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Plastic Compound Business

Compounding - adding value to trading business

Norihiko Egawa
Norihiko Egawa
General Manager,
Plastics Compound Business Office

Stable supply at reasonable cost

The Inabata Group has developed its plastics compound business throughout Asia since the 1970s. At the time that Japanese consumer electronics manufacturers expanded in Southeast Asia, it was difficult to respond to changes in inventory management and demand since the majority of raw materials were supplied from Japan. Therefore, Inabata set up plastics compound plants near customer factories in Southeast Asia to ensure the stable and timely supply of plastics offering the same quality as materials made in Japan.

Due to the strengthening of the yen after the signing of the Plaza Accord, the overseas expansion of Japanese consumer electronics companies accelerated in the late 1980s, with new locations in countries such as Singapore, Thailand, and Malaysia. Inabata followed suit in order to respond to customer needs. Our company currently operates eight plants in seven countries (China,Vietnam, Thailand, Malaysia, Philippines, Indonesia and Mexico ) with an annual production approximately of 210,000 tons (as of April 2017).

Wealth of information

The first hurdles manufacturers will face when expanding overseas are the legislative systems of each region. China and nations throughout Southeast Asia each have different systems, such as import/export and tax systems. This is one source of concern for companies setting up new production locations overseas because of issues such as complex procedures and frequent system changes.

Since the Inabata Group has experience in obtaining licenses and establishing plants in various countries, our specialists have the practical business know-how, including document preparation, and a wealth of information. As a result, we are able to provide our customers with location-specific information when they need it most. For example, we can tell customers where they need to go and who they need to meet with in order to get their problems solved.

Manufacturers' perspective

Inabata operates manufacturing companies despite being a trading company. This makes it possible to share our concerns and needs in a way that our customer manufacturers can relate to. Our manufacturing experience allows us to solve issues that our customers face.

Responding to customer needs

In addition to providing solutions for distribution issues such as inventory risk and procurement, Inabata further aims to become a partner capable of responding to all customer needs, from assisting customers in the process of establishing overseas locations to production management support.

Annual production capacity of resin compounds (MT/Y)

China Vietnam Thailand Malaysia Philippines Indonesia Mexico
52,200 36,000 38,400 21,600 10,800 37,200 15,000

211,200MT/Y 7countries 8locations. As of April 2017

Plastic compound production