Overseas AP Business

Operating businesses rooted in individual countries and regions

The requirements for architectural products such as windows, doors, and curtain walls differ from country to country and region to region due to varying climates, cultures, and other factors. Since establishing our first overseas company in Singapore in 1976, we have conducted business operations by extending roots into the local communities to deliver products and services that meet their needs. In FY 2020, we restructured 16 overseas companies in 11 countries and regions. By focusing capital and business operations in YKK AP, we will further accelerate management. With YKK Founder Tadao Yoshida's encouragement to "become part of the local community" in our hearts, we will take the monozukuri capabilities we built in Japan and deploy them worldwide.

Business strengths

Global businesses established in 11 countries and regions, including the U.S.A., China, and Asia
Product development, localized manufacturing and sales system suited to the climate, customs, and culture of each country or region
Technology and manufacturing support system from Japan

Challenges

Global response capabilities in Japan's headquarters functions(compliance, risk management, governance)
Enhance sales, customer relations, and business processes by further establishment of business model in growing China and Asia markets
Build management systems for stable, sustainable growth by establishing recruitment, training, and enhancement programs for local management candidates

Focus themes

Further expansion of existing business and entry into new business areas in the U.S.A.
Enter middle- and high-end markets by reforming our cost structure in China
Rebuild the business model and develop new channels in the Taiwan, ASEAN, and South Asia regions to achieve additional growth

FY 2020 Summary

Overall, our business operations were heavily impacted by the COVID-19 pandemic. In the U.S.A., the market for commercial buildings dipped significantly, but we were still able to achieve record high sales thanks to an increase in new housing starts. In China, the impact of the pandemic was controlled quickly, but sales remained mostly unchanged year-on-year due to a slump in the ultra-high-end real estate market that we are targeting. We regained our share of the high-end residential market in Taiwan, but worksite delays due to labor shortages resulted in a slight year-on-year decrease in sales. Conditions in the residential market were particularly harsh in the Asia region, but we were still able to achieve 100% of the previous year's overseas sales overall thanks to contributions from Erie Architectural Products in Canada.

Mid-term priority measures

We expect uncertainty to continue in FY 2021 due to the effects of COVID-19 in North America and Asia and a downturn in the targeted super-luxury real estate market in China. Against this backdrop, we will implement "growth strategies targeting 100 billion yen in sales" in the 6th Mid-term Management Plan. In addition to growth centered on North America and China, we will work to grow the business, develop new markets, and promote new businesses in Asia as well as develop talent to support our overseas business.
With the restructuring of overseas companies' capital and changes to the business management system, we will work with the management divisions to strengthen YKK AP's global governance system. On the business promotion front, we will work to improve the speed of our overseas companies' businesses by partnering with the Manufacturing Division to build manufacturing and supply systems for overseas companies and partnering with the Research & Development Division to develop new products for new target markets.

Corporate officer's commitment

We have now grown to have a presence in 11 countries and regions, employing over 4,000 people overseas. In order to deliver products to the customers that are tailored to the climate, culture, and needs of the various countries and regions, we place manufacturing sites and product development functions in each region to develop, manufacture, and sell products that meet those regions' needs. For example, the YKK AP R&D Center in Indonesia researches windows and doors as well as passive design suited for climates, cultures, and construction in hot and humid areas mostly in Southeast Asia. We reflect the results of these efforts in our products as we provide the social value of improved living environments for even more customers through windows and doors.

Vice President
International Business

Tetsuya Onodera

YKK AP