Amada Establishes a Machine Resource Circulation Model

Amada Corporation (Isehara City, Kanagawa Prefecture; President and CEO: Takashi Yamanashi) will fully launch, from June 2026, a proprietary resource circulation (circular economy) initiative for its sheet metal processing machinery reverse business. Leveraging its strength in direct sales and direct service systems, the company will complete a closed-loop system from machine collection to resource recovery and reacquisition.

As part of its 'Medium-Term Management Plan 2030' launched in FY2026, Amada has identified the circular economy as a materiality (key priority) in its sustainability strategy. This initiative marks the first time in the metal processing machinery industry that a domestic circular collaboration system has been established together with resource recycling partners and electric furnace steel manufacturers.

Amada has long promoted a reverse business model, refurbishing machines collected through trade-ins and reselling them as high-quality used machines. These refurbished machines are trusted by many customers due to reliable maintenance support from Amada’s high-quality service network.

This new initiative further enhances the mechanism for resource recovery of collected machines. Previously, outdated machines that were difficult to maintain were processed as recyclable resources to limit their re-entry into the market. Going forward, by circulating these materials back into its own products as raw materials, Amada will maximize the resource value of these machines. The first year aims to procure approximately 1,000 tons of iron resources annually.

Specifically, machines deemed unviable for regeneration under Amada’s responsibility will be dismantled and sorted by partner companies, then regenerated into high-quality steel at electric arc furnaces operated by electric furnace steel manufacturers. By reacquiring this recycled steel as manufacturing material for its own products, Amada has established a domestic circulation system that returns its own resources back into its own products.

Furthermore, Amada will progressively expand this model to machines beyond sheet metal processing equipment and advance discussions on resource recovery and circulation for non-ferrous metals and peripheral devices, promoting sustainable manufacturing across the entire Amada Group.

Going forward, Amada will continue to contribute to effective resource utilization and sustainable customer growth through sustainability management that considers the full lifecycle of products—from birth to regeneration.

Overview of the Resource Circulation Model Implementation

Start Date: June 2026

Initial Coverage Area: Starting with collected machines from the Greater Tokyo and Tokai regions (to be expanded progressively)

First-Year Procurement Volume: Approximately 1,000 tons annually (iron resources)

*Information provided is subject to change without notice