ENVIPRO HOLDINGS Inc.
5698・Standard Market・Iron & Steel
Resource Recycling Business
Core business responsible for collection and processing of metal scrap and industrial waste, and production and sale of recycled resources
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (including internal sales, nine months cumulative) | ¥17,003 million | ¥15,804 million | ↑ |
| Segment profit (ordinary income basis, nine months cumulative) | ¥1,736 million | ¥912 million | ↑ |
| Segment profit margin (nine months cumulative) | 10.2% | 5.8% | ↑ |
Business Details
Collects and transports metal scrap and industrial waste generated from factories, demolition sites, etc., and performs shearing, cutting, crushing, sorting, and compression at intermediate processing plants to produce and sell recycled resources such as ferrous scrap, non-ferrous metals (copper, aluminum, stainless steel, etc.), plastics, and rubber. Customers include major electric furnace and blast furnace manufacturers, non-ferrous trading companies, and smelting manufacturers. Main subsidiaries include EcoNecol Co., Ltd. and Nitto Kako Co., Ltd., with Abiz Co., Ltd. and Fuji Eco Cycle Co., Ltd. included as equity-method affiliates. The segment also handles internal supply to the Global Trading Business within the group.
Recent Overview
Significant increase in profit with sales up 7.6% and profit up 90.4%, driven by higher prices of major metals and structural reform results
For the nine months ended March 2026 (July 2025 to March 2026), sales in the Resource Recycling Business were ¥17,003 million (up 7.6% year on year), and segment profit was ¥1,736 million (up 90.4% year on year). Supported by non-ferrous metal and precious metal prices such as copper, gold, and silver trading at record-high levels, the company enhanced recovery and sale of high-value-added products by deepening its proprietary sorting technology. In the rubber-related business, the results of structural reforms such as organizational restructuring steadily materialized, with optimization of transaction terms and strong order intake contributing to improved profitability.
Key Products
Growth Drivers
- Strengthening the recovery and sale of high-value-added products (such as gold/silver slag) amid high prices of non-ferrous metals and precious metals (copper, gold, and silver at record-high levels)
- Improving the recovery rate of high-value-added products through deepening of proprietary physical sorting technology
- Materialization of results from structural reforms such as organizational restructuring in the rubber-related business (optimization of transaction terms and strong order intake)
- Promotion of key strategic businesses such as gold/silver slag recovery from incineration ash
- Progress in securing raw materials through strengthened sales activities targeting major manufacturers
- Growing demand for resource recycling of critical minerals from an economic security perspective
Risks
- Risk of fluctuations in ferrous scrap prices (downward pressure on Asian market conditions due to sluggish steel demand in China)
- Profit pressure from rising fixed costs such as labor and equipment costs (including base salary increases from improved employee treatment)
- Foreign exchange risk (a weaker yen supports export prices but also affects import costs)
- Impact of geopolitical risk on international supply chains (such as Middle East tensions)
- Risk of performance fluctuations at equity-method affiliates (Abiz and Fuji Eco Cycle)
- Risk of a sharp decline in non-ferrous metal and precious metal prices (deterioration in profitability from a pullback from current high price levels)
Last updated: September 25, 2025