Japan's First Far Eastern Ishizuka Green PET Corporation dominates the recycled polyester market

        For the PET recycling industry, the first thing is to obtain raw materials, especially the high-quality PET bottle bricks recycled from Japanese households, which is the focus of the military. Far Eastern Ishizuka Green PET Corporation Green PET Co., Ltd. won the largest actual scalar of a single manufacturer in the history of Japan in one fell swoop with careful strategy, and threw a shock in the market. This issue of "cover story" will show you how to overcome the barriers and lay a new milestone at the time of ten years of military service!

        R-PET innovative business model starts green economy

                Since the United Nations released the 2030 Sustainability Development Goals (SDGs), more and more enterprises have joined the ranks of net zero carbon emissions and set specific sustainability goals and timelines. Nike, Adidas and other major international famous brands have successively announced the use of R-PET as the packaging material of their products. Coca-Cola has also put forward the vision of "World Without Waste". As the leader of polyester materials, Far Eastern New Century Corporation, as early as 2012, has seen the trend of global sustainability development, With the Japanese packaging manufacturer Ishizuka Niko Co., Ltd., we jointly founded Far Eastern Ishizuka Green PET Corporation Green PET Co., Ltd. (FIGP) to lay out the recycled economy.

        Far Eastern Ishizuka Green PET Corporation is not only the largest PET bottle recycling company in Japan, but also can produce clean regenerated ester particles (R-PET) with recycled PET as raw material through a series of procedures such as separation, cleaning, high-temperature melting and decontamination. In 2015, the first factory was commercialized in Kandong Ibaraki County, and now it can handle 120000 tons of PET bottle bricks and R-PET ester granules with an annual output of 85000 tons. It is used for beverage manufacturers and non-beverage manufacturers as food-grade packaging materials and fiber. In response to the demand of international brand customers, the Jilu factory will be built in Hyogo County, Kansai, in 2020. It is expected to be put into operation in 2023. At that time, the PET bottle bricks processed each year will increase by 150000 tons, and the production of R-PET ester particles will increase by 100000 tons.

        The battle for supremacy of high-quality bottle bricks is full of dangers and obstacles

        To stand firm in the industry, in addition to reaching a certain scale of production capacity, the quality and cost of raw materials are also the key. In Japan, there are about 600000 tons of PET bottle bottles every year. In addition to the bottles recycled by stores or vending machines, another large amount is recycled by ordinary households. Because Japanese families are used to washing bottles and cans, removing labels and caps for recycling, the discharged PET bottle bricks are of good quality and are also the first choice of major R-PET manufacturers. However, these high-quality bottle bricks must be obtained through the bidding of the Japan Container and Packaging Recycling Association (JCPRA). Therefore, the annual bid winning becomes the survival battle of recycling manufacturers.

        When JCPRA evaluates the bidding volume, it is mainly based on three major items: "raw material storage capacity", "product sales capacity" and "production capacity". However, the volume of bottle bricks is huge and takes up a lot of space, and the calculation method must be in accordance with JCPRA's regulations. Therefore, it is very difficult for manufacturers to obtain the ideal data recognized by JCPRA on "raw material storage capacity". On the other hand, Far Eastern Ishizuka Green PET Corporation, the largest R-PET manufacturer in Japan, is also required to provide more audit documents than ordinary small factories, which can be said to be even more difficult.

        Two strategies to release doubts

        Far Eastern Ishizuka Green PET Corporation, on the one hand, made every effort to provide complete information to meet the requirements of JCPRA, on the other hand, decided to start from the source and try to promote the revision of the "raw material storage capacity" application provisions to break through the restrictions.

        In fact, since the construction of Jilu No. 2 Plant started in 2020, Far Eastern Ishizuka Green PET Corporation has actively proposed to JCPRA, hoping that the neighboring areas of the same county and city that comply with local laws and regulations can also be included in the calculation of bottle brick storage capacity. However, JCPRA considers management, local regulations, fire regulations and other issues, and has a negative attitude towards the revision of regulations. Far Eastern Ishizuka Green PET Corporation then formulated two strategies to take the initiative and resolve doubts one by one.

                After the unremitting efforts of Far Eastern Ishizuka Green PET Corporation, JCPRA finally included in the application provisions "the neighboring areas of the same county and city can also be included in the calculation of the storage capacity of bottle bricks in accordance with local regulations" in June 2021. When the manufacturers have not understood the intention of the new regulations, Far Eastern Ishizuka Green PET Corporation has taken the lead in the industry, prepared the relevant data of the external storage warehouse and the certificate of compliance with the regulations, and quickly submitted the application for registration.

        Half a year later, Far Eastern Ishizuka Green PET Corporation won the bidding qualification of 110000 tons, which is equivalent to half of all bricks in JCPRA and all bricks in Kanto. Faced with the victory of the first step, Far Eastern Ishizuka Green PET Corporation was calm and more strict in the control of bidding data, to avoid vigilance against the palm of the hand, and to bid at a high price. Finally, it successfully stood out in the bidding and achieved the largest actual bid volume of 46483 tons (half a year) for a single manufacturer in the history of Japan, which is equivalent to 90% of the household recycling volume in Kanto and half of the household recycling volume in Japan. This result shocked the industry. The disorderly competitors offered high prices to grab bricks everywhere. Far Eastern Ishizuka Green PET Corporation opened the gap with its competitors with high price difference, and established a long-term competitive advantage in the R-PET industry.

        Sales and revenue are bright and bright in the future

        After two years of multi-party layout, Far Eastern Ishizuka Green PET Corporation has successfully created the largest and actual scale of proud achievements of a single manufacturer in the history of Japan. High-quality bottle bricks not only drive the production rate of bottle chips and reduce the equipment failure rate, but also under the comprehensive effect of production and sales of the parent company, Far Eastern New Century Corporation, the sales volume and revenue grow simultaneously, and the profit performance is bright. In the future, Far Eastern Ishizuka Green PET Corporation will face the next decade with more refreshing business models!

                #