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News Release

Merger of American Automotive Parts Subsidiaries
~ Accelerating expansion of automotive parts business in North America ~

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

  1. Date of merger : September 30, 2011 (planned)
  2. 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)
747 911

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

(*1): QCDDM stands for the five conditions automobile manufacturers require their suppliers to fulfill: quality, cost, delivery, development and management.

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