Otsuka Pharmaceutical Co., Ltd. (Otsuka) signed an agreement with the Saga Eastern Environmental Facilities Association (Administrator: Yoshihito Mukaikado, Mayor of Tosu City; Secretary-General: Hirokazu Fujikawa), Kumamoto City Recycle Center, Inc., and Toyota Tsusho Corporation on March 14 to promote resource circulation and horizontal recycling of PET bottles in an effort to build a sustainable society. Otsuka will implement a "Local Production and Local Recycling" initiative at the Saga Factory, utilizing PET bottles collected in the surrounding area as raw materials for new PET bottles. The company aims that this initiative will further promote local community collaboration in bottle-to-bottle*¹, the horizontal recycling of PET bottles.

■Implementing Local Production and Local Recycling initiatives for PET bottles in two cities and three towns in Saga Prefecture

Through a comprehensive partnership agreement with Saga Prefecture, Otsuka collaborates on initiatives to support and promote residents' health and well-being. Additionally, the company works with Yoshinogari Town, where its Saga Factory is located, to provide product support in times of disaster. The factory has also been actively engaged in energy conservation, waste recycling, and local beautification efforts.

The Saga Eastern Environmental Facilities Association is responsible for collecting PET bottles sorted and disposed of in two cities and three towns: Tosu City, Kanzaki City, Yoshinogari Town, Kamimine Town, and Miyaki Town. Through this agreement, the four parties will work together to promote a "Local Production and Local Recycling" system, utilizing PET bottles collected from these municipalities, including the one where the factory is located, as raw materials at Otsuka's Saga Factory. Moving forward, the association will also collaborate on awareness and educational initiatives to encourage resource circulation among local residents.

■Promoting bottle-to-bottle recycling initiatives

Otsuka has signed resource circulation agreements with 28 municipalities*², including Tokushima Prefecture, where the Otsuka group was founded. In February 2025, the company also signed an agreement with Fukuroi City, Shizuoka Prefecture -- home to one of its factories -- to promote a "Local Production and Local Recycling" initiative for PET bottles. Otsuka also collaborates with local communities and organizations to advance bottle-to-bottle recycling through awareness campaigns and the collection and recycling of used PET bottles at large-scale events such as marathons and outdoor live music events.

1. ※1A circular recycling system in which PET bottles are recycled and used again as new PET bottles.
2. ※2As of March 14, 2025.

■Environmental initiatives at Otsuka's Saga Factory

Since its completion in May 1986, Otsuka's Saga Factory has been producing beverages, food products, and pharmaceuticals in a lush, green environment. The factory is committed to environmentally responsible manufacturing, including the production of PET bottle beverages designed with sustainability in mind, such as those using 50% recycled PET resin. And by transitioning all of its electricity usage to renewable energy, the facility has reduced CO₂ emissions by 8,000 tons annually, equivalent to the yearly emissions of approximately 3,000 households.

【Major awards】

・2003: Received the METI (Ministry of Economy, Trade and Industry) Minister's Award for Factory Greening

・2011: 3Rs Promotion Council Minister's Prize for contributions to 3R promotion

Reference: Otsuka's sustainability initiatives toward a circular economy

Otsuka operates its business with a corporate philosophy centered on contributing to health. As part of this mission, the company has identified four key material issues (materiality) and is actively working to address these challenges while striving for a sustainable society.

One of these material issues is reducing environmental impact, with a particular focus on advancing the Circular Economy (resource recycling and conservation). Under the Otsuka Group Plastics Statement, the company is implementing various initiatives to achieve zero fossil resource-derived materials and zero waste discharge into nature. These efforts include promoting bottle-to-bottle recycling, introducing PET bottles made from recycled PET resin, expanding label-free bottles, reducing material weight, and adopting alternative materials. By enhancing resource efficiency across the entire value chain, from raw material procurement to production, logistics, and sales, Otsuka aims to build a sustainable coexistence with both natural and biological resources.

Otsuka Pharmaceutical sustainability - circular economy

• https://www.otsuka.co.jp/en/sustainability/circular-economy/

Otsuka Pharmaceutical sustainability handbook（in Japanese）

• https://www.otsuka.co.jp/sustainability/pdf/handbook.pdf

Based on the corporate philosophy of 'Otsuka-people creating new products for better health worldwide', Otsuka Pharmaceutical aims to contribute to the health and well-being of people around the world.