Introduction to Companies in Osaka

Introduction to Companies in Osaka

Interviews

DunAn International (Japan) Co., Ltd.

Interviews with foreign investors in Osaka 2016.03.28
AirAsia X
After two years of operation in Osaka, we expand our influence to whole Japan.
DunAn International (Japan) Co., Ltd.
President
Mr. Xiao Lin
QPlease introduce your company.

We founded our company in Zhuji, Zhejiang, China twenty-eight years ago. It was a small spring plant in the beginning and we started making a fortune from it.
Later, we started to set foot in producing air conditioning accessories in China in the beginning of 1990s. Probably in 2003, our company went public on the Shenzhen Stock Exchange. In 2014, the gross sales of our company reached RMB 50.7 billion (about Yen 960 billion).
The group has 87 subsidiaries in total, involving 6 industries. One is manufacturing. We produce parts and equipment. The other is the chemical industry, and we mainly produce explosive materials like civil explosives. Additionally, we are involved with modern agriculture, organic agriculture. We are also engaged in the new energy industry, like wind power generation and solar power generation. The last industry is investment, as we have an investment company. This company invests in DunAn Environment as well as the chemical company that I mentioned just now.

QPlease introduce yourself.

I came to Japan to study in 1998. I learned Japanese first and attended Osaka University. Later, I worked for a local air conditioning enterprise in Japan. I have been engaged in the air conditioning industry since then. My current job is also related with the industry that I was originally involved with.
DunAn produces air conditioning products. I learned about it in a Chinese air conditioning exhibition in the beginning. I met the current leader of DunAn Environment there, but we didn't have any detailed work relationship. Later when DunAn established a corporate body in Japan, it needed a person who is deeply familiar with both Chinese and Japanese cultures with certain work experience in this industry in Japan to help establish the company as a principal. Then, they thought of me, so I joined DunAn.

QWhat were the purposes of establishing company in Japan?

Japanese DunAn was established for three purposes. First purpose is to expand the occupancy of our products in the Japanese market. Second purpose is to offer better services to our customers. And third purpose is to seek suitable and high-quality partners and talents for our company in Japan. These are the objectives for establishing our Japanese company.

QWhy did you choose Osaka?

There are three reasons. Firstly, I was in Osaka, so I was quite familiar with it. Secondly, if Japan is divided into east and west, Osaka is the center of west Japan. Moreover, we have several big customers around Osaka, including Daikin, Panasonic and Sharp.
Relatively speaking, I think the business habits in Osaka are closer to international standards, which won't be affected by other factors. For me, Osaka is more like a metropolis. Therefore, the cost of operation and labor in establishing a company in Osaka is more charming than in Tokyo. These are my major purposes of choosing Osaka.

QHow would you evaluate the business development in Osaka thus far?

Our company was established in May 2014. To date, it has been in operation for almost two years. During this period, we have basically reached our anticipated result in the beginning of establishment. Our market occupation has been remarkably enhanced, including our supply amount and rapidly developed product categories. Therefore, the policy to settle in Osaka and then cover the entire Japan has basically reached our anticipated effect.
DunAn Japan is headquartered in Osaka. Additionally, we established a sales office in Shizuoka last April, mainly responsible for customers' business in Shizuoka. We develop quite well there. This April, we plan to expand its business scope and increase staff in Shizuoka, and then expand our influence in the east Japan.

QHow did the relationship with Japanese customers change?

Our products have long been imported to Japan through other business channels, but because we didn't have direct contact with our customers, we couldn't perfectly grasp technical work, post-service and customers' demand. After our Japanese subsidiary was founded, we could offer intimate services to customers and customers have been quite satisfied with us. We couldn't add enough new products for many years. Now, after we established Japanese corporate body, we developed 52 new products for customers. Next year, we will keep forging ahead in terms of our achievements.

QPlease introduce your business prospect.

Our company has developed from air conditioning accessories and we possess the highest market occupancy in the world. We are one of world's major companies in this industry. We have continued engaging in this industry and we stay progressing. Our strategy is to continue this progress further in this field.
In the meantime, we are expanding into other business also. We particularly target two industries. In the next five years, we'll enter in the new energy automobiles, such as electric vehicles and PHV. They have heat system. We're ready to set foot in this new industry. Besides, we will be engaged in the robot industry. Labor costs are rising in both Japan and China, so robots are needed to replace labor.
We think that both industries have great market potential like air conditioning accessory industry did when we entered the industry. With the growth of the market, we hope that both industries will expand like the air conditioning accessory industry and we become a top player in the world.

QWhat do you think is the function of the Japanese corporate body in entering new industries?

We need to exploit everything. If we set a right direction in both industries in the beginning, find suitable partners, and build a foundation in the new markets, I believe that we can develop these industries efficiently in the future. Therefore, our Japanese company has a long way to go with significant tasks for the development of both new industries.

QHow was the support from O-BIC?

I think when overseas companies are established in Japan, they need local organizations to support their establishments. Then they will yield twice the result with half the effort. For example, during our establishment, the government supported us through O-BIC. I think the support in the early establishment stage was very helpful.

QPlease give a message to foreign companies considering coming to Osaka.

First, I would like to thank O-BIC for its assistance to us in the early stage of establishment. I hope that we can attract more overseas enterprises to settle in Osaka through our case, increase its yield and develop Osaka. Thank you.

Please click here to read in Chinese.(PDF:129KB)

DunAn International (Japan) Co., Ltd.
Establishment May 2014
Home Base Zhuji, Zhejiang, China
Parent Company Zhejiang DunAn Artificial Environmental Equipment Co., Ltd.
Business Production and sales of refrigeration auto-control components
URL http://www.dunan.jp/
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