LS partners with Japanese company to set up magnet wire joint venture
SEOUL, AJU - The American subsidiary of South Korea's LS Group agreed with Furukawa Electric, a Japanese electric and electronics equipment company, to set up a joint venture that would produce magnet wires for electric vehicles.
Magnet wire or enameled wire is a copper or aluminum wire coated with a very thin layer of insulation. It is used in the construction of transformers, inductors, motors, generators, speakers, hard disk head actuators, electromagnets, and other applications that require tight coils of insulated wire.
Superior Essex Inc. (SPSX), acquired by LS Group in 2008, and Furukawa Electric will set up the joint venture named “Essex Furukawa Magnet Wire” next year, the group said in a statement on Friday. SPSX would control 61 percent of the joint venture with Furukawa Electric owning the remainder. Financial terms were not given.
The joint venture will be headquartered in Atlanta. The LS Group, which has LS Cable & Systems, a major cable maker, under its wing, said that the joint venture would help SPSX to secure a competitive edge in the electric vehicle field, while Furukawa would secure a production base and a sales network. Financial terms were not given.
“The joint venture company will be reborn as a global leading brand that provides excellent technology and services in each business sector such as electric power, electronics and automobiles,” said LS Group Chairman Koo Ja-yeol.