WiredInUSA March 2016

INDEX

Fiber’s profit boost

Nippon Steel and Sumitomo Metal Corporation (NSSMC) is to establish a new company called Nippon Steel and Sumikin Cold Heading Wire Indiana Inc (NSCI), to manufacture and sell steel wires for cold heading and forging for the automobile industry in Indiana. NSCI will be established through joint investment from Matsubishi Metal Industry Co Ltd, Nippon Steel and Sumikin Steel Processing Co Ltd, Miyazaki Seiko Co Ltd, Sanyu Co Ltd, Toyota Tsusho Corporation, Nippon Steel and Sumikin Bussan Corporation, Metal One Corporation, and Sumitomo Corporation. Steel wires for cold heading and forging are mainly used for automobile fasteners and parts, and are produced by adding a secondary process (such as pickling, coating, wire drawing or heat treatment) to steel wires. Most uses are for important safety-related parts and the quality requirements, such as materials and dimension accuracy, are extremely high. In order to satisfy these requirements strict quality management is necessary for wire rods and secondary processes. NSCI will be the twelfth member company of NSSMC’s SteeLinC ® bar and wire rods business brand. Cold heading venture

Japan-based fiber optic products manufacturer Furukawa has reported a sharp increase in its annual operating profit. The cable and wire manufacturer has seen a surge of 40 percent in its operating profit, mainly due to the growing demand for fiber optic products in the North American and Chinese markets. Furukawa’s consolidated profit for the last financial year is expected to reach around $208 million. Increased data usage by smartphones is boosting efforts to improve transmission speeds, increasing demand for fiber optic cable. The company’s North American subsidiary, OFS Fitel, a fiber optic manufacturer, is among the group’s best performers, with operating profit more than doubling. More efficient production has helped raise the unit’s profitability. Operating profit in the overall fiber optic cable operations is widely expected to surpass 56 percent. Conversely, operating profit in the electronics and automotive systems segment is expected to drop. In North America production costs have risen for parts aimed at new model cars, while demand is slumping for wire harnesses for cars made in Japan.

ASIA / AFRICA NEWS

wiredInUSA - March 2016

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