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Regional Information Kagoshima

Kagoshima, aiming to gather food-related industries

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Industry Establishment Division/Commerce,Industry,Labor and Fisheries Depertment /Kagoshima PrefectureExternal site: a new window will open.

10-1 Kamoike Shinmachi, Kagoshima-city, Kagoshima Prefecture 890-8577
Tel: 099-286-2983 Fax: +81-99-286-5578
yuuti@pref.kagoshima.lg.jp

Kagoshima

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The information below is as of January 2017.

Basic Information

Population *1 1.64 million
Labor force *1 0.79 million
Area *2 9,186.9 km²
GDP *3 5,286,586 million yen
Major industries Foods and beverage, electrical and electronics, ceramic, machine, metal
Wage *4
Initial wage for university graduates(Average)
184,300yen
Initial wage for college of technology/junior colledge graduates (Average)
166,000yen
Initial wage for upper secondery school graduates (Average)
144,600yen
Scheduled cash eanings (Average)
253,300yen
Land price(for 1m²) *5
Land price for industrial use (Average)
39,000yen
Land Price for Commercial Use (Average)
76,800yen
Number of Establishments *6 80,279
Number of Employees *6 674,469
Offices overseas

Hong Kong / Shanghai, China

JETRO office

JETRO Kagoshima

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. The first modern industrial complex in Japan called "Shuseikan" was already under operation. And here, warships and casting cannons were constructed and a variety of industries were developed including spinning, glass manufacturing and printing.
Today, being one of the major food supply depots in Japan, a large number of food-related companies locate in Kagoshima, making use of its abundant agricultural and marine products. In addition, Kagoshima comprises of an important part of concentration of semiconductor and automotive industries in Kyushu. Associated companies with leading-edge technology in presence, such as Kyocera, Sony, Ulvac, Toyota Auto Body, and NGK Spark Plug, are playing as the driving force of the industry and economy in the prefecture.

Foreign company(s) operating in the industry

From a global point of view, the track record of foreign companies operating here in Kagoshima, is a proof of our prefecture's advantageous business environment, and this record has a great PR effect for attracting more companies to the region.
Moreover, with the establishment of foreign companies in the prefecture, a great impact can be made on the area, such as creating employment opportunities and advanced technology transfer to the local companies. Thus, we are promoting programs to attract not only domestic companies but also foreign companies.
There are 3 foreign affiliated companies ( four offices) operating here in Kagoshima.

Company name MOLEX JAPAN LLC
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' assistance to companies advancing into Kagoshima is prompt.

Comments

Kagoshima Prefecture provides superiority in protecting in-house confidential information because it provides skilled personnel with low personnel turnover rate. Moreover, regarding infrastructure, there is well-developed infrastructure for electricity and water. Regarding infrastructure for physical distribution, the prefecture provides a Japanese major port and international airport, offering a great advantage for companies setting up a head office in Asia.

Available incentives

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

Incentive name

Business Location Promotion Subsidy for Kagoshima

Incentive type Subsidies
Incentive target industries

Manufacturing-, distribution-, information-, and communication-related, and R&D centers

Outline of Incentives (Requirements etc.)

For companies establishing their operation in Kagoshima Prefecture, subsidy is provided for covering a part of the expenses of acquiring buildings and machinery and equipment. New employment is the requirement attached to this subsidy.

Incentive name

Capital Investment Promotion Subsidy for Production in Kagoshima

Incentive type Subsidies
Incentive target industries

Manufacturing

Outline of Incentives (Requirements etc.)

For companies expanding into Kagoshima, subsidy is partly provided for extension and replacement of premises and facilities. Maintaining employment is the requirement.

Incentive name

Subsidy for Maintaining Specified Plant Facilities in Kagoshima

Incentive type Subsidies
Incentive target industries

Industrial water special processing facilities, special high-voltage power distribution line facilities (22kV or higher)

Outline of Incentives (Requirements etc.)

Companies which are going to install an industrial water special processing facility (a facility for removing silica) and companies paying to power company a fee for installing a special high-voltage cable related distribution facility are eligible for subsidy for covering a part of the cost of installation and charges.

Incentive name

Business Location Fund Loan

Incentive type Loan Scheme
Incentive target industries

Manufacturing, distribution, information-, and communication-related, and R&D centers

Outline of Incentives (Requirements etc.)

Fund for setting up an office: Companies setting up an office are eligible for a subsidized loan via financial institutions to acquire land, buildings, and machinery and equipment.
Fund for setting up residence for employees: Companies setting up residences exclusively for employees are eligible for a subsidized loan via financial institutions to acquire land, buildings, and attached facilities.

Incentive name

Exemption from prefectural tax under the ordinance and non-uniform taxation, etc.

Incentive type Preferential Tax Treatment
Incentive target industries

Manufacturing, Information services

Outline of Incentives (Requirements etc.)

When newly establishing or expanding production facilities for production purposes, tax exemption and non-uniform taxation (reduced tax) are applied for enterprise tax and real estate acquisition tax based on the prefecture's ordinance. *For applicable municipalities only

Services for investment in Japan

Support for establishing a base Provision of facilities including a incubation office
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