Essex Furukawa Global Joint Venture Delayed
Due to safety concerns and other complexities caused by the COVID-19 pandem...
Essex Magnet Wire (“Essex”), and Furukawa Electric Co., Ltd. (“Furukawa”), both leaders in magnet wire product development, and custom solutions, today announced that the two companies have approved the framework of a new global joint venture.
The joint venture will expand upon a previous magnet wire partnership between the two entities in Europe. Upon execution of the definitive agreements and customary regulatory and other approvals, the companies will combine their magnet wire business operations over the course of the next several months to create a global market leader.
The combined company will operate as Essex Furukawa Magnet Wire, LLC, using the “Essex Furukawa” brand.
All Essex global magnet wire locations, with the exception of Essex Italy, will be part of Essex Furukawa. Other business units that will remain under the Superior Essex umbrella and not be included in the joint venture are: Superior Essex International (Communications), Essex Brownell, Hi-Wire, and IVA Solutions (France and China). Furukawa’s magnet wire plants in Japan and Malaysia will also be part of the new company.
“Today is an exciting day, not only due to the announcement of the Essex Furukawa deal, but also as it marks the creation of a technological powerhouse in the magnet wire industry that can service many of the leading enterprises,” said Brian Kim, CEO of Superior Essex. “As a singular entity — and relying on the strengths of both Essex Magnet Wire and Furukawa Electric — we will be able to draw on more than two centuries of combined experience and knowledge to push the boundaries of innovation while remaining focused on delivering manufacturing excellence, technological advancement, and outstanding customer service.”
The new global joint venture will be able to lead in technological advancements; have market leadership positions in North America, Europe, and Asia; allow for strategic customer partnerships, and expedite research and development advancements. The new venture is expected to benefit from significant synergies, including expansion of custom product solutions, the sharing of best practices, and the ability to better service customers with additional points of shipping, expanded global sales and technical teams, increased global rod & foundry resources, and a diversified global innovation team, especially for EV/HEV developments.
Essex Furukawa will have nearly 2,100 employees working at 17 locations in eight countries.
About Essex Magnet Wire
Essex Magnet Wire is the leading, global provider of magnet wire that is used by most major original equipment manufacturers (OEMs) and industry leaders in the automotive, energy, and industrial sectors. Essex Magnet Wire has facilities in 11 countries, on three continents, and operates its business to act globally but serve locally. Having 90 years of experience allows Essex Magnet Wire to deliver innovation that customers demand while being vertically integrated in the manufacturing process to ensure quality and provide seamless delivery services from distribution centers around the world. The Essex MagForceX™ Innovation Center is furthering technological advancements in magnet wire through research and development that will provide custom solutions to customer challenges into the future. For more information, visit, http://essexwire.com
About Furukawa Electric Co., Ltd.
Furukawa Electric (TSE; 5801, ISIN; JP3827200001) Group started business in 1884, when its copper-smelting facility and wire manufacturing factory was established. Since then Furukawa Electric has become pioneers in the latest technologies by addressing diverse technological issues. Furukawa Electric has released products in a number of areas, including telecommunications, electronics,
automobiles, and construction, with the three types of materials it works with at their core, namely, optics, plastics, and metals. Many of these products have attained the top global market share, and all of its products have contributed to society in numerous business areas. To learn more about Furukawa Electric, please visit furukawaelectric.com