Furukawa Electric Shuffles Chinese Harness Plants

Furukawa Electric will shuffle automotive parts production system in China. The firm integrates the 7 wiring harness plants into 5 plants in fiscal 2006 ending March 2007 while the firm controls more than 51% for the all plants. The firm considers production of steering roll connector (SRC) at some harness plants. The firm applies production technology and marketing force for SRC, for which the firm has world no.1 share, to harness business while the firm controls pricing, quality management know how and cost management. The firm has 7 wiring harness plants in northern, western and southern part of China including Changchun, Tianjin, Shanghai, Chongqing, Shenzhen and Huizhou. The firm supplies the products for Chinese transplants of Japanese automakers. The firm controls more than 51% for only 2 plants in Changchun and Shenzhen. The firm already decided to withdraw from 3 plants of the 7. The firm integrates the operations into 5 plants after the firm launches new plant in fiscal 2006. The firm establishes nationwide supply network by allocating the plants in north, west, east and south of China. The firm will expand the network by launching subsidiaries for the 5 plants. The firm plans to produces automotive parts production including SRC, fuse box connectors at the harness plants depending on the market growth. The firm will start production of harness at SRC plant in Tianjin in 2007. The firm tries to increase the share in Chinese harness market to 15%.