LS Group's US Wire Manufacturer Strengthens Wire Business by Acquiring Stake in Japanese Joint Venture

Agreement to Acquire Entire Stake in Joint Venture

Superior Essex (SPSX), an American wire company under LS Group, has agreed to acquire the entire stake of Furukawa Electric in the joint venture 'Essex Furukawa Magnet Wire (LCC)' established with Japan's Furukawa Electric to target the global magnet wire market.

On the 26th, SPSX announced this news and stated that the acquisition of Furukawa Electric's stake and the termination of the joint venture will be completed by the end of next month.

The headquarters of Superior Essex (SPSX), an LS Group American wire company located in Atlanta, Georgia, USA /

Magnet wire is insulated copper wire wound around electronic devices such as transformers and motors. The market for magnet wire used in electric vehicles (EVs), which is wound in coil form around electric vehicle drive motors to convert electrical energy into kinetic energy, is expected to grow rapidly in the future.

SPSX will solely own the assets, facilities, and brands of the North American, European, Chinese, and Malaysian magnet wire production subsidiaries previously included in the joint venture, as well as Furukawa Electric's magnet wire business units in Japan and Malaysia (Kuala Lumpur). The company explained that this move provides an opportunity to strengthen future business capabilities and focus on core businesses.

Previously, SPSX and Furukawa Electric established the joint venture in 2020 with SPSX holding 61% and Furukawa Electric 39% of the shares to target the global magnet wire market. Through this cooperation, they built customer partnerships and promoted achievements in research and development (R&D), establishing a presence in the magnet wire market across North America, Europe, and Asia.

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