Construction of a Closed-loop Recycling System:

Case Study on Recycled Plastics Derived from Home Appliances

Abstract

This study aims to clarify the efforts of home appliance recycling by home appliance manufacturers and in particular, their entry into the recycled plastics business. It compares the achievement points of each company. In addition, this paper examines the reasons some companies are especially advanced in their recycling business initiatives.

The Law for the Recycling of Specified Kinds of Home Appliances (“Home Appliances Recycling Law”), enforced in April 2001, promotes consumer disposal of end-of-life appliances properly by having retailers collect and deliver them to manufacturers, who recycle them according to their type (air conditioners, television sets, refrigerators, and washing machines). And now, the system has significant achievements especially the plastic recycling has largely contributed to the improvement of recycling rate. This paper is to study the efforts of manufacturers that have produced the results of this recycled resource.

In conclusion, in this paper, “recycling” refers to the home appliance recycling business; “rematerialized” means recycled plastic business. Seven leading manufacturers have established their own recycle plant, and continue to invest R&D and equipment. There are three companies entering the re-materialized stage, in other words achieving closed-loop recycling. It is Mitsubishi Electric, Panasonic and Hitachi. Both Mitsubishi Electric and Panasonic also have the most advanced technology, but Mitsubishi Electric was the only one able to realize a large recycled plastic business. There are two reasons for Mitsubishi Electric's excellence: ①by securing the scale of excellent home appliance recycling facilities and material enterprises and ②trading at relative prices that fluctuate less than the market price on the premise of continuous trading.