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01/02/2011 | Channel: Manufacturing, Construction
Having established strong business in Japan, Tomoku Hus seeks to extend its roots throughout Europe
Since its foundation in May 1991, Tomoku Hus has gradually expanded its business from a single site manufacturing wall panels to three wall panel facilities, one window factory and an auxiliary painting shop for window frames. The company began as a Swedish venture, Insjöhus AB, but is today 100 per cent Japanese-owned, with ownership split between Tomoku Co (60 per cent), Sweden House Co (20 per cent), Mitsubishi Corporation (15 per cent) and Mitsubishi International (five per cent). Similarly, despite its location in the Swedish town of Insjön, 96 per cent of the company’s turnover comes from exports to the Japanese market.
Tomoku Hus’ business is founded on the sales of Swedish-style wood panel houses to the Japanese market and, through its sales and construction subsidiary Sweden House, has achieved a great deal of success with over 100 house unit orders per month, equating to 1400 house unit wall panels and 30,000 windows and balcony doors annually.
Managing director Masafumi Okazaki illustrates the efficiency strategy Tomoku Hus utilises to keep up with this demand: “Wall panel manufacturing is a so-called ‘automatic process’ whereas window assembly requires more manual work, but both are indirectly controlled by the Swelog IT platform used in manufacturing administration. Of course, individual computer systems control all major machine-making procedures. Combined with lean concept techniques, this computerised system means we can produce our products safely and efficiently.”
In October 2010 and after three years of preparation, Tomoku Hus obtained the CE mark from Swedish certification body SITAC for its entire range of wall panels, displaying its ongoing commitment to quality manufacturing. The accredited panels range in thickness from 120 millimetres to 220 millimetres, in width up to 1.2 metres and in height up to 2.7 metres, and represent the first hardboard inner/plywood outer panels to receive the certification. All wood used by the company is sourced locally and evaluated against both Swedish and Japanese quality standards, with the latter sometimes requiring specialist suppliers. Nonetheless, Tomoku Hus is ideally located to procure the materials it needs as well as retain the 60 skilled staff factory operators that work in its factories.
Masafumi comments on the advantages of a Tomoku Hus product, particularly in the Japanese market: “We have been manufacturing small-block panels since we began because this means they can fit into freight containers for export; particularly useful when looking to develop new export markets as it is more logistically convenient. The smaller size also means it is good for local transportation from warehouse to construction site because residential roads in Japan are too narrow to carry large block wall panels.”
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Because the company has a strong environmental ethic, transportation forms an important part of a wider carbon emissions management programme in which, once a year, Tomoku Hus submits a report of its emissions to Sweden House. This data, which includes raw material processing, purchase handling, manufacturing and inland rail transportation, is then combined with Sweden House’s own calculations on shipping from Sweden to Japan, local transport and construction work. This report, publically published annually, is used to evaluate increasingly environmentally friendly methods of carrying out business.
This spirit of innovation is key to Tomoku Hus’ work, with a focus on rail rather than road or air transportation where possible as it has the smallest carbon footprint. However, new ideas are not limited to logistics. “We are launching new white-painted windows and balcony doors in the Japanese market this year,” illustrates Masafumi. “While it is common for European markets to sell painted window and balcony door frames, the majority of these products in Japan are unpainted. The launch will be a first trial to look for new customers in Japan.”
Another new direction for the company is an increasing emphasis on its European business, a market Masafumi is confident about: “So far Tomoku Hus receives on average orders for 100 house units a month without any spending anything on marketing; this means we are able to invest a certain amount into developing new European business. Currently four per cent of our turnover comes from business in Europe, including the Swedish market, but we are aiming for between five and ten per cent in the long-term.”
Concentrating on Europe has already produced significant results despite a backdrop of economic turmoil, fluctuating material prices and unstable profit margins. Compared to 2008, sales in its European market increased by 60 per cent in 2009 and a further 67 per cent in 2010. Comparatively, its Japanese market saw much smaller increases of 2.2 per cent in 2009 and 6.6 per cent in 2010. This strong performance suggests bright things for the coming years as the market begins to settle.
“In the mid-term, Tomoku Hus is planning an expansion of painting shop facilities in our painted window and balcony door factory to continue our trials in the Japanese market,” Masafumi concludes. “We are also looking to develop a range of side-swing windows and sliding doors as new products. This is an area where we see opportunities for growth, manufacturing new products with greater added value driven by lean concept processes. These stand alongside our ongoing commitment of offering better quality products at reasonable prices to find new markets in Europe.”
Tomoku Hus
Employees: 80
Products: Windows and wooden house panels