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Japan's Furukawa Electric has announced plans to build new wire-harness plants in Brazil, India and China over the next 3 years. The firm is also following a strategy to acquire majority stakes in its joint venture production sites around the world. In China, where a new harness plant is planned for Wuhan - to add to the 5 existing Chinese auto-parts plants - sales are expected to reach ¥32-35bn in 2013.

Sumitomo Electric Industries' on 30 October reported sales in H1 (ended Sep) of fiscal 2009 were down 35% y/y at ¥812.3bn, and posted ¥9.7bn net loss (against ¥39.7bn profit a year ago) and ¥7.0bn operating loss (against ¥49.2bn profit). However the automobile business unit - main output automotive wiring harness - in Q2 posted ¥5.5bn operating profit against Q1's ¥8.6bn loss and forecasts ¥20.1bn operating profit in H2 (ended Mar'10). President Masayoshi Matsumoto said the firm expects improved profitability in fiscal 2010 though automobile demand could slow in April-June when automakers plan to reduce output by 20-30% from Jan-March.

Furukawa Electric has reported a recent improvement in its magnet wire production, and plans a monthly production in fiscal 2009 (ending March 2010) of 1,500 tonnes of enamelled wire and 85,000 km of triple insulated magnet wire; this is 70-75% (for enamelled wire) and 80-85% (for triple insulated magnet wire) of the peak levels produced in April-September 2008. Enamelled wire production could reach 1,700-1,800 tonnes per month in October 2009-March 2010. Furukawa Electric's domestic magnet wire production is being consolidated into its Mie Works in order to cut costs; production at its Hiratsuka Works will transfer to Mie within 2009.

Furukawa Electric has reported a recent improvement in its magnet wire production, and plans a monthly production in fiscal 2009 (ending March 2010) of 1,500 tonnes of enamelled wire and 85,000 km of triple insulated magnet wire; this is 70-75% (for enamelled wire) and 80-85% (for triple insulated magnet wire) of the peak levels produced in April-September 2008. Enamelled wire production could reach 1,700-1,800 tonnes per month in October 2009-March 2010. Furukawa Electric's domestic magnet wire production is being consolidated into its Mie Works in order to cut costs; production at its Hiratsuka Works will transfer to Mie within 2009.

Furukawa Electric announced on 19 August it has concluded a technical assistance agreement (TAA) for the production of 110kV power cables with Russia's largest electric cable group Uncomtech and its production subsidiary Kirskabel. Kirskabel will get cable parts and support from Viscas (Furukawa's jv with Fujikura) and has already started test production of 110kV power cable production (in July); it aims to get power companies' approvals within 2009 and start commercial supply in early 2010.

Furukawa Electric announced it plans domestic monthly output of 7 million sq.m. of electrolytic copper foil in the first half of fiscal 2009 started April, which is 15% lower than the same period of fiscal 2008. Demand is recovering from the low in February though, especially for products for flexible printed circuit. Their production has increased 20% y-o-y in June, although Furukawa expects demand could fall again in and after August.

Five of the major Japanese electric wire makers, (Furukawa Electric, Hitachi Cable, Fujikura, SWCC Showa Holdings, Mitsubishi Cable Industries Ltd.) have all posted consolidated recurring losses in their business results for FY2008 ended March 2009. All except Sumitomo Electric Industries, which reported lower sales, posted losses due to the dramatic fall in copper price during H2 2008 as well as the downturn in the automotive industry. Their copper inventory valuation losses have reduced their profits significantly. Sluggish demand is reported across a range of automobile related products including copper strip for connectors, winding wire and wiring harness.

Onamba Co., Ltd. has announced that it will shut down and absorb two domestic plants that produce electric wire and wire harnesses. The decision will be implemented in H1 of FY2009 and is attributed to the weakening economic environment, the appreciation of the yen and the increased market competition. The company employs 130 staff.