12-Company Consortium Selected for Japan's Ministry of the Environment FS Project for Establishing a Stable Supply System of Recycled Plastics for Automobiles

June 11, 2026

J-CIRCULARS Inc.
Taibo Co., Ltd.
Axislia Consulting Co., Ltd.
Ishizuka Chemical Industry Co., Ltd.
Isono Co., Ltd.
Ohmi Bussan Co., Ltd.
Kaneyoshi Co., Ltd.
Resource Circulation Systems Co., Ltd.
Taiei Environment Co., Ltd.
Toei Co., Ltd.
BIPROGY Inc.
Yagikuma Co., Ltd.

12-Company Consortium Selected for Ministry of the Environment's "FY2025 Supplementary Budget FS Project for Establishing a Stable Supply System of Recycled Plastics for Automobiles, etc."
~ Commencement of Feasibility Study for a Stable Supply Model ~

[Background]
In the automotive industry, demand for recycled plastics is rapidly expanding due to the "ELV Regulation Proposal in Europe" and increasing demands for sustainability. Meanwhile, in Japan, issues such as supply shortages, quality variability, cost competitiveness, and ensuring traceability have become apparent. Furthermore, the projected supply of recycled plastics for automobiles in 2041 is estimated at approximately 69,000 to 95,000 tons, which is significantly short of the target of 200,000 tons. Given these challenges, collaboration across the entire supply chain, from resource collection to recycled material manufacturing, logistics, and end-users, is required.

[Overview]
This project will conduct a comprehensive study of the entire supply chain to determine whether waste plastics from diverse sources, including automotive, container packaging, home appliances, and industrial waste, can be aggregated over a wide area to secure the quality and supply volume required for the automotive industry.

■FS Overview
1. Implementation Period: May 15, 2026 – February 26, 2027
2. Target Area: Chubu Region (Aichi Prefecture, Mie Prefecture area)
3. Main Verification Items:
- Understanding the procurement potential of recycled resources and raw materials
- Examination of functions, equipment, and processing flow of recycled plastic aggregation hubs
- Study of quality assurance and material design methods for recycled raw materials
- Examination of traceability and information management infrastructure using digital technology
- Study of logistics efficiency
- Examination of business scheme and viability
4. Each company's area of responsibility and main role
5. Vision of this project (Features of this FS):
① Wide-area resource aggregation model integrating diverse sources
By aggregating diverse waste plastics from multiple sources such as automobiles, container packaging, home appliances, and industrial waste over a wide area and strategically combining them, we aim for large-volume and stable supply of recycled plastics for automobiles.
② Market-oriented model based on transaction track record with the automotive industry
Companies with transaction experience with automotive OEMs and parts manufacturers will participate, conducting market-oriented studies based on quality requirements and applications. We will examine the feasibility of use in automotive applications through optimal blending and quality control of multi-source raw materials.
③ Implementation-oriented consortium integrating the entire supply chain and visualizing the overall picture
By involving diverse stakeholders such as waste generators/collectors, recycled material manufacturers/compounders, end-users like automotive parts manufacturers, logistics companies, digital service providers, and local governments, we will conduct model analysis of the entire supply chain structure and commercial flow.
④ Advanced resource circulation model utilizing digital technology and material design
By systematizing physical property data of multi-source raw materials through AI-based formulation design and data platforms, we aim for quality homogenization and stable supply through optimal blending. Furthermore, digital management of origin and quality information will also consider future compliance with DPP.
⑤ Resource circulation model connecting citizens' daily lives with the manufacturing industry
We will examine the aggregation of plastic resources discharged by citizens and their utilization in automotive parts. We aim to build a resource circulation model that connects citizens' lives with the manufacturing industry and promote understanding and awareness change regarding resource circulation.

Note 1: European ELV Regulation Proposal
In July 2023, the European Commission published a "Proposal for a Regulation on Circularity Requirements for Vehicle Design and Management of End-of-Life Vehicles" amending the current ELV Directive. The proposal reached a provisional agreement between the EU Council and the European Parliament on December 12, 2025. It includes mandatory minimum recycled plastic (post-consumer) content in vehicles (15% within 6 years of enforcement, 25% within 10 years, of which the proportion from end-of-life vehicles was reduced from the original European Commission proposal of 25% to 20%).

Note 2: DPP
Stands for Digital Product Passport. A system for digitally managing and sharing information on product raw materials, environmental performance, etc.

■Related Links
Ministry of the Environment FY2025 Supplementary Budget: Results of Selection for FS Project for Establishing a Stable Supply System of Recycled Plastics for Automobiles, etc. https://www.env.go.jp/press/press_04461.html

■Participating Company Overviews
〇Taibo Co., Ltd. URL: https://www.taibo.co.jp/
Founded in 1967. Develops a consistent business from recycled raw material production to compounding and molded product manufacturing, supplying recycled plastics for a wide range of applications including automotive parts, building materials, and landscape materials.
○Axislia Consulting Co., Ltd. URL: https://www.axislia-consulting.com/
Provides consulting services for value creation sustainability and plastic resource circulation in the automotive and home appliance sectors. Leveraging expertise in regulatory compliance, arterial/venous industry collaboration, and the automotive industry to support new business development in the resource circulation field.
〇Ishizuka Chemical Industry Co., Ltd. URL: https://icskk.com/
Operates compounding, trading, and recycling businesses. Contributes to supply chain optimization through integrated capabilities from resin procurement to recycled material manufacturing and sales, backed by 70 years of accumulated technology.
〇Isono Co., Ltd. URL: http://www.isono21.co.jp/
Focuses on the collection, sorting, and recycling of used plastic parts, primarily in the automotive industry, providing recycled materials with quality close to virgin materials through its unique quality control system.
〇Ohmi Bussan Co., Ltd. URL: https://ohmi-bussan.co.jp/
Operates a consistent business from waste plastic collection and sorting to the manufacturing and sale of recycled plastic raw materials. Also focuses on industry-academia-government collaboration and R&D to supply high-quality recycled materials.
〇Kaneyoshi Co., Ltd. URL: https://www.kaneyoshi.info/
Leverages its strength in a 3PL system where transportation, logistics, and inspection technology departments collaborate, providing optimal logistics services centered on automotive parts and industrial products, primarily in the Tokai area and nationwide.
〇J-CIRCULARS Inc. URL: https://www.j-circulars.co.jp/
Engages in waste collection, transportation, intermediate treatment, and recycling, as well as consulting and data utilization support for resource circulation, working towards the realization of a circular economy.
〇Resource Circulation Systems Co., Ltd. URL: https://rcs-dx.jp/
Provides DX support through digitalization of business processes and data utilization, mainly for the waste and recycling industry. Supports productivity improvement across the industry with "offensive and defensive DX" in the resource circulation field.