HYOGO-KOBE

March 2006 Vol.

Hyogo-Kobe Investment Support Center Hyogo Economic Development Center Hyogo-Kobe Business Support Center in Tokyo 2 Th e comprehensive service site that supports location of enterprises from both inside and outside Japan, Kobe Chamber of Commerce and Industry Building 4F Hyogo Club Tokyo, Sakuragofukubashi Building 8F USINESS6-1 Minatojima-Nakamachi, Chuo-ku, Kobe 650-0046 EWS1-3 Yaesu, Chuo-ku, Tokyo 103-0028 into "Hyogo-Kobe" through one-stop services. TEL: +81-78-302-2071 FAX: +81-78-302-2265 [email protected] TEL: +81-3-6202-0951 FAX: +81-3-6202-0952 [email protected] HYOGO-KOBEB INVESTMENT SUPPORT CENTER N Achieving Early Operation and Good Performance through Plant Location in Amagasaki Matsushita built a PDP plant that is in charge of the core of the world strategy, in Amgasaki. Matsushita Electric Industrial Co., Ltd. built a third plant in Japan producing the world's largest PDP (Plasma Display Panel), in Amagasaki city, Hyogo prefecture, and began its operation in September last year. At the new plant, highly effi cient operation by the leading-edge The world's largest- multiple method, and high process yield by its original black box technology, have been realized. In July this year, class plasma display panel plant the second-stage line is planned to start operation, and this plant will be the core facility for the future world strategy. As to the reasons and advantages for having selected Amagasaki as such an important production base, we asked Mr. Hiroyuki Nagano, who is overall in charge of the company's PDP Device Business Unit.

for export was another attraction. Products for West- 3% of the equipment investment amount, based on Matsushita Electric Industrial Co., Ltd. ern markets, which are more rapidly expanding com- the prefectureʼs industrial concentration ordinance: Mr. Hiroyuki Nagano pared with in the Japanese market, and products for 2,850 million yen for the third plant, which enables Director other foreign countries, are shipped in the form of early recovery of investment and is very helpful for PDP Device Business Unit panels from the Amagasaki Plant, and they are as- us. Further, because the new plant employs many Visual Products and Display Devices Business Group sembled locally. local residents, we can receive a subsidy for local Panasonic AVC Networks Company - Being close to the Ibaraki Plant, which has employment, of up to 300 million yen. I think this will abundant engineering staff, was also important, be very effective also for promoting regional employ- - How is the performance of the fi rst-stage line of wasnʼt it? ment. In addition, reduction of and exemption from the Amagasaki Plant? In fact, that was the biggest point. PDP produc- the cityʼs fi xed asset tax, etc., are also a decisive fac- Fortunately, we are performing even better than tion requires engineersʼ deep know-how and accu- tor for additional investment. planned. The fi rst factor for our good performance mulated experience. A PDP is almost like a ceramic - Please tell me the future development and is that we could start operation two months earlier, in piece that is baked in an electric furnace. As such, if strategy. September, than the initial plan to start in November the plant is located far away, it is clear that engineers In response to the worldwide PDP demand, we 2005. Though we did not think we could be in time will be in short supply, resulting in low process yield. will build a fourth plant, in Amagasaki, in the sum- for the overseas Christmas business competition, In this regard, engineers from the Ibaraki Plant can mer of next year. Our company prospects 25 million we could supply a large quantity of panels made in be posted to the Amagasaki Plant without need for units of PDP as the world demand for 2010, and we, Amagasaki to overseas during the period, which job relocation. as an entire company, will be able to produce about signifi cantly contributed to an improved share in the Some people suggested locating a plant over- 11 million panels annually with full operation of the West. In America, which is the most important re- seas, but that involves risk of technology outflow, Amagasaki Plant, out of which this plant will produce gion for fl at-screen TVs, our PDP share increased to and in foreign countries, engineers who acquire about nine million units. If we can achieve the goal almost 60%. Operation of the Amagasaki Plant thus higher techniques tend to move to a rival maker, of slightly over 40% of the world share, therefore, boosted our world strategy. and as such, engineers do not stay, which hinders over 30% of the worldʼs PDPs will be “made in Ama- - What are the reasons you chose Amagasaki? achievement of high process yield. gasaki.” Toward this goal, the Amagasaki Plant will In a word, speed. Amagasaki was the best for the - I undestand support by administration was also tackle even higher quality and lower-cost operation, earliest possible launching and the earliest, most helpful for the early start of operation. as the production base that is in charge of the core stable operation. Because the investment pace Construction of a plant requires various proce- of the world strategy. of Korean companies, which are our rival, rapidly dures. Without completing these procedures in a increased, we had to advance our initial production short period, start of construction and then operation Matsushita Plasma Display Panel Ltd. increase plan by one year to win share, and build a become delayed. In this regard, supply of one-stop Amagasaki Plant new plant in a hurry. Under such circumstances, a support by Hyogo prefecture and Amagasaki city, Start of production: fi rst stage, on Septem- candidate construction site was land belonging to with the Hanshin Minami Prefectural Citizen Bureau ber 16, 2005; second stage, planned for July Kansai Electric Power Co., Inc. in Amagasaki. Be- as the contact point, helped speedy completion 2007. / Location: 2-16-4, Suehirocho, Ama- cause it was previously the site of an electric power of procedures. Without the support, it would have gasaki city, Hyogo prefecture / Production plant, sufficient capacity of electricity was already been impossible to start operation in September, items: Production, marketing, etc., of plasma available, and industrial water was also abundant. two months earlier than the initial plan, and the plant displays, plasma display modules, and related products / Investment amount: 95 billion To start operation early, these two infrastructure fac- could not have been started until after the Christmas yen / Production capacity: 250,000 units tors were very important. business competition, resulting in very low-effi ciency monthly (first stage, 125,000 units monthly; Further, Amagasaki is conveniently located: It is investment. second stage, 125,000 units monthly) / Pro- only one minute from an expressway Interchange, - What kind of effects did the preferential system duction personnel: About 800 persons / and is close to Kobe Port and Osaka Port, which are give to the plant locating? Total fl oor space: About 147,000 m2 bases for overseas transport; and thus, convenience We expect to receive a subsidy equivalent to

http://www.hyogo-kobe.jp/his HYOGO-KOBE

March 2006 Vol.

Hyogo-Kobe Investment Support Center Hyogo Economic Development Center Hyogo-Kobe Business Support Center in Tokyo 2 The comprehensive service site that supports location of enterprises from both inside and outside Japan, Kobe Chamber of Commerce and Industry Building 4F Hyogo Club Tokyo, Sakuragofukubashi Building 8F USINESS6-1 Minatojima-Nakamachi, Chuo-ku, Kobe 650-0046 EWS1-3 Yaesu, Chuo-ku, Tokyo 103-0028 into "Hyogo-Kobe" through one-stop services. TEL: +81-78-302-2071 FAX: +81-78-302-2265 [email protected] TEL: +81-3-6202-0951 FAX: +81-3-6202-0952 [email protected] HYOGO-KOBEB INVESTMENT SUPPORT CENTER N "Hyogo-Kobe Investment Support Center" One Year "Hyogo-Kobe Investment Support Center" was established in April 2005, as a department of the Hyogo Economic Following Its Establishment Development Center, for offering the business information and consulting in "Hyogo-Kobe." Both the Center in Kobe Total support for starting and expansion of business in and Tokyo Office (Hyogo-Kobe Business Support Center "Hyogo-Kobe" Responding to various business advancement- in Tokyo) are supporting new business development and related inquiries from companies both in and outside Japan business expansion of the companies.

>Information on offices for R&D ment by the attorney, the certified public account- Support system ・Introduction of R&D facilities, incubation facilities, ant, and the administrative scrivener Aiming to invite companies both in and laboratories, etc. outside Japan through "One-Stop" services >Related information ・Explanation on incentives such as subsidies, ad- Annual activities ministrative procedures We support both domestic and foreign companies ・Providing information on the employment environ- which considering business expansion in “Hyogo- ment and the living environment “Hyogo-Kobe Investment Support Center” con- Kobe” by providing information on industrial parks, ・Arrangement of introduction to the developer (land- ducts aggressive activities for inviting companies, areas suitable for factories, idle land, rental offices lord) regarding desired properties such as implementing questionnaire surveys on as well as on administrative procedures for business ・Guidance to actual places intention on advancement, company visitation, and advancement, employment and residence. Further, When a foreign or foreign-affiliated company participation in business fairs, in addition to respond- we fully support companiesʼ advancement through 2 is considering setting up a new business base ing to inquiries from companies both in and outside integrated efforts by collaborating with not only local Providing information on comfortable and conven- Japan regarding advancement into “Hyogo-Kobe.” governments, such as Hyogo Prefecture and Kobe ient offices, business-related information procedures City, but also JETRO, Kobe Chamber of Commerce for permission, and daily living. Number of cases Content (total of Kobe and and Industry, and other related agencies. >Business-related information Tokyo) When a company is considering business advance- ・Providing market information, business partners 1 ment into “Hyogo-Kobe” such as new establish- for joint venture / technological tie-up, incentives, Providing information on ment or enlargement of a factory or opening a laboratory securing of personnel, etc. industrial sites to domes- tic companies; company １，１８９ We provide comprehensive information related to >Procedures for permission visitation, and guidance to site location, such as information on industrial sites ・Procedures for establishment of a representativeʼs actual places with full industrial infrastructure, excellent transpor- office, a branch office or a corporation; application tation access, best offices for R&D and incentives. for business registration, permission, working visa, Response to inquiries on business advancement >Information on industrial sites etc. from foreign and foreign- ３５７ ・Introduction of industrial parks, former factory sites, >Special advisors affiliated companies idle land, etc. ・Free-of-charge consultation on business advance-

“Hyogo-Kobe Investment Support Center” sup- Foreign and foreign-affiliated companies we supported ported ten foreign and foreign-affiliated companiesʼ advancement into “Hyogo-Kobe” in fiscal 2005.

Origin of The main support contents of some of the Outline of the companies Parent Location companies mentioned on the left are as follows: Company Opening of a Japanese branch (personnel dis- patch, etc.) China Kobe Calligaris Japan (Italy) Aflac (American Family Life Assurance Company) (U.S.A.) Establishment of a Japanese corporation (develop- Support for establishment of a Japa- ment and supply of Screen Code (IT technology)) China Kobe nese corporation of Calligaris s.p.a. Support for opening of a call center of (major Italian furniture manufacturer) Aflac (foreign-affiliated life insurance Establishment of a Japanese corporation (trading) China Kobe Content Of Support> company) - Explanation on incentives, etc.; sup- Content of support > Establishment of a Japanese corporation (English the Philip- Takarazuka language school) pines port for office rent subsidy procedures - Providing information on suitable of- for a foreign-affiliated company fices / guidance to actual places Establishment of a Japanese corporation (whole- Italy Kobe - Translation of an office rent contract; sale of imported furniture) arrangement of press announcement Opening of a call center of a foreign-affiliated life on establishment of the corporation insurance company U.S.A. Kobe DiaSys Japan Co., Ltd.(Germany) Opening of a call center of a foreign-affiliated life Support for establishment of a Japa- U.S.A. Kobe (U.S.A.) insurance company Alico Japan nese corporation of DiaSys Diagnostic Support for opening of a call center of Systems GmbH (German diagnostic Establishment of a Japanese corporation (trading) China Kobe Alico Japan (foreign-affiliated life insur- testing drug manufacturer) ance company) Establishment of a Japanese corporation (research Content of support > and sale of diagnostic pharmaceuticals, etc.) Germany Kobe Content of support > - Support for office rent subsidy proce- - Providing information on suitable of- dures for a foreign-affiliated company Establishment of a Japanese corporation (trading) China Kobe fices / guidance to actual places - Arrangement of press announcement - Providing employment information on establishment of the corporation

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