News Release

In order to respond to market expansion for triple-layer insulated wires^{(note 1)} (hereinafter, TEX Series), Furukawa Electric Co., Ltd. has decided to centralize our Furukawa Sangyo Kaisha, Ltd. Group (hereinafter, Furukawa Sangyo) sales offices in the People's Republic of China and Taiwan. Through this decision, Furukawa Electric will further enhance ability to respond to global customers, and contribute to developing customers going forward.

The TEX Series is used in the power transformers of mobile phones, smartphones, making a significant contribution to their miniaturization. These mobile devices are manufactured primarily in the South China area of China--which is referred to as the factory of the world--and enhanced levels of functionality as well as further market expansion are expected going forward as well.

Up to now, Furukawa Electric Group sales offices for the TEX Series in the China sector were run by Furukawa Sangyo subsidiary Furukawa Sangyo Kaisha (Hong Kong) (hereinafter, FSKH) for Hong Kong and Mainland China business, and subsidiary Taiwan Furukawa Electric Co., Ltd. (hereinafter, TFE), for Taiwan business, respectively, but with the surge of globalization in recent years, streamlining through integrated commercial distribution channels has become essential.

Furukawa Electric Group is now integrating commercial distribution channels for Taiwan business to Furukawa Sangyo and further strengthened the sales organization in China and Taiwan. Ahead of this integration of commercial distribution channels, in Taiwan, FSKH newly established Furukawa Sangyo Co., Taiwan (hereinafter, FSKTW) as the company base in Taiwan, and launched the business.

As a result, all of the Furukawa Sangyo sales offices--FSKH in the South China sector, Furukawa Sangyo subsidiary Shanghai Furukawa Sangyo Shanghai Co., Ltd. in the Eastern China and Northern China sectors, and FSKTW in the Taiwan sector--deliver customer service and continue promoting sales of the TEX Series. TFE is planning to take the opportunity of the change in commercial distribution channels to further expand business, specializing in sales, and design of thermal products such as heatsinks.

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.