July 5, 2012
Our group companies Asahi Electric Works Co., Ltd. (hereinafter “Asahi Electric”), Inoue Manufacturing Co., Ltd. (hereinafter “Inoue Manufacturing”) and Furukawa Power Components Inc. (hereinafter “Furukawa PC”) have agreed to sign an absorption-type merger agreement effective October 1, 2012 that will retain Asahi Electric and dissolve Inoue Manufacturing and Furukawa PC. Asahi Electric plans to change its name to Furukawa Electric Power Systems Co., Ltd. (hereinafter “FEPS”) as of the same date. We are also preparing to transfer our company’s electric component business to FEPS as of the same date, and will consider integrating our electric component-related businesses (F-Co Products Department and Electric Feeders Department) with FEPS as of April 2013.
This move is one of the measures toward the “global expansion of the transmission infrastructure business” as indicated in the Medium-Term Management Plan New Frontier 2012, as FEPS establishes a philosophy of “being a company that offers electric transmission and distribution system solutions, including those for new energy, thereby contributing to global socioeconomic development,” and aims to increase sales.
Background and objectives
Since 2005, our Company has restructured VISCAS Corporation in relation to the ultra high-voltage cable business and Furukawa Electric Industrial Cable Co., Ltd. in relation to the industrial electric wire business for the structural reform of the energy segment. In the area of the electric component business, our Company made Furukawa PC a wholly owned subsidiary in 2007, with Inoue Manufacturing following in 2008, and Asahi Electric in 2010.
In relation to the electric energy businesses, technological development is foreseen to progress in the domestic market for advanced power transmission and distribution networks, of which a typical example is Smart Grid, for solar power, wind power and other natural energy, and for storage cells and other electrical energy storage systems. The markets related to these products are expected to expand. Looking overseas, demand for electric infrastructure development is likely to increase in China and other Asian countries, Brazil and Russia, which have witnessed rapid economic growth.
FEPS will begin anew as a company that integrates the electric component business units of the Furukawa Electric Group and offers every solution possible concerning power transmission and distribution systems. FEPS will also continue to heighten the monozukuri (product creation) strength that it has long nurtured to become a comprehensive electric component manufacturer that covers all aspects of power supply networks from the power stations to the ultimate users, and develop new technology and products that contribute to society. We will establish a basic policy for “Establishing and implementing technological development capabilities that precede the new energy age,” and “Consolidating overseas business divisions and overseas bases,” to dramatically improve our business value.
Outline of FEPS (as of October 1, 2012 (planned))
|Trade name||FURUKAWA ELECTRIC POWER SYSTEMS CO., LTD.|
|Address of head office||Azamino, Aoba-ku, Yokohama-shi, Kanagawa Prefecture (currently head office of Asahi Electric)|
|Representative||Michio Okuno (current President, Inoue Manufacturing)|
|Capital||300 million yen (planned)|
|Number of employees||Approximately 600 (planned; does not include F-Co Products and Electric Feeders departments)|
|Bases||National sales bases:||Sendai, Yokohama, Nagoya, Osaka, Hiroshima, Fukuoka|
|National manufacturing bases:||Nagai, Nikko, Yokosuka, Yokohama, Ebina, Kumamoto, Hiratsuka|
|Overseas manufacturing bases:||China(Shanghai, Tianjin), Thailand|
|Business scale||Total sales of 15.4 billion yen (FY2011 actual; does not include the F-Co Products and Electric Feeders departments)|