Regarding the postponement of establishing the magnet wire business joint venture
First and foremost, we thank our customers, suppliers and partners for their patronage of our products. Since the announcement on September 26, 2019, we have been working diligently to integrate our heavy magnet wire business (including polyimide tube business) with Superior Essex Inc. (Atlanta, GA, "Superior Essex") for a launch of the joint venture on April 1, 2020. However, in light of the situation described below, we have decided to postpone the business integration start date by six months to October 1, 2020.
We sincerely apologize for any inconvenience this may cause, given the high expectations for this joint venture. However, there is no change to the plan that Furukawa Electric Co., Ltd. (the “Company”) and Superior Essex will integrate the business, and all employees will continue to work on the necessary preparations to meet the expectations. Your understanding and continued support will be very much appreciated.
The recent global spread of COVID-19 has hindered the final co-ordinations in integrating the business, particularly in the United States and Malaysia as the epidemic became a pandemic in the middle of March, when the integration was imminent. From the standpoint that special considerations must be given to safety and health for customers, partners, and employees, the two companies have decided to re-establish the "Essex Furukawa Brand" in six months’ time.
The joint venture is based on a strategic partnership between the Company and Superior Essex, which aims to accelerate co-creation of added value on a global scale, particularly in the markets of North America, Europe, and Asia including Japan and China. Specifically, the leading position of "Essex Furukawa Brand” in technology innovation in this category, and the contribution to long-term environmental harmony through the development of superior products and technologies for electric vehicles (EVs) / hybrid vehicles (HEVs) that contribute to long-term environmental harmony through CO2 reduction will provide a basis to fulfill the social responsibilities as a global company and to realize the Sustainable Development Goals that the Company also pursues. The strategical goal remains unchanged.
Currently it is difficult to foresee the changes in the situation, but we have positioned these six months as a preparation period to identify risks and set ourselves for a more fulfilling start.
Given the current circumstances, we sincerely hope for everyone's safety and health and look forward to your continued guidance and support.