For manufacturers, the disposal and reduction of industrial waste have become urgent priorities.

For manufacturers, the disposal and reduction of industrial waste have become urgent priorities. In addition to soaring disposal costs due to the shortage of final disposal sites, on-site incineration using small-scale incinerators has also become difficult due to concerns over dioxin contamination. The cost of industrial waste disposal is becoming a significant burden on business operations. Faced with this situation, Hokusei Pencil began exploring the possibility of commercializing its own industrial waste. By pulverizing the large volumes of “sawdust” it generates into a fine powder to create a new material, and by developing new products such as clay, the company is transforming itself into a venture enterprise specializing in eco-friendly products and materials. Hokusei Pencil is a mid-sized pencil manufacturer with a factory in Yotsugi, Katsushika Ward, Tokyo, an area that retains the atmosphere of a traditional downtown neighborhood. Many of its employees are local residents, making it a typical community-based company. It manufactures approximately 100,000 pencils per day and sells them through distributors and wholesalers nationwide. With annual sales of approximately 500 million yen, the company was recognized as an “Outstanding Factory” in Katsushika Ward in 1997. “However, the situation surrounding the pencil industry has become extremely severe in recent years, and the market is shrinking,” says Kazutoshi Sugitani, the company’s president. Due to the spread of personal computers and email, as well as the declining birthrate, domestic production of writing instruments—not just pencils—has fallen across the board. In particular, according to the Ministry of Economy, Trade and Industry’s 2001 statistics on miscellaneous goods, domestic pencil production fell to 2,636,000 gross (1 gross = 144 pencils)—even lower than the previous low recorded in 1999—representing a 14.6% decrease from the previous year. Compared to the peak in 1966, production has dropped to about one-fourth of that level. Furthermore, the disposal of sawdust generated during the manufacturing process has become a challenge. Since pencils are made by carving a groove into a block of wood, placing a lead core inside, clamping the block together, and then shaping it into a pencil, about 40% of the block ends up as sawdust. The company generates about one ton of sawdust every two to three days. “Sawdust used to be in high demand as fuel for public bathhouses, but with the decline of those bathhouses, avenues for reuse were closed off. “Furthermore, due to concerns such as dioxin contamination, there was growing pressure from local residents to stop emitting smoke, making on-site incineration increasingly difficult,” said President Sugitani. Amid these circumstances, the company began working on sawdust recycling three years ago as a “two-for-one” solution—a new business venture that utilizes waste. To expand the potential for commercialization, the company focused on pulverizing the sawdust into a fine powder. By pulverizing the sawdust into a fine powder, we made it possible to mix it with various other materials, with the aim of commercializing products that could easily be integrated into our existing sales channels. To develop this pulverization technology, we sought the cooperation of Nisshin Engineering, a group company of Nisshin Seifun. By applying existing technologies used in toner particle manufacturing, we succeeded in pulverizing the sawdust into a fine powder of approximately 100 mesh. The first product developed using this fine powder is "Mokunen-san." It is a modeling clay made by mixing the fine powder with water and PVA (polyvinyl alcohol) in appropriate proportions, and like regular clay, it can be molded into any shape. After air-drying in the shade for 2–3 days, it hardens like wood, allowing you to cut, carve, paint, drill holes, nail, and glue it just as you would with real wood. For example, by rolling out "Mokunen-san" into a thin sheet and wrapping it around a pencil lead, you can make a pencil. It doesn’t stick to your hands and has a subtle woody scent. It can be disposed of as combustible waste, and if buried in soil, it biodegrades, making it an eco-friendly product that goes beyond mere recycling. In early 2002, we installed manufacturing equipment in our factory capable of producing 1,000 units per day (based on a 500-gram equivalent). The price is 500 yen for a 500-gram pack and 300 yen for a 300-gram pack. Starting in April, we began full-scale sales through the company’s existing distribution channels, targeting schools, educational material suppliers, and stationery stores. To date, we have sold over 70,000 units, indicating a strong start. It has the potential to become a staple product in the future. Additionally, as a second product launch, we plan to begin sales of “Colored Water Clay” within this fiscal year. This is a paint made by mixing fine sawdust powder with a food-grade adhesive and pigments. While it offers the same ease of use as watercolor paints, it provides the texture of oil paints. Currently, the company is collaborating with experts, including those at art universities, to refine marketing plans regarding color adjustments and packaging sizes. The use of fine powder to expand product applications has yielded better results than expected. In addition to clay and paint, the company is developing deodorizers and biodegradable flake-shaped resins. The key to success lies in the company’s approach to environmental business—which stems from an extension of its core operations, such as utilizing its own waste and sales channels—and its focus on micro-powderization to facilitate commercialization.