Daiei Kankyo will take over the recycled PET businesses of Torshin and others and proceed with making them subsidiaries. The businesses, covering the integrated production of PET flakes and pellets and recycled sheets, will continue under Daiei Kankyo's sponsorship while undergoing civil rehabilitation proceedings.
Daiei Kankyo will take over the recycled PET business held by Torshin and Reko and make it a subsidiary of the Daiei Kankyo Group. The business covers the manufacture and sale of PET flakes, the manufacture of pellets, and the manufacture of recycled sheets using these materials.
Torshin has accumulated PET recycling technology since its founding in 1992, while Reko has expertise in processing recycled sheets into finished products. Through this transaction, Daiei Kankyo will add PET-related technology to its capabilities and strengthen a value chain that covers everything from waste collection through to the manufacture of finished products.
Following amendments to the Act on Promotion of Effective Utilization of Resources in April 2026, the preparation of recycled-material usage plans and progress reporting became mandatory, driving increased demand for recycling across the industry. Daiei Kankyo has indicated that in May 2026 it plans to expand its M&A investment allocation to ¥45 billion, approximately five times its previous level.
The transaction involves Daiei Kankyo continuing the businesses of Torshin and Reko as their sponsor while they apply for civil rehabilitation proceedings. It is expected to strengthen the company's resource-circulation capabilities, including through the full-scale operation of a plastic recycling facility in Sakai City.