[Special Feature: Corporate Sociality in the SDGs Era] Gotaro Asakura: SDGs Promoted by a Long-established Dyeing Factory

2022/06/06

Our company is a dyeing and finishing factory founded about 130 years ago in 1892 in Kiryu City, Gunma Prefecture. The local Kiryu City is known as "Nishijin in the West, Kiryu in the East," and celebrated its "300th Anniversary as a Textile Capital" a few years ago. It is a city that has flourished in the textile industry since ancient times. Our company also started with the processing of local Kiryu silk fabrics. Our roots lie in a rice milling business that used a waterwheel from the agricultural water flowing through the premises, and then transitioned into the "finishing business," using that power to beat silk fabrics to give them a luster. At that time, the fabric woven in Kiryu was exported to Europe and the United States as a major export product of our country. Reflecting the prosperity of those days, more than 200 sawtooth-roof factories still remain in the city today.

Subsequently, our company expanded into the dyeing business to dye fabrics, establishing a two-company system consisting of Asakura Orimono Seiri Gomei Kaisha and Senpu Kogyo Co., Ltd. However, due to World War II, employees were sent to the battlefield. The two companies merged, and the site of the Senpu factory was requisitioned by the government.

After the war, we shifted our focus from the dyeing and finishing of natural fiber fabrics such as silk, wool, and cotton to synthetic fibers like rayon, nylon, and eventually polyester. Furthermore, in the 1970s, we shifted production from weaving to the processing of synthetic knits with elastic polyurethane blends. To avoid the wave of overseas production relocation of fabric processing to places like Taiwan and Thailand, we pivoted our business toward niche stretch knit processing ahead of our competitors. In 2001, we began inkjet print processing using design data instead of printing plates, which was rare at the time. We have consistently expanded into niche business fields using cutting-edge processing technology to differentiate ourselves from competitors.

Currently, we perform dyeing and finishing centered on synthetic knits, processing materials for competitive swimwear used by Olympic athletes, golf wear, and industrial materials. Our company excels not only in dyeing fabrics but also in applying high-value-added finishes such as water repellency, water absorption, and antibacterial/deodorizing properties. In particular, since the 1990s, we have applied strong water-repellent finishes to competitive swimwear fabrics, contributing to lighter weight and minimized water resistance. We have quietly supported domestic athletes wearing swimwear made from our processed fabrics as they won numerous medals at world competitions such as the Olympics.

In our core business of dyeing and finishing, fabrics are dyed by boiling them in high-temperature water (100–130°C), and the fabrics are washed and dried in the pre- and post-dyeing processes. This requires the use of large amounts of fuel, electricity, and water resources, and it is our destiny that we must impact the natural environment to carry out our business. Therefore, we have established our corporate philosophy as "striving for environmental conservation and effective use of resources," seeking harmony with the environment. While what a small to medium-sized enterprise like ours can do in the dyeing industry with limited business capital is very restricted, I will introduce the energy-saving efforts we have undertaken over a long period of time.

• Construction of an underground hot water pit: Reusing medium-temperature water (approx. 40°C) used in heat exchangers for raising and lowering the temperature of dyeing machines → approx. 6% fuel reduction

• Fuel change (heavy oil to natural gas) → 30% reduction in CO2

• Elimination of accumulators (high-temperature steam tanks) → 3.5% reduction in gas usage

• Reuse of steam condensate (for boiler water and processing water) → 7.7% reduction in gas usage

• Thorough thermal insulation (dyeing machines, steam piping valves, boiler valves, etc.) → 1% reduction in gas usage

• Adoption of high-efficiency boilers and special pressure-reducing valves → 5% reduction in gas usage

• Introduction of inverters to blower fans in drying equipment (power reduction) → approx. 10% reduction in power usage

• Switching factory lighting to LED → 1% reduction in power usage

• Change to high-efficiency small motors

• Consolidation of compressors within the factory

These various measures have been implemented intermittently over more than 20 years. The effect has been a reduction in total fuel usage by more than 20%, and for electricity usage, we were able to reduce the contracted power from a maximum of 920 kWh to 590 kWh, a reduction of more than 35%. As a secondary effect, the production site, which used to be a "scorching hell," saw its room temperature drop by several degrees due to energy saving and thermal insulation.

Furthermore, staking the company's future, in 2018 we changed our factory wastewater treatment (2,000 tons per day) from public sewerage to in-house treatment. We cleared strict environmental standards to implement our own wastewater treatment, allowing us to discharge directly into agricultural waterways. As a result, residents downstream who raise fireflies can still see them lighting up beautifully in the summer, just as before. Additionally, we use microorganisms for biochemical treatment when purifying wastewater, and the approximately 1.5 tons of sludge generated daily is ultimately reused as agricultural fertilizer.

In the past, long working hours and low wages were common in Japan's manufacturing industry. Our company was no exception; before the high-growth period, we operated with a two-shift system of 12 hours each, worked half-days on Saturdays, and forced long hours for the lowest possible wages. Employees who could no longer endure this formed a labor union in 1970, the year I was born, and began repeated tough collective bargaining sessions every season for pay raises and bonuses. In my childhood, the image of my grandfather, the president at the time, and my father, the negotiator, exhausted from collective bargaining that lasted until midnight, left a strong impression on me.

Moving away from such unproductive confrontations with employees and aiming for labor-management trust and employee participation in management, my father, Yasushi Asakura (1967 graduate of the Keio University Faculty of Law, President from 1987 to 2007), launched numerous measures immediately after becoming president to build a "comfortable workplace." The main measures taken by the previous president are as follows:

• Abolition of time cards: Putting the stance of trusting employees at the forefront, managing attendance through an attendance register.

• Established an equal pay system for men and women (ahead of the Equal Employment Opportunity Act).

• Implemented re-employment after retirement starting in 2001, ahead of the law (guaranteeing employment until full pension eligibility).

• 116 annual holidays despite being a small factory (improving the reproduction of labor and increasing production efficiency).

• Abolition of the daily-rate monthly salary system and establishment of long-term sick leave (up to one year) (creating a workplace where people can work with peace of mind).

• Introduction of a retirement benefit system comparable to large corporations and the introduction of a 401K system to maintain it.

While this was backed by an era when management was stable during the bubble period, in today's era of zero growth, some things like the retirement benefit system have become a heavy management burden. However, thanks to those efforts, the average length of service for employees now exceeds 20 years. In 1998, the average length of service for women was about 7 years, but now the length of service for women (average 21.4 years) exceeds that of men (average 20.3 years).

Furthermore, succeeding the policies of the previous president, I have implemented the following measures since taking over.

• Introduction of a new wage system that evaluates "hardworking employees" rather than seniority-based wages.

• Early implementation of nursing care leave and childcare leave (applicable to both men and women, childcare leave up to age 3. Short-time and flex systems available until elementary school entry. Also, the establishment of two days of special leave for a spouse's childbirth).

• Enabling the taking of paid leave in hourly units.

Through this series of measures, female employees who have built careers at our company have begun to use the extended childcare leave, and resignations due to childbirth have plummeted. After childcare leave, they return to their original workplaces, making full use of their careers, and the current return rate is 100%. Since taking childcare leave is seen as "mutual support" among colleagues, a culture of pleasant cooperation has taken root. Currently, 37 women are working here, with female leaders active in each workplace, and a female executive was appointed last year. Furthermore, this series of measures was recognized by the Ministry of Health, Labour and Welfare (MHLW), receiving the MHLW Minister's Award for Career Support Companies in 2015, and in 2017, we were certified as a three-star "Eruboshi" (the highest rank at the time) under the Act on Promotion of Women's Participation and Advancement in the Workplace (the first in the prefecture and the 8th small to medium-sized enterprise nationwide).

We are a local small to medium-sized enterprise and cannot provide high salaries or modern offices like large corporations. If that is the case, how can we ensure our employees continue to work happily in a "comfortable workplace"? We are tackling this as the most important point of our labor policy. In particular, to increase employee motivation and aim for a transparent workplace, during the thrice-yearly personnel evaluations for raises and bonuses, we literally conduct sincere personnel interviews for over 40 minutes per person, communicating the expectations and guidance of the evaluator and the thoughts of the evaluatee.

Additionally, as part of the education for our precious employees, we use ISO to conduct business audits of departments other than one's own (about half of the employees have obtained internal auditor qualifications) and conduct employee education that translates the company's management policies and each department's policies into the work of individual employees, striving to improve employee levels. In today's world where dual-income households are the norm, I believe that by creating a workplace where people can work with peace of mind while raising children or caring for family members, we have been able to achieve an average length of service exceeding 20 years, even in an era of high turnover.

The dyeing factory industry is one of "commission processing." Major yarn manufacturers and trading companies handle all the arrangements for "yarn" and "weaving/knitting" according to the needs of apparel brands, and our business model is simply to "process according to the ordered instructions" from those manufacturers and trading companies. Because we can obtain orders without having to understand market needs ourselves or engage in sales to develop markets, it is certainly easy and efficient. On the other hand, it is difficult to obtain information on end-user needs and the market, and because we are subcontractors, we have no price-setting power. Therefore, while it was very efficient during the era of expanded reproduction, we have continued to suffer from the relocation of production overseas, excessive price competition, and a decrease in order volume that intensified after the collapse of the bubble economy.

Therefore, we also started a "direct sales" business to find customers and sell fabrics ourselves, but it was extremely difficult for our company, which has weak sales capabilities, to sell featureless fabrics that could not be differentiated from others. Because of this, we re-evaluated our strengths and differentiating technologies. We identified these as inkjet printing using digital technology, which was rare in the industry at the time, and the "water-repellent technology" used in Olympic competitions. We decided to combine these technologies to develop and start selling the water-repellent furoshiki "Nagare."

As a result, the water-repellent furoshiki, which maintains its water-repellent function even after 100 washes and can even carry water, became a hot topic in various media and a popular product.

Furoshiki is a wrapping cloth that has been used in our country for over a thousand years, but in addition to wrapping things, it can be used in multiple ways, such as hanging, spreading, or easily tying into a bag. By adding a powerful water-repellent function to this convenient furoshiki, our company has made new uses possible, such as wrapping wet items or protecting one's body or precious bags from the rain. The material used is a normal soft fabric used for blouses and the like; even after water-repellent processing, the texture of the fabric remains, and it can carry as much as 10 liters of water. However, since the weave of the fabric remains as is, it can also be used as a shower if squeezed.

The designs of the furoshiki are not just traditional "Japanese patterns" but include about 60 varieties ranging from modern designs to slightly pop styles to match contemporary fashion. We have received high praise particularly from women, and rather than using them as "furoshiki" in the traditional sense, there are many cases where they are tied into eco-bags or town bags, or used as fashion accessories. Furthermore, in today's world where natural disasters occur frequently, they are well-received as disaster prevention supplies, and we receive orders from the Tokyo Metropolitan Government and private companies as disaster prevention furoshiki. Additionally, they are popular as OEM furoshiki with original customer designs for corporate anniversary gifts and various novelties, and we accommodate small-lot orders.

Furthermore, due to its convenience and functionality, it received the Director-General of the Small and Medium Enterprise Agency Award at the 2011 Good Design Awards. Additionally, in 2021, we achieved a Guinness World Record in a time trial where 100 people relayed 100 liters of water over 100 meters using buckets made from furoshiki.

Our company also develops and sells various daily necessities utilizing our "water-repellent technology." Specifically, these include arm covers that protect from "wetness" during washing or gardening, highly breathable raincoats, and the stylish town bag "AZUMA," all of which are products that make daily life more comfortable and convenient.

The products we develop and sell are mainly functional items that leverage our strengths such as "water repellency," but all of them are Japanese-made products that can be used with peace of mind and are also products aimed at breaking away from disposable culture. To begin with, our "water-repellent technology" started in the early 1980s with the development of diaper covers to protect babies' bottoms from "stuffiness." Diapers at the time were made of vinyl or rubber with an "oshime" (cloth diaper) placed inside to absorb waste, which caused babies' bottoms to become stuffy and develop rashes. Our water-repellent diaper covers, which were breathable and did not leak waste to the outside, were immediately accepted by mothers of that time and came to occupy more than half of the market.

These were replaced within a few years by disposable diapers that came from America, but subsequently, our water-repellent technology came to be used for processing competitive swimwear fabrics used in the Olympics. Additionally, our water-repellent furoshiki "Nagare," which uses that technology, had often been used as furoshiki bags, but this trend strengthened even more when the charging for plastic shopping bags began in 2020, and the simple-shaped furoshiki is also active as an eco-bag. To save the trouble of tying a furoshiki into a bag, our company developed and launched the town bag "AZUMA," derived from furoshiki, this year. Furthermore, during the COVID-19 pandemic, we developed functional masks such as the "AG Shield Cool," a cool mask that is comfortable even on hot days and has antibacterial effects using silver ions, which have been very well received.

On the other hand, fabric products can be washed and used repeatedly, and they also have the characteristic of being very environmentally friendly. Furthermore, we are currently proceeding with the development of processing for recycled polyester and nylon, and are also advancing the development of more environmentally friendly technologies. In the future, our company will continue to develop functional products by adding various additional functions, starting with our specialty of water repellency, to fabrics, and we will strive to create convenient products that allow consumers to lead richer and more comfortable lives.