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October 28th, 2006
- General
Detroit Michigan - Investments fuel Alcoa Fujikura's growth
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Alcoa Fujikura SRL, a producer of electrical cables for the automotive industry, in the first six months of this year posted turnover worth 9.2 million euros (32.3 million RON), up 18% compared with the similar period of last year. "The investments we've made in recent years in order to boost production capacity are the main factor that generated the positive trend of financial indicators. The opening of the centre of Beius, Bihor county, also influenced the turnover trend," Adriana Lenardt, communications and human resources manager with Alcoa Fujikura, told ZF Transilvania. Alcoa Fujikura representatives expect this year's turnover to reach 19.9 million euros, if the trend in the first half of the year maintains.
Alcoa Fujikura in early May opened its third production centre in Romania, in Beius, Bihor county. According to the company's representatives, initial investments in the new plant amounted to some 300,000 euros, but the plant is going to be developed during the entire 2006, with the company's officials putting total investments at as much as 800,000 euros.
Alcoa Fujikura did not make a greenfield investment in Bihor county, choosing to rent an already existing facility instead.
"The new plant has a total area of 3,600 square metres, and production started in May 2006. We started operating with 76 workers, but the number of workers will get to around 400 by yearend," Lenardt also stated.
The products to be manufactured in the new plant will be transferred both to the company's other Romanian plants and to plants of the group, located in the Czech Republic, Portugal or Hungary.
The company owns two facilities in Romania, in Nadab (Arad county) and Caransebes (Caras-Severin county) and last year invested around 1.4 million euros to increase the production capacity of the two facilities.
The entire production of the two plants of the group is shipped to foreign markets. Beside electrical cable production, the Alcoa group also brought to Romania the aluminium profile unit. The new plant is located in Chisineu-Cris and took total investments worth over 17 million euros, finalised this May.
In Europe, the group has over 20,000 employees in 100 production facilities in 16 countries
Editors Note: Alcoa Fujikura Ltd.
The former joint venture between Alcoa and Fujikura Ltd. has been divested into two separate businesses: AFL Automotive, an Alcoa business; and AFL Telecom, a Fujikura business.
Pittsburgh January. 5, 2005 Alcoa, Fujikura Sign Letter of Intent: Alcoa to Own AFL Auto; Fujikura to Own AFL Telecommunications
Alcoa today announced that it has signed a Letter of Intent with Fujikura, Ltd. of Japan in which Alcoa will obtain complete ownership of the AFL automotive business based in Detroit, and Fujikura will obtain complete ownership of the AFL telecommunications business, based in Nashville, TN. Alcoa and Fujikura currently hold a 51-49 percent, respective ownership of both through the Alcoa Fujikura Limited joint venture. The transaction moving Alcoa to complete ownership of AFL Automotive, which is expected to be implemented through a share exchange by Fujikura of all of its AFL shares for all shares in a new telecommunications subsidiary, including cash, should be completed by the Spring of 2005.
"This transaction will enable both Alcoa and Fujikura to focus on their core capabilities," said Robert T. Alexander, Alcoa Vice President and Chairman of Alcoa Fujikura Ltd. "AFL Automotive is a large part of Alcoa's approximately $3 billion automotive franchise, and this transaction increases our position in this strategic market, helping us serve our automotive customers globally. Telecommunications is much more core to Fujikura and strengthens their presence in the United States," said Alexander.
AFL Automotive is a world leader in the design, development and production of high quality electrical and electronic distribution systems for personal and commercial vehicles. AFL connects with vehicle manufacturers and their sub-suppliers in the major automotive centers of the world, including China, Japan, Asia, Europe and the USA. AFL Automotive has approximately 34 locations in 15 countries and 33,500 associates around the world.
AFL Telecommunications is an industry leader in providing fiber optic products, engineering expertise and integrated services to the telecommunications industry. It produces and installs fiber optic products and equipment that communications providers need to provide high-speed voice, video and data services to their customers. Its capabilities cross many telecommunications markets, from Telco and Broadband, to Electric Utility, OEM, Enterprise and Private Networks. The company has approximately 2,000 employees at 19 locations in three countries. Headquartered in Nashville, additional facilities are located throughout the United States, in Monterrey, Mexico and the United Kingdom.
For financial reporting purposes, Alcoa will include AFL Telecommunications in discontinued operations until the transaction is completed.
Alcoa is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, and is active in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses to customers. In addition to aluminum products and components, Alcoa also markets consumer brands including Reynolds Wrap(R) foils and plastic wraps, Alcoa(R) wheels, and Baco(R) household wraps. Among its other businesses are vinyl siding, closures, fastening systems, precision castings, and electrical distribution systems for cars and trucks. The company has 120,000 employees in 43 countries
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