Worldwide Expansion

In the mid-1970s, the Company began vigorously expanding its sales network overseas. Since then, it has worked continuously to keep the network in touch with changes in user needs, such as the recent trend toward dependence on specified quality suppliers.

KITZ's superior performance in this area was confirmed when the Company was awarded a supplier partnership agreement by Dow Chemical Company of the United States in February 1990 -- the first time such an award had ever been received in the industry. The award represents a general trend toward emphasizing product reliability over short-range price-cutting policies, which undoubtedly results from a concern for greater product safety and long-range cost reductions by quality plant equipment.

Lengthy Overseas Experience and a Strong Reputation
A great deal of the increase in KITZ's overseas sales has resulted from the rapid rise in demand for the Company's industrial-use valves in international markets and, particularly, for the Company's high-performance valves for use in petroleum refineries and chemical industries. We have many years of experience in supplying high-performance valves to principal oil and chemical companies, engineering firms, and general contractors in North America and Europe. Our strong reputation in each of these areas has significantly influenced demand for KITZ carbon and stainless steel valves in other overseas markets.

Valve Technology Seminars
As an important part of its international operations, the Company invites overseas customers, distributors, and sales agents to Japan for seminars on the most recent advances in KITZ valve applications. The seminars are held at the KITZ Education Center, which opened in 1981 near our Nagasaka Plant. The center's contribution to our overseas marketing efforts is substantial.

Marketing Overseas
Export sales of KITZ products are directed by our International Operation Division. We have a strong presence in markets the world over, including North America, the Middle East, the Far East, Southeast Asia, Australia, and Western Europe. In 1985, we established our subsidiary KITZ Corporation of America in Texas to handle valve sales in North America. Overseas sales in primary markets outside North America are conducted by our worldwide network of KITZ authorized distributors, being supported by our liaison offices in Kuala Lumpur, Hong Kong, and Jakarta.

Overseas Manufacturing
The Company has also successfully expanded its network of overseas subsidiaries engaged in valve manufacture. KITZ (Thailand) Ltd. in Bangkok produces brass and bronze valves, while KITZ Corporation of Europe, S.A. in Spain manufactures industrial ball valves. KITZ Corporation of Taiwan, located Kaohsiung, and KITZ Corporation of Mexico, located in Reynosa, manufacture steel valves, supporting our marketing activities all over the world.

Customer Support Services Overseas
To support its customers in North America, the Company has organized a service network of valve modification shops throughout the United States and Canada. The shops have direct agreements with KITZ covering the scope of repair or reconditioning as well as repair methods, and are firmly committed to fulfilling the standards set by the Company's quality assurance program. KITZ provides the shops with complete technical assistance.