Information on the target
Orix Corporation has announced the acquisition of 100% of the shares of Nozoe Sangyo Co., Ltd., a company specializing in the wholesale and recycling of flexible plastic packaging materials. Founded in 1965 and headquartered in Higashi-Osaka, Japan, Nozoe Sangyo has over 60 years of experience in the packaging materials industry. The company primarily focuses on the sale of stretch film, which is widely used in the logistics sector for securing and protecting goods. In addition to sales, Nozoe Sangyo has established a comprehensive business model that includes the collection of used materials and their reprocessing into recycled products.
This acquisition allows Orix to leverage its extensive nationwide sales network and expertise in the resource recycling sector, combined with Nozoe Sangyo's established collection network and recycling know-how. The partnership aims to enhance Nozoe Sangyo's growth initiatives while improving governance and management structures to achieve sustainable growth for both companies.
Industry overview in the target’s specific country
The packaging materials industry in Japan has been undergoing significant transformations, particularly in response to increasing environmental regulations, especially in Europe. Companies are increasingly adopting recycled plastics in their product designs and material sourcing. Stretch films and other packaging materials are particularly well-suited for recycling due to their ability to be collected in relatively good condition after use, making them ideal for reprocessing.
However, maintaining a sustainable business model for collection and recycling requires a robust infrastructure and expertise. The logistics sector is experiencing a labor shortage, leading to a rise in pallet transportation, which in turn is expected to increase the demand for packaging materials. This trend highlights the growing need for recycled materials in the industry.
In light of these societal trends, Orix has positioned its recycled plastics business as a key growth area within the environmental sector. The company is actively working to build a solid business foundation while expanding its handling of flexible plastics. Future plans may include diversifying into various plastics used in automotive and home appliance sectors.
Orix has identified "global warming and limited resources" as one of its strategic investment areas, promoting the realization of a circular economy. The company has previously achieved horizontal recycling of aluminum …