Environmental firms scouting Japan

Because of opportunities afforded by Japan’s administrative policies and new legislation, Boulder County environmental firms are exploring Japan despite its depressed economy.

In June 1997, Japan revised its Waste Management Law. According to a U.S. Department of Commerce report, one mandate requires illegal polluters to restore the contaminated environment to its original condition — an incredibly difficult task, considering the amount of waste.

According to the Japan Welfare Ministry’s latest statistics, there was 39,400 tons of industrial waste in 1995. This figure was eight times more than general waste.

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“The United States and European countries are more advanced than Japan in environmental technology and environmental systems. Japan is looking for this,´ said Takeyoshi Kawaguchi, chief executive director, Japan External Trade Organization (Jetro) in Denver.

Walsh Environmental Scientists and Engineers began working with Japan in 1994 because of the need for environmental cleanup. Asked why his firm targeted Japan during a recession, James Walsh, president and founder, said, “I read that the Japanese market was the second largest environmental market next to the U.S. Expanding internationally fits with our corporate culture.”

Established in 1979, Boulder-based Walsh is an environmental consulting firm. Services include soil and ground water remediation and hazardous-waste management. Walsh employs 35 people in Boulder, 12 in Grand Junction and two in Golden. It is employee-owned.

The firm went global six years ago. It has offices in Lima, Peru and Quito, Ecuador and a joint venture in Johannesburg, South Africa.

Walsh declined to disclose 1998 revenues, but he did say international markets account for 20 percent of business.

In 1994, Walsh met Japan Research Institute at a bioremediation conference. JRI is a think tank that provides environmental services to industrial partners. A market research project led to a remediation system design for JRI consortium members. Walsh’s goals, however, did not match JRI’s needs.

“We wanted hands-on work. They wanted research,” Walsh said.

The firms continue to maintain a relationship. A Walsh proposal for a case study on how America dealt with dioxin is pending, which would be welcome in a country that produces vast amounts of the toxic chemical.

“There is not room for landfills in Japan, so the country is burning trash,” Walsh said. “Dioxin is a byproduct of combustion. Japan is looking around the world to see how other countries are handling environmental issues.”

In 1997, Jetro introduced Walsh to Japan Ground Water Development Company, a ground-water resources engineering firm. Last year, Walsh and JGD signed a teaming agreement for site assessment and remediation services. Four senior JGD personnel then spent two six-week internships in Boulder. Walsh visited JGD this year. No contracts have been secured.

“JGD-Walsh are selling a service that the Japanese are not real familiar with. Japan is looking for a technical fix. But no one technology is appropriate for even a majority of the sites,” Walsh said. Walsh is willing to wait.

“I am thoroughly convinced that JGD are looking for a relationship with Walsh that could last for decades. The Japanese have a different way of thinking about business. They have a 100-year business plan,” Walsh said.

In June, Leslie Crawford, executive director of Boulder-based E2: Environment & Education, attended a Jetro-sponsored seminar on Japan’s environmental market.

“I wanted to see who was doing business in Japan, and who might be interested in sponsoring our program. One of our teacher trainers taught in Japan, so I feel we could move in there fairly easily,” she said.

Founded in 1994, E2 developed an environmental curriculum for middle and secondary school students covering six areas including waste reduction, water conservation and chemicals. Trainers help teachers introduce the program into the classroom. E2’s curriculum was recently launched in the Chinese public school system.

A 1997 education reform initiative by the Ministry of Education to enhance environmental education in public schools could open a door for E2 in Japan. Crawford plans to circulate information about E2 in Japan through Jetro.

HazWaste, a Boulder environmental services firm specializing in hazardous waste, remediation and cleanup, is also eyeing Japan. “We want to focus on a few companies that we can work with. Cross licensing is the best way to work,´ said Asvin Waran, HazWaste’s president and founder.

Regulatory compliance software and bioremediation are HazWaste’s market focus. “This is the right time to do this. Japanese companies are hungry to sell something to you, and to get an edge over somebody else,” Waran said.