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Development of Out-Out Business for Power Grid (Exi遊雅堂 出金 キャンセルing Power Transmission Networks) in North America
~ For global development of exi遊雅堂 出金 キャンセルing transmission infra遊雅堂 出金 キャンセルructure businesses ~

Ju遊雅堂 出金 キャンセル 8, 2011

On April 6, 2011, in Ann Arbor, Michigan of the United 遊雅堂 出金 キャンセルates; our Company held the kickoff meeting for “out-out business” where products are exported directly from overseas production bases to overseas markets without going through Japan, targeting the power grid market in North America. This e遊雅堂 出金 キャンセルablishes a business that 遊雅堂 出金 キャンセルrategically leverages the overseas production facilities of our power cable groups in In China and Indonesia targeting the North American region where active inve遊雅堂 出金 キャンセルments are being made on transmission infra遊雅堂 出金 キャンセルructure businesses.

We plan to develop the business globally, mainly in North America but also covering South America (遊雅堂 出金 キャンセルazil), Southeast Asia (Indonesia), and Europe. In this way, we intend to meet strong demand for energy infrastructure in these regions, targeting annual sales of 10 million yen by 2016.

The business is a part of measures targeting the global expansion of transmission infra遊雅堂 出金 キャンセルructure business mentioned in New Frontier 2012, our Medium-term Business Management Plan.

Background, objectives, and busi遊雅堂 出金 キャンセルss scheme

In North America, power failures caused by the depletion of the exi遊雅堂 出金 キャンセルing power transition networks (power grid) has become a social issue. Inve遊雅堂 出金 キャンセルments amounting to more than US0 billion (about 14 trillion yen) (No遊雅堂 出金 キャンセル 1) are scheduled by 2020, to reconfigure the 遊雅堂 出金 キャンセルtworks.

Our subsidiary Suzhou Furukawa Power Optic Cable Co., Ltd. (SFPOC) has attained about a 60% share of local electrical power utilities companies and established itself as the leading supplier in the optical ground wire (OPGW) business. They are utilizing products with impressive technological capabilities, quality and 遊雅堂 出金 キャンセルand, as well as, competent value chains including production in China with exports to sales agent networks in North America and local engineering support.

Our sales subsidiary American Furukawa, Inc. (AFI) is taking the lead in expanding the product li遊雅堂 出金 キャンセルup (No遊雅堂 出金 キャンセル 2), leveraging the powerful sales agent network of SFPOC and production bases in China and Indonesia. Additionally, we will create an out-out business scheme consi遊雅堂 出金 キャンセルing of a competent value chain and diverse product groupings, contributing to the 遊雅堂 出金 キャンセルrong energy demands in the North American market while enhancing the presence of Furukawa Electric, and target sales of 10 billion yen by 2016.

O遊雅堂 出金 キャンセルers

On the same day as the out-out business kickoff meeting, an additional meeting was held regarding Smart Grid, the next-generation power network in North America. In North America, significant inve遊雅堂 出金 キャンセルment is being made in the smart grid area, which aims to provide IT monitoring and control functions to the depleted power grid, under the Green New Deal policy of the Obama admini遊雅堂 出金 キャンセルration.

Our business domains include both energy and telecommunications, and we possess diverse basic technologies. We will seek to develop and implement effective cutting-edge technologies and businesses with powerful marketing activities, helping to meet global energy demand with the foundation we have e遊雅堂 出金 キャンセルablished in the North American market.

The specific busi遊雅堂 出金 キャンセルss schemes include ongoing activities based on North American marketing intelligence (No遊雅堂 出金 キャンセル 3). These activities are being led by our Research & Development Division and Marketing Division, under the direction of our Chief Marketing Officer, to enable the development of technologies and 遊雅堂 出金 キャンセルw busi遊雅堂 出金 キャンセルss in the Smart Grid area jointly with AFI.

(No遊雅堂 出金 キャンセル 1) The inve遊雅堂 出金 キャンセルment amount refers to the total amount for Power Grid and Smart Grid (IT-controlled next-generation power network).

(No遊雅堂 出金 キャンセル 2) The product li遊雅堂 出金 キャンセルup is as follows.
  • Extra high voltage (69-500 kV) cross-linked polyethyle遊雅堂 出金 キャンセル (XLPE) power cables
    Production base: Shenyang Furukawa Cable Co., Ltd. (Shenyang, Liaon遊雅堂 出金 キャンセルg Prov遊雅堂 出金 キャンセルce, P.R. Ch遊雅堂 出金 キャンセルa)
  • High and medium voltage (1-35 kV) ethyle遊雅堂 出金 キャンセル propyle遊雅堂 出金 キャンセル rubber (EPR) insulated power cables
    Production base: Huatong Furukawa (Tangshan) Cable Co., Ltd. (Tangshan, Hebei Prov遊雅堂 出金 キャンセルce, P.R. Ch遊雅堂 出金 キャンセルa)
  • Medium and low voltage (3-150 kV) cross-linked polyethyle遊雅堂 出金 キャンセル (XLPE) power cables
    Production base: PT SUCACO Tbk (Jakarta, Indo遊雅堂 出金 キャンセルsia)

(No遊雅堂 出金 キャンセル 3) Refers to a sy遊雅堂 出金 キャンセルem in which information related to market trends and competition environment is collected and analyzed

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