A wood processing specialist continues to take on challenges and expand in the global market with proven technology

135 years of traditional craftsmanship, augmented by firsthand verification of its advanced technologies

“Please come back for another interview in five years. Things are going to be getting even more interesting,” says KOSHII Jun, the fifth-generation president of KOSHII & Co., full of enthusiasm for the company’s future.

Founded in 1890, KOSHII & Co. grew its business with preservative-treated lumber as its signature product. KOSHII Junzo, the founder and an industrialist who also managed a bank and railroad line, brought back copper-based preservative technology from Scandinavia and launched the business of treating lumber for utility poles and railroad ties.

Entering the 1950s, the company faced a temporary crisis when concrete began to be used for utility poles and railroad ties. But by pivoting to lumber for houses, it was able to pursue growth with major homebuilders as its customers. The company then went into the business of “ply metal,” a composite of wood materials and metals for use in the interior panels of trains including the Shinkansen bullet train, and floorboards for trucks.

The company has continued refining its technologies for wood preservation, termite-resistance, and fireproofing. From its earliest days, the company has been ahead of the curve in adopting advanced overseas technologies, but only after thorough verification by in-house and university researchers.

“Don’t trust anything that you haven't solidly verified yourself. That line of thinking has been consistently passed down over generations in this company. It can take several years to verify a technology, but we place the highest priority on responsible manufacturing,” says KOSHII. Since he took the helm in 2005, aged just 40, he has been guiding this company steeped in history and tradition through times of dynamic change.

Deep trust in Japanese companies in the U.S.
Afforestation project in Malaysia

KOSHII currently has high hopes for the company’s U.S. operations. A key strength of KOSHII & Co. has been its global connections. It established a U.S. subsidiary in New York State in 1989 after a leading Japanese heavy machinery manufacturer client won an order for local railcar production.

Its U.S. factory currently employs about 40 people－including U.S. hires and those dispatched from Japan－manufacturing railcar panels and floorboards. The products are used on trains operating in cities including New York, Chicago, and Boston. Although the company faced challenges from low-cost Chinese competitors entering the market, it has been back on track in recent years, including participation in a large New York City subway project. It plans further expansion supported by JBIC financing.

Reflecting on the company’s success overseas, KOSHII explains: “Japanese companies are highly trusted in the U.S. for not only delivering quality, but also meeting deadlines and upholding promises. Trust in this tradition, which was built by the Japanese manufacturing sector as a whole, is a powerful force. On top of this, the U.S. is meritocratic. I feel that there is a climate where companies are selected based on quality and integrity rather than nationality.”

KOSHII & Co. is also operating in Southeast Asia, establishing a business in Borneo, Malaysia in 1988. To meet surging demand for residential plywood for homes, it formed a joint venture for a complete local procurement to manufacturing operation, with the finished products exported to Japan.

Since 2005, the company has also engaged in a large-scale afforestation project in Borneo, planting around 700 hectares of fast-growing acacia trees. These days, it is reforesting in parallel with harvesting mature trees. KOSHII & Co. has also established an office in Shanghai, China to explore new business opportunities.

Overseas operations develop human resources, opening up the future growth of employees

“Our overseas locations are positioned as places for talent development, where our young Japanese employees can take on challenges. We make it a point to provide motivated staff with opportunities to push boundaries.”

With a wealth of life experience, including working in the U.S. in his late 20s, KOSHII repeatedly mentions “valuing people” and “teamwork.” As the fifth-generation head of the company, he values above all else this people-centered corporate culture, which encompasses employees, business partners, and the local community and runs deep in the KOSHII & Co. DNA. In addition to reforming the personnel system, he is committed to advancing the UN’s Sustainable Development Goals (SDGs) for the good of people and the planet.

“Technology is important, but I believe that nothing is more important than having each individual on the team find meaning in their work. I am always thinking about ways to inspire them and what is needed for them to speak proudly about their work to their families and friends.”

KOSHII feels that his efforts are being rewarded, not only through the boost in overseas business and progress made in developing new technologies, but also in the growth of his employees who hold the future in their hands. “The involvement of various people is what makes work meaningful.” While valuing people, the company will continue to take on challenges on the global stage.