Product Liability and Quality Assurance
As a wholesale company with a manufacturing function, we strive to provide security and safety to customers through the maintenance of the quality of products and merchandise we handle, as well as the development and improvement of products.
This section presents our quality control system and the education conducted for our employees on the knowledge of products and merchandise regarding safety.
Quality Control of products and merchandise
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
Implementing study groups for customers
Voluntary quality control activities (QC activities)
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.
Procurement and Provision of High-Value-added Products, Merchandise and Services
As a manufacturer and wholesale company, the Company develops and sells products and merchandise which satisfy customers. This section introduces initiatives of the Company to procure and provide products, merchandise and services.
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.
Group companies assumed the maintenance/repair field
|TECBUILD CO., LTD.
|TOKAI STEP CO., LTD.
Kanto, Hokuriku, Kansai,Chugoku, Kyusyu
・Rental of scaffolding
|・mid to high-rise buildings
・mid to high-rise buildings
|(Intermediate holding company) Nippon Scaffolding Holdings Co., Ltd.
|(Head office) Koto-ku, Tokyo
|Management of subsidiaries that provide scaffolding construction services
Production Innovation through Capital Investment in Factories
Communication with Shareholders
We offer fair, accurate and speedy information disclosure in an effort to have all stakeholders deepen their understanding of the KONDOTEC Group.
We recognize the importance of having shareholders gain an understanding of the KONDOTEC Group. For this reason, we bear in mind the need to offer careful explanations to shareholders as well as to ensure fair, accurate and speedy information disclosure.
Further, in order to contribute to improvement the corporate value of the KONDOTEC Group, we work to enhance our earnings capability by pursuing strategic investment by M&A and other means, as well as actively expanding business investment aimed at growth. At the same time, we take initiatives to improve capital efficiency.
Invigoration of the General Meeting of Shareholders
We regard the General Meeting of Shareholders as an important opportunity to communicate with shareholders, and in order to invigorate the General Meeting of Shareholders we strive to have as many shareholders as possible participate, understand the Company, and secure a sufficient period for examining proposals for the Meeting.
Bearing in mind the need to offer information disclosure that takes into account fairness, accuracy and timeliness, KONDOTEC organizes briefings for analysts by the President and individual meetings, participates actively in IR events for individual investors, and discloses IR materials via the Company’s website.
Comments, etc. obtained through dialogue with institutional investors and analysts are shared with the President and General Manager of Management Headquarters and reported to the Board of Directors as necessary.
Track records of dialogue with institutional investors and analysts
|Company briefings for analysts
|Main themes of dialogue
|Topics for the fiscal year, business environment, Medium-term Management Plan, etc.
Actual participation in IR events for individual investors
|Visitors to our booth
|Nikkei IR/Investment Fair 2022
|Nomura IR Fair 2023
Appropriate information Disclosure and Security
Co-existence with Local Communities
Operating site Opening Plan
Currently, we have 48 operating sites (as of March 31, 2023). Among sales activities areas, a precondition for selecting areas for operating site openings is that the area should be far away and have prospects for increased sales. We have expanded areas for operating site openings by way of branching out from relatively large-scale operating sites (branch class).
KONDOTEC makes sure to establish warehouses to store inventory at operating sites. Because we make deliveries, as for the location of operating sites, we select places near expressway ICs, or industrial parks that are unlikely to affect neighboring residents in terms of noise and traffic.
As for personnel, while several employees from branch operating sites are transferred at the time of a new operating site opening, we recruit several local people to help create employment in the community.
Response to disasters and contribution to them
With the inventories of necessary materials at the time of disasters at 48 operating sites across Japan, we have established a system to deliver necessary materials immediately even if the disaster is just local, thereby contributing to the security and safety of local communities.
Examples of disaster-related merchandise
[Flexible Container bag]
[Tarpaulin, sandbag, etc.]
[Net, sheet] and others
Examples for use of container bag
It is used in various scene such as transportation and storage of feed, fertilizer, resin pellets, industrial waste, etc., and as a large-size sandbag for rubble clearing, decontamination, and recovery work after disasters.
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.
|Implementation of safety driving training
|Upon the increase in traffic accidents involving new employees who were not accustomed to driving company cars, we implemented safety driving training at the time of new employee training, reducing accidents involving young employees.
|Implementation of no accident campaign
|Sending warning notice to all operating sites when an accident occurs at other sites.
Notifying monthly the cumulative number of accidents at all operating sites in the past year even if there was no accident.
For the site which had an accident, installing the safety driving support device to all company cars.
|Introduction of safety driving device (Telematics)
Installation of the drive recorder
|When dangerous driving (sudden braking, speeding, etc.) is detected by G Sensor/GPS, immediately give a warning notice by voice guidance to the driver each time while sending a notifying e-mail of dangerous driving to the head office.
|Implementation of Safety and Health Committee
Implementation of safety patrol
|Holding a Safety and Health Committee at head office and factories monthly.
Implementing safety patrols by employees to prevent industrial accidents.
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.
Human resources development and Diversity
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
|Those who newly took childcare leave during the period
|Return to work rate after childcare leave during the period
|Rate of those currently on childcare leave who started childcare leave during the period
|April 1, 2022
– March 31, 2023
|April 1, 2021
– March 31, 2022
|April 1, 2020
– March 31, 2021
|April 1, 2019
– March 31, 2020
|Rate of taking childcare leave
(April 1, 2022– March 31, 2023)
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.
To create a platform on which diverse human resources can take leading roles
Establishment of working
Non-discriminatory hiring policy and Support for diversification of employment formats
In hiring employees, we respect the diverse characteristics of individuals, including age, gender and nationality. Moreover, with the introduction of year-round recruitment (for 2008 recruits and after), we have been hiring employees with various careers, experience, etc.
Further, we offer support to athletes as well as appoint highly motivated contract workers as regular employees. In addition, we are expanding support for the participation of women in the workplace, and have appointed three female Directors in order to incorporate diverse values and perspectives into the business management of the Company.
Male-female ratio of new employees with main career track in the last six years and home
countries of international students
|Year of employment
|Nationality of international students
(other than Japan)
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.
（As of March 31, 2023）
|Ratio of mid-career hires in managerial positions
|March 31, 2025
|Ratio of women in managerial positions
|5％ or higher
|March 31, 2030
|Ratio of female managers
(excluding managerial positions)
|15％ or higher
|March 31, 2030
|Number of foreign nationals in managerial positions
|Maintaining of the status quo or higher
|March 31, 2025
（Notes）Number of foreign nationals in managerial positions only, as an indicator for the Group as a whole.
The three items other than number of foreign nationals in managerial positions are indicators for the Company.