Nikken Sogyo’s operations can be broadly divided into two categories: comprehensive building management services, and operation and maintenance services related to water treatment—such as the cleaning of building grease traps, sewage tanks, and reclaimed water systems, as well as waste disposal and the operation of water purification plants and sewage treatment plants. The company reports that management services account for approximately 50% of its business, while operation and maintenance services account for the remaining 50%.

Nikken Sogyo’s operations can be broadly divided into two categories: comprehensive building management services, and operation and maintenance services related to water treatment—such as the cleaning of building grease traps, sewage tanks, and reclaimed water systems, as well as waste disposal and the operation of water purification plants and sewage treatment plants. The company reports that management services account for approximately 50% of its business, while operation and maintenance services account for the remaining 50%. The company’s predecessor, Katayama Shoji Co., Ltd., began operations in 1941 as a general waste collection, transportation, and processing business (including human waste treatment). After the war, the company grew by securing contracts for cleaning and waste disposal at U.S. military facilities, including Yokota Air Base, and the Japan Self-Defense Forces Eastern Army. Furthermore, in the 1950s, the area along the Tobu Tojo Line in Saitama Prefecture—which had been the company’s traditional base—developed into a commuter town with an expanding sewer system. At the same time, the company expanded its business by actively obtaining registrations and permits, including licenses for general and industrial waste disposal. The company has a proven track record in wastewater treatment—such as sewage—and garbage collection. Regarding sewage, in the industrial waste disposal sector, the company manages and operates sewage treatment plants and treats mixed wastewater from building drainage tanks where wastewater from the food service industry and other sources mixes with sewage. In the general waste management sector, services include vacuum truck collection, septic tank management, and the treatment of wastewater from community plants and building sewage tanks. Recently, the company has seen a high volume of inquiries regarding the operation and management of sewage treatment plants, as well as the cleaning of building tanks—such as mixed wastewater tanks and sewage tanks—referred to as “building pits.” Currently, these two services account for roughly half of the company’s business. Regarding sewerage, we established an industrial waste treatment division in 1976, when building construction began to boom, and were quick to respond to the growing demand. In addition to building pit cleaning, for which we receive many private-sector contracts, grease trap cleaning—which involves cleaning drain grates in the food service industry—is also growing steadily. Of the hundreds of thousands of buildings and condominiums in Tokyo alone, it is estimated that only about one-third comply with regulations regarding the cleaning of pits and similar facilities. It is expected that demand will continue to grow if regulations are tightened in the future. Meanwhile, in waste collection, commercial waste is the mainstay rather than general household waste contracted from local governments. The company receives contracts from the food service industry, hotels, and office buildings to transport waste to municipal incinerators and treatment facilities. In recent years, as waste collection requirements for recycling have become stricter, the company has also been focusing its efforts on this sorted waste collection. The company currently handles three types of sorted waste: bottles, cans, and cardboard. For cans in particular, the company has purchased and installed compactors at each of its business locations. The compactors measure 60 x 120 cm and cost 500,000 yen. When cans are inserted, the machine separates them into aluminum and steel cans before compressing them to one-fourth to one-fifth of their original size. Regulations for sorted collection are expected to become even stricter in the future—including color-coding for PET bottles, polystyrene foam, and glass bottles—and the company is exploring ways to adapt to this as an opportunity for expanding demand. When asked about the company’s unique strengths, the response was, “It is, after all, our ability to secure the know-how and labor force at the front lines.” Founded in 1941, the company boasts a long track record and accumulated expertise. Additionally, through its unique connections with Brazil, it has a stable supply of Japanese-Brazilian workers, so it does not face labor shortages. Wastewater and garbage will never disappear as long as people continue to live. In other words, it can be described as a stable industry with guaranteed demand. “However, moving forward, it will be crucial not just to get the work done, but to elevate the company as a whole.” To achieve this, the company states that while expanding operations toward its future goal of an initial public offering (IPO) is essential, improving internal awareness is equally indispensable. “I believe the importance and nature of the waste management industry will be re-examined in the future. We will be required to recognize the significance of this industry and the importance of the environment, make efforts to meet customer needs, and give back profits to society.” Against the backdrop of a buyer’s market in recent years, the company has been successfully attracting motivated talent. “It is important to nurture this generation,” he says, noting that the company has established forums for employees under 30 to exchange ideas and creates opportunities to hear from guest speakers. In addition to its core business, the company sponsors events such as the environmental art exhibition “Art of the Amazonian Indigenous Peoples” (see photo on page 1), which opens on September 14. Furthermore, although the idea remains in the planning stages at this time due to cost constraints, the company aims to enter the recycling business in the future. The company believes that urine recovered from sewage tanks can be turned into organic fertilizer, and oil recovered from grease traps can be refined into high-quality machine oil.