Environmental Technologies Industries

Environmental Technologies Industries

Market Research

Environmental/Pollution Control Equipment for Japan

Summary

The Japan Society of Industrial Machinery Manufacturers announced that the 1996 production of environmental/pollution control equipment by their 146 member firms totaled 1,570 billion yen, or about $14.4 billion, down 3.2% from the previous year.

While the production in most sub-sectors of pollution control equipment declined in the range of 11.2% (solid water treatment) to 2.5% (noise pollution control) as compared with the 1995 level, only equipment for waste water treatment recorded an increase 9.4%.

The Society attributes the drop in the overall 1996 production to weak investment among private user sectors and the demand having run its course in the major sub-sectors such as solid waste treatment and disposition equipment. About 4% (62.8 billion yen or $576 million) of the total production went to exports.

2. According to the Japan Society of Industrial Machinery Manufacturers (JSIMM), the production of pollution control
equipment in 1996 by its 146 member manufacturers was 1,570 billion yen (or approximately USD 14.4 billion at 109 yen to one dollar), which was 3.2% drop from 1995 level. The JSIMM's statistics on pollution control equipment production in 1996 are broken down into the following 4 major categories:

Category	Production (Million yen)	Pct to total

Air Pollution Control	288,737	18.4%
Waste Water treatment	671,480	42.7%
Solid Waste Treatment	601,017	38.3%
Noise & Vibration Control	9,470	0.6%
Total:	1,570,704	100%

Of these categories, only the production of waste water treatment equipment showed an increase, by 9.4%, from the previous year. The production decline in all other sectors, air pollution control, solid waste treatment and noise & vibration control was 10.3%, 11.2% and 2.5%, respectively, as compared with the 1995 level.

The JSIMM reported that 74.3% (1,167 billion yen) of the 1996 production went to the purchase by government sector and 21.7% (341.3 billion yen) was by private sector. The remaining 4% (62.8 billion yen, or $576 million ) was exported. The overwhelming share of the government sector is due to the fact that in Japan, the responsibility for disposal of general waste (vs industrial waste), human waste, and sewage treatment rests with municipalities.

3. The JSIMM is comprised of 273 Japanese manufacturers of industrial machinery, of which approximately 150 are suppliers of environmental/pollution control equipment and systems, the largest number of manufacturers of this kind in a single industry association. In our opinion, the association probably represents at least 90% of Japan's production of equipment and systems of this category. Of these 150 suppliers, those having a paid-in-capital exceeding 1 billion yen (about $9.2 million dollars) are approximately 70, accounting 48% of the total environmental/pollution control equipment manufacturers belonging to the JSIMM.

4. The Post has prepared this report as we receive frequent inquiries on Japanese market for environmental/pollution control equipment with respect to size and competitive situation. For further information, please contact David Gossack, Commercial Attache, or Kozo Nakada, Industry Specialist, at 81/3/3589-4235 (fax).

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