Furukawa Electric to Hike Enameled Wire

Furukawa Electric announced on Monday the firm raises the rolling charge for enameled wire by more than 10% effective for October shipment. Enameled wire is used for motors, electric generators and transformers. The hike will cover Furukawa Electric’s all enameled wire items including overseas products. The firm became unable to absorb cost expansion for varnish and substantial materials caused by oil price upsurge.Furukawa Electric will reflect higher costs for varnish, bobbins, energy, packaging and distribution on the rolling charge. This is the first case the firm raises the rolling charge for all enameled wire items at once.The firm explained costs have expanded by total 40% for varnish, bobbins packaging materials and distribution and by 80% for energies including LPG and electricity since 2004. Varnish cost has surged by 40% during late 4 years, an insulating material for enameled wire. Varnish, bobbins and packaging materials represent about 30% in the total productive costs while energy charges 10%.Furukawa Electric currently produces enameled wire at 2,150 tonnes per month in Japan, 700 tonnes per month in Malaysia and 400 tonnes per month in USA. The firm will hike enameled wire produced at overseas as well. Riken Electric Wire and Totoku Electric, both of which are Furukawa Electric’s subsidiaries, also produce enameled wire with thin diameter. Each subsidiary is also trying to hike the own rolling charge.