Bando Densen to Start FFC Production in Thailand

Bando Densen, an independent electric cable maker headed in Saitama, Japan, will open its first plant in Thailand to manufacture flexible flat cable (FFC). The firm will rent a plant building inside Amata Nakorn industrial estate in Muang, Chonburi Province and start commercial production of FFC around July-August 2009. The firm expects to accept order receipts from nearby Japanese electric appliance makers and office equipment makers. The firm aims initial revenue of 300 million yen per year with investment of 100-200 million yen.

Bando Densen now operates productive sites in Japan and China. FFC is manufactured in mass volume at Shanghai and Dongguan plants, China. The firm decided to open Thai new plant for risk diversification of operative concentration in China. The firm becomes to operate 3 FFC plants at overseas.

The factory building is now under construction. Bando Densen will establish a wholly owned subsidiary in Thailand after the building completion. Productive facilities will be transferred from Shanghai and Dongguan where there are spare output capacities. Bando Densen may start electric wire production other than FFC in future depending on the local demand situation.

FFC is a tape-type electric cable whose copper conductors are laminated by insulating materials. Bando Densen’s FFC has been adopted into personal computers, game machines or office machines. The firm aims to receive orders from major electric appliance makers and office equipment makers in Thailand, too.

Bando Densen estimates its consolidated annual revenue at 9.2 billion yen for 2008, almost as flat as 2007, and operating profit at 470 million yen, down by 4.5% from 2007. FFC accounts for approximately 25% in the consolidated sales, one of the most profitable products for the firm. The firm’s overseas sales were approximately 3 billion yen through 2008. Thai subsidiary could contribute to the offshore revenue by around 10%.