Tokyo Rope to Expand Offshore Business for Next Growth

Tokyo Rope Mfg. announced on Friday the firm builds new plants for carbon fiber composite cable in China and USA. The firm plans 11 billion yen of investment for offshore business under the new 2-year plan through fiscal 2011. With the wider offshore operation, the firm targets 10 billion yen of recurring profit in fiscal 2013, which is around 6 times of profit in fiscal 2009 by utilizing the companywide technology and knowhow for materials and engineering.

The firm tries to follow growing demand in USA where the national and local governments conduct annual 500 of bridge repair projects and major power transmission network building projects are planned. The group company, Tokyo Seiko Rope Mfg. builds several hundreds million yen test plant in the plant in Aichi for longer and large diameter carbon fiber composite cable production. The firm exports the products at first stage eyeing offshore production base.

Tokyo Rope Mfg., which got high appreciation for magnetic flux inspection method at technical competition by US government, conducts corrosion test at Manhattan Bridge. The firm plans new management business with rope tester for shipbuilding plant and steel works.

The firm also eyes plant in China for large diameter high end cable and carbon fiber composite cable to serve mining industry. The firm starts operation of new saw wire plant in Changzhou in late 2010. The firm expands the saw wire production capacity to 3 times in fiscal 2011 from fiscal 2009 when the firm constructs saw wire plant in Malaysia to start the shipment in October-December 2010.

The firm improves the offshore cable making joint venture to get order for large bridge projects in the world. The firm plans to submit bid for tender of Italian Messina channel bridge.

The firm tries to expand the sales of engineering products including land and snow slide blocking works and acrylic sound insulation wall in Russia and Kazakhstan preparing for Asian games in 2011 and Olympic game in 2014. The firm already launched new offices in the countries.

The firm plans to increase the offshore sales to more than 18 billion yen for fiscal 2011 from 7.4 billion yen in fiscal 2009. The offshore sales rate increases from 10% to 20-30%. The firm tries to improve the business basis in the 2-year plan as the first step for long term plan through fiscal 2013 for next growth.