Deepening Roots in China

Model Operations in China Set Important Example

Toshiba Dalian Co., Ltd. (TDL) was established in 1991 as its first local subsidiary in China. As of March 2005, TDL had 1,550 employees. The company produces motors, television components and electromagnetic delay lines. Since 2003, TDL has also been a base for the design and manufacture of medical equipment.
"TDL has steadily increased the number of managers recruited locally in the 13 years since its establishment," says Fumitaka Kashii, president of TDL. Meritocratic, non-discriminatory personnel management methods emphasize placing the best person in each position. At the senior management level below TDL's general manager, which includes factory managers and department heads, there are six Chinese managers. To spur its overseas development efforts, Toshiba Group aims to recruit local managers in its operations worldwide as a matter of policy.

Education and Training Critical to Higher Quality of Management

"The personnel development systems at TDL include training courses for new recruits and different supervisory levels as well as financial support for employees designed to help the self-motivated learning," explains Wu Jianxin, Senior Manager Administration Division. An internal skills certification system has been set up to recognize qualifications in quality control with training being carried out by those with high-level qualifications certified by Toshiba's Corporate Manufacturing Engineering Center. TDL also provides assistance to workers to help them obtain relevant National qualifications. Education and training is not limited to technical skills. TDL's systems for managers also cover other necessary fields, including production management, finance and accounting and ISO-approved standards such as the 9000 and 14000 series. Mr. Wu adds, "TDL also organizes training programs for managers at or above the section leader level. Sponsored by Toshiba's regional headquarters in China, these courses aim to prepare managers for taking on larger roles. Subjects covered by management training programs include Toshiba's business philosophy and vision, cross-cultural communications and leadership skills." The system is comprehensive and works effectively in China.

Actively Engaged in Environmental Management

"Besides focusing on raising product quality, the TDL plant has also been actively concerned with reducing its impact on the environment," says Zhou Fei, Senior Manager, Production Control Division, who is also in charge of environmental protection. The company gained ISO14001 certification in 1999. Its operations are rated "AA" by EASTER, Toshiba Group's internal environmental auditing system. This is the top level achieved by any Toshiba Group operation outside Japan. "Recycling is not yet obligatory in China, but TDL has set an example through the sorting of waste into five categories. The key to TDL's success has been a practical approach to educate employees about the daily activities necessary to maintain an environmentally conscious company, thereby helping to ingrain good habits," says Mr. Zhou.

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Promoting Good Relations with the Local Community as a Corporate Citizen

China in the years to come. TDL has also been recognized consistently by the city of Dalian^Note1 as a leader in worker safety. TDL is regarded within Toshiba Group as a model operation in China, and Toshiba's Chinese regional headquarters often organize tours to the firm to highlight its progressive environmental and labor safety policies. TDL is a good example of the efforts that Toshiba Group makes to establish roots in local communities worldwide to further global business development in line with its corporate philosophy.

A total of 558 children study at the two Toshiba Hope Elementary schools.

Note1) TDL is the only firm in the Dalian development zone to have received a safety award from the city for 12 consecutive years.