Due to safety concerns and other complexities caused by the COVID-19 pandemic, the leadership teams of Essex Magnet Wire and Furukawa Electric Co. have mutually agreed to delay the commencement date of their global joint venture. Now, the companies say, the boards of both companies are committed to launching the Essex Furukawa joint venture on or before October 1, 2020. The original target date was April 1.
“Both parties have adopted measures to respect expert advice on social distancing, prioritizing the safety of employees and staff over normal business operations during the spread of coronavirus, and as such it was determined that during this period of time the execution of the joint venture would not be feasible,” said Bryan Kim, CEO of Superior Essex.
Upon completion of the joint venture, the companies expect that their combined Essex Furukawa brand will have leadership positions in North America, Europe, and Asia for the magnet wire market and be a global power in further technology development, especially for electric vehicles and hybrid electric vehicles.
As previously reported, the deal involves a combined workforce of nearly 2,100 employees working at 17 locations in eight countries.