Sun cream from a photographic laboratory

The Dutch economy is not restricted to Schiphol and Rotterdam. In this series, the Nederlands Dagblad newspaper travels throughout the country to gauge economic activity in the provinces. Today, Part 7: How Fuji is thriving in Brabant.

By Arend Pleysier

Somewhere beneath the Kempen area of Brabant, is the source of an underground river that meanders throughout the entire province. Bavaria taps into it to brew beer, while Coca Cola makes soft drinks from it and Fuji Tilburg utilises the crystal clear waters in the manufacture of photographic film. This mere stream was in fact, one of the determining factors in the Japanese firm’s decision to establish its largest overseas manufacturing plant in Brabant, back in 1982. With a workforce of some 1400, Fuji has overtaken Philips as the province’s largest industrial employer. Brabant, in fact, has the Netherlands’ highest concentration of high-tech companies.

Fuji was the first Japanese organisation to establish premises in the Netherlands. However, several other Japanese firms soon followed in the film manufacturer’s footsteps, to set up businesses in this southern province.

Good accessibility, proximity to Germany and the various ports of Rotterdam, an ample labour force with either college or university qualifications; there were plenty of reasons for Fuji to set up premises in Brabant.

The Japanese’s decision to come to the Netherlands, however, was a much less simple one according to Jan Bouwstra, who is currently responsible for new developments at Fuji Tilburg. ‘The Japanese head office sent Kenzo Tatsuuma to Europe to find the most suitable location. Two years of research finally brought him to the Netherlands. And he became the first managing director of the Japanese/ Dutch factory.

Mentality
The thing that most impressed the Japanese about the Netherlands in the late nineteen-seventies, was its social harmony and work ethic. ‘In comparison with the other candidate, France, the Netherlands proved superior.’ The French rather overdid their VIP treatment of Tatsuuma, which was later to work against them: he considered the French too wasteful, and ultimately opted for the Netherlands.

‘The Dutch had something of a consensus culture in the nineteen-eighties. That is a mentality that the Japanese can associate with. After all, they have their own version of the polder model: we are mutually reliant on water, and Japan recognised the similarities with rice cultivation. One couldn’t simply get into an argument with the neighbours, as then nobody would be willing to help you harvest your rice.’

Until just recently, Fuji’s Tilburg plant, which is a carbon copy of its vast complexes in Japan, used to manufacture rolls of photographic film. However, this has become a dying trade; digital photography is absolutely booming. The rapidly changing market conditions have forced Fuji to develop alternative sources of income. Since the early nineteen-nineties, Fuji Tilburg has therefore also been making offset masters for printing works and photographic paper for inkjet printers and photo laboratories.

And for the past few years, Fuji has also been making profits in the development of products that have nothing whatsoever to do with photography. Mr Bouwstra explains: ‘The substances used in the photographic industry have also proven highly useful in the pharmaceuticals industry. Fuji has great expertise in the field of polymers, a particular type of molecular compound. One of the types of polymer that we previously used to manufacture photographic film is nowadays also utilised in the production of LCD monitors. This application renders LCD screens highly legible from various angles. And we are the largest supplier of this product.’

Not only manufacturers of complex equipment have benefited from Fuji’s change of tack, however. ‘The substance that is used to prevent photo prints from fading, is currently also used in the production of sunscreen cream. Fuji has a ten year patent on the know-how involved. And this is just the beginning.’

Mr Bouwstra is firmly convinced of the conglomerate’s ability to survive by tapping into various entirely new markets. ‘You have to adapt, if you want to survive. This has been proven both in the fields of evolution and commerce. The companies currently failing often tend to be large, inadaptable organisations.’ It is therefore debatable whether Fuji will still be directly associated with photography in a few decades from now. ‘By that time, perhaps we will be talking about Fuji LifeScience, a research organisation.)’

Pioneering
But will the Netherlands succeed in retaining businesses that are changing so rapidly? Mr Bouwstra thinks so. ‘Knowledge intensive companies like Fuji will nevertheless be keen to remain in Europe, and that includes their production plants. Carrying out research in Europe and production in China simply isn’t convenient. The market is changing both radically and rapidly. It is therefore essential that companies adopt a pioneering role. Whenever an R&D department develops a new concept, it has to be prototyped as swiftly as possible, with a view to being the first to market,’ Mr Bouwstra maintains. ‘Combined manufacturing and research facilities are indispensable in that case. Therefore, if we can manage to retain high-tech research in the Netherlands, then we will most likely be able to retain hundreds of manufacturing jobs, too.’

From a long-term perspective, however, the Netherlands will not have to compete with Japan and the USA, but rather with other European countries. And Mr Bouwstra considers this a good thing. ‘European work ethics are lagging years behind those in the USA and Asia; productivity is much higher there. The Netherlands is nevertheless still one of the leading players by European standards.’ This distinctive position is vital to the Netherlands. ‘We should stop grumbling about top Dutch scientists emigrating to the America, and focus on the large contingent of Eastern European scientists who come to study – and stay – in the Netherlands. We have to hang on to them, because they are crucial to the success of the Netherlands. If students from Asia and Eastern Europe stop coming here, then Dutch universities of technology will soon be a thing of the past.’

The Fuji researcher is nevertheless confident that the Netherlands will be able to manufacturing operations in the long term. Brabant is already proving that knowledge is what drives today’s economy; the province boasts a greater proportion of high-tech industry than the Randstad conurbation. ‘Whether Fuji might have set up business just as successfully in Twente?’ Mr Bouwstra thinks it could have. ‘It is nevertheless prudent of the Japanese to have opted for Brabant. There are countless one-man businesses specialising in micromechanics and electronics in this region. As we regularly build new prototypes, these entrepreneurs’ experience is simply indispensable.’ The source of all this expertise is the region’s other industrial giant: Philips.

Source: Nederlands Dagblad, 22 November 2005