SEI to Open New Bare Cu Wire and Al Bar Plant in Thailand

Sumitomo Electric Industries (SEI) announced on Wednesday the firm establishes a new plant in Thailand to manufacture bare copper wire for conductor and aluminium bar for automotive component. SEI will establish the wholly owned subsidiary with capital fund at 1.11 billion baht (approximately 2.7 billion yen) in February 2012 and start the operation in April 2014. The sales plan is 10,000 tonnes per month for bare copper wire and 110 tonnes for aluminium bar in fiscal 2015. The annual revenue target is 47 billion yen in fiscal 2015. The plant will cover the demand growth in China and Southeast Asia areas.

SEI will establish the new production subsidiary, SEI Thai Electric Conductor, in Amata City Industrial Estate in Rayong Province, Thailand in February. The initial output capacity is 17,000 tonnes per month for bare copper wire and 160 tonnes per month for aluminium bar with about 150 employees in fiscal 2015. Bare copper wire will be produced by Southwire continuous rod system. The plant will be the largest bare copper wire plant in Southeast Asia.

SEI presently produces bare copper wire at Osaka works in Japan and Indonesian subsidiary, P.T. Karya Sumiden Indonesia at total 20,000 tonnes per month to meet the demand in Japan, China and Southeast Asia. SEI decided to establish the plant in Thailand to follow the demand growth for automotive electric wire and magnet wire while to diverse location risks.

Aluminium bar is a material for valve of automotive automatic transmission. SEI has produced aluminium bar at the domestic subsidiary, Sumitomo Electric Toyama, and supplied the product to the users. Thai new plant will finish aluminium bar by shape remediating and heat treating processes. Mother material is sent to Thai plant from Sumitomo Electric Toyama where casting, rolling and drawing lines are located.