Contributing to a Sustainable Society through Resin Materials

In the Plastics & Resin business, we supply resin materials globally by leveraging our material evaluation capabilities and proposing optimal materials. We spoke with two members of the Plastics & Resin Department, Non-Ferrous Resources Division, about how they are enhancing added value through recycling and their current and future initiatives.
*Information as of March 2025.

Ensuring Stable Global Supply of Resin Materials

ーCould you explain the business overview and the integrated management of production and logistics processes, which is one of your strengths?

Kawamura: In the Plastics and Resin business, we deliver resin materials to Honda production facilities and parts manufacturers both domestically and internationally.

Integrated management of production and logistics processes involves determining the required quantities for each parts manufacturer based on final user's production trends, procuring materials through forward contracts with material manufacturers, and ensuring timely delivery of materials to our customers with stable quality.

For example, when procuring from overseas suppliers, supply disruptions of resin materials due to various accidents or issues are a potential risk, and such incidents have occurred in the past. In such cases, we collaborate with our local subsidiaries to promptly secure logistics routes, which is part of our role that customer is expecting.

Additionally, if a supplier faces unforeseen circumstances that prevent raw material supply, we facilitate inventory from other countries or propose alternative materials. In this sense, we play a n important role in the global procurement process as part of the BCP (Business Continuity Plan).

In the event of natural disasters such as earthquakes or so, we quickly gather information from suppliers both domestically and internationally and propose countermeasures to our customers.

ーThe automotive industry has set industry-wide goals for the use of recycled materials. How are you addressing resin recycling?

Kawamura: Resin recycling generally falls into two categories: Chemical Recycling and Material Recycling.
The latter, Material Recycling, involves using technologies such as crushing, decomposition, and melting to convert resin scrap from the market back into resin materials. Depending on the material specifications, virgin materials may also be blended.

Globally, Europe has set higher recycling regulations compared to other regions, and the demand for resin recycling is increasing in the automotive industry. To address this, we ensure traceability of the scrap used as raw material and procure recycled materials to propose to our customers.

In the Kyushu region in Japan, for example, we have commercialized resin materials with a specific blend ratio of recycled and virgin materials for Honda motorcycles and have started supplying them to parts manufacturers.

Moving forward, we aim to leverage our strengths in procuring recycled materials and our expertise in selecting procurement sources both domestically and internationally to provide services from the development stage of our customers.

Managing and Supporting the Testing Processes at External Evaluation Institutions to Meet Strict Quality Standards

ーHow do you ensure the quality of recycled resin?

Makino: Honda has its own specification standards, and recycled materials must meet the required physical properties specified by our customers. We also support physical property evaluation tests.

For instance, when proposing new recycled materials to our customers for the resins that globally suppling currently, we not only secure the scrap of raw materials but also support the process of ensuring that the specifications of the compounded resin meet the defined standards, in collaboration with external testing institutions.

The automotive industry, in particular, demands strict specification requirements. We ensure reliability of our goods by managing the process to meet Honda's unique specifications as well as other certifications.

Makino: In addition to ensuring the quality of recycled materials, many of the processors known as "compounders" who produce recycled materials are small to medium-sized enterprises, making credit management crucial. As a trading company, we monitor the financial status of compounders and handle everything from raw material procurement to delivery to parts manufacturers, ensuring stable procurement.

ーWhat about the overseas expansion of resin recycling?

Kawamura: While the same scheme applies, the players involved differ overseas. We have local subsidiaries in various countries and regions, and we will propose solutions while assessing the compounders as well as securing feedstocks in each country. In fact, we are already advancing such initiatives overseas.

Establishing a Joint Venture for Material Testing Services

ーCould you explain the purpose of launching a material testing service business?

Kawamura: We established a joint venture with a testing service company specializing in material evaluation and various analyses to provide testing services that meet the standards required by automakers and parts manufacturers. This service enables us to support our customers from the early stages of their research and development.

As a trading company, we believe it is essential to go beyond simply moving goods from one place to another and to provide functions that align with development and manufacturing domains. One of the benefits of establishing the joint venture is that it has deepened our knowledge and expertise in materials. We aim to leverage this expertise to make proposals to a wide range of industries.

By becoming involved in upstream material development, we believe we can offer higher value-added services. This also allows us to provide new materials, including recycled ones, with confidence to our customers.