Introduction Profile of Osaka/Kansai
Kansai area Osaka / Hyogo / Kyoto / Nara / Shiga Wakayama / Mie / Fukui Fukui Tokyo Osaka Production capacity (2009): 855MW Planning (by 2010): 1200MW Kobe
Kyoto Shiga Hyogo
Osaka Mie
Osaka
Nara Kyoto
Wakayama
©Osaka Convention & Tourism Bureau With a population exceeding 20 million and an economy of $800 billion, the Kansai region plays a leading role in western Japan. Osaka is center of the region, a vast metropolitan area second only to Tokyo in scale.
Osaka prefecture (Center of Kansai) OSAKA: A WORLD LEADER IN INDUSTRY One of Japan's leading manufacturing industry clusters
Osaka (Share/Japan) To k y o (Share/Japan) Area (km2) 1,898 ( 0.5%) 2,103 ( 0.6%) Population (million) 8.81 ( 6.9%) 12.76 (10.0%) GDP (US$ billion) 331 ( 7.5%) 784 (17.9%) No.1 Number of manufactures* 23,533 ( 9.1%) in Japan 18,681 ( 7.2%) ( 6.3%) No.2 ( 4.4%) Number of employees* 532,460 in Japan 371,206 (*)Number of manufacturers and employees (establishments with 4 employees or more) Ranking among 47 prefectures in Japan Source: Cabinet Office / Ministry of Internal Affairs and Communications / Ministry of Economy, Trade and Industry
Kansai area Kansai (Share/Japan) Tokyo area (Share/Japan) Area (km2) 37,042 ( 9.8%) 36,436 ( 9.6%) Population (million) 23.54 (18.4%) 42.70 (33.4%) GDP (US$ billion) 788 ( 18.0%) 1,661 (37.9%)
Osaka / Kansai GDP=Nearly equivalent to Netherlands (Ranking 17th in the world) Tokyo area: Tokyo and 7 prefectures Source: Cabinet Office / Ministry of Internal Affairs and Communications Cluster of Environmental/Energy-related Companies in Osaka/Kansai Cluster of plants / factories The Solar Cell Industry NO.1 Share of Japan
Kaneka Solartech Corporation Total Shipment 2009(40MW) 2013(460MW: Planning) 9 Toyooka Plant (Toyooka City)*1 Main production item: Solar cell (thin-film silicon) 9 (*1) Production to increase from 2010
Sharp Corporation Mitsubishi Electric Corporation 6 Total Shipment 5 Total Shipment 2009(792MW) 2013(1670MW: Planning) 2009(120MW) 2013(538MW: Planning) 4 *4 1 Katsuragi Plant (Katsuragi City) 8 8 Kyoto Plant (Nagaokakyo City) Main production item: Solar cell (crystalline silicon) Main production item: Solar cell module (crystalline silicon) 2 2 Green Front Sakai Plant (Sakai City)* (*4) Production to increase from 2011 Main production item: Solar cell (thin-film silicon) 2 (*2) To start operation 2010 30km 1 60km 7 3 KYOCERA Corporation (former SANYO Electric Co., Ltd.) 100km Total Shipment 2009(400MW) 2013(1200MW: Planning) Total Shipment 5 Yokaichi Plant (Higashi-Ohmi City) 2009(260MW) 2013(1100MW: Planning) Main production item: Solar cell 3 Nishikinohama Plant (Kaizuka City) New plant building*3 (crystalline silicon) Main production item: Solar cell (crystalline silicon) 6 Yasu Plant (Yasu City)*5 (*3) To start operation 2010 Main production item: Solar cell 4 Shiga Plant (Otsu City) (crystalline silicon) Main production item: Solar cell module (*5) To start operation 2010 7 Ise Plant (Ise City) Source: Sangyo Times, Inc., Japan Economic Center (JEC) Main production item: Solar cell module
DATA
Global solar cell productions’ share Solar power volume in Japan 2009 Kansai’s share: 70% (of Japan) Japan Solar power is being promoted Other 14.1% to increase 20 times by 2020, 10.8% (1,508MW) compared with the volume in 28000MW U.S. 2005. 13.0% Market size: ($16.2 billion) Taiwan China 13.2% 35.5% Germany 13.4% 14000MW
Worldwide 10,660MW Global share 5.6% 3.8% 2.4% 4800MW (former SANYO Electric 1400MW Worldwide Co., Ltd.) 2008 6,941MW 2005 2010 2020
Source: Ministry of Economy, Trade and Industry, PV News, and Sangyo Times, Inc. Source: Ministry of Economy, Trade and Industry, Yano-Keizai Report Cluster of Environmental/Energy-related Companies in Osaka/Kansai Cluster of plants / factories The Lithium Ion/Fuel Cell Industry NO.1 Share of Japan
(former SANYO Electric Co., Ltd.)
For PCs, mobile equipments, etc. 1 Sumoto Plant (Sumoto City)
2 Minami-Awaji Plant (Minami-Awaji City) Photo: The Kansai Electric Power Co., Inc 3 Kaizuka Plant (Kaizuka City) 13
For PCs, mobile equipments, etc. Panasonic Home Appliances Company Ltd. and automobiles 11 For household fuel cells 4 Tokushima Plant 12 7 Kusatsu Plant (Kusatsu City) 7 (Matsushige Town) 5 For automobiles 6 5 Kasai Plant (Kasai City) * Panasonic Corporation Energy Company (*) To start operation 2010 8 10 30km For PCs, mobile equipments, etc. 8 Moriguchi Plant (Moriguchi City) 3 60km 9 Wakayama Plant (Kinokawa City) Hitachi Maxell, Ltd. 1 2 100km 10 Suminoe Plant (Osaka City) For PCs, mobile equipments, etc. 9 6 Kyoto Plant (Oyamazaki town) 4 GS Yuasa Group
For PCs, mobile equipments, etc. For automobiles 11 Lithium Energy Japan: Kusatsu Plant (Kusatsu City) For automobiles 12 Lithium Energy Japan: A new plant (Ritto City) **
For household fuel cells 13 Blue Energy Co., Ltd.: Fukuchiyama Plant (Fukuchiyama City)*** Source: Sangyo Times, Inc. Data published by each company (**) To start operation 2012 (***) To start operation 2010
DATA
Global lithium ion battery productions’ share Lithium ion battery production in Japan 2009 (Unit : production volume in cells) Kansai’s share: 80% (of Japan) Production volume of lithium ion batteries is expected to Other increase approximately 4.7 billion 20% 5 times as much by 2020 in Market size: comparison with 2005. ($13.8 billion) Korea Japan 23.7% 56.3% 3.12 billion
Worldwide Global share 2.6 billion 37.0% 1.42 billion (including former SANYO) 16.2% Worldwide 0.93 billion 2008 2.7 billion 2005 2010 2020
Source: Japan Economic Center (JEC) Note: The each country share was calculated in total of principal enterprises. Panasonic made Sanyo Electric its subsidiary in Dec. 2009 Source: Japan Economic Center (JEC) Eco-Energy City Osaka/Kansai Accumulation of Advanced Environmental Industries - A new action plan for urban development toward realizing low carbon society -
A variety of manufacturing facilities is based in Kansai such as solar cells, lithium batteries and others. In addition local governments are seeking active roles to implement various initiatives to realize low carbon society.
Kansai
Osaka 6
5 4 3 7 2 1
3
SOLAR Mega Solar Power Generation Plan Project 1 Sakai Solar Power Generation Plant Operator: The Kansai Electric Power Co., Inc. Output: 10MW Operation: 2010/10 ~
2 Sakai Manufacturing Complex Solar Power Generation Facilities (tentative name) Operator: Sharp Corporation and the Kansai Electric Power Group Output: 18MW Operation: 2012 ~ Photo: The Kansai Electric Power Co., Inc.
BATTERY 3 Hydrogen & Fuel-cell Demonstration Project 4 Osaka EV (electric vehicles) Action Council Osaka FCV (Fuel-cell Vehicle) Promotion Conference Osaka New Energy Forum Osaka Nakanoshima Traffic Safety Social Experiment (2009) - Installation of hydrogen Osaka Prefectural Government (Test sites) Osaka city stations and fuel-cell takes an initiative to promote vehicle demonstration new energy industry, tests especially EV market and its Electric Bus - (Test sites) Osaka infrastructure in conjunction Photo: prefectural government with other local organizations. The Nakanoshima Fuel-cell (hydrogen-fueled) Hydrogen station office, Kansai - Period: Jan, 2013 Low-carbon Society vehicle International Airport Promotion Council
LOW-CARBON URBAN DEVELOPMENT
5 Development of Osaka Station 6 Kansai Science City 7 Large-scale reclamation projects North District (Keihanna) implemented in Osaka Bay - Redevelopment project for the - Home to more than 110 Osaka Prefectural central district of Osaka (24ha) national and private Government and City of - Development concept "World- research organizations Maishima Osaka have established leading eco-friendly urban hub and cultural facilities the special task force to Yumeshima in 'Kansai, an environmentally - Advanced in R&D and develop 3 places advanced region'" diffusion of new (Maishima, Yumeshima - An advanced implementation energies such as solar Sakishima and Sakishima) in Osaka Photo: area of 7ha to be completed in Photo: power generation and Bay as production and Kansai Economic Federation 2012 Kansai Economic Federation fuel cells for housing logistic bases. Eco-Energy City Osaka/Kansai Kansai's Advantages for Foreign Companies
Kansai becomes one of the most attractive places as to its economic fundamentals, therefore a number of foreign companies has already set up operations in Kansai region.
Medical Industry Chemical Industry
AstraZeneca K.K. Air Liquide Japan Ltd. Japan Air Gases
Eli Lilly Japan K.K. Procter & Gamble Japan K.K. Hospira Japan K.K. Major Determining Factors BBK worldwide-Osaka, G.K. Beauty & Health Innovation Co., Ltd. ・The size of the Kansai market Nippon Boehringer Ingelheim Co., Ltd. Bayer Ltd. ・Well-developed rail and flight networks Manufacturing Industry Service Industry ・Good transportation access to major cities ALSTOM K.K. item Japan K.K. Emirates Airline, Japan Branch ・Concentration of related RECARO Japan Co., Ltd. Hilton Osaka businesses and R&D HBC-radiomatic Japan USJ. Co., Ltd. institutes Corning Japan Inc. ・Presence of business partners Samsung Japan Corp. Retail Industry ・Availability of well-qualified human resources IKEA Japn K.K. ・Cheaper office rent compared Foods Industry Chelsea Japan Co., Ltd. to the Tokyo area Nestle´ Japan Ltd. Haier Japan Sales Co., Ltd. ・Favorable living environment (educational institutions, NIZO Food Research natural environment) Distribution Industry Finance and Insurance Industry ProLogis AXA Non-Life Insurance Co., Ltd.
Source: “Welcome to Kansai” issued by Kansai Bureau of Economy, Trade and Industry Note: Listed are companies that have head offices, sales offices or research institutes in Kansai. Major determining factors are based on interview surveys of some companies listed above.
DATA
Countries’ share of foreign companies in Kansai Industries’ share of foreign companies in Kansai
2009 2009 Machinery and Chemical Electric Asia otherAsia other Equipments Products Appliances 2.2%2.2% OtherOther Information 9.8% 7. 3 % 5.1% 3.4%3.4% Korea & Software Pharmaceuticals 6.4% Other Sevices 3.0% ChinaChina 4.7%4.7% Non-manufacturing 8.9%8.9% U.S. 21.3% Other 33.3% Other Europe other Wholesale Related with Manufacturing 10.8%10.8% Manufacturing Machinery 15.0% Switzerland Wholesale 3.8% ItalyItaly Germany 9.8% 3.8%3.8% France 14.5% 9.8% U.K. Canada Precision 6.8% Machine Chemical Electric Appliances 5.6% 0.4% Wholesale OtherOther Wholesale Wholesale 5.6%5.6% 3.4%3.4% 4.3%4.3% 4.3%4.3%
Asia Other 17.5% North America 26.0% Manufacturing 33.8% 40.2% Wholesale Europe Related with 45.3% Manufacturing 33.8% Manufacturing Total number: Total number: related 234 234 companies’ share 74%74% Source: The Foreign Investor 2010, Toyo Keizai Inc. Source: The Foreign Investor 2010, Toyo Keizai Inc. Firms* Foreign-affiliated firms: With foreign capital of 20% or over (including branch offices) Firms* Foreign-affiliated firms: With foreign capital of 20% or over (including branch offices) Eco-Energy City Osaka/Kansai Business Clusters of Industry and R&D
Technoport Fukui Region Katsura Innovation Center (textiles, metals, chemicals) (life sciences, environment)
Saito Life Science Center Concentration of (biotechnology, medical) Bio related Industries
Concentration of Concentration of Automobile medical industries and IT-related Businesses
Harima Science Garden City Kansai Science City (nanotechnology) (center for culture, sciences and research)
Hanshin Industrial Region Concentration of liquid crystal (panels, electronics, display related businesses machinery, steel)
Higashi Osaka Industrial Area Rinkai Kogyo Region (concentration of high (panels, batteries, petroleum, manufacturing skills) chemicals, steel)
R&D battery related industry in Kansai Industry concentrations Public Research institutions / Industrial Center 4 Research Institutions University 12 Public Research Institutions Source: Kansai Bureau of Economy, Trade and Industry 15 Kansai Branch of Development Bank of Japan
DATA
Major industrial clusters in Kansai Industrial cluster projects have been developed in private and public partnership with academia.
Sector Target Organizer Member
Companies 1,170 Manufacturing/ The aim is to produce the Neo cluster Union IT/ products which contribute (initiated by Kansai Bureau Universities 32 Energy to the future life style of Economy, Trade and Successful businesses Industry ) 6,000
The aim is to revitalize bio NPO Kinki-Bio-Industry Companies 350 Development Organization industry in the region and Universities 56 Bio foster the creation of world (initiated by Kansai Bureau Successful businesses class entrepreneur of Economy, Trade and Industry ) 42
The aim is to revitalize NPO Recycling System Companies 120 Center environmental industry in Universities 21 Environment the region and foster the (initiated by Kansai Bureau creation of world class of Economy, Trade and Successful businesses entrepreneur Industry ) 420
Source: Ministry of Economy, Trade and Industry Eco-Energy City Osaka/Kansai Current Trade Scale in Kansai
20% Electric appliances and machinery account for more than a half of the total export value, Export of Japan's and Asia is the major export counterpart. total scale
Value of Exports by Commodity (Kansai) Value of Exports by Country (Kansai)
Nonferrous metal Other Electric 1.6%1.6% 18.5% appliances EU Metal products 32.0% 12.2% China 1.6%1.6% 22.5% U.S. Scientific and Chemical Machinery 11.3% optical instruments products 3.0%3.0% 13.2% 19.8% Transportation equipment Asia Other 4.6% Total value of exports 42.4% 11.6% SteelSteel 5.7%5.7% $120 billion
Value of Exports by Commodity (Japan) Value of Exports by Country (Japan)
Electric Nonferrous metal Other appliances 1.9%1.9% 18.1% 19.9% EU Metal products Machinery 12.5% China 1.4%1.4% 18.9% U.S. Transportation 17.8% 16.1% Scientific and equipment Chemical optical instruments 21.9% products 3.0%3.0% 10.7% Asia SteelSteel 35.3% Other 5.4%5.4% Total value of exports 17.2% $542 billion
20% Reflecting the concentration of the manufacturing industry, mineral fuels and electric appliances Import of Japan's total scale constitute a significant share. Import from Asia including China accounts for more than a half.
Value of Imports by Commodity (Kansai) Value of Imports by Country (Kansai)
Mineral fuels 15.5% Other EU 28.0% Electric appliances 14.5% 10.9% China 30.9% U.S. Foodstuffs Chemical products 7.7% 11.0% Machinery Clothing and 13.0% accessories 8.9% Asia 9.1%9.1% 23.9% Other Total value of imports 26.6% $98 billion
Value of Imports by Commodity (Japan) Value of Imports by Country (Japan)
Other Mineral fuels 28.4% 27.6% EU 10.7% China Electric appliances 22.2% U.S. Foodstuffs 12.6% 10.7% Clothing and 9.7% Chemical accessories products Asia 4.6%4.6% 8.9% 22.4% Other MachineryMachinery Total value of imports 34% 8.2%8.2% $515 billion
Source: Japan Customs, Osaka Customs Eco-Energy City Osaka/Kansai Sophisticated Traffic and Logistic Infrastructure
Access to the world
Sophisticated air route network Sophisticated International from Kansai to the world seaway infrastructure Osaka International Airport Maizuru Port
- Multipurpose international Kobe Airport terminal with a large quay wall depth of 14m and container yard. ITAMI/ITM - The port can berth 50,000-ton Kansai International Airport container ships. KOBE/UKB - Kansai International Airport is the only 24-hour Operating International Logistics Hub in Hanshin Port Japan. KOBE PORT OSAKA PORT (Port of Osaka, Port of Kobe etc) - It has Japan's largest cargo flight network for China. KANSAI/KIX - The development of Japan's SAKAI-SEMBOKU deepest earthquake-resistant PORT container berth (with a water depth Flight Schedule of 16m) allows the harbor to accept 100,000-ton class container ships. Airline companies 57 Flight to overseas cities 68 - The strategic alliance of ports in the region reduces port traffics and The weekly number of flights simplifies tax procedures. 729 The comparative volume of domestic cargo - The ports boast the world class freight volume. Nagoya - Hanshin port is nominated as the 81 Hanshin strategic port to revitalize by the Japanese Government. 159 Urban area Source: Kansai Bureau of Economy, Trade and Industry Development Bank of Japan (Tokyo & Yokohama) Kansai International Airport Co., Ltd. 162
(Unit: million ton)
Domestic Access Kansai has a well-developed transportation network in terms of flight, train and motorway systems.
Air Shinkansen Highway Sapporo
1hr50min
1hr 4hr 2hr30min Tokyo Nagoya Nagoya To k y o Osaka Osaka To k y o Hiroshima Osaka Fukuoka Fukuoka 2hr 1hr 50min Fukuoka 6hr 2hr30min 7hr30min INVEST KANSAI INVEST Promotion Activities in Kansai
Invest Kansai Desk is one-stop service center for foreign companies considering investment in the region. It provides a full range of support services to start up business.
Service Menu Foreign
- Free of charge (Up to 50 business days) companies Consulting - Convenient location
Temporary - Provision of concierge support by experts Office Space JETRO Osaka
INVEST KANSAI Desk Office (ONE STOP CENTER) Properties
- Recruiting assistance service Human - Assistance in finding appropriate Resources Networking office property
Consulting Facilities Free individual consultation for your company Temporary office space offered free of charge A vast network of experienced experts in both public/private Office space (Free for 50 business days) sectors can provide a wide range of support including advice Desk, chair, telephone, fax and internet connection available. on entering markets, analyses of startup costs, assistance on Ideally located for business in the center of metropolitan Osaka. procedures for new businesses, finding office space and Meeting room (Free) staffing. The conference rooms can be used for business meetings, negotiations, etc. JETRO can also put you in contact with public authorities (Invest Japan office) and local governments for matters Business library (Free) concerning laws on market entry, regulations or permit The adjoining business library can be used to view information procedures. on investing in Japan or to collect information on business in the online database.
Wide-range of Network
Kansai Bureau of Kansai Economic Osaka Chamber of Local Governments METI Federation Commerce and Industry - Incentive information - Regulation related matters - Local companies’ network - Local companies’ network - Industrial area information through memberships through memberships (between - Local network with academia SME and large companies) and related organizations - Local network with academia etc
a Osak JETRO Osaka Yotsubashisuji Ave. Sta. Umeda Sta. Midosuji Ave. Central Post Office Hilton Hotel Invest Japan Business Support Center (IBSC) Osaka
Here's a brief look at varieties of companies that have worked with JETRO Osaka for a prosperous business in the Kansai region.
Successful Story
Tata Consultancy Services Japan Limited, Osaka Office KP Japan Co., Ltd.
A core organization of India's largest conglomerate, the Tata Group Advanced manufacturer of anode material One of the largest IT consulting companies in Asia for Ni-MH batteries Profile Profile Established in: June, 2010 Established in: September, 2009 Business in Japan: IT consulting, systems-development and maintenance Business in Japan: Import and distribution of metal hydride alloys Why Kansai? Why Kansai? 1. Presence of numerous manufacturing and pharmaceutical 1. Had business relations with electronics and battery companies manufacturers in Kansai 2. Accumulation of globally operating enterprises 2. Found strong potential in battery market in Kansai 3. Was familiar with and fond of Osaka JETRO Osaka's Support JETRO Osaka's Support - Free temporary office space - Information on office spaces and - Free temporary office space lifestyles in Kansai - Information on office spaces - Assistance in holding press - Provision of market information conference
David Austin Roses K.K. BBK Worldwide - Osaka, G.K.
Sells approximately 200 varieties of English roses Global leader in patient recruitment for clinical trials in over 45 countries Profile Profile Established in: November, 2007 Established in: February, 2009 Business in Japan: Import and distribution of English roses Business in Japan: Marketing consultancy in patient recruitment for clinical trials Why Kansai? 1. Had distribution channel in Kansai via former agent Why Kansai? 2. Strong support by the local government 1. Active industry-university joint research in pharmaceutical development 2. Most suitable base for business in Asia-Pacific region JETRO Osaka's Support 3. Accumulation of head offices of medical device manufacturers - Consultation on registration, tax, JETRO Osaka's Support and visa preparation - Cooperation on English-style - Free temporary office space garden establishment plan along - Assistance with company with Osaka Prefectural registration and visa preparation Government - Arrangement of business meetings - Help with press releases
item Japan K.K. Fluonics K.K.
One of the world's leading manufacturers Teflon lined valve and pipe manufacturer of aluminum structural kit systems Profile Profile Established in: February, 2008 Established in: August, 2009 Business in Japan: Aluminum structural kit systems manufacturing Business in Japan: Import and distribution of valves and pipes Why Kansai? Why Kansai? 1. Great access to Tokyo as well as Kyushu area 1. Accumulation of chemical plants around Osaka Bay area 2. Accumulation of major potential customers like photovoltaic producers 2. Presence of major clients and partners in Kansai 3. Lower rents and other business costs compared to Tokyo JETRO Osaka's Support JETRO Osaka's Support - Free temporary office space - Assistance with personnel - Consultation on registration, visa recruitment and finding a plant preparation, and opening a bank location account - Help in applying for subsidies - Help in applying for subsidies offered offered by the Osaka Prefectural by O-BIC(Osaka Business and Government Investment Center)