For the purpose of supplying automotive wiring harnesses to customers in Russia, Sumitomo Electric Industries, Ltd. (Head office: Chuo-ku, Osaka, President: Masayoshi Matsumoto, hereafter SEI) and Sumitomo Wiring Systems, Ltd. (Head office: Yokkaichi, Mie, President: Osamu Inoue, hereafter SWS) have decided to jointly establish a holding company in the Netherlands with OAO Zavod Radioapparatury, a manufacturer of communication devices and wires (Head office: Ekaterinburg, Sverdlovsk, Russia, Representative: S. Novoseltsev, hereafter ZRA), and to establish an operating company, as a wholly owned subsidiary of the holding company, that manufactures and sells wiring harnesses for automobiles in Russia. The joint venture agreement is scheduled to be concluded in the middle of July 2013.
As a global supplier of automotive wiring harnesses, the network of SEI and SWS includes 98 companies in 31 countries.
Recently in Russia, the production and sales volume of automobiles has steadily increased. As continuous growth is expected, many major automobile manufacturers and automobile parts manufacturers have established companies in Russia. In these circumstances, SEI and SWS have deliberated on developing operations in Russia, and decided to establish a manufacturing and sales base in Russia, through a joint venture with ZRA, which had been considering a tie-up with a global supplier.
More specifically, it is planned that Sumitomo Electric Wiring Systems (Europe) Limited (hereafter SEWS-E), a wiring harness business control subsidiary in the United Kingdom, will invest 51% and ZRA will invest 49% to establish a holding company, and then establish a manufacturing and sales company in Russia as a wholly owned subsidiary of the holding company. Fully utilizing the production and quality related expertise that has been accumulated globally, we will strive to meet the expanding demand in Russia.
Outline of new companies
|
Joint venture holding company
|
Operating company
|
|
| Company name | Ural Wiring Systems B.V. (tentative name) | OOO Ural Wiring Systems (tentative name) |
| Location | Amsterdam, Netherlands (planned) | Ekaterinburg, Sverdlovsk, Russia |
| Investment ratio | SEWS-E 51%, ZRA 49% | Joint venture holding company in the Netherlands 100% |
| Business | Ownership and management of operating company in Russia | Manufacture and sales of automotive wiring harnesses |
| Establishment | July 2013 (scheduled) | August 2013 (scheduled) |
About Sumitomo Electric Wiring Systems (Europe) Limited
| Head office | Newcastle-Under-Lyme, Staffordshire, United Kingdom |
|---|---|
| Capital | 84,000,000 Euro (Investment ratio: SEI 60%, SWS 40%) |
| President | M.J. Lawson |
| Business | Manufacture and sales of automotive wiring harnesses and related products |
