Early move to Asia pays off for Furukawa Sangyo
Discovery Reports
Japan's historical dominance in the automotive and electronics industries has been contingent upon the reliability of the resources that power them.
Furukawa Sangyo Kaisha has been crucial in Japan's nation-building as it expanded into Asia. Through the company's expertise in cables and non-ferrous metals, it can cater to evolving demands and fuel new developments in these two sectors and other emerging industries.
A general trading company for Furukawa Electric Group, Furukawa Sangyo initially focused on electrical wires and cables, copper products and plastic resin products. As the needs of the Japanese market evolved, so did the company. With electronics as the main business line, Furukawa Sangyo ventured to construction, aerospace, energy transmission, telecommunications and insurance.
Furukawa Sangyo recognised early the burgeoning and changing relationship between Japan and its Asian neighbours. It established a presence on the mainland, Hong Kong, Taiwan, South Korea, Thailand, Malaysia, the Philippines, Vietnam and India to increase competitiveness. In addition, Furukawa Electric Group established 50 factories in Asia to capitalise on growing industries.
"We created a network in Asia to lay the groundwork for success. When our clients expanded into Asia, we were already there waiting," says Tsuneo Tateno, president and chief operating officer. "The key to success is timing. We had an advantage because of our established logistics systems."
Furukawa Sangyo has a three-pronged business strategy: knowledge network, product development and solution provider. For its knowledge network, Furukawa Sangyo collaborates with more than 3,000 partners in various industries to understand market demands.
Armed with market information, Furukawa Sangyo embarks on research and development and product creation. The company's product base includes optical fibre cables for next generation networks, rechargeable and storage battery equipment for emergency electricity facilities and aluminium products for air transportation. Once it has marketed products, Furukawa Sangyo relies on its highly-trained professional sales staff to liaise with manufacturers and customers, ensuring an optimum service experience.
The trading company plans to increase the volume of raw materials and components it supplies to Asia, particularly for the vehicle and electronics sectors.
Furukawa Sangyo eyes growth in the infrastructure and information technology segments for developing countries in Southeast Asia and the Middle East.
The company is open to joint ventures with local consulting, engineering and construction companies.
"We want to widen our network in Asia. Win-win partnerships will help us strengthen our platform to become a global company supplying the whole chain with relevant materials and products," Tateno says.
http://www.furusan.co.jp/english/index.html