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Komiyama Interesting.
Sakane That is why I say Komatsu is a microcosm for regional revitalization. It’s
not that we lost confidence and left Japan, but that we regained confidence in the
strength of Japan, to the extent of fresh investment here. But the Japan market proportion could go from 20 to 10% if deflation keeps on at the present rate. I let them
know that there is indeed a point where we wouldn’t be able to maintain production
scale in Japan, and so in any event, we simply have to overcome deflation.
Relocation of Some Head Office Functions, 3.2 Times More Children
Komiyama Some head office functions were moved to Komatsu in 2002.
Sakane At the time, there were roughly 1200 people in the head office, and it was
becoming apparent that some of the departments here would be better located out in
the field. We began by moving the purchasing department to a factory, which made
more sense. Then in 2011 the education groups that had been scattered across Japan
were consolidated in a new training center, the Komatsu Way Global Institute. It’s
located in Ishikawa near the Komatsu Airport, which has direct connections to
Narita as well as Incheon International in Korea, so there is no problem at all for
trainees coming from anywhere in the world.
Komiyama I see.
Sakane Each year a total of 30,000 people attend the training institute. For their
lodging and meals, we use many local catering and lodging services, constantly
checking their availability. Each year, to sponsor those 30,000 trainees, we put 700
million yen into the local economy.
Komiyama Very impressive.
Sakane After the Tohoku earthquake in 2011, we decided to direct the capital
investment for our Japan factories into all-out energy conservation programs. Many
of the Komatsu factories in Japan date from the high-growth period around the
1960s, so about half of the buildings were more than 40 years old. After the Awazu
Plant was remodeled in 2014, the new assembly factory used 90% less utility power
per unit of production.
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