Text and photo by David Graff, AAU Communication and Public Affairs

When Danish manufacturing companies have to transition to circular practices, they can draw valuable inspiration from Japan.

This is the conclusion after the team behind The Circular Factory returned from a study trip to some of the companies in Japan that are globally among the most advanced in circular economy, resource reduction, and remanufacturing.

“Companies in Japan have, for more than half a century, been among the absolute global leaders in efficient, high-quality manufacturing,” says Associate Professor Thomas Ditlev Brunø, Aalborg University.

“Many of the methods I teach at Aalborg University today have their roots here. That is why Japan is an obvious place to look for new inspiration.”

The visits took place in March 2026 in connection with the CIRP Life Cycle Engineering Conference in Tokyo and included both global corporations and niche companies that excel in circular processes in practice.

Panasonic: A Subscription Changes the Product Life Cycle

At Panasonic’s Factory Refresh in Utsunomiya, the project team gained insight into a business model that gives the circular economy concrete meaning for both business and design.

Panasonic offers its dishwashers as a subscription service. This means that the products are continuously returned, inspected, and refurbished before being sent out to new subscribers.

“Panasonic’s return flow is an example of refurbishment, and it provides the company with valuable knowledge about which components wear out the most and how products can be designed even better next time,” says Thomas Ditlev Brunø.

The benefits include reduced material consumption, extended product lifetimes, and a service-based business model that is scalable.

Shin-Etsu Denso: 90% Less Material

At Shin-Etsu Denso near Nagano, there is a strong focus on remanufacturing automotive components such as starters and alternators. The company receives used units, disassembles them, cleans, sorts, repairs, and tests them - before sending them back out at the same quality as new parts.

“A remanufactured starter requires only about one-tenth of the materials compared to a new one. That represents enormous potential - both economically and environmentally,” says Thomas Ditlev Brunø.

He particularly emphasizes the competencies required:

“This is not just about producing again. It requires entirely different skills than traditional linear production - and that is something we in Denmark need to take seriously if we want to remain competitive in 10–20 years.”

DMG MORI: A Living Textbook in R-Strategies

The visit to DMG MORI demonstrated how R-strategies (Reduce, Reuse, Repair, Refurbish, etc.) can be integrated throughout the entire production process.

R-strategies are everywhere at DMG MORI—for example, when the company:

• takes back used machines and reuses steel components in new castings (Recycling),
• develops machines that combine processes so one machine can replace two (Rethink),
• repairs and refurbishes key components such as spindles (Repair/Refurbish),
• uses additive manufacturing to build metal onto existing parts.

DMG MORI itself describes its approach to recycling as “resourcing” to emphasize that by reusing steel from its own used machines, it reduces dependence on supply chains that can be vulnerable. This approach also becomes a means of increasing the company’s resilience.

“It was like walking through a physical textbook on R-strategies. Everywhere, there were examples of how resources can be used smarter,” smiles Thomas Ditlev Brunø.

Hitachi Construction Machinery: Circularity on a Large Scale

The project team’s final visit was to Hitachi Construction Machinery, which, with 22,000 employees, implements circular initiatives on a scale rarely seen in Denmark.

Hydraulic cylinders are remanufactured and refurbished - from excavators, wind turbines, and equipment from other manufacturers. The company has also solved a classic circular challenge: the return flow.

“Hitachi has tackled the challenge of creating an efficient return flow with reusable packaging. New parts are delivered in packaging that can be used to return the used parts. Simple and smart,” says Thomas Ditlev Brunø.

The visit also resulted in a new collaboration between AAU and Hitachi, offering company placements for master’s students.

Three Key Takeaways

Although the companies are very different, the lessons from the trip point to three overarching themes, according to Thomas Ditlev Brunø.

1. Long-Term and Consistent Improvement Culture
   A strong culture of continuous improvement, data-driven decision-making, and waste reduction forms the foundation for circularity.
2. Technological Maturity with a Clear Circular Purpose
   Automation, traceability, and digital services are not just decorative—they directly support longer product lifetimes and smarter material use.
3. Close Collaboration Across the Value Chain
   Return flows, service concepts, and resource optimization require collaboration between suppliers, manufacturers, and service providers.

“We return home with a long list of insights that can be directly applied to our work with Danish companies in The Circular Factory,” says Thomas Ditlev Brunø.

“The most important lesson from the trip is that circular production is not a distant vision - it works in practice when processes are well thought out and the right competencies are in place.”

From Inspiration to Action in Denmark

The project team is now using the experiences from the study trip to develop:

• concrete company programs
• demonstration cases in test facilities
• teaching and learning materials
• dialogues with companies about circular potential

The goal is to make circular production practically feasible and commercially attractive for Danish companies.

Read the press release about the project launch: https://www.mp.aau.dk/nationalt-demonstrationscenter-for-cirkulaer-produktion-abner-i-aalborg-n132699