SWCC Showa Holdings to Establish New Productive Base in China

SWCC Showa Holdings announced on Wednesday the firm would establish a new productive base for wiring harness in Dongguan City of Guangdong Province, China to start operation in December 2006. The firm has operated another factory in Dongguan to produce and export wiring harness. Output expansion was recently needed due to active demand in the region. The new base will become a wholly owned subsidiary which can supply wiring harness directly to Chinese domestic market, when the demand is especially increasing for domestic usage. SWCC Showa Holdings targets 4.5 million pieces of wiring harness output per month and 1 billion yen of annual sales at the new subsidiary in fiscal 2007 ending March 2008.The new subsidiary will become the 4th productive base for wiring harness at overseas. The capital is US$ 700,000, 90% owned by Daiji, the core subsidiary of SWCC Showa Group to produce wiring harness, with 10% control of SWCC Showa (H.K.). The factory building will be 4,400 square meters with 400 employees in fiscal 2007.SWCC Showa Holdings has supplied wiring harness to users in South China through the existent factory in Dongguan which is under control of SWCC Showa (H.K.). However, all wiring harness produced there must be exported and cannot be supplied to Chinese domestic market directly. Then the parent company decided to establish the total subsidiary newly to sell wiring harness directly to Chinese domestic market.SWCC Showa Group currently produces wiring harness for home appliances and office automation equipment in Dongguan, Jiaxing City of Zhejiang Region, China and Hanoi in Vietnam. With establishment of the 4th offshore base, the Group aims to achieve 10 billion yen of consolidated sales for wiring harness business soon along its 3-year management plan to fiscal 2007.