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 vol.8  【Czech Republic】INSTAR ITS Japan, Inc.
Last update: June 28, 2010

▲President Mr.Inaoka

INSTAR ITS Japan, Inc.
Parent company headquarters: Czech Republic
Founded: May 2008
Address: 1059 Awazu, Kakogawa-cho, Kakogawa City, Hyogo Prefecture
Line of business: Energy management solution and sales of related hardware, networks and software in the Asian region

               
 INSTAR ITS Japan, Inc. was established in 2008 in Kakogawa City, Hyogo, as the first overseas subsidiary of INSTAR ITS Ostrava (“Ostrava”). The parent company Ostrava, founded in 1991 in Czech Republic, is a company that specializes in energy management systems. INSTAR ITS Japan, the Japanese corporation of Ostrava, is mainly engaged in solution sales and maintenance of energy management systems.

The following are excerpts from an interview with Mr. Mutsuo Inaoka, President of INSTAR ITS Japan.


Background of Japanese company formation:
I had my first encounter with INSTAR ITS Ostrava when its president visited Japan for market research. In those days, Ostrava had shown a major interest in the Japanese market, about 10 times larger than that of Czech where it is based, and the company was considering establishing its Japanese office to explore business opportunities in the energy field in Japan. For that purpose, Ostrava thought that it was essential for them to gain trust by tying up with a Japanese company, and they approached my consulting company with an offer for a joint venture. At present, INSTAR ITS Japan is a 100% subsidiary of Ostrava, but the Czech and Japanese companies will hold 50% of shares respectively later this year.
Ostrava’s products have been sold in six countries, including the U.S. and Germany, through local sales agents. This is the first time for the company to establish its base of operation in Japan. Ostrava has highly valued Japan, compared to other Asian nations, for its highly-developed infrastructure, strong morals and high standard of cleanliness. The prime reason why Kansai was chosen as the location of INSTAR ITS Japan is that my consultant company was in Kakogawa City. Another reason is that it is easier for us to build up a network of connections here in the Kansai region, where many clusters of plants and companies are congregated, including Harima Industrial Area.
 
 Support utilized for setting up business:
I understand that Ostrava gained support from JETRO’s local office in Czech Republic for the marketing research conducted prior to opening its Japanese branch office. We did not seek support when setting up the subsidiary, but after that, our company was introduced on the website of JETRO. It was really helpful for us because it is quite important for a new company to increase name recognition.
 
Business Activities:
One of our main products is “IS EBERGIS,” an energy management system to reduce CO2 emissions, the target customers of which are plants and workplaces whose annual energy consumption amounts to over 1,500 kl in crude oil equivalent, covered in the revised Rationalization in Energy Use Law. Japan is a leading country in environmental business. However, energy cost information management systems have not been diffused sufficiently yet, which we think would be a big business chance for our company. Our systems help plants and workplaces identify any inefficient process at the site and notify managers of it by alarm, enabling them to take prompt action for cost reduction. Furthermore, online reporting and trend analysis – robust features of our systems – enable more efficient production management and more efficient operating procedures.
The Hatoyama Administration aims to reduce CO2 emissions by 25%. To achieve this objective, more importance should be placed on the visualization of business management, which we believe will serve as a spur for us to expand our business.
 
   

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【Contact Information】
Ministry of Economy, Trade and Industry, Kansai Bureau
International Investment Promotion Division
Address: 1-5-44 Otemae, Chuo-ku, Osaka, 540-8535
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