Furukawa Electric and SWCC Showa Holdings announced on Tuesday they agreed to merge sales forces of commodity grade electric wire for construction and wholesalers. They integrate subsidiaries of Furukawa Electric and SWCC Showa Holdings to establish new company, Showa Furukawa Cable in April 2010.
Furukawa Electric controls 55% of the new company with 45% share by SWCC Showa Holdings. They integrate the brands for the major products while they integrate the sales force for electric wire related products. They seek synergy by integrating logistics and sales sites while they improve the efficiency by controlling total inventory. Domestic copper electric wire demand decreases under worldwide recession. They decided the merger when the market could be severer while the construction market was stable.Japan Steel Scrap Composite Prices (Sangyo Press)
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