima and Director Hiroyuki
Kurihara. The EcoLine side was represented by Toyota Tsusho Executive Director
Takumi Shirai, Recycling Business
Promotion Division Chief Kazutaka
Kitazume and EcoLine Co. President
Katsunori Imahara. Chairman Domon andExecutive Director Shirai signed and sealed
the merger contract.
The new company will be capitalized at
108.5 million yen, invested 58 percent bySPN and 42 percent by Toyota Tsusho.
JARA will have five locations, with its
headquarters located in the current head
office of SPN and branches in Nagoya,
Nagahama (Shiga Prefecture), andToyohashi (Aichi Prefecture), and an officein Okinawa. Its initial employees will number 33. Annual sales (based on a combination of the sales of the current two companies) will reach 5.3 billion yen. The April 1merger date has been moved up from theinitially planned May 1.
With SPN and EcoLine having already

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formed a tie-up governing their recycledparts trade systems seven years ago, eachare likely to maintain their current businessstructures even after the merger rather thanrush to harmonize them. Also, member
companies of each will remain so until
gradually integrated.
Although the acrnym JARA mirrors the“JARA” of the non-profit organ Japan
Automobile Recyclers Association (JARA),“We decided intentionally to use the same
name as the (world-renown) NPO because
we want to form an organization that tackles challenges in the field of end-of-lifevehicles on a global scale,” said Kitajima,
who added that the NPO JARA was quick
to give its consent.
The new JARA’s logo has been done ina dandelion motif with reuse parts done ingreen representing the flower’s floss thatwill eventually blossom into new flowers.
Said SPN Chairman Domon, “Such talks
had taken place a few years ago but the situation at the time meant that they were premature. I truly appreciate the fact that what
was long awaited as finally come tofruition.” Toyota Tsusho Executive
Director Shirai said, “It is our pleasure to beable to join with SPN, as we have long been
seeking an excellent trader of recycledparts. For two years, Toyota Tsusho had
been considering a comprehensive automobile recycling business and SPN has offered
the cooperation for which we have beenwaiting”
The executive team of the new company
is as described below.
Chairman and director: Goro Domon(part-time) / representative director andpresident: Sosho Kitajima; executive directors: Takayuki Moriya (part-time) andTetsuya Imai (part-time); managing director: Yoichi Tabuchi (EcoLine); directors(part-time): Hiroyuki Kurihara, Hideki
Kondo, Kazutaka Kitazume, and Kazuhiro–Continued on Page 2

JAPAN AUTOMOBILE RECYCLE NETWORK NEWSSPN and EcoLine–Continued from Page 1Watanabe; and auditors: Jiro Kamoshita,Gouichi Hida and Satoshi Suzuki.
Following are answers to key questions at the news conference.
What are the mutual benefits of themerger?
Kitazume: “There is a limit to how big a
flower can be made to bloom in the recycled parts field, when looking at the abilityof only Toyota Tsusho and EcoLine. I
keenly felt the need for both scale and networks. In the new company, rather thanforcing our own views, what is important ismaking our business big.”
Domon: “The name “Toyota Tsusho” oreven just “Toyota” will have a positiveeffect on our future.”
To what kind of large flowers will
Toyota Tsusho give bloom?
Kitazume: “The recycling of ELVs inJapan and Europe has reached a state ofrefinement. But in emerging markets, recycling will become a social problem. Our
mission is to provide a solution. Therefore,
we will emerge ourselves into a domain inwhich specialists in recycled and reuseparts operate.

fact that the association gave us permission
to use it.”

Imai named
new chairman ofSPN ClubSPN Group held its 9th General Meetingon March 14 in Tokyo and adopted activity
plans for fiscal 2014. Personnel changes inexecutive members were also approved.
Chairman Hiroyuki Kurihara, president ofShowa Metal Co. resigned and was succeeded by Yuji Imai, president of Imai Cars
Co..
Under the two pillars, “Strengthening theSPN Group,” and “Expanding Sales ofUsed Parts,“ the group’s activity plans wereadopted unanimously. Other planned items
include increasing membership, raising thelevel of member firms, strengthening edu-Why did you choose the name of JARA?
Kitajima: “JARA is a powerful and suitable name for the new company because ofour intent to go global.
Shirai: “In consideration of worldwide
activities taken by the renowned (NPO)
association JARA, we simply appreciate theREPORTS ON
EXISTING STANDARDS PRESENTED
METI hosts study meetingfor standardization ofrecycled parts

The Ministry of Economy, Trade andIndustry (METI) hosted the second convening of a study meeting following on establishing standards for recycled auto parts,
with the first gathering having taken placein January. Discussed were existing standards and product liability issues concerning reuse and rebuilt parts.
The study meeting is designed to estab-lish easy-to-understand standards for consumers, thereby promoting recycled autoparts to the general public. Kowledgeable
persons, industry leaders and representatives of consumer groups take part as regular members, while observers from carmakers and parts suppliers also attend.
At the second gathering, case reports
were presented by the Japan Automotive
Parts Recyclers Association (JAPRA), theNGP Japan Automobile Recyclers
Association, and Kaiho Sangyo Co. JAPRA
explained its common quality-assurance
standards among 12 recycler groups. NGP
explained its own guarantee criteria, while
Kaiho Sangyo explained its PAS standards
issued last autumn.
After the presentations, talks turned towho has responsibility for reuse and rebuilt
parts. Genuine parts manufacturers reuseparts companies and rebuilt parts companies gave their perspectives, and various
comments arose. In the end, meeting members confirmed that the producers of reuseparts and rebuilt parts are responsible for

No.74 APRIL 2014 < 2 >cational training, conducting proactive
block-based activities, improving quality,
expanding dealing with other groups,
actively promoting transport-cost reduction,etc.
At the beginning of the general meeting,newly appointed Chairman Imai delivered
the following message: “Much support wasgiven to us after the Great East Japan
Earthquake. Since then, our company’s
operations have recovered, and today wecan see normal operations. We now want to
repay people’s kindness. We will make ourbest effort to help the SPN Group go forward further.”After the speech, activity plans were presented by the Educational Department,
Quality Control Department and Block
Department of the group. Also, excellent
factories in fiscal 2013 were awarded.
SPN Group executive members are as
follows: chairman: Yuji Imai, president ofImai Cars Co.; vice chairman: Hiroyuki
Kurihara, president of Showa Metal Co.;
Toshihiro Chikamatsu, president ofChikamatsu Shoukai Co.; secretary general:
Tetsu Saito, president of Mie Parts SalesCo.; block leader: Junichiro Kawashima,president of Kawashima Shoukai Co.; educational department chief: Yusuke Iwama,president of Iwama Works Co.; quality control department chief: Hiroki Watanabe,
director of Carec Co., Sosho Kitajima, president of SPN Co.; auditor: Goro Domon,president of Daikou Trading Co.; advisor:
Tadashi Yatsuzuka, president of Yatsuzuka
Co., Gouichi Hida, executive director ofHida Tec Co.
such parts, in line with Japan’s product liability law.
Meanwhile, in discussions about thescope of reuse and rebuilt parts subject tostandards, three points were newly added tothe existing “quality confirmation”. They
were 1) provision of appropriate information on reuse and rebuilt parts, 2) making
sure of the safety of automobiles that use
reuse and rebuilt parts, and 3) protection of
intellectual property.
“Provision of appropriate information”
was added so that consumers will be able tochoose reuse and rebuilt parts based on
knowledge of vehicle history and quality
confirmation. “Making sure of the safety”
was added to cover parts involved inrecalls. “Protection of intellectual property”
was added to strengthen measures to prevent the circulation of imitation parts
among reuse and rebuilt parts.
METI plans to hold five sessions of thestudy meeting to set the direction for theestablishment of standards for recycledparts.

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