September 15, 2011
Furukawa Electric Co., Ltd. (米兰ac体育;FEC米兰ac体育;) and Furukawa Automotive Systems Inc. (Head Office: Koura-cho, Inukami-gun, Shiga Prefecture; hereinafter referred to as the 米兰ac体育;Group米兰ac体育; collectively with FEC) have decided to merge American Furukawa, Inc. (hereinafter referred to as 米兰ac体育;AFI米兰ac体育;), which manufactures and sells automotive electric components in the United States, and Furukawa Wiring Systems America Inc. (hereinafter referred to as 米兰ac体育;FWSA米兰ac体育;), which manufactures and sells automotive wire harnesses.
Both companies are wholly owned subsidiaries of 米兰ac体育.
Purpose of Merger
Since 2009, 米兰ac体育 embarked on restructuring to expand its automotive parts business in North America. In April 2009, the Group took control of joint venture FWSA´s management and, in June 2010, converted FWSA into a wholly owned subsidiary. Since then, by strengthening collaboration with AFI, which manufactures and sells automotive electric components, including wire harness parts, 米兰ac体育 achieved further cost reduction and improvement of QCDDM(*1), etc., and sought to further expand wire harness business in North America. Through the proposed merger, 米兰ac体育 plans to further increase collaboration with AFI, with a view to consolidating its business base and improving business efficiency.
Summary of Merger
- Date of merger : September 30, 2011 (planned)
- Metho米兰ac体育 merger : AFI will be the surviving company and FWSA will be dissolved.
Profile of the Merging Companies
| Surviving Company | Dissolved Company | |
|---|---|---|
| Company Name | 米兰ac体育, Inc. | Furukawa Wiring Systems America Inc. |
| Description of Business | Manufacture and sales of automotive electric components Sales of Furukawa and other company products | Manufacture and sales of wire harnesses |
| Hea米兰ac体育fice | Plymouth, Michigan, 米兰ac体育 | El Paso, Texas, 米兰ac体育 |
| Controlling Share | 米兰ac体育 100% | 米兰ac体育 60%, Furukawa Automotive Systems 40% |
| Sales (FY2010) | 131 million USD | 70 million USD |
| Number of Employees (as of the en米兰ac体育 FY2010) (including Mexican subsidiary) |
747 | 911 |
Post-Merger Status (from October 1, 2011)
- Company Name : 米兰ac体育, Inc.
- Head Office : Plymouth, Michigan, 米兰ac体育
- Controlling Share : Group 100% (米兰ac体育 70%, Furukawa Automotive Systems 30%)
- Representative : Noboru Matsuki
Impact on Performance
The merger will have no significant impact on the consolidated earnings of 米兰ac体育 for the fiscal year ending March 31, 2012
