November 6, 2015
Mitsubishi Cable Industries, Ltd.
Fujikura Ltd. (President & CEO: Yoichi Nagahama; hereinafter "Fujikura") and Mitsubishi Cable Industries, Ltd. (President: Hisayoshi Homma; hereinafter "Mitsubishi Cable") agreed to start to examine integration of their industrial wire & cable business by April 1, 2016 as a prospect.
Fujikura and Mitsubishi Cable have been running wire & cable sales business for construction and electric works by establishing a joint venture company, "Fujikura Dia Cable Ltd." (Fujikura group's investment ratio: 70%, Mitsubishi Cable's: 30%; hereinafter "FDC") since 2005.
The domestic market for industrial wire & cable has already matured, and their demands can not be expected to increase significantly in the medium- to long- term. Under the common understanding that strengthening Fujikura and Mitsubishi Cable's businesses through "focus and deep" of their business resources and synergy effects are urgent issues, the key to this agreement is expanding the scope of integration to FDC concerning sales business of industrial wire & cable as well as integrating their manufacturing. Full-scale examination to make the above concrete will start soon.
Production sites which are expected to be subject to integration of manufacturing are Fujikura's Suzuka and Numazu-works, and its subsidiary Shinshiro Cable, Ltd. and Mitsubishi Cable's Kumagaya, Fukui and Amagasaki-works.
From now on, Fujikura and Mitsubishi Cable will proceed with discussions and examinations of the integration, aiming to realize it in April, 2016.
For further information, please contact:
Fujikura Ltd. Corporate Strategy Planning Division, IR & Public Relation Group,
Mitsubishi Cable Industries, Ltd. Corporate Administration & Personnel Dept.