Material Circulation Business

Updating Factory for Material Circulation

In Japan, waste plastic treatment still relies heavily on incineration, making it difficult to secure a stable supply of high quality recycled material. In response, we operate one of the largest plastic mechanical recycling plants in the country to produce high quality recycled containers and packaging materials (PCR). Drawing on the proprietary development technologies and R&D capabilities built through our material development business, we have not only solved long standing issues with recycled containers and packaging materials, such as odor and loss of physical properties, but for some grades have also achieved durability comparable to or greater than PIR and virgin plastic. We also support the trading of high quality recycled material in a way that ensures both quality and transparency. This promotes secure recycled material procurement for companies that are unwilling to compromise on quality.

Business Environment and Challenges

As the world moves toward a circular economy, Japan generates 7.69 million tons of waste plastic each year, but only 22 percent is mechanically recycled and around 70 percent is incinerated. In line with tighter international regulations and domestic policies, demand is growing for material circulation models that use mechanical recycling to reduce CO₂ emissions and recover resources. In the meantime, the domestic recycled plastic market is expected to reach about 350 billion yen by 2035. However, stable-quality PIR (post industrial recycled plastics) is in short supply, driving up prices and making procurement difficult, while low-cost recycled containers and packaging materials (PCR) have faced problems with quality variation, odor, and insufficient durability. Using proprietary technologies and process improvements developed through our core material development business, we have dramatically improved the odor and strength issues that have historically affected PCR.

Most plastics are burned, mechanical recycling is essential
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Recycled Plastic Market Size in Japan

Recycling Plant Operation

Since 2023, we have been operating a plant that uses advanced near infrared automatic sorting to separate post consumer household plastic containers and packaging (PCR) by resin type and mechanically recycle them into high quality recycled containers and packaging materials. Leveraging proprietary material development technologies and R&D capabilities, we have resolved issues such as odor, loss of physical properties, and insufficient durability, enabling a stable supply of high quality, price competitive recycled material.

Features of Yokosuka circular factory

・Large-scale plant for automatically sorting and recycling general-purpose plastics by resin type
Working with a major overseas sorting equipment maker, we use near infrared detection and a proprietary sorting program, including automatic LIMEX only sorting.

・One of Japan's largest plastic material recycling plants
With about 40,000 tons of annual processing capacity and 24,000 tons of recycled pellets, it is among Japans largest plastic mechanical recycling facilities.

・ISO 9001 certified quality management at the Yokosuka circular factory
The Yokosuka circular factory is certified under the international quality management standard ISO 9001, enabling us to supply high quality recycled material stably under a strict management system .

Strengthening cooperation with Resource Recycling Council

TBM serves as the secretariat of the Resource Recycling Council, a general incorporated association.
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The council works with major corporations, startups, financial institutions, experts, local governments, and other key stakeholders in material circulation, with more than 2,400 members participating.
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To help realize a circular economy, it promotes three main activities:
(1) policy proposals
(2) social demonstration and implementation
(3) sharing and dissemination of knowledge.

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