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First in Kladno

Until fairly recently wind was only thing moving across the fields that lie between the Výhybka and Kročehlavy districts in the central Bohemian city of Kladno and the nearby village of Velké Přítočno. Then at the end of the twentieth century construction equipment began to appear. This marked the beginning of a new era for this part of Kladno now known as the Kladno-South Enterprise Zone. One of the first investors here was also one the first Japanese investors in the country and the very first foreign investors in the city of Klado. This firm was Showa Aluminum, a company with almost a century of tradition behind it.

Show Aluminum was established in 1905 and is focused on the manufacturing of a wide range of aluminum products - everything from beverage containers to construction materials. Like many new ventures, the first steps leading to the construction of the Showa Aluminium Czech factory - a subsidiary of Show Aluminum - were not easy. The experiences of the local residents with the Kladno Steelworks quite rightly led them to be horrified at the thought of an aluminum smelter being placed in their "backyards." Hundreds of hours of consulting, explaining, persuading and compromising on both sides took place before construction could begin. The company was officially registered to do business in the Czech Republic on August 6, 1997 and in April of the following year they began construction of their 93,000-square-meter factory. Construction was completed in October and large-scale production on the first production line began in February 1999. From the middle of that year, the factory began to operate on a full three shifts and almost immediately reached its planned levels of production. Then came 2001 and Showa Aluminum merged with the firm Showa Denko, whose history dates back to 1939. This fusion allowed Showa Denko to expand its activities from petrochemicals, chemicals, electronics and inorganic materials; aluminum production now accounts for 35% of its business activities.

In spite of the fact that the Kladno factory was rated as the most successful foreign investment by a corporation in both 2001 and 2002 - or rather because of this fact, it was decided to immediately expand the factory by building another assembly line. The existing capacity thus expanded to 1.5 million heat exchangers annually. Given the fact that demand is once again outstripping the supply, this probably wasn't last such expansion here.

How have the 450 Czech employees at the factory come to terms with a style of management very different from ones we are used to? For some employees during the early stages of production here, Japanese management methods (developing analyses that consider all potential variants including their thorough implementation) together with a commitment to the job that is the norm throughout the world, were unsurmountable obstacles; there was clearly no place for these individuals at this factory. On the other hand, the Japanese employees working here had to come to terms with Czech work habits. While they don't really understand our "rough" planning methods, they do appreciate our abilities to improvise when an unexpected barrier is encountered. Today, following the initial shocks on both sides, it is possible to speak about a positive melding of both approaches leading towards the greater good. Czech employees have also learned the difference between simply "having a job" and "working." Continuous training in specific tasks ensures the highest standards of knowledge and with that, the guarantee of quality work. Salaries are closely tied to individual output. ISO certificates in the areas of quality control, environmental protection and job safety are a given.

The factory's management is of course first and foremost interested in the quality of their products. Given the tremendous competition in the field, it is quality that keeps customers coming back to the company. These customers include members of the Volkswagen Group, with its main assembly plant in Wolfsburg, Germany, Audi in Neckarlsum and Ingolstatd and Škoda Auto in Mladá Boleslav, the GM group's Opel plant Poland, Suzuki in Hungary and SAAB in Sweden and Finland.

The grounds of the Show Aluminium Czech factory are more reminiscent of a huge clubhouse set in the middle of a golf course than of an industrial plant. This "ecologically destructive factory" as it was called by opponents during the planning phase, treats its environment with great care and attention. Waste disposal is carefully monitored, waste separation and recycling (aluminum, paper, plastic and wood) are rigorously used and attention is paid to reducing the energy demands of the factory.

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