Japan maker of bamboo whisks eyes Brexit risks

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AFP, Nara :
Britain might be a world away, but the future of a 500-year-old family company in rural Japan could rest on the UK’s decision to quit the European Union.
Chikumeido, a speciality maker of delicate bamboo whisks used in traditional tea ceremonies, started selling the niche products in the United Kingdom last year, its first major push overseas.
Sabun Kubo, its 71-year-old president, hoped the gamble would pay off by setting up his little company for a launch into the potentially lucrative European market, and counter years of falling sales.
Things got off to a good start for the company, which has been run by 24 generations of Kubo’s family-and then Britain voted to quit the EU.
“We just started exporting to London last year as our sales base in Europe,” said the septuagenarian craftsman.
“This was part of our efforts to take a chance on doing business overseas. I thought our products would be well received in Europe, and especially in Britain where there is a tea culture.
“But then, all of a sudden, Brexit happened. It was a shock.” Since the June 23 vote, firms in Japan and across Asia have been scrambling to get a read on how Brexit’ll impact them, and what to do about it.
Japan Inc has also been hit as worries over the vote sparked a sharp rally in the yen. The currency is seen as a safe investment in tumultuous times, but its rise hurts Japanese exporters’ profitability.
The threat to Kubo’s minnow firm illustrates how the breakaway vote will not just affect multinational giants like Toyota and Hitachi, which have major operations in England.
More than 1,000 Japanese companies do business in Britain, employing some 140,000 local people, and Japan’s direct investment in the country has topped 10 trillion yen ($99 billion) to date.
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