Tatsuta Suffers Weak Power Cable Business and Enjoys Strong EMI Film Sales

Mr. Masanobu Kimura, president of Tatsuta Electric Wire & Cable, Osaka based major electric cable maker, met Japan Metal Bulleting and told the company’s six-month consolidated result for April-September 2011 is expected to exceed the estimation thanks to favorable sales of electronic materials, especially EMI (electro magnetic interference) shielding film. However, he explained electric wire and cable unit is suffered from demand downturn after the Japan Earthquake.

Mr. Kimura said power cable order receipts for power companies’ maintenance had almost stopped until July-September and the sales decline is unlikely to be covered in the second half year. In April, speculative orders temporarily expanded for building wires and cables but the demand rapidly toned down along delayed restoration of disaster areas and weak Japanese economy. Mr. Kimura suggested market condition may worsen more in the second half year of October-March.

On the other hand, Tatsuta has accelerated capital expenditure to expand EMI film output capacity at Kyoto plant, Japan one year ahead along with rapid market growth of smart phones. Mr. Kimura explained Kyoto plant’s new productive line with 200,000 square meters output capacity per month started operation in April and reached full operation in August.

Mr. Kimura said Tatsuta is trying to optimize electric wire and cable business by downsizing of telecom cable unit. At the same time, the company progresses cost reduction and new customer cultivation for industrial cables in cooperation with the subsidiary, Chugoku Electric Wire & Cable. He explained Chugoku Electric Wire & Cable’s offshore plant in Changzhou City of Jiangsu Province, China will complete within 2011 and start operation in April 2012. The plant will supply high grade industrial cables to Japanese customers’ local sites in China.