News Release

Furukawa Automotive Systems Inc., a wholly owned subsidiary of Furukawa Electric Co., Ltd., will establish a new plant at Furukawa Automotive Systems Lima Philippines Inc. ("FALP"), which began operating in October 2012 and is located in Batangas Province, Republic of the Philippines, in order to increase the production capacity of wire harnesses. The new plant will have a building area of approximately 20,000m² and is scheduled to begin operating in January 2014.

FALP will construct a new plant on the land adjacent to its existing plant. The new plant is scheduled to begin operating in January 2014 to establish a framework for increasing the production of wire harnesses. By the year 2015, sales are expected to double and reach 12 billion yen combined with those of the existing plant. The total investment made in FALP through 2015 will come to approximately 5 billion yen. The company will have approximately 5,000 employees by the end of 2014.

The manufacturing bases in the Philippines have been enhanced primarily to cope with the expected increase in demand for wire harnesses in Japan, as they are considered to be a significant safety net for possible production risks in China such as escalating wages and labor disputes.