SWCC

Basic Information

Stock Code
5805
Industry
Non-ferrous Metals
Category Detail
Iron, Steel & Metal Products
Prefecture
Kanagawa Prefecture
Establishment Year
May 1936
Listing Year
May 1949
Official Website
https://www.swcc.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Furukawa Electric, Fujikura, Onamba, JMACS, Kanare Electric, Mitsuboshi, Hirakawa Hutech, Mitsui Ocean

Overview

SWCC is a leading Japanese non-ferrous metal manufacturer founded in 1936, with wire and cable manufacturing as its core business, leading the industry through technological strength and diversified operations.

Current Situation

SWCC recorded consolidated sales of approximately 213.9 billion yen, net assets of about 77.1 billion yen, total assets of about 161.5 billion yen, and 4,054 consolidated employees for the fiscal year ended March 2024. Its mainstay is electric wire and cable-related products, where it competes with major peers while expanding into domestic and Asia-centered overseas markets. It holds proprietary technologies for optical fiber cables and oxygen-free copper wires and is exploring new ventures. In recent years, it has pursued group restructuring and subsidiary integrations to enhance operational efficiency, while focusing on strategic acquisitions like the consolidation of TOTOKU. It is reinforcing its management systems following quality control irregularities. Business sites are located in major cities across Japan and overseas bases to meet diverse demands. Moving forward, it aims for growth by developing new markets in communications, environmental equipment, automotive wires, and more, while improving sustainable manufacturing processes.

Trivia

Interesting Facts

  • SWCC is Japan's only manufacturer of oxygen-free copper wires using the dip forming method.
  • It began as an electric wire manufacturing company spun off from Toshiba.
  • It transacts with parts suppliers for LG Electronics and Toyota.
  • Takayo Hasegawa is promoting management reforms as Representative Director, CEO, and President.
  • In 2023, it absorbed multiple subsidiaries through mergers to improve efficiency.
  • It has manufacturing bases in Vietnam and China, strong in the Asian market.
  • It has newly entered the base isolation components field, expanding into construction.
  • Its high technological capabilities in communications cables are highly evaluated by domestic and international customers.
  • It is advancing business diversification through the acquisition of subsidiary TOTOKU.
  • Quality irregularities were revealed, making internal system strengthening urgent.
  • Major shareholders include Japan Master Trust Bank and ENEOS.
  • It is a mid-sized company with over 4,000 consolidated employees.
  • Energy and infrastructure business is a major pillar of sales.
  • Among manufacturing stocks, steady long-term growth is expected.
  • It forms one of the big three in the wire industry alongside Furukawa Electric and Fujikura.

Hidden Connections

  • Immediately after changing its name from former Showa Electric Wire Holdings, it completed acquisition of TOTOKU shares to strengthen the group.
  • Has a joint venture with Furukawa Electric within the group, with close industry ties.
  • Part of power cable business transferred to JV with Ryosen Kogyo to focus operations.
  • Optical fiber cable products are adopted in major domestic communications infrastructure.
  • Many trust banks as major shareholders, building stable management foundation financially.
  • Manufacturing bases dispersed across major Japanese regions and Asia for risk diversification.
  • Base isolation and vibration control devices business has become a new market for construction industry.
  • COO Tetsuo Komata is advancing technology development and efficiency in the renewal phase.

Future Outlook

Growth Drivers

  • Increased demand for optical fiber cables with expansion of optical communications infrastructure
  • Spread of environmentally friendly base isolation and vibration control devices
  • Development of new wire markets for automotive electrical components
  • Growing demand for non-ferrous metal products in global markets
  • Shift to high-value-added copper alloy products
  • Advancement of digitalization and labor-saving in manufacturing processes
  • Building sustainable supply chains with emphasis on sustainability
  • Increasing demand for equipment renewal in Japan
  • Business strengthening through technology alliances and M&A
  • Continued growth in communications and industrial devices sectors

Strategic Goals

  • Execute medium-term growth plan aiming for sales over 300 billion yen
  • Advance sophistication and differentiation of product lineup
  • Strengthen environmental load reduction to achieve carbon neutrality
  • Enhance international competitiveness by expanding overseas manufacturing and sales bases
  • Accelerate product development for next-generation vehicles and smart devices
  • Improve quality management system to boost customer trust
  • Promote employee diversity and establish comfortable work environment
  • Improve manufacturing efficiency through digital technology utilization
  • Expand use of sustainable materials
  • Maximize group synergies for entry into new markets

Business Segments

Energy and Infrastructure Business

Overview
Provides materials and products for power and public infrastructure, and also offers related components such as seismic isolation devices.
Competitiveness
Proprietary oxygen-free copper wire technology and long-standing trust
Customers
  • Power Companies
  • Public Infrastructure Operators
  • Construction Companies
  • Base Isolation Device Manufacturers
  • Power Equipment Manufacturers
Products
  • Power Cables
  • Aluminum Wires
  • Equipment Electrical Materials
  • Base Isolation Devices
  • Winding Materials

Communications and Industrial Devices Business

Overview
Supplies a variety of cable and device products for communications equipment and industrial use.
Competitiveness
High-quality optical processing technology and broad product lineup
Customers
  • Communications Equipment Manufacturers
  • Electronic Equipment Manufacturers
  • Industrial Machinery Manufacturers
  • Automotive Manufacturers
  • Precision Equipment Manufacturers
Products
  • Optical Fiber Cables
  • Optical Processed Products
  • Wire Harnesses
  • Vibration and Noise Control Devices
  • Precision Devices

Electrical Equipment and Components Business

Overview
Stably supplies materials for various electrical components.
Competitiveness
Trusted for high-precision materials
Customers
  • Electrical Component Manufacturers
  • Home Appliance Manufacturers
  • Industrial Machinery Manufacturers
  • Automotive Parts Suppliers
Products
  • Winding
  • Bare Wires
  • Copper Alloys

New Businesses

Overview
Opening up new markets with special wires incorporating cutting-edge technologies.
Competitiveness
Flexible development capabilities for custom needs
Customers
  • Automotive Manufacturers
  • Medical Equipment Manufacturers
  • FA Equipment Manufacturers
  • IT Equipment Manufacturers
Products
  • Automotive Wires
  • Medical and FA Wires
  • Network Cables

Competitive Advantage

Strengths

  • Sole holder of dip forming technology
  • Diverse product portfolio
  • Strong domestic manufacturing site network
  • High technological capability in optical fiber cables
  • Long-term customer relationship building
  • Provision of high-precision copper alloy materials
  • Development capabilities in industrial devices
  • Total solution provision capabilities
  • Diversification via consolidated subsidiaries
  • Local sales organization rooted in regions
  • Ongoing strengthening of quality management system
  • Stable financial base
  • Sales channels to broad customer base

Competitive Advantages

  • Sole domestic holder of oxygen-free copper wire manufacturing technology
  • One of the big four wire companies with established industry position
  • Broad product range for power, communications, and industrial equipment
  • Major shareholders include ENEOS and major trust banks
  • Solid revenue structure on a consolidated basis
  • Synergy creation with group companies
  • Technology and production system for optical products
  • Domestic and international manufacturing bases and sales network
  • Business strengthening through strategic acquisitions
  • Introduction of latest technologies via technical alliances
  • Multi-layered quality management and improvements
  • Proven track record in long-term industrial infrastructure supply
  • Risk diversification through business diversification

Threats

  • Risk of credit decline due to quality irregularities
  • Price pressures from intensifying global competition
  • Risk of rising raw material prices
  • Impact of global semiconductor shortages
  • Stagnation in domestic demand
  • Foreign exchange fluctuation risks
  • Concerns over delays in technological innovation
  • Cost increases from stricter environmental regulations
  • Market expansion by new entrants
  • Political and economic fluctuations
  • Supply chain disruptions
  • Emergence of regional competitors

Innovations

2023: Consolidation of TOTOKU as Subsidiary

Overview
Acquired shares from Carlyle Group and Japan Policy Investment Bank, achieving 51% ownership and consolidation as subsidiary.
Impact
Contributes to strengthening electronic devices business

2022: Strengthening Quality Management System

Overview
Following discovery of inconsistencies in product quality testing, established special investigation committee and overhauled management system.
Impact
Recovery of reliability and improved customer satisfaction

2021: Optical Fiber Cable Technology Renewal

Overview
Developed and launched high-durability, high-quality optical fiber cables compatible with next-generation communications standards.
Impact
Expanded adoption by communications carriers

2024: Improvement in Oxygen-Free Copper Wire Manufacturing Technology

Overview
Successfully improved dip forming manufacturing process, enhancing product quality and production efficiency.
Impact
Cost reduction and enhanced market competitiveness

2023: Development of Energy-Saving Base Isolation Devices

Overview
Successfully developed high-performance base isolation materials aimed at reducing environmental impact, preparing for market launch.
Impact
Achieves differentiation in construction field

Sustainability

  • Efforts to reduce CO2 emissions in manufacturing processes
  • Promotion of recycled material use
  • Elimination and strengthened management of hazardous substances
  • Development of environmentally friendly products
  • Collaboration with local communities on environmental protection
  • Promotion of comfortable workplaces
  • Improvement in supply chain transparency
  • ISO certification acquisition and renewal
  • Environmental education for employees
  • Deployment of waste reduction projects
  • Expansion of next-generation energy utilization
  • Participation in local environmental conservation activities