Auto Recycling World recently spoke with Mr Nichio Yoshikawa, Director of SEAPARTS Ltd, an automotive recycling operation based in Japan. Mr Yoshikawa offers profound insights into his pivotal role at SEAPARTS Ltd and the transformative strides the organization has made under his leadership. From pioneering business strategies to navigating the dynamic landscape of automotive recycling, Mr Yoshikawa sheds light on the company’s trajectory and significant international engagements. Furthermore, he delves into SEAPARTS’ proactive measures in anticipation of the rise of electric vehicles, emphasizing the delicate balance between strategies and pragmatic realities within the global automotive recycling industry.
Driving Growth and Innovation at SEAPARTS Ltd
At SEAPARTS Ltd, my role encompasses a multifaceted approach aimed at driving the company’s growth and innovation. Firstly, I am tasked with developing new business avenues for SEAPARTS, ensuring that they are not only identified but also successfully implemented to propel the company forward. Additionally, I am deeply involved in establishing international business partnerships, a crucial aspect of our expansion strategy, while simultaneously working towards broadening the user base of GAPRAS, a vital component of our operations. Furthermore, I am actively engaged in expanding SEAPARTS System Development, leveraging technology to enhance our efficiency and effectiveness. Finally, I am committed to investigating and promoting automotive recycling technology, staying at the forefront of industry advancements to ensure SEAPARTS remains a leader in sustainability and innovation.
Transformative Evolution: Advancements and Innovations at SEAPARTS Ltd
After graduating from university, I immediately joined Yoshikawa Shoten, a family-run business with a team of two employees. Initially, the company operated from a single factory. One year after joining, the company built a new factory. After that, my brother joined. He was in charge of finance and general affairs, and I was in charge of sales and development.
In 1988, the company name was changed to Yoshikawa Metal Industry LLC, and its main focus was aluminum melting for automobile engines. We purchased aluminum engines from automobile dismantlers in western Japan and began producing secondary aluminum alloy ADC12. However, the Japanese yen began to rise sharply after that, and overseas raw material markets stalled at extremely low prices. Facing these challenges, we realized that continuing in this direction was unprofitable. Thus, we pivoted towards exporting automotive parts internationally.
In 2004, the company name was changed to SEAPARTS Co., Ltd., and our main focus was exporting recycled automobile parts. Around this time, I began developing the systems necessary for this work. In 2005, we built an ideal factory in Mine City using this system. It connects multi-location management and users through a system that allows remote management using the Internet without the need for face-to-face sales. This system is patented.
Since then, we have expanded our factories and opened a Chiba Sales Office and a Tokyo Office.
Innovative Strategies for Survival and Growth
In the competitive business arena, a small-scale company like ours faces the challenge of competing with large-capital firms. There’s a possibility of being absorbed by these giants. It is easy to dismantle large quantities of buildings and build large factories in the Greater Tokyo area as long as you have the money. However, the recent world situation has instilled the fear of global warming in Japan, for which there is no clear physical evidence, such as creating a recycling-oriented or decarbonized society. Of course, the theory is correct, but it seems that no clear chemical basis has been proven. In fact, in Japan, such a trend is starting to occur. I’m sure it’s the same in Europe as well.
Furthermore, foreign-owned companies have begun to expand into this industry in large numbers and are said to account for more than 40% of the industry. To navigate these challenges, a small-capital company like ours must innovate. We need to develop unique patents and systems that are distinct from those of our competitors and embrace automation with robots. The decline in birthrates and the aging population are well-acknowledged phenomena. In such a scenario, expertise in engineering and the ability to replicate these skills through advanced systems will be pivotal. This approach is not just progressive for a company of our scale, not endowed with large capital; it’s essential for survival.
I believe that foreign-owned companies will grow to around 70% in the future. Their increasing financial strength will likely lead to more international sales of Japanese recycled car parts than domestic ones. In this evolving market, the key players who will remain competitive are large Japanese corporations or small family businesses with low overhead costs, especially those in prime locations like Greater Tokyo and other major regional metropolitan areas.
Impact of Electric Vehicle Recycling on Company Operations and Preparatory Measures
We believe that the EU’s circular economy strategy cannot be ignored. However, the strategy changes every year, so I think we need to keep an eye on it. It’s been talked about a year late in Japan, so I feel like we’re being swayed by outdated information. In particular, the recent world situation has had a major impact on this strategy, and I think the gap between ideals and reality is becoming too wide. In particular, as the differences in thinking between developed countries and other countries become clearer, the movements of India and China cannot be ignored.
Naturally, our company is also researching electric vehicle recycling with major domestic companies. It cannot be announced yet. This is because I believe that discussing the shortcomings of electric cars will be of paramount importance in the future. If electric cars start to become popular without such discussion, there is a high possibility that there will be major adverse effects all over the world. I think this is one of the reasons why Japanese car manufacturers did not rush to popularize electric cars ahead of the rest of the world. If you place too much emphasis on sales, you will likely experience unexpected negative effects. I think the EU understands this very well, but there are times when it directs its own selfish strategies toward the outside world.
Decision-Making Process and Car Part Export Destinations
While the specifics are trade secrets, it’s possible to infer the types of companies that have adopted our system by closely examining its features. The details might be under wraps, but a deeper look into how our system operates can give you a good idea of our clientele.
Diversification into Other Vehicle Types and Advancements in Robochangers and Digital Auto Recycling
We currently handle industrial machinery such as heavy machinery and forklifts, but this is not a large market yet. However, we believe that this system will allow us to easily enter this market. Nonetheless, further development of the domestic buying market is necessary for this venture. We are prepared to introduce this system to businesses dealing with industrial machinery. The stage is set for actual implementation.
Even companies with small capital can attract young, talented people by introducing our systems and robots. Eventually, they will perform important tasks for the future SEAPARTS.
For further information about the SEAPARTS system, please visit seaparts.jp
