ITOCHU Corp. (Minato-ku, Tokyo, Japan) announced that it has signed a comprehensive business alliance agreement with Daikin Industries, Ltd. (Kita-ku, Osaka, Japan). The agreement was signed under the framework of Japan’s Act Concerning Sophistication of Recycling Business, etc. to Promote Resource Circulation (Type 1), with the goal of increasing the sophistication of resource recycling in commercial air conditioners and the horizontal expansion of the use of recycled materials.
The transition to a circular economy is progressing, and the importance of horizontal recycling — a process in which the resources contained in equipment are used again in new products — is increasing in the field of commercial air conditioners. However, to stably use recycled materials to make products, the entire supply chain must be managed, including traceability and the evaluation of material quality. Accordingly, it is necessary to establish a system for the integrated management of processes including product collection, material recycling, product use, and quality assurance.
ITOCHU and Daikin will implement processes from the collection of no-longer-used commercial air conditioners through to the recycling of materials and their use in products in an integrated manner, with the goals of reducing environmental impact and establishing a sustainable supply chain. The two groups will leverage their respective strengths — including the ITOCHU Group’s knowledge of recycling, networks, and data management capabilities, and the Daikin Group’s product technologies and quality assurance capabilities.
The two groups will cooperate in the integrated management of the entire resource recycling process, from the collection and dismantling of commercial air conditioners to the sorting of materials, recovery of refrigerant, evaluation of material quality, recycling of materials, and commercialization of products. They will gradually expand the diversity of materials reused, including metals such as iron, copper, aluminum, and rare earth metals, as well as plastics (exterior and interior-use resins and fans), electronic components, and fluorocarbons. They will establish a comprehensive system for obtaining certifications under accreditation systems that encompasses logistics, data management, compliance with laws, and cooperation with customers, and will move forward with phased nationwide expansion while ensuring compliance with regulations and quality requirements.
The initiative will start with the implementation of a horizontal recycling business and the acquisition of legal certifications in the domestic market, with a plan to gradually expand the business nationwide while ensuring compliance with quality and regulatory requirements. Individual contracts will be signed regarding targeted models of air conditioners, quantity, quality standards, composition ratios, and other matters to facilitate the rapid expansion of the business.