January 31, 2014 4:32 am JST

Japan's Fumakilla to shift foreign-product R&D to Malaysia

TOKYO -- Fumakilla, a leading Japanese producer of insecticides, has decided to move its base for R&D in products for overseas markets to Malaysia.

     The company will continue to handle product research and development for Japan at its Hiroshima plant. But for the 70 other markets in which it sells its Vape insecticides, insect repellents and mosquito coils, it will put an R&D base inside a factory of Technopia, a Malaysian insecticide manufacturer acquired in 2012 and turned into a subsidiary.

     Fumakilla makes the majority of its Vape products for global markets at Malaysian and Indonesian sites. Having an R&D base nearby will speed the process of taking products from planning to commercialization and accelerate global expansion.

     An R&D base in Southeast Asia, the largest non-Japanese market for insecticides, will enable the company to better tailor products to local needs. It should help in developing mosquito coils with fragrances more pleasing to people in the target markets, for example.

     Over the next few years, Fumakilla plans to broaden its marketing channels in Central and South America as well as Africa. Hot, humid regions are home to many kinds of disease-carrying insects, so the potential demand for its products is huge.

     Foreign sales account for more than 30% of total sales, a share Fumakilla hopes to raise to 50% within a few years.

(Nikkei)