With "circular economy" as the keyword, the push toward "zero emissions" in corporate factories and other facilities is a major current theme. Key factors include not only environmental considerations but also the reduction of waste disposal costs, enhanced corporate image, and profits from selling waste as recycled resources by converting it into raw materials for other industries.

With "circular economy" as the keyword, the push toward "zero emissions" in corporate factories and other facilities is a major current theme. Key factors include not only environmental considerations but also the reduction of waste disposal costs, enhanced corporate image, and profits from selling waste as recycled resources by converting it into raw materials for other industries.
Within this push for zero emissions, a business model is gaining attention: identifying where and what types of waste exist in what quantities, introducing it to companies that need it, and supporting the formation of inter-company networks—so-called clusters—where other companies utilize it as raw material. Showa Kogyo Co., Ltd., which handles industrial waste recycling primarily in the Kanto region, has recently launched an online waste exchange corner. We spoke with President Junichiro Saito.
●Mediating and facilitating reuse as raw materials. Mr. Saito entered the waste business in 1990, at age 25. He had been working as a systems engineer for a major electronics manufacturer but entered this industry through introductions from acquaintances. Showa Kogyo was established in 1993. Prior to that, it handled industrial waste collection, transportation, and final disposal for major chemical companies and others in the Tokyo metropolitan area.
The company also owned a final disposal site in Nasushiobara, Tochigi Prefecture. However, that site filled up within about two years. When attempting to build a new disposal site, they faced NIMBY issues and the plan failed. "Without the added value of owning a final disposal site, it's difficult to survive solely on collection and transportation services," thought Mr. Saito. He shifted the business focus to recycling.
He established a new company to start a waste brokerage and intermediary business focused on resource recovery. While receiving waste information from various companies, he also collects information on companies capable of reuse, receives brokerage fees, creates appropriate recycling routes, and handles the sale of recovered resources. Of course, it's not just about straightforward brokerage; he also provides advice on how to achieve reuse, including developing new applications.
Recycling is outsourced to affiliated or partner companies. The company also continues collection and transportation services, generating revenue by undertaking the collection and haulage of target waste materials.
The company holds collection and transportation permits for the Kanto region (Tokyo and six prefectures). Initial client and recycling route development leveraged connections from its earlier final disposal operations. Currently, over 20 companies provide waste for reuse. Some companies handle both waste provision and reuse internally. Past exchange and reuse achievements include: waste sulfuric acid, waste hydrochloric acid, waste caustic soda, waste sodium hydroxide, waste aluminum hydroxide, waste phosphoric acid, waste hydrogen peroxide, waste sulfuric acid, by-product phosphoric acid 'Noda', by-product boric acid, by-product sodium sulfate, waste acetic acid, waste ethyl acetate, waste butyl acetate, waste IPA, waste methanol, by-product methanol, waste carbon, waste metal silicon, waste silica, waste oil, waste polyethylene, waste PVC, waste flexcon, etc.
For example, waste sulfuric acid and waste caustic soda are reused as flocculants or neutralizing agents; waste ethyl acetate, waste butyl acetate, waste IPA, etc., are reused as regenerated solvents; and waste metal silicon is reused as raw material for solar cells and alloys.
Furthermore, organic sludge, surplus activated sludge, waste diatomaceous earth, and waste activated carbon are reused as raw materials by affiliated companies SK Compost (Nasushiobara, Tochigi Prefecture) and Kikuchi Sangyo (Nasushiobara, Tochigi Prefecture), which handle the manufacture and sale of soil conditioners.
Various plastic wastes are processed at Earthing (Gifu Prefecture): PVC composites undergo solvent separation for reuse, while single-material plastics like PP, PE, and ABS are crushed, repelletized, and used as building materials or exported overseas.
●Negotiations can take over a year to finalize. The most challenging aspect of waste brokerage and intermediary services like ours is coordinating collection terms. "There are many areas where quantities, specifications, and supply/demand timing don't align easily. For example, a supplier wants to offer 300 tons, but only 100 tons can be secured for a destination. Or, whether the destination has the capability for certain refining processes or not.
We have to find both the supplier and the reuse destination and match them, so it can take quite a long time to get the business off the ground. In fact, it's rare for things to go smoothly." We research raw materials and purchased goods and promote the use of recycled materials, but since they are not virgin materials, users are often reluctant to use them, wondering if they contain impurities. Even though green procurement initiatives are starting to gain momentum, the perception that it is troublesome still seems to prevail.
"We start by changing people's mindsets, emphasizing that it leads to cost reductions. In fact, in most cases, there are cost benefits for both the provider and the reuser. Some providers may choose recycling over cost benefits, but users will never agree to it unless there are cost benefits." Once it seems usable, further component analysis is conducted, followed by experimental introduction and then full-scale use. This is a difficulty unique to recycled products, unlike the sale of virgin materials.
Naturally, it takes time to close a deal. It can sometimes take over a year. ● Expanding information gathering by launching a "Waste Exchange" site. In this business, alongside recycling know-how and track record, how effectively information is gathered is key to scaling the operation. However, given the company's still small size, the information gathered is biased. Therefore, in June, they launched a "Waste Exchange" site online.
Companies wishing to dispose of waste and those seeking to acquire it as recycled raw materials register details such as type, quantity, properties, production process, and location on the company's homepage. Registered items range widely from chemical waste like spent sulfuric acid, spent alkali, and spent methanol, to sludge, wood chips, plastic waste, and even used waste treatment equipment. The company then mediates and facilitates matches between suitable supply and demand.
Some local governments and chambers of commerce have already established similar systems using newsletters. However, these systems typically only post information, leaving the actual negotiations between the parties. This often leads to mismatched collection conditions and makes it difficult to generate actual transactions. "I think a mediator to align each party's needs is still necessary.
Also, the internet's ability to provide the latest information is a definite plus." For now, the intermediary and brokerage services will focus on the Kanto region. However, with the launch of the waste exchange site, the company aims to eventually network with industrial waste processors nationwide and expand its services across Japan.
Given the current level of commitment from companies towards waste reduction and resource recovery, such a position is indispensable. Traditional industrial waste processors are also strengthening their recycling focus, and new entrants are likely to increase in the future. The goal is to build a track record quickly and secure a foothold by establishing an information gathering system.