For the purpose of supplying automotive wiring harnesses to customers in Russia, Sumitomo Electric Industries and Sumitomo Wiring Systems have decided to jointly establish a holding company in the Netherlands with Zavod Radioapparatury, a manufacturer of communication devices and wires 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.
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More specifically, it is planned that Sumitomo Electric Wiring Systems (Europe) (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 utilising 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
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|
Joint venture holding company |
Operating company |
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Company name |
Ural Wiring Systems (tentative name) |
Ural Wiring Systems (tentative name) |
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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) |
