Superior Essex, a global leader in the magnet wire and communication cables industry and a majority owner of the Essex Furukawa Magnet Wire joint venture with Furukawa Electric, announced that it has agreed to take over the remaining minority interest held by Furukawa Electric in Essex Furukawa.

A press release said that when the transaction is completed, Superior Essex will become the sole owner of the brand, assets and operations currently conducted by the global Essex Furukawa joint venture. Superior Essex plans to relaunch its magnet wire business under a new company name this year. This entity will continue to operate all current facilities of the Essex Furukawa joint venture around the world, which includes the Japanese and Malaysian (Kuala Lumpur) magnet wire facilities contributed by Furukawa Electric in October 2020.

“I want to thank the entire Furukawa Electric team,” Superior Essex CEO Daniel Choi said. “Over the last several years—operating together as Essex Furukawa—we have been able to create many successes.”

The collaboration between Superior Essex and Furukawa Electric in Essex Furukawa began in October 2020, with the aim of leveraging their combined experience and knowledge to drive innovation and deliver manufacturing excellence, technological advancement, and outstanding customer service.

The acquisition of Furukawa Electric’s minority interest in Essex Furukawa marks an important milestone for Superior Essex as it takes full control of its global operations and strengthens its commitment to delivering exceptional products and services to its customers worldwide.

Superior Essex is the parent brand of Essex Furukawa Magnet Wire, Superior Essex Communications, Essex Energy Italy, IVA, Lacroix + Kress, Hi-Wire, and Essex Brownell. It has over 3,000 employees in 11 countries, on three continents. Furukawa Electric Group has 127 group companies including Furukawa Electric Co., Ltd., and approximately 50,000 employees around the world.

As part of $73 million in investments, Superior Essex Communications plans to expand its plant in Brownwood, Texas, by 90,000 sq ft to help meet strong global demand for OSP fiber optic cables, drop fiber and hybrid cables.

A press release said that the additional space will expand the site to more than 500,000 total sq ft of production space. The initiative is expected to create 170 new jobs, and some existing positions will be switched from manufacturing legacy OSP copper cable to optical fiber cables.

The investment will include manufacturing equipment and incorporate green building practices—such as Power over Ethernet (PoE) lighting and the use of repurposed equipment—and explore the use of solar and battery power sources for the plant.

“The Brownwood plant improvements are not only an investment in our company, but also an investment in U.S. manufacturing and in communities across America,” said Superior Essex Communications President Brad Johnson. “This expansion will create manufacturing jobs right here in America, which will bring more employment opportunities to the Brownwood
region and boost production of American-made broadband products.”

Superior Essex Communications is focused on creating the future of smart and sustainable communications by developing technology that connects and respects the world, can be deployed to support Government initiatives supported by the company to increase U.S. high-speed internet access for all Americans.

Superior Essex Inc. has signed an agreement to purchase Lacroix + Kress GmbH, a leading oxygen-free copper (OFC) drawing manufacturer in Europe, from Mutares SE & Co. KG.

A press release said that the strategic acquisition further solidifies a commitment by Superior Essex to the growing EV market. OFC, it noted, is a key component in electric vehicles (EVs). The deal will allow Superior Essex to create vertically integrated operations in Europe between its magnet wire businesses and a joint manufacturing site in Bramsche, Germany. A second plant in Neunburg vorm Wald, Germany, will also expand the specialty wires offerings. The two plants have approximately 250 employees.

“This is an exciting investment into not only the future but also the present,” said Klaus Borstner, president of Essex Furukawa Magnet Wire Europe, Essex Energy Italy and Global IVA Enamels in Europe and China. He believes the acquisition will create synergy between the plants and more rapidly advancing innovation for the automotive, energy, and industrial industries. “Having the two plants share a location in Bramsche can immediately improve efficiencies, and increase innovation, while the new location in Neunburg vorm Wald allows us to expand our product portfolio. ... We believe that this acquisition will help add value to our existing customers as well as create new opportunities as we honour the existing relationships that originated with Lacroix + Kress.”

The sale of Lacroix + Kress to Superior Essex follows Mutares’ exit strategy to find the best new owner. “We believe that Superior Essex can leverage significant synergies not only due to the already strong business relationship between the two companies but also due to their shared local presence in Central Europe,” said Johannes Laumann, CIO of Mutares SE & Co. KGaA.

Both Superior Essex and Lacroix + Kress were previously affiliated through a European Joint Venture with Nexans in 2005. This acquisition brings the two companies once again under the same ownership. The transaction is expected to be completed during the first quarter of 2023.

7/8/21  Superior Essex has completed an agreement to become the eighth corporate partner of The Copper Mark, which it notes is the only comprehensive social and environmental assurance program for the copper industry.

A press release said that the partnership aligns with the corporate sustainability goals of Superior Essex, and its recently announced Vision 2030 for the Essex Furukawa Magnet Wire brand. The focus of the initiative is to responsibly source raw materials being used in its magnet wire products. Superior Essex Communications, a global producer of communication cabling, has been a leader in sustainability since 2011, working in collaboration with its copper suppliers.

The Copper Mark demonstrates the copper industry’s responsible production practices and industry contribution to the sustainable development goals of the United Nations. It assesses criteria of 32 different environmental, social, and governance “issue areas” of sourcing of minerals and metals. It sets to establish sound management practices based on voluntary standards for supply chains.

Annie Bevan, the global head of sustainability for Superior Essex, told WJI that the formalization of the relationship helps the brand advance its efforts. “This commitment showcases the ways in which our sourcing and sustainability efforts can work hand in hand within the organization, as well as the upstream and downstream activities outside of the organization.”

“This partnership is a victory from all sides of our business operations,” said Scott Wilde, global vice president of strategic sourcing for Superior Essex. “As our CEO, Brian Kim, recently launched his Vision 2030 commitments, we took this as a challenge to be forward thinking with green production and improving our product from the source which is a major step in the right direction.”