As global challenges like climate change and resource scarcity intensify, the circular economy is no longer an option—it’s a necessity. Until now, companies worldwide, including ours, have operated within an economic system driven by mass production, consumption, and disposal.
However, this has led to a roughly threefold increase in global resource extraction from 1970 to the present. Alongside biodiversity loss, water stress, and rising waste generation, it has also contributed to the growth of greenhouse gas emissions.
In response to this situation, consumers and investors are increasingly demanding environmental responsibility, pushing governments and companies to transition from the traditional linear economy of “take, make, waste” to a circular economy that “efficiently and sustainably utilizes” resources.
To truly succeed in a circular economy, companies must go beyond product sales and focus on minimizing the use of new resources by extending product service life, collecting products after use, and adopting designs that enable reuse. Additionally, collaboration across value chains is essential, as no company can achieve circularity in isolation. Success requires working closely with suppliers, partners, and customers to build a fully circular system.
At Hitachi Industrial Equipment Systems (HIES), we’re meeting these challenges head-on with our "5R" approach—“Reman,” “Rebuild,” “Repair,” “Reuse,” and “Recycle.” For example, our remanufacturing initiatives restore used industrial equipment to same-as-new condition, reducing both resource consumption and CO₂ emissions. Our repair efforts extend product service life, while recycling programs help minimize waste.
At our Sagami site, we rebuild airends, the core components of medium-sized screw air compressors (7.5–240kW). Since starting this rebuilding program in 1985, we have rebuilt approximately 29,000 units, contributing to a reduction of about 5,500 tons of CO₂ emissions—a 57% decrease compared to new parts. In addition, from 2024, this initiative has been expanded to include large screw air compressors (60–770kW) manufactured at our Tsuchiura site, with an expected annual reduction of approximately 210 tons* of CO₂ emissions—a 97%* decrease compared to new parts.
The 5R initiative is also being actively promoted in the US, where Hitachi Global Air Power US, LLC has been operating a remanufacturing program for portable air compressors since 2013. We remanufacture key components such as airends, engines, frames, and air-cooling fans, which make up 60–70% of the total weight of the air compressors and offers remanufactured products with same-as-new performance and warranties.
These initiatives not only reduce waste and unnecessary material use but also embody the purpose-driven, sustainable work that today’s consumers value.
We are committed to the Hitachi Group's long-term environmental goal of achieving carbon neutrality throughout the entire value chain by FY2050. Our circular economy initiatives reflect purpose-driven and sustainable efforts that minimize the use of new resources, reduce waste, and lower customers' greenhouse gas emissions.
The Fourth Industrial Revolution, driven by the proliferation of IoT and AI, presents a significant opportunity to advance the circular economy by enabling the visualization and optimization of resource flows and processes. Additionally, the EU has developed a policy framework called the “Circular Economy Action Plan” to promote resource circulation, while Japan has begun implementing the "Act on Promotion of Resource Circulation for Plastics." We are collaborating with various companies to further promote the 5Rs and contribute to building a sustainable future.
Together, we can address the challenges ahead and pave the way for a more sustainable, purpose-driven world. Let’s work together to build a sustainable future for your business.
*Calculation based on the assumption that all rotors and casings can be reused.
For more information or to explore circular economy solutions at Hitachi Industrial Equipment Systems here:
- Eco-wakening: how consumers are driving sustainability | World Economic Forum:
https://www.weforum.org/stories/2021/05/eco-wakening-consumers-driving-sustainability/ - EU’s Circular Economy Action Plan:
https://environment.ec.europa.eu/strategy/circular-economy-action-plan_en
Manager, Environmental Strategy Dept., Sustainability Group,
Hitachi Industrial Equipment Systems Co., Ltd.
