ORIX to Invest in EcoCycle Corporation, a General Soil Cleaning Service Company
May 28, 2019
TOKYO, Japan - May 28, 2019 - ORIX Corporation (“ORIX”) today announced that it will invest in EcoCycle Corporation (“EcoCycle”), which is involved in the development, manufacture and sales of original bio detergents as well as soil cleaning work. It will conclude a share transfer agreement with current shareholders and obtain a majority of issued shares in the company in June this year.
EcoCycle offers total solutions related to soil contamination including the manufacture and sale of bio detergents developed by the company, soil testing, cleaning work and environmental consulting. It possesses particularly strong technological ability in the field of in situ cleaning with bio detergents, for which it has been highly evaluated. This includes winning the Environmental Minister Prize at the 2017 Environmental Awards*1, hosted by organizations including the National Institute for Environmental Studies.
ORIX will utilize its domestic sales network and act as a bridge between companies with plants and the like, real estate operators and general contractors etc. while also utilizing the said technology in its real estate business.
The revision of the Soil Contamination Countermeasures Act*2 in April 2019 resulted in rules related to soil contamination becoming stricter. For example, the area to be targeted for testing has been reduced in size. In light of these developments, social demand for soil testing and soil cleaning is increasing. Meanwhile, when performing removal via excavation, which has conventionally been the main method used, sites for burying the contaminated soil must be secured and countermeasures must be implemented to address the risk of dispersion and leakage during transport (secondary contamination). In situ cleaning involves cleaning the soil without having to transport it out of the area. It is garnering attention for not only placing less burden on the environment, but also shortening processing time and reducing costs.
ORIX will continue to invest in companies that have strongpoints in the fields of ESG (environment, social, governance) together with a stable business base and high quality technology and services. Moreover, it will leverage the specialized knowledge and sales networks of the ORIX Group to support the growth of companies in which it invests.
*1 National Institute for Environmental Studies, “Environmental Awards”
*2 Ministry of the Environment, About the Revised Soil Contamination Countermeasures Act
|Address||2-28-1 Hama-cho, Nihonbashi, Chuo-ku, Tokyo|
|Name of representative||Shrihari Chandraghatgi|
|Description of business||Soil environment testing, cleaning work, development, manufacture and sales of detergents, water processing, subsurface investigation|
|Date of establishment||May 1999|
|Business locations||Seven domestic locations, three overseas locations (Shanghai, Taiwan, Thailand)|
|Number of employees||41 (as of February 2019)|
|Revenue||Approx. 1.7 billion yen (as of period ending February 2019)|
EcoCycle was established in 1999 in Toyama prefecture, Japan. Since its establishment, it has engaged in the development of original bio detergents and holds multiple patents both within and outside Japan. In 2013, it moved its main office to Tokyo. Currently, it offers total solutions related to soil contamination including detergent operations as well as contaminated soil testing, cleaning and consulting.
Corporate Planning Department
ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group which provides innovative products and services to its customers by constantly pursuing new businesses.
Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into lending, investment, life insurance, banking, asset management, automobile related, real estate and environment and energy related businesses. Since entering Hong Kong in 1971, ORIX has spread its businesses globally by establishing locations in 37 countries and regions across the world.
Going forward, ORIX intends to utilize its strengths and expertise, which generate new value, to establish an independent ORIX business model that continues to evolve perpetually. In this way, ORIX will engage in business activities that instill vitality in its companies and workforce, and thereby contribute to society. For more details, please visit our website: https://www.orix.co.jp/grp/en/
(As of March 31, 2019)
Caution Concerning Forward Looking Statements:
These documents May contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results that differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under “Risk Factors” in the Company’s annual report on Form 20-F filed with the United States Securities and Exchange Commission and under “(4) Risk Factors” of the “1. Summary of Consolidated Financial Results” of the “Consolidated Financial Results April 1, 2018 – March 31, 2019.”
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