Tsuda to Add Productive Line for Signal and Control Cables

Kyoto based electric wire and cable maker, Tsuda Electric Wire & Cable plans to introduce an additional productive line for signal cables and control cables to existent 2 lines in Kyoto plant with investment of approximately 150 million yen. The new line will start operation in 2011. The firm eyes the sales expansion not only in domestic market but at overseas.

Tsuda supplies signal cables and control cables mainly to power companies and railway companies. The annual production of these cables totaled about 800 tonnes of copper in fiscal 2009 ended in March 2010. The existent 2 lines are in full operations. The firm plans to construct another productive line along its 3-year management plan for fiscal 2010-2012, utilizing a space where productive equipment for high voltage power cable was laid. Tsuda withdrew from high voltage power cable business in fiscal 2009.

The firm will produce high functional cables with a new line, mainly insulated by polyethylene, while dedicate existent 2 lines to common type cables. Tsuda’s production of signal cables and control cables is expected to reach 1,000 tonnes of copper per year after the new line enters operation.

The firm eyes overseas railway market. Railcar demand is currently growing mainly in emerging countries. Tsuda’s optical fiber products were previously adopted to control units of China’s high speed railcars. Tsuda seeks sales growth at overseas based on this achievement.

For fiscal 2012, the final year of the current 3-year management plan, Tsuda targets annual recurring profit at 360 million yen. In fiscal 2009, the firm returned to the black after 3 years and posted recurring profit at 139 million yen.