foundations for regional companies by building solid relationships with the mid-tier enterprises and SMEs and supporting
their businesses. Since the inception of a new JBIC in 2012, we have focused on and actively supported overseas businessexpansion of mid-tier enterprises and SMEs through diverse partnerships with regional financial institutions who are wellinformed of regional businesses.
Financial support by
combining expertise unique toeach institution

Providing information through
JBIC’s overseas network

URL: http://www.jbic.go.jp/en/

JBIC’s support continues even after financing. For
example, if political risks such as policy changes in
the local government or political instability occur,or when trouble occurs in dealing with the authorities over local regulations, JBIC will help resolve
issues by holding dialogues with the local government. When there is a necessity for expertise inlaw, taxes, and accounting in relation to the financed projects, mid-tier enterprises and SMEs
can receive advice from accounting and law firms
affiliated with JBIC for second opinions.
Furthermore, in order to follow the businessconditions, production and sales of overseas subsidiaries after financing, members of the Finance
Office for SMEs of JBIC regularly visit the site andshare with regional financial institutions their opinions and information heard at the local subsidiaries. In addition, we also hold seminars and consultation meetings for customers of regional financial
institutions, study sessions for their employees,
and provide guidebooks on the investment climateof each country.
Recently, Mexico has become increasingly
popular as a destination for overseas expansion of
mid-tier enterprises and SMEs, and therefore regional financial institutions have also shown a keeninterest in the local situations of Mexico. Responding to this trend, JBIC signed memorandums ofunderstanding (MOUs) between 2015 and 2016
with four Mexican state governments and local financial institutions with the aim of supporting midtier enterprises and SMEs expand into Mexico.
Many regional financial institutions joined the support framework based on these MOUs.
In addition to explaining JBIC’s support by having our members visit regional financial institutions
who request consultation for individual projects,
we also visit mid-tier enterprises and SMEs to ask
the corporate managers their thoughts on expanding abroad. As overseas expansion is a major event
affecting the future of the company, we feel it isextremely important to share the vision of corporate managers and stories of successful growth asa financial institution that supports mid-tier enterprises and SMEs together with regional financial
institutions. We will continue to enhance our cooperation with regional financial institutions and use
our unique strengths in order to help regional midtier enterprises and SMEs go forward with overseas expansion and feel reassured in the process.

Tel. +81-3-5218-3100

Regional financial institutions play a major role for
mid-tier enterprises and SMEs, but they cannot
always respond to all the diverse needs that arise
with their overseas expansion because they aremostly based in their region and do not necessarily
have a sufficient organizational structure or systemfor operating overseas. JBIC, on the other hand,
despite a relatively small number of transactions
with mid-tier enterprises and SMEs, is familiar withinternational financial transactions and circumstances of developing countries. By combining
partnerships with the regional financial institutions
and JBIC’s own financial schemes and various services, we can support the overseas expansion of
mid-tier enterprises and SMEs, while providing theregional financial institutions with experience andknow-how of overseas operations.
A typical example of JBIC’s support based onsuch partnerships is the long-term financing inforeign currencies provided to mid-tier enterprises and SMEs establishing overseas bases. The
loans are sometimes made through their parent
companies in Japan (e.g., loan from parent company), but there are growing expectations foroverseas subsidiaries to be financially independent, as well as needs for loans in local currencies to be provided directly to the local subsidiary
to diversify methods of financing according to its
business stage. The advantage of financing in local currencies is that it can mitigate currency
risks through repayments in the local currencies

given that the incomes from overseas production
and sales are often in local currencies.
In recent years, JBIC has become in a better
position to procure major local currencies. As aresult, there has been an increasing number ofcases where JBIC provides loans in the local currency to overseas subsidiaries, while regional financial institutions that do not have overseas
branches provide loans to the parent company (inJapanese yen or US dollars) – in other words, aform of support by making use of each one’s expertise. Recently, JBIC has had some repetitive
clients among mid-tier enterprises and SMEs thatexperienced support through this cooperation between regional financial institutions and JBIC.

Press and External Aﬀairs Division, Corporate Planning Department, Corporate Group, Japan Bank for International Cooperation

provides loans, investment, and services through regional banks and credit unions. Regional financial institutions lay the

4-1, Ohtemachi, 1-chome Chiyoda-ku, Tokyo 100-8144, Japan

Among various forms of support that JBIC provides to overseas business expansion of mid-tier enterprises and SMEs, JBIC

March 2017

Kazuko Sakuma
Director for Division 1 and 2
Finance Office for SMEs

JBIC Today

Supporting Overseas Expansion of
Mid-tier Enterprises and SMEs
with Expertise Unique to JBIC

JBICMarch 2017

Today

Japan Bank for International Cooperation

Special Feature

Japanese Mid-tierEnterprises and SMEs
~Entering New Stage of Global Business~

Our Global Challenges

CHARMANT INC. (Sabae City, Fukui Prefecture)

Vision that Took Local Company
Into and Beyond Global Eyewear Industry
Benda Kogyo Co., Ltd. (Kure City, Hiroshima Prefecture)

Factory to Market – Growing Group Business by
Expanding Overseas Marketing Channels

SPOT LIGHT

Supporting Overseas
Expansion of Mid-tierEnterprises and SMEs
with Expertise Unique to JBIC

Special Feature

Japanese Mid-tierEnterprises and SMEs
~Entering New Stage of Global Business~
Just a few years ago, the overseas investment for many of Japan’s mid-tier enterprises and small and mediumsized enterprises (SMEs) meant following after major manufacturers that advanced into the world market.
Recently, the reason, the type of business, the size, and the country of destination of such enterprises have beenchanging. Not only are the profit, knowledge and abilities obtained through overseas investment used fordeveloping new sales channels, but also for management reform and corporate capacity enhancement. They haveeven started to contribute to local revitalization through deploying what theyacquired overseas. Japan’s mid-tier enterprises and SMEs are transforming,
incorporating the achievements of overseas businesses, and their overseas
business is entering a new stage.

Interview with expert in SME ﬁnance,
Executive Oﬃcer for West Japan

Current Business Climate and
New Trends of Overseas
Investment by Japanese SMEs

Yoshimasa Ohashi
Industry Finance Group
Executive Officer for West Japan

cates that Japanese companies have been establishing plants and actively manufacturing
and selling abroad, seeking opportunities inemerging countries which continue to grow,unlike Japan, which offers little hope ofmarket growth due to recession, decreasing
population, and stagnant labor productivity among other factors.

Mid-tier enterprises and SMEs
further enhancing capabilities
through overseas business
Many of Japanese mid-tier enterprises and
SMEs have enlarged their businesses afteradvancing into the overseas market by capturing new markets and sales channels. A
majority of their overseas investment began
by tagging along end product manufacturers, as well as tier 1 and 2 companies, until
recently. As they built up a wide array of experiences on-site, some have attained skills
and abilities that they did not own before.

According to the 2016 White Paper on
Small and Medium Enterprises in Japan, as
effects of direct investment in production
bases, companies which developed new markets and customers, and the ones which enhanced their planning abilities were 34.9%
and 18.7%, respectively (see Figure 1). Additionally, as effects of direct investment in sales
and service bases, the companies which suggested two above-mentioned outcomes were
55.5% and 25.8%, respectively (see Figure 2).
We can see that they build relationships with
non-Keiretsu and foreign companies, as wellas companies from different trade, and capture new overseas business opportunities, orenhance their operational, sales, and planning abilities by collecting information of
the foreign markets.
Furthermore, it is indicated that companies which have conducted direct investments
have higher labor productivity than thosewhich have not (Figure 3 on next page). Also
when we look at the changes in the number ofdomestic workers, we can see that amongst
the companies which have conducted direct
investments , there are more companies which
increased the number of employees thanthose which decreased it (see Figure 4 on
next page).
Through overseas businesses, it has
been proven that mid-tier enterprises and
SMEs have begun to see the positive resultsin their businesses, such as expanded sales
channels, while increasing their abilities asa by-product.

Diversification of overseas
investment by industry,scale, and destination
As Japanese companies increase their active
efforts in overseas businesses, mid-tier enterprises and SMEs are also becoming more familiar with the foreign business. Looking at
the “Change in the number of enterprises
conducting direct investment by enterpriseSome Japanese companies have attained new capabilities through various experiences in the overseas market

Japan underpinned
by global inflation
Japan’s trade balance, which had continued
to be in surplus since the beginning of the
1980s, has been in the red ever since it suddenly fell into a deficit in 2011. On the other
hand, the balance of income which consistsof foreign dividends and interest has surpassed the trade balance, resulting in a surplus in the current balance. Sources of suchincome are foreign direct investments andsecurity investments. The balance of foreign

direct investment in particular has grownsteadily since 2000, and amongst all, direct
investment for China and the ASEAN region has reached a considerable level. Moreover, since 2005, Japanese companies have
had ordinary profit rates exceeding the sales
operating profit rates. This explains the phenomenon in which dividends and interest
that Japanese companies earned overseas
have begun to flow back to Japan.
Looking at the transition of the GDP
growth rate, we can see that the growth has
become “slow” in developed countries and“rapid” in emerging countries since 2000.
According to the IMF World Economic
Outlook, this trend is expected to continue(forecast for 2021 GDP rate of increase(against 2015) are 1.36-fold for Japan and1.27-fold for the US, while 1.56-fold for
ASEAN region, 1.64-fold for China, and1.75-fold for India). Meanwhile, the domestic economy of Japan has remained lethargic with not only the declining population
but also stagnant workforce productivity
since the 1990s.
This string of such phenomena indi-■ Figure 1
Effects of direct
investment(in production bases)

60 (%)
50.2
50
40
30
20
10
0

34.9

28.5
18.3

Development Increase
Sales
expansion of new markets in brandand customers recognition
overseas■ Figure 2
Effects of direct
investment(sales and service bases)

60 (%) 56.5
50
40
30
20
10
0

20.0

18.7

14.0

Collection of Strengthened Increase incustomer
information sales, andon overseas planning abilities satisfaction
markets

30.6

25.5
12.3

13.6

17.9

13.2

11.5

Increase
Improved
Increase in Development Development Promotion of Cost reduction Expected
employee in profit rate
effects
cooperationlevel of of new products of new
motivation and productivity technology and services markets andhave notamong
and ability
been obtained
new customers enterprises
and quality
domestically

55.5
30.6
20.6

Development Increase
Sales
expansion of new markets in brandand customers recognition
overseas

25.8

23.9
12.9

Collection of Strengthened Increase incustomer
information sales, andon overseas planning abilities satisfaction
markets

10.0

7.7

9.6

13.4

11.0

8.1

13.9

Increase
Improved
Increase in Development Development Promotion of Cost reduction Expected
employee in profit rate
effects
cooperationlevel of of new products of new
motivation and productivity technology and services markets andhave notamong
and ability
been obtained
new customers enterprises
and quality
domestically

Source: Teikoku Databank, Ltd, Questionnaire on Small and Medium Enterprises Growth and Investment Activities (December 2015), commissioned by the SME Agency.
N o t e s : 1.Categories respectively aggregate results for companies investing in export, conducting direct investment in production or sales/service bases, or investing in responses to inbound tourism.
2.Total does not always equal 100% as multiple responses were possible.

2

3

Special Featuresize and industry category” (Figure 5, p5),
the number of firms in non-manufacturingindustries, such as wholesale and retail, is increasing. As mentioned above, the income
level is rising in emerging countries, and the
middle and wealthy classes are growing.
Taking advantage of such trend, not only
manufacturers but also small and mediumsized wholesalers and retailers are actively
promoting their businesses overseas aiming
to develop peripheral industries and local
consumption market.
Each year, we see a rising trend of SMEs

owning overseas subsidiaries, similarly tomajor companies, and it is particularly noticeable among small and medium-sized manufacturers. Overseas investment had a highhurdle for SMEs which had limited management resources back then, but the hurdle has
been lowered enough to jump into the overseas business with a proper motivation.
Destinations are diversifying as well. In
the 2000s, there was a strong inclination to
shift to China, but in the 2010s, the trend ofdiversifying to other emerging countries has
become stronger. We can also see from“FY2016 Survey Report on Overseas Business Operations by Japanese Manufacturing
Companies,” an annual survey conducted by
JBIC, that SMEs are shifting away from therigid focus on China and spreading across theASEAN region. Along with the fact that political and economic situations are becoming
stable in the ASEAN region, this indicatesthat the ASEAN countries have been successful in attracting investments, and Japanese
mid-tier enterprises and SMEs are in turn selecting the countries suitable for their own
overseas business strategies.

Bringing management reform to parent company
through globalization
Overseas businesses provide chances forJapanese mid-tier enterprises and SMEs tobring about management reforms.
We often have the chance to hear fromthe presidents of our clients the self-evaluation of their overseas businesses, and someof them say: “we were able to develop overseas human resources (both Japanese andlocal staff).” More specifically, “our generalmanager and manager became more resilient after being in charge of the management of the new plants,” and “locally-hired
management staff took the leading role
when setting up plants in other countries.”

Developing global human resources is oneof the key management tasks for Japanesecompanies in present days. It is more urgently so for the mid-tier enterprises and
SMEs which do not necessarily have a sufficient workforce, tangible assets, and financial resources. But when we hear that thosecompanies have had positive effect on theirstaff, these stories give us motivation, because this may become one of the typicalmeasures to mend the issues of developing
global-minded workforce.
This is indeed the globalization. Returning the earnings profited abroad isjust one aspect. Rather various initiatives
undertaken overseas may eventually resolve management challenges of theirparent companies in Japan, or lead to
management reforms. In the above case,the parent company would have to appropriately utilize the human resources,
including promotion to the management
team. The global management has also
become important, even among mid-tierenterprises and SMEs. Through global
business, mid-tier enterprises and SMEs
will not only resolve their issues, but possibly build new strengths.

Companies making direct investments show
higher labor productivity

Uncommon to reduce the number of employees
in Japan after overseas investment■ Figure 3 Labor productivity for direct-investing andnon-direct-investing companies■ Figure 4 Changes in number of domestic workers with investment
in overseas expansion (by type of investment)
Increased

Companies that maintained consistent direct investments from fiscal 2001 to fiscal 2013
(Direct-investing companies)
Companies that did not conduct any direct investments between fiscal 2001 and fiscal 2013
(Non-direct-investing companies)(Labor productivity; FY2001 = 100)
130
125
120
115
110
105
100
95

No change

Decreased

Export19.0

79.9

Direct investment(Production bases)

18.9

Direct investment(Sales/service bases)

21.2

76.4

2.5

Responses toinbound tourism

19.4

76.4

4.2

69.7

1.2

11.4

90
01

02

03

04

05

06

07

08

09

10

11

12

13
(FY)

Source: Recompiled from METI, Basic Survey of Japanese Business Structure and Activities.
N.B.: 1. Aggregates results for SMEs only.
2. Labor productivity calculated as value added domestically divided by number of domestic employees.
3. Aggregates results for companies responding to the survey every ﬁscal year from ﬁscal 2001 to ﬁscal 2013.

4

0

100
(%)

Source: Teikoku Databank, Ltd., Questionnaire on Small and Medium Enterprises Growth and Investment
Activities (December 2015), commissioned by the SME Agency.
Note: Categories respectively aggregate results for companies investing in export, conducting direct
investment in production or sales/service bases, or investing in responses to inbound tourism.

Japanese Mid-tier Enterprises and SMEs ˜Entering New Stage of Global Business˜Using overseas investment as opportunities for firmlevel upgrading or regional revitalization
Each of the mid-tier enterprises and SMEs
has its own strengths. These strengths don’t always have to be the most cutting-edge technologies or technologically competitive in therelevant industry. The experience and knowhow that are taken for granted in Japan could betaken as unparalleled assets abroad. These include the ability of process management fordelivering products without any delay, and theability to create products from prototyping todelivering products. Utilizing such assets – experience, know-how, and technologies – in theoverseas market can provide those companies
with the chance to further enhance theirstrengths. In other words, the overseas investment provides mid-tier enterprises and SMEs
with the opportunity for improvement.
There are cases where companies re-import the outcomes achieved in overseas businesses to their parent company in Japan. For
example, the Japanese market has a custom of
doing business within their business grouping(Keiretsu), making inter-group business difficult. Nevertheless, there are not a few companies that started business with a different groupin Japan after developing on inter-group business starting in the overseas market. The key is
to upgrade the whole group of companies, andto deliver back the achievements to their local
community. When such flow is achieved, it willlead them to stimulate regional revitalization,by bringing benefit to local traders and craftsmen, by promoting application of the company’s core technologies to other business areas,
and by developing new sales channels andother innovations.
Our role as JBIC is to focus on and support mid-tier enterprises and SMEs that undertake effective overseas investment. At thesame time, JBIC takes into account of spillover effects of their globalization on their domestic business in Japan and regional economies.

More non-manufacturers are making direct investments■ Figure 5 Changes in the number of enterprises conducting direct investment (by enterprise size and industry category)
Small and medium-size
wholesale enterprises

Manufacturers(Company)

Small and medium-size
retail enterprises

Other SMEs

Large enterprises

8000
2,416

6000
4000
2000
0

1,931
986
125 (Number of
1,019 SMEs)
2,013 4,143

01

Percentage represented
by SMEs: 68.2%

1,343
142 (Number of
1,366 SMEs)

1,316
147 (Number of
1,298 SMEs)

5,795

2,869 5,630

Percentage represented
by SMEs: 70.6%

Percentage represented
by SMEs: 70.6%

2,944

06

2,418

2,347

09

Sources: Recompiled from MIC, Establishment and Enterprise Census, 2009 and 2014

1,590
129 (Number of
1,406 SMEs)
3,221

14

6,346

Percentage represented
by SMEs: 72.4%(Y)

Economic Census for Business Frame.
Notes: 1 Enterprises conducting direct investments here refers to enterprises that have an
overseas subsidiary (A company of which the parent company holds more than
50% of voting rights; this includes cases in which either the subsidiary or thesubsidiary and the parent company combined hold more than 50% of voting rights,
and subsidiaries that appear on the parent company s consolidated ﬁnancial
statements, even if the parent company holds less than 50% of voting rights), but
not including small oﬃces/home oﬃces.
2 Large enterprises here refers to any enterprise other than an SME as deﬁned by
the Small and Medium-sized Enterprise Basic Act.

Examples of business expansion by companies supported by JBIC
On the following pages, we present two of the mid-tier enterprises and SMEs whose overseas expansions were supported by JBIC, and havecaptured overseas demand to grow their businesses, while also contributing to local revitalization in Japan. These examples of successstories provide the evidence that advancing into the overseas market opens up new possibilities for a great leap forward.

Example 1

CHARMANT INC. (Sabae City, Fukui Prefecture)

Example 2

Benda Kogyo Co., Ltd. (Kure City, Hiroshima Prefecture)

CHARMANT Group is one of the leading Japanese eyewear companies which develop, design, manufacture and sell eyeglass frames
and sunglasses. The company began their overseas production in the
1990s, and now owns a plant in China. With direct sales to 12 counties, including the US, Germany, France, Italy, China, Hong Kong, andDubai, and sales through their agents to more than 100 countries
across the world, CHARMANT is growing into a multinational company. Moreover, they apply the innovative technologies of titanium treatment gained through R&D andmanufacturing of frames to anotherindustry in Japan, and have started
new trade, manufacturing and salesof the advanced medical instruments business.

Benda Kogyo designs, manufactures, and sells metal ring products, and maintains its world-top share of the auto engine ringgears market with its unique technical skills, called “Benda
Method.” After setting up a production plant in South Korea in
1986, and while promoting globalization through business development in China and Thailand, the company tried developing
a new local sales network and succeeded in starting businesswith Western finished-car manufacturers and primary suppliers.
Meanwhile, in 2016, Benda Kogyo set up a new plant in Japanin order to strengthen the domestic production and technology base, and is developing new
products, such as ultra-small
diameter rings.

P6

P8
5

Special Feature

Japanese Mid-tier Enterprises and SMEs ˜Entering New Stage of Global Business˜

Our Global Challenges CHARMANT INC. (Sabae City, Fukui Prefecture)

Vision that Took Local Company
Into and Beyond
Global Eyewear Industry– Creating medical innovation out of local eyeglass frame manufacturer
The CHARMANT Group’s modest beginnings can be traced back to 1956, when it started as one of Sabae City’s eyeglass frameparts manufacturers. The company gradually evolved into a fully-fledged frame manufacturer by insourcing all the necessary parts
production and surface processing in order to make finished products. Growth continued with the creation of their own sales company, entry into the international market, and commencement of overseas production, turning it into a global business with a 70%
overseas sales ratio. Their unique innovations in titanium processing have recently created light-weight “Line Art” frames, solidifying their status as a premium brand. Now applying this technology to develop medical instruments, one can say that the last half
century has been a history of continuous self-challenge for CHARMANT.

Clear vision to deliver premium
eyewear across the globeC

HARMANT first made its inroads into
the global arena in 1980 by exporting
to southeast Asia. Mr. Horikawa, the founderand chairman of the company, explains thismotive that “it was my insatiable curiosity thatmade me want to try delivering our high-end
eyewear to people across the world.”
The first two countries were Singapore
and Thailand, where they aimed to secure thesales networks by the one-country-one-agent
system. Then they immediately saw success,which can be explained with two facts. First,
frames imported from Europe did not fit thepeople of southeast Asia, but the frames made6

for Japanese fit them without any adjustments.
Secondly, while metal frames would easily rustin the southeast Asian environment which iseven more humid than Japan, the Japaneseplated frames did not. Thanks to the Singaporean agent who also had branches in Indonesia and Malaysia, CHARMANT expanded
to four Asian countries in a single swoop.

Ensuring product supply by
establishing production
bases overseas

I

n 1982, two years after their big success inAsia, the company started to make moves
to expand into the US market, but this timethey struggled desperately to find companies

who would be their agents. “The design andsize made for Japanese and Asians were notwell received in the US. At my wits’ end, I
asked a Korean friend for his advice. He said
we should set up our own sales company, andI thought, ‘well, indeed.’ We soon started tosearch for local partners, and by pure chance
I found out that my friend from university
managed a small trading company in Denver,
Colorado. I talked to him about my dreamand convinced him to be the president of our
first sales company in the US, which we set up
in New York. We sent two young employees –one in charge of management and the otherof design – and they started with just threepeople.” (Mr. Horikawa)After their persistent efforts in sales,
CHARMANT eyewear’s finest quality was

finally recognized, and the sales steadily increased. With the confidence after successes
in both Asia and the US, the company expanded to Germany, France, Great Britain,
and Italy from 1987 onwards. They continued to explore the European market by sending to each branch a management expert
who gained experience in the American market. Today, CHARMANT sells their products to a total of over 100 countries across theglobe through agents, as well as by direct sales
through local subsidiaries in 12 countries.
Next, CHARMANT rolled up theirsleeves to build production bases overseas inorder to ensure that products are delivered to
the world market. After establishing a subsidiary in Hong Kong in 1991, they began theirproduction in China (Dongguan in Guangdong province and Xiamen in Fujian province). By designating the Chinese factories for
products targeting the “volume zone” andthe headquarters for premium products,
CHARMANT has achieved the optimum
production level and stable supply system.

Venturing into the medical
business and revitalizing
local economyIn 2012, CHARMANT embarked on abrand new challenge. Using the state-ofthe-art precision processing technologies developed through R&D and production ofhigh-end eyewear, such as “LineArt”, they
began manufacturing and selling cuttingedge medical instruments, which were mainly
titanium products. These products are madewith four different materials – high-hardness
special steel for the blade edges of surgicalscissors and titanium alloy springs for thehandles. The materials are processed withCHARMANT’s unique laser micro welding
technology, achieving the sharpness of theblades as well as the lightness of the scissors.
First starting from ophthalmic instruments,
the scope of products has been expanding to
instruments for neuro and vascular surgeries.
“Our company’s know-how has been refined
to meet the world’s diverse needs and designs
for the eyewear. This gives us the perspectiveof users and flexible ideas beyond the conventions of the medical instrument industry.
Our unremitting efforts for originality andingenuity to meet the needs of doctors haveproduced revolutionary medical instruments. I believe that companies that own
unique technologies should take the leadingroles and constantly venture into new fields
without fear of setbacks.”
Today, CHARMANT combines technologies of eyeglass frame manufacturingwith superior craftsmanship of Sabae – digital
and analog – to lead Sabae’s innovation to become a new production base of world-classmedical instruments, and also to contribute to
local revitalization. With conviction, Mr.
Horikawa states that “although we haven’t
made huge steps yet, our medical business will
be without a doubt successful in a few years. I
believe Sabae will be the production center ofthe world’s medical instruments. Prime Minister Abe visited us in April 2015, because companies like us are expected to take the lead insupporting the development of rural areas, torealize the ‘Local Abenomics.’”

Kaoru Horikawa
Chairman of CHARMANT INC.

Company Profile
Name

CHARMANT INC.

Established1968

Capital

617 million yen (as of December 2015)

Representatives

Chairman: Kaoru Horikawa
President: Masao Miyachi

Business

Development, production anddistribution of optical frames,
sunglasses and surgical instruments(ophthalmic / neurosurgery)

Headquarters

6-1, Kawasari-cho, Sabae-city,
Fukui Prefecture

Factories

Sabae, Japan
Dong Guan City, Guandong Province,
China
Xiamen City, Fujian Province, China

Design studios

Tokyo, Fukui, Milan, Paris, New York,
Hong Kong

Group
companies

US, Germany, France, UK,
Hong Kong, and China

Since 1993, when still known as the Export-Import Bank of Japan, JBIC has supported CHARMANT

Relationship

INC. with the establishment of overseas branches and enhancement of production facilities forwith JBIC

overseas expansion. All of the ﬁnancial support was coﬁnanced with regional banks in the Hokuriku
region, where CHARMANT headquarters is located.

7

Special Feature

Japanese Mid-tier Enterprises and SMEs ˜Entering New Stage of Global Business˜

Our Global Challenges Benda Kogyo Co., Ltd. (Kure City, Hiroshima Prefecture)

Factory to Market – Growing Group Business by
Expanding Overseas Marketing Channels– Transforming into a global tier 1 technology development company
The history of Benda Kogyo Co., Ltd. began in 1964 from what became its name – bending steel. Creating a groundbreaking
method for bending steel pipes without heat, they developed their unique cold-forming technologies and equipment – the “Benda
Method”. After acquiring patents in nine countries, Benda Kogyo entered the automobile parts industry in 1975, bringing a majorchange in their business. Under “Quality is Vital” – their etched in stone corporate philosophy they retain their thorough commitment to quality even when expanding overseas. Such commitment, coupled with the high acclaim earned by Benda Method at home
and abroad and the company’s unbending determination to meet customer needs, has led the discovery of new market opportunities and the continuous development of products by Benda Kogyo.

the functions of a tier 1 supplier which develops and designs parts. They began to manufacture not only ring gears, their flagshipproduct (a component which transmits therotation of starter and initiates the engine),
but also drive plate assemblies (a component
which transmits the drive force of crankshaft
to torque converter).
At the same time, Benda Kogyo also set
up production plants in China, first in
Qingdao in 1995, then in Yancheng in 2007.
They faced obstacles and difficulties along
the way, such as the Asian financial crisis(1997) and the Lehman’s fall (2008), but the
Benda Kogyo Group overcame each ofthem and accomplished steady growth.
In 2013, marking new global expansion,
the company established the group’s next
strategic production plant, Benda (Thailand) Co., Ltd. in Thailand. Mr. Yashiro saysthat “contrary to the overseas plants mainly
built for supplying clients in the Japanesemarket, the Thai plant was built to bothmanufacture and sell locally to clients insoutheast Asia. We will pour in even more effort into marketing to firmly establish oursales network in the ASEAN region.”“One Benda Project”
Towards United Benda GroupBENDA Group in 3 years. One of theplans is to increase their share in the global
market by moving on from a business focused on single-products, such as ringgears, and placing more weight on drive
plates or assembled components and toreach the vision for their future: becoming
a global tier 1 technology development
company. In August 2016, the construction of their new plant in Kurose was completed, enhancing their domestic
production capabilities. The plant will
give further polish to the advanced technology and quality which are the sourcesof Benda Kogyo’s competitiveness. It will
also assist in passing on the technologies
across Japan, while enhancing the domestic production market share.
Ever since their founder made the firm
decision to advance into South Korea,
Benda Kogyo has been rapidly capturing
new sales from new markets and expanding
their businesses. Reflecting on its history,
the current President says, “Driven by theexcellent reception overseas, our orientational focus for this business shifted, ‘fromfactory to the market,’ and our overseas
sales now substantially exceed our domestic
sales as a result. It goes without saying that
BENDA Group would not have grownwithout pursuing the overseas market.”As part of the 50th anniversary of thefounding, in 2014 Benda Kogyo developed its first medium-term businessplan (2015-2017), creating the “OneBenda Project” aimed at unifying thegroup businesses to realize a united

Delivering top-class quality to
the world with determination to
succeed abroad“Benda Kogyo Group has faced a lot ofchallenges throughout our history.
Yet we confronted and overcame all of thesecrises and obstacles.” As President Mr. Yashiro states, there is a symbolic episode behindthe overseas expansion that led the company
to success.
Mr. Kazuyoshi Yashiro, the grandfatherof the current president and the founder of
Benda Kogyo, built the company’s first overseas branch in South Korea in 1986, despite
strong opposition from others in Benda leadership. The purpose behind this expansion
was to seek a low-cost but good-quality labor
force amid a serious lack of the same and an

8increased cost of labor in Japan. However, it
was not uncommon at the time for Japanesecompanies to collapse after expanding toSouth Korea. As feared, they continued to see
losses, and all of the other executives suggested withdrawing from the country, fearingthat it would jeopardize their business inJapan. But Mr. Kazuyoshi Yashiro had agreater fear that their business will eventually
come to an end if they continued solely withdomestic production. This sense of crisis, aswell as his strong desire to contribute to theworld with Benda Kogyo’s technologies, finally brought forth results. “In the mid-1990s,
we suddenly saw a rapid yen appreciation,
turning the situation around to favor overseas
procurement of automotive parts. We gradually managed to receive orders not only fromJapanese but also Korean and Western car
manufacturers. Japanese cars have been

Capturing local sales channels
by local production
enda Kogyo took proactive steps for
new businesses as well. One of them, in
2000, was securing QS-9000, a quality standard developed jointly by the “Big Three”
American automakers. Then in 2003, after
forming a technical alliance with Magna
Powertrain Inc. a leading global automotive
parts supplier in Canada, Benda Kogyo established the Benda R&D Center and became engaged in product design, attaining

Benda (Thailand) Co., Ltd.

President of Benda Kogyo Co., Ltd.

Company Profile

known to have the best quality in the world.
The fact that our auto parts were well recognized as such in the Japanese car industry gave
us a good reputation, and our products began
to be used” says Mr. Yashiro.

B

Kazunari Yashiro

Name

Benda Kogyo Co., Ltd.

Established1964

Capital58.5 million yen

President

Kazunari Yashiro

Business lines

Manufacturing of powertrain ring gear,
drive plate assembly, flywheel
assembly, and various ring products;
manufacturing of cold and hot-rolled
steel bars and coils

Headquarters
address

1-16-20 Konigata, Kawajiri-cho,Kure-shi, Hiroshima Prefecture

Plants in Japan

Headquarters and Kurose

Overseas
production
plantsSouth Korea, China, and Thailand

The corporate philosophy "Quality is Vital"
etched in stone.

In December 2013, JBIC signed a loan agreement amounting to 50 million Thai baht (JBIC portion) with Benda

Relationshipwith JBIC(Thailand) Co., Ltd. (BTC), a Thai subsidiary of Benda Kogyo Co., Ltd. The loan was co-ﬁnanced 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.

9

JBIC’s Support and Scheme for
Mid-tier Enterprises and SMEs

Note: Description of each deal (from left to right): location of the headquarters; company name;country of destination; and products/business

JBIC continues to strengthen its partnership with private financial institutions and regional banks abroad in order to
respond to diversifying needs of overseas businesses of mid-tier enterprises and small and medium-sized enterprises(SMEs). JBIC’s support is provided through co-financing with regional financial institutions, among others, and in local
currencies, as well as through facilities (credit lines) set up at private financial institutions and leasing companies. In
addition to such financial support, JBIC provides information on the overseas investment climate.

Fukushima Asahi Tsushin Co., Ltd.

Indonesia

Wire harnesses

Yamagata

Goto Denshi Co., Ltd.

The Philippines

Electronic parts

Yamako Co., Ltd.

China

Refrigerating, processing
and sales of nori

Nagoyashokuryo Co., Ltd.

ThailandRice products

Tamada Industries, Inc.

VietnamUnderground petroleum
storage tanks

Higuchi Manufacturing Co., Ltd.

MexicoAuto parts

SUZUKI EIKODO CO., LTD.

VietnamCandiesThailand

Health food andsupplements

Aichi
Ishikawa
Gifu■ An example of JBIC’s mid-tier enterprises and SMEs support scheme■ Past loans commited to mid-tier enterprises and SMEs
Number of loans
150

Credit line

Amount (JPY billion)
120

111.7 billion
AmountJapanese financial
institution

120

Domestic financing

Parent company(in Japan)(in USD, JPY, EUR,
or other currencies)

Japan

Investment, financing, parent loan

Overseas

Overseassubsidiary

80

30

16

Tohokuregion60

42.9 billion

34.1 billion

54

40

34

18 billion

20

2012

2013

3.6 billion

0

2011

2014 (Note)

2015

(FY)

ATSUMI FASHION CO., LTD.

Myanmar

Clothing

Hayashi Techno Co., Ltd.

China

Plastic magnets

KOYAMA Co., Ltd.

ThailandCastings

JAPAN A.M.C. LTD

ThailandFittings for construction
machinery and automobiles

CHARMANT INC.

China and others Eyeglass frames

Fukui

Credit line for THE SHIZUOKA BANK, LTD.
Credit line for The Hachijuni Bank, Ltd.
Credit line for The Hokuriku Bank, Ltd
ThailandHaso Ltd.

China

Hygiene and cleaning products

Toyota Kohki Co., Ltd.

India

Moulds for precast Concrete
products

SaitamaNakagawa Mfg. CO., LTD.

VietnamLabelsKanagawa

SUN ACE CORPORATION

Brazil

Polyvinyl Chloride Stabilizer

Toei Chemical Industry co., ltd

The Philippines

Industrial rubber products

ThailandMechanical equipment(assembly and installation)

Saraya Co., Ltd.

Thailand

Health and hygiene products

MARUYONE CO., LTD.

The Philippines

Fishing tackles

TAIKI Corporation, Ltd.

Cambodia

Cosmetics related products

Nagaoka Co., Ltd.

China

Fragrances and food flavors

Tiger Corporation.

VietnamStainless bottles

Kyoto

NAXIS CO., LTD.

VietnamSecondary materials forapparels

Shiga

GOHSYU CORPORATION

MexicoForged auto partsNara

GMB CORPORATION

China

Auto parts and components

BOLTZ Co., Ltd

Indonesia

Automobile and motorcycle
fastenings

DAI-ICHI DENSHI SANGYO
CO., LTD.

Laos

Various electronic parts

Yamamori Inc.

ThailandSoy sauce (brewing and sales)

Topia CO., LTD.

China

Auto parts

Tokyo

Production and sales of hygiene and cleaningproducts in China by Haso Ltd. (Tokyo)

Note: The FY2016 results include Mitsukan s large-scale M&A deal (a total of JPY75.5 billion
ﬁnanced by JBIC). The results excluding the loan to Mitsukan would be JPY36.3 billion.

Gunma
OkayamaMarugo Rubber Industries, Ltd.

Indonesia Auto rubber parts

Uchiyama Manufacturing Corp.

Vietnam

Auto parts

KAIHARA CORPORATION

Thailand

Denim fabric

Hiroshima Bankoku Needle Mfg. Co., Ltd. Thailand
Benda Kogyo Co., Ltd.

Thailand

Auto parts

Miyazaki
Saga

Nichiwa Co., Ltd.

ChugokuregionChina

Fuji Concrete Industry Co., Ltd. India

Credit line for The Chiba Bank, Ltd.
Credit line for The Bank of Yokohama, Ltd.

Manufacturing and sales of fishing tackles in thePhilippines by MARUYONE CO., LTD. (Osaka)Credit line for The Hiroshima Bank, Ltd.

Auto parts

KansairegionConcrete products

Kanto
regionShikokuregionKyushuregion

Osaka

Hyogo

Manufacturing and sales of concrete productsin India by Toyota Kohki Co., Ltd. (Tokyo) andFuji Concrete Industry Co., Ltd. (Saga)

10

Brewing and sales of soy sauce in Thailand by
Yamamori Inc. (Mie)

Tokushima

MARUHISA Japan CO., LTD Bangladesh Clothing

Ehime

SAKURAI CO., LTD.

Credit line for The Hyakujushi Bank, Ltd

Vietnam

Clothing

SUN ENGINEERING Co., Ltd

Credit line for The Joyo Bank, Ltd.

Chubu
regionNeedles for handicrafts, etc.

Dairy products (processing
and sales business)

Lacto Japan Co., Ltd.

0In FY2016 (1st-3rd quarters), JBIC made 93 commitments
amounting to JPY30.7 billion

Overseas project

Manufacturing and sales of electronic parts in thePhilippines by Goto Denshi Co., Ltd. (Yamagata)

90
60

Toyama100

109

Directfinancing

Facelabo Co., Ltd.

Nagano133

Number of loans

Shizuoka

Production and sales of health and hygiene
products in Thailand by Saraya Co., Ltd. (Osaka)

Production and sales of labels in Vietnam by
NAKAGAWA MFG. CO., LTD. (Saitama)

Mie

Credit line for The Senshu Ikeda Bank, Ltd.
Credit line for THE SHIGA BANK, LTD.

11