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Future Article I Contribution to Improving Environments in Asian Countries through Eco-friendly Recycling Business

Leader's Voice

President Yoshito Koga

DOWA Eco-System Co., Ltd.
President Yoshito Koga

DOWA Eco-System is committed to contributing to environmental improvement in Asia by promoting expansion of business fields and operations not only in Japan but also in Asia.

In China we will start home electrical appliance and electronics recycling business in addition to our precious metal recycling business in Suzhou. We are now preparing for a new joint venture in Tianjin to handle home appliance and electronics recycling. We are also considering deploying a comprehensive metal recycling business like our business model in Suzhou, by expanding into northern, southern and inland areas of China.

In Southeast Asia, we would like to deploy soil remediation and metal recycling businesses, following the waste disposal company of MAEH that recently has joined the DOWA group.

At the midst of dramatic economic growth in Asian countries, those countries are confronted with such problems as environmental destruction, impact on living creatures and ecology and health hazards caused by illegal dumping and improper handling of waste. Leveraging on our technologies and know-how's we have cultivated so far, we would like to contribute to environmental improvement in Asian countries. We believe it important to develop and exchange human resources that can build an international recycling network in Asian Territory including Japan, China and Southeastern Asian countries.

~Returning the environment to the people of Asia~

Economic Development and Resource and Environmental Issues in Asia

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As a result of rapid economic growth and increase of population, Asia is now growing to be a large economic zone with a huge demand potential beyond just a position of manufacturing factories of the developed countries.

In conjunction with economic development, demand for resources and amount of waste are increasing, which is raising serious and complex problems in Asia. Although increasing demand for resources promotes recycling for fear of price increase, monopolization and depletion of resources, legal systems on collection, management and processing of waste is not yet fully put in place in Asia.

There are also issues associated with technologies for efficiently and safely extracting usable materials from waste and with methodologies to properly manage risks.

Some of the products that are exported from developed countries or manufactured in Asia are left abandoned after use, or only some easily separable valuable resources such as gold or copper are extracted by hand and other resources are piled up in the field. Some of the waste contain heavy metal such as lead. Unless they are properly managed, they may become a serious social problem, causing health hazards and environmental pollution. Besides that, useful resources may not be collected and be left unused. Proper treatment/recycling of waste is a pressing issue to Japanese and other foreign leading companies, and it is also an serious issue from a supply chain perspective.

Deploying Operations in Asia

DOWA Eco-System is committed to a broad range of environmental business activities as a company that responds to environmental risks in a comprehensive manner by offering consulting services focusing on recycling, waste processing and soil remediation.

DOWA acquired Modern Asia Environmental Holdings, Inc. (MAEH) that deploys waste processing businesses at four operational bases in three countries in Asia: one in Singapore, two in Thailand and one in Indonesia. Those four bases comply with ISO 9001 and 14001 and other standards such as US-EPA, and they are maintained using the same high technology as those of Japanese processing facilities.

We decided to operate a home appliance recycling facility in our metal recycling factory in Suzhou and also to establish a new company intended for recycling used home electric and electronic appliances in Tianjin according to the enforcement of the ordinance on collection, processing and management of used home electric and electronic appliances in January 2011 for the purpose of proper processing of used home electric and electronic appliances. We also have a sales office in Taiwan. In the Philippines, we are engaged in the CDM business to collect and destroy methane gas as part of our efforts to fight against global warming.

Japan has not only a world's top-notch metal smelting, refining and eco-friendly technology, but also has companies that conduct business under very strict regulations within an established legal system. We believe that building a resource recycling network in Asia in the future and promoting Japanese eco-friendly technologies and ideas in Asia in a way tailored to local needs will enable effective resource collection, recycling and prevention of environmental pollution. We also believe we can contribute to resolving global issues such as measures for climate change and biodiversity, by further promoting environmental improvement in Asia.

DOWA Eco-System strives to reduce environmental load and properly manage environmental risks in Asia, by deploying environmentally oriented businesses abroad, based on our technologies and achievements we have cultivated and made so far in Japan.

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Complete Recycling Business in China

DOWA aims at realizing a sustainable society with less environmental load on a global basis through our cutting-edge recycling technology, global recycling network and secure, safe and trustful service based on proper processing by contributing to "building resource-saving, eco-friendly society stated in China's 11th Five-year Plan and helping China to be a leading recycling country.

In 2003 DOWA Eco-System established DOWA Suzhou, an eco-friendly, recycling company in Suzhou, Chiangsu, China as the first Japanese company and has been promoting metal recycling business since then in both hydrometallurgical and pyrometallurgical processes. The company mainly collects scrap metals from Japanese companies in Chiangsu and extracts the gold, silver and PGM (platinum group metals).

DOWA Suzhou conducts business in a proper and transparent manner, using Japanese technology and complying with Japanese standards. The company endeavors to reduce load on environments as much as possible by introducing equipment and facilities to prevent air pollution and proper effluent treatment facilities in its processes.

The ordinance on collection, processing and management of used home electric and electronic appliances will be enforced in January 2011. This is expected to create demand for collecting and disassembling about 100 million used home electric and electronic appliances per year.

In addition to the total recycling business in Suzhou, we decided to establish a new company intended to recycle used home electric and electronic appliances in Tianjin in partnership with Sumitomo Corporation in March 2010.

It is expected to spur demand for collecting and processing used home electric and electronic appliances in China as a result of broader use of electric and electronic products and their rapid replacement with higher quality products, driven by its recent economic growth and also from the perspective to secure resources.
We will further strive to aggressively deploy home electric and electronic appliance recycling businesses all over China and also promote environmental and recycling businesses in other parts of Asian.

Deploying Japanese Environmental and Recycling Technologies all over China

Voice

劉克俊

DOWA Suzhou Liu Kejun

The Law on Recycling of Home Electric and Electronic Appliances will be officially enforced in January 2011. DOWA Suzhou started recycling of used home electric and electronic appliances in September 2009. Our strength is that we can properly process TV substrates and CFC in our existing hydrometallurgical and pyrometallurgical processing plants. Leveraging on that strength, we would like to contribute to building resource recycling society in China.

Overseas Office Initiatives -Hiroyuki, Ito, PPLi, Indonesia-

PPLi Hiroyuki Itoh

PPLi is a waste processing company founded in 1994 and located in Cileungsi in Bogor Province, 50 km south of Jakarta, the capital of Indonesia. There we have a final disposal facility complying with international standards under a strict control from collection, transportation, storage, intermediate processing to final processing.

PPLi Hiroyuki Itoh

About Environments in Indonesia

Indonesia is a country rich with natural resources and you can see oil drilling and mining all over the country. As a result of the revised environmental law enforced in 2009, which incorporated provisions related to soil pollution, waste are properly processed under those strict provisions in Indonesia. The demand for soil remediation and waste processing are increasing from Japanese companies and oil companies in Indonesia.

The present government aims at double income and economic growth rate of 7.7% by 2014. Increasing number of Indonesian people use automobiles, motorcycles, PCs and mobile phones. I'm sure they will be more aware of proper processing and recycling of wastes.

I joined DOWA with an ambition to make environmental reclamation my life work. With this always in mind, I would like to help improve environments in this country together with Indonesian people who are very curious about everything.

Our CSR Initiatives

PPLi has been committed to conduct business considering local communities as the only operator of proper processing of harmful waste in Indonesia. We have 330 employees now, about 40% of which are from local communities of Nambo Village and most of them are very capable local staff members, who share the philosophy of DOWA.

We also devote ourselves to CSR (Corporate Social Responsibility) activities, focusing on promotion of sports and educational support in partnership with local schools for local children.

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Examples of PPLi CSR Activities

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[Environmental Conservation]
Aimed at raising environmental awareness, we continue to plant saplings in cooperation with local schools.

[Education]

Aimed at supporting education for the next generation, we established a scholarship system; accept students from local institutes of technology for internship and sends teachers to three elementary schools.

[Health Services]
We built and operate medical clinics and also support medical and hygiene activities for children.

[Culture and Religion]
We recognize the importance of cultural and religious aspects in local people's life. We make a donation and offer support for local traditional events and construction of religious facilities such as mosques.


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