“HighChem’s C1 Business” The Reason for Engaging in “Fashion & Apparel”
Interview with Yuichi Taka, Head of the Sustainability Department
——The Fashion & Apparel division was established in HighChem in 2023, which surprised many. What does C1 Chemical mean in this field?
Director Taka: The question is why apparel? The trigger was indeed PLA (Polylactic Acid). We started from how to sell PLA. Various challenges arose while working on PLA, but the biggest challenge was cost. Despite being developed in Japan 10 years ago, PLA did not become popular because, although its physical properties are almost the same as polyester, the cost is 10 to 20 times higher. In recent years, the cost has been gradually decreasing due to the global trend towards carbon neutrality and mass production in China, but the cost issue still remains. In such a situation, when we tried to add value to PLA and develop it, apparel was one of the high-quality subjects. However, I felt that it was a bit weak to position it as a new business for the entire company just by processing PLA somehow.
Even in Apparel Business, the Starting Point is C1 Chemical
At that time, a NEDO plan to produce paraxylene from CO2 started in the C1 business. At first, I wondered what paraxylene was, as I’m not a chemist, but when I heard that it’s one of the raw materials for polyester, I thought, “Then we can make half of the clothes from CO2.” And the remaining half, ethylene glycol, can also be realized with C1 technology. In other words, if we have C1 chemical, we can make clothes from CO2. Furthermore, I found out that C1 chemical is heavily involved in the technology needed to solve the current strength and heat resistance issues of PLA. So, I thought we could maximize the value to society by eventually making apparel the outlet. Even in the apparel business, the starting point of the idea is definitely C1 chemical, which is really at the core.
Fashion is naturally present in life and everyday life, but unlike bags, straws, and plastic bottles that are just consumed, everyone uses it as a means to embody their way of life, thinking, and values. There aren’t many such things, and there is value as a large business because it is not something that is just consumed and thrown away.
Another thing is that the apparel business is based on European high brands. First of all, their characteristic is that they buy even a single thread based on the story and concept rather than the price. This is because damaging their brand value is their biggest risk, and the slight difference in raw material prices is not a big deal compared to that. And now, they are trying to permeate the value of carbon neutrality in the world of apparel. In order to fulfill their carbon neutrality, it is important to develop and disseminate new materials that have enough cost and scale to take root in life, as well as the power to create content. Therefore, the development of the process of developing PLA from CO2, the construction of a strong supply chain such as clarifying the amount of CO2 reduction in each material and processing process, and the absorption of the cost of these high-value-added supply chains in the European market, we at HighChem would like to try to open a base in Paris or Milan in the future.
Returning to the question of why HighChem is focusing on the apparel business, the C1 chemical business started up and led to the catalyst business and battery business. And the culmination of that is the apparel business. The world has been talking about carbon neutrality for a long time, but there are no companies that have been able to build a supply chain that changes the core of the apparel industry. In that respect, HighChem has a chance to build a supply chain starting from the material and disseminate it. I think it’s something that people in the apparel industry can’t possibly think of. I think it’s something that HighChem can do because it seriously considers how to replace what has been with CO2, not only in terms of technology but also in terms of economic rationality.
What we are currently working on is to introduce PLA to the market as an entry point and send new materials to the market. And of course, there is a possibility that we will develop our own brand as an evolution of the "clothes you can throw away" that we presented at the previous exhibition. In the case of PLA, it will eventually lead to thermal recycling. The idea of thermal recycling may not be very well accepted in Europe, but in other countries, a subscription-based business that incorporates this concept into business would be profitable enough. Again, it is difficult for other Japanese apparel companies to say "you can throw it away". That is why I am convinced that it will lead to business opportunities.
