September 15, 2011
Furukawa Electric Co., Ltd. ("FEC") and Furukawa Automotive Systems Inc. (Head Office: Koura-cho, Inukami-gun, Shiga Prefecture; hereinafter referred to as the "Group" collectively with FEC) have decided to merge American Furukawa, Inc. (hereinafter referred to as "AFI"), which manufactures and sells automotive electric components in the United States, and Furukawa Wiring Systems America Inc. (hereinafter referred to as "FWSA"), which manufactures and sells automotive wire harnesses.
Both companies are wholly owned subsidiaries of the Group.
Purpose of Merger
Since 2009, the Group has embarked on restructuring to expand its automotive parts business in North America. In April 2009, the Group took control of joint venture FWSA´s management and, in June 2010, converted FWSA into a wholly owned subsidiary. Since then, by strengthening collaboration with AFI, which manufactures and sells automotive electric components, including wire harness parts, the Group has achieved further cost reduction and improvement of QCDDM (*1), etc., and sought to further expand wire harness business in North America. Through the proposed merger, the Group plans to further increase collaboration with AFI, with a view to consolidating its business base and improving business efficiency.
Summary of Merger
- Date of merger : September 30, 2011 (planned)
- Method of merger : AFI will be the surviving company and FWSA will be dissolved.
Profile of the Merging Companies
|Surviving Company||Dissolved Company|
|Company Name||American Furukawa, Inc.||Furukawa Wiring Systems America Inc.|
|Description of Business||Manufacture and sales of automotive electric components Sales of Furukawa and other company products||Manufacture and sales of wire harnesses|
|Head Office||Plymouth, Michigan, the United States||El Paso, Texas, the United States|
|Controlling Share||Furukawa Electric 100%||Furukawa Electric 60%, Furukawa Automotive Systems 40%|
|Sales (FY2010)||131 million USD||70 million USD|
|Number of Employees
(as of the end of FY2010)
(including Mexican subsidiary)
Post-Merger Status (from October 1, 2011)
- Company Name : American Furukawa, Inc.
- Head Office : Plymouth, Michigan, the United States
- Controlling Share : Group 100% (Furukawa Electric 70%, Furukawa Automotive Systems 30%)
- Representative : Noboru Matsuki
Impact on Performance
The merger will have no significant impact on the consolidated earnings of Furukawa Electric for the fiscal year ending March 31, 2012