MFOPTEX Co., Ltd. to become our consolidated subsidiary

- Accelerating development of new businesses in the life science domain and for the use of industrial equipment -

April 26, 2024

Acquire an additional 40% of shares of MFOPTEX, and make it our consolidated subsidiary
Relocate MFOPTEX’s Head Office and Works to our Mie Works and other locations
Accelerate collaboration mainly in special fiber products for medical and industrial use

Furukawa Electric Co., Ltd. (Head Office: 2-6-4 Otemachi, Chiyoda-ku, Tokyo; President: Hideya Moridaira; hereinafter “the Company”) hereby announces that the Company concluded a share transfer agreement with Mitsubishi Cable Industries, Ltd. (Head Office: 3-4-1 Marunouchi, Chiyoda-ku, Tokyo; President: Hiroshi Tajima; hereinafter “MCI”) to acquire an additional 40% of shares of MFOPTEX Co., Ltd. (Head Office: 8 Nishino-cho, Higashimukojima, Amagasaki, Hyogo Prefecture; President: Hiroaki Kinoshita; hereinafter “MFO”), a joint venture between the Company and MCI. Consequently, MFO will become a consolidated subsidiary of the Company.

Background

MFO was established in December 2022 as MCI’s optical component business company, in which MCI has a 60% stake and the Company has a 40% stake. Taking advantage of the synergy effect of MCI’s technologies of manufacturing special fibers and processing components coupled with the Company’s photonics technologies, MFO has been manufacturing and developing optical fiber products for medical and industrial use. MFO’s business for medical and industrial equipment has maintained a high growth rate, and is very important for accelerating the Company’s new business development in the life science domain and for industrial equipment.

Overview

The Company concluded the share transfer agreement with MCI, and will acquire an additional 40% of shares of MFO as of October 1, 2024, thereby raising its stake in MFO to 80% and making MFO its consolidated subsidiary. It is also planned that MFO’s Head Office and Works will be relocated to the Company’s Mie Works and other locations.
By strengthening collaboration with MFO, the Company will accelerate the development of new businesses in the life science domain and for the use of industrial lasers, and pursue solutions of social issues and steady progress in commercialization towards realizing ‘safe, peaceful and rewarding life’ as specified in the Furukawa Electric Group Vision 2030.

Profile of MFOPTEX Co., Ltd.

(1) Date of Establishment	December 1, 2022
(2) Representative	Hiroaki Kinoshita, President & Director
(3) Head Office	8 Nishino-cho, Higashimukojima, Amagasaki, Hyogo Prefecture (c/o Amagasaki Works of Mitsubishi Cable Industries, Ltd.)
(4) Business Description	Manufacture and sale of fiber products for laser delivery Manufacture and sale of bundle fibers and lightguide fibers Manufacture and sale of image guides and fiber scopes for industrial and medical use Assembly, processing, and sale of optical fiber code cables Processing, inspection, and sale of optical applied products such as optical lasers and optical sensors Any matters incidental or relating to any of the preceding items
(5) Capital	310 million yen
(6) Scheduled date of share acquisition	October 1, 2024 * Subject to change depending on the date of clearance by the competition regulator
(7) Shareholders	Furukawa Electric 80％,Mitsubishi Cable Industries 20％

Furukawa Electric Group’s efforts towards the SDGs

Based on the “Sustainable Development Goals (SDGs)” adopted by the United Nations, Furukawa Electric Group has formulated the “Furukawa Electric Group Vision 2030” which sets the year 2030 as its target and is advancing efforts with the aim to “Build a sustainable world and make people’s life safe, peaceful and rewarding, Furukawa Electric Group will create solutions for the new generation of global infrastructure combining information, energy and mobility.” Toward the achievement of our Vision 2030, we will take open, agile, and innovative approaches to promote ESG management that aims to increase corporate value over the medium to long term and will contribute to the achievement of the SDGs.

Furukawa Electric Group’s efforts towards the SDGs

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