Chuken kigyo: The secret of Japan’s
manufacturing successThough some of Japan’s best-known manufacturers have lost ground to regional rivals inrecent years, it is the country’s chuken kigyo – strong, medium-sized companies – that continue
to fly the national flag through their dedication to maintaining traditional monozukuri values.
While it may be massive Japanesecorporations such as Sony, Sharp
and Panasonic that took over theworld of consumer products in the1990s – and indeed remain iconic
brands synonymous with the famous ‘Made in Japan’ trademark
and its reputation for high-quality– today chuken kigyo is undeniably
a more relevant symbol of Japan’s
great manufacturing and technological prowess.
Whereas some of the country’s largest manufacturers havein recent years lost market shareto regional rivals that endeavor to
replicate the processes of Japanesemonozukuri, Japan’s smaller, lesserknown manufacturing firms – whomake up the so called chuken kigyo
sector – continue to dominate niches
upon which global industry depends.
A combination of ‘mono’, meaning thing, and ‘zukuri’, meaning theact of making, monozukuri is oftentranslated as ‘craftsmanship’ inEnglish. But monozukuri not only
focuses on crafting the highest
quality products, it also stands
for sustainability and working inharmony with the surrounding
environment. The philosophy issynonymous with Japan’s armyof SME manufacturers, who areoften hailed as the “hidden champions” of the nation’s reputed industrial sector.
Hideaki Imaie, President andCEO of SANSHO MEC – a company which specializes in parts
and assembly for the Japaneseelectronics and automotive industries – can testify to this.
“The most distinguished Japanese industry is automotive, symbolizing Japan as a country by its
production of high-quality goods
through distinguished processes,”
he says.
“But when we’re talking about
this industry, we are not only talking about the end-product car
itself, but the parts required to
manufacture that car. These parts

www.sansho-mec.co.jp

also have to meet the high-quality
standards. Toyota and Nissan produce around 100 million cars eachyear with one tenth of those being
produced by Japanese-based manufacturers. We play a significant
part in this process.”
In recent years, Japan has faced
stiff competition from regional
competitors that try to replicate
the nation’s manufacturing standards. And while these competitors may surpass Japan in termsof quantity and price, they often
fail to capture the true essence ofmonozukuri. The SANSHO MEC

president says that while it is inevitable that Japan’s parts manufacturers have needed to expand tothese territories and lower costs tocompete, the quality of the Japanese product goes unmatched.
“Parts manufacturers in Japanare trying to take their automatedproduction and sell those cheaperparts globally in order to competewith cheaper labor production
from countries such as China, Vietnam, Taiwan. The difference is that
we create these products to satisfy
the demand for high-quality andreliable products,” he says.

Hideaki Imaie, President & CEO,SANSHO MEC CO., LTD.
Such a strategy – one increasingly followed by Japan’s chuken
kigyo – has enabled companies like
SANSHO MEC to grow their international base of satisfied clientsamid stiff competition, helping
yet further propel the ‘Made inJapan’ brand to become worldwide ambassadors of the nation’s
renowned monozukuri values.

Moriroku: Committed to sustainable,
innovative chemical solutions
The 350-year old business is a “true solutions provider” for the automotive segment.
The chemical industry – Japan’ssecond largest manufacturing segment behind transport machinery– is perhaps not an area of theeconomy synonymous with environmental friendliness. But that isa perception Moriroku Holdings isdetermined to change.

“When you think of the stereotypical image that many have ofchemicals, it is most likely not a
positive one. However, what wevalue the most is the environment,”
says Takashi Kurita, presidentof Moriroku Holdings. “There isa concern with ocean pollution,bio-plastics in particular. Since

our responsibility is to not negatively impact ocean pollution, we
use lots of raw material for ourplastics. We not only recycle but
we always find a way to reuse any
scraps or waste.”As such, the president says thecompany is incorporating environmental, social and governance(ESG) criteria into its management
practices with a view to improving
environmental performance andensure it contributes to the sustainability in every country it operates.
From humble beginnings,
Moriroku can trace its roots all
the way back to 1663, when it
traded in indigo and manure. Fast
forward to today, and Moriroku is
a Group of companies that manufactures, exports and sells chemicals and synthetic resin products
for international markets, with
automotive businesses being its
main customers.
“In 2017, we became a
350-year-old listed company
which was a huge milestone forus. In the same year, we started
working with Volkswagen in Mexico. This was our first time working with a European company, butsince our listing we have been
expanding to work with other
European companies. We are now

Takashi Kurita, President,
Moriroku Holdings.
starting our second model with
Volkswagen at its Mexican plant.”
Specializing in the manufactureof injection parts for both the interior and exterior of automobiles,
Mr. Kurita says the company’s
main strength is that it is a true
solutions provider.
“From a technical point of view,
we offer R&D to our clients, wedon’t simply ask for an opportunity or follow their lead exactly.
We focus on specializing in thisinnovative technical development
to make effective solution proposals for our customers.”

www.moriroku.co.jp/english/