ARI Technologies

August 2008 -- Based out of Kent, Washington, ARI Technologies develops, commercializes and licenses technology to treat hazardous and radioactive waste. Founded in 1990, ARI Technologies has since then expanded its business to Korea, Belgium, France, the UK, and the Netherlands, and opened its Japan office in 2007. JETRO spoke with President of ARI Technologies, Dale M. Timmons R.G., about opening the Japan office and using JETRO's services.

Opportunities in Japan
In the environmental business, said Timmons, markets in other countries can be assessed by examining how governments react to environmental issues, meaning whether or not the government imposes environmental sanctions and regulations and whether those measures are enforced. Many major changes in environmental regulations are usually well publicized, so ARI Technologies always keeps a close eye on the media.

On July 7, 2005, the media brought ARI Technologies' attention to Japan, where a handful of Japanese companies came forward to reveal that hundreds of employees may have died from handling asbestos. "This issue came to the forefront in Japan overnight--literally," said Timmons. "It forced the Japanese government to recognize a very serious problem. We knew that kind of media coverage would create the market and the kind of need that we think we could satisfy."

Beyond the opportunities created by the media frenzy and the government response that followed, ARI Technologies sought the large market in general for asbestos treatment in Japan. "Japan continued to import and use asbestos in all construction applications up until 1995," said Timmons, "and this was long after most countries discontinued using it in higher risk environments." According to the Japanese Ministry of Environment, there are 40 million tons of building materials and more than a million tons of asbestos waste per year to be managed over the next two decades.

Market Entry
The first thing ARI Technologies did to begin its business in Japan was to find a liaison who had all the qualities required for representing their business well in the market. Those qualities were: (1) someone who is Japanese, (2) technically knowledgeable, (3) knowledgeable in environmental regulations in Japan, (4) fluent in Japanese and English--both written and spoken, (5) knowledgeable of marketing techniques, and (6) has the ability to establish business contacts in Japan. ARI Technologies felt it was very important to have someone who is Japanese representing them in order to establish the necessary relationships to begin their business. "There are highly volatile issues involved, complicated laws and regulations," said Timmons, "so we seek local companies and local partnerships in each country to move things forward." While many companies find it challenging to find suitable representatives for their business in Japan--meaning representatives with both English and Japanese language abilities and technical knowledge--ARI Technologies was able to hire one of many agents who regularly contact the company requesting to represent its business.

ARI Technologies then worked with JETRO to establish the business and become further connected within the Japan market. "JETRO provided introduction services with potential partners and clients, provided office and meeting facilities in Japan, and helped arrange media coverage for us," said Timmons. "It's been a very valuable association." ARI Technologies established its Japan office in December of 2007.

Things to Know Before You Go
When asked if there was advice he'd give companies entering the Japanese market, Timmons said the following:

1. "Things happen very slowly in Japan. Unilaterally, getting things done in the environmental industry anywhere is a slow process. But expect for it to take more time to establish a business in Japan. Establishing a business relationship with a company in Japan takes a bit longer."

2. "You'd better have a Japanese partner representing you, someone there who is Japanese. I think it'd be very difficult, unless you have something very, very special that everybody wants. You've got to establish these relationships, and you need to have someone Japanese representing you."

Results and Outlook
ARI Technologies has so far made significant progress for its business in Japan. Most notably, the company has garnered joint investment to further develop its technology and demonstration work. ARI Technologies was able to attract this investment due to the large need for asbestos destruction technology in Japan. "At this time, there are very few commercially viable alternatives," said Timmons. "ARI is ahead of the market and has succeeded in developing its technology to commercial scale at a time when the technology is badly needed."

In addition, the company has created a substantial database of technical and operating data --which will be crucial when applying for permits--and has also established a strong marketing presence. "We're still primarily in marketing activity in Japan," said Timmons, "but the Japanese asbestos market is very large. It's estimated to be a million tons per year for the next ten years, and the cost of land disposal of asbestos is very high in Japan. So we believe not only is the market very large, but we can be exceptionally competitive in that market." Moving forward, ARI Technologies plans to further develop its technology with the goal of satisfying Japanese regulators and partners and then hopes to install multiple waste processing facilities in Japan.