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Press Release 2012

Home > Press Release > 2012 > January 30

Sumitomo Electric Establishes Manufacturing Base for Copper Wire Rods, Drawn Wires and Aluminum Bars in Rayong, Thailand

January 30, 2012

Sumitomo Electric Industries, Ltd.

Sumitomo Electric Industries, Ltd. announces today that it will open a new subsidiary in Rayong Province, Thailand. The new subsidiary, provisionally named SEI Thai Electric Conductor Co., Ltd. (hereinafter STEC), will engage in the manufacturing and sales of copper wire rods, drawn wires and aluminum bars.

Copper wire rods and drawn wires are the materials of conductors from which various electric wire and cable products, including automotive wiring harnesses, magnet wires, power cables and electronic wires, are produced. Currently, the Sumitomo Electric Group manufactures these materials in its Osaka Works in Japan and P. T. Karya Sumiden Indonesia, to supply customers in Japan, China and South East Asian countries.

 

In the face of the recent increase in demand mainly from its group companies in China and South East Asian countries, as well as the necessity of diversifying supply sources, the Sumitomo Electric Group has decided to establish a new manufacturing base of these products in Rayong Province, Thailand. STEC will become the largest manufacturing plant for copper wire rods and drawn wires in the South East Asian region. With the enhanced manufacturing capability, the Sumitomo Electric Group will continue to respond to increasing demand from the group companies around the world, and also aggressively market these products to the customers outside of the Group.

 

The new subsidiary will also take part in aluminum bar production that is currently being conducted exclusively by Sumitomo Electric Toyama Co., Ltd. in Japan. Aluminum bars, base material to be cut into valve parts of automatic transmissions, have seen a rapid increase in demand mainly from South East Asian countries. According to the new production plan for aluminum bars, Sumitomo Electric Toyama will provide aluminum materials to STEC after casting, rolling and drawing processes, while also continuing to conduct the entire production itself. In STEC, the aluminum material will be finalized through straightening process and heat treatment.

 

Profile of STEC

Company name SEI Thai Electric Conductor Co., Ltd. (STEC) (provisional name)
Location Amata City Industrial Estate, Rayong Province, Thailand
President Undecided
Businesses Manufacture and sales of copper wire rods, drawn wires and aluminum bars
Capital 1.11 billion baht (approx. 2.7 billion yen, 1 baht = approx. 2.44 yen)
Investment ratio The Sumitomo Electric Group 100%
Establishment February 2012 (scheduled)
Start of operation April 2014 (scheduled)
Employees About 150 (in 2015)
Prospective sales volume Copper: approx. 10,000 t/m;
Aluminum: approx. 110 t/m (in FY 2015)
Prospective sales Approx. 47 billion yen (in FY 2015)
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