Furukawa to Transfer Antinoise Products Operation to Taiwan and China

Furukawa’s subsidiary, Furukawa Denshi transfers the production of antinoise products to operations in China and Taiwan in fiscal 2006 ending March 2007. The Fukushima based firm tries to cut the production cost under the severe competition though the demand keeps growing worldwide. The firm tries to improve the profitability by consigning press forming of magnetic core to Taiwanese maker after the firm already consigned wire coiling process to Chinese maker. The Iwaki plant produces 1.2 million units per month of press forming magnetic core after output expansion from 700,000 units 2 years ago. However, the plant reduces the profit under the competition with cheaper foreign products. The firm keeps the selling price of the high quality core products. However, the firm decided to transfer the operation to offshore sites when the users pressure the firm to reduce the price. The firm planed to consign forming of magnetic core to Taiwanese maker in April. However, the firm tries to transfer the operation by the end of March 2007 after pending preparations including raw materials procurement and training of employees. The firm transfers the monthly 1.2 million units output to Taiwan. The firm processes the core made in Taiwan into coil at plant of Chinese partner. The firm produces high purity metric arsenic, for which the firm has 75% of world market share, at the main plant in Iwaki and produces the core products at subsidiary plant there. The firm produces the core products with iron dust, sendust and ferrite amorphous dust and ships the core to Chinese partner.