Sanko Saitama: To Become the Recycling Company Who Supports the Present Progressive RecycleMarket
2014/01/22Sanko Saitama Co., Ltd. (Sugito-machi, Kitakatsushika-gun, Saitama-President Shuichi Suzuki) has opened up new business by rapidly coping with the times and the market changes. This is also understood by the slogan of all companies of the Kawashima group (Hamamatsu-shi, Shizuoka) where this company belongs to, that is "Challenge Right Now". Sanko Saitama, who thinks the profit maximization as the best quality, has applied thoroughly the principle of action by carrying out immediately all things that now it can do.
Sanko Saitama started as the factory which produced secondary aluminium alloy in 1992. However, in the 2000s, domestic production of secondary aluminium alloy decreased year by year due to the expansion of overseas production of car manufacturers and the increase in import alloy lump. About the selling price of alloy such as ADC12, rigidity of lower price was strengthened by the pressure on price cut from the major car manufacturers in the past. Increase in imported Chinese ADC12 still takes part there, and the raise in product price has been put in a difficult situation. However, the raw materials of aluminum scrap started at ever‐high price, some due to the competition in buying with other manufacturers. The profit rate of the alloy manufacturers continued decreasing as the high raw materials-cheap product became the biggest problem in secondary aluminium alloy industry.
And domestic secondary aluminium alloy suffered a record-demand decrease from the same year until the summer of 2009 with the appearance that Lehman shock of the autumn of 2008 giving the finishing stroke. Furthermore, domestic aluminum alloy demand widely faced resistless demand by the 2011 eastern Japan great earthquake disaster, too. It had come to the limit.
Sanko Saitama stopped the production of secondary alloy which continued unprofitability immediately after Lehman shock of 2008. Thereafter, it diverted a rotary furnace as a recycling furnace, but that was stopped in 2011, too. It is said that two of smelting furnaces have completely stopped now and are looking for their buyer within and outside the country.
Even in such situation, the trading volume of scraps of Sanko Saitama has not decreased and rather increased. And the profit is also improved by having stopped the alloy production. The trading quantity of aluminum scrap of Sanko Saitama is 2,000 tons per month, for copper, stainless steel, etc is 500 tons, and the sale of secondary alloy of the group is 500 tons. Not as alloy manufacturer, but it is strengthening characteristics as scrap dealer and trader.
The details of 2,000 tons of aluminum scraps are as follows. Sash scrap is 1,000 tons, UBC is 800 tons and the other is 200 tons. Above all, the sash scrap is developing the perpendicular recycling of sash to sash, mechanically managing the purchased sash scrap, doing X-ray examination, and at last performing stable supply as 100% sash raw materials by hand-sorting to the major company sash maker (LIXIL). This had also worked on in other factory of Kawashima group, and in the field of aluminum wheel as well, but it is the characteristic of the Kawashima group that plans horizontal integration by using the group organizability and provides higher added value of recycling with perpendicular recycling. Even in the recycling of PS board (printed board), it develops PStoPS perpendicular recycling with the collaboration of Fujicolor and Kawashima group.
According to President Suzuki, the recycling system of sash to sash introduces know-how even to the old Korean company, and there is the company which actually invested several hundred millions of yen to prepare facilities.
As a characteristic of Sanko Saitama, there's something to be conversant with Korean market.
The Japanese aluminum scrap has been exported to Korea all together since 2009, and its volume has already reached nearly 60,000 tons until November 2013 last year. Sanko Saitama is taking the lead, and once it exported monthly 2,000 tons of aluminum scraps to Korea.
It is said that even today it has exported monthly 300-500 tons of UBC for Korean NOVELISkorea.
Scrap has already circulated all over the world as international commodity. Sanko Saitama actively gets involved in every recycled resources within and outside the country in future with "Maximizing profit" as a theme, judging if a merit is got mutually. One case is the recycling business in Indonesia. Sanko Saitama has appeared in Indonesia for two and a half years. Unlike the advanced countries such as Japan, Indonesia with no system for the maintenance of recycling market law and order, seemed incomputable difficulties of having a pain in the stomach happened. By advancing with the mind of ‘challenge right now’, today it is recognized by the local scrap wholesale dealers little by little, and has established steadily.