Electrical Supply Component Business - Integrating Chinese Operations
- Strengthening overseas operations through improved efficiency -

July 17, 2014

Furukawa Electric Power Systems Co., Ltd.

Furukawa Electric Group's Furukawa Electric Power Systems Co., Ltd. (Head Office: Yokohama, Kanagawa Prefecture, President: Michio Okuno; hereafter “FEPS”) will consolidate its manufacturing hub in the People's Republic of China.

By doing so, FEPS will be increasing our efficiency even more by bypassing Japan and focusing directly on our overseas sales (out-out business).

Background

Bus ducts(note 1) are mainly used to conduct electricity in production plants and large-scale facilities. In recent years, because of Japanese plants relocating overseas or plants in emerging nations being enhanced, there is a shift in China and Southeast Asia to stronger demand. Furukawa Dengyo (Tianjin) Co., Ltd. (Tianjin, China; hereafter, “Furukawa Dengyo”) is expanding the bus duct business in China and overseas, but stiffer competition and rapid globalization have made further improvements to efficiency necessary.

Bus ducts

Summary

FEPS has decided to consolidate Furukawa Dengyo with Tianjin Furukawa Power Component Co., Ltd. (Tianjin, China) in October of this year.

This will result in the enhanced efficiency of the electrical supply component business, as well as the delivery of materials for plant construction of Japanese businesses in the Republic of Indonesia, so FEPS will also focus on exporting from China.

Company Name Tianjin Furukawa Power Component Co., Ltd.
Location Xiqing Economic Development Area, Tianjin, People's Republic of China
Capital 1,400 million yen (wholly owned subsidiary of Furukawa Electric Power Systems)
Chairman Shigeru Matsumoto
Number of Employees approximately 100
Business Activities manufacture and sales of welding guns, electrical supply components, bus ducts, etc.
Sales 64 million RMB/year (approx. 1,100 million yen/year)
Date of Consolidation October 2014 (anticipated)

(note 1)Bus duct
a conductive copper or aluminum part used in the supply of electricity that encloses three phase conductors in a sheet metal case. Since it is a unit, in comparison with cables, it is easy to reconfigure in response to a change in factory layout.