Furukawa Electric Gets Majority in Harness JV in Chongqing

Furukawa Electric announced on Monday the group got controlling share in Chinese automotive wire harness making joint venture, Chongqing Changhua Automobile Harness by increasing the group’s share from 50% to 65%. Furukawa Electric group improves the Japanese style service from design to procurement, manufacturing and logistics through cooperation with harness design and sales company in Tianjin to follow growing demand in Chinese automobile market.

Furukawa Auto Parts (HK), which is joint company between Furukawa Electric and the automotive parts making subsidiary, Furukawa Automotive Systems’, had 50% share in Chongqing Changhua Automobile Harness. The group purchased additional 15% share from the Chinese partner for around 45 million yen.

Chongqing Changhua Automobile Harness plans 5 billion yen of sales in 2015 compared with planned 1.2 billion yen in 2010 and around 800 million yen in 2010. Furukawa Electric improves the cooperation between Chongqing Changhua Automobile Harness and harness design and sales company, Furukawa Automotive Systems Design & Management (Tianjin), which was separated from harness making Tianjin Jinhe Electric Engineering in 2010, to serve local automakers and transplants of Japanese automakers.

Furukawa Electric tries to reduce the cost by making harness at Chongqing Changhua Automobile Harness while the firm transported the harness from the group’s plant in southern China. Chongqing Changhua Automobile Harness also improves the competitiveness by increasing local procurement for better cost structure.

Furukawa Electric started reorganization of Chinese automotive harness and parts business in 2006. The firm tries to control more than 50% share in joint ventures while the firm builds the network in each part of China. After the control of majority in Chongqing Changhua Automobile Harness, Furukawa Electric tries to expand the business by expanding the capacity and cooperation between the plants.