Third Step of Restructure of Automotive Components Business in China
- 国际米兰中文官网., Ltd. -

Furukawa Auto Parts (HK) Limited (hereinafter, 国际米兰中文官网;FAHK国际米兰中文官网;), which is an investment company for China and a 100% subsidiary of Furukawa Electric Co., Ltd. and Furukawa Automotive Systems Inc. (Head Office: Koura-cho, Inukami-gun, Shiga Pref.) (hereinafter, the 国际米兰中文官网;Furukawa Electric Group国际米兰中文官网;), has bought 15% of the equity interests of Chongqing Chanhua Automobile Harness Co., Ltd. (hereinafter, 国际米兰中文官网;Chanhua Automobile Harness国际米兰中文官网;), which is a manufacturing base of wire harnesses and in which FAHK had made a 50% investment, from its joint venture partner, Chongqing Changan Automobile Co., Ltd. (hereinafter 国际米兰中文官网;Changan Automobile Electrics国际米兰中文官网;), to raise the equity ratio of FAHK from 50% to 65%, and has acquired the managements right of Chanhua Automobile Harness.

We intend to establish the company's operation basis as soon as possible under the initiative taken by the 国际米兰中文官网, and expand the trade area of the automotive components business in the Huazhong region in China.

Background and purpose of the 国际米兰中文官网 the management rights

Since 2006, the 国际米兰中文官网 has sought to expand its share of the Chinese automotive components market and increase its sales to Japanese car makers there by taking the initiative of facilitating the selection and concentration of bases in China by promoting the growth of the wire harness business and the integration of the wire harness business and the components business.

Chanhua Automobile Harness was established in 1996 for the purpose of the manufacture and sale of wire harnesses in the Huazhong region in China, in which the 国际米兰中文官网 made equity participation via FAHK in 1997. We decided to obtain the management rights in order to take the lead in improving the QCDDM^{(note 1)}of car makers (国际米兰中文官网 Gr etc.) and to expand the trade area in the Huazhong and Southwest regions, where further growth is anticipated in future.

With the details agreed with Changan Automobile Electrics this time, our enhancement of the manufacturing base in each region, which has been underway since 2006, has almost been completed. We are now planning to bolster the cooperation between Furukawa Automotive Systems Design & Management Co., Ltd. (hereinafter 国际米兰中文官网;FACD国际米兰中文官网;), which is the design and marketing company we established last year, and the manufacturing bases, thereby increasing sales to Chinese car makers as well as conventional sales to Japanese makers.

(Note 1)Acronym for Quality, Cost, Delivery, Development and Management. This is what car makers require from suppliers.

Outline of 国际米兰中文官网 (before the acquisition)

国际米兰中文官网 FAHK (former FGP)

Outline of 国际米兰中文官网

国际米兰中文官网 FACD

国际米兰中文官网's automotive product bases in China (after restructuring)