Kyocera is a Japanese technology company with a history spanning over 60 years that has grown rapidly from its origins as a local ceramics manufacturer in Kyoto to become a global supplier of high-performance ceramics operating in four key markets: automotive, information and communication technology, medicine and healthcare, and the environment and energy sector. As a leading global supplier of high-performance ceramic components, Kyocera offers a wide range of materials, as well as cutting-edge technologies and services. KYOCERA Europe GmbH manages its business across 29 European locations and production sites from its headquarters in Esslingen am Neckar. J-BIG spoke with Rafael Schroeer, Managing Director of KYOCERA Europe GmbH, about the company’s philosophical foundations, its internationalisation history, European business, and the future of ceramic technologies.
J-BIG: Mr Schroeer, tell us about the beginnings of the company.
Rafael Schroeer: Our company was founded in 1959 by Dr Kazuo Inamori, who was 27 years old at the time. The road to establishing the company was not an easy one for him. In his younger years, he suffered from tuberculosis and, after graduating from university, he had great difficulty finding his first job. When he finally found a position at a financially unstable ceramics company in Kyoto, he had few opportunities to apply the knowledge he had gained during his studies. He therefore decided to start his own company in Kyoto, specialising in fine ceramics: Kyoto Ceramic Co., Ltd., now KYOCERA Corporation.
At the beginning, the company had 28 employees, seven of whom were close confidants of Dr Inamori. There was also start-up capital of around 3 million yen, thanks to investors such as Miyagi Electric. From the outset, Dr Inamori’s goal was to build the best ceramics company, first in the region, then in Japan, and finally worldwide. Since its foundation, Kyocera has grown strongly and has always remained profitable as a group, which we consider to be an important contribution to society.
J-BIG: How exactly has Kyocera developed since its founding?
Rafael Schroeer: One of our first customers in the Kansai region was Matsushita Electric, now Panasonic, to whom we supplied small ceramic tubes that were three-quarters closed as insulators for their tube televisions at the time. This enabled Kyocera to grow rapidly. Just one year after the company was founded, an office was opened in Tokyo, and only ten years later, in 1969, KYOCERA International, Inc. was established as a North American sales company.
The move towards internationalisation and America coincided with Silicon Valley’s first steps. Dr Inamori initially travelled to the US with a small team to seek out potential customers. At that time, the semiconductor chip industry was emerging and ceramic materials were in high demand for use as housing, base or carrier materials. At the same time, the automotive industry was experiencing a major boom worldwide. As a supplier of essential ceramic components, our company also benefited from this economic growth. This enabled us to establish ourselves globally quickly and sustainably.
J-BIG: So Kyocera was primarily a supplier, or did it also have its own consumer products?
Rafael Schroeer: When the consumer electronics sector also experienced a strong upswing shortly thereafter, Kyocera began marketing consumer products such as audio equipment, cameras and mobile phones in the 1980s.
J-BIG: When did you expand into Europe?
Rafael Schroeer: We entered the European market in 1971. After establishing a presence in the American market, it was only natural for our founder, who had planned global expansion from the outset, to turn his attention to Europe.
In order to set up a branch office, he approached Feldmühle, now CeramTec, in Plochingen – a direct competitor. Together, the two companies established an independent sales joint venture called Feldmühle Kyocera Europa Elektronische Bauelemente GmbH, or FM/KC for short. This is also why we are still based in Esslingen today, and not in Duesseldorf or Munich like many other Japanese companies. FM/KC sold products from both Feldmühle and Kyocera. Some Feldmühle employees transferred to the joint venture, followed by the first Japanese colleagues who came to Germany as expatriates.
J-BIG: How did the joint venture develop into today’s KYOCERA Europe GmbH?
Rafael Schroeer: The joint venture was successful for around 20 years. In 1991, FM/KC became KYOCERA Fineceramics GmbH, before being renamed KYOCERA Europe GmbH in 2020. The reason for the change of name is our broad product range. Ten different product divisions are represented at our European headquarters. These include the semiconductor, optical components and display departments, for example. As we operate in a variety of market areas that are not all obviously associated with fine ceramics, our business cards, which previously displayed ‘KYOCERA Fineceramics GmbH’, sometimes caused confusion among our customers. We therefore decided to change the company name to prevent such misunderstandings.
J-BIG: You mean that ceramics can often be used in places where customers don’t expect it? What makes ceramics better than other materials?
Rafael Schroeer: Exactly. Ceramics are characterised by their high level of precision, chemical stability, and resistance to high temperatures. Chemical resistance means they react only slightly to external chemical influences. Compared to metals used in the same places, an important advantage of ceramics is certainly their electrical insulation properties. Added to this is their thermal insulation capacity. Ceramics are also extremely hard. In the textile industry, for instance, using ceramics in deflection rollers results in less abrasion and, consequently, less dust.
Our customers are often unaware that ceramics can offer a solution to their problem, as they are only familiar with conventional solutions. As ceramics specialists, it is our job to integrate the versatile applications of ceramics into innovative solutions and then draw attention to them. This is also important in terms of society and the environment.
J-BIG: If customers don’t even know they need ceramics, how do they find you?
Rafael Schroeer: This presents a significant challenge to our sales department, but it also opens up a world of possibilities, with new applications constantly emerging. As a conservative Japanese company, we tend to market ourselves rather reservedly. Nevertheless, we want to demonstrate to the industry the potential of ceramics. We don’t just attend trade fairs to exhibit, but also to seek out potential customers. The great thing is that there is still a large untapped market for ceramic solutions. And we show our customers these new possibilities.
J-BIG: In which products are your ceramic components typically found?
Rafael Schroeer: Our product range extends from fine ceramic components for industry to consumer goods such as kitchenware and office supplies. As one of the world’s leading suppliers of high-performance ceramic components for the technology industry, Kyocera now offers over 200 different ceramic materials as well as state-of-the-art technologies and services tailored to the individual needs of the respective markets. Our focus is on four markets: information and communication, automotive, environment and energy, and medical and healthcare.
Products for information and communication include components for mobile phones, such as ceramic housings for semiconductor chips. We also manufacture print heads for thermal printing, which are used, for example, to print expiry dates on food packaging or on parking tickets. For the automotive industry, we supply glow plugs for car heaters, sensor technology for autonomous driving, and ceramic components for motor drives and charging current circuits in electric vehicles. Our components for injection pumps, for example, offer the advantage of minimising the amount of diesel injected. However, we not only supply products for the automotive industry, but also for the entire aviation sector: from tools for turbine construction to components in satellites. In the field of environment and energy, we develop system solutions including fuel cells. Our inkjet print heads for the textile industry are also significant, as they require significantly less water and ink than conventional textile printing. For the healthcare sector, we manufacture components for magnetic resonance imaging (MRI) scanners, among other things. We are currently setting up a new production facility in Waiblingen near Stuttgart for ceramic ball heads used in hip implants. The market for ceramic hip joint balls is growing worldwide, and we will serve this market from this new production facility.
J-BIG: In terms of figures: How many employees does KYOCERA Europe GmbH have, and what share of the total global turnover does it account for?
Rafael Schroeer: From our European headquarters in Esslingen am Neckar, KYOCERA Europe GmbH manages 29 sites, including production facilities. We employ around 1,600 people in total at Europe GmbH, including approximately 100 here at the headquarters and around 700 in Germany.
In terms of turnover, it is difficult to give exact figures, as we have ten product divisions, some of which contribute a larger share of up to 30 per cent to our business, while others contribute a smaller share of perhaps 5 per cent. The areas of fine ceramics, industrial tools, semiconductors and print heads are particularly strong, for example.
J-BIG: How do you perceive the current changes in the various industries, and how are these affecting your business?
Rafael Schroeer: The automotive sector in particular is undergoing major changes, which is why we are constantly adapting our product portfolio in line with developments in the industry. As is customary in the electronics industry, the goal is to pack as much performance as possible into as small a space as possible. This generates excessive heat that must be dissipated. This is why we develop ceramic solutions for cooling power electronics, among other things.
Another area is ticket printing, which will undoubtedly decline further in the future as tickets become increasingly available in digital form. Although we have not yet experienced a decline in demand for our thermal printing products, we expect this change to happen. However, there are also new business and application areas emerging. For example, inkjet printing opens up new possibilities for the automotive industry, such as customising a car’s paintwork to meet individual customer requirements.
J-BIG: Are there any completely new areas in which ceramics will be used in the future?
Rafael Schroeer: Since ceramics offer so many possible applications, it is difficult to say what else is yet to come. However, the focus is increasingly on ceramics in industrial applications, and we are involved in developing these new solutions across a range of industries.
A promising new area is additive manufacturing processes, i.e. 3D printing for ceramics. Normally, ceramics require a mould in which they are pressed and fired. However, this is usually not cost-effective for smaller production quantities. Additive manufacturing processes, which are more flexible and faster, are already being used for prototyping and small series production. In addition, 3D printing also enables the production of more complex geometries and almost any customer-specific shapes that would not have been so easy to implement before. Design modifications can be made in real time on the 3D CAD model.
Kostenfrei abonnieren
„J-BIG – Japan Business in Germany“ ist das E-Mail-Magazin rund um die Aktivitäten japanischer Unternehmen im deutschen Markt. Registrieren Sie sich kostenfrei!
J-BIG: With all these new developments, how does Kyocera work together internally on these issues? How do you coordinate with Japan, for example?
Rafael Schroeer: We maintain a very frequent and close exchange – both at management level and directly via our ten product divisions. We also attach great importance to direct contact, which means that we regularly travel to Japan and Japanese colleagues visit us here to discuss important issues.
In addition to Manfred Sauer and me, who are part of the management team, we also have a European President: Kunihiko Ueki. He reports to the Japanese headquarters on all European business matters. In the product divisions, expats often take on this role and are represented in almost every department. Over the years, our expat colleagues have played a vital role in mediating between Europe and Japan. Thanks to our Japanese colleagues here on site, we have a close connection to headquarters — not least because of the language.
However, wherever possible, the management of the product divisions is staffed by European personnel, which demonstrates that local management and localisation are important to our company headquarters too. As we are an intercultural company, it is important to us to communicate cultural differences to new employees. When I introduce new employees to the company, I explain the differences between Western and Japanese cultures. For example, during our introductions, I always explain that, as a Japanese company, we have quite long decision-making processes. Once a decision has been made, however, it stands. This means that patience is an important quality in our daily business. This is where our Japanese roots can be seen. Added to this is our corporate philosophy, which ensures global cohesion throughout our company.
J-BIG: What does the corporate philosophy entail?
Rafael Schroeer: Our founder, Dr Inamori, put employees and society at the heart of our objectives. He developed this approach following discussions with younger employees around three years after the company was established. The employees demanded higher salaries, protection against dismissal, and other benefits and securities. Dr Inamori spent several days talking to them and explaining what he wanted to achieve with Kyocera and its products. He convinced them of his vision for a globally leading, innovative company. However, the discussion and the employees’ understanding attitude prompted him to reflect on the company’s actual purpose. He asked himself whether expertise and products were everything. He came to the conclusion that, ultimately, it was all about the employees and society.
Our overarching motto is ‘Respect The Divine And Love People’. This approach is based on a Shinto proverb from Dr Inamori’s home region. However, this approach is not about a god or a religion. It is about respect for the natural order of things and the beauty that can be found in it. This positive inner attitude results in fair, honest and respectful interaction – first and foremost within the company, of course, but also with our customers, suppliers, business partners and society.
Kyocera’s purpose is encapsulated in the following principle: to create opportunities for the material and intellectual development of all employees, and to contribute to the advancement of society and humanity through unified efforts.
J-BIG: How does this translate into everyday working life?
Rafael Schroeer: Since our company was founded over 60 years ago, all our operations have been guided by ethical and transparent practices. This starts with product development, where our focus is on sustainability and social benefits. This is also reflected in our attitude and communication. We value transparency and honest, direct communication with both our colleagues and our partners. Fair business terms and conditions form the absolute cornerstone of everything we do. I believe that our good reputation and satisfied customers have been just as crucial to Kyocera’s growth and success as our innovative technology.
The positive impact of our philosophy can be proven empirically. In the 1980s, companies in Kyoto asked our founder, Dr Inamori, to share his knowledge. In response, he founded the Seiwajyuku Management School, which has a long history of success. Numerous companies have been able to improve their work and increase their sales by studying our corporate philosophy. As a result, our philosophy has become renowned beyond our company, throughout Japan and even worldwide.
J-BIG: In Japan, a culturally homogeneous country, it is probably easier for employees to align themselves with the company philosophy. How does Kyocera manage to convey its philosophical and social standards beyond Japan and maintain them in its global subsidiaries?
Rafael Schroeer: Actually, I think we’re doing a good job of this. Having been with the company for 22 years, I see every day how our employees live and breathe this philosophy, not only in Japan, but also in our branches around the world — including here in Germany, of course. This is particularly evident in the fair and respectful way we treat each other. The key to this is that this approach is modelled from the top down — by top management and the functions directly below them.
Special training courses are provided to help the management team fulfil their function as role models. For instance, executives attend seminars on management philosophy. There are also training courses for all employees, where we come together to discuss the various principles of our corporate philosophy.
Every new employee receives an introduction to our company and our values. At Kyocera Europe, we have our own Philosophy Education department. It is very important to us to inspire our employees with our corporate philosophy. The fact that our philosophy has its own department, rather than being housed in HR or Admin, gives it greater visibility and makes it more noticeable. I head this department myself, as I have had very positive experiences with our philosophy and would like to give our employees the opportunity to experience a positive change in their lives as well.
J-BIG: What has changed in your own life since you started working at Kyocera and learned about its philosophy?
Rafael Schroeer: Our corporate philosophy includes a formula for success. It is based on three factors that are multiplied together: first, there is attitude, second, there are skills; and third, there is effort. Each of us has skills and contributes more or less effort. These two factors are always positive. However, attitude can be positive or negative. And if it is negative, then the whole result is also negative. That opened my eyes back then.
In 2003, shortly after joining the company, I attended one of the company’s philosophy seminars (which was actually led by one of the company’s co-founders) for the first time. The training made me realise that I often had a negative attitude in my everyday life at that time. I often got upset about everything and everyone. In my mind, everyone else was incompetent and I was the only one who knew how things should be done. I also transferred this negative energy to my family. The company philosophy basically woke me up. I began to look at the big picture. By rethinking my attitude and adopting a positive outlook, my life changed dramatically for the better. Today, I realise that my marriage would probably have failed if I hadn’t been led to rethink my attitude through my work at Kyocera. So I owe this company much more than just my professional development.
J-BIG: How do you see the future of Kyocera here in Germany?
Rafael Schroeer: Ceramics offer many possible applications, which means that new opportunities for innovation are constantly emerging. The aforementioned additive ceramics, i.e. 3D printing of ceramic components, is a good example of this. Another exciting area that is currently emerging is Underwater Wireless Optical Communication, or UWOC for short. This is a state-of-the-art technology that enables fast and interference-free data transmission in underwater environments. It uses light-based signals, typically lasers or LEDs, instead of conventional acoustic or high-frequency methods.
However, a key challenge remains to raise awareness in Germany and Europe and show the industry what ceramics can do. We still see many opportunities here and therefore purchased two additional production sites in Germany around five years ago. With our broad product portfolio and long-term commitment, we are confident that we are well equipped for the future in Germany. Our goal remains to continue contributing to the development of society through innovative ceramic solutions – in line with our corporate philosophy.
