Panasonic Establishes First Recycling Factory in Chinese Market　

Panasonic Corporation, Hangzhou DADI Environmental Protection Engineering Co., Ltd., DOWA Holdings Co., Ltd., and Sumitomo Corporation today announced they have reached an agreement to form a jointly-held company in China , Panasonic DADI DOWA Summit Recycling Hangzhou Co., Ltd.(proposed name;"Panasonic Hangzhou DADI") that will recycle home appliances and electronics.

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Rendering of Panasonic DADI DOWA Summit Recycling Hangzhou Co., Ltd.
Location of Recycling Factory

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In China, an ordinance on the collection, processing, and management of waste electrical and electronic products was enforced by the government on January 1, 2011 with an aim to promote proper and safe disposal of waste home appliances. The ordinance applies to five types of electrical and electronic products including TVs, refrigerators, washing machines, air conditioners and personal computers.

The amount of waste home appliances has been on rise in China, as the country's recent economic growth spurred the use and upgrading of electronic products among consumers. In Zhejiang with a population of about 50 million, approximately 2.9 million units of waste home appliances were collected in a 12-month period from 2009 to 2010, and the amount is expected to increase further.

The new recycling company will collect and disassemble used home appliances and electronics and sell recovered materials in compliance with the Chinese ordinance and aims to be a model company for China with advanced recycling technologies. Panasonic will be the first Japanese consumer electronics manufacturer to enter the Chinese recycling market.

The new company will purchase the five types of waste home appliances from collection companies, disassemble them by using its advanced recycling technologies and facilities, and sell recycled materials to refining companies, plastics recyclers and manufacturers. With the establishment of Panasonic Hangzhou DADI, the four companies look to contribute to environmental conservation and efficient use of recycled materials in the country.

Photo Session from Press Conference at Tonglu, Hangzhou, Zhejiang China

The roles and responsibilities of each company are as follows:

Panasonic Group will provide its advanced recycling technologies and equipment developed through its recycling business in Japan, such as laser separation technology and dry scrubbing equipment for the CRT glass used in TVs; compressor separators for refrigerators and air conditioners; and technologies for recovering copper coils and safely collecting refrigerator insulation materials containing fluorocarbons.
In addition, the company will be responsible for gathering information on equipment procurement, production management and improvement of working environment including implementation of so-called "Five S" concept for workplace organization: Sort, Set in order, Shine or Clean, Standardize and Sustain or Discipline.

Hangzhou DADI, who has been engaged in collection, processing and general utilization of solid industrial waste, will cover information gathering on the related laws and regulations and the recycling market including collection and recycling-related companies, as well as negotiations with the government authorities to obtain approvals and permits.
The company will also build systems and routes enabling to collect enough volume of waste home appliances to ensure business viability.

DOWA Group, who has been supplying materials and services in a broad range of businesses including environmental management and recycling, will operate the new recycling plant in an efficient manner, drawing upon its experience and knowledge built up through its operations in Japan and China. The company will also gather information on equipment procurement.

Sumitomo Corporation will collect information on the global recycling industry as well as market trends and prices that will help sell recycled materials. The company will support the efficient management of the new recycling company with its know-how and expertise in business operation gained through its long-time experience in China as a general trading company.

Panasonic Hangzhou DADI will be established once approvals are granted by the relevant government authorities. The new company is expected to start operations in earnest in spring 2012.

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