Project BENDA 02

In 2013, the Benda Group established its third directly managed overseas base in Thailand.

Increase the speed of
global expansion!

Establishing Benda Thailand

Benda (Thailand) Co., Ltd. is not just a manufacturing base in the Benda Group's global expansion. It was launched with a clear strategy of "maximizing profits with minimal investment and running costs," aiming to become a model case for the Benda Group's 'manufacturing' in the future. With a view to building a second factory in Thailand in the future, we have purchased adjacent land in advance to prepare for an annual production capacity of 5 million ring products. With a new concept, various initiatives to realize it have begun.

Our Vision for Expansion into Thailand

Our first entry into Thailand was in 1990, with the aim of supporting the domestic production of ring gears through technical cooperation. At the request of our business partner, Jibuhin Kogyo Co., Ltd., we established Jibuhin Thailand Co., Ltd. as a joint venture with an investment ratio of about 10%. After its launch, it seemed to be a smooth start, generating profits from an early stage and receiving dividend income. However, due to the Asian currency crisis in 1997, the value of the Thai baht plummeted by half. Due to foreign currency borrowing, we quickly fell into excessive debt, and managed to continue our business by increasing capital in 1998. Yasuhiro Yashiro, the former chairman, recalled this experience as a harsh lesson that "one cannot win against exchange rates."
In 1999, we also experienced the hardship of losing the supply of materials to Jibuhin Thailand, which at that time accounted for 10% of Benda Kogyo's sales. While turning these twists and turns into experience, former chairman Yasuhiro Yashiro dreamed of establishing a new self-owned base in Thailand, the land chosen as the next expansion site after South Korea and China. He passed away suddenly in Qingdao, China, in 2011 before realizing his dream, but his vision were firmly inherited within Benda Kogyo, and Managing Director (MD) Yujiro Yashiro took the lead in realizing his vision.

Overview of Benda (Thailand) Co., Ltd.

Benda (Thailand) Co., Ltd., a Thai corporation, was established in April 2013 as a wholly-owned local subsidiary to strengthen production in Southeast Asia, where demand for automobile parts is expected to continue to grow, and to meet the needs of major customers. Located in Rayong Province in central Thailand, about 90 kilometers southeast of Bangkok, it serves as a new manufacturing base for the Benda Group, following South Korea and China.
The factory's production capacity includes forming 1.5 million ring blanks, machining 700,000 ring gears, and assembling 300,000 drive plates annually. Production of CO2 drive plate assemblies is scheduled to begin in 2015.

The Path to the Establishment
of Benda (Thailand) Co., Ltd.

1990: Established Jibuhin (Thailand) Co., Ltd. in Chonburi Province, Thailand, as a joint venture.
1997: Asian currency crisis. Jibuhin (Thailand) fell into excessive debt due to foreign currency borrowing.
1998: Continued business through capital increase in Jibuhin Thailand.
1999: Material supply to Jibuhin (Thailand) was cut off due to transfer of orders to other companies, significantly impacting Benda Kogyo.
2004: Cleared all accumulated losses of Jibuhin Thailand.
April 2013: Established Benda (Thailand) Co., Ltd., a Thai corporation.
May: Held a groundbreaking ceremony and commenced construction of the factory.
November: Completed a factory of approximately 3,300 square meters.
February 2014: Held the opening ceremony of the Thai factory. Shipped the first axle rings in August.

BENDA THAILAND

Strategy in establishing Benda Thailand

The ASEAN market continues to grow, with significant demand expansion expected in the future. Thailand is where Japanese automakers are actively expanding their production bases.
Benda Thailand was established to meet the localization demands of our customers, to solidify our presence as a supplier of ring gears in the ASEAN market, and to create a high-profit base by thoroughly reducing manufacturing costs within the group. As the third overseas production base following China and South Korea, Benda Thailand plays an important role in the Bender Group's overseas strategy and is expected to become a key player in the future. In addition to existing customers, we plan to develop new customers, focusing on Japanese local subsidiaries.

Process of establishing
Benda Thailand

Benda Thailand achieved a vertical launch in an unprecedented 10 months, from its establishment in April 2013 to the start of production in January 2014. This was made possible through the collaboration and cooperation between the local staff, who had been involved in the project since the beginning of construction, and the Japanese staff, who arrived on-site in September 2013 during the construction phase, allowing the factory to commence operations smoothly without major issues.
The Japanese staff, led by Managing Director Yujiro Yashiro, and the Thai trainees who had been accepted into Benda Kogyo in anticipation of the future, played a crucial role in the launch of Benda Thailand. Managing Director Yujiro Yashiro managed overall operations, including manufacturing and quality, while Technical Advisor Mamoru Oshika provided technical guidance on manufacturing, General Manager (GM) Shunji Mito oversaw all line construction operations, and Manager (M) Kazumi Matsuura, who was proficient in Thai, handled administraionfd and accounting. The three Thai trainees had over three years of training experience at Benda Kogyo, and because personnel who inherited the Benda spirit had been developed in advance, the trainees played a central role in smoothly progressing through the processes from manufacturing to quality control, along with locally hired employees, at the same time as the factory opened.

*The titles are as of that time.

Design concept of the
Benda Thailand factory

A comfortable working environment that pursues safety is created from an efficient production line. Therefore, the Thailand factory’s greatest emphasis is on “manufacturing lines with waste-free, flowing processes”, with no lifts installed onsite. The line is designed to ensure that the manufacturing of products flows efficiently and smoothly. Additionally, by obtaining ISO 9001 and 14001 certifications, Benda Thailand aims to build a comprehensive company-wide system.

Minimized factory
construction costs

With the launch of Benda Thailand within a limited period of 10 months from establishment to the start of production, infrastructure development progressed simultaneously with factory construction, and equipment was also brought in sequentially. Regarding equipment, we maintained the machines used in the group, and procured 40% of them within the Benda Group. Although it was a vertical launch with a short construction period, we aimed to minimize costs.
Visualization of
production-site
processes

At Benda Thailand, in order to maximize production efficiency and minimize losses associated with setup changes, we have narrowed down the manufacturing items to inertia rings, axle rings, blanks, and ring gears.
Furthermore, in order to improve logistics losses, we have designed a line that emphasizes 'flow,' delivering products to the next process without using lifts, and automating some of the processes to build an efficient mass production system.
Standardized
manufacturing
processes

We conduct pre-training aimed at 'multi-skilling' so that all employees can handle multiple process operations. We are also promoting the standardization of manufacturing know-how created in Japan, South Korea, and China so that not only specific skilled workers but everyone can produce products at the same level. Embracing the spirit of "Quality is Life" in Thailand as well, the theme of human resource education is "full participation" and "education for all" to reflect this in the products.