Hitachi Cable Acquires US Brake Hose Business

Hitachi Cable announced on Friday the firm established new US company to make brake hose for automobile. The firm acquired the business from Coupled Products of USA. Hitachi Cable’s output capacity increases by 37% in fiscal 2008 from fiscal 2007 when the firm expands the capacity in Thailand and China. The world market share also increases from 14% to more than 20% becoming the top supplier for the product. The firm established Hitachi Cable Florida with US$ 14 million of capital and around 300 employees in February 27 after the acquisition starting the operation. The firm controls the company through US subsidiary with US$ 55 million of sales. The firm has automotive brake hose production bases in Japan, United Kingdom, Thailand, China and USA. The firm launches new plants in China and Thailand to improve the global supply network. The output capacity will increase from 41 million units in fiscal 2007 to 56 million units in fiscal 2008. The firm increases the US business weight from 30% of the sales to more than 40%. The sales of the business will increase to 18 billion yen for fiscal 2008 from around 10 billion yen for fiscal 2006.