Revisiting “J-EPS Recycling” at Our 50th Anniversary

Expanded polystyrene recycling using heat-melted and re-formed ingots is often said to be a

recycling method that originated in Japan.

Panachemical’s recycling business, known as “J-EPS Recycling,” was born from this very approach.

The Beginning of Our Recycling Business

Originally, our company operated as a chemical materials distributor for

Matsushita Electric Works, Ltd., focusing mainly on thermosetting resins.

However, during the period following the second oil shock,

the stable supply of plastic raw materials became increasingly difficult.

At that time, our founder, Juhei Inukai, began searching for new possibilities.

One day, he noticed thick black smoke rising from the Tsukiji fish market.

From the perspectives of pollution prevention and cost reduction,

he began to wonder whether expanded polystyrene could be melted and reused.

If the melted material could be turned into ingots with market value,

and if those ingots could be sold,

then recycling could become a sustainable business.

This simple question marked the beginning of J-EPS Recycling.

Discovering Overseas Markets and Building a Circular System

At first, we searched for customers within Japan,

but understanding and acceptance were limited at the time.

As a result, our focus naturally shifted overseas.

After exploring markets in Taiwan and South Korea,

we eventually reached Hong Kong.

There, ingots produced through J-EPS Recycling began to be used

as raw materials for VHS video cassette tapes,

and for the first time, a true recycling loop took shape.

Subsequently, recycling machines spread throughout

wholesale markets and supermarkets across Japan.

Today, this network includes approximately 2,000 companies nationwide,

collecting 3,000 tons per month,

making it the largest expanded polystyrene recycling system in the world.

Overcoming Repeated Crises

The journey was never easy.

Hong Kong’s import ban,

the Lehman Shock,

the collapse of crude oil prices,

extreme appreciation of the Japanese yen,

and China’s ban on plastic imports—

Time and again, we faced moments when the very survival of the business was in question.

Each time, however, we worked closely with

our suppliers and recycling machine manufacturers to refine our systems,

improve quality,

and collaborate with overseas customers to overcome these challenges.

A Japanese Model We Hope to Share with the World

Even today, expanded polystyrene recycling remains poorly established

in many parts of the world.

That is precisely why we believe it is important to share

the J-EPS Recycling model, refined over many years in Japan,

with a broader global audience.

https://www.j-eps.com/

By placing quality at its core,

connecting on-site operations with market demand,

and making true circularity possible,

this model represents a form of recycling that could only have emerged in Japan.

As we mark our 50th anniversary,

we reflect once more on these origins

and look ahead with the intention of passing this approach on to the next generation.

Kentaro Inukai

Panachemical Co., Ltd.