Expanding business globally

New technologies and trading opportunities drive Moriroku's global expansion

Moriroku Chemicals set up a representative office in Israel over two decades ago and is the only trading company in the country that specializes in chemicals and plastics. Initially the company started importing Israeli technologies to Japan, but eventually it broadened its business to export new Japanese technologies to Israel. Based on its policy of growing together with customers through new technologies and materials, Moriroku Chemicals has been making full use of the Group's resources to build its business in Israel and grow on a global scale.

The Dead Sea initiates expansion to Israel

Israel is situated between the east coast of the Mediterranean Sea and the Dead Sea on its western border with Jordan. Actually, it was the Dead Sea that first attracted Moriroku Chemicals to doing business in Israel because it is a source of bromine, magnesium, and other chemical elements that are used in Japan as plastic additives and pharmaceutical intermediates.

In fact, Israel is the world's largest producer of bromine, an important raw material for making plastics flame retardant. Many plastic materials are flammable, which can cause fires to spread. Therefore, to safely use these plastics in products, brominated fire retardants are mixed in with the materials.

Moriroku Chemicals initially procured brominated fire retardants for plastics from Israeli manufacturers, and then set up a representative office in the country in January 1998. As a foothold for advancing into Middle Eastern and European markets, the office procured a large amount of chemical and plastic materials and products. The office also developed compounds made of plastic materials exported from Japan and brominated fire retardants through a tie-up with an Israeli company, and began exporting them to Europe.

The company's representative office in 1998Only three Japanese companies were operating in Israel when Moriroku Chemicals established its representative office in 1998 with just three employees dispatched from Japan. At that time, however, demand for specialty chemicals and highly functional plastic was strong in the country.

Image: The company's representative office in 1998

Following new business trends in Israel, Japan and beyond

Israel's cultural and economic ties with Europe and North America have been deepening, exemplified when it became the only Middle Eastern country to join the Organization for Economic and Co-operation and Development in 2010. Today, people are taking notice of its advanced IT, electronics, and biotechnology industries, as well as emerging businesses on the periphery of those industries. Israeli has successfully earned a reputation as a model country for supporting entrepreneurship, and has established a presence in the global market through its economic and technological achievements.

Israel's gross domestic product is on par with other developed countries, and with population growth of about one million people over the past seven years, its economic expansion is projected to continue in the future. The country's population is less than one-tenth of Japan's, however, so while the domestic market is promising, it is also small. Furthermore, the country has no large chemical manufacturer, so it depends on imports of resin raw materials.

Through its representative office, Moriroku Chemicals not only imports brominated fire retardants from Israel to Japan but also supplies advanced Japanese technologies and materials to Israeli companies. By providing a wide array of products, including robot components, highly functional lenses, irrigation equipment, pharmaceutical chemicals, agrochemicals, flavorings, and auto parts, Moriroku Chemicals has been contributing to Israel's industrial development.

Example of exporting plastic bottles from Japan to Israel


Recognized a need for better quality

The representative office discovered that improving the quality of bottles used for home sparkling water makers developed by an Israeli carbonated water manufacturer had been difficult.


Proposed a solution

Recognizing the need for better quality from the Israeli company, the office consulted with a major Japanese chemical manufacturer to devise a method for improving the bottles using new materials in cooperation with Moriroku Chemicals.


Developed, tested, and shipped products

Highly functional bottles made with a new resin technology were successfully developed after a series of performance assessments.

Example of exporting natural additives from Japan to Israel


Identified market players

The representative office targeted the needs of globally popular cosmetic manufacturers in Israel. Many have been established in the country because the mud of the Dead Sea is regarded as a valuable source of ingredients for cosmetics around the world because it is very rich in minerals.


Proposed natural additives

Through the representative office, Moriroku Chemicals offered naturally derived additives to Israeli-based cosmetic manufacturers and contributed to the development of new products.

Routine collaboration with Israeli companiesIsraeli companies generally have a strong interest in developing new technologies. Moriroku Chemicals regularly proposes new solutions as a means to create new businesses and collaborate with established businesses.

Image: Routine collaboration with Israeli companies

Aiming for further growth as Israel's economic development continues

In recent years, Israel has achieved marked economic growth, and the country's economic center of Tel Aviv has attracted worldwide attention for its thriving high-tech sector, earning the city the nickname of the "Silicon Valley of the Middle East." The country has built up a large defense industry amid a history of disputes in the Middle East, but its military technologies are increasingly being applied in consumer products. With the globalization of the economy, entrepreneurship is currently booming in the country, led by its niche high-tech industry. These trends have caught the attention of global investors, and funds from all over the world have been flowing into Israel.

Travel time between Japan and Israel is becoming shorter, with three direct flights between Tokyo and Tel Aviv planned in 2020. Moriroku Chemicals has played a role in bringing the two countries together as one of the first Japanese companies to do business in Israel. By leveraging the competitive advantages it has gained through that experience as well as its track record of closely working with Israeli companies, Moriroku Chemicals is striving to create new opportunities for business in the future.

Israel's economic developmentIsrael's economy grew by about 3.3% in 2017. Although the economy slowed down temporarily following the 2008 global financial crisis, the country returned to the growth track by the latter half of 2009, and has consistently achieved solid growth since then.

Image: Israel's economic development

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