Eco-Friendly and Profitable Auto Recycling System

Kaiho Industry Co., Ltd.

2021

PRIZE

  • Re-Work Prize
  • Creating New Value Chains Prize
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Description

There are more than 1.3 billion cars in the world, of which about 30% are Japanese cars. In Japan, 3.3 million end-of-life vehicles are generated every year, while more than 1 million used vehicles are exported to developing countries every year, many of which lack recycling infrastructure and cause environmental pollution. With 52 years of experience in dismantling and sorting end-of-life vehicles, we have developed an international quality standard (British Standard Institution, PAS777) to ensure that reusable parts can be purchased with confidence. Furthermore, in the spirit of cooperation rather than competition, we have formed alliances with about 70 companies in the vehicle recycling industry throughout Japan to contribute to improving the profitability and added value of the entire industry. Furthermore, through the establishment of the International Recycling Education Centre (IREC), we have provided vehicle recycling training to about 200 trainees from around the world. We are responsible for the implementation of the circular economy through vehicle recycling.

Story

There are more than 1.3 billion cars in the world, of which about 30% are Japanese cars. In Japan, 3.3 million end-of-life vehicles are generated every year, while more than 1 million used vehicles are exported to developing countries every year, many of which lack recycling infrastructure and cause environmental pollution.
With 52 years of experience in dismantling and sorting end-of-life vehicles, we have developed an international quality standard (British Standard Institution, PAS777) to ensure that reusable parts can be purchased with confidence.
Furthermore, in the spirit of cooperation rather than competition, we have formed alliances with about 70 companies in the vehicle recycling industry throughout Japan to contribute to improving the profitability and added value of the entire industry. Furthermore, through the establishment of the International Recycling Education Centre (IREC), we have provided vehicle recycling training to about 200 trainees from around the world. We are responsible for the implementation of the circular economy through vehicle recycling.

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Judge’s Comments

David Benjamin

Founding Principal of The Living and Associate Professor at Columbia Graduate School of Architecture, Planning and Preservation

Re-Work Prize

This project embodies the essential and beautiful idea that circularity and re-use are compatible with meaningful labor and good jobs. Operating at multiple scales, the project is both local and global. It engages a local community and way of life, as well as a global impact (1.3 billion cars in the world! More than 1 million used cars exported to developing countries every year!). And it offers a compelling new version of global connection based on reuse and recycling rather than extraction and consumption. It is very impressive to see the project demonstrating some of the technical details required to make circular approaches work, including international standards, cooperation between companies, and education and re-training. The project reminds me of the visionary work of Swiss architect Walter Stahel, who created the mantra “reduce, reuse, recycle” and who formulates the ideas behind the “circular economy.” Back in 1973, Stahel was looking for ways to save energy in the construction industry. And instead of looking at building technologies, Stahel turned to behavior patterns and socioeconomic issues. He proposed “substituting work hours for energy,” and he wrote, “The creation of new skilled jobs can be achieved in parallel with a reduction of energy consumption through prolonging the useful life of buildings.” The same is true for cars and other products! And although much has changed since 1973, the need to look simultaneously at energy and fulfilling employment is as relevant as ever. I would love to see this approach expanding to other industries and objects, such as buildings and mobile devices. And I would love to know more about possible connections between professional car repair and amateur repair cafes.

Mariko McTier

Co-Founder & Representative Director, Social Innovation Japan
Co-Founder mymizu

Creating New Value Chains Prize

One of the biggest challenges in creating a truly circular economy is being able to retrieve materials and products once they are in the hands of the consumer, especially when you are dealing with global supply chains and huge regional differences in recycling capacity. I chose this project for the scale of ambition, its commitment to solving a waste problem through the power of business and partnerships, the focus on redesigning the system that is currently producing waste, and because I believe it demonstrates how even a small-medium sized business can have a global impact on reducing waste. I would love to see if Kaiho Industry could take their expertise in retrieving and recycling Auto parts and feed back to the manufacturers in order to improve the parts' durability, recyclability, and the systems that facilitate their recycling.

Winners