Furukawa to cease some cable production
The Furukawa Electric Group announced that two of its businesses (Furukawa Electric Co., Ltd. and Furukawa Magnet Wire Co., Ltd.) will cease manufacturing medium size and large size polyester-covered enameled wires and some of its heat-resistant, solderable enameled wires in the first half of this year.
The announcement at the company's website said that the decision was made as part of a plan to improve the Japanese company's business structure. "In the future, the companies will concentrate the management resources to 'the highly functional magnet wires' such as automotive flat wires which contribute to greening of the automobiles and the various heat-resistant enameled wires which are necessary for higher efficiency and higher output of motors used in electric components and industrial, and continue to contribute to expand of our customer base'."
The announcement cited the soaring costs for raw material varnish, electricity prices and transportation costs, etc., which have made it hard to achieve a profit in "polyester-covered enameled wire products." It noted that the company has made efforts to cut costs, but "in view of the business continuity in the future and the production capability of the current situation, the companies have come to the conclusion that the manufacturing and the selling the products in the future will be very difficult."
Specifically, the products that will be eliminated include medium- size and large-sized polyster-covered enameled wires and heat-resistant, solderable enameled wires more than 4 mm in diameter that are manufactured in the Mie plant of Furukawa Magnet Wire Co., Ltd.