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Investment Guide to Tohoku

Rohm and Haas Japan K.K., Soma Plant :Fukushima Prefecture

Technological Excellence of Soma Plant is Welcome in the World Market.

Soma Core Industrial Park, located in Soma City, Fukushima Prefecture, boasts of being the largest industrial park in Japan. The location is divided into two: the eastern area, close to the sea, and the western area inland. In 1993, Rohm and Haas Japan K.K. opened its Soma Plant in the east area. For its operations producing ion exchange resins, the site location is ideal because of its environment based on abundant water resources. Overlooking the Pacific, plant manager Futoshi Yamashita talks about his aims of leading the plant become a world front-runner.

Plant manager: Futoshi Yamashita

Ion Exchange Resins' Production Base in AsiaRooted in US Life

Rohm and Haas Company was established in Philadelphia, PA, in 1909 by Germans Otto Rohm and Otto Haas. It was the first step of the now world-famous American chemical company. In 1940s, development of acrylic resin products accelerated and marketing of the products, including coatings and plasticizers, also expanded. Further, the market for ion exchange resins—their market share of them is now the biggest in the world—was born that time.

They are running business in various areas such as: "Coating division" including acrylic emulsion, powdery paint, paint for plastic parts of automobiles, "Adhesives and sealants division" which is used in a wide range from packaging to auto-related industry, "Electronic materials division" used for semiconductor lithography and surface-treated substrate plating process, "Performance chemicals division" including plastic additives, biocides, ion exchange resins, and others. Now they have more than one hundred production plants and R&D facilities in 27 countries around the world.

In 1976, Rohm and Haas Japan K.K. was established in Tokyo as a base in Asia. "Its object was to produce ion exchange resins in Japan—the only developed country in Asia at that time. Although the ion exchange resins had been broadly produced in North America and Europe for the last seventy years, they were not known in Japan at that time," Mr. Yamashita explains.

Central Operations Room

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Keys to Coosing a Location Were to Secure Abundant Water Resources and the Enthusiasm of the Local People

Soma Plant, as a pioneer of this product, is developing and producing high-end ion exchange resins. "Ion exchange resins are used to refine industrial water or tap water, transforming it into ‘pure water’ or ‘ultra pure water.’ In other words, tools for removing impurities in supplied water. They are used in semiconductor plants and nuclear power plants, which require vast amounts of ultra pure water. Perhaps importantly for you, they are used for foods, drinking water, and in medicines. Although the taste of drinking water may differ from place to place, one can commercialize juice that has the same taste every site by using pure water refined by ion exchange resins."

In 1990 the company was making ion exchange resins in its Tokyo plant. At that time, demand for semiconductors, and thus ion exchange resins, in Asia was expected to rise. Because the Tokyo Plant was considered to be too small to meet such demand, the company planned to move the plant.

"We screened several candidate sites in Fukushima and Niigata Prefecture in Tohoku that offer good water quality. Finally we determined to come to the eastern area of Soma Core Industrial Park where abundant industrial water can be secured," says Mr. Yamashita. "On the very day our business mission visited, a typhoon struck. The officials of Soma city kindly received us in such a storm. In addition to abundant water resources, we were attracted and felt convinced that we could have good relationship with Soma city." Their hosts’ enthusiasm was one of the key factors that persuaded the company to transfer its plant to the current site.

After the decision had been made, the company acquired a factory site in 1992, and started operation of Soma Plant in November 1993. Beside Soma Plant, the company has production plants in four other countries: America, France, England, and China. Among them, Soma Plant is expected to be their "technology dispatching base." In a map of semiconductor-related businesses in Asia, Japan possesses the leading technologies in this area, so stable supply of high quality ion exchange resins is essential. Soma Plant is specialized in highly value-added products. With strong technological competitiveness and abundant business expertise, it is making efforts to develop better products to increase customer satisfaction further. In November 2005, its research and application division, the Japan Technical Center, in Kanagawa Prefecture, Tokyo Metropolitan Area, is expected to be incorporated into Soma Plant, making a base with an integrated system covering development to manufacturing and sales. Because of such a strategy of Soma Plant as developing new technologies, other plants overseas highly estimate new challenges of Soma Plant.

Ion exchange resins

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Aiming at Becoming a Prestifious Local Plant, Focusing on a Good Relationship with the Local Community

Forty-five staff are employed at Soma Plant. "Basically we employ plant operators from local industrial high schools. Regarding communications with the local community to be important, we hold barbeque parties at the plant twice a year. Our liquid waste is treated based on in-house standards that are even stricter than national standards. In addition, we hear through everyday communications if we are a nuisance to the environment or a threat to the security of community," says Mr. Yamashita. Keeping a good relationship with the local community and taking full responsibility for environment and security is very important to them. This is part of the policy of promoting Soma Plant, as Mr. Yamashita is a member of Fukushima Prefecture Science and Technology Promotion Council. The plant receives students from local high schools as interns, as Mr. Yamashita also considers that the plant has to contribute to "craftsmanship" education.

He came from Tokyo Metropolitan area. "I was surprised at the high level of the food culture in Tohoku. I was excited at getting fresh products so easily." One engineer from Tokyo says, "I love the natural and cultural climate of Soma city. I hope to live here permanently". It is difficult for an ordinary worker to own a house with a garden in the metropolitan area. A questionnaire to Soma Plant workers revealed their high satisfaction with the working environment. They received comments like, "I achieved my dream of becoming a house owner," "Freedom from traffic jams lets me lead a life at leisure," "I enjoy playing golf in a wonderful environment". Rich nature and housing environment are important assets and attractions of Tohoku region, including Soma city. If engineers reside here permanently, their skills and know-how will pass smoothly to the next generation. "I hope to make as many as local-born engineers. Many high technology companies are operating in Tohoku. I think we must establish the concept of ‘technological competence in Tohoku’ more clearly. This year Soma Plant launched out into the future with its three-year plan advocating ‘the revival of manufacturing in Japan.’ Although it is foreign-owned, the company is aiming at being a model technology-oriented company in Japan."

Soma Plant will step up to become known as the "world renowned Soma Plant," developing and manufacturing ion exchange resins, as well as maintaining itself as a good local resident.

Inside Soma Plant

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Covered, Aug 2005

Website of Rohm and Haas Company : URL : http://www.rohmhaas.com