Local factory to key Mazda supplier to Mexico: an aluminum casting maker still taking on new challenges

The foresight of a century-old company, from cookware to auto parts

Manufacturing is changing, and so is the foundry industry, which is now entering a phase of utilizing IT. In his April 2023 inaugural address as the fourth-generation head of Hiroshima Aluminum Industry, Representative Director & CEO KOMATSU Rio announced a policy of focusing on the development of “light blue personnel,” a combination of the blue-collar workers at the production sites and white-collar workers who leverage IT.

It is said that casting, in which products are made by pouring molten metal into molds, is a form of metalworking that dates back to Before Common Era. The company’s stance of always looking to the future has been passed down from generation to generation since its establishment.

Founded in 1921 as a store that sold hardware and daily utensils, the company expanded into the casting business after realizing the lightweight and durable properties of aluminum, which was still rare at that time. Using aluminum casting, the company began manufacturing hagama, a cooking pot for rice with a broad brim that makes it easier to place on the cooking stove.

But when Hiroshima, the company’s birthplace, was devastated by the atomic bomb in 1945, everything was lost, including the life of the founder and the plant. Still, the company maintained its innovative spirit. As gas stoves spread, the second president and eldest son of the founder utilized the company’s aluminum casting knowhow to create the Musui^®, a cooking pot which does not require water and remains popular today.

Hiroshima Aluminum was capable of handling all kinds of casting, including the die-casting method, in which molten aluminum is injected into a mold and instantly molded, and sand mold casting, in which the aluminum is poured into a mold made of sand. The company’s technological prowess came to the attention of major automaker Mazda, which is also based in Hiroshima. Given the progress in motorization and the trend for lighter weight vehicles, Mazda was searching for a partner that could manufacture aluminum parts.

“Our company was hoping to enter the market for automobile parts, so you could say that it was lucky timing. Improving technical capabilities and getting business opportunities go hand in hand. I heard that the company worked to meet demands by further raising the level of its technological prowess,” says KOMATSU, recalling the challenger spirit that has been with the company since the beginning.

Early establishment of the Vietnam plant and expansion to Mexico with an eye on the North American market

The third president of the company, who took over in 1995, expanded operations further, and broadened its market beyond Mazda. The company also began to handle large die-casting; it now manufactures several thousand aluminum parts.

While establishing itself as a Mazda partner manufacturer of aluminum casting parts for automobiles, the president at the time also quickly turned his eyes overseas. Amid increasing globalization, in 2002, the company was ahead of its industry peers in establishing a die-casting production base in Vietnam. While steadily building up expertise in overseas business development, it then expanded operations to Mexico in 2010, anticipating robust North American automobile demand.

At that time, KOMATSU was in charge of the department procuring raw materials, and he made numerous trips to Mexico in preparation for the launch of the plant there. Though it seemed difficult at first, when he got to Mexico, he learned that Japanese competitors were already operating there. This fired up his challenger spirit, and he thought, “We can do it, too.”

That experience is fueling his actions now: “It made me keenly aware of the importance of going and getting firsthand information, and seeing the situation with my own eyes. As countries radically differ in their way of doing things and national character, it is important to carefully assess the situation in each country.”

In Mexico, Hiroshima Aluminum has established another production base through a group company, and made use of financing from JBIC to further grow its business in the country. The company is also expanding operations to China and Thailand, and KOMATSU says that he “senses potential” when he sees how young employees have matured through their assignment overseas.

Amoeba Management and technological innovation overcome times of change

“Casting is an old technology and so old ways remain common in the industry. Since you couldn’t actually see what was happening when molten metal was poured into a mold, the high defect rate of finished products (compared to other industries) was widely accepted. But now, with the use of sensors and simulations, that can be improved. We need to take a broad perspective and change what we have considered to be normal, updating our thinking.”

KOMATSU is also focusing on changing the mindset of each individual employee. With the goal of having them think and act like management through their own initiative, in 1996, the company introduced “Amoeba Management.” This is a management method created by Kyocera’s INAMORI Kazuo, wherein a large organization is divided into small autonomous groups and everyone pools their strengths to achieve goals.

KOMATSU also values dialogue with his employees. On his regular visits to the production sites, he makes it a point to speak with staff on the shop floor instead of the plant executives. “When I went to a production site the other day, I was pretty happy when my employees spoke about what their goals are,” he admits a little shyly.

The automotive industry is now entering a period of change with the shift to electric vehicles. As the need intensifies for lighter automotive parts, and aluminum materials are being replaced by plastic, Hiroshima Aluminum is also focusing on processing plastic products and is continuously technologically innovating. “Our accumulated past experience is what shows us the future. Since we can’t just leap into the future, I believe we have to keep our feet firmly planted on the ground, and look ahead, which will point out the direction to take.”

While maintaining a challenging spirit but also humility, he will steadily navigate the turbulent currents of the times.