Apr 15, 2020 (Nikkei) - Japan needs 13 million N95 masks in the coming months to fight the coronavirus pandemic. It can secure only 700,000 this month.
The N95, which can block extremely small viral particles, is normally a disposable mask. But with the shortage so severe, the health ministry has begun calling for hospitals to reuse them as an emergency measure.
Amid a global run on the coveted masks, countries such as China -- where most of those masks are produced -- are focusing on meeting their own needs, limiting the amount that can be exported.
The search is on, therefore, for domestic Japanese suppliers that do not produce in China.
Tokyo-based mask maker Koken is one such company, and is the reason its stock prices have risen 82% in the past month.
Its factories in Japan's Kanagawa Prefecture and Thailand's Chonburi Province have shifted to three-shift, two-shift teams respectively to handle the increased production. During the January-March quarter, Koken boosted production of disposable masks by 80%, supplying them primarily to hospitals.
But Koken is a small company that employs less than 300 people and rang up just 8.6 billion yen ($80 million) in revenue last year. It lacks the wherewithal to undertake a massive expansion in capacity.
Before COVID-19, the company was already considering ways to reduce its dependence on face masks, as the shrinking population of Japan signaled weak demand ahead. It was toying with new products such as ventilation devices for factory clean rooms.
It is upon these small companies that Japan now relies upon to secure the needed surgical masks and hazmat suits. The health ministry projects major shortfalls of personal protective equipment, including 270 million surgical masks and 9 million face shields.
But the market is relatively small in normal times and is expected to shrink again after the current crisis passes. Without a government pledge to buy excess inventory, companies remain reluctant to ramp up production.
