FOCUS: Japanese Firms Keep Expanding in Germany’s North Rhine-Westphalia

Tokyo, Oct. 16 (Jiji Press)–For more than half a century, the western German state of North Rhine-Westphalia has been a magnet for Japanese companies, aided in part by its strategic location at the heart of Europe. Today, roughly 650 Japanese companies maintain a presence in North Rhine-Westphalia. The latest wave of entrants spans a wide spectrum, from startups developing industrial assist suits and infrastructure inspection robots to a long-established noodle producer. Germany’s most populous state with about 18 million residents, North Rhine-Westphalia stands at the heart of the economy of Germany, which has overtaken Japan to become the world’s third-largest economy. The state generated 871.9 billion euros, or about 149 trillion yen, in gross domestic product in 2024, about 20 pct of the national total. Carolina Kawakubo, head of the Japan office of NRW.Global Business GmbH, the state’s trade and investment promotion agency, said North Rhine-Westphalia bills itself as the “Heart of Europe,” noting its strategic location and high-quality transportation and logistics links to neighboring countries. She said Japanese companies have used the state as a gateway to the European market since the 1950s and continue to expand their presence there. Nishiyama Seimen Co., a time-honored company in Sapporo, northern Japan, which produces and sells fresh “ramen” noodles, will open its first overseas factory in Duesseldorf, the capital of North Rhine-Westphalia, in autumn 2027. In preparation, the company has launched trial production using the region’s harder water. “We want to create new styles of ramen that incorporate local food culture,” President Takashi Nishiyama said, adding that the Duesseldorf facility will serve as the company’s European hub. Nishiyama said Duesseldorf appeals for its easy connections to major cities such as Berlin and Amsterdam, the Netherlands. The city also has a major Japanese community and a “Little Tokyo” district, which he says offers a reassuring sense of familiarity. Innophys Co., a Tokyo-based startup that develops industrial assist suits, opened a representative office in June in Essen, the fourth-largest city in North Rhine-Westphalia. The company’s Muscle Suit series, designed to help users lift heavy objects, has attracted strong demand among European manufacturers amid aging workforces. Adoption is growing in Germany, Spain and France. To accelerate its expansion in Europe, Innophys plans to upgrade the Essen office eventually to a subsidiary. Company officials cite Germany’s relatively lower cost of living compared with London or Paris, as well as North Rhine-Westphalia’s large Japanese community, more than 10,000 residents, as key reasons for choosing the location. “Japanese startups tend to set their sights on the United States, but once they get to know Germany, more companies may start looking to Europe as well,” said Masaru Yoda, a director and resident representative. Hibot Corp., a Tokyo-based developer of robots for inspecting and repairing industrial infrastructure such as chemical and oil plants, established a subsidiary in Aachen, western North Rhine-Westphalia, in 2023. Chief Operating Officer Takeru Yamamoto highlighted the state’s favorable location, important for the land-based delivery of robots. Additionally, its dense network of universities and research institutions, including RWTH Aachen University with its cutting-edge facilities, is a key advantage for industry-academia collaboration, he said. An official from the Japan External Trade Organization noted that because the Ruhr industrial district is in North Rhine-Westphalia, Japanese-affiliated companies expanded into the state in step with the growth of Japan’s steel industry. “Today, Japanese schools and cram schools for Japanese residents are also in place, helping to create a virtuous cycle,” the official added. END [Copyright The Jiji Press, Ltd.]