Onamba Launches New 3-year Plan to Grow New Businesses

Onamba, Osaka based electric wire and cable manufacturer, announced on Friday its new 3-year management plan starting April 2007 to expand consolidated net sales by 19% to 34 billion yen and recurring profit by 15% to 2.3 billion yen in fiscal 2009 ending March 2010 compared with fiscal 2006. Along the new 3-year plan the firm aims to expand sales and profits of solar cell wiring unit, ultra-fine special cable, amusement/automobile related businesses with a base of wiring harness business for flat panel display (FPD).Onamba achieved targets of the previous 3-year management plan in fiscal 2006, a year earlier than originally planned. During next 3 years the firm aims to become a wiring harness maker for any appliances from a wiring harness top maker especially for consumer applications. The firm already has more than 30% share in world FPD wiring harness market. On the base of FPD wiring harness business, Onamba tries to grow up other businesses such as solar cell wiring unit and ultra-fine special cable.Onamba will advance capital expenditure and product development in fiscal 2007 to establish growth foundations. Then the firm will start commercial operation of Vietnamese new plant to produce solar cell wiring unit in fiscal 2008. The firm also aims to enter ultra-fine special cable market in fiscal 2008, especially for industrial equipment, medical instruments and cellular phones, with a target of more than 2 billion yen sales per year in fiscal 2009. The sales of 3 strategic businesses, which are solar cell wiring unit, super-fine special cable and amusement/automobile related businesses, will account for 11.2 billion yen in fiscal 2009, which represent one third of Onamba’s total sales. Onamba plans capital expenditure of total 2 billion yen during 3 years, 400 million yen for Vietnamese new plant, 600 million yen for output expansion of wiring harnesses and 600 million yen for starting commercial production of ultra-fine special cables. In fiscal 2007 the firm estimates consolidated net sales of 30 billion yen, recurring profit of 2.1 billion yen and net profit of 1.25 billion yen, all of which will increase from fiscal 2006. The firm will advance capital expenditure for 3 strategic businesses, expand sales and profits and strengthen its management power in the first year of the new mid-term plan.