Expansion of the Resource Recovery Business

「In February 2026, we launched a new polyolefin recycling business and completed preparations for the mass production of feedstock for oil-based chemical recycling and materials for mechanical recycling.」

「In conjunction with Mitsubishi Chemical's launch of its oil-based chemical recycling business, we will proceed with supplying polyolefin waste plastics as feedstock. As efforts to promote resource circulation have accelerated across society, inquiries about our Group's expertise in resource circulation have increased. We will advance the development of recycling technologies in collaboration with customers and work to increase revenue.」

「In the materials business, inquiries for our core product, "Refine Powder," a recycled polyvinyl chloride compound, remained strong, as in the previous fiscal year. We are also participating in the Japan Recycled Carpet Association, established on 1 November 2023, and working to further promote recycled carpets.」

「We are also accelerating efforts to collaborate with external companies and license our technologies, both in Japan and overseas, but licensing-related revenue planned for the current fiscal year has been deferred to the following fiscal year or later.」

「Inquiries about licensing our automotive airbag fabric recycling technology and discarded fishing-net recycling technology to overseas companies, as well as providing technical guidance to licensees, remain strong, expanding our revenue opportunities. However, projects are taking longer to progress than initially planned, delaying their contribution to revenue and profit.」

「In addition, we expect our automotive airbag fabric recycling technology and discarded fishing-net recycling technology to contribute to revenue and profit through licensing to overseas companies and technical guidance for licensees. Inquiries about our business expertise have increased, expanding our revenue opportunities.」

「In the materials business, inquiries for our core product, "Refine Powder," a recycled polyvinyl chloride compound, remained strong, as in the previous fiscal year. Following the establishment of the Japan Recycled Carpet Association on 1 November 2023, we joined the association and will work to further promote recycled carpets.」

「We are also accelerating efforts in chemical recycling, the creation of new commercial channels for waste-plastics recycling, and waste-plastics recycling as a new business area.」

「In addition, licensing our automotive airbag fabric recycling technology to overseas companies and providing consulting services contributed to revenue and profit. Inquiries about our business expertise have increased, expanding our revenue opportunities.」

「The volume of discarded carpet tiles accepted and processed has remained firm, reflecting an increase in restoration work, and inquiries have increased for "Refine Powder," a recycled polyvinyl chloride compound made from discarded carpet tiles.」

「We are also accelerating efforts in waste-plastics recycling as a new business area, including the commercialisation of chemical recycling and the creation of new commercial channels for waste-plastics recycling.」

「We are expanding into the construction, automotive, steel and apparel industries by manufacturing recycled nylon resin using low-cost, high-purity separation technology and steelmaking auxiliary materials for steel manufacturers using mixed compression-moulding technology. We are also expanding our solutions business, which provides value to customers through consulting, sales of production and processing equipment, and licensing, drawing on the basic technologies, production technologies and marketing expertise we have developed in recycling waste materials.」

「The solutions business contributed to earnings through revenue from multiple solution projects, including the commercialisation of material recycling for discarded fishing nets in Hokkaido.」

「More recently, we have expanded the scope of our recycling business to include the production and sale of steelmaking auxiliary materials for use at steelworks, using nylon recovered from carpet tiles; the recycling of used fishing nets and factory offcuts from airbags for sale as recycled nylon resin products; and a solutions business that sells waste-treatment equipment and provides consulting to resolve waste-treatment issues.」