Contribute to the Creation of Urban Spaces Around the World through Global Collaboration: CW Business Initiatives

YKK AP manufactures window sashes and curtain walls for commercial buildings (hereafter referred to as CW), which are used in many symbolic skyscrapers around the world. YKK products have been adopted for buildings which need advanced technology and design features, such as the TOKYO SKYTREE ^Ⓡ and the Tenjin Business Center, which became a new landmark in the Tenjin area in Fukuoka Prefecture, in Japan. Not limited to Japan, they have also been adopted for buildings in various locales around the world, such as the 51-story CapitaSpring building complex located in the central office district in Singapore, which is the second-highest building in the country and boasts a height of 280 meters, and the Taipei Nanshan Plaza in central Taipei, which boasts a height of 272 meters.

In this issue, we will introduce the history of YKK AP’s foray into the CW business, as well as our initiatives for cooperation with overseas companies, which are aimed at further business growth.

(Kitano) At the time YKK AP entered this business, opportunities for entry were hard to come by in the domestic construction industry, which demanded achievements and previous examples of installations. Therefore, Singapore became the first stage for us to gain experience and build our track record. In 1976, YKK Industries (Singapore) Pte Ltd. (now YKK AP SINGAPORE PTE LTD.), our first overseas operating company, was established to manufacture and sell aluminum architectural products (primarily sashes for commercial buildings). While building up our track record by working on iconic buildings in Singapore, we also took on the challenge of designing and installing CWs for high-rise buildings overseas in the 1990s, including CWs for the tallest buildings at the time in Beijing, Hong Kong, and Taiwan, and steadily built up a history of achievements.

These achievements enabled us to receive orders for properties in Japan as well. Today, as a business that handles custom and tailor-made CWs, we manufacture products at four locations in Japan, the U.S., China, and Thailand, and sell them at our business locations across six countries and regions. The performance requirements for CWs are not uniform around the world. For example, different countries and regions require different technologies and performance for CWs to handle different conditions, such as needing strength in earthquake and hurricane-prone areas, or needing thermal insulation performance in cold climates. YKK AP supplies CWs which are suited to the local climate and culture, as well as the commercial distribution in each region.

In April 2023, the Global Curtain Wall Business Division was newly established to create further synergies by leveraging this strength through collaboration among domestic and overseas operating companies.

(Kitano) Large properties such as skyscrapers are difficult projects to manage stably because of the long construction period and the large peaks and valleys in sales. Therefore, the establishment of the division began with the goal of developing a global business model that would generate profits by integrating manufacturing, sales, and engineering —YKKAP's strengths—into a business that would enable stable management, including overseas operating companies, throughout the world.
The newly established Division has set forth a vision of "becoming the world's No. 1 CW supplier by making the aspirations of our stakeholders a reality through manufacturing, sales, and technology, based on our mission to contribute to the creation of urban spaces through architectural projects around the world." To realize this vision, we will laterally deploy our manufacturing, sales, and technological expertise around the world, promote the establishment of a global supply chain system and infrastructure, and ensure stable management.
A shortage of designers is another issue in this industry, which is shared the world over. CW designs, which are custom and tailor-made for each property, make performance and design very difficult because the facades required by the owner and designer are created from scratch, and there are very few people capable of doing these sorts of advanced designs. Therefore, we are also considering global collaboration to deal with this shortage, and the flexible sharing of design resources among operating companies.
There is also the problem of a lack of manpower. Japan is greatly affected by the declining birthrate and aging population, but even overseas, where there is a large working population, people are moving rapidly, so it is important to improve corporate branding and engagement in order to secure human resources. We will try to address these issues globally, as well.

In addition, in December 2023, the CW manufacturer YHS International Ltd.(YHSI) and its related manufacturing company, Siam Metal Co., Ltd.(SM) were added to the YKK family. Together with Thailand's largest company in the areas of CW design, manufacturing, sales, and installation, we will build a stable supply system on a global scale, pursue high quality, and further expand our CW business in the Asian region.

On December 1, 2023, we hosted the Global Curtain Wall Summit 2023 at the YKK 50 Building in Kurobe City, Toyama Prefecture. We met 65 managers and local employees from ten operating companies which are involved with the CW Business across nine countries and regions, to confirm that YKK AP will respond to the challenges and social needs of each country and realize our Purpose—“We Build a Better Society through Architectural Products”—in cooperation with the global community. We shared market trends at each location, as well as the strengths and challenges of each company, and discussions were held on common issues such as process management methods, global supply chain management, and digital utilization.
(Kitano) The summit was the first time for operating companies from around the world who are involved with CWs to come together, and it provided an opportunity for global collaboration to address challenges for achieving our mission that cannot be solved independently. After the summit, information exchanges among operating companies and site visits have become more active, and we look forward to the synergy effects in the future. It was an excellent opportunity, and we hope to continue the summit in the future.
Currently, the U.S. has products and business models for the U.S., while Asia has products and business models for Asia. However, by sharing and compensating for strengths and weaknesses among operating companies, and by creating and standardizing a platform for manufacturing, products, and design, we will take on the challenge of global architectural projects.