Furukawa Electric’s Magnet Wire Production Recovers

Furukawa Electric’s magnet wire production improves recently. The firm plans to make monthly 1,500 tonnes of enamel wire and 85,000 kilometers of triple insulated magnet wire in fiscal 2009 ending March 2010. The level is around 70-75% for enamel wire and around 80-85% for triple insulated magnet wire compared with the level in the peak in April-September 2009.

Automobile application represents 60-70% for enamel wire. The order receipt in January-March decreased to less than 50% of the same period of 2008. The demand recovers slow pace. The firm expects the production could reach 1,700-1,800 tonnes per month in October 2009-March 2010.

Triple insulated magnet wire is used mainly for electronics devices. The demand recovers rapidly when the demand recovers for cell phone battery charger and personal computer power supply devices. The production in a couple of months recovers near 85% of same period of 2008. The group companies also increase the production level to 80-85% level. The Malaysian plant reached 75% level of same period of 2008 and the US plant recovers same level production as a year earlier.

However, the firm expects loss for magnet wire for fiscal 2009. The firm expects the big loss in the first half year cancels smaller profit for the second half of the year.