Furukawa Electric and GPI agreed simultaneously that Furukawa Electric acquires 30% share of FGP from GPI and that FGP will wholly acquire GP Auto Cable (Huizhou) Ltd. (GPAC), a joint venture of GPI and Furukawa Automotive Parts Inc, a subsidiary company of Furukawa Electric, as 90.42:9.58 respectively for manufacturing Automotive Wiring Harness in China.
These acquisitions allow Furukawa Electric to reorganize production sites in China so that Furukawa Electric takes its management control in each site, and will fulfill customer satisfaction through QCDDME(a) in order to expand Automotive components business in China market.
Furukawa Electric will spend approx. JPY 2 billion for these acquisitions from the Strategic Fund JPY 20 billion established in March 2005. Furukawa Electric plans to invest more aggressively for the further reorganization in China from now on.
Background
In order to increase the business opportunities in China where is one of the most growing markets in the world, the further expansion of business chance to Japanese Car makers, who have been entering in the market aggressively, is indispensable condition.
It is important for Furukawa Electric to have management control of FGP in order to achieve such expansion.
The above acquisitions lead Furukawa Electric to get a toehold in Chinese market for further business expansion on Automotive Wiring Harness and Components.
Reorganization and Effectiveness
Furukawa Electric will reorganize the production sites in China based on the concept of "Covering four Area in China" (Southern, Northern/North-Eastern, Eastern, Middle-Western).
The above reorganization leads to Furukawa Electric the synergy by the manufacturing both Wiring Harness and Components at the same site, and the enhanced presence in Chinese market. After the above reorganization, Furukawa Electric targets to increase the sales revenue of Automotive Products in China to JPY 30 billion in 2009.
(a) QCDDME: abbreviation of Quality, Cost, Delivery, Development, Management and Eco-Friendliness
Out-line of The Furukawa Electric Co., Ltd.
(1) Head Office : 2-3, Marunouchi 2-Chome, Chiyoda-ku, Tokyo,
100-8322, Japan
(2) President
& CEO & COO : Hiroshi Ishihara
(3) Share Capital : J.Yen 69.3 Billion (as of March 31, 2006)
(4) Sales Revenue : J.Yen 872.5 Billion (year ended March 2006)
(5) No. of employees : 4,350
(6) Business : Manufacturing and sales of Automotive
Products, Electronics Components, Magnet
Wire, Plastic Products, Power Cable, Optical
Fibre Cable, Copper Products, Aluminum
Products
Out-line of GP Industries Limited.
(1) Head Office : 1 Temasek Avenue # 18-02, Millenia Tower,
Singapore 039192
(2) Chairman : Victor Lo Chung Wing
(3) Share Capital : US$ US$142.3 Million (as of March 31,2006)
(4) Sales Revenue : US$ 299.4 Million (year ended March 2006)
(5) No. of employees : 5,700
(6) Business : Manufacturing and sales of Electronics,
Battery, Wiring Harness, Cable, and Light
Fittings products, LED super-screens and
Electronic components
Out-line of Furukawa GP Auto Parts (HK) Limited. (before acquisition)
(1) Head Office : Gold Peak Bldg.7F, 30 Kwai Wing Rd,
Kwai Chung, N.T., Hong Kong
(2) President Brian Li Yiu Cheung
(3) Share Capital : HK$ 62 Million (as of March 31, 2006)
(4) Business : Investment Company
Out-line of GP Auto Cable (Huizhou) Ltd. (before acquisition)
(1) Head Office : No.20, Xing San St. Jin Long Rd. Xiao Jin
Kuo Town
Huizhou City, Guangdong, P.R.China
(2) President : Stephen Mak
(3) Share Capital : US$ 6.15 Million (as of December 31, 2005)
(4) Sales Revenue : HK$ 435.2 Million (year ended December 2005)
(5) No. of employees : 2,216
(6) Business : Manufacturing and sales of Automotive Wiring
Harness
Contact:
Furukawa Electric Co., Ltd. Toshinori Kimura, +81-3-3286-3050 Email Contact