News Release

Furukawa Electric Co., Ltd. and Furukawa Magnet Wire Co., Ltd. subsidiary, here after the Companies, will cease the manufacturing and the sales of the medium size and the large size Polyester-covered enameled wires and a part of the heat-resistant solderable enameled wires.

The decision will be a part of the business structure improvement promotion activity that is being implemented, Furukawa “G” plan 2015 (2015 mid-term management plan). In the future, the Companies will concentrate the management resources to “the highly functional magnet wires” such as automotive flat wires which contribute to greening of the automobiles and the various heat-resistant enameled wires which are necessary for higher efficiency and higher output of motors used in electric components and industrial, and continue to contribute to expand of our customer base.

In addition to the soaring of a raw material varnish price, electricity prices and transportation costs etc., in response to the decline in the market price of the Polyester-covered enameled wire products; the profitability of the product had become a very difficult situation.
In such a situation, the Companies have been working diligently on various measures of cost reduction, etc. But in view of the business continuity in the future and the production capability of the current situation, the Companies have come to the conclusion that the manufacturing and the selling the products in the future will be very difficult.

The following products will cease being manufactured and sold, the medium size and the large size Polyester-covered enameled wires and a part of the heat-resistant solderable enameled wires, respectively the product of more than 0.4mm diameter approximately, which are currently manufactured in the Mie plant of Furukawa Magnet Wire Co., Ltd.

The manufacturing of the products will cease during the first half of 2014 year term. We deeply appreciate that over the long time production of these products is solely the result of the patronage and the help of our customers. We apologize for the inconvenience to our customers, but we would like to count on the customer’s anticipation and understanding of the situation.