Swiss garment and shoe recycling company I:Collect AG says it will establish a Japanese unit next month in Morioka, Iwate Prefecture, after starting collection in March at outlets of the Swedish casual clothing chain H&M.

Customers get merchandize discount coupons in exchange for used clothing, which is recycled into heat insulation materials, car floor mats and other products.

The Japanese unit will be headed by Akifumi Okamoto, president of Don Don Up Co., a vintage clothing chain based in Morioka.

"We would like to juggle both contributions to society and our business," Okamoto told a news conference in Tokyo on Thursday.