15 Years On: Fukushima Industrial Parks Show Successes, Struggles

Fukushima, March 9 (Jiji Press)–With Wednesday marking 15 years since a major earthquake and tsunami as well as the ensuing severe nuclear accident devastated Fukushima Prefecture, the 21 industrial parks built in coastal municipalities in the northeastern Japan prefecture to revitalize the region are exhibiting varying degrees of success. Of the industrial parks established in 15 coastal municipalities to attract companies and create employment, some have been able to lure many startups with generous support measures while others have seen companies withdraw and factories being abandoned before completion. Following the triple meltdown at Tokyo Electric Power Company Holdings Inc.’s Fukushima No. 1 nuclear power plant, caused by the March 11, 2011, major quake and tsunami, Japan’s central government and the Fukushima prefectural government have worked to revitalize local industrial foundations by offering lavish incentives. Such measures include subsidizing up to four-fifths of the cost of constructing new and additional plants mainly in areas for which the state’s evacuation orders related to the nuclear disaster have been removed. Over 10 drone- and aerospace-related startups moved into an industrial park in the city of Minamisoma after the Fukushima Robot Test Field, one of the country’s largest drone and robot development and test facilities, opened adjacent to the park in 2018. The Minamisoma city government signed agreements with 35 financial institutions and venture capital firms by 2022 to facilitate loans to the startups, which were also drawn by eased regulations linked to development and testing. When large-scale tests are conducted, the city government coordinates with regulatory authorities and holds briefing sessions for local residents in advance. One source lauded the local government’s efforts, saying, “(The city) has understanding and acts quickly.” Meanwhile, the Tanoiri industrial park in the village of Kawauchi, which opened in 2017, is struggling to attract firms, with only two of its seven sections being utilized. The remaining sections contain a factory left by a company that went bankrupt in 2023 and the foundations of another firm’s plant that were abandoned during construction. “Incentives for moving to disaster-stricken areas attract mainly companies that are financially weak,” Kawauchi Mayor Yuko Endo said. “The risk of bankruptcy and withdrawal is unavoidable.” Kawauchi is struggling to compete with nearby municipalities to attract companies, as it is more difficult to access from urban areas and faces challenges in securing financial resources for support measures that can set the village apart from other local governments. To counter this, the village is considering acquiring abandoned factory facilities to provide to other firms. “We are determined to promote the use (of the industrial park),” Endo said. END [Copyright The Jiji Press, Ltd.]