Japanese remanufacturer diversifies with new focus on automation sector.
By Koichi Yoshizuka, CEO, QRIE Ltd.
As global demand for printed documents continues to shrink, remanufacturers around the world are facing increased pressure to evolve. One standout example of successful reinvention is MDS Co., Ltd., a resilient Japanese company that has redefined itself through diversification, strategic acquisitions, and a deep respect for its legacy.
MDS traces its roots back to 1950, when it was founded as Mitsuboshi Electric Works, a contract manufacturer for Panasonic Electric Works (now Panasonic). For decades, MDS specialized in producing coils and connectors for electronic components under a single-client supply model. However, as Panasonic’s operations shifted overseas and to northern Japan, MDS’s fortunes declined sharply—revealing the structural risks of heavy client dependency.
Amid this crisis, the second-generation leadership made a bold move: entering the remanufactured toner cartridge business. The industry was on the rise at the time, and the pivot brought stability and renewed direction to the company.
Current CEO Masaru Mitsuboshi, representing the third generation of leadership, took office in 2013 and brought with him a clear vision shaped by the lessons of the past. Determined to avoid repeating the pitfalls of over-reliance, he led MDS toward further diversification.
About ten years ago, the company launched its battery recycling business. Around seven years ago, it began pursuing M&A-driven growth, targeting small but highly skilled Japanese manufacturers struggling with succession challenges. MDS now operates under a group management model, integrating these companies and helping preserve their technologies while enhancing their business viability.
As of today, the MDS Group comprises seven affiliated companies, with combined annual sales reaching approximately ¥5 billion. The group has set its sights on reaching ¥10 billion in sales by 2032, demonstrating bold ambition backed by strategic groundwork.
According to official financial filings published in Japan’s Official Gazette (Kanpō), MDS reported sales of ¥2.036 billion ($13.1 million/ €12.2 million) and net profit of ¥53.7 million ($346,000/ €322,000) for the fiscal year ending March 2024. These numbers reflect a stable and sustainable growth path, not a short-term rebound.
Today, MDS provides high-precision electronic components to major players in the IT and electronics industries, moving well beyond its earlier image as a toner-focused business. Yet its environmental values remain unchanged: the company continues to integrate sustainability into core operations, particularly in high-efficiency, resource-conscious manufacturing.
What makes MDS’s journey particularly relevant is its mission-driven approach to revitalizing Japan’s industrial presence on the global stage. CEO Mitsuboshi aims to build a future in which small and mid-sized manufacturers do not merely survive alone, but thrive together as synergistic, innovation-driven groups.
His belief is clear: “By updating management, enhancing quality, and delivering better products and services through collaboration, Japanese SMEs can once again play a meaningful role on the global stage.”
MDS’s story offers a practical, scalable model for industry players worldwide—especially those seeking to combine tradition with transformation, and resilience with growth.
