Tan Cuong Thanh of Vietnam Eyes Bare Copper Wire Supply in Japan

Tan Cuong Thanh, the largest private maker of electric cable in Vietnam, opened a satellite office in Tokyo, Japan this month. Tan Cuong Thanh aims to start sales of bare copper wire or building wire in Japanese market. The company also eyes to tie OEM (original equipment manufacturing) agreements with Japanese electric cable makers. The company appeals cost and price advantages by cable production at Vietnamese plants.

Tan Cuong Thanh operates Ho Chi Minh plant and Da Nang plant in Vietnam, mainly manufacturing power cables from 8-millimeter-diameter bare copper wire. The company manufactures 8mm bare copper wire with electrolytic copper purchased mainly from India and Australia. Tan Cuong Thanh’s total copper melting capacity is estimated at 68,000 tonnes per annum. The company also holds an aluminium melting furnace.

The satellite office in Tokyo, Tan Cuong Thanh Japan, is the company’s first offshore business site, established with an initial investment at 10 million yen. The capital will be increased in 2010.

Tan Cuong Thanh Japan plans to supply 8mm bare copper wire to Japanese customers, receiving orders by a lot per 40 foot container on L/C (letter of credit) base. The delivery lead time is estimated at 40-50 days from order receipts. The company expects the selling price could become lower than Japanese domestic price even including shipping charge thanks to cheaper productive costs at Vietnamese plants and current trend of stronger yen exchange rate.

As to building wires, Tan Cuong Thanh has already acquired JIS (Japanese Industrial Standards) for IV (wire insulated by vinyl) and CVV (control-use vinyl insulated vinyl sheathed cable). The company prepares for JIS acquisition for additional items if the customers require. Meanwhile, the company is also positive to enter OEM deals with Japanese cable makers.