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How the Benda Method reshaped manufacturing

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Interview - October 26, 2020

A leading developer of high-performing ring gears for cars, trucks, ships, construction and agricultural equipment, Benda Kogyo is developing ground-breaking products for the next generation of automobiles. We speak with president Kazunari Yashiro to learn more about the company’s operations, its focus markets for future growth, and how the award-winning Benda Method revolutionized metal ring manufacturing.

MR. KAZUNARI YASHIRO, PRESIDENT AND EXECUTIVE DIRECTOR OF: BENDA KOGYO CO., LTD.
MR. KAZUNARI YASHIRO | PRESIDENT AND EXECUTIVE DIRECTOR OF: BENDA KOGYO CO., LTD.

Can you give us a quick overview of Benda Kogyo?

Benda Kogyo originated from the journey of six craftsmen in the cold-bending processing of steel. One of them is Kazuyoshi Yashiro, who laid the foundation for the Benda Group that shared the strong ambition to “bend the world’s iron!". 56 years have passed and Benda Kogyo is growing steadily, not just because of the skill and expertise, but because every effort they put in to build a foundation of mutual respect for each individual.

 

For you, what is the essence of Japanese Monozukuri? How do you implement it in your manufacturing process?

Monozukuri excellence is born in our factories as a result of the technologies utilized in the process. These techniques were introduced by my grandfather, Kazuyoshi Yashiro, who was the founder of Benda Kogyo. I continue to look up to my grandfather, as he was the one who explained the operation of the company and fed my curiosity towards it.

He also developed the Benda Method in 1975, which is widely utilized in the automobile industry. It is a process for manufacturing metal rings using cold-bending processing, welding, and other technologies. Round steel is cold-rolled or hot-rolled into long steel material, bent into a predetermined shape, and then bent in layers to create a spiral. Then, each spiral is cut, welded, and formed into a perfectly circular ring. Refinements and improvements to this process over many years have led to the establishment of high-quality, high-yield metal ring manufacturing technology that produces an extremely small amount of material loss. The existence of this technology is the root of our company, which we were able to introduce to the world and for which we owned patents in nine countries.

 

What is the competitive advantage of Benda Kogyo? What makes you the go-to partner in the automotive industry and in other industries that you support?

The cold-rolling method is what distinguishes us and gives us uniqueness. We are the only company capable of performing this process on the domestic market.

It is a manufacturing line that combines eight processes to reach the excellence stage. This process is highly praised and recognized in Japan as we won the "Minister of Economy, Trade and Industry Award" in the "Manufacturing Japan Awards" in 2009. The excellence of Monozukuri allows us to reach and even exceed the quality standards set in the national and international market.

 

What role does R&D play within your company?

We have our R&D Centre in South Korea, which we utilize for design, test and validation. Next year we will establish a similar center in Japan. Through R&D, we could immerse ourselves in different industries and develop products for various industries, for example, automobile, agriculture, construction, trucks, and boats and ships

 

Could you give us an overview of your flagship product?

The Ring Gear is our top product. It transmits the power of the starter motor to the crankshaft when the engine of the automobile is starting. Recently, we have introduced different sizes and ranges. Globally, we occupy 20% of the global market share in terms of the ring gear etc.



What is your strategy when it comes to EVs?

Since the development of our first "One Benda" strategy, we are now at "One Benda III".  Among these, we have made enhancements to the R&D activities regarding diversification. Our current strategy is to focus on electrified automobiles (EVs, PHEVs and HVs) and combustion engines. The following strategy unites six major activities that our company has expertise in, and we work closely to do global sales activities, cost control, corporate management, R&D of new processes and new products, quality control and HR development to ensure everything runs smoothly.

After 2030, electrified automobiles will dominate the market. For that reason, we adopt this vision to create more innovative products and adapt them towards these changes to maintain our privileged position. By supporting electrified automobiles, we will reinforce the SDGs and pursue our growth mission, “Next era expanding technology”.

We are looking forward to this trend. We are aiming to have 15.5 billion yen in sales in March of 2023, and we are very positive that 10% of it would be new products that will focus on upcoming trends.

 

Are there any upcoming products that you would like to share with us?

We have a new ring in progress aimed at a major carmaker’s hybrid vehicles, as the coming years will be a breaking point regarding automobile trends, whether it is in Japan or on the European market. However, the key difference is our domestic market preference is hybridization while Europe’s is EVs.

We are not a novice when it comes to hybrid or EV cars. We will establish our strategy and introduce specialized HEV parts locally and overseas.

There will even come a time when combustion engines are fully superseded. We must adapt as soon as possible and take advantage of market opportunities, especially with our new R&D Centre in Japan; we could focus on the new era dawning in the automobile industry. 

 

How do you find your customers in the overseas market?

Our strategy to increase our client portfolio overseas is to target mega-suppliers, as a result of which we will be able to launch new products on the market and become more powerful.

 

Are you looking to increase your mega supplier client portfolio?

Yes, of course. European companies are being attracted to China to produce locally, which could solidify our passage into the European market and the global production chain. Through the presence of the Chinese channel, we can supply to Europe and the USA and learn how we can do it more firmly and accurately.

 

What kind of obstacles did you face when you were going abroad for the first time?

Indeed, main struggle my father faced was to maintaining the quality of production. The company wanted to expand overseas, but we would like to ensure the quality of the products remain the same, even they are produced overseas or domestically, because in the automobile industry, quality and assembly are crucial aspects. However, in order to be attractive, the price is one of the factors. My father said that if you make things cheaper, the quality would drop. It is an obstacle to overcome, to balance the price and sustain the quality. It becomes our philosophy “Quality is Vitality” and we carry this philosophy until now.

 

What role does co-creation play within your company? Are you actively looking for co-creation partners?

The landscape is rapidly changing. Now, we are receiving calls from companies from industries we have not previously worked together, for example the electronic bicycle business or construction business. We do not rule out collaboration, and indeed we are fully willing to do so if we could improve our products for the benefits of our customers.

 

Are you going to tackle a particular industry to diversify?

We do not hesitate to immerse ourselves into markets in which we currently have a presence but not a significant one. For instance, trucks, construction machinery, agricultural machinery, robotics, and boats and ships. We have a long road of growth ahead of us.

 

What is your current international strategy? Which market holds the key to your future?

We are doing our overseas expansion gradually. First, we began expanding in Korea in 1986, then in China in 1995 and Thailand in 2013.

Japan occupies 35% of our total sales; therefore 65% of our revenue is coming from overseas. However, our new strategy is not fully defined as we have to take into consideration the ongoing international situation due to the COVID. We want to avoid the risks as much as possible.

We are already present in many countries through the establishment of local companies or large suppliers. As a future project, we would like to expand into those countries that are undergoing economic growth, such as Mexico or India, but time will tell.



If we come back in five years and interview you all over again, what would you like to tell us? What are your dreams for the company and what is the legacy that you would like to leave behind?

I feel that we are going towards a mountain of evolution and development that takes us to the summit of achieving our goals. Once we reach the top, after a five-year journey, we glimpse that there is an even higher mountain to climb. This is how I see the road ahead of us and with a continuous effort, we will achieve it.

This requires establishing the mid-term plan and focusing on fostering the human capital, the enhancement of our R&D activities, introducing new products, also diversification of the market. The know-how we have accumulated during these long years of the journey will lead the new generation into the future.

My grandfather was the one who started the machinery in Japan and my father catapulted it to the international market. I also have a vital mission within this business and I am going to achieve it. We might be small, but we are very ambitious company.

Furthermore, we will realize our philosophy of “One Benda, World Benda”, to continue to strengthen the bonds throughout the group, strengthen the roles of each company, and capture a greater share in global markets. We are aiming to become a global tier corporation that develops technology.

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