YKK’s New President Insists Business Expansion in Asian Market

YKK Corporation’s new president, Masayuki Sarumaru attended a press conference in Tokyo on Thursday and insisted the corporation’s intention to focus on the sales increase in Asian market. YKK aims to follow the domestic market growth of China and the current trend to shift sewing plants to Southeast Asia. Then the corporation targets to increase the net sales by 4.6% to 236.3 billion yen in fiscal 2011 ending in March 2012 from the previous financial year while targets to raise the operating profit by 7% to 36.3 billion yen.

Mr. Sarumaru pointed out YKK should maintain the sales and the profits in advanced countries including Japan, the U.S.A. and Europe while the corporation’s new growth will be realized by the business expansion in Asia where competitions are very tough while the large market growth is expected. YKK tries to enhance the products for Chinese domestic market and expand the production capacities in ASEAN and South Asia.

YKK announced in March the company invests 14.2 billion yen to Asian market in fiscal 2011, 54% of the corporation’s total full-year capex plan. The corporation appropriates 8.8 billion yen to East Asia including China and 5.4 billion yen to ASEAN and South Asia. The corporation has already decided expansion of Dacca plant in Bangladesh.

Mr. Sarumaru also referred to the necessity to raise human resources including Japanese staffs to support local operations in Asian countries.