Innovative Circular Economy Partnership by Tsuginohi Inc. from Okayama

Overview of Tsuginohi Inc.

Tsuginohi Inc., based in Okayama, is making significant strides in the circular economy with its focus on revitalizing the automotive industry through the reconditioning of used parts. Founded with the mission to create a world that sustains Earth’s resources, the company has successfully integrated a circular infrastructure model into over 5,000 maintenance and logistics operations nationwide.

Recent Developments

In March 2026, Tsuginohi officially registered as a declaration company under the "Partnership Building Declaration," a government initiative supported by the Cabinet Office, Fair Trade Commission, and Small and Medium Enterprises Agency. This initiative aims to promote fair trading practices among businesses, focusing on mutual respect in supply chains and consideration for price transfers.

Challenges in the Current Industrial Landscape

The local maintenance and logistics sectors are currently facing significant challenges, such as skyrocketing parts costs, a labor shortage, and increasing waste disposal expenses. The fundamental issue lies not in the capabilities of the workers or the technologies available but within the entrenched trading structures that favor more powerful entities dictating prices, leaving weaker counterparts with little choice. If fair compensation is not provided, operations become unsustainable, leading to a halt in the cyclical process of the supply chain.

Restructuring Trading Dynamics

Tsuginohi’s ongoing inquiry into these entrenched structures is aimed at restoring value not just to waste but to the trading relationships themselves. Since its inception, the company has demonstrated through its figures that reducing waste generates profit. For example:

- Reconditioned DPFs show a reduction of CO₂ emissions by approximately 60% compared to new parts.
- Clients have seen an average parts cost reduction of 36%.
- The cumulative reduction in CO₂ emissions surpasses 2,000 tons.

These statistics serve to underline how businesses can shift towards a more regenerative model that benefits all parties involved.

A Permanent Commitment

The registration as part of the Partnership Building Declaration is not just a superficial commitment for Tsuginohi but a reflection of a transformative shift in business mentality. The focus is moving from immediate sales figures to long-term planning, where the company is not only preparing for next year’s financial targets but aims to establish a sustainable foundation for years to come.

The company plans to implement actions stemming from its declaration, including the expansion of production facilities, improving productivity, and fair pricing discussions across the entire supply chain. This initiative signals that Tsuginohi has reached a point where it can act decisively, embedding these principles into its operational fabric rather than merely verbally committing to them.

A Model for Local Resilience

The circular model presented by Tsuginohi transcends the narrative of a single company's growth. It encapsulates a vision that even small to medium-sized enterprises can engage in circular economy practices, advocating for a cleaner industrial landscape. By fostering a balance where partners are regarded as equal stakeholders in the process, the company is paving the way for a sustainable future.

If this structure gains traction throughout Japan, it could become a cornerstone for a new phase of regional revitalization, ensuring that firms embody sustainability and circularity at their core.

Vision for the Future

As stated by CEO Seima Kurokawa, "If logistics stop, life halts." Returning value to trading relationships is the next frontier in sustaining this narrative of circularity. The belief is that a future cannot thrive in systems where the stronger party imposes limitations on the weaker. Creating a framework where all participants are rewarded is vital for continuing the cycle. Tsuginohi pledges that its evolution and societal commitment through the Partnership Building Declaration are steps toward a more equitable future.