FEIC Closure of Kofu Plant
Furukawa Electric Industrial Cable Co., Ltd (head office: Arakawa-ku Tokyo, President: Yoshitaka Hattori, FEIC here after), subsidiary of Furukawa Electric, decided to cease all the operation of FEIC Kofu Plant (Kofu-City Yamanashi-Prefecture) at the end of September 2013 and close the plant. Though Kofu Plant will cease the operation, the products will be manufactured in the domestic and in the foreign plants in order to continue supply.
Background and content of the plant closure.
So far, structural improvement, such as withdrawal from the less profitable business, has been carried out in Kofu Plant, because of the slowdown of the domestic demand and the severity of the price competition. Maintaining the plant becomes more difficult. For this reason, we have decided to shift the production of the high-performance and the more profitable products to other plants, and to close Kofu Plant. Employees will be relocated mainly to other FEIC plants.
With the manufactured items transfer and the consolidation to the other plants, we will improve profitability by fixed cost reduction and productivity improvement. Loss is expected due to the occurrence of expenses associated with personal relocation and disposal of production facilities and building that are no longer needed, but the amount is undecided at this moment. In addition, an intension to sell the old factory site is being considered. Hereafter, OEM productions with a focus on overseas production bases are prioritized, and the overseas production shift is promoted.