"No Successor" An 80-Year-Old CEO's Sigh After Deciding to Close a 120-Year-Old Family Business [Japanese Side]

6th Generation Family Business Successor Toshio Matsui
Leveraging Trading Company Experience to Lead Overseas Expansion
Seeking Successor from Gunma Prefecture

Japan is famous as a country of craftsmanship. Many family businesses have been passed down through several generations, resulting in numerous century-old shops. However, recently, this atmosphere has been collapsing due to low birth rates and aging population. This week in Japan, it was reported in the media that the owner of a famous muffler factory, who had carried on the family business for six generations, decided to close down. The 80-year-old owner, known for fluently speaking Spanish with Spanish clients, added to the poignancy of the story.

Today, we share the story of Mr. Matsui Toshio, the last owner of the muffler factory 'Matsui Knit Technical Laboratory' in Gunma Prefecture.

President Toshio Matsui explaining the reason for deciding to close the business in front of the machine. (Photo by ANN)

Mr. Matsui, aged 80, is the sixth-generation owner of the muffler factory in Gunma Prefecture. Starting in the Meiji era, the factory began manufacturing mufflers in Gunma, famous as the "village of textiles," and the business has been passed down through generations. They insisted on their unique vertical knitting technology, making the company popular both inside and outside Japan. There was even a time when the factory almost closed forever after all the machinery was confiscated under the pretext of producing war supplies, but Mr. Matsui’s mother saved it, and his older brother and he continued the family business.

Mr. Matsui graduated from Kyoto University of Foreign Studies in 1966 with a major in Spanish and was a promising employee at a trading company. However, he gave up his corporate career and decided to protect the factory together with his brother.

They have been continuously modifying and using machines from 1959. When asked why they do not replace them with good, modern machines, he replied, "If we bring in high-speed machines on this street, the vibrations would disturb the neighbors. Since our factory is on the street, there is no need for that. The old machines have many possibilities for modification, making them more convenient." While other companies introduced new machines, they insisted on using the same machines for 60 years, preserving the unique characteristics of their factory.

Mr. Matsui is going to check the machine. (Photo by ANN)

From the early 2000s, leveraging his experience at the trading company, Mr. Matsui also began introducing the produced mufflers overseas. They established business with various art galleries and museums abroad. In particular, they supply mufflers to the National Prado Museum in Madrid, Spain, and he is said to use Spanish fluently during transactions. To find unique color tones, he visited art museums whenever he had time and drew many combinations by referencing beautiful signs on the streets.

By wisely incorporating his own experience into the century-old family business, he achieved remarkable results, including ranking first in sales for five consecutive years at a museum in New York, USA, and having their products selected as souvenirs for the G7 summit held in Hiroshima.

Although he showed infinite passion for his work, he ultimately decided to close the factory, attracting recent attention from the Japanese media.

Muffler products sold by Matsui Knit Technology Research Institute. (Photo by Matsui Knit Research Institute website)

Mr. Matsui is already over 80 years old, and there is no one in his family willing to take over the business. Even the employees who have worked with him are aging and finding it difficult to continue working. Mr. Matsui said, "Still, since we have no debts or loans, it is actually a very fortunate closure."

In response, Gunma Prefecture is also seeking successors together. The prefecture has posted a notice on its website looking for successors. However, since it takes three years to acquire the skills, no one knows whether a successor willing to endure this will appear.

Mr. Matsui calmly continued his interview with the media. He said, "Our products boast brilliant colors, but the work itself is extremely humble. We are a company that embodies sensibility such as color in our products. If possible, I hope someone who cherishes that sensibility will carry on the business."