Japan Mold Makers to Open Indonesian Joint Plant

Metal mold maker, Nagoya Tokushuko will build joint mold plant with Hyogo based mold maker, Wadayama Seiki in Indonesia. They set machining center and grinding machine at plant in industrial park of eastern Jakarta to start design and mold making operation in August. The move is an example of offshore shifts of special steel supply chain when automakers shift to offshore plants and increase local procurement under high yen rate.

Nagoya Tokushuko deals special steel products including tool steel and structural steel and provides mold design service and makes mold for automakers and automotive parts makers. The firm launched mold sales company in Indiana of USA in 1999 and mold making company in Kentucky of USA in 2002.

The firm has studied additional plant in East Asia when major users increase offshore production. The firm decided around 400 million yen joint venture with Wadayama Seiki. They secured plant with 2,100 square makers of land in Karawan industrial park.

Nagoya Tokushuko controls 75% of the joint venture, PT. Meitoku-Wadayama Indonesia with 200 million yen of capital while Wadayama Seiki has 25% interest. They start work in January to establish the joint venture in March. They train Indonesian workers in Japan preparing for the operation start in August. They target 500 million yen of sales in 2013.

They plan 3 phases of the development of the joint venture. The first phase is to use a half space of the plant to make and design commodity grade mold. They shift a part of the business to the Indonesian plant. They plan heat treatment equipment in the second phase and will complete the third phase in 2017.