Resource Circulation

Production Technology Innovation At the Plastic Group’s flagship Moriyama Factory, we mainly produce the shrink films used for labels on PET beverage and detergent containers.
In 2019, around 1,200 tons of production scraps were generated during the manufacturing process, much of which was disposed of.
Targeting the achievement of zero production scraps, what we refer to as zero waste, we therefore focused on recycling raw materials, introduced new recycling equipment, and increased our efforts to reduce production scraps.
To expand these activities beyond the Moriyama Factory to two other domestic and three overseas factories, repeated online zero waste meetings were held.
As a result, we were able to shrink production scraps to 400 tons in FY2023.
In parallel with efforts to achieve zero waste in FY2024, the Moriyama Factory is promoting PIR^*1, a process by which client-generated production scraps are collected and turned back into raw materials.
Looking ahead, we will also proceed with PCR^*2, which involves the collection of waste plastic within cities with the cooperation of our customers, local governments, and local communities.
As part of our efforts to automate the lines installed within the Circular Factory™, we created a system by which a new line was arranged alongside an existing line and workers from the old line respond only in the event of an operational abnormality.
Also, by automating the new line’s upstream raw materials intake process and downstream product packaging process, a virtually unmanned line has been completed.
The new line is also equipped with a function that automatically curbs the output of raw materials when manufacturing issues occur, thereby helping to minimize waste and paving the way for the unmanned night-time operations of the future. There are also various ways to recycle film.
Although the bar for recycling factory-generated pre-printed film waste is relatively low, the film waste generated by our client printing manufacturers requires a process to remove the ink (de-inking), which increases the amount of work and its degree of difficulty.
It is already possible to recycle printed film by de-inking, but there are issues with its cost.
Going forward, we will work to reach our goals aiming to achieve both social and economic benefits.

• *1 Post-Industrial Recycling. Collection and recycling of waste generated during manufacturing processes
• *2 Post-Consumer Recycling. Collection and recycling of used waste in the market

Product Development Innovation Gunze’s core technologies lie in the development of different types of laminated films.
In particular, the hybrid shrinkable film made by laminating polystyrene (PS) and polyester (PET) has two properties—high shrinkability (attractiveness) and rigidity (film thinning)—and is therefore being widely used not only for PET bottles, but also for irregularly shaped containers and toiletry products that have poor heat resistance.
Gunze has leveraged its strengths in the selection and processing of a wide variety of raw materials to develop distinctive films and create value.
However, recycling is made more difficult when a film made up of multiple different materials is separated into its individual components, so the trend toward mono-material films, which are made up of a single material to facilitate recycling, is becoming mainstream worldwide.
On the premise of utilizing its multilayer-oriented film technology to that end, Gunze would like to resolve the recycling issue by establishing film separation and recycling technologies.
The experimental equipment for separating different types of materials was completed in February 2024.
In addition to recycling within the Company, in the years to come we will incorporate manufacturing waste generated by customers into our films to increase the recycled content rate of our products.
We have already launched products containing recycled materials onto the market.
At the end of FY2022, we launched GEOPLAS® HCT3, for which 30% recycled materials are used, and at the end of FY2023 we launched GEOPLAS® HCX1, the lightest in the industry with 5% recycled material content.
Although the latter has a lower recycling rate, it is the lightest product in the industry thanks to the use of thin-film technology to reduce the amount of material used.
We will also increase the recycled content rate and work to supply products made from 100% recycled materials by 2030.
I would like us to use the Moriyama Factory as a model Circular Factory™ and apply our know-how to other production sites, thereby transforming ourselves into a circular manufacturer.

Circular Factory™ Visitor Hosting Activities (Plastic Films Business) In April 2023, work on the Circular FactoryTM was completed at our Moriyama Plant after around four years of planning with the aim of utilizing solar and groundwater energy, achieving zero emissions and the elimination of plastic waste, and producing sustainable products. From the completion ceremony until the end of May 2024, we received just under 1,200 visitors from approximately 200 companies (organizations). Due to the COVID-19 pandemic, sales representatives visited customers infrequently. As a result, there were fewer opportunities to obtain feedback regarding issues and needs. Visits to the Circular FactoryTM have contributed to concrete proposals for environmental responses, which in turn have led to a variety of collaborative projects. We are also holding online factory tours for overseas customers, and our real-time responses are being well received.
In the Moriyama Plant’s management office, there is a whiteboard that displays information for plant visitors and monthly tour schedules that are filled with almost no blanks and updated daily. The visitors are mostly business clients, but there are also many government and local government officials. Previously, due to concerns about maintaining confidentiality, we rarely had the opportunity to show people from outside the Company around the factory. The reason why the new plant even has walkways to welcome visitors is because resource recycling initiatives are difficult for a single company to achieve alone. For example, recycling requires cooperation from local governments and stakeholders, while the development of materials requires cooperation from customers with expertise in recycling technology and waste disposal. In terms of promoting resource circulation, it is necessary to involve the entire industry. For this reason, we have boldly shifted to a strategy of disclosing new initiatives.
The reactions from visitors have been positive, and we are beginning to see model cases of resource circulation. However, this activity will probably not immediately lead to an increase in sales. We will continue our activities in the belief that these initiatives serve as stepping stones for future strategies.