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Press Release 2006

Home > Press Release > 2006 > January 31

Establishing an Automobile Wire Manufacturing Company in Vietnam

January 31, 2006

Sumitomo Electric Industries, Ltd. (Head office: Osaka City, Osaka Prefecture, Japan; President: Masayoshi Matsumoto; hereinafter referred to as "SEI") and Sumitomo Wiring Systems, Ltd. (Head office: Yokkaichi City, Mie Prefecture, Japan; President: Tadashi Shimokawa; hereinafter referred to as "SWS") have established an automobile wire manufacturing company in Hai Duong Province, Vietnam, to strengthen the system for supplying automobile wires in Asia.

SEI and SWS have been promoting the establishment of a global production and sales system for the automobile wire harness business in order to provide better services for overseas users and to strengthen the business. Our worldwide affiliates now total 80, while we have been developing the Asian region in particular for our global production systems. We chose Vietnam early on, establishing a wire harness manufacturing company there in 1996, and so we already have 10 years of business experience in that country.

Local demand for automobile wires has continued to increase since we established Sumidenso Vietnam, Co., Ltd., a second wire harness manufacturing company in Vietnam in 2004, and our just-in-time (JIT) delivery of automobile wires is more important than ever as auto products have diversified and had more types.

Under these circumstances, we are establishing an automobile wire manufacturing company in Vietnam to improve productivity in the wire harness industry and ensure a stable product supply for customers.

We, SEI and SWS, have been devoting ourselves to strengthening the production base in China, where automobile production is increasing remarkably in size. However, we believe strengthening the production base in Vietnam will provide firm ground for the wire harness business in Asia; the Vietnamese economy continues to grow steadily and more companies of Japanese origin are expanding their businesses there.

Outline of the new company

(1)  Name of the company
Sumiden Vietnam Automotive Wire Co., Ltd.
(2)  Location
Dai An Industrial Zone, Hai Duong Province, Vietnam
(3)  Capital
US$7 million
(4)  Invested by
SEI 60%
SWS Group 40%
(5)  Number of employees
60 (including 2 Japanese representatives (planned))
(6)  Purpose of business
Manufacturing of automobile wires
(7)  Established
January 2006
(8)  Start of operation
May 2007 (planned)
(9)  Planned sales
1.3 billion yen/year (2007)
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