Investing in Japan

Kagoshima

The information below is as of March 2011.

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• Basic Information
• Regional Profile
• Services for investment in Japan
• Available incentives
• Links to Related Websites

Basic Information

Population*1	1.71 million
Labor force*1	0.81 million
Area*2	9,044 km²
GDP*3	5,318,553 million yen
Major industries	Foods, beverage, electrical and electronics, ceramic, metal
Developing industries	Automotive-related, electronic-related, food-related
Offices overseas	Hong Kong / Shanghai, China
Offices in Japan	Chiyoda-ku, Tokyo / Osaka City, Osaka Prefecture / Fukuoka City, Fukuoka Prefecture
JETRO office	JETRO Kagoshima

*1 Population Census 2010, Ministry of Internal Affairs and Communications　*2 Area data 2010, Geospatial Information Authority of Japan *3 Prefectural Citizens' Economic Accounts 2008, Cabinet Office

*Ask the local government for the latest data.

Regional Profile

Strength of the region's industries and economy

Kagoshima Prefecture has a history of manufacturing that dates back to the end of the Edo period. Warships and casting cannons were constructed and a variety of industries were developed including spinning, glass manufacture and printing at “Shuseikan,” the first modern industrial complex in Japan.
Being one of the leading food supply depots in Japan at the present time, a large number of food-related companies locate in Kagoshima, making use of its abundant agricultural and marine products. In addition, semiconductor and automotive industries have concentrated in the Kyushu region. As a result Kagoshima’s critical automotive, electronics and food-related industries drive the industry and economy in the prefecture, and associated companies with leading-edge technology such as Kyocera, Sony, Fujitsu, Panasonic, Ulvac, Toyota Auto Body, and NGK Spark Plug have located here.

Strength of the region's education/research institutes

Kagoshima Prefecture has a number of advanced, engineering-related higher education institutions such as Kagoshima University, Daiichi Institute of Technology, and the Kagoshima National College of Technology, and there are a large number of engineering colleges and vocational schools that are producing scores of outstanding students. The ratio of students enrolled in vocational schools and the number of certified “junior meisters” is the second highest in Japan, indicating the prefecture’s abundance of work-ready young people.
In addition, the prefecture has research institutes such as the Kagoshima Prefectural Institute of Industrial technology, the Kagoshima Prefectural Institute for Agricultural Development, and the Kagoshima Prefectural Fisheries Technology and Development Center, which are actively involved in unique R&D and collaborative research.

Strength of the region's industry-government-academia collaboration

Kagoshima Prefecture has formulated industry vitalization plans based on the Act on the Promotion of Establishment of Enterprises in order to concentrate the prefecture’s key industries, automotive, electronic, and food-related industries, as well as industries expected to grow in the future, such as information and communications and new energy-related industries. It is hoped that these measures will promote the formation of an industry complex to drive the economy in Kagoshima.
When it comes to collaboration between industry, academia and government, Kagoshima Prefecture develops organizations which can organically fulfill a function of research and development, recruiting and training human resources with sophisticated knowledge and skills, exchanging among industries and coordinating between enterprises from other prefectures and local enterprises.

• Kagoshima Prefectural Institute of Industrial Technology

This is a core facility which supports technological development and enhancement of technical capabilities of small and medium-sized enterprises, and makes efforts for upgrading, advancing and combining industrial technologies in a variety of sectors.

• Kagoshima University Innovation Center:

The center provides comprehensive support for small and medium-sized enterprises in Kagoshima Prefecture, settling financial, operational and technical problems. In addition, it promotes and supports technology transfers and partnerships among industries, academia, and the government.

• Research and Development Center of the Kagoshima University / Regional Cooperative Technocenter of the Kagoshima National College of Technology:

As research and development centers jointly managed by industries and academia, they conduct joint research with private-sector institutions, undertake funded research, and provide high technology education/training for technical experts.
In addition, the Kagoshima Prefectural Institute for Agricultural Development and the Kagoshima Prefectural Fisheries Technology and Development Center are researching and developing processing technologies for agricultural and fishery products.

Strength of the region's infrastructure

<Land>

Completion of Kyushu Jukan Expressway, Minami-Kyushu Expressway, Higashi-Kyushu Expressway and other motor expressways.

<Air>

Operation of regularly scheduled air service to Shanghai, Seoul.

<Sea>

Operation of regularly scheduled shipping service to China, Korea, Taiwan and other destinations from Kagoshima Port and Shibushi Port functioning as international logistics bases.

<Railway>

Partial opening of the Kagoshima route of the Kyushu Shinkansen (opening of full service scheduled for 2011).

(Related information)

• Education: Faculty of Engineering, Kagoshima University

Foreign company(s) operating in the industry

From a global point of view, the results of foreign companies operating here in Kagoshima, is a proof of our prefecture's high level business environment, and this result has a great effect when attracting more companies to the region.
Moreover, a great scale of employment and advanced technology can be expected by foreign affiliated companies.
Thus, we are promoting programs to attract foreign companies to the prefecture, which gives a great impact on the area, such as creating employment opportunities and advanced technology transfer to the local companies.
There are 3 foreign affiliated companies (four offices) here in Kagoshima, and in November 2008, one of the companies decided to expand its facilities for the sixth time, and has started its operation.

Company name	MOLEX JAPAN .co.,ltd.
Industry sector	Connector manufacturing industry
Date of entry	January 1991
Motivation for selecting region	Recruitment is easy because a technical high school with work-ready students is located near the industrial park and the park is located within commuting distance of urban areas, and distribution companies are located within the park, which ensures an excellent logistic environment
Support provided by local government or JETRO	Kagoshima Prefecture subsidizes companies moving into the prefecture a maximum of one billion yen per project in which they build new factories or expand existing ones. This may be applied more than once if certain requirements are met. Local authorities’ response to companies wishing to locate in Kagoshima is prompt and trouble-free.

Services for investment in Japan

Menu of services	Fees charged?	Content of services
Support for establishing a base
Providing incubation facilities or other facilities	Yes	Uenohara Business Plaza and Soft Plaza Kagoshima provide fully-equipped incubator rooms so that people aiming to startup new enterprises or small and medium-sized businesses aiming to expand into new business areas can use them for a variety of services.
Introduction of available properties and advice on hiring personnel	No	Vacant factories are listed on the web site to help users find business properties. Support for personnel hiring is provided in collaboration with employment agencies, including "Hello Work" job-placement office.
Providing information on permits and licensing procedures	No	We provide coordination and liaison with related offices and municipalities concerning the necessary procedures to establish a business presence.
Providing information on subsidy programs	No	Information is provided on subsidy programs offered by Kagoshima Prefecture and its municipalities.

Available incentives

Kagoshima Prefecture promotes business invitation by establishing prefectural systems including subsidies of maximum 1 billion yen and low-interest loans for land. The applicable period of subsidies for plant extensions for existing enterprises is unlimited so as to respond to long-term operation plans of invited enterprises.
Implementation of uniform one-stop services for various procedures, securing of human resources and other needs accompanying business advances to the region, as well as follow-up support following initial expansion.

Links to Related Websites

Local governments and related organizations

• Official website: KAGOSHIMA PREFECTURE

Education

• Faculty of Engineering, Kagoshima University

Transportation / living

• International exchange: KAGOSHIMA INTERNATIONAL ASSOCIATION
• Other living information : Tourism Division, Kagoshima Prefecture