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Regional Information Sakai city

Sakai: Japan’s leading industrial city

Your Regional Guide

  • Inquires about investment in Japan.

Industrial Policy Division, Commerce, Industry and Labor Department, Industrial Promotion BureauExternal site: a new window will open.

3-1 Minamikawaramachi, Sakai-ku, Sakai-city, Osaka Prefecture 590-0078
Tel: +81-72-228-7629 Fax: +81-72-228-8816
sansei@city.sakai.lg.jp

Sakai city

  • If you can't find the information you need, please contact JETRO .
  • 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 0.83 million
Labor force *1 0.39 million
Area *2 149.8 km²
GDP *3 *
Major industries Manufacturing (metal product, general machinery/tool and chemical), service, wholesale and retail
Wage *4
Initial wage for university graduates(Average)
*
Initial wage for college of technology/junior colledge graduates (Average)
*
Initial wage for upper secondery school graduates (Average)
*
Scheduled cash eanings (Average)
*
Land price(for 1m²) *5
Land price for industrial use (Average)
*
Land Price for Commercial Use (Average)
*
Number of Establishments *6 31,260
Number of Employees *6 302,156
JETRO office

JETRO Osaka

Regional Profile

Strength of the region's industries and economy

For a long time, Sakai has been known as a gathering place for many small and medium enterprises. To survive through the intense competition, companies had to vie with each other and constantly improve their technology and brand power. As a result, there are a cluster of highly renowned companies today in Sakai. In addition, shipment of industrial manufactured goods exceeds 3 trillion yen, placing them in the 9th place on a national level. They also place 15th on the national level in terms of the number of business establishments and number of employees, earning them a reputation of possessing a solid level of industrial accumulation. Also, from its historical context and its proximity to the market potentials of Keihanshin, there is a wide array of industries distributed in the area. Especially, the 2 manufacturing industries of metal goods and machinery and equipment for production purposes dominate the area, giving the industrial agglomeration a unique character. The waterfront possesses the petroleum industrial complexes which are also known as a prominent industrial site. In recent years, there has been a push to set up businesses with top-of-the-line environmental technology and advanced technology enterprises, starting with Green Front Sakai which contains factories that produce the largest LC panels in the world and thin-film photovoltaic cells as well as Sakai's large-scale solar power plant that is operated by The Kansai Electric Power Co., Inc. While there is a concentration of a wide variety of commercial centers and entertainment areas in the adjacent Osaka, the actual living environment is very pleasant with plenty of nature in the 100-kilometer radius.

Sakaihama

Foreign company(s) operating in the industry

Company name Corning IncorporatedExternal site: a new window will open.
Industry sector

Glass-making industry

Date of entry 2009
Motivation for selecting region

Locating in Green Front Sakai

Company name Amazon Japan Logistics, k.k.
Industry sector

Retail

Date of entry 2009
Motivation for selecting region

Perfect topography for distribution activities

Available incentives

With its establishment as the country's 15th ordinance- designated city in April, 2006, a great number of companies from a variety of industreis set up in Sakai, including petrochemical, energy-related, metalworking and mechanical processing industries, forming one of Japan's preeminent industrial clusters. Today, Sakai's accumulation of high value-added forefront industries is still progressing, with a wave of cutting edge industries and companies with advanced environmental technologies establishing new locations in the city.

Incentive name

Business Investment Promotion System

Incentive type 2Prefential Tax Treatment
Incentive target industries

Businesses which fall under the following industry classifications, as stipulated by the Japan Standard Industrial Classification (MIC Ministerial Notification No. 618 of 2007):
Manufacturing Industries; Electricity, Gas, Heat Supply, and Water Industries (excluding water services, and limited to businesses that are making use of new energies, as stipulated under Article 9 of the Law on Special Measures for the Promotion of New Energy Usage (Law No. 37 of 1995)); Information and Communications Industries; Transport and Postal Activities Industries (excluding postal (including mail delivery) services); or Scientific Research, Professional and Technical Service Industries (limited to those that fall under the classification on Scientific and Development Research Institutes).

Outline of Incentives (Requirements etc.)

Sakai has one of Japan's largest tax incentive programs, offerring reductions in the amount of Fixed Asset Tax (buildings and depreciable property), City Planning Tax (buildings), and Business Facility Tax for companies that open facilities in the city's waterfront area and inland area. *Companies must obtain approval for the facility plan by March 31, 2014.
+The amount of Fixed Asset Tax (buildings and depreciable property), City Planning Tax (buildings) and Business Facility Tax reduction is calculated in relation to the amount of investment (not including costs spent on land). No upper limit set.

  1. Details:
  • For investments of 60 billion yen or more: Tax reduced by 4/5 for 5 years
  • For investments of 30 billion yen or more: Tax reduced by 2/3 for 5 years
  • For investments of 1 billion yen or more: Tax reduced by 1/2 for 5 years
  • For investments of 100 million yen or more: Tax reduced by 1/2 for 5 years (for SMBs only)

Please note there is an additional requirement for investments of 30 billion yen or more; that at least 1/5 of the facility's employees be residents of Sakai City.

Incentive name

Urban Office Investment Promotion System

Incentive type Subsidies
Incentive target industries

Businesses which fall under the following industry classifications, as stipulated by the Japan Standard Industrial Classification (MIC Ministerial Notification No. 618 of 2007):

Manufacturing Industries; Electricity, Gas, Heat Supply, and Water Industries (excluding water services, and limited to businesses that are making use of new energies, as stipulated under Article 9 of the Law on Special Measures for the Promotion of New Energy Usage (Law No. 37 of 1995)); Information and Communication Industries; Transport and Postal Activities Industries; Wholesale and Retail Trade Industries; Finance and Insurance Industries; or Scientific Research, Professional, and Technical Service Industries (not including Miscellaneous Professional Services or Photographic Studios); Education, Learning Support Industries (not including Kindergartens; Elementary Schools; Lower Secondary Schools; Upper Secondary Schools, Secondary Schools; Schools for Special Needs Education; Supplementary Tutorial Schools; Instruction Services for Arts, Culture and Technical Skills; and Educational and Learning Support Services N.E.C); and Services (limited to Foreign Governments and International Agencies in Japan).

Outline of Incentives (Requirements etc.)

Subsidizes part of the rent/purchase costs of new offices opened in a designated area surrounding the central urban zone.
+Subsidy Details

  • Purchasing: 5% of land and building purchase costs (up to 6 million yen)
  • Leasing: 30% of rent costs for the first 3 years after locating in Sakai (up to 5 million yen)

Additional subsidies are available for cases where the newly opened office: houses the company's headquarter operations; is in the central urban zone; is a foreign affiliated company; or is a foreign diplomatic or international agency office.

Incentive name

R&D Functional Enhancement Support System for Small and Medium-sized Enterprises

Incentive type Subsidies
Incentive target industries

Manufacturing industries as stipulated by the Japan Standard Industry Classification (MIC Ministerial Notification No. 618 of 2007)

Outline of Incentives (Requirements etc.)

Subsidizes part of costs needed for the construction of facilities and installation of equipments for the enhancement of research and development functions of small and medium-sized enterprises (minimum investment of 10 million yen)

  1. Subsidy Details:

10% of eligible costs (100 million yen limit)

Related Link
Industrial location guide: Guidebook for Business Investment in SakaiExternal site: a new window will open.

Services for investment in Japan

Support for establishing a base Provision of facilities including a incubation office
Sakai City Industry Promotion Center

Acting as Sakai City's comprehensive support base for small and medium enterprises, the center offers various business support in the areas of “management support,” “industry support/company information,” “development of human resources,” “financial support,” cultivation of demand,” “events,” and “notice of spaces for rent.”

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