Manucript okada

1. <Session Ⅶ>
5/13/2015 1
Panel discussion:
"The Future Business Model for the Global Industrial Container Industry"
Masaki Okada, Nisshin Yoki Co., Ltd.
Good afternoon, everyone.
When the 15th International Conference on Industrial Packaging is held here in
Vancouver, I myself am very pleased being able to attend.
It was Mr. Nakamura who speaks originally, but his physical condition did not allow
him to attend. Therefore, I, Mr. Okada will speak in place of him.
Our Company (Nisshin Yoki Co., Ltd.) has started up the reconditioning business of
steel drum by making a joint investment with four Japanese steel drum reconditioners in
Tianjin, China in 2007. Furthermore, in Qingdao (Shangdong, China), we have a joint
venture dealing with the reconditioning machineries for drums. The inquiries and
references have been increasing in both bases utilized the Japanese technologies from
each place of China.
From now on, we will expand the base of Container Reconditioning business in China.
To start with, we entered the activity to start the steel drum reconditioning business in
the Huadong area (East China) within the year 2015.
The factory is to be constructed in Taicang (Jiangsu) where the joint partner is. In this
plan, we have set up the ability of 25,000 reconditioned drums monthly. Currently, the
screening of environmental assessment documents is proceeding with the formalities. We
are thinking to establish the reconditioning facilities for closed head drum to start with.
While the Chinese government focuses power on environmental measures, even a local
government level shows a stronger control/guidance to the distribution and the drum
reconditioner of the used drum in recent years. Consequently, there is a trend that the
used drum being concentrated upon a powerful reconditioner.
We are thinking that the reconditioning volume is related to the increase, because the
number of collection is increasing at our joint partner and the reconditioning business is
expanded under joint management with us.
We are estimating that the demand of drum in Huadong areas, where the
petrochemical industry is integrated centering Shanghai, is as much as the total volume

2. <Session Ⅶ>
5/13/2015 2
of Japanese distribution although there is no definite statistics. While the new steel
drums have been supplied by the foreign-owned and a part of Chinese manufacturers, as
for the reconditioned drums, the development of the whole industry is not improved and
the image of the user side to the reconditioned drums is not favorable, the use of
reconditioned drums is remaining extremely limited.
The reconditioned drums in Japan have been used widely in fields such as the
lubricant, chemistry, paint, the food. In the Huadong area, many of the foreign-owned
companies including the Japanese-affiliated companies made inroads into these fields.
From our market research until now, we think the potential demand of reconditioned
drums in Huadong area is very high.
In the products of various fields, we think that the demand to the Asian countries
including Japan in particular was cheap and high-quality products only.
The substances which may destroy a global environment are contained at the time of
discharge depending on the waste treatment and disposal methods such as the spin-off
and by-product generated at the stage of production, by repeating these production and
consumption.
Though the discharge companies understand the situation, they are considering that to
take measures to the global environment influence is to spoil the profit.
Even though there are problems for the preparation/penalty of related laws in the
various countries, we think that there is the situation of today in the way of thinking that
"Turn a blind eye to something unpleasant” as we say in Japanese.
From now on, we install environmental measures facilities in line with the effluent
standard of each country as well as observing the Japanese environmental regulation,
and perform the reconditioning of steel drums and the reconditioning business of
industrial containers which the country and the area require. And we, as the future
business model, want to promote the business expansion not only preserving the global
environment but also taking upon ourselves the demands of global environment
improvement concurrently.
Thank you for your kind attention.