wiredInUSA November 2017

Preform expansion

Wire merger

Shin-Etsu Chemical Co Ltd is to expand its global production capacity of optical fiber ingot (preform) with a major investment. Shin-Etsu Chemical currently produces preform at three manufacturing bases, one in Japan and two in China. The company was established as a joint venture with China’s Jiangsu Fasten Hongsheng Group Co Ltd and the Netherlands’ TKH Group NV, and it began operations in 2012. YOFC Shin-Etsu Optical was established in a joint venture with China’s Yangtze Optical Fibre and Cable Joint Stock Ltd Co, and it began its operations in 2017. These three joint-venture partners are all optical fiber manufacturers, and the new facility investments will double the production capacity of each company, and enable all three to meet the growth in optical fiber demand. The expansion construction project for both companies is scheduled for completion in the first half of 2019. In addition, Shin-Etsu’s Kashima plant will be expanded by a new wing to its preform plant. This project is expected to be completed in the latter half of 2018.

The board of directors of Kobe Steel Ltd has passed a resolution to turn Shinko Wire Company Ltd into a subsidiary in association with Shinko Wire’s absorption-type merger of Tesac Wirerope Co Ltd. As a secondary processor of steel wire rods in the Kobe Steel Group, Shinko Wire is engaged in manufacturing and selling PC steel products, steel wires, stainless steel wires, wire ropes, and steel wire processed products. Shinko Wire plans to conduct an absorption-type merger of its consolidated subsidiary, Tesac Wirerope, on 1 st April 2018 to strengthen its rope business. The merger of Shinko Wire and Tesac Wirerope will consolidate product brands, manufacturing, processes, development, technology, quality assurance systems and other management resources. It will improve cost competitiveness at the global level, including the Kobe Steel Group’s rope business in Japan, and make possible the creation of high quality, value-added products. Kobe Steel feels that the merger will contribute to its competitiveness in the field of steel wire rods and bars.

wiredInUSA - November 2017

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