── Could you tell us about the OEM project that OAT Agrio and HighChem jointly succeeded in?

Mr. Nakagawa:  The first time I worked with HighChem was around 2013, on a project to OEM manufacture OAT Agrio’s pesticide active ingredients in China.
The OEM contractor was the supplier of the raw materials for this pesticide, but the company decided that making the products from raw materials to finished goods in-house would lead to cost reductions and increased competitiveness, which led to the launch of the project.

── What was HighChem’s role in the project?

Mr. Nakagawa:  We were greatly assisted by Mr. Hayashi, Director of HighChem, Mr. Kinbun, and everyone in HighChem's Agricultural and Chemical Division. They came with us to China, where they helped with translation for the manufacturers, as well as providing guidance on equipment modification, process optimization, and analysis methods. They were with us during the plant’s trial runs too. They were truly partners who helped us overcome the launch of the OEM project in China.

── Are there other projects?

Mr. Nakagawa:  We faced considerable difficulties in the startup of an OEM project for a pesticide intermediate, but Mr. Nakayoshi played a significant role in that project.
The previous projects we worked on involved products that had already been in commercial operation for decades within our company, which we then started to OEM-manufacture in China. However, the pesticide intermediate project involved transferred technology, so we didn’t have all the detailed technical know-how.

Mr. Nakayoshi: When scaling up from a lab-level process to commercial production, it’s quite different between what’s written on paper and what actually happens on the factory floor.

Mr. Nakagawa:  Yes, it’s completely different.

Mr. Nakayoshi: So, together with Mr. Nakagawa’s team, we worked on various improvements and adjustments to greatly reduce costs and move the project forward. The Chinese manufacturer we worked with had technical, equipment, and production technology gaps compared to Japan. We had to guide them to improve those gaps.
We truly became comrades, overcoming challenges together.

──When launching an OEM project in China, were there any cultural or business practice gaps that you felt?

Mr. Nakagawa: When doing OEM manufacturing outside of Japan, we basically have to guide the process. There were definitely some cultural aspects that didn’t go as smoothly as we might have hoped.

Mr. Kinbun: There are differences in understanding between Japan and China, or rather, cultural differences. In Japan, things are done one way, but in China, they are done differently. From the Chinese side, there might be some pride in saying, "We’ve always done it this way." It’s not really about which method is right or wrong, but HighChem’s job is to integrate both methods and guide the process to create a good result. The goal should fundamentally be the same for both the Japanese and Chinese sides.

Mr. Nakagawa: Mr. Nakayoshi spent a long time on-site, helping with translation and technical assistance. It was extremely helpful.

Mr. Kinbun:  Another important thing in China is building trust during the day through work and then building trust through socializing at night.

── So that’s also really important, huh? (laughs)

Mr. Kinbun: It is indeed. Becoming partners is very important in Chinese business. "Work hard during the day, and enjoy yourself at night" is the golden rule! (laughs)

── What role does HighChem play for OAT Agrio?

Mr. Nakagawa: 　HighChem is an essential partner when it comes to communication with Chinese companies.
It’s not just about speaking Chinese. HighChem has many people like Mr. Kinbun and Mr. Nakayoshi, who understand the technical side, having completed their PhD programs in chemistry. Even with English, interpreting synthesis or organic chemistry can be a high hurdle, and it’s even more challenging with Chinese in-house, so HighChem is truly an invaluable partner.

Mr. Nakayoshi: Interpreting technical terms is difficult. If you don’t understand the technology thoroughly, it won’t be communicated correctly. Whether you can discuss the technical aspects and equipment is what determines if trust can be built.

── So, what role does OAT Agrio play for HighChem?

Mr. Kinbun: Of course, they are an important partner. OAT Agrio was our first customer in the pesticide chemicals division. It is not an exaggeration to say that OAT Agrio made it possible for HighChem to handle pesticides for the first time. They are like a mentor to us.
We consider it HighChem's mission to continue proposing raw materials and intermediates that offer better quality and lower costs, which will contribute to OAT Agrio’s competitive advantage in their business.

── What do you think is the reason you’ve been able to maintain this partnership for over 10 years?

Mr. Nakagawa:  We’ve been working together for over 10 years on various projects. I believe it’s because we’ve been able to build a strong trust with each other.

Mr. Kinbun: That’s true, but I think the biggest reason is that we’ve been able to generate profits for both companies by advancing business together with OAT Agrio.

Mr. Nakagawa:  If we had not been able to build a Win-Win relationship, it wouldn’t have lasted.

Mr. Kinbun:  We’ve worked together on many projects, and of course, not all of them have been successful.

Mr. Nakagawa: But most of them have been successful. I think the success rate is around 90%. Starting with the initial pesticide active ingredient project, the results have followed.

Mr. Kinbun: OAT Agrio might request our company for projects in China, and we’ll also propose low-cost, high-quality solutions in China when we find them. What’s important is that  it benefits both sides in terms of business.

Mr. Nakayoshi: Also, it’s a big factor that, as fellow chemists, we personally get along very well.

Our Partner in Collaboration:
OAT Agrio Co., Ltd.　

Company Overview
Company Name: OAT Agrio Co., Ltd.
Headquarters: 1-3-1 Kanda Ogawamachi, Chiyoda-ku, Tokyo 101-0052, NBF Ogawamachi Building 8F
Established: September 28, 2010
President & CEO: Hisashi Oka
Business Activities: Research and development, manufacturing, and sales of pesticides and fertilizers