Repair, Refurbishment and Testing by Japanese Manufacturers achieving Product Quality/Safety Assurance and Environmental Conservation

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Repair, Refurbishment and Testing by Japanese Manufacturers achieving Product Quality/Safety Assurance and Environmental Conservation The Japanese Four Electrical and Electronic Industry Associations Workshop 214 of the Asian Network, Okayama, Japan 27 November 214

Outline. About us 1. Our Mission and Current Operations for Used Products 2. Cases 3. Survey Results 4. Conclusions 2

About Us Basel Task Force established in Dec 212 under the Japanese Four Electrical and Electronic Industry Associations The Japan Electrical Manufacturers' Association (JEMA) / 275 companies Japan Electronics and Information Technology Industries Association (JEITA) / 397 companies Communications and Information network Association of Japan (CIAJ) /227 companies Japan Business Machine and Information System Industries Association (JBMIA) / 53 companies Member companies Fuji Xerox (chair) Canon (co vice-chair) Sony (co vice-chair) Fujitsu Mitsubishi Electric NEC Panasonic Ricoh IBM Japan (observer) HP Japan (observer) 3

Our Mission To enrich people s lives through providing safe and high-quality products with due consideration to the environment To provide promptly appropriate product guarantees and maintenance services in case of occurrence of defective products or product failures To give consideration to attain both environmental conservation and economic efficiency on a global basis in accordance with the Mottainai Spirit (a Japanese traditional value to avoid waste) throughout the whole life cycle of electrical and electronic equipment 4

Current Operations for Used Products Repair/Refurbishment Defective/used products are shipped (export/import) to the repair/refurbishment center with specialized techniques/technologies Repaired/refurbished products are back to customers and used continuously Contributes to reduction of waste and effective utilization of resources by extending the useful life of valuable products as well as by limiting demand for new natural resources Testing (e.g. failure analysis, field test) Defective products are shipped (export/import) to the development center or the quality assurance center of the manufacturer Results of testing are reflected on the product development on a timely manner Contributes to development and supply of future products to be used safely for a long time by preventing product failure and improving product quality Effective, efficient and uniform services are made possible by regionally centralized facilities covering several countries 5

Cases 1. Refurbishment in Thailand - Ricoh & Fuji Xerox 2. Testing in Thailand - Mitsubishi Electric 3. Repair in Malaysia 6

Refurbishment in Thailand Approx. 5 workers, 1,2 m2 4-5 units/month Multi Functional Printers (MFP), Printers 1. Receive 5. Exterior cleaning 2. Storage 3. Removal of covers 6. Parts exchange 7. Assurance 4. Interior cleaning 8. Packaging 9. Shipping

Refurbishment in Thailand Processes established with strong support by the government of Thailand Processes at site Shipping & Sale Exchanged parts (non reusable) become waste in the disassembly process Metal parts (Steel, copper, aluminum) Assurance Assembly Cleaning & Repair Disassembly & Parts exchange Receive Import Export Exchanged parts Little hazardous waste is generated from equipment compliant with applicable chemical regulations worldwide Authorized Recyclers Processes at recyclers Resource recovery Heat recovery Disposal > 89% 1% (Proper Steelmaking treatment) Steel/copper/ /non-ferrous <.5% aluminum metals smelting Recycled pellets Plastic parts Pelletization Rubber parts Incineration Glass parts Crushing into cullets Recycled glasses Crushing & non-ferrous smelting Steel/copper/ aluminum /precious metals Electronic Parts (e.g. motor, Printed circuit board) Alternative fuel Note: Pre-treatment is done in the Philippines, and smelting in Germany. Burned ash Landfill

Testing in Thailand Asia, Oceania, Middle East, EU, etc. Feedback for design quality improvement Manufacturing Factory in Thailand Product design Defective / field tested air conditioners Failure analysis Data analysis of field test Recycled materials Recyclers Sorted materials Manual disassembly by material

Testing in Thailand Failure analysis Data analysis of field test Defective air conditioners (countries of sale) Identify defective part Export defective products Climate Urgent Product quality management (Importing country) Verification of defective part Investigation of failure cause Field test to collect data under different conditions (in some countries) Countermeasure Residential structure Life style Export Field tested units Product development (Importing country) Data analysis on parts and performance Product design Improvement of product performance

Testing in Thailand Processes at site Disassembly Failure Analysis Import Export Products after failure analysis are transported to waste management center and sorted to each materials for recycling. Authorized Recyclers Sorted parts/material Processes at recyclers (waste disposer) Metal parts (Steel, Copper, Aluminum) Steelmaking /non-ferrous metals smelting Steel/Copper/ Aluminum Pelletization Recycled pellets Plastic parts Resource recovery Heat recovery > 98% < 1% Incineration Alternative fuel Wood packaging Shredding /incineration Paper packaging Paper manufacturing Recycled paper Printed Circuit Boards (PCB) Pre-treatment Steel/Copper/ Aluminum Note: Smelting is done outside of Thailand. Disposal (Proper treatment) <.5% Burned ash Landfill

Repair in Malaysia Malaysian Government allows repair operations for many companies on the basis that: Product shipped in for repair, if non repairable must be shipped out for ESM usually in Singapore Product for repair is received from 14 Countries Repaired product shipped out to 5 Countries Scheduled Waste (hazardous waste) generated locally from repair operations stays within Malaysia for treatment by a DOE approved facility:- Repair process includes: Receive Repairable products Testing Non Repairable Products Repair salvaged parts Salvage parts Repairing IT Products and Parts Ship repaired items to Client Service Centers Volumes 1 facility = 13,+ pcs per month Ship non hazardous scrap out of Malaysia for ESM Scheduled Waste 6+ Employees

Manufacturing factory operating refurbishment

Receiving of Used Products Palletised Properly packaged Labelled 14

Packaging Individual/collective packaging Cushioned

Storage

Interior View Parts exchange Assurance 17

Ready for shipping 18

Waste management center (in manufacturing factory) エアコンの場合

Stored parts (heat-exchanger before disassembling)

Disassembled materials Steel Copper pipe Aluminum fin Printed circuit board

Survey Results Estimated Yearly Amount of Transboundary Movement of Used Products tons/year Estimated yearly amounts imported /exported Type of used products Purpose Product body Repair, Refurbishment, and Testing 17,5 Spare parts Repair, Refurbishment, and Testing 1,1 Total 18,6 The figures above represent not only imports and exports from/to Japan, but also those between overseas offices of Japanese manufacturers. *2 The figures come from part of the Japanese manufacturers. *1 22

Survey Results Trade Patterns of Transboundary Movement of Used Products FROM TO OECD countries OECD countries OECD countries Non-OECD countries tons/year Quantities per year 17,1 75 Non-OECD countries OECD countries 3 Non-OECD countries Non-OECD countries 45 * The figures come from part of the Japanese manufacturers. 23

Survey Results Trade Patterns of Transboundary Movement of Used Products tons/year TO FROM North America Japan Europe Asia/ Africa/Mid Oceania dle East Central/ South America Japan 4 North 1 38 17,151 America Europe 1 45 54 24 Asia/ 87 42 Oceania Africa/Middl 141 e East Central/ South 36 4 *America The figures of the transboundary movement amount come from part of the Japanese manufacturers. Total * 2 74 273 856 24 17,155 Total 4 17,19 34 489 141 4 18,6 The figures come from part of the Japanese manufacturers. 24

Survey Results Estimated Yearly Amount of Waste tons/year Hazardous waste out of the total waste Waste OECD countries Non-OECD countries Total 1,175 196 177 26 1,352 222 *1 The figures above are for the total transboundary movement of 18,6 tons/year *2 Hazardous waste is those listed in Basel Convention Annex Ⅷ Table A (e.g. printed circuit boards, CRT, fluorescent tube)

Survey Results Waste Management (some specific cases in Thailand and Malaysia) Traceability Authorized services Check of treatment process Material recovery (smelting) Plastic Material recovery, Partially heat recovery and landfill Glass Material recovery, Partially landfill Composite parts Material recovery Hazardous component Material recovery (smelting) Type of sorted material/component Treatment Iron/non-ferrous metal

Conclusions Our transboundary movement of used products for repair/refurbishment/testing are distinct from improper export/import conducted by some traders Repair/Refurbishment of used products allows realizing reduction of waste and effective utilization of resources Testing contributes to development of future products with enhanced safety and longer life All processes of current operations are well controlled We are managing waste including those hazardous generated from repair/refurbishment/testing in an appropriate manner 27

Regarding the E-waste Guidelines We need your support to continue our legitimate repair/refurbishment/testing currently being operated globally. Conditions need to be: Feasible; and Acceptable for all stakeholders 28

Thank you very much! 29