Mitsubishi Materials (Thailand) Co., Ltd. (MMTH), one of the production and sales sites of the Mitsubishi Materials Metalworking Solutions Company, is an important site at the forefront of manufacturing in Thailand. Hidehiko Nagaya, who became President in April 2023, is working on organizational reforms to increase the autonomy of local employees, leading MMTH to become a "company that discusses and takes action." What is needed to bring out the potential of employees and pave the way for the future? Nagaya, President of MMTH, spoke about organizational development and the underlying philosophy behind it.
Aiming to become a production site of the world's highest standard
Established in Ayutthaya Province, Thailand in 1995, MMTH will celebrate its 30th anniversary in August 2025. As of the end of March 2025, the company employs 1,396 Thai employees and 13 Japanese expatriates. As one of the largest production and sales sites for carbide cutting tools within the Metalworking Solutions Company, MMTH supplies products to customers around the world.
In its Medium-term Management Strategy FY2031, MMTH's mission is to "stably supply the world's highest-quality products at competitive prices and on time." Based on considerations for safety, the environment, human rights, and laws and regulations, the company strives to ensure safety and implement environmental measures through the use of the latest equipment. In addition, by promoting automation, MMTH aims to achieve labor-saving, improve yields, shorten cycle times, and enhance quality, with the aim of achieving coexistence and mutual prosperity with the local community.
Aerial view of MMTH. As an environmental measure, solar panels have been installed, covering approximately 7% of the electricity used.
Changing organizational culture with "Discussion" as the keyword
When I became President, the first thing I noticed was a culture where employees were reluctant to voice their opinions. In order to maintain the same level of quality as our production sites in Japan, strict rules had been put in place, and it had become common for employees on the front lines to "wait for instructions."
That's why I repeatedly emphasized the phrase "Discuss: Let's speak up and share ideas." I believe that forming your own views and exchanging them with colleagues leads to organizational autonomy. We encouraged employees to speak up in various meetings and conferences, and also introduced 1-on-1 sessions and roundtable discussions to increase psychological safety. Employees were initially reserved, but little by little, they began to speak up, and discussions have now become much more active.
Managerial-level employees discussing during a meeting
Employees discussing workplace safety at the production site
Further changes - organizational restructuring and the appointment of Thai executives
In October 2024, MMTH implemented a major organizational reform. We integrated two factories that had previously manufactured products for our Japanese production sites, and established a new Production Department. This reorganization has promoted the sharing of expertise and the integration of technologies, eliminating inefficiencies that had existed in the past. We feel that the optimal foundation has been laid to integrate and elevate the cultures of the two factories. Going forward, we will continue to advance integration at the individual level so that we can produce better output in our work.
They also put effort into "5S" activities (Sort, Set in order, Shine, Standardize, and Sustain). Tools are neatly stored.
"5S" activities bulletin board
In addition, Thai employees have been appointed to senior management positions as heads of the Production and Administration Departments. Their involvement in important decision-making processes shaping company policy has strengthened the organization's autonomy. The business process reviews they led have produced significant improvements in a short period of time. With the understanding and cooperation of employees, these efforts have been a step towards building a sustainable management system.
A spiritual house stands on our premises, where many employees stop to offer a prayer on their way to work. Offerings such as fresh flowers, fruit, and sweets are placed there regularly.
From "student" to "teacher"
On July 1, 2025, MMTH changed its name from MMC Tools (Thailand) Co., Ltd. to Mitsubishi Materials (Thailand) Co., Ltd., marking a new beginning. Drawing on 30 years of experience, both successes and failures, the company continues to evolve in both technology and human resources. Going forward, we will actively share MMTH's knowledge with other production sites in the Metalworking Solutions Company, aiming to shift from being "on the learning side" to "on the teaching side."
After undergoing various changes, I feel that the mindset of our Thai employees is definitely moving in a positive direction. This is evident in the way employees now naturally express their desire to "take on challenges without fear of change" and "grow." MMTH is moving forward with a strong sense of unity, striving to create a better tomorrow.
In front of the building where the new company name is displayed. In the center of the front row is Mitsubishi Materials Metalworking Solutions Company President Ohara (white shirt), and to his left is MMTH President Nagaya. Also pictured are Japanese expatriates and Thai managers.
Mitsubishi Materials Group has established "Our Commitment" for 2030 as "For people, society and the earth, circulating resources for a sustainable future."
The guiding principles to realize Our Commitment are Our Values of "Challenge," "Change," "Growth," "Praise and Appreciation," and "A Better Tomorrow." The story Our Values weave is "We challenge, change, and grow together. We express praise and appreciation to encourage growth, for a better tomorrow."
An “Our Values Workshop" was held as a dialogue opportunity to connect individual actions with Our Values. Employees from the Production Department (left) and the Administrative Department (right) hold icons representing Our Values.