KAGA ELECTRONICS CO.,LTD.

In August 2024, I had the opportunity to visit our new plant in Mexico. Although I have toured factories around the world before, this marked the first time that nearly 300 employees came out in full force to greet me. Along with a considerable level of surprise, I keenly felt everyone’s passion for the new factory’s success.
The array of state-of-the-art surface mounting machines in the factory was truly spectacular. While net sales for the fiscal year ending March 31, 2025, are expected to be approximately ¥10 billion for air-conditioning equipment and automotive-related products, in three to four years we expect net sales to reach ¥50 billion. Employees are being brought from the current factory, which was built in 2017, with plans to expand the workforce to 1,000.
This new factory focuses on unit assembly and electrical equipment substrates, but in collaboration with a partner company, a joint venture factory with functions that include parts molding and sheet metal processing has also been established next to it. Our aim is to expand our range of functions in Mexico and contribute to our customers’ manufacturing as an EMS base capable of supplying not only North American markets but also markets in Central and South America.
Furthermore, on-site solar power generation was introduced by installing solar panels on the building’s rooftop. In addition to reducing electricity costs and environmental impact, this system will help ensure preparedness against power outages, an issue in Mexico, which has a fragile electricity infrastructure.
At the welcome event, we explained the Kaga Electronics Group’s philosophy of “actively giving back to employees as business expands and profits are made,” encouraging the local employees.
In addition to Mexico, the Kaga Electronics Group has EMS bases in China, Thailand, Indonesia, Malaysia, and Vietnam in the ASEAN region, and the Czech Republic and Türkiye in Europe, with India also rapidly expanding its business. We are very pleased that this has further strengthened our foundation for manufacturing around the world.

The EMS business also stems from “Everything we do is for our customers,” which has been our cornerstone philosophy since the Company’s founding. With the motto “Never say ‘no,’” we started out as a handyman business in Akihabara. As our eputation grew, more and more customers came to us and, regardless of business type, if we were asked for a part that was unavailable, we would even cross the ocean to find it for them. Through the ongoing repetition of this process, we began to not only build a lineup of essential parts to meet the needs of the era, but also to perform kitting and convert them into units. This ultimately led us to take up monozukuri, or manufacturing.
When a customer makes a request, we “move first.” This has become engrained as our corporate culture and permeates every corner of the organization. And, it is this approach that has allowed us to stay ahead of the changing times. Naturally, in order to fully comprehend our customers’ requests and move faster than our competitors, we must, above all, be attentive.
Of course, not everything we do works every time. Even when we work hard, there will still be times when we fail. For example, even though we had been traveling overseas for parts, it was our own TAXAN brand of PC monitors that prompted us to establish a
local subsidiary and become focused on the overseas business of ready-to-use products. In the 1980s, the monitors sold well in the European and U.S. markets. Later, although the Company was forced to withdraw from the market due to an influx of nexpensive competing products made in Southeast Asia, the salespeople and engineers trained in this Englishspeaking business were positioned to pioneer the EMS business. People who have gained a wealth of experience and developed their skills have always
proven an asset to the Kaga Electronics Group.

We believe that Kaga-ism, which has its roots in the concepts of “Everything we do is for the customer,” “Never say ‘no,’” and “Inventory is a liability,” is applicable to customers in all types of businesses and industries, even amidst the ever-changing times. I believe that opportunities still exist for the Kaga Electronics Group to make a further leap forward.
As we work toward becoming a “¥1 trillion company,” we will continue to take on new challenges, such as creating new businesses and reorganizing the electronic components trading industry, and more new associates will join us in the future. Moreover, if we all firmly adhere to the tradition of upholding Kaga-ism together, we will be able to overcome any difficulties that may come our way.