FURUKAWA to construct production plant in Palmira
The Japanese multinational expands its international participation investing approximately 5 million dollars in Valle del Cauca through the construction of an optic fiber cables plant.
With over 125 years of market history, the Furukawa Electric Group comes to Colombia through the construction of an optic fiber cables production plant, to be installed in the Pacific Duty Free Zone, in the municipality of Palmira, Valle del Cauca. Preoperational activities are expected to start in mid-August of this year and the first production in February 2014. This plant will be the first of its kind in the Andean region and the third Furukawa telecommunications plant in South America.
Although Furukawa has been selling structured cabling for the last five years in Colombia through its distributors, the construction of the optic fiber cables plant will be an internal operation of the Japanese multinational in our country. The decision to settle in Valle del Cauca complies with the Department’s strategic location, which will allow importation of raw materials and exportation of finished products to countries located in the Pacific Ocean, with this plant being the production and distribution hub for the Andean and Central American region.
The direct foreign investment project has been analyzed since 2011 by Proexport and Invest Pacific, together with the Japanese company through its branch in Brazil and follow-up visits to Cali and Palmira by Furukawa representatives. At Valle de Cauca, the Japanese company´s employees had the chance to learn and expand their knowledge of the Colombian market trends through several meetings with Emcali and EPSA, the two duty free zones of Palmira, the head of the Cali Digital Education Programs, Universidad del Valle, and other local companies.
Furukawa is betting on the social development of Valle del Cauca and the country. According to company directors, the estimated investment will be five million dollars within the period from 2013 to 2016. 25 high quality direct jobs will be initially created per production shift and another 200 indirect jobs resulting from the entire supply chain (civil works construction, logistics, transport, meals, supplies, etc.) Nonetheless there will be top-level technical empowerment processes. “Valle del Cauca will benefit from the technology transfer processes to be developed by Furukawa Electric, which is the third largest producer in the world in this field. Some of the employees contracted for the plant in Colombia will be trained in Brazil for a period of six months to later also train local personnel”, commented the President of Proexport, María Claudia Lacouture.
“We are very proud to announce Furukawa’s arrival at Valle del Cauca, in special to Palmira; the location of this important multinational is a bonus for the municipality. We can continue saying that our Department is experiencing great events and proof of that is being the pioneers of the Andean region in the construction of an optic fiber cables plant. Our corporate fiber becomes even stronger” said Maria Eugenia Lloreda, Executive Director at Invest Pacific.
About Furukawa Electric
The Furukawa Electric group was established in 1884 in Japan and the holding company Furukawa Electric Co., Ltd. operates in areas such as Telecommunications, Electronics, Automotive Systems, Energy, Metals, and Services. The company has 129 years solid international history, with diversified activities and involvement in several market segments. Furukawa Electric has an international industrial network in countries in Asia, North America, Europe, Africa, and Latin America.
Furukawa started its activities in Brazil in 1974 with an electric cables plant and in 1977 it inaugurated one of the most modern telecommunications cables plants in Curitiba. In 2001, Optical Fiber Solution (OFS) – a Lucent Technologies group company – was purchased by the Furukawa Electric Group. This union resulted in one of the largest optic fibers providers in the world. The company currently develops the main patents present in the telecommunications market.
About optic fiber cables
Optic fiber permits adaption to different types of geographic conditions as the optic fiber cable is lighter, easier to install on power grids, roads, and gas pipelines, among others, with important operational technical characteristics such as immunity to noise and electromagnetic interferences.
About Invest Pacific
Invest Pacific, is a non-profit public-private organization which aims at attracting direct foreign investment to Valle de Cauca, seeking to generate employment and sustainable development of the Department. In addition, Invest Pacific coordinates the Foreign Investment Committee which follows up on the needs of over 70 multinational installed companies and supports reinvestment projects these companies are developing.