Tatsuta Electric Wire & Cable, Osaka based electric cable maker, plans capital expenditure of 2.6 billion yen in fiscal 2007 started April, up to approximately 4 times from previous year. The firm will invest 1 billion yen for electric cable productive equipment in Osaka works, located in Higashi-Osaka City of Osaka Prefecture, Japan, to expand the output capacity of main equipment by 30% by the end of September 2007. In Fukuchiyama works, located in Fukuchiyama City of Kyoto Prefecture, Japan, the firm will construct a new factory specialized in manufacturing optical materials with investment of 300 million yen within fiscal 2007. The firm aims to expand the sales of optical materials to 4 billion yen per annum after 3 years.Electric wire and cable business accounts for 88% in Tatsuta’s consolidated net sales. The demand keeps favorable for domestic power companies and construction markets. Shuya Fujie, president of Tatsuta Electric Wire & Cable, said Tatsuta’s productive lines currently maintain high operations and electric cable demand is expected to increase more.The firm aims to improve bottlenecks in cable productive lines by renewal of main facilities with the investment. Tatsuta’s cable output capacity will expand by maximum 30% and the productive lead time can be shortened.The firm plans to start operation of the new optical material factory in Fukuchiyama works in October 2007 and to triple output capacity for optical materials in next 3 years. Consequently the sales of optical materials will expand from current 300 million yen to 4 billion yen per annum.
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