Customer Showcase: Kitagawa (Thailand) Co., Ltd. - Adding a State-of-the-Art Production Line in Response to Localization

With a proud reputation supplying the top market share of standard chuck machine tools, Kitagawa (Thailand) Co., Ltd. established itself at Hemaraj Chonburi Industrial Estate – Hemaraj CIE in 2003. An overseas production base of Kitagawa Iron Works Co., Ltd. from Fuchu in Hiroshima prefecture, Japan, the company is well-known for its high-quality products and use of advanced technology. They operate three main strands of business: machine tools, metal forging materials, and industrial machinery. In Thailand, they conduct integrated production of casting parts for automobiles and farm machines, including manufacturing, machine processing and assembly at their factory.

In March 2016, the company installed the second casting line at their Thai factory to expand production capacity. Previously, there was only one production line, used mainly for supplying internal machinery parts, but with the new additional line they can meet a wider range of product demands, especially in small parts machinery. They had formerly imported small parts casting for local processing but can now undertake full integrated production in Thailand, enabling them to tailor and ‘localize’ to their customers’ needs. The company has 3 factory buildings across almost 95,000 sq.m. of total land area, including a specialized aeration system, 106 machining centers and 87 NC lathes to perform various kinds of processing efficiently. High-grade materials such as nickeland molybdenum are used for the company’s casting technology, which makes it possible to produce highly heat-resistant products.

Mr Tatsuro Okuda, vice president of Kitagawa (Thailand), acknowledges the drop in manufacturing centered around the automotive industry since 2014, along with droughts that occurred during the same period which resulted in slowing demand for agricultural machinery. Though the situation is unfavorable, he believes the best path to forge through these times is via thorough and continuous improvement and development of line efficiency, staff skills and quality of products. “We can afford to do that now as the line isn’t at full operation, and see it as an advantage,” he said. He remains committed to positive thinking as a leader, and is considering exporting to overseas markets such as Japan in the future.

When they first entered the Thai market seeking the best factory site, it was other Japanese companies that introduced Hemaraj Chonburi Industrial Estate to them, as many of their client companies are also located on the same site. Additionally, they value access to quality transport infrastructure such as wide connecting roads, which are an advantage in attracting and retaining staff, who currently number almost 600 employees. In 2018, their Japanese parent company looks forward to celebrating its centennial anniversary, and they are proud that Thailand is part of their story of long-standing success.

Remarks: The article was written for WHA Group Newsletter June 2017 Vol. 37 No. 1