Computer Giants Set to Begin Computer Recycling in Japan

Hitachi Ltd. and IBM Japan Ltd. are planning to jointly start personal computer recycling services for corporate clients as soon as they receive the necessary distribution licenses from the Japanese government.

"We expect to get the license by the end of April, although the exact timing is not clear yet," a Hitachi spokesman said.

The alliance is aimed at lowering the costs involved, including costs for collection, transportation to recycling centers, and recycling, by increasing the recycling volume.

The move follows the putting into effect of a recycling law last April requiring computer makers to recover and recycle discarded PCs.

"We are preparing for joint recycling services with Hitachi, including information systems," said a spokeswoman at IBM Japan.

Key aspects of the tie-up will be the joint distribution of discarded PCs and the joint use of information systems to facilitate all recycling flows.

The two companies said they are also considering forming a tie in the recycling of home-use PCs.

From the fall of 2003, individual buyers of new PCs will be charged recycling fees at the time of purchase.

PC makers are accelerating their efforts to reduce such recycling costs in order to maintain price competitiveness, as recycling fees are directly linked to retail prices. Dow Jones