Furukawa Electric To Produce Power Cables In China
Thursday, Jul 22, 2010
Furukawa Electric Co. said Wednesday that it will begin joint-venture production of industrial-use rubber-insulated power cables in China.The major cable manufacturer plans to establish Huatong Furukawa (Tangshan) Cable Co. in late August with Hebei Huatong Wires & Cables Group Co. To be capitalized at roughly 1.75 billion yen, this joint venture will be 45%-owned by the Furukawa group, with the remainder held by the Chinese power cable producer.
The venture is expected to employ about 200 people and begin producing rubber-insulated power cables for use in mining and oil drilling equipment, as well as for wind turbines, at a Hebei Huatong factory.
By offering products with high added value and higher quality, the joint venture is expected to generate sales of 9.5 billion yen in fiscal 2011.
The Chinese market for mining-use cables was worth around 77 billion yen in fiscal 2009. Furukawa sees the market growing at a pace of 10% a year.
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