Daikin Industries and Itochu Corporation have signed a comprehensive business alliance to expand closed-loop recycling of commercial air-conditioning equipment in Japan. The companies will use a Type 1 framework under Japan’s law on advancing recycling businesses to improve resource circulation and increase the use of recycled materials in new products.
The two groups plan to manage the entire recycling process, including equipment collection, dismantling, sorting, refrigerant recovery, quality assessment, material recycling and product manufacturing. Materials covered will gradually expand to include steel, copper, aluminum, rare earths, plastics from casings and fans, electronic components and fluorocarbon refrigerants.
Daikin will evaluate recycled-material properties and performance, establish acceptance criteria, manage production processes and develop products using the recovered materials. The company will also use its installation, maintenance and equipment replacement networks to support collection and supply-chain operations.
Itochu will support regulatory certification, organize recycling partners and nationwide logistics, and establish traceability systems covering material origin, processing, blend ratios and compliance records. It will also develop systems for calculating and reviewing recycling rates and CO2 reductions.
The companies will first implement the business in the Japanese market and seek regulatory certification before expanding nationwide in stages. Target models, volumes, quality standards and recycled-material ratios will be set through individual agreements.
