Automakers are currently working to create cars that are easy to recycle, with features such as easy disassembly and material labeling. However, it will be three or four years at the earliest before these studies bear fruit and these vehicles will not be scrapped until another 10 years from now. Naturally, this will not be in time for the Automobile Recycling Law scheduled to take effect in 2004, and even after the law comes into effect, various obstacles are expected to remain for some time in order to reuse and recycle end-of-life vehicles that have not been considered for recycling.

Automakers are currently working to create cars that are easy to recycle, with features such as easy disassembly and material labeling. However, it will be three or four years at the earliest before these studies bear fruit and these vehicles will not be scrapped until another 10 years from now. Naturally, this will not be in time for the Automobile Recycling Law scheduled to take effect in 2004, and even after the law comes into effect, various obstacles are expected to remain for some time in order to reuse and recycle end-of-life vehicles that have not been considered for recycling.
The most troublesome and large cost- and manpower-intensive process when reusing and recycling not only automobiles but also other products that have not been considered for after-use disposal is sorting and disassembly. But it is no exaggeration to say that this part, which is the entry point, is the biggest point that determines the potential of the recycling system.
In the end-of-life vehicle recycling system, that is the auto dismantler. Currently, about 5 million end-of-life vehicles are generated annually, 25% from auto dealers, 70% from used car dealers and repairers called motors, and 5% from the general public. These vehicles are first transported to dismantling companies, where reusable parts are extracted and foreign materials are removed for the subsequent recycling process. Reusable parts are sold to used car parts distributors (parts distributors), and the main body parts, excluding reusable parts, are given to scrap iron processors (shredding companies).
Currently, there are approximately 3,500 dismantling companies in Japan. In the past four to five years, many small and medium-sized dismantling companies have shifted their focus from dismantling to parts sales, where they commercialize and sell high value-added parts, against a backdrop of falling steel scrap prices and other factors. In light of the Automobile Recycling Law, dismantlers will be required to perform advanced dismantling operations, such as thorough parts removal and sorting to reduce the amount of shredder dust generated, as well as the removal of CFC gas and other substances.
In this context, we will examine the current status of major dismantling companies and the used parts market, which is the main source of income for dismantling companies, to see how their businesses are developing.
The Nagano Prefecture Used Automobile Recycling Center, which processes 1,800 vehicles a month
Main Facility Machinery of Nagano Used Vehicle Recycling Center Site area: 25,877 square meters Building area: 3,189 square meters Office and plant (including warehouse): 1 building Liquid extraction room: 1 building Fire pump room: 1 building Power generation facility room (for gasoline): 1 building Waste oil and waste liquid incinerator and boiler facility: 1 unit Oil water separation tank and purification tank: Vehicle press machine: 1 unit Forklift trucks: 4 units
The plant was jointly established by about 56 auto dealers in Nagano Prefecture in response to the problem of abandoned vehicles and the fact that nearby auto dismantlers were piling up end-of-life vehicles in the open. The total site area is 7,800 tsubo, and the total construction cost is 750 million yen for a set of facilities and 500 million yen for a set of buildings. Currently, the plant processes approximately 1,800 cars per month, which is one of the highest processing volumes in Japan. Eventually, the company plans to process 2,000 vehicles per month, or 24,000 vehicles per year, which is 25-30% of the total number of ELVs generated in Nagano Prefecture.
Normally, collecting this many ELVs would be a difficult task, but since the project is being launched jointly by dealers, it should not be too much of a challenge. In the beginning, the cost of processing was 8,000 yen per car, which was expensive compared to the market price of 3,000 yen per car at that time, so the collection was not very good. The current processing cost is 12,800 yen in total: 5,000 yen for processing, 5,000 yen for transportation, and 2,800 yen for CFC treatment, due in part to the rising cost of delivering the shredder to the shredding company. For non-union customers, the processing fee plus 3,000 yen is charged.
The most distinctive feature of the plant is that all end-of-life vehicles are moved by dolly. The use of a cart instead of a forklift, which is usually used by dismantling companies, not only speeds up the work, but also prevents waste oil and other substances from spreading on the floor. The carts are powered by air motors to avoid igniting gasoline. Another feature of this system is that brake fluid, antifreeze, windshield washers, and Freon gas are thoroughly drained. The drained fluids are rendered harmless by evaporative combustion using heat from a waste oil furnace fueled by engine oil and transmission oil, and the excess heat is used for floor heating. Freon gas is treated by plasma destruction at Ichikawa Environmental Engineering in Chiba (about 1,500 yen per unit).
On the other hand, removal of foreign materials (glass, copper materials, etc.) and removal of parts are issues to be addressed. Copper materials (wiring, etc.) are removed, but not all of them, and glass parts are scrapped without removal except for those to be removed and handed over to a shredding company. Also, for parts removal, we remove engines, transmissions, doors, bumpers, radiators, shock absorbers, driveshafts, headlights, etc., but not all of these parts are removed from all end-of-life vehicles, and only those that may have commercial value are removed. In many cases, sluggish items, exterior parts of minor car models, and damaged parts are scrapped. It is said that about 25% of the total number of scrapped cars processed are scrapped for parts.
Nevertheless, the income from parts sales is a factor in reducing costs as income other than processing costs. Removed parts are sold to local repair shops and dealer plants. In addition to tires at 160-170 yen per body and aluminum material at 150 yen/kg, catalysts (precious metals) are also highly valued. Currently, the surrounding environment is difficult due to falling steel scrap prices and the reverse charge for delivery to shredding companies, but earnings (processing fee income, sales income - shredding, CFC processing, etc.) remain at the 13,000 yen per unit level.
Renaissance (Kimitsu City, Chiba Prefecture), which utilizes ferries to reduce collection and transportation costs.
Renaissance was established in September 1998 by Steel Transportation Co. The company currently processes 1,000 units per month. The company handles vehicles that have been scrapped after auctions, etc. The company is unique in that it does not collect transportation fees. The company is unique in that it does not charge a hauling fee. The company utilizes the outbound (shipments) and inbound (scrapped cars, etc.) ferry routes within Tokyo Bay and between Yokohama and Ichikawa. Disposal fees are set at 3,000 yen/vehicle for scrapped vehicles, 1,500 yen/vehicle for CFC disposal, and 1,000 yen for other expenses such as scrapping procedures and others.
Only power system parts such as engine, transmission, radiator, starter, alternator, etc. are removed for parts removal, and other parts are not removed at all depending on the extent and year of the car model. Since the price of each part is higher for newer models and years, the company removes selected parts for sale to used parts suppliers, etc., but scraps all other parts. The company also cites the removal of foreign materials and the thorough removal of parts as a future issue.
Automobile dismantling requires a high level of skill and capital investment in terms of processing costs, logistics, and environmental costs, and strengthening of laws requires a system to support these costs. Even today, the profit model of dismantlers relies on the sale of recycled parts, and the selection of parts and the development of sales outlets are key.
However, the industry as a whole must work with automakers to promote design and material selection that takes recycling into consideration. In the future, it is hoped that eco-design, which takes recycling into consideration from the product design stage, will become widespread and move toward reducing the burden on dismantlers. The future of ELV recycling, along with the establishment of an efficient system, will be an important step toward the realization of a sustainable society that balances environmental protection and resource recycling.