Superior Essex Inc., the parent company of Essex Magnet Wire, and Furukawa Electric Co., Ltd., both specialists in magnet wire product development and custom products, today announced the finalization of a global joint venture. The companies say joint venture will expand upon a previous magnet wire partnership to create a global market leader; the combined company will operate as Essex Furukawa Magnet Wire LLC, using the "Essex Furukawa" brand.
Per a company statement:
"Customers of Essex Furukawa should 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.
The new global joint venture will allow Essex Furukawa to lead the industry in technological advancements; have market command positions in North America, Europe, Asia, and Japan; allow for strategic customer partnerships, and expedite research and development advancements. Essex Furukawa will offer the same consistent, quality products with advanced technology—especially for electric vehicles—while offering all of our customers a more robust global network on three continents."
"This is an exciting day, not only due to the finalization 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," commented Brian Kim, CEO of the newly formed Essex Furukawa. "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 forward innovation while also remaining focused on delivering manufacturing excellence and outstanding customer service."
The companies say there will be no immediate or material change to the organization related to the customer, though Essex Furukawa may pursue optimal restructuring to provide a higher value to customers. There will also be no change to the current contracts being honored by either company due to the creation of Essex Furukawa.
"I believe that combining the global production and distribution capabilities of Essex with the technology and innovation of Furukawa Electric will ensure that Essex Furukawa is one of the most exciting things to happen to the industry in some time," Kim said. "The synergy being created by global joint venture will only create more opportunities for growth to our customers as we will shape the future of electrification."