Furukawa Electric Co., Ltd. is divesting its struggling Chinese subsidiary, Shenyang Furukawa Cable, to Anhui Weiguang Electric Cable Co., Ltd. for approximately 221 million JPY, as part of a strategic move to focus on core operations amid challenging market conditions.

Target Company Information

Furukawa Electric Co., Ltd. has decided to divest its subsidiary, Shenyang Furukawa Cable Co., Ltd., which specializes in the manufacturing and sale of ultra-high voltage power cables and their associated components. This decision comes after continuous poor performance attributed to a slowdown in the Chinese market and intensified price competition. The subsidiary reported a revenue of 15.4 billion JPY and a net asset value of 1.13 billion JPY for the fiscal year ending in December 2024.

The transfer will occur in February 2026 and involves the complete sale of Shenyang Furukawa Cable's operations to Anhui Weiguang Electric Cable Co., Ltd., a company based in Anhui Province that also operates in the cable manufacturing sector. The acquisition price is approximately 221 million JPY (10 million RMB).

Industry Overview in China

The electrical and cable manufacturing industry in China is undergoing significant changes, with a marked impact on operations due to fluctuating demand and market dynamics.