Quality Control of products and merchandise

From the perspective of providing safe, quality products, all of our factories have achieved ISO9001. In addition, to further enhance the quality of products we handle, the Quality Control Section has been established in our factory and the section performs strength testing and inspections on a day-to-day basis in an effort to increase safety of products.
Further, the SDGs Promotion Department, acting under the direct supervision of the President, is engaged in auditing quality assurance matters.

ISO9001 certification

Break testing machine in
Manufacturing Headquarters

Information on the scope of application of ISO 9001

Acquisition of certification of JIS and industry group

Response to complaints

In the event that a complaint is raised, we first has the sales representative meet with the customer and prepare a report. When there is a need to investigate the cause, if the case pertains to a product manufactured in-house, the Quality Control Section in our factory takes the necessary steps, while if the case pertains to procured merchandise, we take steps jointly with the supplier. We have a mechanism to share complaints whereby holding a meeting on complaints (irregularly held) and cases that should be shared on a corporate-wide basis are addressed to the entire organization by issuing a sales report or guidance to draw attention in order to share information.

Technical strength through co-creation with group companies

Mechatro Laboratory (former Mechatro Engineering Co., Ltd.) came under KONDOTEC INC. by purchasing business in January 2019. We engage in product development and development of labor-saving lines by adding the technological strengths of Mechatro Laboratory to CHUOH GIKEN Co., Ltd. which is our group company. Thus far, CHUOH GIKEN Co., Ltd. has developed brace manufacturing lines in the factory and automated chain cutters for chain slings.
We will continue striving to improve the production capacity for the Company’s products using synergies with group companies.

Stance for Security and Safety

We believe that by providing knowledge about handling when we provide products and merchandise to customers, they can use them more securely and safely. For that purpose, we prescribe the handling methods in the comprehensive catalogue and pamphlets, etc., issued by the Company, and clearly describe the matters to note and the standards for disposal.
Moreover, for our employees to obtain the correct knowledge about products and merchandise, we offer many opportunities to learn by: conducting training on our core products of lifting equipment and temporary construction materials, steel related materials, and products manufactured in-house, and by holding study groups for new products by inviting suppliers (manufacturers), etc., among others.

↑Examples of pages on usage method described in the “Lifting equipment　catalogue” issued by the Company

Implementing study groups for customers

In order for products and merchandise of the Company to be used safely, we host study groups across Japan responding to requests from various industry groups including customers.
Technical service staff of the Company (belonging to Tokyo/Osaka head offices) become lecturers to provide information about safe lifting operations at study groups. We would like to contribute to our customers’ efforts to create safe environments by letting as many people as possible understand about safety.

Voluntary quality control activities (QC activities)

We engage in quality control activities (QC activities) at every manufacturing division of factories for the purpose of improving quality control systems. We strive to develop an understanding about quality control throughout the whole factory by hosting presentations of activity results annually, to award divisions which make excellent presentations and share proposals for improvement through presentations among others.

Presentations of QC activities in Kyushu Factory

Internally certified qualification “Lifting equipment advisor”

For the purpose of public relations for our corporate image as a lifting equipment manufacturer and improvement in employee knowledge of products and merchandise and abilities to propose and sell, we introduced the “Lifting equipment advisor” system as an internally certified qualification in 2015.
Employees can be qualified as a “Lifting equipment advisor” after external safety/hygiene education, obtaining public qualifications, participating in internal three-day seminars, and passing the written examination.
By the end of March 2023, 63 employees had become qualified as lifting equipment advisors, and engage in not only supplying lifting equipment but also providing their knowledge at operating sites across Japan.
Moreover, while Technical service staff at Osaka/Tokyo head offices have been in charge of seminars on lifting equipment for people outside the Company, with lifting equipment advisors coming into existence study groups on lifting equipment can now be held all over Japan.

Provision of Products, Merchandise and Services responding to Changes in the Times and Needs of Customers

In addition to providing necessary materials for the construction of hard infrastructure, the Company deals with materials for recovery/reconstruction used at the time of disasters and any other items needed at construction sites.
After its foundation, the Company sold hardware for vessels, and subsequently started dealing with construction materials during the high growth period; we currently provide more than 50,000 products and merchandise. At the New Merchandise Committee held every other month, sales staff propose to deal with new products and merchandise based on the needs of customers, generating numerous hot selling products and merchandise from the adopted proposals.
At present, we also operate the “Tsurikata” inspection site for lifting equipment to simplify the individual management and inspection of merchandise centered on cargo handling equipment.
Moreover, we not only sell products and merchandise but also proactively disclose information and provide services on the Company website.
Along with our online catalog and technical information, we have opened an online showroom to display new products and merchandise, drawings, instruction manuals, and usage videos. we will continue to not only sell products and merchandise but to also provide high-value-added services, such as disclosing software to support the selection of wire ropes according to the weight of lifted loads.

Cultivation of Suppliers and Efficient Purchase, Management and Delivery

To make bulk purchases of merchandise from suppliers, the Company has logistics center at two bases in Japan (Osaka and Ibaraki) as well as one base in China. We are reducing the cost of purchase by delivering in-demand merchandise to operating sites using in-house delivery systems after purchasing them in bulk from manufacturers in Japan and abroad ,and storing in logistics center.
Moreover, we always take a stance of reviewing costs by having established the Delivery Division to constantly find better suppliers as well as concluding OEM production contracts with manufacturers.
Furthermore, we can search on our own system for the status of inventories at logistics center or individual operating sites. As a result, by grasping the status of inventories at our own sites in real time, we can measure the timing for our own sites to purchase inventories as well as immediately reply to inquiries from customers.
For deliveries, we have a system to deliver to customers safely and quickly by employees of the Company or cooperating companies.

Entry into the new fields

We are actively undertaking entry into new fields in which we expect growth. To expand our business in the field of maintenance and repair of aging social infrastructure, we have acquired three companies engaged in scaffolding construction (see table below) and established Nippon Scaffolding Holdings Co., Ltd. as an intermediate holding company to oversee them. Working around this core, we will expand the areas we handle by sharing the know-how of the companies, which differ in their business areas and the construction properties in which they specialize, and will otherwise aim to achieve synergies among them.
At the same time, there is a tendency in the construction industry to replace the main material of iron with aluminum, which is suitable for weight saving. Therefore, the demand for aluminum is expected to rise. Given this condition, KONDOTEC has acquired KURIYAMA ALUMINUM Co., Ltd., which is involved in the manufacturing and development of aluminum extrusions, in aiming to expand our product and merchandise line up with new materials.
Going forward, we will continue striving to enter new fields by utilizing our wide range of business fields as the KONDOTEC Group.

Production Innovation through Capital Investment in Factories

We invest in production facilities based on the annual plan to improve quality and productivity at factories. In FY2019, we newly established a plant on the premises of Shiga Factory which realized labor-saving through the introduction of robots, aiming to promote work style reform and solve labor shortages.
At the plant, we strive to improve productivity by changing the processes undertaken by workers manually erenow to welding, transportation and assembly by robots. If productivity is improved, we plan to expand the system horizontally to other plants.
The Company’s Medium-term Management Plan from FY2024 to FY2026 plans to make capital investments of about 9 billion yen for the replacement of production equipment and relocation/rebuilding of bases.

Shiga Factory No. 2 Plant
Address	Hino-cho, Gamo-gun, Shiga
Total floor area	About 4,095m2
Investment	About 440 million yen
Operation start date	April 1, 2019

Introduced Robots

Actual coverage(July 2023)

Actual participation in IR events for individual investors(FY 2023)

Safety Measures and Work Style Reform

Risk Control for Disasters and Others

For Employees’ Health, Safety and Hygiene

We are taking the following initiatives to ensure the safety and health of employees. Representative matters in need of safety measures in conducting business activities include receiving and shipping operations in warehouses, marketing activities, delivery of products and merchandise, and production activities in factories.

Work Style Reform and Work-Life Balance

We aim to create a corporate culture where employees can have “a fulfilling individual life and involvement in society,” while promoting work style reform to enable them to do “worthwhile and high-quality work” efficiently.
In 2014, we conducted training for all supervisors aiming for more efficient operations and less overtime work, and have been promoting work style reform since then, on the condition of improved earnings. Since 2017 led by head office, we have been engaged in reform for efficient operations by reviewing various operational rules, decreasing collections by sales staff, reducing internal documents, and reviewing approving authority.
As an indicator to realize appropriate work-life balance, we have established a paid vacation acquisition target for the company, and internally publish the figures for each section to promote the acquisition.

Policy on human resources development

To contribute to sustainable growth and long-term enhancement of our corporate value as a “proposal-oriented company” that leverages our employees' diversity by creating a work environment where all employees can engage in active roles with motivation, we have set "respect for the individuality and values of employees from diverse backgrounds" and "creation of a working environment in which all employees can fully display their capabilities and work with a sense of purpose" as basic policies.

Enhancement of remuneration and benefits programs

With the introduction of remuneration and benefits programs, including those listed below, the Company strives to improve motivation for employees while increasing corporate value in the medium and long term.

＜ Employee incentive system ＞
In 2013, we introduced an employee stock ownership plan (ESOP) as a program that offers shares to employees who have been promoted. Upon termination of the ESOP in 2021, we replaced it with an employee restricted stock program. By issuing shares as an incentive to employees, we encourage employees to boost their motivation and morale toward enhancing performance.

＜GLTD (Group Long Term Disability income indemnity insurance)＞
Since October 2019, we have introduced the “GLTD (group long term disability income indemnity insurance)”, which indemnifies a certain revenue up to 60 years old (retirement age) for employees who become unable to work for a long period of time due to illness or injury. While widespread in the U.S., the GLTD program is a relatively new program in Japan, which was permitted in 1994. With the introduction of GLTD, we have covered a long-term “Risk of becoming unable to work“ to eliminate uncertainties for employees to work, striving to improve their motivation.

Childbirth by employees and spouses

In order for employees and spouses to give birth and raise children with peace of mind, we have prepared a handbook compiling child-raising-related laws and various internal systems so that employees can freely view and obtain it from the internal portal site. We present various systems including a shortened working-time program which can be taken until a child graduates from primary school, which is longer than what is legally mandated, and clarify the contact point for consultation and thus endeavor to have employees engage in childbirth and child-raising with the peace of mind.

Handbook for Childbirth and Return to Work

Diversity - Basic principle

KONDOTEC recognizes the importance of establishing a working environment in which employees with diverse backgrounds fully demonstrate their respective abilities and are motivated to work, in order to contribute to creating an affluent society as stated in our corporate philosophy. For this reason, we take initiatives to promote diversity and a good work-life balance, and make efforts to nurture a corporate climate where employees can work with lively.

Male-female ratio of new employees with main career track in the last six years and home
countries of international students

Diversity-related indicators and targets

Based on our recognition of the need to ensure diversity, particularly among the managerial-position staff who play central roles in management, we have set the following best-effort targets for ratios of mid-career hires, women, and foreign nationals in managerial positions.

Appointment of a female executive members

3 out of 14