A new foundry was established in Kawaguchi, Saitama, to produce cable heads and joint boxes. Until then, Chuo Doryko Co., Ltd. in Kuwana, Mie Prefecture had been asked to produce the goods under contract, which were then machined and assembled by Kayo Kogyo Co., Ltd. in Shiba/Hamamatsucho, for delivery, but the war expanded, it became difficult to transport goods. As a consequence, Kanaden acquired the Ishikawa Foundry (1-1-11 Iizuka, Kawaguchi) and welcomed its manager Takemori Ishikawa and two others to join Kanaden. Seizaburo Tsukihashi assumed the role as the first acting manager of the plant, and the plant was started with eight workers.
The Kawaguchi Plant mainly performed work related to the Japanese Navy, and in February 1944 was designated as a plant under naval supervision. The plant did business with units in Yokosuka (Yokosuka Ammunition Factory Construction Unit, Yokosuka Naval Fuel Depot No. 1), Kure (Kure Ammunition Factory, Hiro Ammunition Factory Construction Unit), Sasebo (Sasebo Ammunition Factory Accounting Department, Munitions Department, Construction Department), as well as the Toyokawa Naval Arsenal, Hikari Naval Arsenal, Dai-ichi and Dai-ni Naval Ammunitions Arsenals, and the Dai-ni and Dai-san Naval Fuel Arsenals.
Although machining was outsourced to Funakoshi Tekko Co., Ltd., pressured by the need to engage in continuous operation, the construction of a new machinery plant was planned. However, the company found it difficult to obtain permission, and finally received permission in May 1943, with added conditions.
At precisely that moment, the Japanese military was forced to withdraw from Guadalcanal, and the German army had suffered a crushing defeat at the hands of the Soviet army in the Battle of Stalingrad. Japan was already suffering serious material shortages, and even though approval for the new plant was received, construction was marred by slow progress. Construction of the plant was finally completed six months later in November.
Also from around this time Kanaden began to manufacture safety belt fasteners on order from Mitsubishi Electric's Setagaya factory.