Partial Transfer of Equity Interest in Shanghai Sunshine Copper Products Co., Ltd.
- Collaboration with the world's largest copper tube manufacturer -
Furukawa Electric Co., Ltd agreed to a partial transfer of equity interest in air conditioner copper tube manufacturer Shanghai Sunshine Copper Products Co., Ltd. (48.825% owned by Furukawa Electric and 48.825% by Hitachi Metals, Ltd., hereinafter SSC, in Shanghai, People's Republic of China) to Golden Dragon Precise Copper Tube Group Inc. (hereinafter GD) and conducted a signing ceremony for the joint venture agreement on September 15.
The air conditioner market is expanding in China, and it is increasing in rural as well as urban areas. Air conditioner manufacturing, which is a major user of copper tubes, also has the largest scale in the world.
Furukawa Electric and Hitachi Metals (Hitachi Cable, Ltd at the time) founded SSC in December of 2000 as an internally grooved copper tube manufacturing and sales base for air conditioner manufacturers in China, and launched full-scale operations in 2002.
At this time Furukawa Electric and Hitachi Metals have decided to transfer part of the equity interest of SSC to GD, which is the world's largest manufacturer and distributor of copper tubes.
Going forward, SSC aims to further expand sales to new customers utilizing its network as well as further enhancing cost competitiveness, by leveraging GD's raw materials procurement capability and factory management expertise in China.
SSC Overview (No change other than the investment ratio)
|Company name||Shanghai Sunshine Copper Products Co., Ltd.|
|Location||Number 5, Cao Nong Road, Songjiang District, Shanghai, China|
|Capital||50 million USD|
(After the date of transfer)
Furukawa Electric: 13.325%
Hitachi Metals: 13.325%
Songjiang Government: 2.35%
|Type of business||Manufacturing and sales of copper tubes|
|Number of employees||230 (2013)|
|Sales||600 million RMB (2013)|
|Date of transfer||End of April 2015 (planned)
* GD may transfer before and after the actual date of transfer through the period of authorization by the Ministry of Commerce of the People's Republic of China pertaining to the trade union based on the Anti-Monopoly Law of the People's Republic of China.
|Company name||Golden Dragon Precise Copper Tube Group, Inc.|
|Location||Number 191, West Renmin Road, Xinxiang City, Henan Province|
|Representative||Changjie Li Chairman of the Board|
|Capital||420 million RMB|
|Type of business||Manufacturing, research and development, and sales of aluminum products and copper tube products centered on air conditioning|
|Number of employees||5,200 (2013)|
|Sales||33 billion RMB (2013)|
About Furukawa Electric Group
Furukawa Electric (TSE; 5801, ISIN; JP3827200001) Group started business in 1884, when its copper-smelting facility and wire manufacturing factory was established. Since then Furukawa Electric has become pioneers in the latest technologies by addressing diverse technological issues. Furukawa Electric has released products in a number of areas, including telecommunications, electronics, automobiles, and construction, with the three types of materials it works with at their core, namely, optics, plastics, and metals. Many of these products have attained the top global market share, and all of its products have contributed to society in numerous business areas. Furukawa Electric reported consolidated revenues of JPY 931.8 billion (approximately USD 9.3B) for the fiscal year ended March 31, 2014.