Many Japanese companies that produce materials recycled from used plastic bottles are on the verge of bankruptcy as more and more of their raw material ends up in China and may soon be finding their way to India as well.
One-third of firms using recycled plastic are believed to be in danger of going bust this year, due to the shortage of bottles, yet any significant contraction of the industry would threaten the development of environmentally friendly technologies in Japan, analysts say.
"We need more bottles," said Eiichi Furusawa, president of Japantech Co., which recycles polyethylene terephthalate bottles for soft drinks as he points to a half-empty lot at the company's main factory in Kanuma, Tochigi Prefecture.