国 際 協 力 銀 行 の 広 報 誌 Special Issue Aiming to provide JBIC’s unique support to Japanese mid-tier enterprises and SMEs with

plans to expand business overseas 4-1, Ohtemachi, 1-chome Chiyoda-ku, Tokyo 100-8144, Japan Tel. +81-3-5218-3100 URL: http://www.jbic.go.jp/en/ Press and External Affairs Division, Corporate Planning Department, Group, Japan Bank for International Cooperation

Industry Finance Group Industry Finance Group Finance Office for SMEs Our Global Challenges Executive Officer for West Japan Hidetou Usuyama Toshiyuki Suzuki Director General

In July 2017, Hidetou Usuyama was appointed as Executive Officer and Executive Officer for West Japan and Toshiyuki Suzuki was Special Issue appointed as Director General of Finance Office for SMEs. They were both involved in supporting Japanese mid-tier enterprises and SMEs in their years as young and mid-career employees. They talk about their aspirations for JBIC’s future support. Under the new management team, JBIC will support Japanese mid-tier enterprises and SMEs which wish to expand to foreign countries. Supporting the ▶Usuyama I have come back to the West Japan and Indonesia. Besides being very energetic, needs of mid-tier enterprises and SMEs Office as Executive Officer, where I used to many mid-tier enterprise and SME owners through our efforts to improve their aware- work as a staff member 21 years ago. Back have their own unique philosophies. I found ness of JBIC’s financial products and services, then, I worked with Director General Suzuki there is much to learn by visiting those business while strengthening cooperation with regional and we worked very hard. owners and talking directly with them. Some financial institutions which have established Overseas Expansion of ▶Suzuki We had a strict mentor, didn’t we? ten years ago, I worked in the West Japan close relations with them. At the same time, I (Laughter) Office and helped mid-tier enterprises and strongly feel we need to actively communicate ▶Usuyama I have been visiting as many compa- SMEs to expand their business overseas. Since JBIC’s support for mid-tier enterprises and nies, financial institutions, and economic orga- those days, I feel that, regardless of business SMEs to the public by obtaining their under- Japanese Mid-tier nizations as possible since I was assigned and area or enterprise size, more Japanese compa- standing of our public relations (PR) activity. have gathered their opinions, including various nies have been continuing to shift their focus to This PR activity will not only help to make management problems and their needs for expanding business overseas because of their JBIC’s financial support for mid-tier JBIC. Japanese mid-tier enterprises and SMEs corporate strategies aimed at benefitting from enterprises and SMEs more widely known to expressed their needs of investment informa- the growth of emerging countries. the public, but also to show more people Enterprises and SMEs tion on emerging countries, which have grown ▶Usuyama One of JBIC's strengths is the about how vigorous mid-tier enterprises and much more diverse over the last 21 years. At ability to support mid-tier enterprises and SMEs are in foraying into overseas markets. the same time, I found out that many mid-tier SMEs in entering into overseas markets by ▶Usuyama In the West Japan Office, I will enterprises and SMEs face the same business offering long-term foreign currency denomi- make various efforts to support Japanese mid- challenges, such as how to cope with the major nated loans. Especially in recent years, there tier enterprises and SMEs in starting their busi- structural changes of the global market and has been increasing demand for borrowings in ness overseas by capitalizing on our flexibility in their business succession in Japan. I wish to help local currencies, such as Thai baht and Indian meeting their wide range of financing needs. I them to address such business challenges not rupee in addition to the U.S. dollar and euro. would like to provide our financing support in a only by providing our financial support, but also Under such circumstances, we have gradually more creative and innovative way, such as by by making the best use of our information, been increasing our experience in providing developing new financing schemes where knowledge and overseas networks. I am deter- financing in local currencies. On the other necessary to proactively address their financing mined to tackle such business challenges with hand, some mid-tier enterprises and SMEs are needs or providing business matching services. mid-tier enterprises and SMEs and grow hand not yet aware that they can utilize our financial If those efforts are implemented, I will give in hand with them. support. One of our challenges is to make feedback of the results to the Head Office. ▶Suzuki I have also been very busy visiting JBIC’s presence and financing support services ▶Usuyama and Suzuki We, in collaboration mid-tier enterprises and SMEs across Japan widely known among those mid-tier enter- with regional financial institutions, will make since I was assigned. I even visited their over- prises and SMEs. our best efforts to support Japanese mid-tier seas offices in countries where many of them ▶Suzuki I totally agree with you on that enterprises and SMEs in expanding their busi- have already started business, such as Thailand point. I would like to identify the potential ness overseas with a sense of security. JBIC’s Financial Support for Japanese Mid-tier Enterprises and SMEs with Diverse Financing Needs JBIC’s financial support schemes for Japanese mid-tier Promoting alliance between local financial institutions in enterprises and SMEs developing countries and Japanese regional financial institutions

JBIC offers the following financial support schemes to respond to the diverse financing needs of Japanese mid-tier enterprises and small and 01. 02. medium-sized enterprises (SMEs) by strengthening the alliance with Japanese private-sector financial institutions and local banks in countries or Establishing Japan Desk and Providing overseas regions where those Japanese companies plan to start a business. organizing follow-up seminars investment information

JBIC signed memoranda of understanding (MOUs) for business cooperation JBIC provides Japanese mid-tier enterprises and SMEs with overseas with local banks in the countries of Asia as well as local banks and state investment information, such as by organizing consultation sessions and Basic Financing Scheme governments of Mexico with an aim to establishing a specialized contact point investment seminars across Japan. for Japanese enterprises (“Japan Desk”) in those local banks which provides a wide range of financial products, services and consultancy for Japanese mid-tier Overseas project enterprises and SMEs when they arrange financing outside Japan. Overseas investment seminars Under the MOUs, those local banks and state governments have established and Investment, capital increase, JBIC holds overseas investment seminars across Japan to provide Parent company expanded their Japan Desks to assist Japanese overseas subsidiaries in loan from a parent company information about the current state of overseas expansion by Japanese Overseas subsidiary (in Japan) coordinating financing for their business by providing them with financial companies which is gathered through the JBIC’s survey on overseas services such as account opening, foreign exchange and remittance transactions. investments by Japanese companies This has eventually resulted in creating new business between those local JBIC also organizes investment seminars focusing on investments in banks and Japanese overseas subsidiaries. Domestic financing promising emerging countries such as India, China, Indonesia, Vietnam and In addition, JBIC organizes follow-up seminars on a regular basis inviting staff Thailand. members from Japanese regional financial institutions and the Japan Desks of Direct financing (in USD, JPY, EUR, or other currencies) Japanese financial foreign local banks, which have signed MOUs with JBIC for business institution cooperation. The purpose of these follow-up seminars is to deepen mutual understanding of business partnership between those local banks and Japanese Advisory services on overseas investments regional financial institutions through the discussions of issues and challenges JBIC provides advisory services to projects which JBIC has financed by faced by the Japan Desks of those local banks, including the dispatch of external professionals at the early stage of the project development process, trainees, and the shape of their business alliance. covering the following fields, in the following countries or regions: Advisory fields: (1) Taxation and accounting, (2) Law Two-step Financing Scheme Two-step Financing Scheme Recent follow-up seminars Countries or regions: (1) China, (2) India, (3) 10 ASEAN countries* (through a Japanese financial institution) (through a leasing company) Second follow-up meeting and seminar with Kasikornbank (May 2016 in Tokyo) (*Indonesia, Singapore, Thailand, the Philippines, Malaysia, Brunei, Vietnam, Myanmar, Laos, Second follow-up meeting and seminar with Metropolitan Bank Cambodia), (4) North America, Latin America, the Middle East (July 2016 in Tokyo and Osaka) Overseas project Overseas project First follow-up meeting and seminar with Mexican state governments and bank (November 2016 in Tokyo and Osaka) Overseas subsidiary Overseas subsidiary First follow-up meeting and seminar with BDO Unibank (February 2017 in Manila)

Parent Direct company Finance financing (in Japan) lease Japanese financial Leasing company

JBIC Tod a (local corporation) JBIC Tod a institution Domestic Second follow-up meeting and First follow-up meeting and financing seminar with Metropolitan Bank seminar with BDO Unibank (July 2016 in Tokyo) (February 2017 in Manila) y S p Domestic Direct y S p financing financing ecial I s ecial I s East Japan: Head Office, Finance Division for SMEs of East Japan s s

u Japanese financial Japan Bank for 4-1 Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-8144, Japan Tel: 03-5218-3579 u e e institution General contacts International Cooperation West Japan: West Japan Office, Finance Division for SMEs of West Japan (JBIC) 10th floor, Umeshin Daiichi Seimei Building, 3-5 Sonezaki 2-chome, Kita-ku, 2 Osaka-city, Osaka 530-0057, Japan Tel: 06-6311-2520 3 Map of Japanese Mid-tier Enterprises Note: Description of each deal (from left to right): location of the headquarters; company name; country of destination; and products/business. Fukushima Asahi Tsushin Co., Ltd. Indonesia Wire harnesses and SMEs with JBIC Financing Yamagata Goto Denshi Co., Ltd. The Philippines Electronic parts

Chiyoda-ku, Tokyo P6-7 Unika Holdings Co., Ltd. Development and operation of an industrial park Kanazawa City, Ogaki City, Sabae City, with a management team in Vietnam P8-9 P12-13 P18-19 Ishikawa Prefecture Gifu Prefecture Fukui Prefecture Tamada Industries, Inc. SUZUKI EIKODO CO., LTD. CHARMANT INC. Manufacturing and sales of Manufacturing and sales of Manufacturing and sales of eyeglass frames underground tanks for oil reserve in Vietnam Japanese candies in Vietnam and sunglasses in China and other countries

Maebashi City, Shinagawa-ku, Tokyo P14-15 P26-27 Gunma Prefecture Haso Ltd. Farmdo Corp. Production and sales of Solar power generation business Refrigerating, processing and Yamako Co., Ltd. China hygiene and cleaning products in China in Mongolia Aichi sales of nori Nagoyashokuryo Co., Ltd. Thailand Rice products Fukuyama City, Kure City, P10-11 P20-21 Tohoku Hiroshima Prefecture Hiroshima Prefecture Underground petroleum Ishikawa Tamada Industries, Inc. Vietnam KAIHARA CORPORATION Benda Kogyo Co., Ltd. storage tanks region Manufacturing and sales of Manufacturing and sales of Higuchi Manufacturing Co., Ltd. Mexico Auto parts denim fabrics in Thailand metal rings for automobile parts in Thailand Gifu SUZUKI EIKODO CO., LTD. Vietnam Candies

Shizuoka Facelabo Co., Ltd. Thailand Health food and supplements

Toyama ATSUMI FASHION CO., LTD. Myanmar Clothing Lacto Japan Co., Ltd. Thailand Dairy products (*processing and sales business) Hayashi Techno Co., Ltd. China Plastic magnets Nagano Tokyo Haso Ltd. China Hygiene and cleaning products KOYAMA Co., Ltd. Thailand Castings Toyota Kohki Co., Ltd. India Moulds for precast concrete products JAPAN A.M.C. LTD Thailand Fittings for construction Fukui machinery and automobiles Saitama Nakagawa Mfg. CO., LTD. Vietnam Labels CHARMANT INC. China and others Eyeglass frames Kanagawa SUN ACE CORPORATION Brazil Polyvinyl Chloride Stabilizer Marugo Rubber Industries, Ltd. Indonesia Auto rubber parts Okayama Credit line for THE SHIZUOKA BANK, LTD. Toei Chemical Industry co., ltd The Philippines Industrial rubber products Gunma Uchiyama Manufacturing Corp. Vietnam Auto parts Credit line for The Hachijuni Bank, Ltd. SUN ENGINEERING Co., Ltd Thailand Mechanical equipment (assembly and installation) KAIHARA CORPORATION Thailand Denim fabric Credit line for The Hokuriku Bank, Ltd Credit line for The Joyo Bank, Ltd. Hiroshima Bankoku Needle Mfg. Co., Ltd. Thailand Needles for handicrafts, etc. Credit line for The Chiba Bank, Ltd. Benda Kogyo Co., Ltd. Thailand Auto parts Chubu Kanto Credit line for The Bank of Yokohama, Ltd. Credit line for The Hiroshima Bank, Ltd. region region Credit line for The Chugoku Bank, LTD. Osaka City, Osaka P16-17 Tokushima MARUHISA Japan CO., LTD Bangladesh Clothing Saraya Co., Ltd. Ehime SAKURAI CO., LTD. Vietnam Clothing Chugoku Production and sales of region sanitation and healthcare products in Thailand Credit line for The Hyakujushi Bank, Ltd Kansai region Saraya Co., Ltd. Thailand Health and sanitation products MARUYONE CO., LTD. The Philippines Fishing tackles Shikoku Osaka TAIKI Corporation, Ltd. Cambodia Cosmetics related products region Nagaoka Co., Ltd. China Fragrances and food flavors Tiger Corporation. Vietnam Stainless bottles Takeo City, P22-23 Fuchu City, Tokyo P22-23 Osaka City, Osaka P24-25 Saga Prefecture Kyoto NAXIS CO., LTD. Vietnam Secondary materials for apparels JBIC Tod a JBIC Tod a Fuji Concrete Industry Co., Ltd. Toyota Kohki Co., Ltd. Shiga GOHSYU CORPORATION Mexico Forged auto parts Osaka Sealing Printing Co., Ltd. Kyushu Production and sales of Manufacturing and sales of Manufacturing and sales of Nara GMB CORPORATION China Auto parts and components region concrete products in India concrete products in India adhesive labels in Thailand y S p y S p BOLTZ Co., Ltd Indonesia Automobile and motorcycle fastenings ecial I s Miyazaki Nichiwa Co., Ltd. China Auto parts Hyogo ecial I s DAI-ICHI DENSHI SANGYO CO., LTD. Laos Various electronic parts Saga Fuji Concrete Industry Co., Ltd. India Concrete products s s

u Yamamori Inc. Thailand Soy sauce (brewing and sales) u e Mie e Topia CO., LTD. China Auto parts

Credit line for The Senshu Ikeda Bank, Ltd. 4 5 Credit line for THE SHIGA BANK, LTD. Our Global Challenges Relationship with JBIC

In August 2014, JBIC signed a loan agreement totaling up to 1.4 million U.S. dollars (JBIC portion) with VIETNAM JAPAN TECHNOLOGY PARK COMPANY Unika Holdings Co., Ltd. LIMITED (VIE-PAN), a Vietnamese subsidiary of Unika Holdings Co., Ltd. The loan is cofinanced with Seibu Shinkin Bank, bringing the overall cofinancing amount to 2.008 million U.S. dollars. This loan is intended to finance Chiyoda-ku, Tokyo VIE-PAN’s construction and operation of the industrial park mainly for Japa- nese mid-tier and medium- and small-sized companies in Ho Chi Minh City.

Name Unika Holdings Co., Ltd. Established November 1965 (Reincorporated April 1, 2011 as the holding company of Unika Holdings Co., Ltd.) Capital 72 million yen President Yoshinori Yasumi, President & CEO Business lines Providing business strategy, management, incidental and related operations, and special services to each of the group companies that manufacture and sell various state-of-the-art tools including concrete drills and core drills as well as construction fastening materials such as anchors Headquarters 2-10-6 Iwamoto-cho, Chiyoda-ku, Tokyo 101-0032, Japan

Yoshinori Yasumi President & CEO Unika Holdings Co., Ltd.

Products of Unika HD Unika HD’s shaving collection drill system “Q Bit UX” powerfully gathers concrete shavings during drilling and prevents scattering. This new product eliminates the problems caused by shavings in traditional drilling and results in a clean, good working environment. Industrial development in Ho Chi Minh City by leveraging the expertise of

Supporting the overseas expansion not only a profit-making business but also Ho Chi Minh City People’s Committee to Japanese SMEs of Japanese SMEs through the one of our social contribution projects. manage the Vie-Pan Techno Park. In Octo- operation of an industrial park Profit should not be the sole purpose of a ber 2014, a rental plant was completed in a company. As long as we are part of society, 13 ha premise, and Japanese companies Supporting the growth of Vietnam by operating and managing an industrial park Unika HD has an original approach in its we must contribute to society together and started moving in from the following month. overseas business, as evidenced by the indus- do business for the benefit of society too. “Our local joint company had to pro- Unika Holdings Co., Ltd. (hereafter “Unika HD”) is a medium-sized company with Unika Company Limited as trial park in Ho Chi Minh City that started in The same is true even in other countries.” cure capital for the construction and man- 1996. Specifically, the company takes care of agement of the industrial park because Ho its subsidiary engaged in the manufacture and sale of concrete drills, core drills and other cutting tools and human resource management, accounting, Chi Minh City is taking the initiative in this construction fastening materials. The company has been doing business in Ho Chi Minh City, Vietnam since Contributing to the industrial general affairs, logistics, material arrange- project, so we asked JBIC for financing. We 1996 through its local subsidiary, and it operates and manages an industrial park for Japanese mid-tier development project of ments and general administration on behalf of were highly satisfied with the business with enterprises and small- and medium-sized enterprises (SMEs) entering Vietnam. Unika HD’s business was Ho Chi Minh City Japanese mid-tier companies and SMEs that JBIC, because the loanterms were favorable highly evaluated, and so it was asked in 2013 by the city to help Japanese SMEs develop supporting started doing business in the city. In 2013, the project got a kick-start. Ho and the enormous amount of paperwork for industries in Vietnam. The most serious issue for the companies Chi Minh City appreciated how Unika had local procurement went very smoothly. In when expanding abroad for the first time is the smoothly run the industrial park over the Vietnam, infrastructure development is cost, labor and time for start-up. A rental years, and so asked it to help support the starting to take off and this will boost the Growing as a manufacturer steadily growing. Recalling the company’s solid reputation as a manufacturer specializ- factory with managerial staff allows a company development of Vietnamese industry. economy. Japanese SMEs will continue to specializing in state-of-the-art tools half-century history, President Yasumi ing in advanced tools.” to easily secure a plant and office and start The city has been actively building expand in Vietnam, and we wish to contrib- JBIC Tod a for half a century commented, “We have survived the compe- Unika HD has been actively expanding production and sales locally. Because Japanese export processing zones and industrial parks ute to Vietnam’s nation-building through JBIC Tod a tition by building nationwide sales channels such manufacturing business, and entered or Japanese-speaking local managers handle to strengthen its export competitiveness. this project.”

y S p Since its foundation in 1965, Unika HD that can immediately respond to market China in 1995, Vietnam in 1997, and daily management work, the company does Hiep Phuoc Industrial Park (site area of 19 years ago, Unika HD started this y S p

ecial I s has been producing and supplying indis- needs, pursuing quality and a good working India in 2013. not need to employ managers of their own. 2,000 ha) is the largest among them, and is project with the aim of helping Japanese ecial I s pensable tools for improving social infra- environment for people involved in con- “Because operations at our China plant where Ho Chi Minh City decided to con- SMEs do business easily in Vietnam. That s s u structure such as construction, civil engi- struction, and focusing on research and went smoothly, we started to support Japa- struct an industrialpark exclusively for SMEs effort is now contributing to the develop- u e e neering, electric, water service, and infor- development of innovative products like nese mid-tier companies and SMEs wishing and appointed Unika HD as the Japanese ment of supporting industries in Vietnam. mation technology. The market share of its diamond tools and hard metal tools. to enter Vietnam, using our accumulated partner. In response, Unika HD set up a 6 7 concrete drills, one of its main products, is Through such efforts, we have gained a experience and know-how. This project is joint company with a company affiliated with Our Global Challenges Relationship with JBIC JBIC signed a loan agreement totaling USD6.3 million (JBIC portion) with Tamada Industries, Inc. The loan is cofinanced with the Bank of Tokyo-Mitsubishi UFJ, Ltd. and The Hokkoku Bank, Ltd., with the overall Tamada Industries, Inc. cofinancing amount reaching the equivalent of USD9 million. The loan will finance the funds that Tamada Industries needs for TAMADA VIETNAM Kanazawa City, Ishikawa Prefecture COMPANY LIMITED, which is Tamada Industries’ wholly-owned subsidiary, to manufacture and sell underground petroleum storage tanks, Tamada Industries’ as well as other tanks and tank-related products. S&F Double-wall Name Tamada Industries, Inc. Tank Established April 1, 1950 Incorporated July 3, 1957 Tamada Industries has the Capital 52.5 million yen largest share in the S&F Yoshiaki Tamada President Yoshiaki Tamada, Representative Director and President Double-wall Tank market Representative Director and President Business lines Design and construction of various underground tanks and water in Japan and has installed storage tanks for firefighting, and design and construction of gas 22,000 units in total (as of Tamada Industries, Inc. stations September 2014). Headquarters Ha 61-1 Muryojimachi, Kanazawa, Ishikawa Prefecture 920-0332, Japan Equipped with a leak Plants Headquarters, Hokuriku plant, Kanto plant, Kyushu plant, monitor, corrosion of the Vietnam plant steel layer is detected before it causes soil con- tamination. Thanks to their excellent safety and reliability, Tamada’s earthquake-resistant water tanks for firefight- ing are being used to store contaminated water at the Fukushima Daiichi Nuclear Power Station. Completion ceremony in Vietnam Distributing the technology of the leading company in underground tank market

From Kanazawa to Asia: series of bold moves I took immediately gram, President Tamada perceived the our products is not expected to grow in the after becoming president greatly helped to potential of the business in Vietnam and Japanese market with its falling population, Tamada Industries, Inc. specializes in the manufacture and sale of various types of underground tanks. develop the company.” established a wholly-owned subsidiary we judged that it was the time to invest for In particular, it is the leading company in the market for underground steel and S&F Double-wall Tank for gas “TAMADA VIETNAM COMPANY LIM- the medium to long term and so we made stations, with a 75% share of the Japanese market. ITED” in February 2014.Note The company the investment.” Since its establishment in 1950, Tamada Industries has been growing in the market by executing an First wave of going global started to construct a new plant on the The expansion to Vietnam is the second aggressive business strategy to keep a step ahead in the industry. President Tamada made full use of outskirts of Hanoi, the capital of Vietnam. wave of Tamada Industries. “If we had not It is now actively expanding its overseas business as the second wave in its 65-year history. managerial skills to expand the business “We had two major objectives in ex- done what we did 22 years ago, our com- On April 24, 2015, a new plant in Vietnam was completed as the base for overseas expansion. overseas. He started transferring technol- panding in Vietnam. One was to manufac- pany would no longer exist. Likewise, if we ogy licensing to Thailand, Malaysia and ture outsourced parts of the earthquake- do not make a move now, we cannot expect China in 1998, and formed a joint venture resistant water storage tank, which will be growth 10 years later. Although expansion in China in 2010. a mainstay of our future business, in house requires a huge investment, we feel secure Supporting the company’s growth region to the entire nation in 1993. Building manufacturing knowhow, he bet the com- However, overseas development did not and then export those internally- because we were able to borrow a long-term through execution of on its technical skills, the company success- pany and started developing the product. go smoothly. “Because technology licensing manufactured parts to Japan. The other loan under favorable conditions from JBIC aggressive business strategy fully developed the S&F Double-wall Tank Finally, the company succeeded in devel- is a five-year contract, nothing is left once was to manufacture tanks and metal parts, when we needed it.” in 1994. He made a massive investment in oping the S&F Double-wall Tank after the technology is transferred. We knew this and sell them to Japanese companies ex- The new plant was completed on April According to President Tamada, “We equipment, started shipping products nation- much trial and error. Applying the tech- when we started the joint venture in China, panding into Southeast Asia. 24, 2015. Tamada Industries is aiming for are the leading manufacturer in the niche wide, and acquired the largest share of the nology used in the S&F Double-wall Tank but we disbanded it because the Chinese annual sales of 300 million yen in the first market of S&F Double-wall Tank, with a domestic market within a few years. as the basis, Tamada Industry developed government introduced a policy which made New progress with year, rising to 0.8 to 1 billion yen in five 75% share in terms of sales.” The S&F Double-wall Tank, Tamada’s and launched earthquake-resistant and it hard to expand the S&F Double-wall Tank the second wave years. “Medium-sized companies must not JBIC Tod a President Tamada’s ability to execute an leading product, uses steel sheet for the fire-fighting water tanks in 1995, under- market in China.” lose their focus. In particular, slow JBIC Tod a aggressive business strategy is the driving inner wall and fiber-reinforced plastic ground storage tanks in 2005, and the To overcome the impasse, the company President Tamada is looking further decision-making means losing the competi-

y S p force behind the company’s growth. Since (FRP) for the outer wall. The amendment water circulating storage tank “Aqua in decided to expand in Vietnam next. It coop- ahead: “Japanese companies are constructing tion in today’s highly competitive age,” said y S p

ecial I s being appointed as the third president in of the Fire Services Act in 1993 permitted PIT” in 2009. These innovative products erated on the provision of technology to oil refineries in Vietnam and are expected to President Tamada. He is looking forward to ecial I s 1991 at the age of 43, he has been leading the manufacture of light and durable S&F gave the company a firm competitive posi- Vietnam’s largest oil distributor to manufac- move into retailing. Business opportunities making further progress with his quick deci- s s u the company with quick decision-making and Double-wall Tank instead of the traditional tion as a specialist manufacturer of under- ture and bury S&F Double-wall Tank will increase greatly when these companies sion making and execution. u e e execution. To boost sales, he set up a sales steel tank. President Tamada immediately ground tanks. through the Japanese government’s official start putting their plans into practice, and it Note: office in Tokyo and expanded the sales area flew to the US to study manufacturing “As the third president, I wanted to development assistance (ODA) program will be too late to start once the trend Because Tamada Industries accepted a capital increase from THE 8 KAWATEX CO., LTD. in March 2015, currently Tamada Industries 9 from three prefectures in the Hokuriku methods, and after returning to Japan with innovate at the earliest opportunity. The starting in 2013. In carrying out the pro- becomes visible. Because the demand for owns 70% and Kawatex owns 30%. Relationship with JBIC Our Global Challenges JBIC signed a loan agreement totaling up to 37 million US dollars (JBIC portion) with KAIHARA CORPORATION (KAIHARA) in September 2014. The loan is cofinanced with The Hiroshima Bank Ltd., The Bank of Tokyo- KAIHARA CORPORATION Mitsubishi UFJ, Ltd. and The Shoko Chukin Bank, Ltd., bringing the overall cofinancing amount to 58 million US dollars. JBIC signed another loan agree- ment totaling up to 28.9 million US dollars (JBIC portion) with KAIHARA in Fukuyama City, Hiroshima Prefecture September 2015. These loan agreements are intended to finance the estab- lishment of KAIHARA (THAILAND) CO., LTD., a Thai subsidiary of Kaihara, and its denim manufacturing and sales business. The loan will support the over- seas expansion of KAIHARA and thereby contribute to maintaining and strengthening the international competitiveness of Japanese industry.

Name KAIHARA CORPORATION Established 1893 Junji Kaihara Incorporated March, 1951 Capital 151 million yen Vice Chairman KAIHARA CORPORATION President Mamoru Kaihara, President Business lines Integrated production (spinning, dying, weaving, processing) and sales of denim Headquarters 1450 Tsune, Shinichi-cho, Fukuyama City, Hiroshima Prefecture 729-3107, Japan Kaihara has a well- Network Head Office, Shin-Ichi Mill, Kisa Mill (Miyoshi City, Hiroshima), established production Joge Mill (Fuchu City, Hiroshima), Sanwa Mill (Jinseki-gun, Hiroshima), system that spans the Thailand Mill (Ratchaburi Province, Thailand) entire process from spin- ning of raw cotton to dyeing, weaving of fab- rics and processing. The high quality of Kaihara products is praised as “Kaihara Quality,” and Kaihara has more than a The new plant in Ratchaburi Province, which 50% share of the do- lies 90 km west of Bangkok, has a site area of mestic blue denim 140,000 m2 and a building area of 36,530 m2. market and also boasts The weaving mill and product warehouse the top share in exports have been operating since November 2015, of blue denim. and a dye works is under construction. Leaving the world-renowned “Kaihara Quality” to the next generation

Establishing a production base in Thailand for the expanding denim market store retailers of private label apparel didate sites including Thailand, Indonesia, ducing the Kaihara Quality and developing (SPA)Note became its main customers as China, and Vietnam, while also consider- skilled human resources to produce the Established in 1893, KAIHARA CORPORATION (hereafter “Kaihara”) is Japan’s largest denim fabric women started to wear jeans more frequently ing using a financing system that supports same quality overseas. As part of their manufacturer, supplying high-quality denim fabrics to apparel manufacturers, both at home and abroad, around 2000. SPAs then started to expand the overseas development of companies effort to achieve this, they invited 15 including EDWIN, Levi’s, UNIQLO and GAP. Kaihara’s dominant presence in the market owes to its overseas, and this required Kaihara to build a offered by their existing banks. “In the locally hired employees to Japan in Novem- well-established integrated production system that spans the entire process from spinning of raw cotton to factory near the point of consumption. course of discussions on utilizing a financ- ber 2014 for a six-month training program dyeing, weaving of fabrics and processing. In particular, the indigo-dyeing technology that has been “There are three major reasons for ing system, we learned that JBIC helps at the production site. developed since its foundation is highly praised. In March 2014, it established its first overseas operation going overseas: local procurement of raw mid-tier enterprises and SMEs to expand The new plant in Thailand was com- base in Thailand in anticipation of steady growth of the denim market worldwide, especially in emerging cotton, inexpensive infrastructure and large overseas, and so we decided to use their pleted in April 2015, the opening cer- countries, on the back of economic and population growth. Since then, Kaihara has worked hard to increase markets. We decided to build a plant in financing system. We are very grateful to emony was held on October 11, and pro- its market share by leveraging its competitiveness realized by local production. Thailand in anticipation of market expan- JBIC for their financial support, and duction started in November. Kaihara is sion. In addition to the 600 million people would appreciate their advice in the initially dispatching 20 or so employees in the ASEAN market, the scheduled inau- future when problems arise during opera- from Japan for about 200 locally hired Investing in the next stage to generation in the Bicchu and Bingo districts long-standing community-based policy.” Its guration of the ASEAN Economic Commu- tions in Thailand.” employees, but plans to station about five prepare for the changing (currently in Okayama Prefecture). It used decision to invest about 10 billion yen to nity (AEC) was a major factor. Moreover, Kaihara had no experience of overseas or six Japanese employees for mentorship business environment to be pure craftsmanship. We mechanized build a manufacturing plant in Thailand was Australia will enter the market when the production because it had been doing busi- in the long term. Mr. Kaihara said, “We this traditional craftsmanship and applied it a bet-the-company project, as sales for the Trans-Pacific Partnership (TPP) comes into ness and developing technologies in its local urged Thai employees to take the initia- Kaihara has more than a 50% share of the to denim manufacturing, making the new year ending February 2015 were just 16.7 effect. All these factors will make Thailand production area of woven products for 120 tive after the opening ceremony. We may

JBIC Tod a domestic blue denim market and also boasts craftsmanship our core technology. Our billion yen. even more promising as a center of com- years since its foundation. Vice Chairman face many difficulties, including the JBIC Tod a the top share in exports of blue denim. Its integrated manufacturing system based on Changes in market structure and custom- mercial distribution. Kaihara commented: “Bingo Kasuri used to language barrier, but we are determined

y S p denim products, highly praised as “Kaihara this core technology has become our greatest ers were the reasons behind this major deci- be woven inside the household, and this to overcome them for the growth of our y S p

ecial I s Quality”, have garnered global credibility for asset and advantage.” sion. Japan has had a continuing trend of low Demonstrating the value of the skill has been passed down from generation company.” Kaihara has taken a bold step ecial I s their “Made in Japan” quality. Kaihara has long stood by integrated birthrate and long lifespan, and the number of Japanese way of manufacturing to generation without interruption. to demonstrate the value of the Japanese s s u Vice Chairman Mr. Kaihara explained domestic manufacturing despite the global- youths who are the main purchasers of denim Whether or not we can make this kind of way of manufacturing. u e in the new environment e his passion and community-rooted attitude ization of production. Kaihara’s decision to products has been decreasing. Furthermore, skill effective in areas outside the produc- Note: to manufacturing: “The indigo dyeing tech- expand overseas was therefore “a major though the biggest customer segment was After Kaihara made the decision to tion origin depends entirely on our efforts.” SPA is the abbreviation of “speciality store retailer of private label 10 apparel”, and indicates an apparel maker of casual clothes. 11 nology has been inherited from generation to step because it required a change from its apparel makers specializing in jeans, specialty expand overseas, it inspected several can- The greatest challenge they face is repro- Our Global Challenges Relationship with JBIC

In February 2015, JBIC signed a loan agreement totaling up to SUZUKI EIKODO CO., LTD. USD1.75 million (JBIC portion) with EIKODO VIETNAM CO., LTD. (EKD), a Vietnamese subsidiary of SUZUKI EIKODO CO., LTD. The loan Ogaki City, Gifu Prefecture is cofinanced with The Juroku Bank, Ltd., THE OGAKI KYORITSU BANK, LTD., THE SHIGA BANK, LTD. and other financial institutions. It is intended to finance EKD for the business of manufacturing and selling candies.

Name SUZUKI EIKODO CO., LTD. Established 1877 Incorporated 1933 Capital 50 million yen President Yuzuru Suzuki Yuzuru Suzuki Business lines Manufacturing, confectionery wholesaling, toy imports President SUZUKI EIKODO CO., LTD. Headquarters 50 Tawara-machi, Ogaki City, Gifu Prefecture 503-0876, Japan Plants No. 2 plant, Yoro distribution center, Tokyo office, Iga plant, Vietnam plant

Focusing on candies, choco- lates, and jellies (right photo) as its main products, Suzuki Eikodo captured the highest share in the market of products for amusement facilities and parks. Even in terms of exports to the world market where Japanese sweets are becoming increasingly popular, the com- pany is the industry leader. It is now expanding private-label products for convenience stores and 100-yen shops. Opening ceremony of the Vietnamese plant Providing safe Japanese confectioneries worldwide

Launching candy manufacturing and sales in Vietnam with the dedication of reduce its dependence on the amusement busi- companies we purchased into our group to number of children.” a long-established company ness which was suffering due to the slow grow together. Overseas, however, the In expanding to Vietnam, Suzuki Eikodo growth of domestic economy, it improved and ‘Cool Japan’ boom in emerging countries used JBIC’s scheme for financing the manu- Founded in 1877, SUZUKI EIKODO CO., LTD. (hereafter “Suzuki Eikodo”) is a longestablished small and expanded its private-label products for conve- with their growing populations offers a big facturing and sales business of EKD. medium-sized enterprise (SME) well known for “ZELIKO”, a box of candies with a prize inside. The company nience stores and 100-yen shops. In 2008, the opportunity for Japanese companies. As a “Because we are not allowed to purchase focuses on the wholesaling of confectioneries (candy, chocolate, jelly, etc.), while also designing products, company acquired Eagle Confectionery Co., Japanese confectionery manufacturer, we land in Vietnam, we used a 50-year lease con- manufacturing and taking orders as an OEM under license from major confectionery makers. It is the leading Ltd., a manufacturer of chocolates, jellies and plan to be among the first to expand over- tract. However, leased property cannot be manufacturer of products designed for amusement facilities and parks, including prizes for arcade games. cookies, and in 2015, Chambord Co., Ltd., a seas and capture a substantial market used as collateral, which makes it very hard to As it approaches its 140th anniversary next year, Suzuki Eikodo is actively carrying out a growth strategy long-established company manufacturing and share,” said President Suzuki. borrow money in Vietnam. But JBIC’s financ- based on the promotion of M&A in Japan as well as strengthening its business overseas. The company was selling baked confectionery, and organized In line with its strategy, Suzuki Eikodo ing system enabled us to collect funds without the first Japanese confectionery manufacturer to expand into Vietnam in December 2014, making the first them as affiliates. The manufacturing established EIKODO VIETNAM CO., LTD. any difficulty. Without it, our business expan- move to stay ahead of the game. department’s annual sales have now risen to 2 (EKD) as its candy production and sales base sion would have been much slower. billion yen. in Vietnam. “As the successor of the family “On November 4, 2015, the company As a result of these three reforms, Suzuki business, my mission is to keep growing the held the opening ceremony of the Eikodo Three challenges of company for 12 years, President Suzuki joined seas subsidiary in China in 2011, and started Eikodo’s annual sales have grown to 7.5 manufacturing business, which is our main Vietnam Plant, and began shipping products a small company Suzuki Eikodo, which had, at the time, only exporting and selling Japanese confectionery billion yen, making it the leading company in business. In order to do this, I selected Viet- at the end of December. It first sold the five employees and annual sales of 140 million at Japanese-affiliated convenience chain stores two of its three business fields in Japan. nam to acquire the largest share in the niche products to independent grocery stores and “The castle town of Ogaki was famous yen. He carried out three reforms – the first in Shanghai. “Japanese confectionery became market of candies. Although Thailand and in the wholesale market in Vietnam, and JBIC Tod a for manufacturing Japanese confectioneries, was to develop new products. He signed con- an explosive hit thanks to the weak Japanese Bringing “Cool Japan” to the Indonesia are also promising, we have little then began selling to Japanese-affiliated JBIC Tod a and we too started out by making confec- tracts with major amusement companies and yen, booming popularity for Japanese prod- Vietnamese confectionery market chance of competing successfully in those supermarkets and convenience stores from

y S p tioneries. We began manufacturing caramels started manufacturing confectionery for crane ucts in the Chinese market, and the burgeon- two countries against major companies. In March 2016. “We want to provide safe y S p

ecial I s in the 1910s, which was the only product we game prizes in game arcades. The company ing middle class. Our company became the The two mainstays of Suzuki Eikodo’s Vietnam, confectionery shipments are esti- Japanese confectionery worldwide – safety ecial I s made until 2002,” said President Suzuki, has since captured the biggest market share in largest exporter of Japanese confectionery, growth strategy are M&A in Japan and mated at 70 billion yen, of which candies and quality first, cost second,” said Presi- s s u looking back on the company’s long history this field, and its annual sales have risen to the and our annual sales reached 2.5 billion yen strengthening of its overseas business. account for about 700 million yen. The ship- dent Suzuki. Today, too, their candies are u e e and tradition. current 3 billion yen. within five years,” said President Suzuki. “M&A is the only way to grow in the ments are much smaller than those in Japan, delivered from the new plant, with the The candy manufacturer reached a turn- The second reform was the overseas The third reform was strengthening the domestic market as demand is not expected but we have high expectations for the Viet- dedication of a long-established company. 12 13 ing point in 2002. After working for a trading expansion. Suzuki Eikodo established its over- company’s manufacturing department. To to increase. This is why we brought the namese market because of the greater Our Global Challenges Relationship with JBIC

In March 2016, JBIC signed a loan agreement amounting to USD3.5 million (JBIC portion) with HASO. The loan is cofinanced with THE Haso Ltd. CHIBA BANK, LTD., with the overall cofinancing amount reaching USD5 million. It is intended to finance HASO for expanding production Shinagawa-ku, Tokyo facilities of hygiene and cleaning products produced by its Chinese subsidiary, HASO SANITARY MATERIALS (SUZHOU) CO., LTD. (HSM). JBIC also signed in October 2014 a loan agreement amounting to USD1.4 million (JBIC portion) with HASO for expanding HSM’s produc- tion facilities.

Name Haso Ltd. Established 2001 Capital 50 million yen CEO Kikuo Yamada Business lines Manufacturing and sales of hygiene and cleaning products Headquarters 2-19-3 Nishi-Gotanda, Shinagawa-ku, Tokyo 141-0031, Japan Kikuo Yamada Factories Ishikawa factory (domestic), China factory, Thai factory, and the U.S. factory (overseas) CEO Haso Ltd.

Disposal diapers using revolutionary functional materials created a sensation at exhibitions Innovating hygiene products to bring more comfort to people across the world

Enhancing overseas production to compete with global peers The company continued to grow, and making functional materials. They have Bringing Haso brand to the world finally reached a revenue of 5.2 billion yen in revolutionized the conventional style of by turning unique ideas into original products 2015. It expects to achieve 15 to 20 billion diapers – fashionably designed, thin and Fifteen years have passed since Haso in two years from now. Even with this light, comfortably fitting with excellent began its production in China. Mr. Yamada Haso Ltd (hereafter “Haso”)., a Japanese small and medium-sized enterprise (SME), holds a number of accomplishment, Mr. Yamada is still girding elasticity, added with a pad which has reconfirmed the importance of being able patents for its key products such as handy wipers and wet tissues. With its advanced skills, it designs and up his loins: “we only achieved our initial high absorbing and deodorizing functions. to procure funds for a company to grow manufactures hygiene and cleaning products which are highly praised. Haso supplies its products to major goal and reached the stage when we can The replaceable pad makes it highly eco- and pointed out that JBIC's loans have Japanese manufacturers, mass retailers, drug stores, and major overseas daily commodity makers as an finally begin what we originally wanted to nomical and reduces waste, so the prod- helped raise their credibility. Mr. Yamada OEM (original equipment manufacturer). Also active in expanding overseas businesses, the company built do. This is only the beginning.” uct has many advantages. They received a says, "We have used JBIC’s loans twice for production and sales bases starting from China in 2001, then Thailand in 2012, and the U.S. in 2014. This year great response at product exhibitions and expanding the production facilities of our (2016), Haso has launched a new epoch-making product using unique materials, while moving forward with Aiming for the global market are already attracting orders from major main plant in China. Each loan improved enhancing its own brand, setting their goal to compete in the global market with their original products. with unprecedented ideas and Japanese drugstores as well as major the recognition of Haso as ‘a company sup- epoch-making products American retailers. ported by JBIC.’" With the increasing population in Haso plans to enhance its own brand of Developing unique products – that is emerging countries and aging population products within this year toward their big Expanding to the Chinese market company's first production base. "Because product, the “Handy Wiper” drew the what Mr. Yamada wanted to do. “Until in developed countries, the diaper market goal. “We will always be the best in creat- with high ambition we didn't have any funds, we had to rent the attention of major companies both in now, we focused on creating products that continues to expand across the world. On ing one new product after another. We factory, and because we didn’t understand Japan and overseas who successively satisfy customers by just adding a bit of the company’s future development, Mr. want to become a company that has vast

JBIC Tod a “I was seriously aiming to achieve an any Chinese, we constantly relied on inter- ordered for OEM supplies, so Haso ingenuity to existing products. But what I Yamada says, “the global diaper market is networks and supporters across the world, JBIC Tod a annual turnover of 500 billion yen and get preters. We could not pay our ingredient expanded its facilities to increase produc- really wanted to do was to develop prod- worth 6 to 7 trillion yen. Our company however small we are. Our goal is to

y S p our shares to be listed. We didn’t have much suppliers on time as our deposits of proceeds tion. This is when Haso’s track record ucts that we can sell under our own brand. can target 100 to 200 billion yen. We will achieve a revenue of 15-20 billion yen with y S p

ecial I s money but I had the confidence that we could were delayed for the first two years or so. I suddenly began turning positive. After For the first time, we have the foundation make the new product at the China plant 15% profits in two years, and then com- ecial I s develop one new product after another. can't count how many times we were saved Haso gained momentum when it co- for developing and delivering products that whose facilities were expanded with the pete in the global market.” Mr. Yamada s s u ” This is the big target with which Haso by the local Chinese people," Mr. Yamada developed a product with a major Japanese never existed before.” loan from JBIC, and we plan to eventually takes steps forward each day to turn his u e e Ltd.'s CEO, Mr. Yamada, started the busi- looks back with a smile. manufacturer, the company began produc- What the company developed was a expand to Thailand.” dream into reality, envisioning the Haso ness. But he says it was not easy to operate It was not until 2005 that Haso reached ing toilet cleaners in Thailand in 2012, disposable underwear-shaped diaper for brand bringing joy and comfort to people 14 15 his business in China, where he chose as the a turning point. The company’s patented then wet tissues in the U.S. in 2014. infants and the elderly using epoch- across the world. Our Global Challenges Relationship with JBIC

In July 2015, JBIC signed a loan agreement amounting to THB25 million with Saraya MFG. (Thailand) Co., Ltd. (SMT), a Thai subsidiary of Saraya. The loan is cofinanced with Mizuho Bank, Ltd., with the overall Saraya Co., Ltd. cofinancing reaching THB40 million. It is intended to finance necessary funds in local currency for SMT to expand production facilities of Osaka City, Osaka Prefecture hygiene products.

Name Saraya Co., Ltd. Established 1959 Capital 45 million yen President Yusuke Saraya Business lines Development, manufacturing, and sales of health and sanitation products and services Consultation of food and environmental sanitation Development, manufacturing and sales of food products Yusuke Saraya Headquarters 2-2-8 Yuzato, Higashisumiyoshi-ku, Osaka City, President Saraya Co., Ltd. Osaka Prefecture 546-0013, Japan Factories Osaka and Iga (domestic); China, Thailand, U.S., Malaysia (overseas)

Starting from the symbolic “Yashinomi” series of household detergents made from palm oil (left photo), SARAYA has diversified into food and public sanitation, and into products that contribute to sanitation, the environ- ment, and health, such as Thailand factory where the products are medical products. being produced. Improving the sanitation, environment and health of the world through

Malaysia. Taking an initiative to “start with world (6 factories and 19 sales offices). fectant has recently been soaring with environmentally conscious products what we can do for a better environment,” One of its commitments to the society is the economic growth of Thailand and SARAYA began collaborating in 2004 with a the social action business aimed at improving surrounding countries in Asia. SARAYA number of organizations to work on rainforest sanitation in developing countries. In responded to this demand by expanding Making unique efforts in social action and environmental conservation initiatives restoration and biodiversity conservation in Uganda, for example, the company launched the facilities of its factory in Thailand, the the Sabah state of Borneo Island, which is one the “Wash A Million Hands” project in 2010 main manufacturing base for detergent Founded in 1959, Saraya Co. Ltd. (hereafter “SARAYA”) is a small and medium-sized enterprise (SME) of the source areas of the detergent’s ingredi- to promote communities’ awareness for products, and utilized the funds financed engaged in the production and sales of sanitation products. Since its establishment, it has pursued product ent, while inviting consumers to participate in hand washing. Then in 2011, SARAYA by JBIC. Mr. Saraya expresses his praise development and management that are grounded on environmentally conscious innovations, and has the “Borneo Explorers,” an initiative aimed at established a local subsidiary in Uganda with for JBIC, “we are grateful for being able to evolved into a company which is committed to improving the sanitation, the environment and health across raising consumers’ environmental awareness. the aim of improving the pour sanitation procure the funds denominated and in local the world. The company has actively expanded overseas with the concept of “connecting with the world As the motivation for his goal to achieve a environment of local medical facilities. In currency mitigate currency risks,” and through the global supply chains.” Not only does it provide products and services across the globe, but harmony between business and the environ- 2014, the company began the local manufac- added: “JBIC provides medium to long- SARAYA also engages itself in unique commitment to the society, such as social action businesses aimed at ment, Mr. Saraya explains: “our company’s turing of alcohol hand disinfectants and term funds based on the Japanese govern- raising sanitation awareness in developing countries, as well as environmental preservation activities in supply chain system is connected across the started delivering the products to Kenya the ment policy, without being affected by the Borneo Island to achieve harmony between the environment and industries. world, so I need to be responsible for all steps following year, in pursuit of a sustainable changing economic environment. In addi- of the supply chain process, from the back- business which addresses Africa’s social tion to its financial function, we would also yard to our customers.” issues, while creating local employment. like to rely on JBIC as one of our vital Commitment to environmentally mits to “environmentally conscious prod- effect. So it is mild on skin, and the wastewa- Besides Africa, SARAYA has also been information sources for regions such as conscious products ucts.” One such symbolic product is the “Yas- ter can be quickly biodegraded by microbes, Connecting with the world through carrying out the “Happy Handwash Project” in Africa, where Japanese private banks have hinomi Detergent,” a botanical kitchen deter- reducing the damage on the environment.” the global supply chains Cambodia since 2013, a social action business not yet expanded to.” “Our business first started during a dysen- gent launched in 1971. It was the first ever The company’s environmental consider- which promotes education on proper hand “Supplies from our factories in Japan

JBIC Tod a tery epidemic in post-war Japan when we botanical detergent when water contamina- ations also extend to the source of the ingredi- The passion to connect with the sanitation, as well as the use of antibacterial cannot catch up with the surging demand. JBIC Tod a created antibacterial liquid soap made from tion by petroleum-based synthetic detergents ents themselves. The production of palm oil, world through the supply chains can be liquid hand soap and alcohol hand disinfectant. We would have to consider building a new

y S p palm oil and distributed it along with dispens- had been a growing social concern at the one of the product’s botanical ingredients, seen in SARAYA’s active overseas business factory in a few years.” With commitment to y S p

ecial I s ers. The business field then diversified natu- time. It has been one of the longest selling continues to escalate due to the world’s grow- expansion. Since the establishment of its Increasing the production capacity improving the sanitation, environment, and ecial I s rally into food and public sanitation, as well as products, and has become SARAYA’s flagship ing demand for food. The response to this U.S. sales office in 1995, as well as produc- for improving the sanitation, health of the world through its wide-ranging s s u the environment and health,” Mr. Saraya, the product. “The coconut and palm oil based demand has led to disordered expansions of tion bases in China, Thailand, and U.S. in products and services, SARAYA strides u e environment and health of the world e president, looks back at his company’s growth. cleansing ingredients are purely botanical. plantations, cutting down the rainforests and the 2000s, the global network of the forward with firm, unwavering steps. As proven by the fact that the business The detergent contains no added fragrance or aggravating various environmental and social SARAYA Group has now expanded to 25 Demand for sanitation products such 16 17 started with palm oil soap, SARAYA com- colors which are unrelated to its cleansing problems in regions including Borneo Island, offices in 15 countries/regions across the as liquid soap, detergent, and hand disin- Relationship with JBIC Our Global Challenges Since 1993, when still known as the Export-Import Bank of Japan, JBIC has supported CHARMANT INC. with the establishment of overseas branches and enhancement of production facilities for overseas expan- CHARMANT INC. sion. All of the financial support was cofinanced with regional banks in the Hokuriku region, where CHARMANT headquarters is located. Sabae City, Fukui Prefecture Name CHARMANT INC. Established 1968 Capital 617 million yen (as of December 2015) Representatives Chairman: Kaoru Horikawa President: Masao Miyachi Business Development, production and distribution of optical frames, sunglasses and surgical instruments (ophthalmic / neurosurgery) Headquarters 6-1, Kawasari-cho, Sabae City, Fukui Prefecture 916-0088, Japan Factories Sabae City, Japan Dong Guan City, Guandong Province, China Xiamen City, Fujian Province, China Kaoru Horikawa Design studios: Chairman CHARMANT INC. Tokyo, Fukui, Milan, Paris, New York, Hong Kong Group companies: The company’s glasses US, Germany, France, UK, Hong Kong, China frames feature reliable quality, sophisticated design, and excellent com- fort and function (left photo). Applying the tech- nologies used in these products, CHARMANT is also developing and pro- ducing state-of-the-art medical devices made of titanium (right photo). Vision that Took Local Company Into and Beyond Global Eyewear Industry

Creating medical innovation out of local eyeglass frame manufacturer management and the other of design – and they Venturing into the medical business ingenuity to meet the needs of doctors have The CHARMANT Group’s modest beginnings can be traced back to 1956, when it started as one of Sabae started with just three people.” and revitalizing local economy produced revolutionary medical instru- City’s eyeglass frame parts manufacturers. The company gradually evolved into a fully-fledged frame After their persistent efforts in sales, ments. I believe that companies that own manufacturer by insourcing all the necessary parts production and surface processing in order to make CHARMANT eyewear’s finest quality was In 2012, CHARMANT embarked on a unique technologies should take the leading finished products. Growth continued with the creation of their own sales company, entry into the finally recognized, and the sales steadily brand new challenge. Using the state-of- roles and constantly venture into new fields international market, and commencement of overseas production, turning it into a global business with a increased. With the confidence after successes the-art precision processing technologies without fear of setbacks.” 70% overseas sales ratio. Their unique innovations in titanium processing have recently created light-weight in both Asia and the US, the company developed through R&D and production of Today, CHARMANT combines technolo- “Line Art” frames, solidifying their status as a premium brand. Now applying this technology to develop expanded to Germany, France, Great Britain, high-end eyewear, such as “LineArt”, they gies of eyeglass frame manufacturing with medical instruments, one can say that the last half century has been a history of continuous self-challenge and Italy from 1987 onwards. They continued began manufacturing and selling cutting- superior craftsmanship of Sabae – digital and for CHARMANT. to explore the European market by sending to edge medical instruments, which were analog – to lead Sabae’s innovation to become each branch a management expert who gained mainly titanium products. These products a new production base of world-class medical experience in the American market. Today, are made with four different materials – instruments, and also to contribute to local Clear vision to deliver premium did not fit the people of southeast Asia, but Asia, the company started to make moves to CHARMANT sells their products to a total of high-hardness special steel for the blade revitalization. With conviction, Mr. Horikawa eyewear across the globe the frames made for Japanese fit them with- expand into the US market, but this time they over 100 countries across the globe through edges of surgical scissors and titanium alloy states that “although we haven’t made huge out any adjustments. Secondly, while metal struggled desperately to find companies who agents, as well as by direct sales through local springs for the handles. The materials are steps yet, our medical business will be without CHARMANT first made its inroads into frames would easily rust in the southeast would be their agents. “The design and size subsidiaries in 12 countries. processed with CHARMANT’s unique laser a doubt successful in a few years. I believe the global arena in 1980 by exporting to Asian environment which is even more made for Japanese and Asians were not well Next, CHARMANT rolled up their micro welding technology, achieving the Sabae will be the production center of the southeast Asia. Mr. Horikawa, the founder humid than Japan, the Japanese plated received in the US. At my wits’ end, I asked a sleeves to build production bases overseas in sharpness of the blades as well as the light- world’s medical instruments. Prime Minister and chairman of the company, explains this frames did not. Thanks to the Singaporean Korean friend for his advice. He said we should order to ensure that products are delivered to ness of the scissors. First starting from oph- Abe visited us in April 2015, because compa-

JBIC Tod a motive that “it was my insatiable curiosity that agent who also had branches in Indonesia and set up our own sales company, and I thought, the world market. After establishing a subsid- thalmic instruments, the scope of products nies like us are expected to take the lead in JBIC Tod a made me want to try delivering our high-end Malaysia, CHARMANT expanded to four ‘well, indeed.’ We soon started to search for iary in Hong Kong in 1991, they began their has been expanding to instruments for neuro supporting the development of rural areas, to

y S p eyewear to people across the world.” Asian countries in a single swoop. local partners, and by pure chance I found out production in China (Dongguan in Guangdong and vascular surgeries. “Our company’s realize the ‘Local Abenomics.’” y S p

ecial I s The first two countries were Singapore that my friend from university managed a small province and Xiamen in Fujian province). By know-how has been refined to meet the ecial I s and Thailand, where they aimed to secure Ensuring product supply trading company in Denver, Colorado. I talked designating the Chinese factories for products world’s diverse needs and designs for the s s u the sales networks by the one-country-one- to him about my dream and convinced him to targeting the “volume zone” and the headquar- eyewear. This gives us the perspective of u e by establishing production bases e agent system. Then they immediately saw overseas be the president of our first sales company in ters for premium products, CHARMANT has users and flexible ideas beyond the conven- success, which can be explained with two the US, which we set up in New York. We achieved the optimum production level and tions of the medical instrument industry. 18 19 facts. First, frames imported from Europe In 1982, two years after their big success in sent two young employees – one in charge of stable supply system. Our unremitting efforts for originality and Our Global Challenges

Benda Kogyo Co., Ltd. Relationship with JBIC In December 2013, JBIC signed a loan agreement amounting to 50 million Thai baht (JBIC portion) with Benda (Thailand) Co., Ltd. (BTC), a Thai Kure City, Hiroshima Prefecture subsidiary of Benda Kogyo Co., Ltd. The loan was cofinanced with private financial institutions, and intended to finance, in local currency, the creation of an automobile parts (such as metal ring gears) manufacturing plant of BTC located in Rayong Province in the central region of Thailand.

Name Benda Kogyo Co., Ltd. Established 1964 Capital 58.5 million yen President Kazunari Yashiro Business lines Manufacturing of powertrain ring gear, drive plate assembly, fly- Kazunari Yashiro wheel assembly, and various ring Benda Kogyo has the President Benda Kogyo Co., Ltd. products; top share in the world manufacturing of cold and hot- market of engine rolled steel bars and coils starter gears made by Headquarters 1-16-20 Konigata,Kawajiri-cho, the Benda manufac- Kure City, Hiroshima Prefecture turing method (top 737-2604, Japan right photo). The com- Plants Headquarters and pany also manufac- Kurose (domestic) tures flywheel assem- South Korea, China, blies (top center Thailand (overseas) photo) and drive plates (bottom right photo), and hot rolling materials for agricul- tural machinery, con- struction machinery, and vessel engines. Benda (Thailand) Co., Ltd. Factory to Market – Growing Group Business by Expanding Overseas Marketing Channels

Transforming into a global tier 1 technology development company Capturing local sales channels Benda Kogyo Group overcame each of them more weight on drive plates or assembled The history of Benda Kogyo Co., Ltd. began in 1964 from what became its name – bending steel. Creating a by local production and accomplished steady growth. components and to reach the vision for groundbreaking method for bending steel pipes without heat, they developed their unique cold-forming In 2013, marking new global expansion, their future: becoming a global tier 1 tech- technologies and equipment – the “Benda Method”. After acquiring patents in nine countries, Benda Kogyo Benda Kogyo took proactive steps for the company established the group’s next nology development company. In August strategic production plant, Benda (Thailand) entered the automobile parts industry in 1975, bringing a major change in their business. Under “Quality is new businesses as well. One of them, in 2016, the construction of their new plant 2000, was securing QS-9000, a quality stan- Co., Ltd. in Thailand. Mr. Yashiro says that in Kurose was completed, enhancing their Vital” – their etched in stone corporate philosophy they retain their thorough commitment to quality even dard developed jointly by the “Big Three” “contrary to the overseas plants mainly built domestic production capabilities. The plant when expanding overseas. Such commitment, coupled with the high acclaim earned by Benda Method at American automakers. Then in 2003, after for supplying clients in the Japanese market, will give further polish to the advanced home and abroad and the company’s unbending determination to meet customer needs, has led the forming a technical alliance with Magna the Thai plant was built to both manufacture technology and quality which are the discovery of new market opportunities and the continuous development of products by Benda Kogyo. Powertrain Inc. a leading global automotive and sell locally to clients in southeast Asia. sources of Benda Kogyo’s competitiveness. parts supplier in Canada, Benda Kogyo We will pour in even more effort into mar- It will also assist in passing on the tech- established the Benda R&D Center and keting to firmly establish our sales network nologies across Japan, while enhancing the Delivering top-class quality strong opposition from others in Benda lead- well as his strong desire to contribute to the became engaged in product design, attaining in the ASEAN region.” domestic production market share. to the world with determination ership. The purpose behind this expansion world with Benda Kogyo’s technologies, the functions of a tier 1 supplier which Ever since their founder made the firm to succeed abroad was to seek a low-cost but good-quality labor finally brought forth results. “In the mid- develops and designs parts. They began to “One Benda Project” decision to advance into South Korea, Benda force amid a serious lack of the same and an 1990s, we suddenly saw a rapid yen apprecia- manufacture not only ring gears, their flag- towards United Benda Group Kogyo has been rapidly capturing new sales “Benda Kogyo Group has faced a lot of increased cost of labor in Japan. However, it tion, turning the situation around to favor ship product (a component which transmits from new markets and expanding their busi- challenges throughout our history. Yet we was not uncommon at the time for Japanese overseas procurement of automotive parts. the rotation of starter and initiates the As part of the 50th anniversary of the nesses. Reflecting on its history, the current

JBIC Tod a confronted and overcame all of these crises companies to collapse after expanding to We gradually managed to receive orders not engine), but also drive plate assemblies (a founding, in 2014 Benda Kogyo developed President says, “Driven by the excellent JBIC Tod a and obstacles.” As President Mr. Yashiro South Korea. As feared, they continued to see only from Japanese but also Korean and component which transmits the drive force its first medium-term business plan reception overseas, our orientational focus

y S p states, there is a symbolic episode behind losses, and all of the other executives Western car manufacturers. Japanese cars of crankshaft to torque converter). (2015-2017), creating the “One Benda for this business shifted, ‘from factory to the y S p

ecial I s the overseas expansion that led the com- suggested withdrawing from the country, have been known to have the best quality in At the same time, Benda Kogyo also set Project” aimed at unifying the group busi- market,’ and our overseas sales now substan- ecial I s pany to success. fearing that it would jeopardize their business the world. The fact that our auto parts were up production plants in China, first in Qing- nesses to realize a united BENDA Group in tially exceed our domestic sales as a result. It s s u Mr. Kazuyoshi Yashiro, the grandfather of in Japan. But Mr. Kazuyoshi Yashiro had a well recognized as such in the Japanese car dao in 1995, then in Yancheng in 2007. 3 years. One of the plans is to increase goes without saying that BENDA Group u e e the current president and the founder of greater fear that their business will eventually industry gave us a good reputation, and our They faced obstacles and difficulties along their share in the global market by moving would not have grown without pursuing the Benda Kogyo, built the company’s first over- come to an end if they continued solely with products began to be used.” the way, such as the Asian financial crisis on from a business focused on single- overseas market.” 20 21 seas branch in South Korea in 1986, despite domestic production. This sense of crisis, as (1997) and the Lehman’s fall (2008), but the products, such as ring gears, and placing Our Global Challenges Strong trust boosts business because it already had a commitment as a Note 1: Precast concrete product: Concrete products that are accurately concrete form manufacturer that had already mass-produced at a plant, rather than being manufactured at the Toyota Kohki Co., Ltd. “A business cannot grow without trust established a subsidiary for manufacturing building and construction site (cast-in-place concrete). Fuchu City, Tokyo Note 2: with local partners,” said Mr. Toyoda and forms in India. Therefore, he passed Mr. High-fluidity concrete: Concrete that does not require compaction Mr. Irie unanimously. An encounter Shah’s request to Mr. Irie of Fuji Concrete using a vibrator during placement because it is highly fluid. To maintain quality, it requires unique technology to adjust the Fuji Concrete Industry Co., Ltd. between Mr. Toyoda and Mr. Rajkumar Industry and suggested that Mr. Irie should amount of water, etc. depending on the weather conditions. Takeo City, Saga Prefecture Oswal marked the start of the relationship. take on the challenge of expanding into Mr. Toyoda was introduced to Mr. Oswal India. Mr. Irie immediately agreed to the by an Indian associate who was working as idea, considering that his company could Relationship with JBIC an assistant in a booth at an exhibition for contribute to the growth of India by provid- JBIC signed a loan agreement in July 2015 construction machinery in Mumbai in Feb- ing high-quality concrete products and in worth USD 1.65 million (JBIC portion) with Fuji ruary 2013 at the time of registering his particular because the request came from Silvertech Concrete Private Limited, an Indian company. Mr. Oswal was the person Mr. Toyoda. After several negotiations with company jointly owned by Toyota Kohki Co., Ltd. responsible on the Indian side in the nego- the Indian side, the Japanese side agreed to and Fuji Concrete Industry Co., Ltd. The loan is cofinanced with The Tama Shinkin Bank. The plant of Fuji Silvertech Concrete Private Limited tiations with world-famous companies establish a new joint company among the including Honda Motor on expanding in two Japanese companies and one Indian India. He has a great deal of experience of company, finally founding FSC in March working for multinational companies, and is 2015. Mr. Irie became chairman, Mr. Shah a man of faith and integrity. became president, and Mr. Toyoda, Mr. Interested in his personal history and Oswal and the father and son of Mr. Raval, character, Mr. Toyoda asked Mr. Oswal to who are relatives of Mr. Shah and influential help him launch TFI. At the time, Mr. figures in the local community, became Oswal was 69 years old, having retired directors. The arrangement truly symbolizes before becoming even 50. He liked Mr. the trust between Japan and India. Toyoda’s idea, became the advisor of TFI, and subsequently became a director. The First shipment of concrete products Aiming to be the largest precast strong tie between the two men led to a new company in India business opportunity. TFI gradually started to receive requests FSC’s plant was completed on January Contributing to India’s nation-building from local Indian precast manufacturers to 25, 2016, just seven months after construc- Minoru Toyoda visit Japanese manufacturers of concrete tion started. This was exceptionally quick, President Toyota Kohki Co., Ltd.

products. In particular, Mr. Brijesh Shah, as it usually takes much time and effort in Name Toyota Kohki Co., Ltd. who is a young top executive of a 60-year- India to acquire land and construct a plant Established 1966 old company that manufactures concrete due to the complicated legal system. It Capital 53.5 million yen with high-quality concrete products Business lines Manufacturing forms for manufac- products, wished to learn sophisticated tech- would never have been possible without the turing concrete products nologies abroad and introduce them to India support from the construction company Manufacturing and construction of equipment for continuous manufac- to help develop India’s precast industry and managed by Mr. Shah and from Mr. Raval turing of concrete products Courageous challenge by cross-border relationship based on trust improve the country’s infrastructure. He who is a developer. In addition, financing Headquarters 6-12-8 Yotsuya, Fuchu City, Tokyo strongly expressed his wish to visit Japan by JBIC was used for the plant construc- 183-0035, Japan In India, which is enjoying rapid economic growth, the demand for concrete construct to improve its through Mr. Oswal, with whom he became tion. Mr. Irie highly praised JBIC, “We infrastructure including roads, ports and bridges is rising. Amid this dynamic situation, two Japanese small acquainted following an introduction from a have never done business with JBIC before, and medium-sized enterprises (SMEs) with technology for manufacturing high-precision, high-quality consultant. His ambition finally led to a visit and were amazed by its speed. Thanks to concrete products jointly branched out to India, and started production and sales locally. Since orders for to Japan by a group of top executives of their expertise in overseas financing, we concrete products are usually placed with local companies, no other Japanese manufacturers of concrete Indian companies, including himself. During could receive funds in just two months.” products had entered India. However, an encounter with young Indian entrepreneurs who put their hearts the tour, Mr. Toyoda showed the group Overseas expansion is a major step that into building the nation made the two CEOs decide to take on a courageous challenge. around the plants of Fuji Concrete Industry determines the direction for SMEs. Mr. and his own company. Amazed by the Toyoda emphasized, “We had some con- sophisticated manufacturing technology cerns, but they were outweighed by the SMEs working together to Kohki. According to Mr. Toyoda of Toyota The two companies had been exploring using high-fluidity concrete Note 2 as well as possibilities in India. Japanese manufactur- develop business in India Kohki, the CEOs of the two companies the possibility of expanding overseas amid excellent product quality and high produc- ing technology is the best in the world. have a long relationship of strong trust, also the decreasing demand for concrete products tivity, Mr. Shah immediately asked Mr. Even SMEs can do a lot of things in foreign JBIC Tod a Toyota Kohki, which manufactures and as shown by Mr. Irie of Fuji Concrete in Japan. About two years before setting up Toyoda to help him launch a new precast markets. We just need the courage to take a Shunsuke Irie JBIC Tod a sells concrete forms for making concrete Industry who said, “I work closely with Mr. FSC, Toyota Kohki established a wholly- company jointly with Japanese companies step forward, as well as ties with local President Fuji Concrete Industry Co., Ltd

y S p products, and Fuji Concrete Industry, Toyoda, and ask him for advice even on owned subsidiary, Toyota Forms India including Toyota Kohki. He also asked Mr. people.” The new plant commenced opera- y S p Name Fuji Concrete Industry Co., Ltd.

ecial I s which manufactures and sells concrete subjects other than business.” The two com- Private Limited (TFI), to manufacture con- Oswal for support. tion in March 2016 and business is now ecial I s Founded 1970 products, are working together to develop panies jointly set up an Indian company, crete forms in India. The relationship Mr. Moved by the aspirations and sincere going smoothly. FSC aims to become the Capital 40 million yen s s u their business in India which has a popula- Fuji Silvertech Concrete Private Limited Toyoda built up with an Indian businessman personality of Mr. Shah, Mr. Toyoda agreed largest manufacturing and sales company of Business lines Manufacturing, sales, and design of u e e tion of 1.3 billion. Fuji Concrete Industry (FSC), to manufacture precast concrete in the process of establishing TFI gave him with the idea of establishing a new company precast products in India. The new company secondary concrete products Headquarters 7552-2 Nagano, Higashikawanobo- manufactures and sells precast concrete products in Ahmadabad in the state of Guja- the confidence to take on the challenge of to realize his wishes. However, he consid- is a challenging pioneer. 22 ri-cho, Takeo City, Saga Prefecture 23 products Note 1 using forms made by Toyota rat together with an Indian company. launching a joint venture project. ered that his company could not help him, 843-0233, Japan Our Global Challenges

Relationship with JBIC Osaka Sealing Printing Co., Ltd. In September 2016, JBIC signed a loan agree- ment amounting to 63 million Thai baht (JBIC portion) with OSP LABEL (THAILAND) CO., LTD., Osaka City, Osaka Prefecture a Thai subsidiary of OSP’s holding company, OSP HOLDINGS CO, LTD. The loan was cofinanced Matsuguchi says that he sees the aging as well might take us a while for our Thai business with Resona Bank, Limited, and intended to as the declining population in a different, to move into the black.” provide the necessary funds for sticker and label more positive light. “While the population is production and distribution by OSP LABEL (THAILAND) CO., LTD. and will be used to install shrinking, the number of households is Moving forward to the new factory equipment. growing due to an increase of single-person 100th anniversary households and trend toward the nuclear Towards the fourth Name Osaka Sealing Printing Co., Ltd. family. More specifically, the increasing industrial revolution Established 1927 Incorporated 1954 number of the elderly, the young who live Capital 324,439,200 yen alone, and working couples leads to more For the past 90 years since its establish- President Tadashi Matsuguchi people having meals alone. One product that ment, OSP has been continuously proposing Business lines Production and distribution of stickers, labels, processed films, used to contain 400 grams is now sold at 100 new products that are part of people’s daily and packages grams per pack, and this has increased the lives, and is now expanding its arena abroad. Manufacturing and distribution demand for the adhesive labels.” “Our current consolidated net sales of label printer and automated labeling machines Note amount to 95.127 billion Japanese yen . Headquarters 1-8 Obasecho, Tennoji-ku, Osaka The net sales from overseas business is still City, Osaka Prefecture 543-0028, Expanding overseas Japan production base with an eye to small, but we are aiming to achieve 100 Sales branches 32 in Japan develop new prospective markets billion yen from domestic and 20 billion yen Production and R&D bases 13 in Japan: Tochigi (3), Gifu (2), from overseas business in the medium to long Shiga (2), Osaka (3), Kyushu (3) Group companies: “The Daily Pursuit of the newie and OSP’s challenge continues with a keen term. In order to achieve this number, we US (New York), three in China eye on the future. In 2006, it established will utilize our branch in Thailand to form (Shanghai, Suzhou, Qingdao), two in Thailand (Bangkok, OSAKA SEALING PRINTING (SUZHOU) partnerships with local printing companies in Nakhon Pathom) CO., LTD. (China). “The business did not various Asian countries, such as Malaysia and the grandeur” towards the next century expand as much as we expected in the begin- Vietnam, and solidify our foundation in the ning, but it picked up when the inbound to Asian market.” Japan boomed. Chinese people who visited OSP will have its 100th anniversary in Stepping Up to the World Arena with our label products Japan started to seek Japanese quality, and 10 years. Towards this milestone, and to together with our heightened automation achieve “OSP’s Industry 4.0 (the fourth industrial revolution)”, the company has Reaching to the 90th anniversary in this year, Osaka Sealing Printing Co., Ltd. (hereafter “OSP”) is a mid-tier ratio of the production line, this helped us formed a network for domestic sales enterprise which is at the forefront of small-lot production and distribution of a wide variety of adhesive get on track.” With the rising labor cost and stricter branches and factories through IoT. By labels. The company boosted sales after obtaining a patent in 1961 for inventing stickers which were peeled regulations for overseas remittance imposed developing the optimum production off from the mount. Afterwards OSP has become the leading company in the adhesive label industry with in China, the company set up OSP LABEL efficiency, it aims to create a “Smart Fac- establishing an integrated production system which includes a material paper production, package planning, (THAILAND) CO., LTD. in 2016 as an adhe- tory,” built on the philosophy of “mass design, and printing. For overseas business, OSP paved their way by establishing a material procurement sive label production base in Thailand. This customization” which would flexibly respond base in New York State (U.S.) in 1995, and has ever since then steadily developed, setting up a sales office in aimed to mitigate the risk of overconcentra- to diverse but small-lot needs. “Although we Shanghai (China) in 2003 and a production base in Suzhou (China) in 2006. Then in 2014, the company opened tion of their overseas bases in a single country, have many products with a domestic market OSP (THAILAND) CO., LTD. as a sales office in Thailand, where a production base, OSP LABEL (THAILAND) and to target the promising ASEAN market share of 70% or more, technological innova- CO., LTD., was set up two years later. With its unique ideas, OSP continues to turn consumer needs, with 600 million people as a new overseas tion is progressing minute by minute, and ever-changing with time and lifestyle, into business opportunities and is now stepping up into the global branch. In fact, many Thai households do not our strengths might sooner or later become market for the next challenge. yet have a kitchen and so the demand for depleted. If, for example, there is an inven- perishable ingredients at supermarkets is tion of a technology that allows direct print- relatively low. Thus they are planning to ing on products and packages, adhesive Winning trust from the market “private shops used to wrap fish, meat, or cal reform of the production process, OSP start from producing and selling labels for labels will no longer be needed. We will with the innovative production vegetables in used papers and hand their prod- developed a system to meet small-lot orders industrial use, and then gradually launch the infinitely challenge to create businesses that JBIC Tod a process and technology ucts to their customers, but at the hypermar- and its own printer and automatic labeling production of labels for general consumers meet the next generation’s demand, both in JBIC Tod a kets where customers freely walk around, machine, providing the service at a cost that as the middle class grows. OSP utilized loans and outside of Japan.” The insatiable curiosity and challenging

y S p OSP began broadening its playing field in products need to be packed and labeled with would not be possible for its rivals. This from JBIC for setting up OSP LABEL y S p spirit of Mr. Matsuguchi continue to create

ecial I s the 1970s. This coincided with the emergence their names and prices. This helped the mindset was the key to accelerating the (THAILAND) CO., LTD. “The loan was ecial of hypermarkets, which drastically changed demand for adhesive labels to grow rapidly.” growth. “In recent years, it has become an introduced to us by a financial institution new ideas and big innovations, proposing I s s s u the retail business, where, until then, food The demand for the labels was boosted obligation for retailers to indicate not only with whom we already had business. We are original “methods to print information” with a u e e and daily products had been sold directly to even further by the introduction of the POS the ingredients of processed food but also extremely grateful that JBIC provided us keen eye on our needs one step ahead of time. customers by privately-owned shops. Presi- (Point-of-sale) cash register system and where they are made and allergens. This has with competitive, long-term, and stable Note: Tadashi Matsuguchi 24 As of January 2017 (consolidated) 25 dent Mr. Matsuguchi looks back at the time: barcodes for managing sales data. With a radi- been a driving force for our growth.” Mr. funds denominated in Thai baht, although it President Osaka Sealing Printing Co., Ltd. Our Global Challenges one by one by himself. As a result, he earned continue to grow”. Note 1: Sixth Industrialization of Agriculture Integration from the upstream to downstream of the agriculture the support of farmers and doubled sales in In addition, air pollution in the city of industry, by combining its primary sector (agricultural production), secondary sector (processing) and tertiary sector (distribution and the second year. In the third year, he obtained Ulaanbaatar in Mongolia is worsening and sales). The term “Sixth Industrialization of Agriculture” is an Farmdo Corp. a license of an agricultural production corpo- the city is implementing various measures invented term, in which “Sixth” is derived by summing the numbers, 1 for primary industry, 2 for secondary industry, and 3 ration and founded another company called to cut air pollution, including the use of for tertiary industry. Maebashi City, Gunma Prefecture Farm Club as a private limited company. This renewable energy sources. As this project is Note 2: Joint crediting mechanism (JCM) An initiative of Japanese government aimed at quantitatively enabled him to start a business to produce and expected to spread innovative low carbon evaluating Japan's contribution to curbing greenhouse gas emissions by providing Japanese emission reduction technolo- sell vegetable seedlings. The turning point technologies in Mongolia, it is accepted as gies, products, systems, services and infrastructure to developing countries and taking account of the above quantified contribution came about 10 years after foundation. Farmdo one of the projects that is supported under as a part of achievement towards Japan's own target for emission was in a slump due to competition and the the joint crediting mechanism (JCM) Note 2 reduction. declining number of farmers. Mr. Iwai said, program led by Ministry of the Environment, Note 3: Dual system A practical vocational training system that combines on-the- “To overcome the slump, I decided to sell Government of Japan. In Mongolia where job (OJT) training programs, and educational and vocational training courses. fresh vegetables that had sustained steady a vast agricultural land is available, Farmdo sales. To satisfy the needs of customers who can fully utilize its knowhow in the solar wish to eat fresh vegetables, I built “Shoku no farm business which produces stable income Eki” shops as a sales network of agricultural by selling electricity generated through products that connects farmers and consum- solar panels installed on farming land while ers. This market-in idea became popular with growing crops there in more efficient way consumers and also welcomed by farmers by adjusting sunlight. “Needless to say it was Solar panels in operation (Mongolia) Vegetables sold at stands along a trunk road (Mongolia) because it allows them to secure sales chan- important to earn the trust in our solar farm nels. This idea was a hit, and sales increased technology from Mongolia, but it was also by 2.2 times year-on-year”. important to make our own efforts to build Solar Farm Business : relationships of trust with local people. As Launching the solar power a result of these efforts, we developed deep Masayuki Iwai generation business and relationships with the local administrative President Farmdo Corporation developing foreign markets chief and receive encouraging support from Shaping the Future of World Agriculture him”, said Mr. Iwai, with a smile. Relationship with JBIC Thereafter, sales continued to increase steadily, which formed a foundation towards Focusing on educating In March 2017, JBIC signed a loan agreement with Everyday Farm LLC (EDF), the Mongolian the Sixth Industrialization of Agriculture. Farmdo’s efforts for farming business and solar power generation in Mongolia young people to build the future of subsidiary of Farmdo, under a cofinancing However, the reputation of vegetables Japan’s agriculture arrangement with Towa Bank, Ltd. for the produced in Gunma was hit by the Great amount up to USD 12.1 million equivalent, of With its corporate philosophy “Support agriculture; Make efforts towards an increase in farmers’ incomes”, East Japan Earthquake in 2011, which signifi- Now, Farmdo plans to expand the solar which JBIC will provide up to USD 8.5 million. Farmdo Corp. (hereafter “Farmdo”), an SME company that assists Japan’s farmers and supports the cantly dragged down sales of vegetables. farm business more broadly in Asian emerg- This financing is to provide capital necessary for country’s agriculture sector, promotes the so-called Sixth Industrialization of Agriculture Note 1 that aims to the solar power generation project conducted by Furthermore, the gasoline shortages after the ing countries. At the same time, the com- integrate the activities of sectors in the agricultural industry value chain from production to processing and EDF in Ulaanbaatar, Mongolia. EDF will sell elec- earthquake significantly hurt the household pany is making efforts to create the future of tricity to Mongolian National Transmission and sales. Having started the solar power business especially in Gunma Prefecture, the company also invests in incomes of farmers. While finding a way to Japan’s farming industry, particularly Distribution Company for the next two decades. the “solar farm business” to generate solar power on a farming land while growing crops, which is a new enable farmers to secure a source of income, together with the next generation of young form of agriculture. The company has installed solar panels at about 100 places in Japan, which generate a Mr. Iwai conceived the idea of gaining an people. Mr. Iwai said, “we are planning to Name Farmdo Corporation total power capacity of 56,000 kW, including the power capacity generated through solar panels installed on Established 1994 income by selling electricity generated introduce and practice the Japanese version Capital 98 million yen (as of March 2016) farm lands where crops are not grown. Farmdo started its business in Mongolia in 2012 and Myanmar in through solar panels installed on the roofs of the dual system Note 3 in agriculture in part- President Masayuki Iwai 2013. In the fall of 2017, the company will launch a solar farm business in Mongolia using the accumulated Business lines Sales of agricultural materials, agricul- of plastic greenhouses. Based on this idea, nership with local universities beginning in tural products, processed specialty know-how on the business in Japan, with an aim to: i) assist Mongolia in achieving its target for renewable he acquired fallow land and started a solar fiscal 2018. This system is intended to products and electricity generated by energy capacity and ii) provide fresh and safe agricultural products which are expected to see increased farm business in 2013 to generate solar develop human resources who will contrib- photovoltaic generation Headquarters 3rd floor, NF2 Bldg., 1-1-1 Tonyamachi, demand in the country. power on an agricultural land while growing ute to the world in the agriculture industry, Maebashi City, Gunma Prefecture crops in a plastic greenhouse. Supported by providing courses of lectures and training 371-0855, Japan Shops Six “Noen’s” shops in Gunma Prefec- a government’s program to purchase renew- for both the Sixth Industrialization of Agri- ture, 12 “Shoku no Eki” shops mainly in Understanding the needs of farmers purchased agricultural machinery and Corp., the former company of Farmdo, in able energy at a fixed price that started in culture and agricultural production. We the northern Kanto region, and 14 materials, such as fertilizers, from Japan Agri- 1994. Unfortunately, the launch of his com- the previous year, the solar farm business ex- hope that agriculture will be a growing “Local production Marché” shops farmers through sales by truck mainly in Tokyo, and a farm restaurant cultural Cooperatives ( “JA” ) and also sold all pany was delayed by 10 months because the panded further to install solar panels at about industry in 10 years. To realize our hopes, “Saino Saien” in Saitama Prefecture Mr. Masayuki Iwai, President of Farmdo, agricultural products to JA. Under such distri- site where he planned to do business became 70 places across Japan. This paved the way we believe that our mission is to develop Overseas bases:

JBIC Tod a Everyday Farm LLC (Mongolia) JBIC Tod a recalled, “Since my early 30s, when I was bution system, farmers have limited access to subject to land use restrictions. Facing the to further expand the solar farm business young people who will support the future Five Stars Food Industry Co. Ltd. working for a leading distribution company, I the source of information about consumers’ serious situation without any income, he into Mongolia. farming industry and overseas agricultural (Myanmar)

y S p had planned to run my own business in the needs, so I thought I could create a new busi- decided to drive a sales truck loaded with Mr. Iwai explained, “Farmdo established businesses, and to proactively create new y S p

ecial I s future. When I opened a store to sell agricul- ness by establishing new distribution channels agricultural materials. “This decision turned a joint-venture company, Everyday Farm ways of farming”. In April 2017, Farmdo ecial I s tural materials, I had the idea of building a (direct sales system) without using the normal out to be very successful. I could understand LLC (EDF), with a local Mongolian com- recruited 17 young members of staff, the s s u “department store for farmers” that sells circulation markets, which would directly the needs of farmers by directly talking with pany in 2012. I focused on Mongolia because largest number since the company was u e e seeds, fertilizers and agricultural machinery. bring in more incomes and information about them,” Mr. Iwai recounted. He traveled local eating habits are diversified especially established. The company continues to This idea led me to the current business.” consumers’ needs to farmers”. Based on this across the country, purchasing as many as in urban areas, and the demand for fresh and move forward to further increase the poten- 26 27 Mr. Iwai continued to say, “Back then, strong belief, Mr. Iwai established Farmland 20,000 agricultural products and pricing them safe vegetables is growing and is expected to tial of Japan’s farming industry.