FEIC Strengthens Collaboration with Furukawa Electric Group’s Offshore Bases

Furukawa Electric Industrial Cable (FEIC), Japanese major electric cable maker and a wholly-owned subsidiary of Furukawa Electric, is strengthening business collaboration with Furukawa Electric‘s overseas sites. FEIC plans to send engineers to Huatong Furukawa (Tangshan) Cable, a joint rubber cable company in China while seeks organic cooperation with Furukawa Electric’s sales base in Indonesia. Meanwhile, FEIC smoothly started OEM (original equipment manufacturing) of 6kV XLPE cable in China and the first OEM cables will be delivered to Japanese electric contractor this autumn.

Furukawa Electric has currently advanced out-out strategy to manufacture electric wires and cables at overseas and sell the products to overseas market. FEIC is regarded as one of core companies of this Group strategy.

Huatong Furukawa (Tangshan) Cable is operated by Hebei Huatong Wires & Cables Group, Chinese major electric cable maker, with 55% controlling shares and Furukawa Electric Group with rest 45% shares. FEIC holds 30% shares.

The joint company plans to supply rubber electric cables mainly in China where investment is expanding to electric power and industrial infrastructures. Furukawa Electric also aims to sell rubber cables and other related items in Southeast Asia, the U.S.A., Russia and the Middle and Near East. FEIC plans to send a few engineers to the joint company in order to provide more technological services to broad customers.

In Indonesia, Furukawa Electric opened a sales office in Jakarta at the end of 2010. FEIC eyes local demand growth for electric wires and cables used for infrastructures in Indonesia and Southeast Asia. FEIC tries to deepen business collaboration with Furukawa Electric’s sales office and Furukawa Electric’s affiliate company in Indonesia, PT Sucaco, to follow the market expansion.

As for OEM of 6kV XLPE cables mainly used inside buildings and plants, FEIC commits the production to Hebei Huatong Wires & Cables Group. The trade volume is expected to reach 40 tonnes per month in future.

FEIC estimates its annual cable sales volume would total almost same year-on-year in fiscal 2011 ending in March 2012 while the full-year operating profit could reach 200 million yen and improve from the loss in fiscal 2010. FEIC plans to raise the sales ratio of high functional cables with high values, for example, electric cables for high speed railways, fast chargers for electric vehicles or power supply cables for pressure pumps under water.