Acquisition of commercial rights of overseas power cable business by Furukawa Electric
Furukawa Electric Co., Ltd. has reached a basic agreement with VISCAS and Fujikura to take over the overseas commercial rights of underground and submarine power cables from VISCAS Corporation (investment ratio: Furukawa Electric: 50%, Fujikura Ltd. (hereinafter, Fujikura): 50%, hereinafter, VISCAS).
Currently, power infrastructure markets are expanding in developed countries as well as in emerging countries. In addition to the expansion of inland power transmission networks, there are high demands for power transmission lines to offshore oil fields and connecting lines between islands in Asia. In Europe as well, there are increasing demands for power transmission lines along with establishment of wider interconnecting power networks across borders and growth of renewable energy.
Furukawa Electric has acquired the overseas business right of underground and submarine power cables, accessories, construction and installation services from VISCAS. The agreement will take effect starting from April 1, 2015. The commercial right of Furukawa Electric is limited to overseas business and that of domestic business for power companies is to remain within VISCAS after the commencement of the agreement.
“We made a decision to strengthen the global power cable business further.” says Mr. Shimada, General Manager of Power Cable Div. “Furukawa Electric Group will continue to combine the world's top-level technologies and management resources developed over many years, and contribute to the architecture of the global power infrastructure, focusing primarily on submarine power system projects.”
VISCAS was founded in September 2001 as a joint venture integrating the respective technology departments and Global Sales & Marketing Departments for underground power transmission line and submarine power transmission line of Furukawa Electric and Fujikura. Then, in January 2005, the scope of the business integration was expanded to include the Manufacturing as well as Construction and Installation Departments, Domestic Sales & Marketing Departments, and distribution line/overhead power transmission line business, continuing to this day.
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 931.8 billion (approximately USD 9.3B) for the fiscal year ended March 31, 2014.