Hitachi Cable Eyes Capex for Magnet Wire Operation

Hitachi Cable examines capital expenditure for magnet wire operation. In Japan, the firm eyes capacity expansion by 20-30% within next 1-2 years to follow growing demand for enamel wire from automobile and wide power generation related applications. At offshore sites, the firm plans facilities replacement to improve quality, productivity and competitiveness.

Magnet wire is a coil material for motors and transformers inside electric applications including cars and home appliances. Hitachi Cable produces magnet wire at a domestic subsidiary, Hitachi Magnet Wire Corp. in Ibaraki, and 3 offshore plants in China, Thailand and Malaysia. Global capacity is 8,000 tonnes per month. Recent output volume is 80-85% level compared with April-September 2008.

Magnet wire market is shrinking to around 60% level in weight compared with April-September 2008. Hitachi Cable has downsized the employee number in response to low demand. At present, Hitachi Cable’s operation is almost full with the current staff number.

In domestic market, mid-term demand growth is expected from wind power industry and automobiles, mainly hybrid cars. Hitachi Cable eyes capacity enhancement for thick-size enamel wire applied to related parts such as motors.

At overseas, price competition is severe with local magnet wire suppliers mainly for common grade products. Hitachi Cable aims higher cost competitiveness and quality differentiation by facility replacement.