TSUKASA PETCO: Driving the Future of Sustainable Plastics and Global Resin Trade

The resin and materials industry plays a crucial role in driving advancements across packaging, construction, and automotive sectors. With a global push for sustainability, there is growing demand for recycled and bio-based resins, alongside increasing environmental regulations and supply chain disruptions. Understanding these shifts provides valuable insights into how the industry is evolving and where future opportunities may emerge. As a trading company specializing in the chemical industry, what do you see as the most significant trends and challenges currently shaping the resin and materials sector?

With the global push for carbon neutrality, demand for conventional resins has been declining both in Japan and worldwide. To counterbalance this shift, expanding our focus on environmentally sustainable resins—including bio-resins, recycled resins, and recyclable resins—is essential.

One of the key challenges in packaging is that it is often made from multiple materials, making recycling more difficult. Developing single-material packaging solutions that facilitate easier recycling is crucial for the industry's sustainability efforts.

At TSUKASA PETCO CORPORATION, we are prioritizing bio-resin and recycling initiatives. Our core business involves importing PET bottle resin materials and bio-resins, and we are committed to integrating recycling considerations into our procurement strategy.

 We are the agents for Taiwan's Nan Ya Plastics Corporation and Formosa Chemicals & Fibre Corporation (FCFC), which supplies virgin crude oil-based recycled PET bottle materials, polyolefin resin, and ABS. To further strengthen our bio-resin business, we have recently expanded our team, hiring two new specialists with expertise in sustainable materials.

Over the next 15 years, Japan is expected to undergo a significant demographic shift, with an aging and declining population leading to labor shortages and a shrinking domestic market. By 2040, the population is projected to decrease by more than 10% compared to current levels. How do you see this demographic shift impacting your business? What challenges does it present, how are you navigating them, and do you see any new opportunities emerging from these changes?

It’s true that a declining population will lead to fewer consumers and a contracting market. However, from an industrial perspective, Japan’s shrinking workforce will pose a challenge for the domestic chemical industry, which may struggle to maintain stable production levels.

As a trading company, we see this as a major business opportunity rather than a limitation. Since 95% of our product portfolio is imported, we are well-positioned to fill supply gaps as Japanese manufacturers increasingly turn to foreign materials. Many domestic companies that once relied exclusively on Japanese materials are now shifting toward imported alternatives, and we can offer them a wide range of sourcing options to meet their needs.

This transition represents a significant shift in market dynamics. In the past, companies only considered foreign materials when they were cheaper than domestic alternatives. Now, however, even at a higher price point, many are prioritizing supply stability over cost, further increasing demand for imported materials—a trend that plays to our strengths as a leading trading company in the chemical sector.

Founded in 2006, your company is relatively young compared to many of Japan’s general trading firms, whose histories often span centuries. Despite this, you have successfully carved out a niche in the trading and development of resin materials, chemicals, and sustainable solutions. With a commitment to high-quality products and innovation, you play a key role in industries such as packaging, automotive, and construction, with a strong emphasis on environmental sustainability. As a younger player in this specialized industry, what competitive advantages do you bring? What specific role or unmet need have you been able to address that sets you apart from more established trading companies?

I founded the company in 2006 after spending over 20 years in the chemical business at a major trading firm. During that time, I built strong relationships with suppliers in Taiwan and Korea as well as with customers in Japan.  The pivotal moment was the great support we received from Nan Ya Plastics when we became independent. They assured me of his support, and with that foundation of trust and relationships, the business was born.

One of our key roles is acting as a gatekeeper for globally recognized plastic suppliers such as Nan Ya Plastics and Formosa Chemicals & Fibre Corp. (FCFC). In fact, we are officially certified as an agent for the polyester division of Nanya Plastics which has allowed us to earn the trust of Japanese customers by ensuring reliable access to high-quality materials from these leading global suppliers.

To provide some background on the establishment of the company, the reason Nanya Plastics gave us such strong support was to become independent because major trading firms typically handle multiple manufacturers’ products. As a result, supplier selection can vary depending on market conditions, making it difficult for any single manufacturer to ensure consistent customer relationships.

Nan Ya Plastics sought greater customer stability in Japan, so we established ourselves as their dedicated distributor in the market. For the first 15 years, we exclusively handled Nan Ya Plastics products,  As Nanya Plastics does not have a sales company in Japan, we have served as the only distributor in Japan, acting as Nanya Plastics' sales force in Japan. While we have recently diversified our portfolio, our long-standing partnership with Nan Ya Plastics remains a core part of our business.

What was the reason for diversifying suppliers, and are you also looking for new suppliers to integrate into your portfolio?

Yes, we are open to new partnerships. PET resin will always be sourced from Nan Ya Plastics, but for other resins that they don’t make, we are constantly looking for new partners.

You supply resin raw materials to a diverse range of industries, including packaging for beverage bottles and cosmetics, as well as the automotive and electronics sectors, among others. In your view, which industries in Japan have the greatest demand for the resin raw materials you provide? Additionally, how are you positioning yourself to become the leading importer for these companies?

The packaging industry is our biggest growth market, followed closely by construction. In construction,  One of the important materials we supply to the construction industry is EOA, which is used as a crude material for PCA. PCA is added to cement to improve its durability and performance. We provide a significant volume of this material to the industry.

Beyond Japan, we also operate in Singapore, where we handle international trading outside of the Japanese market.  For example, we arrange direct exports from South Korea, Taiwan and China to Europe, the United States, ASEAN, Southwest Asia, Oceania and South America without going through a Japanese corporation.

Our greatest strength lies in the strong relationships we have built with suppliers, which has allowed us to establish a strong presence in the industry and effectively meet the needs of our clients across different markets.

Are you looking to expand your supplier network into new industries? Additionally, do you see any emerging sectors that may have growing demand for the chemicals and materials you provide?

We are expanding our business into the export of Japanese food and water. Our strong relationships with beverage and food suppliers—built through our provision of PET bottles to the industry—have created new opportunities in this space. We are now partnering with water bottlers around Mt. Fuji to export Japanese bottled water to Taiwan and Southeast Asia.  We will also be working in the food and foodstuff fields in the future, we will include select food products in our export portfolio as well.

Additionally, through our network in the resin supply chain for the furniture industry, we connected with a Taiwanese OEM furniture manufacturer that produces for high-end European and U.S. brands. Previously, they exported from their Chinese factory to the U.S., but due to high tariff impositions, that route is no longer viable. As they seek to enter the Japanese market, we are positioned to act as their distributor, facilitating their transition and expansion.

In addition to your role as a trader, you are actively involved in product development, particularly through collaborations with manufacturers and partners. By leveraging your extensive industry experience and expertise, you create innovative, high-value products that capitalize on the unique knowledge and strengths you have built over time. What are your key strengths in product development within the chemical industry? Additionally, how do you leverage your experience as a trader to drive your own product innovation?

We serve as a bridge between overseas manufacturers and Japanese companies that possess licenses and advanced technologies. While I cannot disclose specific details, we recently facilitated a technology licensing agreement between Nan Ya Plastics and another company, enabling Nan Ya to produce a high-end specialty chemical. As a result, we now act as the sole distributor of this specialty chemical in the Japanese market, and its use has expanded into other ASEAN markets as well.

Looking at the Japanese chemical industry, many domestic chemical companies have been discontinuing commodity chemical production. A notable example is Mitsui Chemicals, which ceased PET bottle material production in October last year, marking the end of new bottle material manufacturing by Japanese firms. Now, all PET bottle materials in Japan are procured from Taiwan, South Korea, and Southeast Asia. While these suppliers can provide commodity chemicals, they often lack the advanced technology needed to produce specialty chemicals.

Although Japanese companies may have stopped manufacturing, they still hold the technology and expertise. Our role as a trading firm is to bridge these gaps, facilitating new production capabilities by connecting Japanese and global manufacturers. Moving forward, we aim to strengthen these partnerships and further expand our role in global supply chain development.

In 2015, the United Nations adopted the 2030 Agenda for Sustainable Development, setting a global framework for environmental sustainability and establishing a long-term goal of carbon neutrality by 2050—a commitment that Japan actively supports. Your company is working to commercialize Polyhydroxyalkanoate (PHA), a plant-derived biodegradable polyester plastic extracted from algae. This material naturally degrades in marine environments and is designed to minimize both cost and environmental impact. What does environmental sustainability mean to your company, and why have you made the commercialization of PHA such a high priority?

Our bioplastic, currently in active research and development. This plant-derived biodegradable plastic, produced using algae, offers a sustainable alternative to conventional plastics.

We hold the exclusive license for this technology in the Japanese market and are collaborating with Mr. Reiji Masuda at Kyoto University’s Maizuru Fisheries Research Station to replicate and refine the process in Japan. To accelerate early commercialization, a Biotechnology Division was established within Kyoto Research Park, where the Kyoto Municipal Institute of Industrial Technology is based.

While 70% of the Earth’s surface is covered by oceans, much of the focus on resource utilization has been on land-based materials. However, marine resources offer a vast, untapped potential for achieving non-petroleum-derived, carbon-neutral, and environmentally friendly plastics.

Algae, seaweed, and other marine resources absorb twice as much carbon dioxide as terrestrial plants. A prime example of this can be seen in the North Sea’s wind power generation sites, where algae are embedded to stabilize the ecosystem and absorb CO₂.

Our goal is to harness these marine resources and develop effective conversion technologies to support carbon neutrality, offering a sustainable alternative to conventional plastics.

Which applications do you believe this biodegradable plastic could be used for?

The earliest demand for biodegradable plastic will likely come from the packaging industry, where it is already being used despite high production costs and limited capacity. In contrast, industries such as automotive manufacturing require high-functionality plastics, which will take longer to adopt biodegradable alternatives.

Initially, demand will be driven by consumer applications, but over time, it will expand into industries requiring more durable materials. We have developed a roadmap for commercialization, beginning with packaging, followed by industrial components, then automotive parts, and ultimately, medical devices.

Trading companies in the chemical industry are increasingly adopting new technologies to enhance operations, expand service offerings, and strengthen competitiveness. Innovations such as digital platforms and AI-driven tools, including advanced data analytics, allow companies to predict market trends, manage demand fluctuations, and optimize raw material sourcing. Additionally, tools like Life Cycle Assessment (LCA) software are helping track environmental impact and support sustainability goals. How is your company leveraging technology and digital tools to enhance your services and improve efficiency?

We are actively utilizing IoT technology and AI to gather and analyze data, integrating Japanese software company Sotas Co., Ltd. software to build a comprehensive product database. This database includes detailed chemical properties, allowing us to quickly match customer requirements with the most suitable material options. By streamlining this process, we can enhance efficiency and provide faster, more precise solutions to our clients. We plan to evolve this platform and launch an e-commerce business for chemical products, centered on the ASEAN market, through a joint venture between our company and Sotas.

On the AI front, one of our key applications is predicting currency exchange rate fluctuations. Given that we work with foreign suppliers in U.S. dollars while selling in Japanese yen, it is crucial to hedge against currency risk. In the past, I personally handled exchange rate predictions, but my forecasts often proved inaccurate—whenever I anticipated a trend, the opposite would occur. Now, by leveraging AI-driven forecasting models, we can make more reliable and data-driven decisions, improving our currency risk management strategy.

Duckweed-based technology offers a sustainable solution with high protein productivity and starch conversion potential. By optimizing cultivation and integrating bioprocessing, it supports eco-friendly materials and food innovation. How does TSUKASA PETCO plan to scale its duckweed-based technology to make sustainable food production and biodegradable plastics commercially viable while addressing the high costs of biomass cultivation?

We are actively exploring the use of aquatic plants, particularly duckweed, as a sustainable and innovative resource. This small yet highly reproductive plant boasts a higher protein productivity than soybeans and can yield up to 30% starch under optimized growing conditions. With its well-balanced nutritional profile, duckweed is gaining attention as a low-impact food ingredient with significant environmental benefits.

However, large-scale cultivation and biomass accumulation remain cost-intensive. To address this, we are refining the selection of species, optimizing cultivation systems, and enhancing growth control methods. Additionally, by integrating duckweed with specialized microorganisms, we leverage proprietary technology to convert starch and other polysaccharides into biodegradable plastics and develop advanced polymer compounds with enhanced functionality.

Looking ahead, TSUKASA PETCO, Ltd. aims to drive sustainability by creating a wide range of eco-friendly products through resource circulation. As our technology advances, we aspire to play a pivotal role in tackling the microplastic crisis and promoting sustainable food production, contributing to a healthier planet and a more prosperous future.

Partnerships are at the core of the trading industry, playing a vital role in your operations—whether through collaborations with manufacturers for product development, procurement partnerships for imports and exports, or serving as a supplier to companies in Japan and overseas. Are you looking to expand your international partnership network? If so, which types of partnerships and which countries or regions do you see as the most valuable for your future growth?

We are constantly seeking new partnerships to expand our business scope and enhance our offerings. While our major suppliers are based in Southeast Asia, we are now looking to expand into the U.S. and European markets to source value-added specialty chemicals.

Since we currently do not have a physical presence in the U.S. or Europe, we aim to leverage our Singapore office as a gateway to access potential suppliers in these regions. Additionally, demand for commodity chemicals remains strong, and we see further opportunities in strengthening our partnerships with Chinese manufacturers to meet this ongoing need.

Your company has experienced remarkable growth, with a current turnover of approximately JPY 14 billion. Looking ahead, let’s imagine we return for another interview five years from now. What dreams, goals, or objectives would you like to have achieved by then? Additionally, what message would you like to convey to our readers, and how would you like your company to be perceived on the global stage?

I don’t have a specific numerical target for that time frame yet, but my primary goal is to commercialize our biodegradable resin and collaborate with Asian manufacturers to expand production capacity for sustainable materials. In addition, with the goal of establishing e-commerce as a sales channel in the ASEAN region in five years, we will expand our customer base through online platforms and provide services that meet the needs of each region.

While plastics and chemicals remain our core business, we also aim to diversify into new sectors, such as food, to create synergistic growth opportunities. Major trading firms began with limited trade, such as rice, before evolving into general trading giants. While achieving that scale within five years isn’t realistic, my goal is to broaden our business scope and strengthen our capabilities, driving organic growth into new markets and industries.

For more information, please visit their website at: https://t-petco.co.jp/en/

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