Launching Multidrill to Overseas Markets

After the commencement of production in Japan in 1984, the launch of the Multidrill into overseas markets began with the export of the product. The sales expansion efforts in the European market were based in Duesseldorf, Germany. Sumitomo Electric Hartmetall Gmbh (SHG) was established in 1981 as the sales base for cutting tools in the European market. Supplying the Multidrill to the European market began almost at the same time as in Japan. Moreover, the Multidrill sold earlier and more widely there than in Japan. One of the background factors in enabling this was the presentation of the Multidrill at a trade fair in Germany held when the domestic production of the Multidrill began in Japan. The world’s first cemented carbide drill bit for steel machining attracted a great deal of attention. Additionally, the machining environment at manufacturing sites in Germany also had an implication. High-rigidity equipment that can withstand the use of the Multidrill is effective in taking advantage of the true performance of the Multidrill. The proportion of such equipment was high in Germany. When manufacturers tested the product, in many cases they decided to adopt it immediately. The Multidrill received an overwhelming reputation primarily from major automakers and auto parts manufacturers. Against this backdrop, SHG expanded the sales by establishing a full-fledged service framework, such as enhancing the variety of stocked items more than in Japan.

As Multidrill users steadily grew primarily in Germany and in other areas of the European market, our efforts to shift to local production gained momentum. Around this time, signs were emerging of an end to the Cold War between East and West, and European nations were exploring initiatives for the European Community (EC), the predecessor to the present European Union (EU). To respond to growing demand for the Multidrill in Europe and also to overcome the tariff walls of the EC region, building a local production system without delay became a challenge. In 1989, the Sumitomo Electric Group purchased part of a factory owned by a cutting tool manufacturer in Lauchheim, a town in southern Germany, and commenced Multidrill production. It was the first overseas manufacturing site in the Group’s tool business. Jun Okamoto took the post of the manager of the local plant. He currently serves as a Senior Managing Director at Sumitomo Electric Tool Net, Inc.

“At the time, Lauchheim was a town with a population of around 6,000. The German staff did not speak English in everyday life. How to establish good communication with them and manufacture products of stable quality was a major challenge. Despite difficulties arising from differences in national character and business customs, I worked patiently and managed the staff to ensure mutual understanding. Moreover, although the Multidrill enabled high-efficiency and high-precision machining at a global level, users were looking for higher specs and performance. In short, we were required to respond to needs for custom-built items. I worked not only on the management of the manufacturing site, but also on accurately identifying user needs and reflecting them in the production site,” says Okamoto.

Based in Germany, the Multidrill gained a prominent presence throughout Europe. Based on its explosive sales in Europe immediately after its launch into the market, a similar approach was also taken in the United States. The current high global reputation of the Multidrill started in Germany.