Author: Pernille Rudlin

  • Japanese car companies consolidate into two camps – in the UK too

    Japanese car companies consolidate into two camps – in the UK too

    Recent reports that Mitsubishi Motors is to join the Honda-Nissan alliance show that Japanese car companies are forming two camps – Toyota and Not-Toyota.

    According to the Nikkei, Mitsubishi Motors, which is 34% owned by Nissan, will work with Honda and Nissan to finalise the details of their partnership on electric vehicle development, including standardising in-vehicle software that controls cars.

    Even before the competitive pressures from China and Tesla in electric vehicles became apparent, what has happened to the Japanese car industry in the UK over the past decade has been an omen of what was to come. Mitsubishi Motors sold off its Nedcar operation in the Netherlands, its only manufacturing plant in Europe, to VDL in 2012. Nine years later it shut down its UK sales company, the Colt Car Company, a joint venture originally with Mitsubishi Corporation.  In the same year, Honda shut down its Swindon plant, leading to several other automotive suppliers who were reliant on Honda withdrawing from the UK too.  Honda’s European headquarters continues to be based in the UK, however.

    Nissan’s commitment to the UK is clear from a recent announcement that it will lead MADE NE (Manufacturing, Automation, Digitalisation, Electrification North East) with local government partners to create open access training facilities in Sunderland, covering education from primary school to apprenticeships, with a particular focus on EV and battery manufacturing.

    MADE NE will also support support targeted industrial innovation projects with funding and equipment.

    Toyota has two “Lean Management” centres, at its plants in Burnaston, Derbyshire and Deeside in North Wales, open to any non-competitive organisation who wants to develop people and processes in the Toyota Way.

  • Poland revisited

    Poland revisited

    It’s been just over three years since I last wrote in this column about Poland. Then, the EU was about to freeze funding to Poland because of their violation of the rule of law. I warned in my article that although Poland was clearly very attractive to Japanese companies, with stable economic growth over three decades and a cheap but educated labour force, this was not enough for long term sustainability if legal and state institutions were not stable, independent and transparent.

    Now, after his victory in the October 2023 elections, Donald Tusk has become Prime Minister, replacing the former ruling Law and Justice (PiS) party.  Tusk has arrested two politicians for abuse of power and has presented the justice reforms needed to unfreeze EU funds.

    The number of people employed by around 300 Japanese companies in Poland has continued to grow despite the political and legal instability, to over 60,000, fourth in Europe after the UK, Germany and France. According to a recent JETRO survey*, Poland is seen as the most promising market by Japanese companies in Europe, for the fifth year running. This is a reflection both of its relatively large population and that it is still a developing economy. 

    The importance of Poland to Europe, both culturally and economically, was brought home to me again on my recent trip to Warsaw and Krakow. Although the largest Japanese employers in Poland are the manufacturers such as Sumitomo Electric Industries, NGK and Toyota, there are substantial numbers working in the services sector. I was there to deliver training to a newly established shared services group for a Japanese electronics company. Shared services has become an increasingly common feature of multinationals in Europe, whereby there are hubs in several countries,  supporting all the European operations with logistics, HR, IT and legal services.

    I went to Krakow, not for work, but to see the Manggha Museum of Japanese Art and Technology. It is named Manggha because this was the pen name of Felix Jasieński, a 19th century art connoisseur who collected Japanese artists such as Hiroshige. He donated his collection to the National Museum in Krakow where it was seen by the a young Andrzej Wajda, later to become a famous film director. Wajda later donated money to fund the Manggha Museum, which opened in 1994, supported by the Japanese government.

    The JETRO survey also showed that Japanese companies have a strong interest in supporting the rebuilding of Poland’s neighbour, Ukraine. Poland has been a supporter of Ukrainian sovereignty, and for its integration into Europe since the fall of the Soviet Union. Relations between the two countries deteriorated somewhat, however, when PiS came to power in 2015. At the beginning of the Russian invasion, Poland provided strong support to Ukraine but in recent months tensions have flared up again. The hope, both for the EU and Japan must be that these tensions are resolved now Tusk is in power, although no resolution to the Russian invasion is in sight.

    *https://www.jetro.go.jp/world/reports/2023/01/9692d660c7fb3d25.html

    Top 30 Japanese companies in Poland 2021 – Rudlin Consulting

    This article was first published in Japanese in the Teikoku Databank News on 14th February 2024

    Photo of Manggha Museum – (Nemuri), Public domain, via Wikimedia Commons

  • Sega Sammy to acquire Dutch online gaming company Stakelogic

    Sega Sammy to acquire Dutch online gaming company Stakelogic

    Japanese gaming company Sega Sammy will acquire Stakelogic B.V. for a rumoured $141m.  Headquartered in the Netherlands, Stakelogic has over 550 employees in 7 offices covering over 20 markets worldwide.

    Stakelogic has expertise in developing iGaming content and has Game Certifications across 17 territories, developing slot games, live table games and hybrid games which allow players to play roulette, blackjack, baccarat and live game shows online.

     

  • Hitachi to sell stake in US air conditioning company Johnson Controls to Bosch

    Hitachi to sell stake in US air conditioning company Johnson Controls to Bosch

    Hitachi has announced a further divestment of its non core businesses with the sale of its 40% stake in the joint venture it has with US company Johnson Controls to Bosch. Johnson Controls-Hitachi Air Conditioning has multiple operations in the EMEA region, including in Spain, UK, Bulgaria, France, Czech Republic, Hungary, Italy, Poland, Russia, Slovakia, Turkey and Ukraine.

    Its commercial air conditioning business in Japan will be folded into Hitachi’s home appliance business. The home air conditioning production plant in Tochigi, Japan, will be transferred to Bosch.

     

  • Yazaki acquires German JuHa Group

    Yazaki acquires German JuHa Group

    Japanese automotive parts supplier Yazaki has acquired the German mould maker Junker Halverscheid group via its Yazaki EMEA N.V. subsidiary.

    The family-owned company JuHa, is a manufacturer of tools and moulds for plastics processing as well as a producer of plastic parts for the automotive industry. It has around 200 employees in Lüdenscheid and has been a supplier to Yazaki EMEA for decades.

    Yazaki is also a family owned, privately held company, and is the third largest Japanese employer in the EMEA region, with over 45,000 employees. It has largely grown organically overseas rather than through acquisition.

     

  • Sekisui House UK to go into liquidation

    Sekisui House UK to go into liquidation

    Sekisui House UK, which was established in 2018, is to go into liquidation.  The company had invested in Urban Splash House Holdings and also made a loan to one of the companies in the group, Port Loop. Seven of the companies in the Urban Splash group went into liquidation in 2022 including Urban Splash House Holdings Ltd, the main development business Urban Splash House Ltd, the modular manufacturing business Urban Splash Modular Ltd, and a development vehicle for the Port Loop development, Port Loop (Subco 1) Ltd.

    Urban Splash was hit by the under-use of its factory, which led to losses piling up with the problems compounded by design issues which resulted in defects in the homes it produced.

    It seems Sekisui refused to bail the company out once a shortfall was identified.

  • Kyokuyo acquires stakes in European seafood companies

    Kyokuyo acquires stakes in European seafood companies

    Tokyo-listed seafood company Kyokuyo has bought a majority interest in Northseafood Holland as part of its strategy to establish an overseas processing presence.

    Its Kyokuyo Europe subsidiary, also Netherlands based, will acquire a majority stake in NSF Holding, the parent company of NS Holland.

    Kyokuyo also took a majority stake in Turkey’s Kocaman Fisheries Export and Import Trade in January.

    There have been quite a few acquisitions by Japanese companies of European seafood processors in recent years –  for example Maruha Nichiro, Nippon Suisan and Marubeni.

  • Sumitomo Electric Industries to acquire majority of Germany’s Südkabel

    Sumitomo Electric Industries to acquire majority of Germany’s Südkabel

    Sumitomo Electric will acquire 90% of the shares of Südkabel, a 120 year old cable manufacturer  Mannheim, in order to fully localize the production and construction of high voltage direct current cable systems in Germany. The acquisition process is currently expected to be completed as of October 1st this year, subject to regulatory approvals.

    Two major HVDC cable projects, Korridor B V49 and part of the Rhein-Main-Link project, with a total project value of more than EUR 3 billion, have been awarded to Sumitomo Electric, which will be anchor projects to pave the way for a climate neutral energy system in Germany.

    SEI also announced in May the construction of a high-voltage submarine cable factory in the UK.

    Sumitomo Electric Industries is the largest Japanese employer in the Europe, Middle East and Africa region, employing 75,000 people, largely due to its wire harness manufacturing for the automotive sector. It acquired the British company Lucas in 1990, Italian Cabind Automotive in 2001 and Volkswagen Bordnetze GmbH in 2006. Südkabel used to be part of ABB, and employs around 300 people. This new acquisition shows a diversification away from the automotive into the energy sector – a trend common across many Japanese companies with operations in the region – a similar much larger scale acquisition being Hitachi’s acquisition of ABB’s power grid business.

  • Hitachi Energy to expand operations in Sweden

    Hitachi Energy to expand operations in Sweden

    Hitachi Energy has announced it will invest $4.5bn in its Swedish and Indian operations over the next three years. Hitachi Energy is the product of Hitachi’s acquisition in 2020 of ABB’s power grids business. ABB was itself the product of the merger of the Swiss Brown, Boveri & Cie and the Swedish Allmänna Svenska Elektriska Aktiebolaget in 1988.

    In Sweden the investment will go towards expanding an existing factory and building a new plant, which will include a research and development center. It is expected the investment in Sweden and India will lead to an additional 3,500 employees. Hitachi Energy already has over 1,000 employees in Sweden.

  • Fujikura to close AFL Telecommunications Europe in UK

    Fujikura to close AFL Telecommunications Europe in UK

    It has just been disclosed in their latest annual report that AFL Telecommunications Europe will close. The company manufactured and distributed fibre optic cables in Swindon, UK, employing nearly 100 people. AFL Telecommunications was acquired from Alcoa by America Fujikura in 2005. The decision to close was made in March 2024, and after consultation, it was decided to wind up the company by the end of 2024.

    AFL Telecommunications continues to be headquartered in the USA, and has subsidiaries AFL Telecommunications UK (formerly FibreFab, acquired in 2013 – which develops, assembles and sales fibre optic components and data networking products), AFL Telecommunications GmbH in Germany and AFL Telecommunications Poland Sp. z.o.o. in Poland – a manufacturing operation which was opened in 2023.

    UPDATE:  Italian company Tratos Cavi has acquired AFL Telecommunications Europe and UK as of 3 July 2024