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Vinfast Opens R&D Center In Australia

Vinfast Opens R&D Center In Australia

Vinfast, Vietnam’s first domestic car manufacturer, has launched its Research and Development Center in Australia to boost international activity.

The establishment of VinFast Office in Melbourne—the industrial hub of Australia is a strategic move, taking advantage of the presence of giant automakers such as such as Toyota, Ford, Mitsubishi, GM, Melbourne, its complete supply chains and industry experts.

VinFast Australia aims to expand its presence in international markets, connect with leading suppliers and to catch up with the latest technologies and trends. The facility will be focused on research and development of new car models, including both ICE and BEV variants.

Earlier in 2020, VinFast Austrialia has started operations with its Automotive Technology Institute 2. It staffs nearly 100 industry experts and engineers from the world’s leading automakers.

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Global Light Vehicle Market To Decline 17.2 Percent In 2020

Global Light Vehicle Market To Decline 17.2 Percent In 2020

The world’s light vehicle market is forecast by GlobalData to decline by 17.2 percent to 73.6 million units in 2020, due to the impact of the COVID-19 pandemic and its associated economic fallout.

“This is a bigger one-off shock than witnessed in the two years of the global financial crisis,” says Calum MacRae, Automotive Analyst at GlobalData.

GlobalData’s analysis suggests that the damage to the global market will turn out to have been most acute in the second quarter of this year, when strict lockdown measures were in place across the world.

“Our forecast sees Q2 around 34 percent down on last year’s pace and way below the 2008 Q4 low point reached during the last big global downturn,” MacRae says.

“However, vehicle markets are on the turn as we get into the second half of the year. China was first in to the crisis and was first out. China’s light vehicle market was up eight percent in May and South Korea’s was up nearly 10 percent. In Europe we’re seeing some improvement to vehicle markets now, too, helped by government subsidies for new vehicle purchases.”

A combination of pent-up demand and the effects of the government subsidy program saw the French vehicle market surge back to life in June. Light vehicle sales increased by 2.4 percent year-on-year in June to nearly 286,000 units. Passenger car sales increased by 1.2 percent to just under 234,000 units.

However, MacRae cautions that uncertainties remain in this crisis and COVID-19 infections are rising in a number of countries in Asia and the Americas – most notably in the US.

“COVID-19 cases are on the rise in a number of US States, prompting new restrictions on populations. This brings further downside to GlobalData’s US light vehicle sales forecast. Increasing infection rates in three key US sales markets – California, Texas and Florida – means that stronger headwinds are a real threat.

“If tighter social restrictions are introduced or re-introduced in the coming days and weeks, prospects for the US market will suddenly look much dimmer than the 14.5 million (-15.2 percent) GlobalData currently forecasts for the US light vehicle market and will potentially result in a sub-14 million market.”

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ASEAN Automotive On The Road To Recovery

ASEAN Automotive On The Road To Recovery

Despite continued softness in the market, the automotive manufacturing market is steadily moving towards recovery. According to Globaldata, although the global light vehicle sales fell 33.8 percent in May compared to a year ago, it showed an improvement from April when sales fell a record low of 47.5 percent. Analysts believe markets will begin the long climb back and we will begin to get more signals on market demand for the rest of the year.

In fact, China will lead the global auto market recovery. With automotive production and supplies resuming and China lifting restrictions on the movement of people and goods since early April, vehicle sales have started to stabilise.

Here, we take a look at the latest developments in the ASEAN automotive market and its road to recovery:

Thailand:

With phase 4 of relaxations, Federation Of Thai Industries (FTI) expects gradual recovery of the automotive market as businesses restart operations.

However, May vehicle production production was down 69.1 percent in May YOY, totalling 56,035 units. They noted that 2020 vehicle sales could be 700,000 units if the outbreak stays under control, or 500,000 units if local infections continue into September. 

Furthermore, 50 percent decline is expected for the auto parts market, but the Auto Parts Industry Club expects gradual recovery of auto parts industry as Thailand enters Phase 4 relaxation

  • AAPICO Hitech (AH) expects losses in its Q2/2020 amid the continuing decline in the local automotive industry from the beginning of the year due to the pandemic, Marklines cited a Thun Hoon report. Among AH’s businesses is the manufacture of OEM automotive parts. The company, according to the report, plans to boost its production capability this year to serve new auto parts products.
  • Mazda has reported sales of 1,602 vehicles in May 2020, down by 60 percent YoY, but up by 58 percent from the previous month. In a statement, Mazda is seeing positive signs that the automotive market is gradually recovering, given increased sales in every segment.
  • Mazda has announced that it will resume two-shift operations at all its plants in Japan in July. Its plants in Thailand and Mexico will be operating on limited days. Mazda expects global production volume in July to increase by 50 percent from June, according to a MarkLines report citing Nikkan Jidosha Shimbun
  • Auto parts maker T. Krungthai Industries Public Ltd (TKT) has over THB500 million ($16.15 million) worth of backlog order in hand, waiting to be delivered to customers, according to MarkLines, citing a Thun Hoon report. TKT expects sales to recover in the second half of 2020.

Indonesia:

GAIKINDO, Indonesia’s automotive manufacturers association, reported Indonesia’s total vehicle sales in May 2020 were 3,551 units, down by 95.8 percent YoY due to the coronavirus. Meanwhile, the government is encouraging innovation through its Industry 4.0 program which includes the automotive industry and EV industry.

Although sales have experienced a downward trend since the beginning of the year, PT Suzuki Indomobil Sales (SIS) remains optimistic that it can increase its market share this year. From January to April 2020, Suzuki’s market share increased to 11.5 percent, compared to 9.3 percent in the same period last year. (GAIKINDO)

Vietnam:

According to the Vietnam Automobile Manufacturers’ Association (VAMA), automobile sales declined 30.6 percent YOY to 19,081 units in May.

Vietnam ratified a free trade agreement with the European Union that will cut or eliminate 99 percent of tariffs on goods traded between the Southeast Asian country and the bloc, and provide Vietnam with a much-needed post pandemic boost, according to Bangkok Post. Vietnam will have a transition period of up to 10 years for some imports, such as cars. With this, insiders predicted the domestic automobile market will prosper in the last six months of the year and domestic automakers have the opportunity to develop as well as compete with imported cars. (VNS)

  • Toyota Vietnam has announced sales of 4,311 units in May 2020, up by 48 percent from April. (Auto Daily)
  • VinFast Production and Trading LLC announced in April that the inauguration and start of production of its automobile manufacturing plant will take place in June 2019 instead of September 2019 as previously planned.

Malaysia

Malaysian Automotive Association (MAA) reported new car sales decreased 62.2 percent YoY in May. They expect sales volume for June 2020 to be higher than May as businesses resume after restrictions for economic activities are lifted and sales tax exemption announced by the government.

Furthermore, The Malaysia Automotive, Robotics and IoT Institute (MARii) estimates a 28 percent drop in new car sales in 2020 due to the Movement Control Order (MCO) brought about by COVID-19, and that a minimum 500,000-unit total industry volume is needed in 2020 for automotive businesses’ continued survival.

  • The Malaysian government has agreed to reduce the sales tax for new vehicles for six months until December to revitalise the market, according to a report from New Straits Times.
  • For the 1Q 2020, UMW Holdings Berhad registered a lower revenue as disruptions caused by the COVID-19 pandemic led to lower sales in the automotive and equipment businesses.
  • In May 2020, PROTON sold 5,676 vehicles, accounting for an estimated market share of 23.3 percent, but down by 46.5 percent compared to last year. Sales in May, however, was a 73 percent improvement over that of March. For January to May 2020, PROTON’s sales volume declined by 23.3 percent, while the overall industry dropped by 48.7 percent over the same period.
  • Perodua has sold 52,920 vehicles as of the first five months of 2020, giving it a 41 percent market share against an estimated year-to-date total industry volume of 129,401 units.

Philippines:

Operations of both assembly plants and dealerships have resumed with easing of restrictions. The Chamber of Automotive Manufacturers of the Philippines (CAMPI) and the Truck Manufacturers Association (TMA) reported a 84.6 percent decrease in May car sales YoY. According to Philippine Star, however, May’s production figure of 4,788 units was a vast improvement over the 133 units manufactured in the previous month. Furthermore, CAMPI expects total vehicle sales to drop 20 percent in 2020 due to the pandemic.

  • Auto parts makers have renewed their call to the government to support local parts manufacturing by implementing higher duties on vehicle imports and prevent small and medium parts makers from closing shop amid the COVID-19 pandemic, according to a Philippine Star report.
  • Comprehensive Automotive Resurgence Strategy (CARS) program
    • Government introduced Incentives to encourage investments in vehicle manufacturing, while manufacturers have to manufacture at least 200,000 units of enrolled vehicle model within six years
    • According to the Department of Trade and Industry (DTI), volume of vehicles required to be produced will remain unchanged even if automakers are unable to reach the target

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APMEN SURVEY: COVID-19 Impact On Manufacturing Industry

APMEN SURVEY: COVID-19 Impact On Manufacturing Industry

The COVID-19 pandemic has been having an unprecedented impact on the global manufacturing supply chain. For instance, factory shutdowns have drastically impacted the metalworking supply chain around the car and auto parts manufacturing industries.

In line with our continuing coverage of the impact of COVID-19, Asia Pacific Metalworking Equipment News (APMEN) recently conducted a survey regarding the impact of the COVID-19 pandemic to the manufacturing industry, including automotive and auto parts, aerospace and aerospace parts, electronics/electrical equipment, die and mould, machine tool, and medical device/equipment sectors.

Key questions include the challenges they experienced as a result of the pandemic; expected impact on their 2020 sales compared to last year; the most likely impact on their supply chains in the next six months; and whether they are expecting a pent up demand after the pandemic.

Here are some key findings:

  • 71 percent of respondents saw a decrease in demand for their products because of the lockdowns in every market worldwide.
  • Perhaps because of the drop in demand, majority or 47 percent of the respondents expect pent-up demand after the pandemic.
  • 55 percent of manufacturers surveyed, expect a decrease of more than 10 percent in sales this year
  • In line with that, 21 percent are saying they will diversify their supply chains by working with more suppliers, and 16 percent say they will shift to a localized supply chain.

For the full survey results, keep a look out for APMEN’s upcoming Jul/Aug issue!

Staying Connected

During a crisis, a spotlight is placed on the importance of the connection between a brand and its clients. In fact, 40 percent of our respondents say staying connected with their customers are among the key challenges they’ve experienced during the pandemic.

Your clients might be panicking, but it is important to provide them with anchors from your business to act as a focal point, like a beacon of light in a dark time.

It is key to establish such a light source through various human touchpoints. You should remind them of your shared experiences and the results that were delivered—and one way to do so is through targeted branding exercises for your business. Branding opens doors and creates new avenues for clients to reach out to you while seeing the value in doing business with you.

We at Asia Pacific Metalworking Equipment News (APMEN) would be very happy to help you on this front. Reach out to us and find out more about our solutions!

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BMW And Mercedes Put Autonomous Drive Collaboration On Hold Due To COVID-19

BMW And Mercedes Put Autonomous Drive Collaboration On Hold Due To COVID-19

The BMW Group and Mercedes-Benz AG are putting their cooperation on development of next-generation technology for autonomous driving temporarily on hold.

Following this news, David Leggett, Automotive Analyst at GlobalData, offered his view:

“The two companies cited the cost of developing a new next generation shared autonomous drive technology platform, as well as current business and economic conditions, as reasons for putting the cooperation on hold.

The technology for fully driverless vehicles is expensive and difficult to develop and as the COVID-19 crisis continues to decimate industry sales, the immediate focus for car companies is on core activity, surviving and being competitive for the ‘new normal’ conditions ahead.

For now, BMW and Mercedes will continue with their separate current generation advanced driving assistance systems (ADAS) technologies and shelve the more ambitious collaboration – while not completely closing the door on returning to it at a later date.

They will also keep options open to work with others outside the traditional automotive eco-system as the industry and transportation space is transformed over the next decade.

The COVID-19 crisis is forcing re-evaluations of company priorities and strategies, especially future investment commitments. For many in the industry, the huge sums involved in some advanced technologies – such as automated drive – are simply not justifiable in current market conditions.”

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GlobalData: Global Vehicle Market Is Over The Worst

GlobalData: Global Vehicle Market Is Over The Worst

Data compiled by GlobalData shows that global light vehicle sales fell 33.8 percent in May to 4.9 million from 7.5 million a year ago.

“The May result is an improvement on April’s showing when sales fell 47.5 percent bringing a record low SAAR for the global market,” says Calum MacRae, Automotive Analyst at GlobalData.

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The global market in May was boosted by improvements in China’s light vehicle sales which were 8.1 percent ahead at 1.94 million.  The worst performing regions were South America, down 70 percent to just over 114,000 units and Europe down 54 percent to just under 850,000 units.

GlobalData’s forecast for the year stands at 73.7 million light vehicles sold globally, 17.2 percent down on 2019’s result.

MacRae points out that May’s results mean that year-to-date, the global light vehicle market is down a hefty 31.3 percent, but with the seasonally adjusted annualised running rate (SAAR) up to 59.8 million in May from April’s record low of 48.2 million.

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“May’s results affirmed our belief that April represented the low-point for the global market. We believe markets will begin the long climb back and we’ll begin to get more signals on market demand for the rest of the year,” says Macrae.

“The coming months will reveal the extent of economic scarring, if there’s any significant pent-up demand or if markets need a kickstart from government-sponsored scrappage schemes.”

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Gates To Donate More Than $535,000 To COVID-19 Response

Gates To Donate More Than $535,000 To COVID-19 Response

Gates a leading global provider of application-specific fluid power and power transmission solutions, has announced charitable donations of more than $535,000 in support of organisations responding to the COVID-19 pandemic. Directed by the company’s global headquarters in Denver, the Gates Industrial Corporation Foundation (Foundation) is working with nearly 100 Gates facilities around the world to identify and help fund local nonprofits that are making a difference. The Foundation is also offering double matching for U.S. employee donations to COVID-19-related organisations in this time of greatest need.

Responding quickly to the global outbreak, Gates initiated the charitable initiative with a substantial donation to the Hubei Charity Federation to support the medical needs in the area where the virus is believed to have originated. The aid campaign now spans other parts of South and North America, Europe, Middle East and Africa; Greater China; and East Asia and India, including 17 locations across the United States. Among the recipient organisations are chapters of large NGOs, such as the United Way and the American Red Cross, as well as local hospitals, food banks and other humanitarian organisations.

Donations, totaling more than $535,000, are being provided on an unrestricted basis to allow recipient charities maximum flexibility to address the most urgent needs in their area. Among those are Personal Protective Equipment (PPE) for frontline medical professionals and health care services and food and housing for the most vulnerable populations impacted by the pandemic.

In addition to its worldwide charitable donation initiative, Gates continues to actively monitor, manage and adapt to the evolving pandemic. Thanks to prompt implementation of COVID-19 safety protocols at all of its approximately 100 plants, offices, labs and distribution centers around the world, Gates has been able to continue serving its customers and maintain employment levels while protecting the health and safety team members, their families and communities.

 

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COVID-19 Updates: Auto Makers Revving Up Production To Drive Market Recovery

COVID-19 Updates: Auto Makers Revving Up Production To Drive Market Recovery

In the wake of the continuing impact of the COVID-19 pandemic, global light vehicle sales in 2020 are now forecast to drop to 69.6 million units, 22 percent lower than in 2019, with risks to the forecast still skewed to the downside, according to IHS Markit.

In Southeast Asia, sales of new vehicles in the region’s six largest markets combined are estimated to have declined by over 19 percent to 700,528 units in the first quarter of 2020, according to GlobalData. Thailand saw first quarter sales down 24 percent as its economy reeled under the impact of much-reduced travel and tourism. Malaysia Q1 vehicle sales were down by 26 percent and Vietnam saw a slump of almost 32 percent.

Although 2020 is seeing a setback for the automotive sector in ASEAN markets, long-term prospects for the region remain very strong. GlobalData’s analysis points to strong indicators for long-term demand as motorisation rates rise with high economic growth—especially in Indonesia with its increasingly transportation hungry population of 273 million. Its market of around one million new vehicles a year is forecast to double to two million vehicles a year by the end of this decade.

In addition to strong long-term market prospects, the automotive manufacturing industry in the region benefits from relatively low costs, favourable government policies for investment, as well as free trading regimes for vehicles and components, according to GlobalData.

Here’s a roundup of the latest activities being done by automakers, parts manufacturers, and government units in ASEAN to drive the industry’s market recovery after the COVID-19 pandemic.

Thailand

  • According to the Federation of Thai Industries (FTI) automotive club, Thailand’s automotive production is likely to plunge 37 percent to 1.33 million units this year and could drop even further to 50 percent (to one million units) if the pandemic lasts till June.
    • Proposed measures to boost demand includes: a car trade-in scheme, 50 percent excise tax reduction until the end of the year and a delay in enforcement of Euro 5 emission standards
  • According to MarkLines Data Center, April vehicle sales in Thailand declined by 65 percent YoY to 30,109 units
  • Japan’s Isuzu Motors Ltd forecasts that demand for pickup trucks and other light commercial vehicles in Thailand is likely to fall 35 percent this year
  • Nissan Thailand has resumed production in its first Thai plant as well as plant 2 (on 1st June)
  • Mercedez-Benz Thailand plans to postpone the launch of the EQC BEV in Thailand to 2021 amid the coronavirus crisis, according to MarketLines, quoting a report from (Thansettakij)
  • Summit Auto Body Industry Co. Ltd (SAB) will continue with its project despite the pandemic, investing THB810 million—mostly for its plant expansion and purchase of new machines. SAB initially targeted THB8.8 billion for its 2020 revenue; but because of COVID-19, it revised down its forecast by 50 percent. (Prachachat Turakij)
  • TAPMA (Thai Auto Parts Manufacturers Association) expects exports of Thailand’s auto parts to drop in the second quarter of 2020 (2Q 2020) following the temporary suspension of car manufacturing plants both in Thailand and overseas amid the COVID-19 pandemic. However, recovery is expected in Q3 as plants are reopening (Marklines).

Indonesia

  • Gaikindo, Indonesia’s automotive manufacturers association, have reported that Indonesia’s total vehicle sales in April 2020 were 7,871 units, down by 90.7 percent YoY due to the coronavirus, according to MarkLines. January-April sales were down by 28 percent to 244,762 units.
    • In terms of automaker sales in April, Toyota was down by 90.3percent YoY to 2,056 units (26.1 percent market share); Daihatsu was down 91.8 percent to 1,330 units (16.9 percent market share); Honda was down 89.8 percent to 1,183 units (15 percent market share); Suzuki was down 86.4 percent to 1,042 units (13.2 percent market share); and Mitsubishi was down by 89.7 percent to 808 units (10.3 percent market share).
  • The Indonesia Coordinating Ministry for Economic Affairs has announced incentives in the form of stimulus, amounting to IDR 70 trillion, for the automotive industry players to minimise the impact of COVID-19.
  • Toyota Motor Manufacturing Indonesia (TMMIN) is set to resume operations this month after it suspended manufacturing operations from May 1 to June 1, 2020.
  • PT Toyota Astra Motor also announced to restart production around the same time, according to VietnamPlus.
  • PT Astra International: Its automotive sales drop by 91.2 percent year-on-year (yoy) in April to 3,807 units, according to data from the Association of Indonesian Automotive Manufacturers (Gaikindo).
  • Suzuki Indonesia: Gradually resumed operating the plant starting on May 26, 2020. Before this, Suzuki Indonesia had temporarily suspended factory operations from April 13 to May 22, 2020.

Vietnam

  • According to a report from the Vietnam Automobile Manufacturers’ Association (VAMA), the automotive market suffered a decline of 36 percent over the first four months and only 11,761 units were registered in April 2020
    • Sales of passenger cars decreased by 40 percent, commercial vehicles by 26 percent and specialised vehicles by 16 percent, compared to the previous month.
  • On May 20, the government approved a plan to reduce auto registration fees by 50 percent until the end of the year which could help domestic enterprises recover and stimulate car consumption for domestically-made cars over imports

Malaysia

  • Malaysian Automotive Association: Malaysia recorded just 141 sales of new automobiles in April, down 99.7 percent compared to the same period in 2019 (49,939 units)
    • Estimates point to a plunge to 400,000 this year. Sales for the first four months of the year declined 45 percent to 106,600 autos.

Philippines

  • The Chamber of Automotive Manufacturers of the Philippines (CAMPI) expects vehicle sales to decline by at least 20 percent in 2020 amid the COVID-19 lockdown. Earlier, the Association of Vehicle Importers and Distributors Inc. (AVID) expects total vehicle sales to decline by 40 percent. Total automotive sales covering vehicles sold by both CAMPI and AVID reached more than 410,000 units last year.
    • Toyota Motor Corp. restarted production in the Philippines, Pakistan, and Russia, on May 22. Toyota’s vehicle plant in the Philippines, which produces models such as Vios, resumed operations on a single shift on May 18. The six overseas plants where Toyota has not resumed plant operations yet include Indonesia, Brazil, India, Venezuela, Portugal, and Czech Republic.

 

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Frost & Sullivan: Digital Retailing And Vehicle Leasing To Propel Automotive Recovery Path

Frost & Sullivan: Digital Retailing And Vehicle Leasing To Propel Automotive Recovery Path

Frost & Sullivan’s recent analysis, COVID-19 Growth Impact Assessment for the Automotive Industry, 2020, presents the impact of the pandemic on the automotive sector under three scenarios—gradual containment, severe pandemic, and global emergency—resulting in outcomes ranging from steady recovery to recession. Under the severe pandemic scenario, original equipment manufacturers (OEMs) will try to capitalise on China’s early recovery from the pandemic, while overall economic relief measures in the U.S., Germany, France, and the U.K. will provide the necessary boost to the market in the post-recovery period.

“Major Asian vehicle manufacturing countries such as China, Japan, and South Korea, which accounted for 40 percent of global vehicle production in 2019, are on the recovery curve. The other two major automotive manufacturing powerhouses, the U.S. and Germany, are expected to resume production partially by mid-June,” said Vigneshwaran Ramesh, Automotive & Transportation Senior Research Analyst at Frost & Sullivan.

“Additionally, risk mitigation strategies such as offering financial flexibility and support to the entire ecosystem, including to dealers, suppliers and customers, will help OEMs of the world to revive.”

Vignesh added: “The impact of the pandemic on the automotive sector will unlock new opportunities for other mobility verticals such as electric vehicles (EV), vehicle leasing, and connectivity solutions. EV sales will experience a medium impact as China will revive fastest from the pandemic with manufacturing plants returning to normal. Further, new vehicle leasing for the corporate segment is expected to sustain moderate growth, owing to the demand for greater flexibility and short-term contracts, whereas OEMs will emphasise connectivity services to enhance their revenue stream.”

To tap into opportunities in this COVID-19 recovery era, consider the following growth prospects:

  • OEMs and dealers should focus on digital retailing and empower customers on their online journeys.
  • With the rise of eCommerce, light commercial vehicle (LCV) leasing and rental solutions are gaining traction, especially during the pandemic.
  • With increasing epidemic outbreaks (SARS, MERS, and COVID), OEMs can ramp up connectivity services, emphasising the need for health, wellness and wellbeing services within the vehicle.
  • Contactless and touchless business concepts will leverage aftermarket opportunities, helping on-demand service models gain further momentum.

 

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A Company At The Heart Of The Car Industry

A Company At The Heart Of The Car Industry

The reputation of the Japanese for being hardworking and quality-conscious is not just a cliché. This is proved by the family-run company Daisan Kouki. The job shop processes sheet metal for the automotive industry and relies on technology made in Switzerland. The machines run around the clock—this is the only way to guarantee the highest quality while meeting the ever shorter lead times. We take a glimpse behind the scenes. Article by Stefan Jermann, Bystronic Group.

The ByTrans Extended automation system (on the left) facilitates the loading and unloading of the cutting machines.

Tokyo Central Railway Station. It stands there like an arrow in a taut bow, the rolling legend: the Shinkansen. The interior of the fastest train in the world reflects much of that has made Japan what it is today: a high-tech nation that visitors experience almost like a journey into the future. Everywhere one looks, there is state-of-the-art technology and innovative design. Also inside the Shinkansen. One example of this are the rotating seats, which can be turned against the direction of travel if required.

Travelling to Nagoya with closed eyes, you hardly notice the tremendous speed of more than 320 kilometers per hour. It’s only when you look out of the window that you realize how fast you are actually tearing through the countryside. In addition to technical perfection, the Shinkansen also demonstrates the exeptional service mentality in Japan: Hungry or thirsty travelers need only wait a short while before one of the super-friendly staff comes by to offer snacks.

At the focal point of the automotive industry

The 366 kilometres to Nagoya take virtually no time at all. The journey to the city with a population of 2.5 million, the coal point of the Japanese car industry, takes just one and three-quarter hours. This is where all the major Japanese car manufacturers have their factories: Toyota, Honda, Nissan, Mitsubishi and Mazda. Nagoya generates approximately the same gross domestic product (GDP) as all of Norway. The cargo port and the well-developed land routes facilitate smooth logistics; over the years many suppliers have settled in the vicinity of the renowned car manufacturers. One of the companies that produce here is the family enterprise Daisan Kouki.

The company has been firmly in the family for 70 years. “In the 1960s, Daisan Kouki was a pure family business,” says Noriyuki Wakahara, the managing director of the company, which today has 104 employees. The core business of the company founder, his grandfather-in-law, was trading sheet metal. “One day, when a customer asked why we don’t also process sheet metal, we saw the light,” Wakahara recalls.

In 2004, Daisan Kouki, took its first step into the world of sheet metal processing and purchased a 2 kilowatt laser cutting system. In the years that followed, the factory was continuously expanded – among other things to comply with increasingly strict earthquake safety standards.

“We have always attached great value to reliably meeting even the highest quality requirements and have thus made a good name for ourselves on the industry,” says Wakahara. Most of his customers are active in the automotive sector. The parts that Daisan Kouki manufacturers support the production, above all in creating the production chain.

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