Tokyo Electric Wire Industrial Reorganizes Offshore Plants

Tokyo based independent electric wire maker, Tokyo Electric Wire Industrial reorganizes the overseas productive sites to close European and US plants toward the end of January 2007 and to concentrate management resources into the existent plants in China and Southeast Asia. The firm produces mainly wiring harness for electric appliances such as office automation equipment, home appliances and automotive components at the overseas plants.

Tokyo Electric Wire Industrial will hold 2 domestic plants in Tochigi and Iwate Prefectures and 4 offshore plants in Thailand, Malaysia, Dongguan and Shanghai Cities in China after the reorganization. The parent already closed French and Slovakian plants and will finish liquidation of Mexican plant at the end of January 2007.

The firm currently posted 20 billion yen of consolidated net sales per year. The firm expects the turnover would not decrease even after closing European and US sites and exceed 20 billion yen in 2007 thanks to demand expansion for electric wire and wiring harness in Asian market. The firm recently supplied electric wire manufactured in Dongguan to European users to respond cost reduction offers from the users.

Tokyo Electric Wire Industrial aims to concentrate management resources into Asian plants. In Dongguan a new factory is under construction to assembly identification photograph machine and photo sticker machine, which is expected to post more than 3 billion yen of yearly sales after starting operation. In Shanghai the firm plans to expand output capacity for electric wire in 2007 when order reception volume is increasing. At Thai plant the firm introduced a sheath extruder in November 2006 in addition to an existent extruding line.