Automotive recycling companies in Hokkaido, Japan, are showing increased interest in recovering plastics from end-of-life vehicles (ELVs), spurred by the upcoming Automotive Resource Collection Incentive Program, set to launch in April 2026.
The program will provide financial incentives to recyclers who collect and process plastic components such as bumpers and interior parts, materials that have traditionally ended up as automotive shredder residue (ASR).
At a recent open house hosted by the Hokkaido Auto Dismantler Corporation, 35 members attended a live demonstration of a used plastic shredding machine. During the event, Yoshitaka Ishigami, President of Ishigami Sharyo Co., expressed cautious optimism, stating that plastic recycling will be necessary in the future, although some aspects remain unclear.
Currently, market prices for recycled plastic and glass remain low, and operational challenges persist. However, with regulations in regions like Europe increasingly requiring the use of recycled plastics in new vehicles, demand and prices are expected to rise.
The Hokkaido association, comprised mainly of small to mid-sized businesses, is exploring collaborative models, including forming a consortium to meet incentive program requirements. Such a move would require a critical mass of recyclers equipped with shredders, still a rarity in the region due to high equipment costs.
A representative from a recycled plastics company provided technical guidance at the event, covering contamination removal and shipping protocols.
Chairman Ishigami concluded, “We aim to establish a system for recycled plastic shipments as soon as possible.”
Source JARA news, June 2025, No. 208
