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Regional Information Ibaraki

Bring Innovation to Your Business by Establishing an R&D Center in Ibaraki Prefecture

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  • Inquires about investment in Japan.

Tokyo Office, Industry Development Section

Shin Otemachi Building 6F, 2-2-1 Otemachi, Chiyoda-ku, Tokyo 100-0004 Japan
Tel: +81-3-3243-0845 Fax: +81-3-3243-0846
santou@pref.ibaraki.lg.jp

Ibaraki

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  • Please note that inquires not regarding investment in Japan may not be answered.

The information below is as of January 2017.

Basic Information

Population *1 2.91 million
Labor force *1 1.45 million
Area *2 6,097.1 km²
GDP *3 11,511,260 million yen
Major industries
Wage *4
Initial wage for university graduates(Average)
196,000yen
Initial wage for college of technology/junior colledge graduates (Average)
175,600yen
Initial wage for upper secondery school graduates (Average)
163,700yen
Scheduled cash eanings (Average)
279,900yen
Land price(for 1m²) *5
Land price for industrial use (Average)
18,200yen
Land Price for Commercial Use (Average)
64,600yen
Number of Establishments *6 122,835
Number of Employees *6 1,216,659
Offices overseas

Ibaraki Prefecture Shanghai Office

JETRO office

Regional Profile

Strength of the region's industries and economy

Ibaraki Prefecture is located 30 km from Tokyo at its nearest point and 150 km at its furthest, and has a population of around 3 million. It comprises a vast flat terrain, which is highly suitable for industrial development. The prefecture contains one of the largest industrial clusters in Japan. Hitachi City is one of the hub of the nation's electronic industry, the Kashima industrial area is a key base for materials industries such as the petrochemicals industry, and Tsukuba City is the nation's largest science hub. In recent years, Komatsu, Hitachi Construction Machinery, and Fanuc have established new factories in Ibaraki as a part of their growth strategy. Hino Motors, and Megmilk Snow Brand are also expanding their operations in the prefecture. Ibaraki, a stone's throw away from the Tokyo metropolitan area, is highly appreciated as an industrial base by business sectors for its geometrical advantage of proximity to Tokyo Metropolis.

Foreign company(s) operating in the industry

Ibaraki is very close to Narita International Airport and has two designated ports dealing with foreign trade, Ibaraki Port and Kashima Port, making it an ideal area for foreign companies to establish their offices.
Since 1962, 36 foreign-affiliated corporations have set up in Ibaraki, including Autoliv, Intel, Mercedes-Benz, Nestlé, and Peri Japan.

Company name Autoliv Japan Ltd. External site: a new window will open.
Country Sweden
Industry sector

automotive safety

Outline of business

Research and development, manufacturing, sales and import and export of automobile safety parts such as seat belts, air bags and steering, etc.

Date of entry April 1998
Motivation for selecting region

Launching into the Japanese market officially took place after the acquisition of the company in Ibaraki.

Support provided by local government or JETRO

When we decided to relocate our Fujisawa office to Tsukuba office in 2010, two years after the bankruptcy of Lehman Brothers, and took steps to integrate our operations there. Both Ibaraki Prefecture and Tsukuba City provided us with subsidies for relocation and investment as well as tax exemptions, which enabled us to integrate our offices in a short period of time.

Comments

When we planned our expansion to Japan in 1998, there were concerns about whether we could establish manufacturing operations in Japan, starting with about 20 workers. However, with support from Ibaraki Prefecture and Kasumigaura City, we were able to take the necessary steps to succeed in Japan. Today, we have taken a deep root in Japan as a company and have 1,600 Japan-based employees and domestic sales of 75 billion yen.

Company name Mercedes-Benz Japan Co., Ltd. External site: a new window will open.
Country Germany
Industry sector

Import, sales, and after-sales service of automobiles and automobile-related products

Outline of business

Import, sales, and after-sales service of automobiles and automobile-related products

Date of entry January 1992(Hitachi city)
Comments

Mercedes-Benz Japan was established in 1986, 100 years after Mercedes-Benz invented the motorcar. We provide Mercedes-Benz and its smart car range to customers across the nation through our network of certified dealers. In January 1992, our vehicle preparation center was established in Hitachi City. At the center, we make final adjustment of new vehicles ferried from Europe and North America prior to shipment to domestic dealers.

Available incentives

Exemption from prefectural and municipal taxes: exemption from corporate enterprise taxes, real estate acquisition taxes, and fixed-asset taxes when establishing or expanding new factories or offices
Reduction of industrial water charges: Reduction of half of leviable industrial water charges for applicable areas
Leasing scheme: Leasing scheme for some industrial parks
Provision of subsidies for electricity charges
Ibaraki Special Zone for Industrial Regrowth: Special provisions in taxation
National subsidies: The subsidy for investment on fixed assets to establish new factories etc. is provided as a Subsidy Program for New Business Establishment in the Areas Recovering from Tsunami and Nuclear Disaster towards Employment Creation

Incentive name

Exemption from prefectural and municipal taxes

Incentive type 税制上の優遇制度
Incentive target industries

Manufacturing, information and communications, information and communication technology providers, transport, wholesaling, scientific and development research institutes, hotel business (depopulated areas), large-scale retail stores (in designated built-up areas and depopulated areas), plant factories (limited to those companies conducting business inside the buildings subject to real estate acquisition taxes)

Outline of Incentives (Requirements etc.)

Corporate enterprise taxes: Exemption from corporate enterprise taxes for 3 years in proportion to the increase of the number of employees caused by new establishment and expansion of offices, etc.
Real estate acquisition taxes: Exemption from real estate acquisition taxes of buildings and sites (where buildings are established) .
Fixed-assets taxes: Exemption from land, building, and depreciable assets.

Incentive name

Reduction of industrial water charges

Incentive type その他
Incentive target industries

Companies newly located in targeted areas

Outline of Incentives (Requirements etc.)

Industrial water charges reduced to half annually for 3 years since its start of supply

Incentive name

Leasing scheme

Incentive type その他
Incentive target industries

Companies newly located in targeted industrial parks

Outline of Incentives (Requirements etc.)

Leasing scheme for some industrial parks

Incentive name

Provision of subsidies on electricity charges

Incentive type 補助金
Incentive target industries

Companies newly located in targeted areas

Outline of Incentives (Requirements etc.)

Subsidies: Provision of subsidy equivalent to half of electricity charges for the first 8 years after company's location
Subsidy: Provide subsidy depending on contract electricity demand

Incentive name

Ibaraki Special Zone for Industrial Regrowth

Incentive type 税制上の優遇制度
Incentive target industries

Designated companies

Outline of Incentives (Requirements etc.)

Special depreciation, tax deduction, special deduction in corporate taxes, etc.

Services for investment in Japan

Providing market information Advice on the matters related to entering into Japanese market
Support for establishing a base Provision of facilities including a incubation office
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