DATE: Thursday, September 11, 1997          TAG: 9709110547

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

SOURCE: BY LIZ SZABO, STAFF WRITER 

DATELINE: CHESAPEAKE                        LENGTH:   89 lines

BRIDGING CULTURESWHEN A PAPER MAKER FROM JAPAN DECIDED TO SET UP SHOP IN CHESAPEAKE, IT WASN'T PREPARED FOR THE AMERICAN WAY OF DOING BUSINESS.

America, land of straight shooters and straight talkers, where people say what they mean and mean what they say.

Or at least, that's what Yupo Corp.'s Japanese executives thought before they began building their first overseas operation in Chesapeake.

It turns out that American business transactions require a bit more subtlety than they expected, said Hirosuke Fukuda, vice president for finance and administration.

Yupo manufactures ``plastic paper'' - a polypropylene-based material that doesn't tear and doesn't dissolve in water.

And Yupo's leadership team - like its plastic paper - has had to be tough and flexible during construction and startup.

Yupo's leaders knew that launching its U.S. headquarters would be a daunting task. What they didn't expect was a confusing and occasionally amusing cultural gap.

``We've had many unexpected surprises,'' Fukuda said. ``When Japanese run a business, we have two faces - the official face and the actual face. What we say is not what we mean; we're indirect. We just imply and people figure out what you mean. We figured, in America you talk straight.''

So in America, if you're unhappy with someone's work, you can let him have it, right?

``No, you still have to imply,'' Fukuda said.

Such communication problems are only one of the frustrations involved in international expansion.

Construction of the company's 170,000-square-foot, $100 million factory in Greenbrier Commerce Park also is taking longer than expected, Fukuda said. How much longer he won't say.

``This will require lots of hard work to finish on time,'' by March, Fukuda said. ``We hope we can make it.''

While construction delays are a fact of life for American business people, in Japan, he said, they're almost unheard of.

``We Japanese try to keep on schedule absolutely; keeping a commitment is a must. It's almost a religion,'' Fukuda said. ``Here, a goal may change. People allow that. If a product is delayed one month or two months, it's OK; it's no big deal.''

As Yupo's Japanese executives learn about American customs, they are also teaching their Virginia counterparts about Japanese paper making.

Unlike wood-based paper, YUPO brand synthetic paper stretches instead of tears. It looks and feels much like glossy magazine paper, but doesn't dissolve in water. It floats, said Yozo Ohba, senior vice president for technology.

``YUPO is good for hunting and fishing maps, but not for golf score cards,'' Ohba said. ``If you have a bad score, you can't rip it up.''

Because of its durability, YUPO brand paper is made into labels for products such as Mr. Clean household cleaner and Purex laundry detergent, Ohba said. Procter & Gamble Co. is one of Yupo's major customers.

Yupo has sent more than 20 Japanese advisers to Chesapeake on temporary assignment, and has sent 20 Americans to Yupo's parent company in Japan, Oji-Yuka Synthetic Paper Co. Ltd., Fukuda said.

Bob Van Horne, vice president for production, has made four trips to Japan. He's planning another visit soon.

Between overseas flights, Yupo's leadership has been busy with nuts and bolts, Van Horne said. Last month Yupo finished hiring the first factory workers - none of whom have ever made synthetic paper before - and have begun training.

The plant's steam boiler, lights and other utilities will come online within a few weeks. And the company is drafting its company policies and business rules, Van Horne said.

On a larger scale, Yupo also has built a connection to Norfolk Southern Corp.'s railroad to transport the raw materials needed for manufacturing, Fukuda said.

Yupo's railroad terminal extends to the end of its quarter-mile-long factory, where materials are mixed, rolled into long sheets and then dyed and cut into smaller pieces.

Yupo should be ready to begin paper production by next March, he said. Full production should begin about a year from now. Yupo broke ground on its U.S. headquarters in January 1996.

Since then, Yupo has hired 80 people and will hire another 20 in the coming months. The company owns enough land eventually to build a second assembly line and double the size of its work force. Yupo's parent company employs more than 300 people at its Japanese headquarters, Fukuda said.

Yupo's American headquarters will service its U.S. customers, Van Horne said. Twenty-five percent of Yupo's sales are in North America, he said. ILLUSTRATION: Color photos by L.Todd Spencer

Construction of the Yupo's 170,000-square-foot...

K. Hirakawa, right, Yupo's site manager... KEYWORDS: YUPO CORPORATION

Send Suggestions or Comments to webmaster@scholar.lib.vt.edu