Osaka’s Small Factory Taps into the Global Space Market: Yumoto Electric Wins Overseas Contracts for Precision-Machined Parts, Expands Operations in the U.S. and Vietnam

This article was originally published in Japanese by Nikkan. You can view the original version here.

Yumoto Electric (Osaka, Japan; President: Hideitsu Yumoto), a specialist in machining mechanical components, is breaking into the global space industry. Focusing on developing parts for small satellites and rockets, the company is leveraging its high-quality, quick-turn manufacturing know-how to expand overseas. Starting in fiscal year 2025, Yumoto Electric plans to formally launch contract development for satellite components and more in the United States. According to President Yumoto, this push into the space sector is expected to help address the labor shortages that challenge small and midsize Japanese manufacturers.

"We’re targeting Texas for our expansion and plan to establish a U.S. subsidiary within the next year," says President Yumoto. The company’s new venture will handle development and manufacturing, with production based in both its Vietnam subsidiary and Japan, supplying American companies with Japanese quality. A dedicated digital marketing website is also in the works. The company’s goal: achieve annual sales of 1 billion yen (about $6.6 million USD) within five years.

Founded in 1988, Yumoto Electric excels at precision machining of plastics and metals, serving a wide range of clients in machinery and equipment sectors. The company specializes in high-precision milling using machining centers (MCs) and CNC lathes and is capable of delivering complex-shaped parts in as little as one to two weeks, a critical advantage in the field.

"Satellite components demand the utmost precision to ensure reliable operation in space," President Yumoto explains, emphasizing how the company’s skills are ideally suited to this market. Moreover, focusing on high-mix, low-volume production for the space industry helps Yumoto avoid the price wars typical of mass production.

The company has already built a track record by supplying specialized jigs and components for satellite manufacturers and university research projects, including fabricating parts for a special camera system that located the re-entry capsule of the asteroid explorer "Hayabusa2." Yumoto is recognized for rapid response, often determining manufacturability or design feasibility within just one or two days.

Photo: Yumoto Vietnam Manufacturing Facility

In recognition of its past achievements, Yumoto’s Vietnamese subsidiary has begun co-developing small satellites with a national research institute in Vietnam. Yumoto Vietnam (Long An Province) has signed a basic agreement with the Vietnam National Space Center (VNSC), part of the Vietnam Academy of Science and Technology, on domestically manufactured artificial satellites.

Yumoto Vietnam is responsible for everything from design and development to manufacturing of components and equipment, aiming to complete a thermal structure model by the end of 2025.

While many Japanese manufacturing bases in Vietnam focus on low-cost production, Yumoto Vietnam differentiates itself by employing skilled engineers, including graduates from Ho Chi Minh City University of Technology. The subsidiary also uses 5-axis machining equipment on par with Japanese standards, delivering "Made in Japan" quality in Vietnam.

Yumoto Electric’s ambitions stretch beyond the space sector. The company is also exploring virtual solutions, such as replicating factories in the metaverse. "We pride ourselves on taking on new challenges—not just clinging to the old ways," says President Yumoto, noting that this attitude also helps attract talented young employees.

In anticipation of future growth, Yumoto Electric is stepping up recruitment, not only targeting future management candidates in their 20s but also expanding its team with skilled international professionals from Vietnam and Myanmar and experienced managers.

Step Up Your Project with Yumoto Electric

Yumoto Electric delivers high-quality components fast, worldwide. We provide precision machining for a wide range of metals and engineering plastics. We have experience with over 200 materials including metals such as aluminum alloys, stainless steel, molybdenum, and titanium, and engineering plastics including PEEK, PPS, MC Nylon, and POM.

If you’re unsure about material selection or machining methods, we offer complimentary consultations to help optimize your design and production. For any questions, please feel free to contact us.