Sumitomo Electric Industries
|Traded as||TYO: 5802
|Key people||Masayoshi Matsumoto (CEO)|
|Products||Automotive, Infocommunications, Electronics, Environment and Energy, Industrial Materials & Others|
|Revenue||￥2,159,942 million (2013, consolidated)|
Sumitomo Electric Industries (SEI) (住友電気工業 Sumitomo Denki Kōgyō?) is a manufacturer of electric wire and optical fiber cables. Its headquarters are in Chūō-ku, Osaka, Japan. The company's shares are listed in the first section of the Tokyo, Nagoya Stock Exchanges, and the Fukuoka Stock Exchange. In the period ending March 2013, the company reported consolidated sales of $23 billion (2,159,942 million Japanese yen).
Since the inception of Sumitomo Electric Industries, Ltd. in 1897 with copper wire production, Sumitomo Electric has developed many new technologies and products through innovative R&D activities based on Sumitomo Electric manufacturing technologies for electric wires and power cables. Sumitomo Electric continues to introduce a wide variety of products that fulfill the expectations of society, in five business fields: Automotive, Information & Communications, Electronics, Environment & Energy, and Industrial materials while challenging new business fields in Life Sciences and Materials & Resources.
Sumitomo Electric unprecedentedly grown and developed through intensive R&D, capturing future markets and improving technological capabilities in order to create solutions to present and future problems. With more than 350 subsidiaries and over 200,000 employees in more than 30 countries, its global infrastructure supports and strengthens the platform needed to competitively manufacture goods through the optimization and regionalization of the development and marketing of new technologies and products. Sumitomo Electric's technologies have been used in major projects which includes, but is not limited to: mitigation of traffic jams in Thailand, improvement of telecom networks in Nigeria, membrane technology for waste water treatment in Korea, and an innovative method of building bridges in Germany.
Presently, Sumitomo Electric's electrical wiring harness systems, which are used to send information and energy to automobiles, have garnered the second largest market share in the world. Sumitomo Electric also continues to be the leading manufacturer of composite semiconductors (GaAs, GaN, InP), which are widely used in semiconductor lasers, LEDs, and mobile telecommunications devices. Further, Sumitomo Electric is one of the Top 3 in the world for optical fiber used in optical transmission networks and optical communication devices. Finishing off its FY2012 with consolidated net sales of $23 billion and still ranking among the global Fortune 500, Sumitomo Electric foresees continued growth and further development of cutting-edge technologies for its mid-term management plan, VISION 2017.
- 1 History
- 2 Business Units
- 3 Global Projects
- 4 Mid-term Management Plans
- 5 External links
- 6 References
- 1897 - Sumitomo Copper Rolling Works was founded
- 1900 - Started production of coated wires
- 1908 - Started production of power cables
- 1909 - Started trial production of telecommunication cables
- 1911 - Established Sumitomo Electric Wire & Cable Works; Laid first Japan-made high-voltage underground cables
- 1916 - Opened a new factory (now the Osaka Works); Started production of enamel wires
- 1920 - Sumitomo Electric Wire & Cable Works incorporated as a limited company
- 1931 - Started production of cemented carbide tools
- 1932 - Started production of special steel wires
- 1939 - Company name changed to the current name, Sumitomo Electric Industries, Ltd.
- 1941 - Opened the Itami Works
- 1943 - Started production of vibration-proof rubber products and fuel tanks
- 1946 - Opened a brand office in Tokyo (now the Tokyo Head Office)
- 1948 - Started marketing sintered powder metal products
- 1949 - Entered into the construction business of overhead transmission lines
- 1957 - Delivered the first Japan-made television broadcasting antennas
- 1961 - Opened the Yokohama Works; Delivered the wiring harnesses for four-wheel vehicles for the first time in its history
- 1962 - Started production of the Irrax Tube electron beam irradiation tubes; The head office was moved from Osaka's Konohana Ward to its present location in Chuo Ward
- 1963 - Started production of disc brakes1964-Started production of electron beam irradiation wires
- 1968 - Entered into the traffic control systems business
- 1969 - Established the first overseas production subsidiary in Thailand (SIAM Electric Industries Co., Ltd.); Started development of flexible printed circuits (FPCs)
- 1970 - Started production of compound semiconductors
- 1971 - Opened the Kanto Works1974-Started production of optical fiber cables
- 1975 - Contracted to construct a power transmission line in Iran
- 1976 - Received an order for a large telecommunications network construction project in Nigeria
- 1978 - Delivered and put into operation the world's first bidirectional fiber optics CATV system called “Hi-OVIS”
- 1981 - Delivered and installed fiber optic LAN systems for the first time in its history
- 1982 - Succeeded in producing the world's-largest-class (1.2 carats) synthetic diamonds
- 1996 - Developed a technology for producing long-length oxide high voltage superconducting wires
- 1998 - Developed and started marketing ecology wires and cables
- 1999 - Sumitomo Electric Fine Polymer, Inc. (fine polymer products) started operation
- 2001 - J-Power Systems Corporation (high-voltage power cables) started operational
- 2002 - Sumitomo Electric Networks, Inc. (network equipment), Sumitomo (SEI) Steel Wire Corp. (special steel wires) and Sumitomo Electric Wintec,Inc. (magnet wires) started operation
- 2003 - Sumiden Hitachi Cable Ltd. (wires and cables for buildings and industrial equipment) and Sumitomo Electric Hardmetal Corp. (powder metal and diamond products) started operation
- 2004 - A.L.M.T. Corp. was made a wholly owned subsidiary
- 2006 - The HTS cable used in a power transmission grid in the U.S. started supplying electricity
- 2007 - Sumitomo Wiring Systems, Ltd. was made a wholly owned subsidiary; Nissin Electric Co., Ltd. was made a consolidated subsidiary
- 2008 - Opened Technical Training Center
- 2009 - Eudyna Devices Inc. was made a wholly owned subsidiary and changed its trade name to Sumitomo Electric Device Innovations, Inc.
- 2010 - Opened WinD Lab, a new laboratory building; SEI Optifrontier Co., Ltd. Started lightwave network product business
- 2011 - Commenced “Demonstration of Megawatt-Class Power Generation/Storage System” at Osaka Works, and at Yokohama Works in 2012
- 2012 - Obtained the world's first certification of Thunderbolt, an optical cable which began commercial production; Established joint research on “Commercialization and Construction Technology for Offshore Wind Power Generation Plants Regional Promotion Aqua-Wind Commercialization Study Group.”
- 2013 - Constructed manufacturing base for automotive aluminum electric wire in Thailand.
Sumitomo Electric and its global subsidiaries and affiliates undertake product development, manufacturing and marketing, as well as service provision in the five business divisions: “Automotive,” “Infocommunications,” “Electronics,” “Environment and Energy,” and “Industrial Materials & Others.”
The automotive segment accounts for 50% of Sumitomo Electric's annual sales. With the aim of realizing an automotive society characterized by safety, comfort, and environmental responsibility, Sumitomo Electric supplies the global market with a broad range of products, including wiring harnesses for in-vehicle data and energy transmission, and anti-vibration rubber.
The automotive wiring harness business commenced in 1949 with supplies to the Occupation Forces for their jeeps. In 1961, for the first time, the company supplied wiring harnesses for four-wheel-drive vehicles. At present, Sumitomo Electric promotes the automotive wiring harness business in a tripartite system, in which Sumitomo Electric takes charge of sales and business planning, Sumitomo Wiring Systems handles design and manufacturing, and AutoNetworks Technologies conduct research and development. As a result, Sumitomo Electric's electrical wiring harness systems, which are used to send information and energy to automobiles, have garnered the second largest market share in the world.
This segment provides key products and devices that support optical communications, such as optical fibers, cables, connectors, fusion splicers, GE-PON (Gigabit Ethernet Passive Optical Network) devices, various network access equipment, as well as electronic devices and antenna products for wireless communications. The division also provides various products for supporting the Information and Communication Technology (ICT) society such as traffic control systems and other Intelligent Transportation System (ITS) devices.
Sumitomo Electric produced optical fiber well ahead of other manufacturers, taking note of the product's great capacity for voluminous, speedy, and assured data transmission, ideal for the advanced information age that was to come. In 1986, Sumitomo Electric developed Z-fiber, pure silica core fiber with the world's lowest transmission loss. This has supported the construction of optical communication networks, such as its wide use in many submarine cables. Sumitomo Electric's optical fibers ranks among the best in optical transmission networks and optical communication devices.
The Sumitomo Electric Group's electronics division supplies various products to manufacturers of smartphones, flat-screen televisions, and other highly advanced electronic goods. Products include base material, wiring, and components for compact and lightweight devices with high functionality, such as flexible printed circuits (FPCs), electronic wires, heat-shrinkable tubing, fine polymer products, and compound semiconductors. Capitalizing on compound semiconductor development and manufacturing-knowledge accumulated over many years, Sumitomo Electric succeeded in developing and mass-producing the world's first gallium nitride substances. Sumitomo Electric also continues to be the leading manufacturer of composite semiconductors (GaAs, GaN, InP), which are widely used in semiconductor lasers, LEDs, and mobile telecommunications devices.
This division provides electric wire and cable products that underpin stable energy supply. They include copper wire rods from which various types of electric wires and cables are made, power cables that are indispensable for the supply of high-voltage electricity, and trolley wires for railways. This business segment also supplies magnet wires used in household appliances, automotive electric components, and industrial motors- including hybrid products of rubber, plastic, and ceramics resulting from our development of wire coating technologies- to many different branches of industry.
Hard metal products, such as cutting tools, are essential for high-speed, high-performance, and high-precision mechanical processing. This division manufactures products used in many industries, including special metal wires for prestressed concrete used in civil engineering and construction projects; special steel wires such as steel cords used as tire-reinforcement materials in the automobile industry; and oil-tempered wires for valve springs. This division also makes sintered parts that are used as structural components in automobiles and home electric appliances, ranking among the top 3 in the world.
Starting in 2013, Sumitomo Electric will expand into two more divisions, “Life Sciences” and “Resources” by making full use of the Group's wide-ranging technological capabilities.
- Argentina – Optical Cable System
- Brazil – Automotive Wiring Harness Business
- Mexico – Submarine and underground power transmission installation project 
- USA – Restoration of I-35 W Highway Bridge, Superconducting Cable Demonstration Test 
- Egypt – Establishment of a new automotive wiring harness manufacturing company
- Iran – Major power transmission line installation project 
- China – Establishment of optical fiber product joint ventures with Futong Group 
- Japan – World’s first superconducting electric car 
- Korea – Membrane Technology for waste water treatment 
- Taiwan – contribution to Taiwan’s high-speed Shinkansen Bullet Train
- Thailand – Easing traffic jam, First overseas manufacturing base 
- Vietnam – New business center for electronic products
- Germany – Introduction of new bridge building method
- UK – SUMICRYSTAL: Synthetic Single Crystal Diamond
- Nigeria – Telecom network project
- Australia- Long-distance underground power transmission lines
Mid-term Management Plans
The Sumitomo Electric Group in April 2003 launched a new medium-term management plan under the name “VISION 2007,” which calls for a change in strategies with an emphasis on the achievement of sustainable growth. Under VISION 2007, Sumitomo Electric set their targets at ¥2,000 billion in net sales, ¥120 billion in operating income, and an ROA of 8%, all on a consolidated basis. This plan includes the two core policies of raising our global presence and strengthening our leading technology. In line with these policies, each business segment has formulated growth strategies and worked to maximize group synergies. As a result, in the previous term (ended March 2007), Sumitomo Electric reached their numerical targets one year ahead of schedule. These targets were then exceeded by a wide margin in the reporting period. Based on these results, a new medium-term plan, VISION 2012, was launched, which began in April 2008 and ended in March 2013.
Under this plan, Sumitomo Electric aimed to realize net sales of ¥3 trillion, operating income of ¥210 billion, an operating income margin of 7%, and an ROE of 10%, all on a consolidated basis. The end of March 2013 was the final fiscal year of VISION 2012, the mid-term management plan launched in April 2008. Over these five years, Sumitomo Electric has made some progress in developing global markets, but fell far short of sales and operating income targets of ¥3 trillion and ¥210 billion, due to external factors such as the financial crisis following the collapse of Lehman Brothers, the Great East Japan Earthquake, Thai flooding, and other major natural disasters. The sustained and unprecedented rise of the yen, as well as internal factors such as falling profitability in certain segments and an increase in the cost of prior capital investment, as explained previously, in global plant and research and development were also external factors. VISION 2012 ended with net sales of 2.16 trillion yen and operating income of 77 billion yen. By segment, earnings were steady at Automotive and Electric Wire & Cable, Energy, with the latter posting record high earnings.
Under VISION 2017, in addition to our current business fields, such as mobility, energy, and communications, where Sumitomo Electric can take advantage of the group’s strengths, Sumitomo Electric will expand integrated business fields where they will combine and systemize our tangible and intangible advantages and present new value in response to social needs, such as the environment & infrastructure. On top of that, Sumitomo Electric will challenge new business fields, such as life sciences and resources. By so doing, Sumitomo Electric strives to accomplish the FY 2017 targets of consolidated sales of ¥3 trillion, operating income of ¥180 billion, and ROA of 9%. Under VISION 2017, Sumitomo Electric aims to continuously innovate and provide global services in these fields, creating new value from raw materials to systems and solutions.
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