Shizuoka Prefecture: Where More Foreign-Affiliated Companies Establish Plants, New Industry Clusters | Print |
Session I: Perspectives on Regional Opportunities and Business Strategy
  • Mr. Masachika Suzuki, Chairman of the Board of Directors, Shizuoka Prefectural University Corporation; former Lieutenant Governor, Shizuoka Prefecture

Mr. Suzuki outlined the main characteristics of Shizuoka Prefecture that make it an attractive location for foreign companies like Molex, Corning, Chelsea, and others to locate their business there. Some of the main reasons are that Shizuoka is:
  1. Centrally located in Japan and has an excellent transportation infrastructure that allows easy access to major cities
  2. A leading manufacturing prefecture with companies excellent for partnering advanced technologies and accumulated expertise
  3. The prefecture where more foreign-affiliated companies establish a plant 4. Currently developing three industrial clusters
  4. Offering a very attractive incentive program for foreign companies looking to locate in Shizuoka

Strategic central location, excellent transportation infrastructure
Shizuoka is a port city located on the middle of Japan’s Pacific coast and conveniently located near the major markets of Tokyo, Nagoya, and Osaka. The Prefecture features a sophisticated transportation and logistics system, which include the Tokaido Shinkansen, also known as the bullet train, the Tomei Highway, and Shimizu and Omaezaki International Ports. In addition, construction is underway for the second Tomei Highway, and a new international airport the Mount Fuji Shizuoka Airport is due to open in March 2009, offering easy access to major cities in East Asia.

Some quick facts on Shizuoka Prefecture:
  • Eighty million people reside within a 200-mile radius of Shizuoka City, accounting for 63% of Japan’s total population. GDP within this area is US$3.3 trillion, representing 68% of Japan’s total
  • Tokyo and Nagoya are only one hour away by Shinkansen and two hours by car
    Total population of the Prefecture is 3.8 million, about 3% of Japan’s total and ranks tenth out of the 47 prefectures
  • Product shipment of value is over US$170 billion and ranks third out of all prefectures, making Shizuoka a leading industrial prefecture
  • Per capita income is about US$32,000, which ranks third among Japan’s prefectures, and has been growing over the past ten years

Manufacturing industry
Among Shizuoka’s major industries, transportation equipment accounts for 30% of the total value of product shipment. Large electrical machinery accounts for 10% of total product shipment value. Chemicals and general machinery follow with 7.8% and 7.2%, respectively. The prefecture’s abundant water resources have attracted many food and beverage companies, making Shizuoka the number one prefecture in product shipment value for food and beverages in Japan.

Largest number of foreign-affiliated plants
The number of foreign-affiliated plants located in Shizuoka Prefecture has been the largest in Japan since 1989. It has also been a top location, ranked 1st or 3rd, for land acquisitions in the past several years.

New industry clusters
Shizuoka Prefecture is working to develop three business clusters—called Pharma Valley, Food Science Hills, and Photon Valley—to nurture key industries and leverage local resources.

Pharma Valley will nurture a concentration of advanced health, medicine, and wellness companies. A main figure in this cluster is the Shizuoka Cancer Center, which opened in 2002 at the foot of Mount Fuji and has become one of the top hospitals in Japan for testing and performing top medical treatments and services. In 2005, a research institute was also established in the Cancer Center.

Food Science Hills will focus on the food, medicine, and chemical industries. Shizuoka’s mild climate and abundant water resources make it a great location for companies in these industries. Many food processing companies are already concentrated in the central region of Shizuoka prefecture. Advanced research in the life sciences is being conducted at the University of Shizuoka, Shizuoka University, and Tokai University. These universities are working together with the Industrial Research Center of Shizuoka Prefecture to develop functional foods and medicines aimed at improving quality of life and treating lifestyle related diseases.

Photon Valley will support the concentration of optical electronics companies in the western region of Shizuoka Prefecture. In addition to optical electronics technologies, led by the world-leading Hamamatsu Photonics, other main industries in this area of Shizuoka are automobiles, musical instruments, and textiles.

Incentive programs for foreign-affiliated companies
Shizuoka Prefecture offers qualified companies the following incentives for locating in the prefecture:
  • Plants located in Shizuoka Prefecture may qualify for a subsidy of up to $4.5 million
  • For land acquisitions and employment, a subsidy up to $1.8 million may be provided

For more information about these incentives, available land, legal and other business expertise, and general questions about life in Japan, contact the Shizuoka Prefecture Business Development Office or the One-Stop Service Center of the Shizuoka International Business Association.

Final tidbit: Shizuoka is ranked as the first and second place that Japanese people would most like to live. And there are many historical spots as well as cultural and educational facilities, including an international convention center and 28 universities and colleges.

During the Session I Q&A period, Mr. Johnson noted the reasons Molex decided to open a plant in Shizuoka Prefecture in 1983 and why it is planning to expand the plant:
  1. Due to the earthquake risk in Japan, Molex wanted to disperse its manufacturing locations.
  2. Shizuoka is very centrally located, making it easy for Molex to ship products to other parts of Japan.
  3. Shizuoka is by water, which is key for Molex’s plating facility.
  4. And most importantly, Molex sought the quality of the workforce in Shizuoka. “We’ve been very happy with Shizuoka, and we’re looking at expanding there,” said Mr. Johnson. “Shizuoka to us is going to be the first plant within the Molex Japanese plants that’s going to actually service two of our divisions: automotive and consumer.”

Want more information about opportunities for your business in Japan?
Contact us


Note: The above summary is an adaptation of the speaker’s presentation. Contents and quotes may not be entirely accurate.