MAEDAKOSEN explains how they transformed from a local weaver into a national guardian, reinforcing Japan’s infrastructure with high-tech fibers.
To begin, Japan experienced its major construction boom roughly 50 to 60 years ago. A large share of the infrastructure built during that period is now aging and requires extensive maintenance. We see this in water and sewage systems deteriorating from cracks and invasive roots, as well as in roads, tunnels, and embankments that need renewal and seismic reinforcement. From your perspective, how do you assess the current state of Japan’s infrastructure system, and what do you see as the most important needs for the years ahead?
First of all, in assessing the current situation, by 2040 more than half of Japan’s bridges, tunnels, and other critical infrastructure will be over 50 years old. There is no doubt that we are entering a period of serious infrastructure deterioration, and this aging will become a major social issue. In some cases, authorities are proposing full-scale reconstruction, demolishing old structures and building new ones. But realistically, this is extremely difficult to implement nationwide. Complete renewal would require enormous amounts of time and money, and it is simply not feasible on a national scale. This is why I believe our priority must be to extend the lifespan of the infrastructure we already have. We need to make the current stock more sustainable. That is the foundation of my thinking.
The challenge is that the pace of aging is extremely fast, and even with the use of AI, we cannot fully compensate for the shortage of skilled professionals in the construction sector. The number of workers and especially experienced technicians capable of performing sophisticated maintenance will not keep up with the increasing workload. This labor shortage is a major obstacle for Japan.
To address this, rather than relying solely on Japanese technicians, our company has established a design department in Vietnam. We are transferring the engineering knowledge we developed in Japan and training Vietnamese engineers to reach the same skill level. We intend not only to educate Japanese personnel but also to develop talent overseas who can support Japan’s infrastructure maintenance. Our goal is for these engineers to contribute from both Japan and abroad, including by sending offshore-designed documents. This type of global human-resource strategy will become increasingly important for the entire construction industry. Japan’s budget for infrastructure maintenance between 2026 and 2030 is sufficient, but we do not have enough expertise or personnel to effectively use that budget. Many tasks still require human skill AI cannot do everything. This is why developing overseas technical talent and establishing offshore divisions will be essential for sustaining Japan’s infrastructure in the future.
When we look at Japan’s topography, 75% of the country consists of mountains. It is remarkable what Japan has achieved in infrastructure development despite such geographic challenges. The monozukuri mindset and Kaizen philosophy have driven the creation of advanced solutions. Your company, in particular, has developed sophisticated geosynthetics materials that serve as an alternative to concrete and steel. Could you explain how your geosynthetics fibers function as replacements for those materials, particularly in terms of providing a more sustainable and efficient solution for Japan’s future maintenance needs?
That is an excellent question. First, our geosynthetics are extremely easy to handle on-site. They are lightweight and simple to work with, which makes them very user-friendly for construction workers. Second, the material does not rust. Once installed, it will not corrode or damage the surrounding environment. By contrast, handling steel or concrete is very physically demanding they are heavy and can cause strain on the shoulders and back. Our geosynthetics are made primarily from resin and fiber, so they are soft, lightweight, and significantly easier for workers to manage. In that sense, they are truly worker-friendly materials. Another major advantage is their long lifespan. Because they do not rust or degrade easily, they can last almost indefinitely once in place. This durability is one reason we expect our market share to continue growing.
And could you also discuss the carbon-offsetting benefits?
Certainly. Since our geosynthetics are much lighter than concrete, the machinery and trucks required to transport and install them consume less fuel. This reduces carbon emissions significantly. Additionally, because the material is essentially maintenance-free and has a long lifecycle, the overall environmental footprint is far lower over time. It contributes both to sustainability and cost efficiency.
As we know, Japan is prone to earthquakes, typhoons, and other natural disasters. But other countries in the Pacific Ring of Fire face similar risks albeit often with less advanced infrastructure solutions. Climate change is also increasing the frequency of landslides, extreme rainfall, and related hazards across Asia. What kind of international opportunities do you see for applying the solutions you have perfected in Japan? How can your technology help other nations raise their infrastructure standards, particularly in disaster-related areas?
Originally, our focus was mainly on road maintenance after disasters. However, over the past 20 years especially through a series of mergers and acquisitions we have expanded into river and seawall maintenance, slope stabilization, and emergency damage-repair fields. Our priority in disaster-related infrastructure is to minimize the scale and impact of damage, and to enhance our ability to respond quickly when disasters occur. To achieve this, we are placing strong emphasis on building organizational capability, particularly human-resource development, so that we can respond effectively both in Japan and overseas.
Looking more closely at your technology, you mentioned ADEAM®. This material features high-strength, low-creep aramid fiber arranged in a reinforced geogrid structure. It plays a crucial role in stabilizing soil under structural loads and offers very high tensile strength. From a technical perspective, could you explain how ADEAM®’s composite structure delivers the low-creep performance needed for embankment stability?
The key elements are low-creep performance and resistance to installation damage. When the material is embedded in soil, heavy machinery often travels over it, which can cause stress and potential damage. To prevent this, the fundamental components of ADEAM® are made from aramid fiber combined with polyethylene. Aramid fiber is the essential ingredient. We were the first company in the world to achieve this composite structure combining aramid fiber and polyethylene. The unique characteristics of aramid fiber particularly its minimal elongation under load enable the low-creep performance and high durability required for long-term embankment stability.
You mentioned that mergers and acquisitions have been central to your group’s strategy, and it seems your recent M&A activities have been quite diverse. Before discussing specifics, could you tell us about some of the recent acquisitions and the main synergies or diversification benefits they have created?
Yes. We completed two acquisitions recently. The first, in December 2024, was a company called SAIKOBO in Shiga Prefecture. They manufacture playground equipment for nursery and pre-elementary schools, including products featuring characters from the well-known Japanese anime Anpanman. Japan’s declining birthrate has made growth difficult for such companies, and many face structural challenges. However, because we have strong relationships with public-sector projects, we can help them expand into public parks, not just nursery schools.
Parents today are increasingly concerned about traditional park features such as sandboxes and swings due to hygiene or safety concerns. As a result, these are being replaced with more modern playground structures, including those produced by SAIKOBO. There are approximately 70,000 from small to large local parks nationwide, so the potential for synergy and market expansion is significant.
Our second acquisition, in April of this year, was Mitsui Chemicals Industrial Products now renamed MAEDAKOSEN Industrial Products which we purchased from the Mitsui Chemicals Group. This was our largest acquisition to date, involving a company with annual sales exceeding 10 billion yen and requiring more than 5 billion yen in investment. They manufacture construction materials similar to ours, including geosynthetics and tactile paving tiles known as tenji blocks, which are used for visually impaired pedestrians. In some areas we competed directly, but they also had capabilities we lacked. Since integrating them, cross-selling and synergy development have progressed rapidly.
If I may jump in I know SAIKOBO is based in Shiga. Your long-term vision includes supporting Japan’s regional societies. As the population declines and many family-run businesses struggle to find successors, do you see rescuing regional companies through M&A not only as a business opportunity but also as a form of social responsibility?
Yes, absolutely. We have three core corporate purposes: revitalizing regional economies through local companies, addressing social issues through our products, and “ESG plus H” where “H” stands for human and health. Regarding regional revitalization, when local companies join our group, many of them have been experiencing stagnant growth or facing internal issues such as workplace harassment. By integrating them, we can provide proper compliance systems, restore growth momentum, and improve profitability. This in turn makes these companies more attractive to potential employees, increases local tax revenue, and enables higher wages. The positive cycle benefits the entire community. This is a fundamental objective of our M&A activities.
In your mid-term strategy, you allocated a substantial portion of resources for future M&As. We have also seen in the past such as with your acquisition of BBS that you do not limit yourself to Japan. Looking ahead, have you identified industries or types of companies you aim to acquire, domestically or internationally?
Looking ahead, we want to focus on two major sectors: social infrastructure and industrial infrastructure. We believe that by consolidating expertise within Japan working together instead of competing in a shrinking domestic market—we can contribute more to national GDP and develop stronger products. With that foundation, we can then push further into overseas markets.
Out of curiosity, I have to ask: how did you come to acquire BBS, the world-famous German wheel manufacturer?
It’s a long story. I always wanted to increase our overseas sales ratio. Expanding organically takes a long time, and one of the key ways Japanese manufacturers succeed abroad is by having a strong global brand. But brands take decades to build. So I wanted to acquire a brand rather than create one from scratch. At the time, BBS had its own issues and appeared on the M&A market. That was one reason. Another reason is that we already supplied nonwoven fabrics used in automotive applications, such as engine-bay silencers. We wanted to enter the automotive sector more deeply. Owning BBS allows us to speak directly with automobile manufacturers and their designers, establishing deeper and more strategic relationships.
That is a very interesting story. Your overseas sales ratio has transformed remarkably from 0.3% ten years ago to 24% today. Your next plans aim to increase this to 30% by 2027 and eventually to 50% by 2030. Could you talk us through your strategy? Which countries or levers are key to achieving 50%?
For many years we have been training technicians overseas particularly in our Vietnam base. As disasters increase in Southeast Asia, including the recent floods in Vietnam, we plan to send more civil engineers to support disaster-prevention work across ASEAN. This will contribute significantly to overseas sales. The other driver is BBS. Since becoming an official F1 supplier, we have seen increased interest from many OEMs. The automotive market is polarizing into luxury, mid-range, and low-cost segments. We believe the luxury and low-cost segments will grow, while the mid-range will shrink. BBS is firmly in the luxury segment, which provides stability.
The aftermarket is especially promising. In China, Southeast Asia, and the United States, many consumers want to personalize their cars. We want to elevate BBS to the “Hermès of the automotive world” the top global brand for wheels and strengthen our aftermarket presence. Achieving this will significantly increase our overseas sales ratio.
It has been a fascinating conversation. I have one final question. You mentioned you are the fourth-generation president. Beyond the mid-term plans, what personal goals would you like to achieve before passing the baton to the next generation many years from now, of course?
My long-term mission aligns with our first corporate purpose: revitalizing regional economies. Out of Japan’s 47 prefectures, we have completed M&As in 10 so far. Ultimately, I want to acquire or partner with companies in all 47 prefectures and connect them into a unified network. This would create powerful synergies in manufacturing, development, and sales across Japan. Once that domestic network is complete, I want to link it with overseas regions, applying the same regional-revitalization model internationally.
Looking even further ahead, beyond ASEAN, are you considering markets such as India, Africa, Europe, or the Americas?
Yes. India is particularly interesting. But globally, the key to overseas expansion is distribution networks. Success depends on finding the right partner one who shares our vision and philosophy. Infrastructure and BBS both have potential markets worldwide, so the region is not the deciding factor. What matters most is whether we can meet a strong, trustworthy distributor. That is the primary criterion for entering any new market.
For more information, visit their website at: https://eng.maedakosen.jp/
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