Furukawa Electric Expand Harness Business in USA, BRICs

Furukawa Electric announced on Thursday the firm completed the process to control 100% of Furukawa Lear Corporation, which is US based subsidiary to make automotive wiring harness, on June 1 by purchasing remaining 20% share from the partner of Michigan based major automotive parts maker, Lear Corporation. Furukawa Electric tries to expand the sales and improve the quality control through synergy with other US subsidiaries. Furukawa Electric expects the sales will double in 2015 from around US$ 65 million in 2009.

Furukawa Lear changed the name into Furukawa Wiring Systems America Inc. Furukawa Electric controls 60% of the US subsidiary and Furukawa Electric’s automotive parts subsidiary, Furukawa Automotive Systems has 40% share of the US company.

Furukawa Wiring Systems America, which supplies 90% of the products for Honda Motor, develops the market into Toyota Motor, Nissan Motor, General Motors and Ford Motor. Furukawa Wiring Systems America expands cooperation with Furukawa Electric’s US automotive parts subsidiary, American Furukawa, Inc., which makes steering roll connector and junction box, to improve competitiveness.

Furukawa Electric also tries to expand the automotive parts business in BRICs. The firm increases the share in ChongQing Chang Hua Automotive Harness from current 50% in 2010 while Furukawa Electric launches design subsidiary in Tianjin. The firm also plans to establish harness making plant in southern India and harness making joint venture in Brazil.