Four Asian companies, Japan-based Panasonic Corp., Dowa Holdings Co. and Sumitomo Corp., and China-based Hangzhou DADI Environmental Protection Engineering Co. Ltd., have reached an agreement to form a jointly-held company in China called Panasonic DADI DOWA Summit Recycling Hangzhou Co., Ltd. The company will process home appliances and electronics.
The decision to open an electronics recycling firm follows the enforcement of an ordinance in China, which began Jan. 1, 2011, on the collection, processing, and management of waste electrical and electronic products. The aim of the ordinance, which applies to five types of electrical and electronic products, is to promote environmentally safe processing of obsolete electronics. The five types of electronics include televisions, refrigerators, washing machines, air conditioners and personal computers.
The new recycling company will collect and disassemble used home appliances and electronics and sell recovered materials in compliance with the Chinese ordinance and aims to be a model company for China with advanced recycling technologies. The new facility is expected to be operational by spring 2012. According to Panasonic will be the first Japanese consumer electronics manufacturer to enter the Chinese recycling market.
Under the plan worked out among the four companies, the companies will have the following roles:
Panasonic Group will provide its recycling technologies and equipment developed through its recycling business in Japan. In addition, the company will be responsible for gathering information on equipment procurement, production management and improvement of working environment including implementation of so-called "Five S" concept for workplace organization: Sort, Set in order, Shine or Clean, Standardize and Sustain or Discipline.
Hangzhou DADI, which has been engaged in collection, processing and general utilization of solid industrial waste, will cover information gathering on the related laws and regulations and the recycling market including collection and recycling-related companies, as well as negotiations with the government authorities to obtain approvals and permits. The company will also build systems and routes enabling to collect enough volume of waste home appliances to ensure business viability.
DOWA Group, which supplies materials and services in a broad range of businesses including environmental management and recycling, will operate the new recycling plant. The company will also gather information on equipment procurement.
Sumitomo Corp. will collect information on the global recycling industry as well as market trends and prices that will help sell recycled materials.