Kinki region exports, imports fall in 1995 due to earthquake
Both exports from and imports to the Kinki region fell in 1995, declining for the first time in two years, due mainly to damages inflicted by the Great Hanshin Earthquake, said an Osaka Customs' report issued January 30.The region's share of Japanese exports dropped to 18.5% from the previous year's 21.1%, while its share of imports contracted to 19.2% from 21.8%.The Kinki region comprises the six prefectures of Osaka, Kyoto, Hyogo, Shiga, Nara and Wakayama.Exports of electronic components, such as semiconductors, hit a record high thanks to strong demand from the U.S. and Europe.Steel product exports also enjoyed an increase.But slowing exports of office equipment, motors and other products squeezed the value of aggregate exports by 10.1% from a year earlier to ´7,672 billion.
Imports dipped 0.9% to ´6,069.6 billion, although a sharp increase in purchases of office equipment and other products pushed up imports from China to a record ´1,226.8 billion.Chinese imports rose for the ninth consecutive year, exceeding U.S. imports for two years in a row.
Kobe Port, which was heavily damaged by the earthquake, saw a 38% plunge in the value of exports to ´2,895.3 billion.Imports handled by the port also plummeted 40.4% to ´1,449.4 billion, the report said.Osaka Port, meanwhile, saw a sharp rise in cargo traffic, taking over part of the functions of Kobe Port.Exports handled by Osaka Port surged 37.2% and imports climbed 40.9%.
Kansai International Airport saw ´1,372.5 billion worth of exports and ´1,149.7 billion in imports in 1995.The report said both figures were record highs for an international airport in the region, surpassing the cargo handled by Osaka International Airport at Itami when it was the sole hub of international air-traffic until the September 1994 opening of Kansai International Airport.
Doyukai proposes East Asian energy forum
The Kansai Association of Corporate Executives (Doyukai) on January 29 issued a proposal on regional energy security.The proposal includes establishment of a private-sector East Asian energy forum to solve an expected energy crisis caused by rapid economic growth in East Asia.Energy demand in East Asia in 2010 is estimated to double from 1992, reaching the equivalent of about 3 billion tons of oil.However, a shortfall of some 985 million tons is forecast because regional supply is unlikely to increase dramatically, the association said.
Consequently, the region will depend more heavily on the rest of the world for energy, especially the politically unstable Middle East.
East Asian countries need to closely cooperate to secure a stable energy supply and prevent friction or conflicts over energy, the association noted.
Doyukai recommends the proposed forum function as a place for oil, gas, electricity and other energy suppliers as well as energy consumers comprising representatives of other industries in these nations to discuss and exchange views.Topics to be addressed include thepropagation of technology to boost efficient energy use and promotion of joint research of such technology; ways to increase oil stockpiles and setting up a mutual oil lending system; and strengthening mutual cooperation within the region for nuclear energy development.
OAP Towers to serve as new Osaka landmark
Osaka's new landmark, the OAP Towers, began accepting tenants to the office tower on February 1 following the completion of construction on January 31.The towers constitute the core of Osaka Amenity Park (OAP) in Kita Ward, which was developed by Mitsubishi Materials Corp. and Mitsubishi Estate Co.OAP is located between Umeda, the central district of Osaka, and the new business zone Osaka Business Park (OBP), facing the Okawa River, north of the Osaka Mint Bureau famous for cherry blossoms.The amenity park will consist of offices, hotels, shops, restaurants and residential units.Construction started in July 1992 at the 5-hectare site of former Mitsubishi Metal Corp.'s Osaka refinery site, which came under urban redevelopment.
The OAP Towers comprise a 39-story, 180-meter-tall office tower (OAP Tower), a 24-story OAP Hotel Tower, which will house the 390-room Imperial Hotel Osaka, and a five-story Hotel Annex.
Total investment cost is estimated at about ´140 billion.The commercial facilities in OAP Tower and Imperial Hotel Osaka are to open their doors on March 15.The first phase of the construction of the residential units is slated for completion by February 1998.
ANA to increase flights via Kansai in FY96
All Nippon Airways Co. (ANA) plans to offer new flight services from Kansai International Airport to Frankfurt, Milan, Vienna, Yangon, Honolulu and Ho Chi Minh City, pending approval from the concerned governments, the airline reported in a fiscal 1996 business plan released on February 1.ANA plans to boost passenger capacity, in terms of "available seat kilometer" for the year, by 18% on international routes and 2% on domestic routes for an overall increase of 7%.It will buy six new aircraft (four Boeing 777s and two Boeing 767s), bringing its total fleet to 131 airplanes, by the end of fiscal 1996.ANA aims to improve its productivity by raising annual aircraft use by 2%.
It will also expand services on existing international routes to and from Kansai.ANA will add three flights to its Kansai-Hong Kong route, making the flight daily, and add one flight to its Kansai-Bangkok route for six flights a week.
ANA plans to provide 3.88 million passenger seats on its international routes in fiscal 1996, up 16% from fiscal 1995.Of these seats, 2.38 million will be for flights landing at and departing from New Tokyo International Airport at Narita and some 1.5 million will be for flights to and from Kansai International Airport, up 59%.
The carrier expects to serve 2.51 million passengers on international routes in fiscal 1996, up 14%.Of these, 1.63 million, up 1%, will use Narita Airport, while 880,000 are expected to use Kansai International Airport, an increase of 51%.
Osaka to host food festival in spring '97
The International Festival UTAGE '97 IN OSAKA will be held from April 25 through May 5, 1997 at INTEX OSAKA, bringing together about 240 foreign and domestic corporate participants, the fair's executive committee announced on January 29.The committee comprising people from the business community and food-related companies in Kansai is headed by Yoshihisa Akiyama, president of Kansai Electric Power Co.The festival has been staged every four years in Osaka since 1985 .The city, once dubbed "the kitchen of Japan", remains at the center of Japanese food culture, boasting a variety of tasty cuisine.The festival is expected to help turn the city into an international cultural center for food.
Under the theme of utage, or feasting, the event seeks to promote food -related industries and international gastronomic cultural ex-change.The atmosphere of a village fair will be created by setting up booths similar to the colorful marketplaces found around the world.The ethnic cuisine of China, South Korea, Thailand and other Asian nations can be sampled at the Asian Village, while the Japanese, American/Oceania and European/African villages will also feature indigenous dishes.
At the same time, companies involved in food processing, foodstuff materials, tableware and cooking equipment are expected to exhibit their products.
The executive committee expects some 500,000 visitors will attend the 11-day festival.
Awaji Dream Stage plan revised after quake
Hyogo Prefecture revealed on January 26 a revised plan for the Awaji Dream Stage (Awaji Yume Butai) project.The plan had been under review because the Great Hanshin Earthquake left fissures on the construction site of the planned recreational complex.After the quake, six faults were found running from north to south under the site.This led the prefecture to decide to change the location of main facilities, such as the hotel, international conference hall and greenhouse, to safer places.
Construction of the facilities will start in fiscal 1997.Opening is slated for the end of March 2000, two years behind the original schedule.Construction costs of about 48 billion yen were not affected by the revision.
The Awaji Dream Stage will have observation terraces overlooking Osaka Bay, an observation restaurant, a greenhouse, an open-air theater, a 200-room hotel, a 300-seat international convention hall and other facilities.
The structures will be built on a 27.5-hectare site situated in Higashiura Town, which is on the east coast of Awaji Island.Construction is to take place on a slope and level ground formed after builders removed earth to construct the island for Kansai International Airport.
The plan is part of the Awaji International Garden City project and construction had been expected to start in fiscal 1995, with the opening planned to coincide with the inauguration of the Akashi Kaikyo Bridge in March 1998.
Hyogo firms still suffering from quake
Business at 53.8% of Hyogo Prefecture-based firms deteriorated after the Great Hanshin Earthquake and 2.4% even suspended operations, said the prefectural government in its report released on January 26.Of the firms that reported a drop in their business, 78.5% said they see no prospect of recovery.Most of these firms cite the overall economic slowdown for the fall in production or sales.From mid-November through mid-December, the prefecture sent questionnaires to a total of 48,300 stores and manufacturers in 10 cities and 10 towns damaged by the January 17 earthquake to survey the progress in reconstruction.It received responses from 7,765, 16.1% of those polled.
As a reason for the business slowdown, 75.8% of manufacturers cited the negative effect incurred by the stagnation of the overall economy while 46.3% attributed the deterioration to indirect quake damages such as traffic congestion, weaker consumption in the region and a fall in orders from clients suffering from the quake damage.
In the non-manufacturing sector, the overall economic condition was again the major reason (65%) for the dip in business, but the indirect impact of the quake was cited more often (52.3%) than in the manufacturing sector.
Some 12.8% of the respondents said their business has improved.Asked about the reason, 50.3% of manufacturers mentioned a rise in demand related to reconstruction work, and 34.4% referred to recovery in the market conditions unrelated to the earthquake.An overwhelming 79.9% of non-manufacturers cited restoration demand, while 10.7% cited quake damage on other firms in the same trade.
Mie Prefecture sets up World Wide Web site
Mie Prefecture opened on January 30 its home page on the Internet, allowing Net surfers to access wide-ranging information on the prefecture both in English and Japanese.The home page includes introductions to Marine Festival Mie '96, a listing of events commemorating the 50th anniversary of Ise-Shima National Park and other events as well as the prefecture's history, statistical facts, sightseeing information, a guide to industrial parks and various incentives for those considering opening businesses in Mie Prefecture.The marine festival page announces the 11th such event, which will be held from July 20 to August 4 concurrently with the first observance of Marine Day, a new national holiday on July 20.A total of 83 projects are expected to be staged in Yokkaichi City and other venues.
Internet address: http://www.nttls.co.jp/mie-pref.
Kansai in Focus: ED Contrive makes novel floppy disk-related devices under unique management
This is the second in a series of profiles on innovative Kansai-area companies.It takes a look at ED Contrive Co., headquartered in Ibaraki City, Osaka Prefecture.The firm, capitalized at ¥285 million and with 120 employees, specializes in developing peripheral equipment related to floppy disks.Like so many venture businesses, it derives its uniqueness from the strong personality and management style of its founder-president Ayumu Kawai.
Kawai, a high school dropout, became a salesman for a trading company specializing in floppy disks (FDs) at the age of 19.After teaching himself about the products he was selling, he developed a process to prevent the unauthorized copying of floppy disks.He soon became the firm's top salesman by offering extra technical support services to his customers.He left the firm to start ED Contrive in 1986, when he was only 21.Although the new business initially centered around his first invention, within a year Kawai developed a new product: a high-speed copying device for copying data stored on an FD in 27 seconds, about one-third the time required by existing equipment.As a result, ED Contrive was able to land contracts with a number of software developers.In 1988, Kawai introducedits DIX, the world's first data transfer device for FDs, which earned it widespread recognition for its innovative R&D capabilities.DIX permits information contained on an FD to be transmitted via telephone and ISDN lines like an ordinary fax.The device has won numerous accolades from the media and organizations promoting new businesses.Another aspect of ED Contrive that is attracting attention is its original management style.All employees having at least one year of experience with the company are eligible to win a seat on the board if they receive the support of 70% of the company's workers, and indeed the nine members (including President Kawai himself) currently serving on ED Contrive's board became directors in this way.
Another noteworthy feature is the way the company motivates its employees to develop new business ideas.The company's PD (Project Drive) system encourages employees to come up with proposals for new projects.If an idea is approved by the board, project members are recruited from inside and outside the company to work toward its realization.If the project becomes profitable, 25% of the profit is divided among project members.If, on the other hand, a project loses money for six months and there is little likelihood of its turning a profit in the future, it is simply terminated.The company is presently pursuing 16 such employee-inspired projects.A venture business is an arena in which creative individuals seek self-realization by turning their ideas into reality.President Kawai's efforts to share that arena with his workers gave birth to his democratic management style.Since last year, ED Contrive has been active in multimedia-related projects, such as putting an electronic weekly magazine on the Internet and testing an interactive communications service using high-function TV phones as terminals.This group of brainy young achievers, the average age of which is 31, aims to achieve such self-realization through exciting, original work.