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Sun Royal with a track record of 1.5 million used cylinders in 30 years
For over 30 years now Sun Royal has been handling exports of second hand high pressure gas cylinders, tanks, ASUs, and PSA units. “We are proud of our business involving the reuse and recycling of high pressure gas cylinders,” stated Keiichi Yoshino, a senior manager. The company has recorded exports totaling over 1.5 million high pressure cylinders and 1,000 tanks. The figure of 1.5 million cylinders is calculated on the basis of 50,000 per year. Medium to small size seamless cylinders and welded cylinders are included in this figure. Taking into consideration that annually 450,000 cylinders are produced in Japan, the figure of 50,000 cylinders exceeds this by 10%.
Regarding the countries where the products are exported to, in order of numbers Taiwan comes first, followed by the Philippines, Vietnam, Thailand, and Singapore. In addition to Asia, exports also go to the UAE, and Jordan in the Middle East. Tanks are also exported to Egypt. Taiwan had formerly been the chief receiving country but now sales to Vietnam are on the increase.
This record of sales testifies to the reliability of cylinders and tanks produced in Japan. There are severe standards based on the High Pressure Gas Safety Act covering the materials, manufacturing methods and re-inspection in detail. This leads to purchase by companies overseas of products which are safe, even though they are second hand. Of course it goes without saying that this is a result of the building up of a relationship of trust with gas producers and distributors abroad as well as the wealth of knowledge accumulated over the years of different laws and business customs of the various regions and countries. Merely glancing at these aspects would certainly not have led to a sales record of 1.5 million cylinders.
Not only abroad but in Japan too the building up a relationship with the local Japanese gas distributors is important. Where business is to be done the company makes its own estimate regarding cylinders and then collects them itself. It uses cranes when obtaining used tanks. Business can be done when relationships of trust are created in Japan and abroad, and a network is formed.
However, during the past few years, the company has put up a hard fight through a succession of major changes. The greatest problem has been the appreciation of the yen. A situation of a super high value of the yen going below the level of around 90 to the dollar lasted from July of 2010 to January of 2013. The exchange rate is in any case a hard problem to be handled through the efforts of a company. They got by somehow through striving for thorough rationalization but then another problem arose. This was the appearance on the scene of Chinese made cylinders. China became a leading industrial gas country. Just by virtue of the fact that preference is given to safety when it comes to high pressure gas cylinders, Chinese cylinder were given a wide birth even in Asia. However in addition to their low prices, they were produced on a scale several times greater than in Japan and year by year quality improved. Yoshino expressed how he really felt when he stated, “The low prices and improvement in quality are becoming a threat.”
Where the company is now again expanding is the reuse and recycling business of high pressure gas cylinders and systems. This year the company obtained a license for the disposal business which enables it to handle final disposal from the users.
With the consolidation and closings of plants in Japan, there are numerous instances of business coming in involving tanks being removed or moved to other locations. The company can now handle the disposal of concrete foundations as well as of cylinders and tanks which can no longer be used. “The know how regarding this will most certainly be of use in Asia where regional promotion is amazing,” noted Yoshino. This is because this is safe, reuse and recycling