Sumitomo Electric To Buy Calsonic’ Wiring Harness Operations – Sumitomo Electric Industries Ltd., Calsonic Kansei Corp – Brief Article
Calsonic Kansei Corp. said it will sell its automobile wiring harness operations to Sumitomo Electric Industries Ltd. and its subsidiary Sumitomo Wiring Systems Ltd., the three companies said.
Calsonic, an affiliate of Nissan Motor Co., said it plans to concentrate its resources on modules, while the Sumitomo Electric group strengthens their position largest as the third largest wiring harness supplier in the global market, the companies said.
Under their agreement, Calsonic said it will sell its operations for wiring harnesses, except those integrated into modules, to Sumitomo Electric. Its wiring harness development and designing operation will be sold to Sumitomo Wiring Systems. Calsonic said it will also sell its wiring harness production joint venture with Hitachi Cable Ltd. to Sumitomo Wiring Systems. Its 46 percent stake in a U.S. joint venture with a group of companies including Sumitomo Electric and Sumitomo Wiring Systems will be sold to the two Sumitomo Electric group companies, according to Calsonic.
Calsonic said its wiring harness operations to be sold off are expected to generate $175 million in sales in the fiscal year to March 2003 , accounting for some 9 percent of the company’s parent sales.
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