METI's Subsidy Program for Domestic Site Location (Second Public Offering)

May 10, 2012

The Ministry of Economy, Trade and Industry is accepting applications for a subsidy program aiming to promote new investment, maintain and create jobs in Japan, and improve the site location environment for companies in Japan by providing measures to encourage companies to locate their production bases domestically. These measures will be offered for production bases in the fields of parts and materials, which constitute the core part of the supply chain and cannot be substituted, as well as high added value growth sectors, which will create employment in our country.
Below is information on the second public offering of this subsidy program. Applications are accepted from April 6th, 2012 to no later than June 1st, 2012.

METI's Subsidy Program for Domestic Site Location (Second Public Offering)

The Ministry of Economy, Trade and Industry is accepting applications for a subsidy program aiming to promote new investment, maintain and create jobs in Japan, and improve the site location environment for companies in Japan by providing measures to encourage companies to locate their production bases domestically. These measures will be offered for production bases in the fields of parts and materials, which constitute the core part of the supply chain and cannot be substituted, as well as high added value growth sectors, which will create employment in our country.
Below is information on the second public offering of this subsidy program. Applications are accepted from April 6th, 2012 to no later than June 1st, 2012.


1.Purpose:
This subsidy program is an implementation of the policy based on the Basic Guidelines for Reconstruction in Response to the Great East Japan Earthquake (instituted by the Reconstruction Headquarters on July 29, 2011) and the basic principles stipulated in Article 2 of the Basic Act for Reconstruction in Response to the Great East Japan Earthquake (Law No. 76, 2011), with the purpose of facilitating reconstruction in the aftermath of the Great East Japan Earthquake. The programme aims to improve the logistics and facilities of the business locations of companies operating within Japan as well as encourage new investment to maintain and create employment by providing domestic site location subsidies to the production sites in the fields of parts and materials that constitute the core part of the supply chain and cannot be substituted, and high added value growth sectors, which will sustain future employment in our country.

2. Applicable Companies
Private enterprises

Business A (Businesses that meet both the below criteria (i) and (ii).)
(i) Businesses that are engaged in the manufacturing of parts and materials that constitute the core of the supply chain and cannot be substituted.
(ii) Businesses that maintain pre-earthquake levels of domestic employment for the coming four years within the departments responsible for the projects that are to be subsidized (hereafter referred to as "department with a project to be subsidized"). [If the businesses are small to medium sized companies that are investing in the earthquake affected areas* or that meet the requirements of Subsidy requirements C which will be detailed later (hereafter referred to as "small to medium sized group companies"), the businesses must maintain pre-earthquake levels of employment for the coming four years within the departments responsible for the projects in the production site to be subsidized.]
* Earthquake affected areas refer to specified affected regions as stipulated in Article 2, paragraph 3 of the law on special financial aid and subsidy in response to the Great East Japan Earthquake.

Business B (Businesses that meet the below criteria (i), (ii), and (iii). However, please note that small to medium sized companies will only be required to meet criteria (i) and (iii).)
(i) Manufacture of products or parts related to the field that is expected to have growth potential.
(ii) Businesses that are engaged in the manufacturing of products or their parts related to the fields that will lead to the creation and expansion of new markets through significant investment.
(iii) Creation of stable and lasting domestic employment (If investing in earthquake affected areas, or if the added value is improved through the introduction of innovative manufacturing processes in the final assembling of products, or if the business is a small to medium sized group company, the domestic employment levels of the department receiving the subsidy must retain a level at least equal to employment prior to the earthquake.)

Business C (Businesses that meet the below criteria (i), (ii), and (iii)
(i) Joint ventures operated by groups of multiple small to medium sized companies.
(ii) Businesses that come under Business A or B.
(iii) Businesses that possess the advantages of grouping in order to create a consolidated, efficient, and strong organization to overcome fierce international competition and as a means of coping with the strong yen.

※ Please find the more detailed information on requirements from the link below.

3. Subsidy rate:
Companies except SMEs: Up to 1/3 of applicable costs
SMEs: Up to 1/2 of applicable costs
Small to medium sized group companies: Up to 2/3 of applicable costs

4. Project Implementation Period
After subsidy approval is received, businesses must immediately undertake their projects (by the end of March 2013 at the latest) including placing orders for facilities or research required for the projects and must, in principle, complete the project by the end of March 2014.

5. Programme schedule
1) Application period: 6th (Fri) April, 2012 to 1st (Fri) June, 2012
2) Screening period: 1st (Fri) June 2012 to early July 2012
3) Private announcement of selection results: Early ~ Mid July 2012
4) Submission of application—Approval of subsidy: Mid-July 2012

6. Application
Please submit applications to the below address, via postal mail. Please note that applications should not be submitted to the Bureau of Economy, Trade and Industry.
※Application forms are provided only in Japanese and must be submitted only in Japanese.
These application forms are available at the METI's website below(only in Japanese).

Domestic Site Location Promotion Subsidy Head Office
1-6-5 Marunouchi, Chiyoda-ku, Tokyo, 100-0005
Nomura Research Institute, Ltd. Management Innovation Consulting Department
(Personnel responsible for Domestic Site Location Promotion Subsidy Head Office) Nakamura, Nakata and Kuriuzawa
TEL: 03-5533-2905 FAX: 03-5533-2691
*Telephone contact hours: 9:30 to 12:00 and 13:00 to 17:00
E-mail:kokunai-ritti-jimu@nri.co.jp

※The application must arrive no later than noon on Friday, 1st June 2012 (Japan Standard Time)

7. Notification of results
After selection results (successful or otherwise) are finalized, the Head Office will immediately notify applicants of the results.
* Successful applicants will be asked to complete the Head Office's procedures required to facilitate receipt of the subsidy.

8. Websites
Please see the following links to find details of the programme.
Application Guidelines (Japanese Only)
METI: http://www.meti.go.jp/information/data/c120406bj.html
English Application Guidelines
JETRO: http://www.jetro.go.jp/en/invest/newsroom/announcements/2012/20120427255.html

9. Inquiries
JETRO London
T) +44 (0)20 7421 8300
F) +44 (0)20 7421 0009
Email) Ldn_invest@jetro.go.jp