Sumitomo Electric Expands Wire Harness Sales to US, Euro Automakers

Sumitomo Electric Industries expands the order receipt for automotive wiring harness from non Japanese automakers. The firm got order for major models of Peugeot of France and Ford Motor of USA while the firm gets major order from Volkswagen of Germany one after another. Sumitomo Electric considers building new production sites worldwide to meet higher demand. With the major order, the firm increases the world automotive wiring harness market share by 1 percentage point from 21% now targeting 25% by the end of March 2013. The firm got major order from Mexican and Indian operations of Volkswagen. Sumitomo Electric builds new plant to serve Volkswagen’s new plant, which the firm prepares for the start up. Sumitomo Electric starts the operation of the new plant, which has around 1,200 of employees and is in middle of Mexico, Aguascalientes, in June 2008 The firm studies to build new plant in India. The firm eyes joint venture with major automotive parts maker, Sumi Motherson Group, which is partner with Sumitomo Electric Burnets in Indian business. Sumitomo Electric acquired Sumitomo Electric Bordnetze of Germany, which is major wiring harness maker and has served Volkswagen, in March 2006. With the German force, Sumitomo Electric increases order receipt from Volkswagen. Sumitomo Electric starts supply to Peugeot and Ford in 2009. Sumitomo Electric studies to build new plants to serve the major automakers. The firm targets 25% world automotive wiring harness market share in the final year of mid-term plan to fiscal 2012 ending March 2013. The firm especially tries to increase the share for non Japanese automakers from 9-10% to 15%. The president Masayoshi Matsumoto said the firm tries to clear the 25% target before fiscal 2012. Sumitomo Electric posted 58 billion yen of consolidated operating profit with 1.096 trillion yen of sales for automotive unit in fiscal 2006. The profit and sales represented around 45% of total company. The unit targets 67 billion yen of operating profit with 1.41 trillion yen of sales in fiscal 2009.