Furukawa Electric Power Systems
Power Transmission Components Joint Venture Established in Vietnam
- Handling the electric power demand of continuing expansion -
Furukawa Electric Group’s Furukawa Electric Power Systems Co., Ltd. (Head office: Yokohama, Kanagawa Prefecture, President: Michio Okuno, hereafter FEPS) and Power Engineering Joint Stock Company (Hanoi, Vietnam, President: Le Minh Hai, hereafter PEC) have jointly agreed to form a new power transmission components(note 1) company.
In recent years, the Socialist Republic of Vietnam has been expanding its electric market in keeping with its economic growth. In particular, the establishment of the electric power grid has rapidly advanced, and the demand for power transmission components, such as transformer components and overhead transmission and distribution components, is increasing. In Vietnam, all of the more reliable power transmission components for 220 kV and above are dependent on imports from foreign countries, and the demand for the local production in order to achieve stable power supply is growing.
Recently, FEPS agreed to jointly establish a new company with PEC, a large manufacturer of power transmission components in Vietnam, for the manufacture and sales of power transmission and distribution components, and signed a joint-venture contract with them on May 8, 2015.
In addition to inheriting the under 220 kV power transmission components business from PEC, the new company will use the technical knowledge acquired over many years by FEPS, to establish the manufacture and sales of 220 kV and above power transmission and distribution components.
First they will work to meet the demands of the domestic Vietnam market, but in the future will also serve as a manufacturing base for the Out-Out needs of the ASEAN sectors and the Out-In needs of Japan.
New Company Profile
|Company Name||Vietnam Japan Power Systems Co., Ltd.(VJPS)|
|Location||Hai Duong, Vietnam|
|Representative||Yasuhiro Fukuhara (planned)|
|Capital||4 million dollars equivalent in VND (approximately 480 million JPY)|
|Equity ratio||FEPS 64%, PEC 36%|
|Description of business||Power transmission and insulator components (clamps, spacers, dampers, etc.), insulation equipment, power transmission and distribution components|
|Number of employees||Approximately 100 (2019)|
|Sales projection||16 million dollars equivalent in VND (approximately 1.92 billion JPY, 2019)|
PEC Company Profile
|Company Name||Power Engineering Joint Stock Company|
|Representative||Le Minh Hai|
|Date of establishment||October 2004|
|Capital||24.3 billion VND (approximately 140 million JPY, Vietnam Electricity: 41.98% investment)|
|Description of business||Manufacture and sales of under 220 kV power transmission components and iron and steel structures for transmission line towers, power plants and transformer substations|
|Employees||Approximately 340 (Under 220 kV power transmission components business: approximately 40)|
|Sales||403.5 billion VND (approximately 22.5 billion JPY, 2014)|
(note 1) 1 Power transmission components:
Power cable accessories used in overhead power transmission lines (transmission and transformer products, overhead transmission and distribution products, etc.). Mainly those used in aluminum transmission lines in the distribution network from the power plant.
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 867.8 billion (approximately USD 8.2B) for the fiscal year ended March 31, 2015.