The economic case for steel recycling is clear. Global demand for steel products is high and despite current political uncertainties in some areas of the world, we believe it will remain strong. Supply is limited, so the market is tight. Moreover, Japan is self-sufficient in scrap steel, in fact exporting millions of tonnes of it each year. Making smarter use of steel scrap within Japan offers great opportunities in business terms.
The environmental case is also clear. We need to stop abusing natural resources and instead try to circulate existing resources through recycling. We have the potential and the moral obligation to proactively address climate change and reduce CO2 emissions. Steel production with an electric arc furnace process generates only one fourth of the CO2 per unit of production compared to the standard blast furnace process used by most steel manufacturers. With increasing use of renewable energy sources, we would be able to reduce those emissions even further.
So as a pioneer in steelmaking using the electric arc furnace process, it is clear what we at Tokyo Steel have to do: develop innovative ways to create more high-quality steel products with a low carbon footprint.
That means using our electric arc furnace methods to transform low-grade scrap into value-added products such as high-tensile steel for the automotive industry, electrical appliances and construction machinery. It is a form of horizontal recycling that we metaphorically call “Car to Car” because end-of-life cars are reborn as new steel car parts. The scope is much wider than just the automotive industry. These products are also used in everything from construction machinery to electrical appliances. But first we have to overcome the technical challenges of using low-grade scrap to make high-end steel products.
We were the first to establish the technology to produce flat steel products from general heavy scrap without using blast furnace pig iron or less high-grade scrap such as bushelling scrap. Back then, many people said it would be impossible to produce even H-beams using this process, never mind hot rolled coils. Yet with strong investment in research and development, today we have become Japan’s leading manufacturer of H-beams and supply millions of tonnes of hot rolled coils both within Japan and abroad. As new manufacturing and digital technologies appear, we are constantly upgrading our processes and production facilities in order to improve quality, minimise costs and boost efficiency. We not only wish to stay ahead of the market, we wish to drive progress in this market.
Our past success makes us confident that we can overcome the challenges of using low-grade scrap to make high-quality steel products. In some cases, such as the presence of tramp elements like Cu and Ni in general scrap, we have even managed to turn potential disadvantages into benefits. To accelerate our innovation in this area, we rely on support from expert partners such as RINA. Applying a through-process innovation approach, they are helping us with two projects related to the operational optimisation of high-grade steel production at our plants in Tahara and Okayama. RINA’s expertise complements our internal resources, especially in cases where we don’t have specialist competencies. Japanese steelmakers like to keep their know-how secret, so we rely on independent third parties for objective and knowledgeable advice.
Some customers may worry that producing high-end steel products from low-grade scrap will lead to quality issues. Others may have been shaken by recent data falsification scandals affecting certain manufacturers, not only in Japan but worldwide. Customer confidence is vital to us and to the growth of sustainable steel recycling in Japan and across the world. In addition to ISO 9001 quality assurance certification, we conduct regular internal audits and accept customer audits if desired. We have nothing to hide and much to be proud of. I certainly feel proud to see our high-quality operations with my own eyes during my regular visits to our plants in Tahara, Okayama, Kyushu and Utsunomiya.
Our efforts at Tokyo Steel to develop innovative technologies in steel recycling should be seen in a wider context. Renewable energy is becoming more accessible. In fact, we already provide the land for solar and wind power installations to generate electricity at our Tahara plant. Within our plants, we re-use and recycle all by-products such as slag, dust, sludge and waste brick. Our Okayama plant is authorised to treat waste dry-cell batteries, meaning that we can recover iron, zinc and other valuable metals from these waste products. If other companies in Japan and across the world make similar efforts in their own industries, we can together achieve our dream to become a truly low-carbon, recycling-based society.