Hitachi Cable to Start Industrial Cable Production in Suzhou, Hai Doung

Hitachi Cable’s president Mitsuo Imai said to a reporter of Japan Metal Bulletin the firm makes industrial cable at the subsidiary in Hai Duong, Vietnam and Suzhou, China while the subsidiaries now make electric wire for electronics products. The Vietnamese plant starts mass production of the electric wire in December 2010. Hitachi Cable tries to expand the industrial cable business through the additional production base.

Mr. Imai said the subsidiaries will start industrial cable production in fiscal 2012 ending March 2013. He said the detail is still under discussion but the 2 plants could make electric wire for construction and rail network applications. He also indicated the Vietnamese plant could add copper wire drawing operation as early as possible.

The subsidiary in Suzhou was established in 2003. The subsidiary with 10 billion yen of annual sales is major production base in China. The Vietnamese subsidiary was established in 2008 to supply electric wire for electronics makers in Southeast Asia. The Vietnamese plant will start mass production operation in December after the delay under slow economy. The Vietnamese plant targets annual 10 billion yen of sales in future.

The firm tries to reorganize offshore plants and consolidate into strategic production bases for multiple core products under the 3-year plan through fiscal 2012 while many of the offshore plant make one item with small lot. Hitachi Cable targets 25 billion yen of consolidated recurring profit with 500 billion yen of sales in fiscal 2012 compared with 4.9 billion yen of loss with 372.5 billion yen of sales in fiscal 2009.