METI to Keep Supporting Manufacturers in Northeast Japan

Ministry of Economy, Trade and Industry launches special support package for manufacturers and small companies in northeast Japan when the area struggles to recover from damage by the major earthquake. METI continues the support for fiscal 2012 starting April as additional budget in fiscal 2011. METI also tries to support the areas’ international competitiveness of manufacturers including steel and automobile industry.

METI’s director general of Tohoku Bureau Koji Toyokuni said to a reporter of Japan Metal Bulletin METI keeps supporting the areas’ rebuilding activity. He said METI also supports competitive manufacturing base in the area. He showed expectation for better global competitiveness by consolidations including JFE group’s electric furnace steel makers’ merger and integration of Nippon Steel and Sumitomo Metal Industries. Japanese government tries to rebuild the damaged area in coming 5 years.

The government provides working capital and subsidiary to corporate group along with support for companies with heavy loan. METI also provides advice to small companies to utilize support package by the government.

METI tries to establish stronger supply chain of steel and materials and automobile and manufacturers in the area. The Tohoku bureau targets local companies’ parts supply increases to 80% of procurement by the local automobile plants especially for hybrid vehicle and next generation vehicle by 2020.