For manufacturers, the disposal and reduction of industrial waste has become an urgent priority. In addition to soaring disposal costs due to the tightening capacity of final disposal sites, self-incineration using small incinerators has also become difficult due to dioxin contamination concerns.

For manufacturers, the disposal and reduction of industrial waste has become an urgent priority. In addition to soaring disposal costs due to the tightening capacity of final disposal sites, self-incineration using small incinerators has also become difficult due to dioxin contamination concerns.
Industrial waste disposal costs are increasingly becoming a factor squeezing business operations. Faced with this situation, Hokusei Pencil considered whether it could commercialize products using its own industrial waste. By pulverizing the large quantities of sawdust it produces into a fine powder to create a new material, and developing new products like clay, the company is transforming itself into a venture business focused on environmental products and materials.
Hokusei Pencil is a mid-sized pencil manufacturer with its factory in Yotsugi, Katsushika Ward, Tokyo, an area retaining its old downtown charm. Many employees are local residents, making it a typical community-rooted company. It produces approximately 100,000 pencils daily, sold nationwide through distributors and wholesalers.
With annual sales of approximately ¥500 million, it was recognized as a Katsushika Ward Model Factory in 1997. "However, the situation surrounding the pencil industry has become extremely challenging in recent years, with demand steadily declining," stated Kazutoshi Sugitani, the company's president. Due to the spread of personal computers and email, coupled with the declining birthrate, domestic production of writing instruments—not just pencils—has fallen across the board.
According to the Ministry of Economy, Trade and Industry's miscellaneous goods statistics for 2001, domestic pencil production fell to 2,636,000 gross (1 gross = 144 pencils), even lower than the previous record low in 1999, representing a 14.6% decrease from the previous year. Compared to its peak in 1966, production has dropped to about one-quarter of that level. Furthermore, the disposal of sawdust generated during the manufacturing process has become a challenge.
Pencil production involves carving grooves into boards, placing the lead core inside, clamping the board, and then shaving it into pencil shape. This process generates sawdust from about 40% of the board material. At the company, one ton of sawdust is produced every two to three days. "Sawdust used to be in high demand as fuel for public bathhouses, but the decline of these bathhouses closed that reuse avenue.
Furthermore, due to concerns like dioxin pollution, local residents increasingly demanded no smoke emissions, making on-site incineration difficult," explained President Sugitani. Amidst this situation, the company embarked on sawdust recycling three years ago as a two-birds-with-one-stone idea: developing a new business utilizing waste. To broaden its commercial potential, they focused on pulverizing the sawdust into fine powder.
By pulverizing it, we could mix it with various other materials, enabling us to commercialize products that would fit easily into our existing sales channels. For developing the pulverization technology, we sought cooperation from Nisshin Engineering, a group company of Nisshin Seifun. By applying existing technologies, such as those used in toner particle manufacturing, we succeeded in pulverizing the sawdust to approximately 100 mesh.
The first product developed using this fine powder was "Mokunensan." It is a clay made by mixing the fine powder with water and adhesive (PVA: polyvinyl alcohol) in appropriate proportions, allowing free-form modeling just like regular clay. After drying in the shade for 2-3 days, it hardens like wood, enabling cutting, carving, painting, drilling, screwing, and gluing just like real wood.
For example, rolling Mokunen-san into a thin sheet and wrapping it around a pencil lead creates a pencil. It doesn't stick to your hands and has a faint woody scent. When discarded, it can be disposed of as combustible waste, and it biodegrades when buried in soil, combining the characteristics of an environmental product beyond just being recyclable.
In early 2002, production equipment capable of manufacturing 1,000 units per day (based on 500-gram equivalents) was installed in the factory. Pricing is 500 yen for the 500-gram pack and 300 yen for the 300-gram pack.
Starting in April, leveraging the company's existing distribution channels, full-scale sales began at schools, educational material companies, and stationery stores. Sales have already exceeded 70,000 units, showing a promising start. It holds potential to become a staple product. Additionally, as a second product line, "Colored Water Clay" is scheduled for release within this fiscal year.
This is a paint made by mixing sawdust micro-powder with food-grade adhesive and pigments. It offers the same ease of use as watercolors while delivering an oil painting-like texture. Currently, the company is collaborating with experts, including art universities, to refine color adjustments, packaging sizes, and marketing planning. The micro-powderization process, aimed at broadening product applications, has proven more effective than anticipated.
Beyond clay and paint, we are also developing deodorizers and biodegradable flake-shaped resin. The key to success lies in the company's approach to environmental business—building upon existing operations like utilizing waste and sales channels—combined with a strong focus on productization through micro-powderization.