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Technology for a greener, more sustainable future

Interview - February 15, 2022

Established in 1882, Mitsui Miike Machinery specializes in material handling systems, manufacturing transport and storage equipment for steelworks and power stations. The Fukuoka-based company’s portfolio of custom-made products also includes tunnel excavation machinery, and technology for hydroelectric generation systems. We sit down with president Motohiko Nakamura to find out more about how Mitsui Miike Machinery is applying its expertise in quality, custom-made technology to pursue the goal of carbon neutrality.

MOTOHIKO NAKAMURA, PRESIDENT OF MITSUI MIIKE MACHINERY CO., LTD.
MOTOHIKO NAKAMURA | PRESIDENT OF MITSUI MIIKE MACHINERY CO., LTD.

The Japanese manufacturing philosophy monozukuri is based on constantly improving products and processes. What principles is your company founded on and what in your view is the essence of monozukuri?

My interpretation can be divided into three key words: quality, efficiency, and durability. To achieve these characteristics, it is important to be mindful of the finer details, as well as safety when using machinery, the environment, and taking good care of staff, while also being particular about what you are doing. Japanese clients pay a lot of attention to detail, and don’t focus only on a product’s main specification, but also require something in addition to that, such as safety and maintenance. We do order-based production, so whenever we receive an order, customers request something new, and we work to meet their needs.

Our company was founded more than 100 years ago as an affiliated factory of the Mitsui Mine and has a history of 60 years independently from Mitsui Mine. At Miike Coal Mine in Omuta City, Kyushu, we designed and manufactured excavation machines, transportation / storage machine systems, pump systems, ventilation systems, gearboxes used for those machines, and electric motors. These are the six divisions we currently have.

 

Japan’s ageing and shrinking population is leading to a dwindling domestic market and decreased labour pool, with one in three Japanese people expected to be over the age of 65 by 2035. How has this demographic shift affected your business and what changes have you made to adjust to it?

On a global scale, the production of mass-produced and catalogue products is shifting to China, Taiwan, and South Korea because there is a huge domestic demand in these countries, especially in China, which is ten times the size of Japan. Due to the demand for domestic machinery, Japan has shifted to niche fields and markets, as well as more complex and high-performance ones. At the same time, demographic pressures have become a serious issue not just for us, but for the market overall. The generation that supported Japan’s post-war economic growth has retired, and there are fewer people between the ages of 50 and 70 in the machine manufacturing field. This is significant because we have tried to ensure that veteran workers pass their knowledge on to younger staff, but haven’t been successful, so we are increasingly turning to IoT (Internet of things) and automation.

 

Your company has developed an autonomous AI (artificial intelligence) operation for its road header system. Can you explain its development process and what other digital systems you are using for excavation?

The road header as well as earth and sand loading machine are under development to be operated with AI for the past three years. Currently, a prototype loading machine is being installed at a road tunnel site and tested to load excavated soil. We have loaded sensing and image diagnosis functions to this machinery, and this will be used in tunnels to determine whether the location has been excavated or not. There is no prospect of sales for it yet.

 

You started as a mining company, but also have expertise in storage, transportation, and fine blanking technology. Which product division are you focusing on and what products are you looking to expand your sales of?

Our main business is the material handling plant. We replace stackers (delivery machines) and reclaimers (loading machines) with new ones and repair them in the mineral yard of steelworks. In Japan, there is an annual demand for about 10 units. Another area is that of biomass plants. This is the field of silo storage and transportation equipment for biomass power plants.



As for the future, there have been increasing calls for carbon neutralisation and there has been a reduction in steel production, so we need to investigate other propositions that respond to these trends.

The products for which we would like to expand sales overseas are road headers for tunnel excavation, 1 to 2 MW small hydroelectric power generation equipment, biomass power generation transportation equipment, and planetary gearboxes (for excavators, large cranes, excavators, etc.). All machines can be designed and manufactured to the customer’s order. The strength of our products is that we can design and manufacture products that are sturdy, durable and have a long life according to the customer's specifications.

 

Former Prime Minister Yoshihide Suga declared that Japan aims to achieve carbon neutrality by 2050. How are you adapting your business to this goal?

We have a small hydroelectric power generator, given our strength in independently manufacturing generators, and we are trying start our own electricity power generation business with the facilities at our disposal. We are currently in discussions with general constructors and electricity companies in the hope of cementing collaborations in this area. Our aim is to start domestically before shifting to the international arena.

 

Can you tell us about your current R&D strategy, and what new products you have developed?

Our seabed project, a joint project with several companies, is under continuous development and JOGMEC (Japan Oil, Gas and Metals National Corporation) commissioned us to make a contracted rare metal excavator. We are currently developing a pumping system to extract methane hydrate, also commissioned by JOGMEC. Other recent developments are our road header and sediment loading machine.

Our business model is order-based, so we try to provide something extra to all the orders we receive; for example, automation and remote diagnostic function and preventative maintenance all have such potential.

 

Japan has a complex soil composition due to intense seismic activity, therefore TBMs (tunnel boring machines) can’t be used. How do you adapt your road headers to different soil compositions across different locations?

We try to find locations where our machinery is most appropriate, such as Australia, where we have exported 50 units over 5 years. We are working on selling our products to other countries, such as India or China, however, there are many road header companies there in China. Moreover, many Chinese customers know that our road headers are high performance and believe that if we solve the cost problem, we can sell them there.

 

In terms of their lifecycle, Chinese products generally last around four to five years, while Japanese ones can be used for up to 20 years. Can you explain the competitive advantages of your products?

Our strengths are the same as those of Japanese monozukuri: high quality, efficiency, and durability. In terms of cost, we need to find a balance whereby Chinese customers, for example, would be happy to purchase our products for high quality machinery. We are also looking into entering niche fields, while always working on improving quality.

 

What about Europe, what role does this region play in your business and how will you expand further in it?

We are currently collaborating with a Swiss company on joint research and development of a gearbox technology for 2 MW wind power generation. If this project succeeds, since there is a large replacement market in Europe, it has the potential to sell well, but at the same time, we should be aware of the technology and cost. Depending on the business, we would like to find a good partner in Europe and work together to expand in the region. It is still unknown how big the market is yet.

 

Imagine we come back in five years’ time and interview you again. What dreams or goals would you like to have accomplished by then?

Over the past ten years, we have been focusing on having annual sales of ¥30 billion. There were years in which we managed to achieve this goal, however, there have been many ups and downs throughout our six business divisions. Our focus for the next five years is to have an even and balanced income across all divisions, while still exceeding ¥30 billion annually.

Hopefully, we will also be able to provide power through the electricity generation business we are starting. We would like to take our hydropower generators overseas and sell them in relevant markets, such as Southeast Asia.

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