Manufacturer-Led International Resource Recycling Network Up and Running

New Response to Global Environment Based on CSR
December 7, 2004

Fuji Xerox has created an integrated recycling system based on an international resource recycling network that comprises of nine countries or regionsNote 1 in its Asia-Pacific territory. Under the system, used office equipments and supplies and printers will be collected, broken down at Fuji Xerox factory and classified into 64 different categories, including iron, aluminum, lens, glass and copper, for recycling.

Note 1: Australia, New Zealand (awaiting final approval from these two countries), Korea, Indonesia, Malaysia, the Philippines, Singapore, Hong Kong and Thailand.

As part of corporate societal responsibility (CSR) efforts, Fuji Xerox formulated a product recycling policy that promotes resource recycling aimed at "zero-landfill" of used products, being the first in Japan to achieve the goal in August 2000. To back up its concept that we, as global company, are responsible for the reduction of environmental impact, Fuji Xerox is commencing full-fledged operation of the integrated recycling system covering the Asia-Pacific region and boasting quality as high as systems used in Japan.

The recycling system was established based on the concept of producer's responsibility and complies with the European Union's WEEE DirectiveNote 2 for the collection and recycling of waste electrical and electronic equipment. Fuji Xerox starts operation of the system in the Asia-Pacific region previous to the establishment of such kind of Directive in this region.

Note 2: Manufacturers are required to introduce a collection/recycling system by August 2005 that enables a 75% recovery rate (recycling rate includes thermal recovery) and 65% reuse/recycling rate (excludes thermal recovery). A similar law is currently under review in Thailand, China and Korea.

The integrated system has a number of distinctive characteristics compared with the employment of separate systems in each country, as it: (1) is rooted in the cooperation and trust of nine Asia-Pacific countries and regions; (2) enables collection and disassembly, and detoxification of hazardous materials of used Fuji Xerox products from different countries without the need for any intermediaries; (3) aims for zero-landfill by steadily improving the recycling rate; (4) drives the fair and equal allocation of costs for local sales companies; (5) boosts productivity enabled by a pool of used products to an integrated recycling center; and (6) helps reduce wastes , as in the case of Thailand, which cut waste from around 25 percent to 0 percent, and create a new industry.

With the backing of Mitsui & Co., (Thailand) Ltd. (Headquarters: Bangkok; President: Kenji Shirasaki), Fuji Xerox will introduce a tracking system for the disassembled and separated materials. The objective is to realize zero-landfill (recycling rate of 99.6%) by leveraging the assistance of 12 recycling partner companies in Thailand and Asia and four such entities in Japan. Used supplies will be broken down to the component stage and manufacture new supplies reusing the components at a quality level equivalent to new products. Between 20,000 and 30,000 used products and 500,000 supplies will be targeted for recycling each year.

Fuji Xerox believes in the importance of fulfilling responsibility to society as much as possible to help realize a sustainable society. In accord with this thinking, the new system aims to reduce environmental burden in the Asia-Pacific region as well as Japan.

Before the system was introduced, Fuji Xerox had to clear various cross-border regulations concerning illegal dumping and appropriate disposal of harmful substances and waste. To accomplish this, Fuji Xerox has talked with local governments based on the policy "Create the system with import country", "Quality 1st on recycling same as Japan", and four key principles for the system: (1) no illegal dumping; (2) no impact on the import country's environment; (3) no rubbish brought into the import country; and (4) benefits must be returned to import county.

The base for the integrated recycling system was built in Thailand due to the: (1) outstanding recycling companies there with technology on a par with Japan; (2) strong support from the Thai government; and (3) convenience and efficiency in logistics as Thailand lies in the center of the Asia-Pacific region. These characteristics are expected to help achieve zero-landfill. Fuji Xerox is also confident it can contribute to the reduction of waste in Thailand through the proliferation of this system.

Fuji Xerox Eco-Manufacturing Co., Ltd. Overview
Name : Fuji Xerox Eco-Manufacturing Co., Ltd.
President : Hiroyuki Hasegawa
Capital : 300 million yen (Fuji Xerox Co., Ltd. 100%)
Date of establishment : January 2003
Location : Chonburi Industrial Estate, Sriracha, Bo Win, Chonburi, Thailand
Employees : 100
Business : Integrated collection, disassembly and separation of used Xerox office equipment
Main business partners:
  Local integrated management partner : Mitsui & Co., (Thailand) Ltd.
  Recycling partners : 16 companies (12 in Thailand/Asia; 4 in Japan)
Capacity : 20,000-30,000 machines/year; 500,000 supplies/year
Investment (factory, buildings, equipment) : 400 million yen
Site area : 10,400m2
Factory wing construction area : 3,900m2
Total factory wing floor area : 6,600m2 (reinforced concrete: two floors)

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