Turning Up the Heat on Clean Energy

The traditional Japanese spirit of monozukuri is defined by a deep commitment to craftsmanship, precision, and continuous improvement throughout every stage of the manufacturing process. How does your company embody the principles of monozukuri?

My father founded the company 67 years ago as a small manufacturer of manual LPG pumps, and we’ve been in the LP gas vaporizer business for about 60 years now. In the early days, we also offered plant engineering services, and through those operations, we came to realize the need for a vaporizer.

Over time, we developed a variety of products to meet our customers’ needs, including burners and LPG vaporizers. We’ve produced many types of vaporizers—some powered by electricity, others by hot water or steam. As we worked through these developments, we went through a process of trial and error. That journey allowed us to build valuable knowledge and expertise, which now informs every aspect of our manufacturing, design, and quality control. This is the foundation of our strength and our ongoing commitment to monozukuri.

Your products serve a wide range of industries and applications, including gas conversion, cooling, and fertilizers. Could you tell us more about your main customer segments and how your products are used in these areas? What do you think makes customers choose your company over others?

First, I want to emphasize that we don’t typically sell our products directly to end users in Japan. Most of our sales are through gas companies, construction firms, and distributors. These partners have their own product lines and work directly with the end users.

As for applications, our products are commonly used in facilities that consume gas, such as factories, hotels, restaurants, and hospitals. Among these, factories represent the largest share. For example, we supply vaporizers to steel and glass factories that operate large boilers. We also serve many automobile factories, which rely heavily on gas in their operations.

Your company has carved out a niche in the industry by offering customization and flexibility, rather than providing a one-size-fits-all solution. Could you tell us more about how you approach customization and how it applies across different industries or customer needs?

We offer both standard and customized products. For our standard items, we maintain a production schedule and keep a certain level of inventory so we can respond quickly and deliver with short lead times.

For customized products, the process typically begins when we receive an inquiry from a customer. We then pass that request to our technical team to assess whether the specifications are feasible. If they determine it is, they work with the sales team to prepare a quotation for the customer.

Once the customer places an order, we issue instructions to the factory to begin production. As you might expect, this process takes time—usually around two to three months.

We handle a large number of custom orders, and often these are based on designs we’ve developed previously. In such cases, we refer to our data archives and adapt or refine those earlier designs, rather than starting from scratch. This allows us to be more efficient and responsive. I believe this is something that sets us apart. Many other companies avoid this kind of niche customization, either because it’s too specialized or because the market is too small for a larger firm to focus on. For us, though, it’s a meaningful and growing segment, and one where we’ve built a strong reputation.

Many countries, particularly across Asia and other emerging markets, are working to phase out coal and oil. In this transition, LPG and LNG are increasingly being adopted as cleaner, more flexible alternatives. These fuels are also seen as enabling modular and decentralized energy systems that can enhance disaster resilience and energy security. How do you see the role of LPG and LNG systems in supporting the global shift toward a more flexible and sustainable energy infrastructure?

As you mentioned, there is a global shift toward cleaner energy, but many developed countries still rely heavily on coal and other high-emission fuels. This dependence contributes to issues like deforestation and air pollution, which in turn can lead to serious health problems. Compared to those energy sources, LPG and LNG are significantly more environmentally friendly. That’s why they are increasingly valued as alternative fuels.

One of the key advantages of LPG is its versatility. While it’s typically stored in large tanks, it can also be distributed in smaller, portable containers. This makes it especially useful for remote areas where access to other energy sources may be limited.

One of your notable developments is the DX system—a line of dry electric vaporizers designed specifically for overseas markets, offering solutions for space constraints and cost efficiency. Could you share some of the technical considerations that shaped the design of these products with international markets in mind?

A key feature of the DX product is that it operates without using any water. This is one of its defining characteristics, especially when compared to other vaporizers that rely on hot water for operation.

I was directly involved in the development of the DX product, and one of the biggest challenges we faced was related to temperature control. With hot water systems, the temperature rises and falls gradually. But with aluminum, the temperature can increase or decrease much more rapidly. That difference created a number of technical hurdles.

For instance, when the temperature rises too high, the system is designed to shut off automatically through a safety switch. During development, we experienced some malfunctions with that switch, which was something we had to address very carefully. Inside the aluminum structure, we installed temperature sensors, but the biggest issue we encountered was how to position the coil component, which is embedded in the center. If the coil is not aligned precisely, it can lead to malfunctions. Achieving perfect alignment during production was extremely difficult.

We went through a lot of trial and error, but eventually we found a solution. Today, we’re proud to say that we sell a large number of these vaporizers around the world, and they’ve become especially popular in Africa.

What do you believe are the key factors behind the success of this product in overseas markets, and particularly in Africa?

We originally developed this type of vaporizer in response to a specific customer request. The customer wanted a unit that didn’t require water because they planned to use it in street food carts in Singapore. Their intention was to mount the device on a wall or shelf rather than placing it on the ground. In that setup, it would be difficult to refill water regularly, which is why they needed a water-free solution.

Additionally, because space is so limited in Singapore, there are strict regulations for street food carts. A traditional vaporizer simply wouldn’t fit. That’s why we designed a more compact unit that could be installed in elevated spaces.

While many of our overseas customers may not face the exact same restrictions, I think the features that made the product suitable for that original use case—compact size, no water requirement, and flexible installation—are widely appreciated in other markets as well.

Turning to your overseas strategy, we understand you have two subsidiaries in Shanghai as well as a global distribution network. Could you tell us which markets or regions you are currently focusing on for further growth?

Right now, our priority markets are the Philippines in Southeast Asia and the Middle East, as these two regions account for the majority of our overseas revenue. In addition to that, we’re collaborating with the Japan International Cooperation Agency (JICA) to install one of our units in Tanzania as a trial or proof of concept. Most households in Tanzania still rely on wood for cooking, and President Samia Suluhu Hassan has introduced a green cooking policy aimed at shifting from wood to cleaner energy sources such as LPG.

With that in mind, we applied to JICA’s program, which supports small and medium-sized enterprises like ours that may not have the resources to expand overseas independently, particularly in markets like Africa. JICA provides financial and logistical support to help companies like us develop opportunities in emerging regions.

For this project, we proposed our unique BAiO product, which is a tank with a built-in vaporizer. Typically, the tank, vaporizer, and related components are separate, but this unit integrates everything into one system. It can be installed easily by simply connecting a pipe, and it is also much easier to maintain. This kind of compact, all-in-one solution is particularly valuable in developing countries where safety standards and regulatory frameworks may not be as strict. The BAiO system offers both simplicity and enhanced safety, which we see as a strong advantage in these markets.

In addition to your collaboration with JICA, you also maintain a global distribution network. As you continue expanding internationally, are you actively seeking new partnerships? If so, what types of partners are you looking for?

When we enter new markets with partners, it’s essential that those partners have a strong understanding of the local market. They must also place a high priority on quality, and most importantly, they need to be reliable and trustworthy.

One of our key criteria is a potential partner’s technical and sales capability. They need to fully understand our products and have strong technical expertise, along with a well-developed sales network. It’s also crucial that they are knowledgeable about local regulations and have a solid track record of compliance. Any required certifications must be in place, and their organizational structure should be responsive and efficient.

Another important factor is the mindset and behavior of the partner. To build a long-term relationship, they must demonstrate a clear willingness to provide maintenance and after-sales service. That kind of customer support is critical to us. Corporate values are equally important. As a Japanese company, we put a strict emphasis on quality, and we need our partners to understand and share that philosophy. Before moving forward with any new partnership, we conduct a comprehensive evaluation to ensure we can grow the market together effectively.

One interesting area of diversification is your Doctors Man product line, which focuses on hydrogen-based healthcare solutions. What was the strategic thinking behind entering this new market, and how do you see it complementing your core business?

We occasionally use hydrogen in our core business, but we also see significant potential in the healthcare sector. Hydrogen is widely recognized as a clean energy source, and research suggests it may contribute to areas such as cell therapy and other medical applications. With ongoing advancements in hydrogen-related research, we believe there is strong potential for commercialization in the healthcare field as well.

As a company, we are working to diversify our business portfolio, and this new venture is being led by our overseas sales and development team. We launched the Doctors Man project about six years ago, and it has become a pioneering company in the field of hydrogen-based healthcare products.

We serve as the exclusive distributor for Doctors Man, leveraging our technical expertise, industry knowledge, and international distribution network. Currently, we are offering hydrogen water generators and hydrogen gas inhalers as part of the product lineup.

So the product wasn’t originally developed in-house. Is this part of a development partnership, or are you strictly acting as a distributor?

We are solely the overseas distributor. They already have a strong domestic sales network in Japan, but since they are a small company like us, they don’t have an overseas presence. That’s why we approached them with the idea of working together. It turned out to be a good match.

Your company was founded in 1958, which means you’ll celebrate your 75th anniversary in 2033. Looking ahead, where do you envision the company by that milestone?

I haven’t looked that far ahead in detail, but at the moment, our annual sales are around JPY 4 billion. We've recently put together a five-year management plan with the goal of increasing that figure to JPY 6 billion.

If you're asking where we want to be by 2033, our target is to reach JPY 10 billion in sales. To achieve that, our overseas business development team will need to play a much larger role. They must become a core pillar of the company. By that time, we expect at least JPY 2 billion in sales to come from international markets.

For more information, please visit their website at: https://kagla.co.jp/en/company/