Furukawa Electric to Expand Chinese Auto-parts Business

Furukawa Electric announced on Tuesday the firm reshuffles Chinese automotive parts operations. The firm tries to expand the business through the transactions and next step reshuffle. The firm tries to expand the Chinese auto-parts business when Chinese automobile production is expected to 11 million units in 2012 from 7.2 million units in 2008. The firm targets 32-35 billion yen of sales for Chinese auto-parts business in 2013 compared with 24 billion yen in 2008.

The firm increased the share in Furukawa GP Auto-Parts (HK), which is an investment company for Chinese auto-parts business, and Changchun Furukawa GP Automobile Harness (CFGH), which is auto-parts maker, from current 80% to 100%. Furukawa Electric sells interest in Shanghai Jinting Automobile Harness (JAH). Furukawa Electric agreed with the joint venture partner of GP Industries (GPI) of Singapore for the transactions. Furukawa Electric purchased remaining 20% shares in FGP and CFGH controlling 100% while Furukawa Electric sold 50% share in JAH to company related to GPI.

Furukawa Electric tries to reshuffle the operations controlled by FGP after Furukawa Electric controls 100% of FGP. Furukawa Electric tries to expand the sales in northeast and northern parts of China by expanding tie-up between CFGH and existing wiring harness maker, Tianjin Jinhe Electric Engineering. Furukawa Electric plans to expand auto-parts business in middle of China by expanding the share in auto-parts plant in Chongqing, in which Furukawa Electric has 50% share.