On September 27, 2019, Superior Essex Inc. ("Superior Essex", the parent company of Essex Magnet Wire), two leaders in the field of magnet wire product development and customized solutions, and Furukawa Electric Co. , Ltd., referred to as "Furukawa Electric") today announced that the boards of the two companies have approved the framework for the establishment of a new global joint venture.
This joint venture will further expand Superior Essex and Furukawa Electric's previous electromagnetic cord cooperation in Europe. Once the final agreement is signed and conventional regulatory and other approvals are obtained, Superior Essex and Furukawa Electric will merge their magnet wire business operations in the next few months in order to build a global market leader. The new company formed after the merger will operate as Essex Furukawa Magnet Wire, LLC and will use the "Essex Furukawa" brand.
Brian Kim, Chief Executive Officer of Superior Essex, said: "Today is an exciting day, not only because of the announcement of a joint venture between Essex and Furukawa Electric, but also because this cooperation marks the creation of a magnet wire industry. A powerful technology company, and this technology company can serve many leading companies. As a single entity, relying on the strong strength of Essex Magnet Wire and Furukawa Electric, we will be able to use a total of more than two centuries of experience and knowledge to continue to make breakthroughs and innovations While keeping the boundaries, we still focus on bringing excellent manufacturing, technological advancement and good customer service."
The new global joint venture will be able to lead technological progress, achieve market leadership in North America, Europe and Asia, provide support for strategic customer cooperation, and accelerate research and development progress. The new company is expected to benefit from huge synergies, including expanding customized product solutions, sharing best practices, being able to better serve customers with more shipping points, expanding global sales and technical teams, and increasing global copper rods and Foundry resources and a diversified global innovation team, especially for the development of electric vehicles/hybrid electric vehicles (EV/HEV).