Amada Co., Ltd., Enviropro Holdings Co., Ltd., and Tokyo Steel Co., Ltd. have joined forces to launch a circular economy initiative targeting iron resources recovered from used sheet-metal processing machinery, with full operations beginning in June 2026.
Under the initiative, used sheet-metal processing machinery collected by Amada is dismantled by Enviropro Holdings, which then processes and sorts the material into high-quality iron scrap for material recovery. Tokyo Steel converts that scrap into steel products via electric arc furnace steelmaking, which are then used again in Amada’s manufacturing—completing a closed loop in which end-of-life machines are transformed back into new products.
Used machinery of this kind has previously been processed as recyclable material, but the new scheme carefully identifies and sorts materials component by component, enabling the scrap to be recovered at a higher grade and value. In its first year, the initiative targets approximately 1,000 tonnes of iron resources annually, starting with already-collected sheet-metal processing machinery and focusing on the Greater Tokyo and Tokai regions, where the main facilities of Enviropro Holdings and Amada are located in close proximity.
Electric arc furnace steelmaking, which uses iron scrap as its primary raw material, is a production method that significantly reduces CO₂ emissions. According to Tokyo Steel, CO₂ emissions per tonne of output at electric arc furnace producers are less than one-fifth of those at blast furnace producers. Enviropro Holdings will apply the expertise it has built as part of the waste and recycling industry—collecting, dismantling, and recycling end-of-life goods—to manage the entire flow from collection through to material recovery. The company also plans to introduce traceability so that it is possible to track which machine was converted into resources and where, and to make the resulting CO₂ emission reductions visible.
The initiative stands out in the industrial machinery sector for the collaboration across the value chain and the recycling industry (involving a manufacturer, a recycling company, and a steelmaker) to achieve a high-quality closed loop, and for its commitment to going beyond recycling itself to address traceability and CO₂ emissions visibility.
※ Image sourced from the press release.
【Reference】Launching a Circular Economy Initiative in Collaboration with Amada and Tokyo Steel across the Value Chain and Recycling Industry
【Reference】Building a Resource Circulation Model for Machinery
【Reference】Launching a Circular Economy Initiative in Collaboration with Amada and Tokyo Steel across the Value Chain and Recycling Industry
【Reference】Tokyo Steel — Our Commitment
