ITOCHU Announces Signing of Comprehensive Business Alliance with Daikin Industries, Ltd. Regarding Business for the Horizontal Recycling of Commercial Air Conditioners
July 9, 2026
ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter “ITOCHU”) announced today that it has signed a comprehensive business alliance agreement with Daikin Industries, Ltd. (headquartered in Kita-ku, Osaka; Naofumi Takenaka, President and COO; hereinafter “Daikin”). The agreement was signed using the framework of the Act Concerning Sophistication of Recycling Business, etc. to Promote Resource Circulation (Type 1)*1 with the goal of increasing the sophistication of the recycling of resources in commercial air conditioners and the horizontal expansion of the use of recycled materials.
The transition to a circular economy is progressing, and the importance of horizontal recycling, a process in which the resources contained in equipment are used again in new products, is increasing in the field of commercial air conditioners. However, to stably use recycled materials to make products, the entire supply chain must be managed, including traceability and the evaluation of the quality of materials. Accordingly, it is necessary to establish a system for the integrated management of processes including the collection of products, the recycling of materials, their use in products and quality assurance.
ITOCHU and Daikin will implement processes from the collection of no-longer-used commercial air conditioners to the recycling of materials and their use in products in an integrated manner, with the goals of reducing environmental impact and establishing a sustainable supply chain. The two groups will leverage their strengths to do this, including the ITOCHU Group's knowledge of recycling, networks, and data management capabilities and the Daikin Group's product technologies and quality assurance capabilities.
Overview of the initiative
・The two groups will cooperate in the integrated management of the entire resource recycling process, from the collection and dismantling of commercial air conditioners to the sorting of the materials, the recovery of refrigerant, the evaluation of the quality of materials, the recycling of materials, and the commercialization of products.
・They will gradually expand the diversity of the materials that are reused, including metals (such as iron, copper, aluminum, and rare earth metals), plastics (exterior and interior-use resins and fans), electronic components, and fluorocarbons
・They will establish a comprehensive system for obtaining certifications under accreditation systems that includes logistics, data management, compliance with laws, and cooperation with customers.
・They will move forward with the phased nationwide expansion of business while ensuring compliance with regulations and quality requirements
The initiative will start with the implementation of the horizontal recycling business and acquisition of legal certifications in the domestic market, and the plan is to gradually expand the business nationwide while ensuring compliance with quality and regulatory requirements. Individual contracts will be signed regarding the targeted models of air conditioners, quantity, quality standards, composition ratio, and other matters to facilitate the quick expansion of the business.
In line with the ITOCHU Group's mission, which is its sampo-yoshi spirit, ITOCHU is pushing forward with initiatives to enhance its contribution to and engagement with the SDGs through business activities while listening to the opinions of its diverse stakeholders, including consumers, society, and the market. Working with Daikin, its partner in this alliance, ITOCHU will move forward with decarbonization initiatives to achieve their social implementation as quickly as possible and contribute to global decarbonization efforts.
Roles of each company in the business alliance
◆ Major roles of the ITOCHU Group
| Supporting the submission of applications for certifications under accreditation systems | Supporting the obtainment and renewal of type 1 certifications in line with the Act Concerning Sophistication of Recycling Business, etc. to Promote Resource Circulation |
|---|---|
| Building a nationwide recycling network | Selecting and managing companies cooperating in recycling, and coordinating the signing of contracts with emitters and subcontractors |
| Logistics, collection and transportation | Arranging waste collection and transportation from all over Japan to establish an efficient logistics network |
| Building a traceability system | Recording and managing sources, treatment processes, composition ratios, and certificates of the conformity of recycled materials |
| KPI review | Building a base for the calculation of recycling rates and CO2 reductions and implementing operations and assessments |
◆ Major roles of the Daikin Group
| Designing materials and processes | Assessing the properties and performance of recycled materials to design production processes from the adoption of products to their mass production |
|---|---|
| Quality assurance | Creating recycled material acceptance criteria and conducting acceptance inspections and production process management |
| Using collection and maintenance networks | Cooperating with installation partner companies to share delivery, removal and collection routes when replacing equipment |
| Procurement/supply chain | Facilitating the stable procurement of recycled materials |
| Developing and selling products | Planning, selling, and labeling products using recycled materials and conducting PR activities targeting industries and consumers |
| Cooperating with markets and customers | Expanding the business by proposing solutions to consumers, installation companies and building owners |
Outline of Group companies participating in this initiative
◆ ITOCHU Group companies
1) ITOCHU Metals Corporation
Selling reefer containers from Daikin Industries and supplying non-ferrous (aluminum and copper) materials for air conditioners for household or commercial use. Collecting and recycling metal materials derived from commercial air conditioners and facilitating collaboration between arterial and venous industries throughout the supply chain together with the Daikin Group
2) WingArc1st Inc.
Providing data visualization and utilization solutions in which the ITOCHU Group holds a 21.98% equity stake (TSE Prime Market). Selling the EcoNiPass system for aggregating data about greenhouse gas emissions featuring the integration of data between different companies
◆ Daikin Group companies
1) Daikin Sunrise Settsu Co., Ltd.
A special subsidiary based in the Kansai area that engages in the dismantling and segregation of equipment that has been disposed of and the refurbishment of circuit boards.
It simultaneously creates secure employment for people with disabilities and increases the sophistication of resource recycling measures.
2) Daikin Air technology and Engineering Co., Ltd.*2: A company that installs, replaces, and removes commercial air conditioners
3) Daikin Applied Systems Co., Ltd.*2: A company engaged in engineering and the comprehensive maintenance of air-conditioning equipment
4) Daikin HVAC Solution companies (ten companies across Japan)*2
Daikin Industries product sales companies engaging in the sale, installation, and maintenance of commercial air conditioners in an integrated manner
- *2: Waste and refrigerant generated in the business activities of each company, including the sale, installation, maintenance, and engineering of commercial air conditioners, will be included in this initiative to achieve a sophisticated recycling system.