Furukawa strengthens SUCACO

Furukawa strengthens SUCACO

TOKYO (Reuter): Furukawa Electric Co Ltd said yesterday that it would increase its stake in Indonesia's Supreme Cable Manufacturing Corp (SUCACO) and that two of its executives would join the company's board.

Furukawa said in a statement that it would boost its stake in Indonesia's largest cable maker to 11.5 percent from 5.2 percent at present.

"We have decided to join SUCACO's management by buying additional shares in the company through our wholly owned Singapore unit and by sending two of our officials to become SUCACO board members, including its first vice president," Furukawa said.

Furukawa officials were not immediately available for comment on the value of the share purchase.

Furukawa said it wanted to strengthen SUCACO's operations to make it Furukawa's second wire and cable manufacturing base in Southeast Asia, following Furukawa Electric Cables (Malaysia) Sdn Bhd.

Furukawa wants to boost its wire and cable business in Indonesia by linking SUCACO's operations with Furukawa's copper wire unit PT Tembaga Mulia Semanan in Jakarta and aluminum wire maker PT Supreme Alurodin, also in Jakarta, whose board includes an official from Furukawa.

Furukawa also owns PT Asiabumi Furukawa in Jakarta, which lays telecommunications cables.