20 years since the establishment of Takamatsu Machinery (Thailand) The importance of putting down roots in Thailand

08/09/2023

Samurai Asia Editorial Department

Takamatsu Machinery Co., Ltd., a CNC precision lathe manufacturer specializing in high-precision machining, entered Thai market in 2003, shortly after the start of the 21st century. It was a time when Japanese automakers and parts suppliers crossed the sea in search of new markets. Twenty years later, the Thai subsidiary, Takamatsu Machinery (Thailand) (hereinafter referred to as Takamatsu Machinery Thailand) has built a strong network in the Thai market and has even established a branch in Eastern Seaboard on the border of Rayong Province in the east. In this article, we asked Mr. Kiyoshi Takamatsu, Chairman of the Board of Directors of the Head Office, and Mr. Eiji Yamashita, MD of the Thai subsidiary, to look back on the progress made during this period.

Importance of the local maintenance services in Thailand

▲Mr. Kiyoshi Takamatsu, Chairman of the Board of Directors of Takamatsu Machinery Co., Ltd.

Chairman Takamatsu: The early 2000s was a time when automakers from Japan brought their supply chains to expand overseas. In Thailand, pickup trucks were in great demand, and the market looked promising and attractive. Many wanted to use the same machine (tools) in Thailand that they use in Japan. As a machine tool manufacturer, the expectations placed on us were also very high.

However, it was not that easy to just go with the flow and expand into Thailand and everything would work out. While it is certainly important to supply machines locally, it is even more important for customers to know that the machines will continue to work properly all the time. The most important thing they wanted from us was the peace of mind of knowing that the machines would be well maintained locally (in Thailand).

In October 1995, we established a representative office in Thailand, and in August 2003, our local subsidiary, TAKAMATSU MACHINERY (THAILAND) CO., LTD. I will never forget what our customers used to say to me when I was visiting Thailand on business trip basis: "It's fine to buy machines, but what if you (Takamatsu Machinery) disappear?” Since then, I have repeatedly said that it is necessary for the company to put down roots locally (in Thailand). Twenty years have passed with our customers. I feel that we have finally gained their trust.

Gaining customer trust through enhanced engineering services

▲Mr. Eiji Yamashita, MD, TAKAMATSU MACHINERY (THAILAND) CO., LTD.

MD Yamashita: I was appointed in April 2017, and I am the fourth MD of the Thai company. At the time, the Thai market was on an upward trend, and Takamatsu Machinery Thailand achieved record sales from 2017 to 2018. We had naïve hopes that the company would be able to sustain this strong performance, but the following year, the Thai economy took a turn for the worse and entered a period of stagnation. Unlike Japan, the Thai market is intricately intertwined with various factors such as the natural environment and political situation. I spent many days worrying about how to decipher the situation.

Then, from March 2020, the COVID pandemic was all over the place. Not only the automotive industry, but the whole market cooled down suddenly. The call for a "repeat of 2017-2018" resonated in vain at this juncture. In times like these, I recognized the need to return to the basic and reaffirm the idea that "just selling machines is not enough."

Technology has improved, and nowadays the performance and capabilities of each product, such as lathes, are much the same. If what can be done is the same, what do customers want? We thought hard about this. There was only one answer: to improve the quality of our maintenance and inspections, in other words, to strengthen our engineering capabilities. The heartfelt services with human relations. During the pandemic, we focused our efforts on strengthening this. It's all about gaining the trust of our customers.

A Thai company by Thai people

Chairman Takamatsu: It has been 20 years of ups and downs, just like the economic boom and bust, but it was the many Thai staff members who supported the company. As there was a language barrier, I was worried and anxious in the beginning. But guess what? The Thai staff were very dexterous. I was impressed by the attitude of studying the difficulties of maintenance and upkeep on their own before we teach them.

We were also able to develop a system and structure for nurturing successors during this time. If technique and know-how are concentrated in the hands of a handful of individuals, there will be no next generation. Mentoring of successors is an indispensable task so that we can continue to provide the same level of service even as the generations change.

And eventually, my main goal is to create a Thai company managed by Thai people that can operate without Japanese personnel’s and can keep the company running. Of course, it is fine to acquire the necessary knowledge and skills through training in Japan, but I think it is essential to have Thai management to be accepted by Thai society.

▲From left: MD Yamashita, Chairman Takamatsu, and General Manager Karaki of Overseas Sales Dept.

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