Furukawa Electric Takes Control in US Auto Wiring Harness JV

Furukawa Electric and its automotive parts manufacturing subsidiary, Furukawa AS, announced on Thursday they took a control in Lear Furukawa Corporation, a joint venture company between Furukawa Electric Group and Lear Corporation to manufacture automotive wiring harness in USA. Furukawa Electric Group acquired 60% equity in the JV company from Lear on 6 April. Consequently Furukawa Electric Group’s equity increased to 80% from previous 20%. Furukawa Electric aims to expand automotive parts business in North America.

The JV company’s capital is US$ 8 million (approximately 800 million yen), now 48% shared by Furukawa Electric, 32% by Furukawa AS and 20% by Lear. Furukawa Electric Group seems to have purchased additional shares at around 1 billion yen. The JV company’s name is changed to “Furukawa Lear Corporation.”

Lear Furukawa Corp. posted annual revenue at approximately US$ 100 million in 2008 with about 1,500 employees at the end of December 2008. Furukawa Electric aims to triple the sales in 2015. After this acquisition, Furukawa Electric will improve the JV company’s QCDDM (quality, cost, delivery, development and management) to expand automotive parts business.

Furukawa Electric’s consolidated revenue for automotive parts business unit (except for batteries and copper rolled products) is estimated at approximately 100 billion yen for fiscal 2008 (Apr08-Mar09). The Group’s global share in automotive wiring harness seems at 3%, the 8th position.