Japanese Manufacturing Affiliates in Europe and Turkey

106 Pages·2005·1.23 MB·English

05-ORD
70H-002AA
6

Japanese Manufacturing Affiliates
in Europe and Turkey

- 2004 Survey -

September 2005

Japan External Trade Organization
(JETRO)
Preface

The survey on “Japanese manufacturing affiliates in Europe and Turkey” has been conducted 21
times since the first survey in 1983*. The latest survey, carried out from January 2005 to February
2005 targeting 17 countries in Western Europe, 7 countries in Central and Eastern Europe, and
Turkey, focused on business trends and future prospects in each country, procurement of materials,
production, sales, and management problems, impact of EU enlargement, etc.

The survey revealed that as of the end of 2004 there were a total of 989 Japanese manufacturing
affiliates operating in the surveyed region --- 814 in Western Europe, 160 in Central and Eastern
Europe, and 15 in Turkey. Of this total, 259 affiliates --- 252 in Western Europe, 6 in Central and
Eastern Europe, and 1 in Turkey ---also operate R & D or design centers. Also, the number of
Japanese affiliates who operate only R & D or design centers in the surveyed region (no
manufacturing operations) totaled 116 affiliates --- 111 in Western Europe and 5 in Central and
Eastern Europe.

The business environment in Europe including Central and Eastern European countries has
changed dramatically since the EU Enlargement of May 1, 2004. In this survey we put emphasis on
the impact of EU enlargement on Japanese manufacturing affiliates.

We would like to express our great appreciation to the affiliates concerned for their kind
cooperation, which have enabled us over the years to constantly improve the survey and report on
the results. We hope that the affiliates and those who are interested in business development in
Europe and/or Turkey will find this report useful.

August 2005

Europe Division
Middle East and Africa Division
Overseas Research Department
JETRO centers/offices in Europe and Turkey
Japan External Trade Organization (JETRO)

* Countries in Central and Eastern Europe and Turkey were included in the survey from 1998 and
1999 respectively.
Table of Contents

Overview of the Survey··························································································1
Overseas Production Bases of Japanese Manufacturing Affiliates (map) ················2
Year of Establishment of Japanese Manufacturing Affiliates in Europe and Turkey
(by Country)············································································································3
Number of Japanese Manufacturing Affiliates in Europe and Turkey by Country
and Industry···········································································································4
Number of Japanese Manufacturing Affiliates in Europe and Turkey Having R & D
and Design Centers·································································································5

Western Europe······································································································7
Ⅰ．Overview of Japanese Manufacturing Affiliates in Western Europe························9
Ⅱ．Business Conditions and Prospects of Japanese Manufacturing Affiliates in
Western Europe·····································································································12
Ⅲ．Procurement, Production, and Sales·······································································13
Ⅳ．Management Problems···························································································19
Ⅴ．EU Enlargement·····································································································21

Central and Eastern Europe················································································25
Ⅰ．Overview of Japanese Manufacturing Affiliates in Central and Eastern Europe···27
Ⅱ．Business Conditions and Prospects for Japanese Manufacturing Affiliates in
Central and Eastern Europe···················································································29
Ⅲ．Procurement, Production and Sales ······································································31
Ⅳ．Management Problems···························································································36
Ⅴ．EU Enlargement, etc. ····························································································39

Turkey ·······························································································································43
Ⅰ．Overview of Japanese Manufacturing Affiliates in Turkey····································45
Ⅱ．Business Conditions and Prospects for Japanese Manufacturing Affiliates in Turkey
·························································································································45
Ⅲ．Procurement, Production, and Sales ·····································································46
Ⅳ．Management Problems···························································································49
Ⅴ．EU enlargement and the rise of the euro································································50

Appendix
List of Japanese Manufacturing Affiliates in Europe and Turkey
Manufacturing Affiliates (by country) ······························································53
Manufacturing Affiliates (by industry) ·····························································93
Japanese Manufacturing Affiliates Concurrently Having R & D and Design
Centers on their Premises and Independent Companies (by country)·············115
Overview of the Survey

This is the 21st of a series of surveys conducted annually since 1983 by JETRO centers and
offices based in Europe and Turkey.

1. Purpose of the Survey
The survey analyzes the activities of Japanese manufacturing affiliates in Europe and Turkey.
The results are published in the form of a reference work to help facilitate local business activities
(drawing up a future management strategy, for instance) or the entry of Japanese manufacturing
enterprises in Europe and Turkey.

2. Targets of the Survey
The survey targeted manufacturing companies in 17 countries in Western Europe (15 members
of the EU, Norway and Switzerland), 7 countries in Central and Eastern Europe, and Turkey.
These companies derive 10% or more of their financing from Japanese companies, both directly
and indirectly. Survey recipients also include companies (subsidiaries) set up by Japanese
affiliates already operating in Europe or other regions, and companies that have completed local
corporate registration but not yet started operations.

3. Methods of the Survey
We sent by e-mail to the respondents an Internet link (URL) to the online questionnaire form
and asked them to reply directly on line. We also sent questionnaire sheets by mail or facsimile for
some respondents and included their answers in the tabulated results.
With this survey on the number of companies operating overseas by country and industry, we
endeavored to learn as far as possible the exact number of Japanese affiliates that had entered into
or withdrawn from the surveyed regions since the previous (20th) survey. In the process, we added
or deleted Japanese affiliates that had been established or withdrawn before 2003 but that we had
been unable to access at the time of the previous survey.

4. Period of the Survey
January through February 2005

5. Response status
Of 989 Japanese manufacturing enterprises whose entry into Europe or Turkey had been
identified, we sent the Internet link (URL) to the questionnaire form by e-mail to the 630
enterprises that agreed to cooperate in the survey (some questionnaire forms were also sent by
mail or facsimile), and received valid responses from 339 companies (response rate of 53.8%).

6. Notes on the survey results
Not all the respondents answered all the questions. The percentage figures in this report are
calculated using the number of respondents who actually answered a specific question, and
rounded to two decimal places. The percentages do not necessarily add up to 100.0%.
－1－
Overseas Production Bases of Japanese
Manufacturing Affiliates
As of the end of 2004
Europe and Turkey (989)
Western Europe (814),
Central and Eastern Europe (160),
and Turkey (15)

Figure: Japanese manufacturing affiliates
Basis: 10% or more of financing
from Japanese companies

Finland
Source: Survey by JETRO offices in Europe and Turkey 6
Norway
1
Sweden
15
Denmark
8
Ireland UK Lithuania
21 248 1
Poland
The Netherlands
36
54
Germany
Belgium 41 103 Czech Republic 62
Slovakia 9
Luxembourg 2
Switzerland 2 Austria Hungary 42
10
Romania 9
France
146
Serbia and Montenegro 1
Italy
67
Portugal
18 Spain
Turkey
68
15
Greece
4

－2－
2004 year end 2481461035441221686761158101824 8143662942911 16015 989 31 3.2 are the
e)
2003 ear end 2451451005441221666561158101824 8033153838911 14114 958 35 3.8 d befor
y n
2002 year end 239145965441221656461146101824 7882446835711 12213 923 44 5.0 ar (2003 a
by Country)20002001 year endyear end 232236141143909553544141222020626360634511131446101017172233 75577515191931682831351 719589 834879 4445 5.65.4 gures for each ye
urkey (1999 year end 21613490534122060594112491723 72715154201 558 790 42 5.6 ment; the fi
and T1998 year end 20213187493922058574111491713 69511134161 458 748 42 6.0 stablish
es in Europe 19961997 year endyear end 180189120123848543463739221819535552543411111348915151133 63366058101334913 273878 667706 4939 7.95.9 mpanies)by year of e
uring Affiliat19941995 year endyear end 156165991087480373935372215185051454922 1010338812141133 55259014781168 152167 573618 3145 5.77.9 d of 2004 (989 co －
apanese Manufact199119921993 year endyear endyear end 12914014983869064707231343532343522213141544454740404211 78103335889111211333 4655005251157 223 3711566 473513542 424029 9.78.55.7 g in the regions as of the en design centers. －3
ishment of J19891990 year endyear end 10312169774959252525301191135393038 66235579 33 369427 34 372431 7459 24.815.9 g affiliates operatin ependent R & D or
establ1988 year end 7958352020 63126 5156 3 295 3 298 43 16.9 ufacturinear. d not ind
Table 1: Year of 198519861987 year endyear endyear end 374962UK 364350France262832Germany161717Netherlands161718Belgium Luxembourg455Ireland212528Spain202122Italy Finland Norway345Sweden111Denmark355Austria455Portugal Switzerland 333Greece 190223253 Western Europe Poland Czech Republic Slovakia Hungary Romania Lithuania Serbia and Montenegro Central & Eastern Europe 112Turkey 191224255Total Number of Companies203331Established within the YearIncrease over the11.717.313.8previous year (%) [Note] The table indicates the number of Japanese mannumber of companies operating as of the end of each y　　 The figures only indicate manufacturing bases an
yekruT 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 3 9 0 1 5
1
orgenetnoM dna aibreS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1
ainauhtiL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1
ainamoR 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 4 0 2 9
)
4
0
f 20 yragnuH 2 0 0 0 0 0 0 2 0 0 1 0 0 2 1 1 4 10 1 13 2 3 42
o
d aikavolS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 4 0 3 0 0 9
n
e
he cilbupeR hcezC 0 1 0 0 0 0 0 1 2 0 0 2 1 0 2 3 3 7 1 33 1 5 62
t
f
s o dnaloP 1 0 0 0 0 0 0 0 0 0 5 2 0 1 0 7 0 3 0 14 0 3 36
a
y ( latoT eporuE nretsaE & lartneC 4 1 0 0 0 0 0 3 2 0 6 4 1 3 5 1 9 5 2 8 3 3 0
tr 1 2 6 1 16
s
du eceerG 0 0 0 0 0 0 0 1 0 0 0 0 1 0 1 0 0 0 0 0 0 1 4
n
nd I dnalreztiwS 1 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2
a
ry lagutroP 0 1 0 0 0 0 0 4 1 0 1 0 0 0 3 0 1 1 2 3 0 1 8
t 1
n
u
o airtsuA 0 0 1 1 0 0 0 2 1 0 0 0 0 0 0 2 0 0 0 0 1 2 0
C 1
y
y b kramneD 2 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 2 0 0 0 3 8
e
rk nedewS 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 4 1 3 1 3 1 0 5
u 1
T
nd yawroN 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
a
pe dnalniF 0 0 0 3 0 1 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 6 －
o
Eur ylatI 1 3 2 0 0 0 0 0 0 4 1 1 0 0 1 2 2 6 1 5 1 7 7 －4
n 1 1 1 6
s i niapS 3 1 0 0 0 0 0 0 2 2 2 2 1 2 5 2 5 4 6 4 0 7 8
e 1 1 6
t
a
g Affili grudonbamleerxIuL 00 00 00 00 00 00 00 11 00 06 02 00 00 00 01 02 02 16 00 00 00 01 221 nters.
n ce
ri n
anufactu sdmnaulirgelheBteN 41 10 00 00 00 10 10 1212 42 14 11 04 10 10 20 53 11 64 20 25 40 54 5441 & D or desig
M R
se ynamreG 3 1 0 0 0 5 0 12 0 5 1 2 1 2 0 27 5 14 1 8 9 7 103 dent
e n
pan ecnarF 20 0 6 0 1 0 0 24 1 7 5 1 0 2 2 7 10 13 3 16 15 13 146 ndepe
of Ja KU 10 1 7 0 0 1 0 32 5 4 3 5 0 2 12 26 27 21 5 49 17 21 248 clude i
mber latoT eporuE nretseW 45 8 16 5 1 8 1 125 16 34 17 15 4 9 27 90 55 82 21 115 48 72 814 es not in
u do
　N latoT 50 9 16 5 1 8 1 128 18 34 24 19 5 12 32 101 64 107 26 192 51 86 989 s and
2: ase
ble ng b
Ta Food products, agricultural andproduct processingfisheries Textiles (yarn/woven material) Clothing/textile productsTimber/wood products(excluding furniture/interiorproducts)Furniture/interior products Paper/pulp Printing/publishing Chemical/petrochemical products Plastic products Pharmaceutical products Rubber products Ceramics, soil and stone Iron and steel Nonferrous metal Metal products General machinery Electric machinery Electric and electronic parts Transportation machinery Transportation machinery parts Precision machinery Other manufacturing Industry Total [Note] Only indicates manufacturi
4 nd 52) 12) 25) 4) 4) 2) 6) 3) 3) 111) 1) 1) 2) 1) 5) 116) 3) 2.7)
200 year e 124( 66( 45( 21( 23( 13( 34( 22( 2 96(33 1 363( 2( 3( 3( 3( 11( 1 375( 5( 1.4(
3 nd 49) 12) 25) 4) 4) 2) 6) 3) 3) 108) 1) 1) 2) 1) 5) 113) 2) 1.8)
nters 200 year e 121( 66( 44( 21( 23( 13( 33( 22( 2 96(33 1 358( 2( 3( 3( 3( 11( 1 370( 8( 2.2(
e
C
d Design 2002 year end 118(48) 66(12) 41(24) 21(4) 23(4) 13(2) 33(6) 22(3) 2 95(3)33 1 351(106) 2(1) 2(1) 3(2) 3(1) 10(5) 1 362(111) 6(3) 1.7(2.8)
n
a
g R & D 2001 year end 116(47) 65(12) 41(24) 21(4) 23(4) 13(2) 33(6) 22(3) 2 94(2)33 1 347(104) 2(1) 2(1) 3(2) 1 8(4) 1 356(108) 12(9) 3.5(9.1)
n
urkey Havi 2000 year end 108(39) 65(12) 41(24) 20(4) 23(4) 13(2) 33(6) 22(3) 2 83(2)33 1 336(96) 2(1) 1 3(2) 1 7(3) 1 344(99) 13(4) 3.9(4.2) h laboratories.
d T earc
Europe an 1999 year end 102(36) 62(12) 40(23) 20(4) 23(4) 13(2) 31(6) 22(3) 2 73(2)33 1 323(92) 2(1) 1 3(2) 1 7(3) 1 331(95) 11(7) 3.4(8.0) porations or res
Affiliates in 1998 year end 98(33) 61(12) 40(23) 20(4) 22(3) 12(1) 30(6) 21(3) 2 72(1)33 1 313(86) 2(1) 1 2(1) 1 6(2) 1 320(88) 15(7) 4.9(8.6) s independent cor －5－
acturing 1997 year end 91(28) 58(11) 40(23) 20(4) 22(3) 12(1) 29(6) 21(3) 2 72(1)33 1 302(80) 1 1(1) 2(1) 1 305(81) 16(7) 5.5(9.5) e that exist a
uf hos
ber of Japanese Man 19961995 year endyear end 8284(23)(24) 5156(9)(10) 3940(23)(23) 1518(3)(3) 2020(3)(3) 1122(1)(1) 2728(4)(5) 1920(3)(3) 12 7711(1)(1)3333 11 272286(70)(73) 1 11(1)(1) 12(1)(1) 11 274289(71)(74) 1515(6)(3) 5.85.5(9.2)(4.2) d by manufacturers as well as t dent R & D and design centers.
m e n
n e
u w p
　Table 3: N 1994 year end 78UK(22) 47France(6) 36Germany(21) 15Netherlands(3) 20Belgium(3) 1Luxembourg 2Ireland(1) 26Spain(4) 17Italy(3) 1FinlandNorway7Sweden1Denmark(1)3Austria 2Portugal Switzerland 1Greece Western Europe257(64) Poland Czech RepublicSlovakia1(1)Hungary Romania Lithuania Serbia and MontenegroCentral & Eastern1(1)peEuro1Turkey Total259(65) Increase over the previous14(2)yearIncrease over the previous5.7(3.2)year (%) (Note) The table includes centers that are o 　　The numbers in brackets indicate inde
Western Europe
I. Overview of Japanese Manufacturing Affiliates in Western Europe
--- The number of Japanese manufacturing affiliates has reached 814.

[Number of Japanese manufacturing affiliates in Western Europe]
･ The number of Japanese manufacturing affiliates in Western Europe at the end of 2004 was 814, higher
by 11 companies from the end of 2003.
[By country]
･ The biggest presence is in the UK with 248 companies, followed by France (146 companies) and
Germany (103 companies). These three countries account for 61.1% of all Japanese manufacturing
affiliates in Western Europe.
[By industry]
･ Chemical/petrochemical products (125 companies or 15.4% of the total), transportation machinery parts
(115 companies or 14.1%), general machinery (90 companies or 11.1%), and electric and electronic parts
(82 companies or 10.1%).

1. Advance of Japanese Manufacturing Affiliates into Western Europe Slowing
The latest survey (as of the end of 2004) showed there were 814 Japanese manufacturing affiliates in
Western Europe [See Diagram 2-1]. This is an increase of 11 companies from the end of 2003.
By country, the UK had the most affiliates (248 companies), followed by France (146 companies),
Germany (103 companies), Spain (68 companies), Italy (67 companies), the Netherlands (54 companies),
and Belgium (41 companies). A total of 497 companies in the UK, France and Germany account for
61.1% of the total affiliates in Western Europe.

Diagram 2-1: Development of Japanese Manufacturing Affiliates in Western Europe
TThhee nnuummbbeerr ooff aaffffiilliiaatteess aass ooff tthhee eenndd ooff eeaacchh ccaalleennddaarr yyeeaarr
(Companies)
900
803 814
800 755 775 788
700
727
695
600 660
500 552 590 633 463 474 480 490 497
525
500
400 369 427465 420 440
300 223253 295 329 353384 397
190 276 296 311
200 257
221
172
100 144
120
99
0
5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4
8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0
0 0 0 0 0
2 2 2 2 2
Japanese manufacturing affiliates in Western Europe
UK, France and Germany
(Source: JETRO Survey, Japan External Trade Organization)
－9－